ORDINANCE 2022-03

ORDINANCE 2022-03

AN ORDINANCE TRANSFERRING ADMINISTRATION OF RETIREMENT COVERAGE FOR ELIGIBLE MEMBERS OF THE GASSVILLE FIRE RELIEF AND PENSION FUND TO THE ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI) AND AUTHORIZING THE CHIEF ADMINISTRATIVE OFFICER TO ENTER INTO AN IRREVOCABLE AGREEMENT WITH LOPFI. 

WHEREAS, the Board of Trustees of the GASSVILLE Fire Relief and Pension Fund (Local Plan) has elected to have its Local Plan administered by LOPFI as stated by Resolution dated July 13, 2022, and that 

WHEREAS, the Board of Trustees has requested by Resolution that the City of GASSVILLE, Arkansas to act as its agent henceforth. 

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GASSVILLE, ARKANSAS: 

SECTION 1. If accepted by LOP FI, the administration of the GASSVILLE Fire Relief and Pension Fund (Local Plan) shall be transferred to LOPFI under authority of Arkansas Code Annotated 24-10-101 et. seq., as amended. Such transfer shall mean the administration of the Local Plan only and not a change in the Local Plan's benefit program unless a benefit increase is formally approved by the City of GASSVILLE, Arkansas, by Ordinance. With the passage of this Ordinance, a three percent (3%) compound Cost of Living Adjustment (COLA) shall be added to the benefit program of the Local Plan. This COLA will be awarded each July 1st according to LOPFI guidelines. 

SECTION 2. The Chief Administrative Officer is hereby authorized to enter into an irrevocable agreement, using a fifteen (15) year amortization schedule, with LOPFI to administer the Local Plan as stated in Section 1 hereof. 

SECTION 3. It is the intent of the City Council and it is hereby ordained that the provisions of this Ordinance shall be codified into the Code of Ordinances of GASSVILLE, Arkansas and the sections thereof may be re-numbered and re-lettered as necessary to accomplish such intention. 

SECTION 4. Due to the need to consolidate administration of the Local Plan with LOPFI, an emergency is hereby declared to exist and this Ordinance shall be in full force from and after the date of its passage and approval. 

PASSED: August 16, 2022

APPROVED:
Jeff Braim, Mayor, Chief Administrative Officer

ATTEST:
Jeff Lewis, Recorder/Treasurer


LOPFI ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement (Agreement) is entered into by and between the ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI) and the CITY OF GASSVILLE for the benefit of its FIRE Relief and Pension Fund (Local Plan). 

PARTIES 
The City of GASSVILLE, a political subdivision, currently has and administers a Local Plan. 

LOPFI is an agency created by statute (Arkansas Code Annotated 24-10-101, et. seq., as amended) for the purpose of providing a statewide retirement system with pooled administration. 

The Mayor and City Council of GASSVILLE desire to enter into an irrevocable Agreement with LOPFI to administer its Local Plan and in consideration of the mutual obligations hereinafter enumerated the parties agree to all of the following: 

1. This Agreement is made pursuant to the authority of AC.A. 24-10-101, et. seq., as amended.

2. This Agreement shall be effective and permanent upon the executed date entered on page two of this Agreement.

3. This Agreement is for the administration of the Local Plan and its benefit structure shall not change unless a benefit increase is formally approved by the City of GASSVILLE by Ordinance.

4. The actuaries for LOPFI have computed the initial employer contribution rate(s) to be paid by the City of GASSVILLE to support the benefits paid by the Local Plan. The City of GASSVILLE agrees to always remit payment at the level established by the actuaries for LOPFI and in the monthly timeframe set by LOPFI.

5. Benefits and any member refunds shall be paid effective the first business day of each month and in accordance with LOPFI procedures and guidelines.

6. LOPFI covenants and agrees to provide the following services:
    a. investment of Local Plan assets and the award of annual interest to the employer
        reserve account at the end of each fiscal year consistent with the interest awarded
        to other LOPFI employer accounts;
    b. process retirement applications including determination of eligibility, calculation of
        service credit and benefit payment amounts, payment of benefits to eligible benefit
        recipients, and satisfaction of state and federal tax withholding requirements, all in
        accordance with LOPFI procedures and guidelines; and

7. The City of GASSVILLE covenants and agrees as follows:
    a. upon execution of this Agreement all Local Plan assets and records shall be promptly
        transferred to LOPFI. In the sole discretion of LOPFI certain investments may be
        allowed to mature to avoid penalties;
    b. all employer and applicable employee contributions shall be remitted to LOPFI in time
        to be recorded by the tenth (10th) day of each month for each reporting period.
        Remittance shall be made in the manner and amounts prescribed by LOPFI, which shall
        include the use of LOPFI's electronic reporting and LOPFI's e-Payment;
    c. the City of GASSVILLE shall execute all documents required by LOPFI to aid in the
        administrative process;
    d. all members and beneficiaries of the Local Plan have been deemed eligible pursuant to
        the standards prevailing at the time of the determination of eligibility. The parties agree
        that LOPFI is bound by any determination of eligibility or ineligibility made by the board
        of trustees of the Local Plan as long as such determination(s) conform to state law. The
        Local Plan and the City of GASSVILLE indemnify and hold LOPFI harmless for any eligibility
        decisions made by the Local Plan.
    e. the City of GASSVILLE has disclosed to LOPFI all pending claims, actions, suits, and
        threatened liabilities to the Local Plan.

8. GASSVILLE -Fire Relief and Pension Fund board of trustees' Resolution dated July 13, 2022, and Ordinance no. 2022-03, dated July 16, 2022, of the City of Gassville, ar incorporated by reference herein as though set forth word for word.

This irrevocable Agreement is executed this 16th day of July, 2022.

CITY OF GASSVILLE, ARKANSAS
APPROVED: Jeff Braim, Mayor, Chief Administrative Officer
ATTEST: Jeff Lewis, Recorder/Treasurer

LOPFI BOARD OF TRUSTEES
APPROVED: John Neal, LOPFI Board Chairman