[R.O. 2011 § 2.64.010; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
There is provided a plan by the plan sponsor for the retirement
of all employees of the City other than commissioned salaried members
of the Police and Fire Departments of the City (hereinafter referred
to in this Article as "employees") on account of age or disability,
and for the payment to their surviving spouses, minor children or
beneficiaries, as applicable, of the pensions and investment accounts
as more specifically set forth in this Article, in pursuance of the
Constitution of the State and the laws enacted pursuant thereto.
[R.O. 2011 § 2.64.020; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A fund to be known and designated as the Non-Uniformed Employees
Retirement Fund shall be set up and maintained to be derived from
such revenue sources as the Council shall decide, and partly from
contributions made by employees, as defined, and other sources as
provided by this Article. Effective as of January 1, 1966, the corpus
or income of the fund will be used for all members and their beneficiaries
and will not be diverted to or used for other than the exclusive benefit
of the members or their beneficiaries.
[R.O. 2011 § 2.64.100; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
ACCUMULATED CONTRIBUTIONS
ACTUARIAL EQUIVALENT OR ACTUARIAL EQUIVALENCE
1.
2.
3.
4.
5.
6.
AVERAGE SOCIAL SECURITY BASE
BENEFICIARY
BOARD OF TRUSTEES
CODE
CODE SECTION 415 COMPENSATION
1.
a.
b.
c.
d.
2.
3.
COMPENSATION
1.
2.
3.
4.
CREDITABLE SERVICE
EARLY RETIREMENT AGE
EMPLOYEE
FINAL AVERAGE COMPENSATION
MEMBER
NORMAL RETIREMENT AGE
PENSION
PLAN SPONSOR
QUALIFIED MILITARY SERVICE
REQUIRED BEGINNING DATE
RETIREE
RETIREMENT DATE
RETIREMENT SYSTEM
SURVIVING SPOUSE
For the purpose of this Article, the following words and phrases
shall have the meanings respectively ascribed to them by this Section:
The sum of all amounts deducted from the compensation of
a member and credited to the member's individual account together
with interest thereon.
A benefit having the same value as another stated benefit
on the date payment commences or on any other date calculated on the
basis of the factors as applicable below.
Adjustment for form and date of payment. If a member's benefit is payable in a form other than the normal form of retirement benefit, it will be adjusted to reflect the actuarial equivalent thereof. If a member's accrued benefit is payable at any time after the member's normal retirement date, it will be determined in accordance with Section 130.510.
|
However, if a member is eligible for early retirement, the amount of benefits paid will be the actuarial equivalent of the member's accrued benefit payable as a normal form of retirement benefit commencing at early retirement date in accordance with Section 130.530.
|
Age on applicable date. The actuarial equivalent of an accrued
benefit will be determined as of the applicable date on the basis
of the payee's actual age. If a benefit is initially determined
and thereafter there is an administrative delay in the actual payment
of benefits, the administrator shall determine in a manner consistently
applied on a non-discriminatory basis whether the benefit will be
adjusted. Any such adjustment may either add interest to the date
of actual distribution or the benefit may be revalued based on the
payee's then current actual age as of the date benefits are paid.
Amendment of actuarial equivalence. Except as may otherwise
be permitted by the Code and by the regulations issued thereunder,
if the definition of actuarial equivalence is amended, in no event
will the lump sum actuarial equivalent of an accrued benefit determined
on the date a benefit commences be less than the actuarially equivalent
value of the accrued benefit as determined one (1) day prior to the
date of change, based on the terms of the plan as in effect on such
day.
Actuarial equivalence factors. Actuarial equivalence will be
determined on the basis of the following mortality table and interest
rates: Six and one-half percent (6.5%) interest and the RP2000 Combined
Mortality Table.
|
The GATT 417(e) date applicable for this plan shall be the first
day of the plan year which begins on or after January 1, 2000.
|
Code Section 417(e) PBGC factors. If the annuity starting date
is prior to the GATT 417(e) date, the mortality table is as stated
in (4) above and interest is based on the applicable interest rate.
The applicable interest rate is the interest rate as of either the
date benefits are computed to be payable or the first day of the plan
year which contains the annuity starting date which would be used
by the Pension Benefit Guaranty Corporation for a trusteed single-employer
plan to value a benefit upon termination of an insufficient trusteed
single-employer plan. The Code Section 417(e) interest rate limitations
will apply to distributions in plan years beginning after 1984; but
the Code Section 417(e) interest rate will not apply to any distributions
beginning in plan years before 1987, if such distributions were determined
in accordance with the interest rates as required by Regulation Section
1.417(e)-IT(e) (including the PBGC immediate interest rate).
Code Section 417(e) GATT factors. The applicable interest rate
is the rate of interest on thirty (30) year Treasury securities as
specified by the Commissioner for the applicable lookback month for
the applicable stability period. The applicable lookback month shall
be the third (3rd) calendar month preceding the first day of the applicable
stability period. The applicable stability period shall be the successive
period of one (1) plan quarter that contains the annuity starting
date for the distribution and for which the applicable interest rate
remains constant. If the date herein for determining the applicable
interest rate is changed by amendment or by indirect change as a result
of a change in the plan year, such change shall not be given effect
with respect to any distribution during the period commencing one
(1) year after the later of the amendment's effective date or
adoption date, if during such period the member's distribution
would be reduced as a result of such amendment.
|
The post-retirement (and pre-retirement, if applicable) applicable
GATT mortality table will be as follows: 1) for benefits with an annuity
starting date before December 31, 2002 as set forth in Revenue Ruling
95-6 equal to the 1983 Group Annuity Mortality Table gender neutral
blended fifty/fifty (50/50) male and female; and 2) for benefits with
an annuity starting date on or after December 31, 2002 as set forth
in Revenue Ruling 2001-62 equal to the 1994 Group Annuity Reserving
Mortality Table projected to 2002 based on a fixed blend of fifty
percent (50%) of the unloaded male mortality rates and fifty percent
(50%) of the unloaded female mortality rates.
|
The average annual amount of a member's compensation
for the period starting January 1, 1968, or the year creditable service
commences, if later, and ending on December thirty-first (31st) of
the year preceding the year in which the member's normal retirement
date occurs, which would be taxable under the Federal Insurance Contributions
Act if the member's compensation in each year is equal to the
taxable wage base for such year under such Act. No change in the taxable
wage base is assumed after the member's termination of employment.
Any person in receipt of a benefit from the retirement system
as a result of the death of a member or retiree.
The Internal Revenue Code of 1986, as amended, and the regulations
and rulings promulgated thereunder by the Internal Revenue Service.
Means, effective May 1, 2001, wages, salaries, differential
wage payments under Code Section 3401(h), fees for professional services
and other amounts received (without regard to whether or not an amount
is paid in cash) for personal services actually rendered in the course
of employment with the employer maintaining the plan, including, but
not limited to, commissions paid salespersons, compensation for services
based on a percentage of profits, commissions on insurance premiums,
tips, bonuses, fringe benefits, and reimbursements, or other expense
allowances under a non-accountable plan as described in IRS Regulations
Section 1.62-2(c). A participant's Code Section 415 Compensation
will be determined subject to the following provisions:
Code Section 415 Compensation does not include:
Employer contributions to a plan of deferred compensation which
are not includible in gross income for the taxable year in which contributed,
or employer contributions to a simplified employee pension plan to
the extent such contributions are deductible by the employee, or any
distributions from a plan of deferred compensation;
Amounts realized from a non-qualified stock option, or when
restricted stock or property held by the employee either becomes freely
transferable or is no longer subject to a substantial risk of forfeiture;
Amounts realized from the sales, exchange or other disposition
of stock acquired under a qualified stock option; and
Other amounts which receive special tax benefits, or contributions
made by an employer (whether or not under a salary reduction agreement)
towards the purchase of an annuity described in Code Section 403(b)
(whether or not the amounts are excludible from an employee's
gross income).
For limitation years beginning on or after January 1, 1998,
Code Section 415 compensation will include any elective deferrals
as defined in Code Section 402(g)(3), and any amounts contributed
or deferred at the election of the employee that were not includible
in the gross income by reason of Code Section 125 or 457. Code Section
415 compensation will also include elective amounts that are not includible
in the gross income of the employee by reason of Code Section 132(f)(4)
for limitation years beginning on or after January 1, 2001.
For limitation years beginning on or after July 1, 2007, compensation
for a limitation year shall also include compensation paid by the
later of two and one-half (2 1/2) months after an employee's
severance from employment with the employer maintaining the plan or
the end of the limitation year that includes the date of the employee's
severance from employment with the employer maintaining the plan,
if the payment is regular compensation for services during the employee's
regular working hours, or compensation for services outside the employee's
regular working hours (such as overtime or shift differential), commissions,
bonuses, or other similar payments, and absent a severance from employment,
the payments would have been paid to the employee while the employee
continued in employment with the employer.
The Code Section 3401 Compensation that is actually paid
in gross income during the calendar month (or, for a month which began
on or after January 1, 1992, actually paid or made available). The
term "Code Section 3401 Compensation" means wages within the meaning
of Code Section 3401(a) that are actually paid or made available in
gross income for the purposes of income tax withholding at the source
but determined without regard to any rules under Code Section 3401
that limit the remuneration included in wages based on the nature
or location of the employment or the services performed.
Partial month compensation. If a member is employed for less
than a full calendar month used for determining compensation or average
compensation, compensation for such partial month shall be counted
(without annualizing).
Elective deferrals and certain other amounts. Effective for the plan year beginning January 1, 2013, except for purposes of Code Section 415 Compensation, employer contribution amounts made pursuant to a salary reduction agreement which were not currently includible in a member's gross income by reason of Code Section 125, Code Section 402(g), Code Section 403(b) and Code Section 457 will be included in determining compensation for all plan years. Employee contributions to the Police and Firefighters' Retirement Fund treated as employer contributions under Section 130.500 included in determining compensation for all plan years. Compensation will also include elective amounts that are not includible in the gross income of the employee by reason of Code Section 132(f)(4) for limitation years beginning on or after January 1, 2001.
Code Section 401(a)(17) annual compensation limit. In determining
average compensation and accrued benefits for any plan year which
begins on or after January 1, 1996, the annual compensation for each
participant which is taken into account shall not exceed one hundred
sixty thousand dollars ($160,000.00), as adjusted for cost-of-living
increases in accordance with Code Section 401(a)(17)(B). Except for
purposes of determining the maximum 3-highest consecutive year average
compensation under Code Section 415, in determining average compensation
and accrued benefits for any plan year which begins on or after January
1, 2002, the annual compensation for each participant which is taken
into account shall not exceed two hundred thousand dollars ($200,000.00),
as adjusted for cost-of-living increases in accordance with Code Section
401(a)(17)(B). The two hundred thousand dollar ($200,000.00) limit
on annual compensation shall be adjusted for cost-of-living increases
in accordance with Code Section 401(a)(17)(B). The cost-of-living
adjustment in effect for a calendar year applies to annual compensation
for the determination period that begins with or within such calendar
year.
Compensation limitation election available to certain members:
Except for purposes of determining Code Section 415 limitations, any
member who is a highly compensated employee may elect for any plan
year, on a form prescribed by the administrator, to limit his/her
compensation for all purposes under this plan.
The period of service which is creditable in accordance with Section 130.480.
The date prior to normal retirement age that the member has
attained age fifty-five (55) and has completed twenty (20) years of
creditable service.
Any appointive probationary or permanent full-time employee
of the City, excluding members of the Police and Firefighter's
Retirement System otherwise established by the City. In case of doubt
as to whether any person is an employee within the meaning of this
Article, the decision of the Board of Trustees shall be final.
The average annual compensation received by a member for
the three (3) consecutive years of creditable service in which the
highest compensation was received during the ten (10) years of creditable
service immediately preceding the termination of the member's
employment. If a member has less than three (3) consecutive years
of creditable service, then the member's final average compensation
shall be the average compensation received by the member during the
number of the member's consecutive years of creditable service
prior to such date.
A member of the retirement system as defined in this Section.
The later of the date that (a) the member attains the age
of sixty-five (65), or (b) the member completes thirty (30) years
of creditable service after attaining age sixty-two (62).
The annual payments for life which shall be payable in equal
monthly installments to a retiree or to a beneficiary.
The City of University City, a political subdivision of the
State of Missouri.
Shall have the same meaning as defined in Section 414(u)
of the Code.
April first (1st) of the calendar year following the later
of the calendar year in which the member reaches age seventy and one-half
(70 1/2) or the calendar year in which the member actually retires.
A member who has retired and is entitled to benefits from
the retirement system.
The first day of the month following a member's actual
retirement after attainment of normal retirement age or early retirement
age for reasons other than disability; provided however, such member's
normal retirement date may be extended by a member until the first
day of any month thereafter, but in no event beyond the first day
of the month following the date that the member attains age seventy
(70).
The non-uniformed employees retirement system of the City.
The spouse of a member at the date of his/her retirement
or at the date of his/her death if he/she dies before retirement.
B.
Masculine pronouns shall include the corresponding pronouns of the
feminine gender unless otherwise qualified by the context.
[R.O. 2011 § 2.64.200; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
[R.O. 2011 § 2.64.210; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
No person shall be employed by the City unless he/she shall
first undergo a physical examination by a physician designated by
the Board of Trustees and be certified as being physically fit for
the performance of the duties in the service of the City. No person
shall be so certified if he/she be found to have any deformity or
physical condition that may directly or indirectly cause or contribute
to the physical disability of such applicant.
[R.O. 2011 § 2.64.220; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
The years of creditable service of a member shall be the number of
years and completed months of service during which the member received
compensation prior to July 1, 1966 plus the number of years and completed
months of service during which the member received compensation after
July 1, 1966 from the beginning of his/her employment with the City
until his/her employment is terminated, subject to the provisions
set forth in Subsections (B--G) of this Section. No creditable service
for prior employment shall be granted an employee who becomes a member
after July 1, 1966, unless the member was employed on July 1, 1966.
B.
If a member resumes employment within (1) year after the member's
employment is terminated and provided the member has not withdrawn
his/her accumulated contributions, the member's creditable service
as of the date of termination shall be restored.
C.
Creditable service to date of absence shall not be forfeited by reason
of any absence without pay due to leave granted by the City because
of illness, qualified military service or, for a period not in excess
of one (1) year, for any other reason, provided the employee returns
to active service prior to the expiration of his/her leave. Notwithstanding
any other provision of the plan to the contrary, effective as of December
12, 1994, contributions, benefits and service credit with respect
to qualified military service shall be provided in accordance with
Code Section 414(u). If a participant who is absent from employment
as an employee because of military service dies after December 31,
2006, while performing qualified military service (as defined in Code
Section 414(u)), the participant shall be treated as having returned
to employment as an employee on the day immediately preceding his/her
death for purposes of determining the participant's vested interest
in his/her accrued benefit and his/her beneficiary's eligibility
for a survivor benefit under the plan. Notwithstanding the foregoing,
such a participant shall not be entitled to additional accruals with
respect to his/her period of military leave.
D.
The Board of Trustees shall fix and determine by proper rules and regulations how much service in any year is equivalent to one (1) year of creditable service, but in no case shall more than one (1) year of service be creditable for all service in one (1) calendar year, nor shall the Board of Trustees allow credit as service for any period of more than one (1) month's duration during which the member was absent without pay except as provided in Subsection (E) of this Section.
E.
Absence from employment because of qualified military service shall
be considered a leave of absence granted by the City; provided the
employee returns to active employment within the period of time during
which the employee has re-employment rights under any applicable Federal
law or within ninety (90) days from and after discharge from such
military service if no Federal law is applicable and such service
shall be included in creditable service and provided the employee
has not withdrawn his/her accumulated contributions.
F.
If the employment of a member is terminated for reasons other than disability and the member is employed thereafter, the member shall be considered a new employee for all purposes of the retirement system except as provided by Subsection (B) of this Section.
G.
Each member claiming creditable service prior to July 1, 1966 shall
at the request of the secretary of the Board of Trustees file such
detailed statement as may be required to establish such claimed creditable
service.
[Ord. No. 6975 § 1(Exh.
A § 2.64.225), 12-8-2014]
A.
Any individual who is a vested participant in this plan and who has
earned creditable service under any other retirement plan established
by the State of Missouri or any political subdivision or instrumentality
of the State and who is not vested under such other plan may purchase
service credit under this plan. The amount of creditable service which
may be purchased may not exceed the years of creditable service under
the other plan.
B.
Any individual who is a vested participant in this plan and who was
employed in nonfederal public employment in Missouri and not covered
under a retirement plan in such position may purchase service credit
under this plan. The amount of creditable service which may be purchased
may not exceed the years of employment in such uncovered position.
C.
Any purchase of creditable service under this Section shall be governed
by rules established by the Board. Such purchase shall be affected
by the employee's paying to the plan an amount determined by
the plan's actuary using the actuarial assumptions applied in
determining the costs of benefits under this plan at the date of the
employee's election. The payment may be made in a single sum
or in equal monthly installments or in a combination of both. Any
installment payments shall be made over a period not to exceed two
(2) years, measured from the date of election or prior to the commencement
of benefits under the plan, whichever is earlier. Interest compounded
annually at the actuarially assumed rate used by the plan shall accrue
on the unpaid balance from the date of the election. A rollover or
trustee-to-trustee transfer from another qualified retirement plan
under Code Sections 401(a), 403(a) or 403(b) or a governmental Section
457(b) plan or individual retirement account may be used to make payment
for creditable service purchased. If full payment for creditable service
is not received within the prescribed time period, all partial payments
shall be refunded and no creditable service shall be received.
D.
Payments made for such creditable prior service pursuant to this Section shall be treated by the plan as would contributions made by the City and shall not be subject to any prohibition on employee contributions or refund provisions in effect at the time of enactment of this Section 130.485.
E.
Creditable service purchased under this Section shall only apply in determining the amount of retirement benefit payable to such employee under Sections 130.510 and 130.530 and shall not be used in determining the time at which an employee has attained early retirement age or normal retirement age under the plan.
[R.O. 2011 § 2.64.230; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
Each employee shall furnish a statement containing such information
as requested by the Board of Trustees. These statements shall be checked
and verified and, if approved by the Board of Trustees, shall become
part of the permanent files of the Board. The proper officials and
employees of the City shall cooperate in supplying information concerning
such service records.
[R.O. 2011 § 2.64.300; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
There shall be deducted from the salary or wages of each employee
who is a member of the retirement system on each and every payroll
during each calendar year the member's contributions to the retirement
system. Such contribution shall be equal to three percent (3%) of
the compensation received by such member on each payroll. Contributions
shall earn interest at the rate of five percent (5%) per year.
B.
Each employee shall execute and deliver to the proper official of
the City an authorization in proper form for the deduction herein
described, and no person shall be continued in employment by the City
unless the employee shall execute such authorization.
C.
The City shall, on account of its employees who are members of the
retirement system, pay annually into the fund an amount to be known
as the normal contribution and an additional amount to be known as
the accrued liability contribution. The normal contribution shall
be determined annually by the actuary from the liabilities of the
system.
D.
All contributions made by the City to the fund will be used for the
exclusive benefit of all members and their beneficiaries and will
not be used for nor diverted to any other purpose except the payment
of the costs of maintaining the plan.
[R.O. 2011 § 2.64.400; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
Upon the retirement date on or after a member's attaining normal
retirement age, a member shall receive a pension beginning on the
day after the employee retires from the City service equal to the
member's final average compensation multiplied by the total period
of creditable service, in years and months, multiplied by the applicable
percentage indicated in the table below:
|
Date of Member's Termination of Employment
|
Applicable Percentage
| |
|---|---|---|
|
On or after January 1, 2006 (effective July 1, 2007)
|
1.60%
| |
|
On or after January 1, 2006 (prior to July 1, 2007)
|
1.50%
| |
|
January 1, 2005--December 31, 2005 (effective January 1, 2006)
|
1.50%
| |
|
January 1, 2005--December 31, 2005 (prior to January 1, 2006)
|
1.40%
| |
|
September 1, 2004--December 31, 2004
|
1.40%
| |
|
January 1, 2003--August 31, 2004
|
1.35%
| |
|
January 1, 2000--December 31, 2002 (effective March 1, 2001)
|
1.30%
| |
|
January 1, 2000--December 31, 2002 (effective prior to March
1, 2001)
|
1.10%
| |
|
June 1, 1994--December 31, 1999
|
1.1%
| |
|
Prior to June 1, 1994
|
Formula in effect at termination date
|
1.
For members who terminated on or after July 1, 2002, such members
shall receive an additional one-half of one percent (0.5%) of their
final average compensation in excess of the breakpoint amount at the
time of termination multiplied by the total period of creditable service
in years and months up to a maximum of thirty-five (35) years; the
breakpoint amount shall be thirty-two thousand dollars ($32,000.00)
in 2002, but shall increase by one thousand dollars ($1,000.00) per
year thereafter, effective the first day of each successive year.
2.
Effective January 1, 1997, for members who terminated between
December 1, 1996 and June 30, 2002, such members shall receive an
additional one-quarter of one percent (0.25%) of their final average
compensation in excess of the breakpoint amount at the time of termination
multiplied by the total period of creditable service in years and
months up to a maximum of thirty-five (35) years; the breakpoint amount
shall be twenty-six thousand dollars ($26,000.00) in 1996, but shall
increase by one thousand dollars ($1,000.00) per year thereafter,
effective the first day of each successive year.
B.
For employees hired prior to January 1, 1973, the greater of the pension payable under Subsection (A) of this Section, or the sum of Subsections (B)(1) and (B)(2) of this Section multiplied by 1.25 for members who terminated prior to December 31, 1996, by 1.37 for members who terminated between December 31, 1996 and June 30, 2001, and by 1.62 for members who terminated on or after July 1, 2001:
1.
Two-thirds of one percent of the final average compensation
plus one percent (1%) of the final average compensation in excess
of six thousand six hundred dollars ($6,600.00); all multiplied by
the period of creditable service, in years and months, rendered prior
to January 1, 1968;
2.
Two-thirds of one percent of the final average compensation
plus one percent (1%) of the final average compensation in excess
of the average Social Security base; multiplied by the period of creditable
service, in years and months, rendered subsequent to January 1, 1968.
C.
The pension method in this Section for any month shall be payable
as of the last day of the month.
[R.O. 2011 § 2.64.407; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
Should the membership of an employee be terminated by reason other
than death or retirement, such member shall be paid within one (1)
year the amount of the employee's contributions plus interest
earnings of five percent (5%) per annum on the employee's contributions.
In the event of death of such former member after termination of employment
and prior to receiving the employee's accumulated contributions,
the employee's accumulated contributions shall be paid to the
employee's designated beneficiary.
B.
A member who retires early may elect to withdraw his/her accumulated
contributions at any time prior to the date the member's pension
is to commence; provided that if he/she so elects, neither the member
nor the member's beneficiary shall receive any other benefits
from the retirement system. In event of the member's death prior
to the date the member's pension is to commence, the member's
accumulated contributions will be payable in a lump sum to the member's
designated beneficiary.
C.
Distributions under this Section shall be made in accordance with
the Internal Revenue Code, Section 401(a)(9) and the regulations thereunder.
[R.O. 2011 § 2.64.410; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013; Ord. No.
7001 §1, 10-26-2015]
A.
Any member may retire on his/her retirement date after attaining
early retirement age upon the member’s written application to
the Board of Trustees not less than thirty (30) days nor more than
ninety (90) days prior to such date.
B.
Upon retirement at the member’s early service retirement date the member shall receive benefits under either Subsection (B)(1) or (2) of this Section:
1.
A pension beginning on the member’s normal service retirement
date calculated as for normal service and final average compensation
as of the member’s early service retirement date; or
[R.O. 2011 § 2.64.420; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013; Ord. No.
7001 §1, 10-26-2015]
A.
A member who becomes disabled due to injury or illness, regardless
of length of service, shall be eligible for a disability benefit up
to sixty-seven percent (67%) of his/her compensation, provided solely
from a long-term disability insurance policy purchased by the fund.
The terms, conditions, and amount of such disability benefit (including,
but not limited to, the definition of disability, the criteria for
determining disability, rules and procedures regarding medical examinations,
any elimination period, the commencement and duration of payments,
offsets for other benefits or payments, and application procedures)
shall be governed by the provisions of the insurance contract purchased
by the Board of Trustees. The policy premiums shall be paid from the
non-uniformed employees retirement fund.
B.
Should a member receiving disability insurance payments again become an employee the employee’s disability insurance payments shall cease and the employee shall immediately become a member of the retirement system as of the date of re-employment. His/her creditable service at the time of his/her disability shall be restored in full force and effect unless the member has withdrawn his/her accumulated contributions as permitted under Section 130.520(B).
[R.O. 2011 § 2.64.422; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
Any applicant for employment in or reinstatement to the non-uniformed personnel following a period of qualified military service, who is receiving disability compensation from the United States Government as a result of illness contracted or injuries sustained while in military service, may, at the option of the Board of Trustees, be required to waive any disability insurance payments under Section 130.540, which may be determined by medical examination to be due directly or indirectly to an injury or illness resulting from or growing out of military service of such applicant, but only to the extent of the amount of disability compensation received by the applicant from the United States Government.
[R.O. 2011 § 2.64.424; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
If an employee or an employee's dependents are entitled
to benefits under this Article and likewise to benefits under the
Workers' Compensation law as the result of the same injury, the
benefits payable under this Article shall be reduced in the manner
prescribed by the Statutes of the State, and if there is no applicable
Statute, then the adjusted benefits as herein defined shall be reduced
by the amount of the similar benefits paid under the Workers'
Compensation law. The adjusted benefits are the benefits under the
plan multiplied by the ratio of the City's normal cost to the
total contributions of the City and employees in the preceding fiscal
year as computed by the actuary. The Board of Trustees shall have
full right to apply the provisions of the plan in such equitable manner
as it determines.
[R.O. 2011 § 2.64.430; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
If the membership of an employee is terminated by reason of death
prior to the member's normal retirement age and the member's
retirement date, the amount of the employee's accumulated contributions
shall be payable in a lump sum to the employee's designated beneficiary,
plus a death benefit of one hundred thousand dollars ($100,000.00)
payable as provided under the terms and conditions of a standard term
life insurance policy if approved by the City Manager and purchased
with funds in the Non-Uniformed Employees Retirement Fund, and if
the City Manager has elected not to purchase such a policy, the death
benefit shall be payable from the Non-Uniformed Employees Retirement
Fund to the extent payment would be made under a standard term life
insurance policy.
B.
If the membership of an employee is terminated by reason of the member's death after the member's normal retirement age but prior to the member's actual retirement, the member's accumulated contributions shall be payable in a lump sum to the member's designated beneficiary. If the deceased member's designated beneficiary is his/her surviving spouse, they may elect to receive in lieu of the member's accumulated contributions a pension payable for life computed as if a member had retired on the day of the member's death and had elected the optional form of pension set forth in Section 130.630.
C.
If there are no further benefits otherwise payable under this Section
and the total amount of benefits received by a member, retiree, or
beneficiary up to the date of the death of the last survivor is less
than an amount equal to the member's accumulated contributions
at the member's death or at the member's retirement date,
whichever occurs first, the difference shall be paid to the beneficiary
named to receive such amount, or, if no such beneficiary is living,
to the estate of the person last receiving benefits, or, if no benefits
have been received, to the estate of the member.
[R.O. 2011 § 2.64.440; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
All retirees and beneficiaries shall continue to receive the increases
in monthly benefits previously authorized by ordinance. Said increases
are as follows:
1.
Effective February 23, 1987, a monthly increase of ten percent
(10%) to retirees who retired prior to September 1, 1981, and to beneficiaries
whose spouses retired prior to September 1, 1981, provided such retirees
and beneficiaries were receiving benefits as of February 23, 1987;
2.
Effective January 1, 1990, a monthly increase of ten dollars
($10.00) to all retirees who retired prior to January 1, 1989, and
to their beneficiaries, provided such retirees and beneficiaries were
receiving benefits as of January 1, 1990;
3.
Effective December, 1992, a monthly increase of twenty-five
dollars ($25.00) to all retirees who retired prior to July 1, 1991,
and to their beneficiaries other than children, provided such retirees
and beneficiaries were receiving benefits as of December, 1992.
B.
Effective January 1, 1995, all retirees who retired prior to June
1, 1994, and whose employment terminated after they became eligible
for retirement pursuant to this Article, and their beneficiaries other
than children, shall receive a monthly benefits increase of ten dollars
($10.00), provided such retirees and beneficiaries were receiving
benefits as of January 1, 1995.
C.
Effective July 1, 1998, all retirees who retired prior to December
31, 1996, and whose employment terminated after they became eligible
for retirement pursuant to this Article, and their beneficiaries other
than children, shall receive a monthly benefits increase of twenty
dollars ($20.00), provided such retirees and beneficiaries were receiving
benefits as of July 1, 1998.
D.
Effective July 1, 2000, all retirees who retired prior to December
31, 1999, and whose employment terminated after they became eligible
for retirement pursuant to this Article, and their beneficiaries other
than children, shall receive a monthly benefits increase of the greater
of five percent (5%) or forty dollars ($40.00), provided such retirees
and beneficiaries were receiving benefits as of July 1, 2000.
E.
Effective July 1, 2003, all retirees who retired prior to January
1, 2003, and whose employment terminated after they became eligible
for retirement pursuant to this Article, and their beneficiaries other
than children, shall receive a monthly benefits increase of twenty
dollars ($20.00), provided such retirees and beneficiaries were receiving
benefits as of January 1, 2003.
F.
Effective July 1, 2007, all retirees who retired prior to January
1, 2007, and whose employment terminated after they became eligible
for retirement pursuant to this Article, and their beneficiaries other
than children, shall receive a monthly benefits increase of twenty-five
dollars ($25.00), provided such retirees and beneficiaries were receiving
benefits as of January 1, 2007.
[R.O. 2011 § 2.64.450; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
Any employee who has completed ten (10) years of service with
the City and who thereupon separates from employment for reason other
than death is entitled to pension benefits from the fund payable at
the employee's normal service retirement date in lieu of receiving
the employee's accumulated contribution to the fund. The retirement
benefits shall be calculated as for normal service retirement but
based on the employee's years of creditable service and final
average compensation as of the date of employee's separation.
Such employee must notify the Board of his/her desire to retain a
vested interest in the fund within thirty (30) days of employee's
separation from employment with the City. The form and manner of employee's
later application for retirement benefits will be identical to that
prescribed in this Article for employees making a normal service retirement.
[R.O. 2011 § 2.64.470; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
A member shall have a one hundred percent (100%) vested interest
in his/her accrued benefit upon reaching normal or early retirement
age prior to termination of employment, death or disability.
B.
Any employee who has completed ten (10) years of service with the City and who thereupon separates from employment for reason other than death may elect to receive benefits under Section 130.590 in lieu of receiving the employee's accumulated contribution to the fund.
C.
Notwithstanding anything in this Article to the contrary, effective
September 1, 1974, a participant shall be one hundred percent (100%)
vested in his/her accrued benefit upon attaining normal retirement
age, if the employee has satisfied any reasonable and uniformly applicable
service or participation requirements or in the event that the plan
is terminated or contributions to the plan have been completely discontinued.
[R.O. 2011 § 2.64.480; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
This Section applies effective for limitation years beginning after
December 31, 1994, regardless of whether any member is or has ever
been a member in another qualified plan maintained by the employer.
If any member is or has ever been a member in another qualified plan
maintained by the employer, or a Welfare Benefit Fund maintained by
the employer (as defined in Code Section 419(e)) under which amounts
attributable to post-retirement medical benefits are allocated to
separate accounts of key employees (as defined in Code Section 419(A)(d)(3)),
or in an individual medical account as defined in Code Section 415(l)(2)
maintained by the employer, or in a simplified employee pension as
defined in Code Section 408(k) maintained by the employer, that provides
an annual addition, this Section is also applicable to that member's
benefits.
1.
Maximum benefit. The annual benefit otherwise payable to a member
at any time will not exceed the maximum permissible amount. If the
benefit the member would otherwise accrue in a limitation year would
produce an annual benefit in excess of the maximum permissible amount,
the rate of accrual will be reduced so that the annual benefit is
equal to the maximum permissible amount. The maximum permissible amount
for a member who has not attained normal retirement age shall be applied
to the actuarial equivalent of the member's accrued benefit otherwise
payable under the plan at normal retirement age, based on the member's
applicable completed years of benefit service to date.
2.
Treatment of employee contributions. If a member makes voluntary employee contributions, or mandatory contributions as defined in Code Section 411(c)(2)(C), under the terms of this plan, the amount of such contributions is treated as an annual addition to a qualified defined contribution plan for purposes of Sections 130.610(A)(1) and 130.610(B)(2).
B.
This Section applies if any member is covered, or has ever been covered,
by another plan maintained by the employer, including a qualified
retirement plan, a Welfare Benefit Fund, a Welfare Benefit Fund maintained
by the employer (as defined in Code Section 419(e)) under which amounts
attributable to post-retirement medical benefits are allocated to
separate accounts of key employees (as defined in Code Section 419(A)(d)(3)),
an individual medical account, or a simplified employee pension that
provides an annual addition.
1.
More than one (1) defined benefit plan. If a member is, or has
ever been, covered under more than one (1) employer maintained defined
benefit plan, the sum of the member's annual benefits from all
such defined benefit plans may not exceed the maximum permissible
amount. A member's benefits in this plan shall be limited to
an amount whereby the member's employer-provided benefits under
all defined benefit plans ever maintained by the employer (determined
as of the same age) do not exceed the maximum permissible amount applicable
at that age.
2.
Multiple plan fraction. For limitation years beginning before
January 1, 2000, if the employer maintains, or at any time maintained,
one (1) or more qualified defined contribution plans covering any
member in this plan, a Welfare Benefit Fund maintained by the employer
(as defined in Code Section 419(e)) under which amounts attributable
to post-retirement medical benefits are allocated to separate accounts
of key employees (as defined in Code Section 419(A)(d)(3)), an individual
medical account plan, or a simplified employee pension, the sum of
the member's defined contribution fraction and defined benefit
fraction cannot exceed 1.0 in any limitation year, as follows:
a.
The annual addition that may be credited to the member's
account under the defined contribution plan for a limitation year
will be reduced so the 1.0 limit will not be exceeded. No member who
is or was a member in a qualified defined contribution plan of an
employer will accrue an annual benefit in excess of the amount as
adjusted by the Code Section 415(e) aggregated limitation as in effect
prior to the first limitation year which begins on or after January
1, 2000.
b.
For purposes of subparagraph (a) above, the Code Section 415(e)
aggregated limitation is one minus the defined contribution fraction,
multiplied by the lesser of one hundred twenty-five percent (125%)
of the adjusted dollar limitation, or one hundred forty percent (140%)
of highest average compensation.
c.
Subparagraph (a) above shall be applicable only for limitation
years beginning before January 1, 2000. Benefit increases resulting
from the repeal of Code Section 415(e) will be provided to all current
and former members (with benefits limited by Code Section 415(e))
who have an accrued benefit under the plan immediately before the
first day of the first limitation year beginning in 2000.
3.
TRA '86 transition rule. If an individual was a member
in one (1) or more defined benefit plans of the employer as of the
first day of the first limitation year beginning after December 31,
1986, the application of the limitations of this Article will not
cause such individual's maximum permissible amount under all
such defined benefit plans to be less than the individual's Tax
Reform Act of 1986 (TRA '86) Accrued Benefit. The preceding sentence
applies only if such defined benefit plans met the requirements of
Code Section 415 for all limitation years beginning before January
1, 1987.
C.
The maximum annual addition made to a member's various accounts maintained under the plan for any limitation year beginning after December 31, 1986 will not exceed the lesser of the dollar limitation set forth in Section 130.610(C)(1) or the compensation limitation set forth in Section 130.610(C)(2), as adjusted in the remainder of this Section, as follows:
1.
Dollar limitation. For limitation years beginning prior to January
1, 1995, the dollar limitation is one-fourth of defined benefit dollar
limitation set forth in Code Section 415(b)(1)(A). For limitation
years beginning after December 31, 1994 and prior to January 1, 2002,
the dollar limitation is thirty thousand dollars ($30,000.00), as
adjusted by the Secretary of the Treasury in accordance with Code
Section 415(d). For limitation years beginning after December 31,
2001, the dollar limitation is forty thousand dollars ($40,000.00),
as adjusted by the Secretary of the Treasury in accordance with Code
Section 415(d).
2.
Compensation limitation. For limitation years beginning prior
to January 1, 2002, the compensation limitation is an amount equal
to twenty-five percent (25%) of the member's Section 415 compensation
for the limitation year. For limitation years beginning after December
31, 2001, the compensation limitation is an amount equal to one hundred
percent (100%) of the member's Section 415 compensation for the
limitation year. However, this limitation will not apply to any contribution
made for medical benefits within the meaning of Code Section 401(h)
or Code Section 419A(f)(2) after separation from service which is
otherwise treated as an annual addition under Code Section 415(l)(1)
or Code Section 419A(d)(2).
3.
Adjustments to maximum annual addition. In applying the limitation
on annual additions set forth herein, the following adjustments must
be made:
a.
Short limitation year. In a limitation year of less than twelve (12) months, the defined contribution dollar limitation in Section 130.610(C)(1) will be adjusted by multiplying it by the ratio that the number of months in the short limitation year bears to twelve (12).
b.
Plans with different anniversary dates. If a member participates
in multiple defined contribution plans sponsored by the employer with
different anniversary dates or plan years, the maximum annual addition
in this plan for the limitation year will be reduced by the annual
addition credited to the member's accounts in the other plans
for such limitation year.
c.
Plans with the same anniversary date. If a member participates
in multiple defined contribution plans sponsored by the employer which
have the same anniversary date and plan year, then
(1)
If only one (1) of the plans is subject to Code
Section 412, annual additions will first be credited to the member's
accounts in the plan so subject; and
(2)
If none of the plans are subject to Code Section
412, the maximum annual addition in this plan for a given limitation
year will either
(a)
Equal the product of the maximum annual addition for such limitation year minus any other annual additions previously credited to the member's account, multiplied by the ratio that the annual additions which would be credited to a member's accounts hereunder without regard to the limitations in Section 130.610(C) bears to the annual additions for all plans described in this paragraph, or
(b)
Be reduced by the annual additions credited to
the member's accounts in the other plans for such limitation
year.
4.
Multiple plans and employers. All defined benefit plans (whether
terminated or not) of the employer will be treated as one (1) defined
benefit plan; all defined contribution plans (whether terminated or
not) of the employer will be treated as one (1) defined contribution
plan; and all affiliated employers will be considered a single employer.
5.
Adjustment for excessive annual additions. If for any limitation year beginning prior to January 1, 2007, the annual additions allocated to a member's account exceeds the maximum amount permitted under Section 130.610(C) above because of an allocation of forfeitures, a reasonable error in estimating a member's compensation, a reasonable error in determining the amount of elective contributions (within the meaning of Code Section 402(g)(3)), or because of other limited facts and circumstances that the Commissioner finds justify the availability of the rules set forth in this Section, then such member's account will be adjusted as follows in order to reduce the excess annual additions:
a.
Return of elective deferrals and employee contributions. The
administrator will first return any elective deferrals and/or employee
contributions (whether such contributions are voluntary or mandatory),
and will distribute gains attributable thereto, to the extent that
would reduce the excess amount.
b.
Reallocation in the current year. After the return of contributions
and the distribution of gains specified in subparagraph (a) above
have been made, and prior to the creation of a Section 415 suspense
account as set forth in subparagraph (c) below, any excess will be
reallocated to all members who have not yet attained their maximum
annual addition. If necessary, the administrator will repeat the reallocation
until all members have reached their maximum annual addition.
c.
Remaining excess. If an excess still remains in a member's
account, then
(1)
If the member is employed by the employer at the
end of the limitation year, the administrator will hold the excess
in the Section 415 suspense account and use it to reduce employer
contributions (including any allocation of forfeitures) for the next
limitation year (and each succeeding limitation year if necessary)
for the member; and
(2)
If the member is not employed by the employer at
the end of a limitation year, the excess cannot be distributed to
the member but will be held in the Section 415 suspense account and
be used to reduce future employer contributions (including the allocation
of forfeitures) for all remaining members in the next limitation year
(and each succeeding limitation year if necessary).
d.
Earnings, losses and reallocation. If the Section 415 suspense
account is in existence at any time during a limitation year, it will
not share in the allocation of the earnings or losses of the Trust
Fund. If the Section 415 suspense account is in existence at any time
during a particular limitation year, all amounts in such account must
be allocated and reallocated to members' accounts before any
employer contributions or any employee contributions may be made to
the plan for that limitation year. Excess amounts in the Section 415
suspense account may not be distributed to members or former members.
D.
As used in this Section 130.610 and for all other purposes of the plan, the following words and phrases will have the following meanings:
1.
Annual additions. The term "annual additions" means the sum of the following amounts credited to a member's account for the limitation year: (1) employer contributions; (2) employee contributions; (3) forfeitures; (4) amounts allocated, after March 31, 1984, to an individual medical account, as defined in Code Section 415(l)(2), which is part of a pension or annuity plan maintained by the employer; (5) amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, attributable to post-retirement medical benefits, allocated to the separate account of a key employee under a Welfare Fund, as defined in Code Section 419(e), maintained by the employer; and (6) amounts allocated, in taxable years beginning after April 1, 1980, under a simplified employee pension. Notwithstanding the foregoing, a member's annual additions do not include his/her rollovers, loan repayments, repayments of prior plan distributions or prior distributions of mandatory contributions, direct transfers of contributions from another plan to this plan, deductible contributions to a simplified employee pension plan, or voluntary deductible contributions. Annual additions shall not include any repayment of contributions (including interest thereon) to this plan pursuant to the provisions of Section 130.110 by reason of the application of Code Section 415(k)(3).
2.
Annual benefit. The term "annual benefit" means a retirement
benefit under the plan that is payable annually in the form of a straight
life annuity.
a.
Actuarial adjustments to annual benefit. Except as otherwise
provided in subparagraph (2) below, a benefit payable in a form other
than a straight life annuity must be adjusted to be the actuarial
equivalent of a straight life annuity before applying the limitations
of this Article 6 as follows:
(1)
For limitation years beginning before January 1,
1995, such actuarial equivalent will be based on the mortality factors
specified under the terms of the plan as in effect before such date
and is equal to the greater of the annuity benefit computed using
an interest rate of five percent (5%) or the interest rate(s) specified
for determining actuarial equivalence under the terms of the plan
as in effect before such date.
(2)
For limitation years beginning on or after January
1, 1995, such actuarial equivalent is the greater of the annuity benefit
computed using the interest rate and mortality table in Section 1.2(d),
and the annuity benefit computed using a five percent (5%) interest
rate and the applicable mortality table in Section 1.2(f). In determining
such actuarial equivalent for a benefit form other than a non-decreasing
annuity payable for a period of not less than the life of the member
(or, in the case of a qualified pre-retirement survivor annuity, the
life of the surviving spouse), or decreases during the life of the
member merely because of (i) the death of the survivor annuitant (but
only if the reduction is not below fifty percent (50%) of the annual
benefit payable before the death of the survivor annuitant), or (ii)
the cessation or reduction of Social Security supplements of qualified
disability payments as defined in Code Section 401(a)(11), "the applicable
interest rate" as defined in Section 1.2(f) will be substituted for
"a five percent (5%) interest rate" in the preceding sentence.
b.
Circumstances where no adjustment is required: No actuarial
adjustment to the annual benefit is required for (a) the value of
a qualified joint and survivor annuity, (b) benefits that are not
directly related to retirement benefits (such as the qualified disability
benefit, pre-retirement death benefits, and post-retirement medical
benefits), and (c) the value of post-retirement cost-of-living increases
made in accordance with Code Section 415(d) and regulation Section
1.415-3(c)(2)(iii). The annual benefit does not include any benefits
attributable to employee contributions or rollovers, or the assets
transferred from a qualified plan that was not maintained by the employer.
The annual benefit does not include any benefits attributable to mandatory
employee contributions or voluntary employee contributions or rollover
contributions, or the assets transferred from a qualified retirement
plan that was not maintained by the employer.
3.
Defined benefit dollar limitation and defined benefit compensation
limitation. The term "defined benefit dollar limitation" means one
hundred sixty thousand dollars ($160,000.00), as adjusted, effective
January first (1st) of each year, under Code Section 415(d) in such
manner as the Secretary shall prescribe, and payable in the form of
a straight life annuity. A limitation as adjusted under Code Section
415(d) will apply to limitation years ending with or within the calendar
year for which the adjustment applies. The term "defined benefit compensation
limitation" means one hundred percent (100%) of a member's highest
average compensation, payable in the form of a straight life annuity.
4.
Defined benefit fraction. The term "defined benefit fraction"
means a fraction, the numerator of which is the sum of the member's
projected annual benefit under all employer maintained defined benefit
plans (whether or not terminated), and the denominator of which is
the lesser of one hundred twenty-five percent (125%) of the dollar
limitation applicable to the member determined for the limitation
year under Code Section 415(b)(1)(A) and (d), or one hundred forty
percent (140%) of the highest average compensation, including any
adjustments under Code Section 415(b)(5), both adjusted as necessary
under paragraph (g). If the member was a member on the first day of
the first limitation year beginning after December 31, 1986, in one
(1) or more employer maintained defined benefit plans which were in
existence on May 6, 1986, the denominator of this fraction will not
be less than one hundred twenty-five percent (125%) of the sum of
the annual benefits thereunder which the member had accrued as of
the close of the last limitation year beginning before January 1,
1987, disregarding any changes in the terms and conditions of the
plan after May 5, 1986. The preceding sentence applies only if the
defined benefit plans individually and in the aggregate satisfied
the requirements of Code Section 415 for all limitation years beginning
before January 1, 1987.
5.
Defined contribution fraction. The term "defined contribution
fraction" means a fraction, the numerator of which is the sum of the
annual additions to the member's account under all defined contribution
plans (whether or not terminated) maintained by the employer for the
current and all prior limitation years including annual additions
attributable to the member's voluntary employee contributions
to this and all other defined benefit plans (whether or not terminated)
maintained by the employer, and the annual additions attributable
to all Welfare Benefit Funds maintained by the employer (as defined
in Code Section 419(e)) under which amounts attributable to post-retirement
medical benefits are allocated to separate accounts of key employees
(as defined in Code Section 419(A)(d)(3)) or individual medical accounts
and simplified employee pensions maintained by the employer), and
the denominator of which is the sum of the maximum aggregate amounts
for the current and all prior limitation years with the employer (regardless
of whether a defined contribution plan was maintained by the employer).
a.
Determination of maximum aggregate amount. The maximum aggregate
amount set forth in paragraph (e) in any limitation year is the lesser
of (A) one hundred twenty-five percent (125%) of the dollar limitation
under Code Section 415(c)(1)(A) after adjustment under Code Section
415(d), or (B) thirty-five percent (35%) of the member's compensation
for such year.
b.
No re-computation required for pre-1987 annual additions. The
annual addition for any limitation year beginning before January 1,
1987, will not be recomputed to treat all employee contributions as
annual additions.
c.
Transition rule. If the employee was a member in the plan on
the first day of the first limitation year beginning after December
31, 1986, in one (1) or more defined contribution plans maintained
by the employer which were in existence on May 6, 1986, the numerator
of this fraction will be adjusted if the sum of this fraction and
the defined benefit fraction would otherwise exceed 1.0 under the
terms of this plan. Under the adjustment, an amount equal to the product
of (A) the excess of the sum of the fractions over 1.0 times (B) the
denominator of this fraction, will be permanently subtracted from
the numerator of this fraction. The adjustment is calculated using
the fractions as they would be computed as of the end of the last
limitation years beginning before January 1, 1987, and disregarding
any changes in the terms and conditions of the plan made after May
5, 1986, but using the Code Section 415 limitation applicable to the
first limitation year beginning on or after January 1, 1987.
6.
Highest average compensation. The term "highest average compensation"
means a member's average Code Section 415 compensation for the
three (3) consecutive years of service or one (1) year periods of
service with the employer that produces the highest average. If a
member has separated from service, the member's highest average
compensation will be automatically adjusted by multiplying such compensation
by the cost of living adjustment factor prescribed by the Secretary
of the Treasury under Code Section 415(d) in such manner as the Secretary
may prescribe. The adjusted compensation amount will apply to limitation
years ending with or within the calendar year of the date of the adjustment.
7.
Maximum permissible amount. The term "maximum permissible amount"
means the lesser of the defined benefit dollar limitation or the defined
benefit compensation limitation (both adjusted where required, as
provided in (1) and, if applicable, in (2) or (3) below).
a.
Service adjustment. If the member has fewer than ten (10) years
of participation in the plan, the defined benefit dollar limitation
shall be multiplied by a fraction, (i) the numerator of which is the
number of years (or part thereof) of participation in the plan and
(ii) the denominator of which is ten (10). In the case of a member
in a non-multi-employer plan who has fewer than ten (10) years of
service with the employer, the defined benefit compensation limitation
shall be multiplied by a fraction, (i) the numerator of which is the
number of years (or part thereof) of service with the employer and
(ii) the denominator of which is ten (10).
b.
Adjustment for benefits commencing prior to age sixty-two (62).
For limitation years prior to July 1, 2007, if the benefit of a member
begins prior to age sixty-two (62), the defined benefit dollar limitation
applicable to the member at such earlier age is an annual benefit
payable in the form of a straight life annuity beginning at the earlier
age that is the actuarial equivalent of the defined benefit dollar
limitation applicable to the member at age sixty-two (62) (adjusted
under (a) above, if required). The defined benefit dollar limitation
applicable at an age prior to age sixty-two (62) is determined as
the lesser of (i) the actuarial equivalent (at such age) of the defined
benefit dollar limitation computed using the interest rate and mortality
table (or other tabular factor) specified in the plan and (ii) the
actuarial equivalent (at such age) of the defined benefit dollar limitation
computed using a five percent (5%) interest rate and the applicable
mortality table as defined for purposes of benefits payable in a form
subject to Code Section 417(e). Any decrease in the defined benefit
dollar limitation determined in accordance with this paragraph (b)
shall not reflect a mortality decrement if benefits are not forfeited
upon the death of the member.
c.
Adjustment for benefits commencing after age sixty-five (65).
For limitation years prior to July 1, 2007, if the benefit of a member
begins after the member attains age sixty-five (65), the defined benefit
dollar limitation applicable to the member at the later age is the
annual benefit payable in the form of a straight life annuity beginning
at the later age that is actuarially equivalent to the defined benefit
dollar limitation applicable to the member at age sixty-five (65)
(adjusted under (a) above, if required). The actuarial equivalent
of the defined benefit dollar limitation applicable at an age after
age sixty-five (65) is determined as the lesser of (i) the actuarial
equivalent (at such age) of the defined benefit dollar limitation
computed using the interest rate and mortality table (or other tabular
factor) specified in the plan and (ii) the actuarial equivalent (at
such age) of the defined benefit dollar limitation computed using
a five percent (5%) interest rate assumption and the applicable mortality
table as defined for purposes of benefits payable in a form subject
to Code Section 417(e). For these purposes, mortality between age
sixty-five (65) and the age at which benefits commence shall be ignored.
d.
Minimum benefit permitted. Notwithstanding anything else in
this Section to the contrary, effective for limitation years beginning
after December 31, 1994, the benefit otherwise accrued or payable
to a member under this plan shall be deemed not to exceed the defined
benefit compensation limitation if the retirement benefits payable
for a plan year under any form of benefit with respect to such member
under this plan and under all other defined benefit plans (regardless
of whether terminated) ever maintained by the employer do not exceed
one thousand dollars ($1,000.00) multiplied by the member's number
of years of service or one (1) year periods of service or parts thereof
(not to exceed ten (10)) with the employer; and the employer has not
at any time maintained a defined contribution plan, a Welfare Benefit
Fund under which amounts attributable to post-retirement medical benefits
are allocated to separate accounts of key employees (as defined in
Code Section 419(A)(d)(3)), or an individual medical account in which
the member participated (for these purposes, voluntary or involuntary
employee contributions under a defined benefit plan are treated as
a separate defined contribution plan).
e.
Cost of living adjustment. Effective for limitation years beginning
after December 31, 1994, if the annual benefit payable to a terminated
member who has not received a complete distribution of his/her non-forfeitable
accrued benefit is limited by either the defined benefit dollar limitation
or by the defined benefit compensation limitation, such benefit may,
at the discretion of the sponsor and applied in a uniform manner,
be increased in accordance with cost of living adjustments under Code
Section 415(d).
8.
Projected annual benefit: The term "projected annual benefit"
means the annual benefit to which the member would be entitled assuming
(1) the member will continue employment until normal retirement age
(or current age, if later), and (2) the member's compensation
for the current limitation year and all other relevant factors used
to determine benefits will remain constant for all future limitation
years.
9.
TRA '86 accrued benefit: The term "TRA '86 accrued
benefit" means a member's accrued benefit determined as if he/she
had separated from service as of the close of the last limitation
year beginning before January 1, 1987, when expressed as an annual
benefit within the meaning of Code Section 415(b)(2). In determining
a member's TRA '86 accrued benefit, the following will be
disregarded: any change in the terms and conditions of the plan after
May 5, 1986; and any cost of living adjustments occurring after May
5, 1986.
10.
Year of participation. A member will be credited with a year
of participation (computed to fractional parts of a year) for each
accrual computation period in which the following conditions are met:
(1) the member is credited with at least the number of hours of service
(or period of service if the elapsed time method is used) for benefit
accrual purposes, required under the plan to accrue a benefit for
the accrual computation period, and (2) the member is included as
a member under the eligibility provisions of the plan for at least
one (1) day of the accrual computation period. If these two (2) conditions
are met, the portion of a year of participation credited to the member
will equal the amount of benefit accrual service credited to the member
for such accrual computation period. A member who is permanently and
totally disabled within the meaning of Code Section 415(c)(3)(C)(i)
for an accrual computation period will receive a year of participation
with respect to that period. In addition, for a member to receive
a year of participation (or part thereof) for an accrual computation
period, the plan must be established no later than the last day of
such computation period. In no event will more than one (1) year of
participation be credited for any twelve (12) month period.
E.
Effective for limitation years beginning on or after July 1, 2007,
the provisions of Code Section 415 and the Treasury Regulations issued
thereunder as applicable to governmental retirement plans are incorporated
by reference.
[R.O. 2011 § 2.64.500; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
Applications for benefits to be paid under this Article shall be
made upon forms provided by the Board of Trustees, and shall contain
full information, from which the Board may determine the eligibility
of the applicant. If an application for retirement is approved, no
further compensation for services shall thereafter be paid by the
City to such employee except for such part-time service, not exceeding
one thousand one hundred (1,100) hours per year to the City.
B.
Applications for distributions shall be made in accordance with rules
and procedures established, and upon forms (or such other medium)
provided by the Board of Trustees or, if authorized by the board,
the manager of the investment funds.
[R.O. 2011 § 2.64.515; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
If the designated beneficiary of a member is the spouse of a
member, the member may elect prior to the member's normal or
early retirement date to receive, in lieu of the member's regular
normal or early retirement pension, a reduced pension payable for
so long as the member shall live, with such reduced pension continuing
to the member's spouse for his/her lifetime following the member's
death. Such reduced pension shall be the actuarial equivalent of the
pension regularly payable.
[R.O. 2011 § 2.64.520; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
Required Beginning Date. The member's entire interest will be
distributed, or begin to be distributed, to the member no later than
the member's required beginning date.
B.
Death Of Member Before Distributions Begin. If the member dies before
distributions begin, his/her entire interest will be distributed,
or begin to be distributed, no later than as follows:
1.
If the member's surviving spouse is the member's sole designated beneficiary, then subject to Section 130.640(B)(5) below distributions to the surviving spouse will begin by December thirty-first (31st) of the calendar year immediately following the calendar year in which the member died, or by December thirty-first (31st) of the calendar year in which the member would have attained age seventy and one-half (70 1/2), if later.
2.
If the member's surviving spouse is not the member's sole designated beneficiary, then subject to Section 130.640(B)(5) below distributions to the designated beneficiary will begin by December thirty-first (31st) of the calendar year immediately following the calendar year in which the member died.
3.
If there is no designated beneficiary as of September thirtieth
(30th) of the year following the year of the member's death,
the member's entire interest will be distributed by December
thirty-first (31st) of the calendar year containing the fifth (5th)
anniversary of the member's death.
4.
If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this Section, other than Section 130.640(B)(1), will apply as if the surviving spouse were the member.
5.
If the member dies before distributions begin and there is a designated beneficiary, distribution to the designated beneficiary is not required to begin by the date specified in Sections 130.640(B)(1) or 130.640(B)(2) if the member's entire interest is distributed to the designated beneficiary by December thirty-first (31st) of the calendar year containing the fifth (5th) anniversary of the member's death.
For purposes of this Section and Section 130.640(C), unless Section 130.640(B)(4) applies, distributions are considered to begin on the member's required beginning date. If Section 130.640(B)(4) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 130.640(B)(1). If annuity payments irrevocably commence to the member before the member's required beginning date (or to the member's surviving spouse before the date distributions are required to begin to the surviving spouse under Section 130.640(B)(1), the date distributions are considered to begin is the date distributions actually commence.
C.
Forms Of Distribution. Unless the member's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with Sections 130.650 and 130.660. If the member's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9) and the IRS regulations. Any part of the member's interest which is in the form of an individual account described in Code Section 414(k) will be distributed in a manner satisfying the requirements of Code Section 401(a)(9) and the IRS regulations that apply to individual accounts.
[R.O. 2011 § 2.64.522; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
General Annuity Requirements. If the member's interest is paid
in the form of annuity distributions under the plan, payments under
the annuity will satisfy the following requirements:
1.
The annuity distributions will be paid in periodic payments
made at intervals not longer than one (1) year;
3.
Once payments have begun over a period certain, the period certain
will not be changed even if the period certain is shorter than the
maximum permitted;
4.
Payments will either be non-increasing or increase only as follows: (1) by an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index based on prices of all items and issued by the Bureau of Labor Statistics; (2) to the extent of the reduction in the amount of the member's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in Section 4 dies; (3) to provide cash refunds of employee contributions upon the member's death; or (4) to pay increased benefits that result from a plan amendment.
B.
Amount Required To Be Distributed By Required Beginning Date. The amount that must be distributed on or before the member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under Sections 130.640(B)(1) or (2) is the payment that is required for one payment interval. The second (2nd) payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member's required beginning date.
C.
Additional Accruals After First Distribution Calendar Year. Any additional
benefits accruing to the member in a calendar year after the first
distribution calendar year will be distributed beginning with the
first payment interval ending in the calendar year immediately following
the calendar year in which such amount accrues.
[R.O. 2011 § 2.64.525; Ord. No.
6839§ 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh. A), 9-9-2013]
A.
Joint Life Annuities Where The Beneficiary Is Not The Member's
Spouse. If the member's interest is being distributed in the
form of a joint and survivor annuity for the joint lives of the member
and a non-spouse beneficiary, annuity payments to be made on or after
the member's required beginning date to the designated beneficiary
after the member's death must not at any time exceed the applicable
percentage of the annuity payment for such period that would have
been payable to the member using the table in Q and A-2 of Section
1.401(a)(9)-6T of the IRS regulations. If the form of distribution
combines a joint and survivor annuity for the joint lives of the member
and a non-spouse beneficiary and a period certain annuity, the requirement
in the preceding sentence will apply to annuity payments to be made
to the designated beneficiary after the expiration of the period certain.
B.
Period Certain Annuities. Unless the member's spouse is the
sole designated beneficiary and the form of distribution is a period
certain and no life annuity, the period certain for an annuity distribution
commencing during the member's lifetime may not exceed the applicable
distribution period for the member under the Uniform Lifetime Table
set forth in Section 1.401(a)(9)-9 of the IRS regulations for the
calendar year that contains the annuity starting date. If the annuity
starting date precedes the year in which the member reaches age seventy
(70), the applicable distribution period for the member is the distribution
period for age seventy (70) under the Uniform Lifetime Table set forth
in Section 1.401(a)(9)-9 of the IRS regulations plus the excess of
seventy (70) over the age of the member as of the member's birthday
in the year that contains the annuity starting date. If the member's
spouse is the member's sole designated beneficiary and the form
of distribution is a period certain and no life annuity, the period
certain may not exceed the longer of the member's applicable
distribution period, as determined under this Section 4.2, or the
joint life and last survivor expectancy of the member and the member's
spouse as determined under the Joint and Last Survivor Table set forth
in Section 1.401(a)(9)-9 of the IRS regulations, using the member's
and spouse's attained ages as of the member's and spouse's
birthdays in the calendar year that contains the annuity starting
date. [
[R.O. 2011 § 2.64.527; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
Member Survived By Designated Beneficiary. If the member dies before
the date distribution of his/her interest begins and there is a designated
beneficiary, the member's entire interest will be distributed,
beginning no later than the time described in Section 520(a)(2)(A)
or 520(a)(2)(B), over the life of the designated beneficiary or over
a period certain not exceeding (a) unless the annuity starting date
is before the first distribution calendar year, the life expectancy
of the designated beneficiary determined using the beneficiary's
age as of the beneficiary's birthday in the calendar year immediately
following the calendar year of the member's death; or (b) if
the annuity starting date is before the first distribution calendar
year, the life expectancy of the designated beneficiary determined
using the beneficiary's age as of his/her birthday in the calendar
year that contains the annuity starting date.
B.
No Designated Beneficiary. If the member dies before the date distributions
begin and there is no designated beneficiary as of September thirtieth
(30th) of the year following the year of the member's death,
distribution of the member's entire interest will be completed
by December thirty-first (31st) of the calendar year containing the
fifth (5th) anniversary of the member's death.
C.
Death Of Surviving Spouse Before Distributions To Surviving Spouse
Begin. If the member dies before the date distribution of his/her
interest begins, the member's surviving spouse is the member's
sole designated beneficiary, and the surviving spouse dies before
distributions to the surviving spouse begin, this Section 520(d) will
apply as if the surviving spouse were the member, except that the
time by which distributions must begin will be determined without
regard to Section 520(a)(2)(A).
[R.O. 2011 § 2.64.530; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
Effective for distributions made after December 31, 1992, a distributee
may elect to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee
in a direct rollover, which is a payment by the plan to the eligible
retirement plan specified by the distributee.
1.
Eligible rollover distribution. An eligible rollover distribution
is any distribution of all or any portion of the balance to the credit
of the distributee, except that an eligible rollover distribution
does not include any distribution that is one (1) of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or for the joint
lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of ten (10) years
or more; any distribution to the extent such distribution is required
under Section 401(a)(9) of the Internal Revenue Code; and effective
for distributions after December 31, 2001, any hardship distribution
and any other distribution(s) that is reasonably expected to total
less than two hundred dollars ($200.00) during a year. For purposes
of the two hundred dollar ($200.00) rule, a distribution from a designated
Roth account and a distribution from other accounts under that plan
are treated as made under separate plans.
Any portion of a distribution that consists of after-tax employee
contributions which are not includible in gross income may be transferred
only to (1) for distributions made after December 31, 2001, a defined
contribution plan described in Section 401(a) or Section 403(a) of
the Code that agrees to separate accounting for amounts so transferred
(and earnings thereon), including separately accounting for the portion
of such distribution which is includible in gross income and the portion
of such distribution which is not so includible or a traditional individual
retirement account or annuity described in Section 408 (a) or (b)
of the Code (a "traditional IRA"); and (2) effective for distributions
after December 31, 2006, to a qualified plan or an annuity contract
described in Section 401(a) and Section 403(b) of the Code respectively,
that agrees to separate accounting for amounts so transferred (and
earnings thereon), including separately accounting for the portion
of such distribution which is includible in gross income and the portion
of such distribution which is not so includible or a traditional individual
retirement account or annuity described in Section 408(a) or (b) of
the Code (a "traditional IRA"); and (3) effective for distributions
made after December 31, 2007, shall also include a Roth individual
retirement account or annuity described in Section 408A of the Code
(a "Roth IRA").
2.
Eligible retirement plan. An eligible retirement plan is an
individual retirement account described in Code Section 408(a), an
individual retirement annuity described in Code Section 408(b), an
annuity plan described in Code Section 403(a), or a qualified trust
described in Code Section 401(a), that accepts the distributee's
eligible rollover distribution. Effective for distributions made after
December 31, 2001, an eligible retirement plan shall also mean an
annuity contract described in Code Section 403(b) and an eligible
plan under Code Section 457(b) which is maintained by a State, political
subdivision of a State, or any agency or instrumentality of a State
or political subdivision of a State and which agrees to separately
account for amounts transferred into such plan from this plan. Effective
for distributions made after December 31, 2007, an eligible retirement
plan shall also mean a Roth IRA. The definition of eligible retirement
plan shall also apply in the case of a distribution to a surviving
spouse.
3.
Definition of distributee. A distributee includes an employee
or former employee. In addition, an employee's or former employee's
surviving spouse is a distributee with regard to the interest of the
spouse or former spouse. For distributions after December 31, 2006,
a distributee shall also include the employee's or former employee's
nonspouse designated beneficiary, in which case the distribution can
only be transferred to a traditional or Roth IRA established on behalf
of the nonspouse designated beneficiary for the purpose of receiving
the distribution.
4.
Direct rollover. A direct rollover is a payment by the plan
to the eligible retirement plan specified by the distributee.
[R.O. 2011 § 2.64.600; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
[R.O. 2011 § 2.64.610; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
A.
Except to the extent otherwise provided for under Chapter 120, Article XIII, the Director of Finance of the City shall be custodian of all monies, securities and other property of the Retirement Fund, subject to the control and direction of the Board of Trustees. The Director of Finance shall keep separate books and complete accounts of the Non-Uniformed Employees Retirement Fund, and the Director's books and records shall be subject to the inspection of the Board of Trustees or any of its members at all times.
[R.O. 2011 § 2.64.620; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
[R.O. 2011 § 2.64.640; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
All disbursements of funds from the Retirement Fund established
pursuant to this Article shall be by voucher, stating its purpose
and the name of the payee. Such voucher shall be delivered to the
Director of Finance and constitute the Director of Finance's
authority to draw a check therefor upon the Retirement Fund for the
amount therein specified. All paid vouchers shall be subject to review
and approval by the Board. Retirement benefits shall be approved by
the Board upon retirement of each employee and annually thereafter.
[R.O. 2011 § 2.64.650; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
Effective as of January 1, 1966, neither the corpus or the income
of the fund created pursuant to this Article shall be diverted to
or used for any other than the exclusive benefit of the members or
their beneficiaries. Any person consenting to a diversion of any part
of the fund to any other purpose shall, upon conviction thereof, be
subject to a fine of not more than five hundred dollars ($500.00)
in addition to any other penalties prescribed by law.
[R.O. 2011 § 2.64.700; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
The benefits payable from the fund provided for by this Article
shall not be assignable, subject to counter claim, recoupment or set
off, nor shall they be subject to assignment, garnishment, sequestration,
execution, injunction or any other decree, order, process or proceeding
in any court for the payment of any debt of the beneficiary and the
benefits shall be held and distributed for the purpose of this Article
and for no other purpose whatsoever.
[R.O. 2011 § 2.64.720; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
Any person who shall knowingly or willfully make any false statement
for the purpose of securing benefits under the terms of this Article,
or shall falsify, cause or permit to be falsified any record or records
of such retirement plan in any attempt to defraud, shall be guilty
of a misdemeanor and shall be punishable therefor under the laws of
the State, and all the person's rights, interests and privileges
under and by virtue of this Article shall be forfeited.
[R.O. 2011 § 2.64.730; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
If at any time hereafter the Retirement Fund created pursuant
to this Article shall be insufficient to pay in full all the benefits
provided by this Article to those at the time being entitled to such
benefits, the amount then on hand and available for payment of benefits
shall be prorated among the retirees and beneficiaries so that all
retirees and beneficiaries shall receive the same percentage of their
full monthly benefits.
[R.O. 2011 § 2.64.750; Ord. No.
6839 § 1(Exh. A), 12-13-2010; Ord. No. 6926 § 1(Exh.
A), 9-9-2013]
In no event shall anything in this Article be held or construed
to impose upon the City any duty or liability in excess of the funds
appropriated for the purpose herein specified.
