[Adopted 2-29-1977 by Ord. No. 52B (Ch. 1, Part 8B, of the 2003 Code
of Ordinances)]
The City Employees Retirement Fund be and the same is hereby
established by the City of Lock Haven, which shall be known and designated
as the "City Employees Retirement Fund" and shall be as follows.
The plan shall be known as the "City Employees Retirement Fund,"
hereinafter referred to as the "plan," and is established to provide
income for the employees at the close of their employment.
[Amended 12-30-1985 by Ord. No. 234B]
The following words and phrases, as used herein, shall have
the following meanings, unless a different meaning is plainly required
for intelligent interpretation of the context:
A person's age at his or her birthday.
January 1, 1978.
Each January 1 subsequent to the effective date.
That person, persons or trusts who has been designated by
the participant to receive any benefits hereunder upon the death of
the participant or pensioner and, in the event of no designation by
the participant, the participant's spouse, if living, otherwise
to his children, if living, otherwise to his parents, if living, otherwise
to his brothers and sisters, if living, otherwise to his estate. Any
amounts payable to two or more persons as beneficiary should be paid
to them in equal shares unless the beneficiary designation provides
otherwise. The word "children" as used herein or in a beneficiary
designation will not be construed to have the broad meaning of descendants.
As defined in § 99-34A of this article.
The gross wages, compensation or salary of an employee, excluding
amounts paid for overtime and including any longevity pay. Earnings
shall include workers' compensation paid to a participant plus a gross
up 1/2 of the workers' compensation so that earnings during any period
on workers' compensation is substantially equivalent to salary while
not under workers' compensation.
[Amended 10-16-2017 by Ord. No. 974]
February 1, 1966.
Any person who is employed on a full-time and permanent basis
by the City, excluding all policemen, whose most recent date of employment
is subsequent to December 31, 1977, and including elected or appointed
officials of the City of Lock Haven other than those who first serve
as Mayor, members of Council or Controller on or after January 7,
1986.
The City of Lock Haven.
All monies, contracts or other property received in any manner
by the trustees.
Fifteen or more days during any calendar month.
Any employee who has met the eligibility requirements under the provisions of § 99-28 herein.
A participant who has become certified to the trustee by
the Retirement Committee as one entitled to receive retirement benefits
hereunder.
The City Treasurer, City Manager and Secretary of the Retirement
Fund Board.
The total number of months of employment from February 1,
1956, and the total number of months shall be reduced to years. Service
shall not be deemed to be interrupted by vacations, temporary illness,
disability preventing the participant from engaging in any gainful
employment with the City or by leave of absence, provided that no
such interruption shall exceed one year. Leaves of absence shall not
be granted on a discriminatory basis. If an employee shall be excluded
from the payroll, as a result of the reasons stated in this definition,
he shall pay back all contributions due.
The depository selected by the City to hold and invest the fund pursuant to § 99-32.
[Amended 4-21-1980 by Ord. No. 105B]
A.
Present participants. Any present participant of the plan on January
1, 1978, shall remain eligible and shall participate in this plan
as of the amendment date.
B.
Present nonparticipating employees. Any employee of the City whose
date of hire precedes January 1, 1978, and who, at that date, is not
a part of the plan shall be eligible to be a participant of the plan
as of that date, but for the purposes of this article shall be considered
as a future employee.
C.
Future employees. Any employee of the City whose date of employment
is subsequent to January 1, 1978, shall become eligible and shall
participate on the date of his hire.
[Amended 4-21-1980 by Ord. No. 105B]
A.
Normal retirement. The normal retirement date of a participant shall
be the first of the month coincident with or next following the participant's
65th birthday and the completion of 10 years' service. The normal
retirement date shall not be construed by the employer as a mandatory
retirement date.
B.
Early retirement. Any participant may retire within 15 years prior
to his normal retirement date, providing he has completed at least
10 years of service.
[Amended 11-29-1979 by Ord. No. 93B; 4-21-1980 by Ord. No. 105B; 6-6-1983 by Ord. No. 179B; 12-30-1985 by Ord. No. 234B; 12-7-1987 by Ord. No. 288BA; 6-17-1991 by Ord. No. 380B; 8-5-1991 by Ord. No. 388B; 11-24-1994 by Ord. No. 477B; 12-1-1997 by Ord. No. 536B; 6-1-1998 by Ord. No. 549B; 10-5-1998 by Ord. No. 562B; 8-23-1999 by Ord. No. 576B]
A.
Benefits upon normal retirement. Upon retirement on his normal retirement
date, a participant shall be entitled to receive a monthly retirement
benefit, payable for his lifetime, equal to:
(1)
For participants who were employed prior to January 1, 1978, by the
police force: $3 multiplied by the participant's years of service.
(2)
For individuals who participated in the City Employees Retirement
Fund under Ordinance No. 562A, as amended, and who were employed and
left City employment prior to January 1, 1978, and who did not withdraw
their contributions at the time their employment was terminated: $3
multiplied by the participant's years of service.
(3)
For individuals who participated in the City Employees Retirement
Fund only while first serving prior to January 1, 1978, as either
Mayor, a member of Council or Controller of the City of Lock Haven:
$7 multiplied by the participant's years of service in said capacity.
(4)
For individuals who participated in the City Employees Retirement
Fund while serving as either Mayor, a member of Council or Controller
of the City of Lock Haven and also participate in said fund while
serving the City of Lock Haven in some other capacity subsequent to
December 30, 1985: $7 multiplied by the participant's years of
service as Mayor, member of Council or Controller, plus the participant's
years of service in such other capacity multiplied by 1.8% of the
average monthly earnings during the best five consecutive years of
the 10 years immediately prior to retirement or, if the years of service
in such other capacity is less than 10 years, 1.8% of the average
monthly earnings during the best five consecutive years of service
in such capacity or the entire period if such period of service is
less than five years.
(5)
For individuals who participated in the City Employees Retirement
Fund under Ordinance No. 562A, as amended, and who were employed and
left City employment prior to January 1, 1978, and who withdrew their
contributions at the time their employment was terminated and who
are later reemployed and who repay the amount withdrawn, or those
who left City employment prior to January 1, 1978, and who did not
withdraw their contributions and who are later reemployed: $3 multiplied
by the participant's years of service during the original employment
period, plus the participant's years of service during the reemployment
period multiplied by 1.8% of the average monthly earnings during the
best five consecutive years out of the 10 years immediately prior
to retirement or, if such reemployment period is less than 10 years,
1.8% of the average monthly earnings during the best five consecutive
years of the reemployment period or the entire reemployment period
if less than five years.
(6)
For all other participants: 1.8% of the average monthly earnings
during the best five consecutive years out of the 10 years immediately
prior to retirement multiplied by the participant's years of
service. Beginning April 1, 1999, the contribution rate for the City
Employee Retirement Fund members, other than police employees and
elected officials, shall be decreased from 8% of annual salary to
6% of annual salary. This rate of contribution shall be in effect
through April 1, 2001, at which time the rate will be reexamined.
The City, at its discretion, may annually look at and may, at its
discretion, maintain the employee contribution rate at 6% rather than
8% if, in its discretion, it believes that savings related to worker's
compensation premiums related to the fund members warrants reduction
from 8% to 6%.
B.
Optional forms of payment.
(1)
In lieu of the normal form of benefit distribution set forth in Subsection A above, a participant shall have the option to elect to have his retirement benefits paid in one of the following forms:
(a)
Sixty months certain and life annuity. A participant may elect
to receive an actuarial equivalent pension payable for life, with
a stipulation that should he die prior to receiving 60 monthly payments,
the balance of such payments shall continue to be paid to his designated
beneficiaries or, if none, to his estate.
(b)
One hundred twenty months certain and life annuity. A participant
may elect to receive an actuarial equivalent pension payable for life,
with a stipulation that should he die prior to receiving 120 monthly
payments, the balance of such payments shall continue to be paid his
designated beneficiaries or, if none, to his estate.
(c)
Joint and 50% survivor annuity. A participant who is married
on his retirement date may elect to receive an actuarial equivalent
pension for life with payments continuing after his death to his spouse
for the continued lifetime of such spouse, equal to 50% of the reduced
pension payable to him.
(2)
Such optional forms of payment shall be the actuarial equivalents
of the amount of benefit the participant and his beneficiary were
entitled to under the plan.
C.
Benefits upon early retirement. A participant who retires on early
retirement shall be entitled to elect to receive, upon making application
to the City Employees Retirement Fund therefor, either:
(1)
A deferred pension, commencing at normal retirement date computed under the provisions of Subsection A above.
(2)
An immediate pension commencing at the time of early retirement equal to the deferred pension to which he would have been eligible under Subsection B(1)(a) above, had he so elected, reduced to the following percentages:
|
Age of Retirement
|
Percentage
|
|---|---|
|
50
|
55.0%
|
|
51
|
58.0%
|
|
52
|
61.0%
|
|
53
|
64.0%
|
|
54
|
67.0%
|
|
55
|
70.0%
|
|
56
|
73.0%
|
|
57
|
76.0%
|
|
58
|
79.0%
|
|
59
|
82.0%
|
|
60
|
85.0%
|
|
61
|
88.0%
|
|
62
|
91.0%
|
|
63
|
94.0%
|
|
64
|
97.0%
|
|
65
|
100.0%
|
|
NOTE: Interpolated to the completed month.
|
D.
Death benefits.
(1)
In the event of the death of a participant before he becomes entitled
to the pension herein provided for, the total of the contributions
paid into the fund by said participant shall be paid to the beneficiary,
without interest, or his estate, without interest. Payment shall be
made upon request to the City Employees Retirement Fund Board by the
beneficiary or the estate with proof of death submitted at the time
of request.
(2)
In the event of the death of a participant while receiving pension
hereunder, but before the amount of the pension received shall equal
the total amount of contributions paid into the plan, the difference
between the amount received as pension and the amount contributed
to the plan by the deceased participant shall be paid to the beneficiary
without interest, or to the estate without interest. Payment shall
be made upon request to the City Employees Retirement Fund Board by
the beneficiary or the estate with proof of death submitted at the
time of the request.
E.
Termination of employment. If a participant should terminate his employment with the City for any reason other than as provided in § 99-29, he shall be entitled to receive the amount of his employee contributions without interest. If a participant has completed at least 10 years of service prior to terminating his employment with the City for any reason other than as provided in § 99-29, he shall be entitled to receive either the amount of his employee contributions without interest or a deferred pension, commencing at his normal retirement date, as calculated under the provisions of Subsection A above, or early retirement as calculated under the provisions of Subsection C above, and based on service to the date such participant terminated his employment with the City.
[Amended 12-30-1985 by Ord. No. 234B; 6-17-1991 by Ord. No. 380B; 11-21-1994 by Ord. No. 477B; 12-1-1997 by Ord. No. 536B; 8-23-1999 by Ord. No. 576]
A.
Amount of contributions.
(1)
By participants. Each participant shall contribute to the fund by
payroll withholding:
(a)
For participant's who are employed by the police force:
$3 each month.
(b)
For participant's who are serving as Mayor, a member of
Council or Controller of the City of Lock Haven: $8 each month.
(c)
For all other participants: 8% of earnings due to the participant
each pay period.
NOTE: Beginning April 1, 1999, the contribution
rate for the City Employee Retirement Fund members, other than police
employees and elected officials, shall be decreased from 8% of annual
salary to 6% of annual salary. The City, at its discretion, may annually
look at and may, at its discretion, maintain the employee contribution
rate at 6% rather than 8% if, in its discretion, it believes that
savings related to worker's compensation premiums related to
the fund members warrants reduction from 8% to 6%.
(2)
By the City. The City shall annually appropriate and pay into the
fund not less than the minimum obligation as required by the Municipal
Pension Plan Funding Standard and Recovery Act (Act 205 of 1984),[1] as certified to Council of the City by the Chief Administrative
Officer in accordance with Section 304 of the aforesaid Act.[2]
[Amended 3-3-1986 by Ord.
No. 237B]
A.
Designation. The City shall appoint a trustee to hold and invest
the fund in accordance with the terms of a trust agreement between
the City and the trustee. The City may, from time to time, change
the trustee then serving under the trust agreement for another trustee.
B.
Expenses. The fund shall be used to pay benefits as provided in the
plan and to pay such expenses of administering the plan as are permitted
under the provisions of Act 205 of 1984, December 18, 1984, P.L. 1005.[1] No benefits or expenses shall be paid out of the fund
without prior authorization by the Retirement Board.
[1]
Editor's Note: See 53 P.S. § 895.101 et seq.
A.
Amendment. The City shall have the right at any time, and from time
to time, to amend, in whole or in part, any or all of the provisions
of this plan. However, no such amendment shall authorize or permit
any part of the fund (other than such part as is required to pay taxes
and administrative expense) to be used for or diverted to purposes
other than for the exclusive benefit of the participants or their
beneficiaries or estates; no such amendment shall cause any reduction
in the amount theretofore credited to any participant or cause or
permit any portion of the fund to revert to or become the property
of the City.
B.
Termination; discontinuance of contributions. The City shall have
the right at any time to discontinue the contributions hereunder and
to terminate this plan hereby created. In the event of termination
or complete discontinuance of contributions, the trustee shall dispose
of the fund until it is depleted in the following order:
(1)
First, provide for each pensioner who is retired under the terms
of this plan and for whom no annuity contracts have been obtained
which will provide the amount of retirement benefits to which he is
entitled.
(2)
Second, provide for each participant who is eligible for retirement under the terms of § 99-29A of this plan and for whom no annuity contracts have been obtained which will provide the amount of retirement benefits to which he is entitled.
(3)
Third, to provide for each participant who is eligible for retirement under the terms of § 99-29B of this plan or for whom no annuity contracts have been obtained which will provide the amount of retirement benefits to which he is entitled.
(4)
Fourth, distribute any remaining assets of the fund equitably among
the remaining participants.
C.
Irrevocability of contributions. All contributions made to the fund
by the City shall be irrevocable during the existence of the plan
and shall be maintained exclusively for the benefit of the participants
hereunder and at no time will they be returned to or in any manner
used for the benefit of the City, exclusive of such actions that would
be considered investment in nature and conducted within an arm's
length transaction; provided, however, that any contributions in excess
of the amount required under this plan which are paid to the trustee
by reason of clerical or actuarial error may be returned to the City
if all liabilities, contingent as well as fixed, with respect to participants
and their beneficiaries under this plan have been satisfied.
[Amended 2-3-1986 by Ord.
No. 237B; 8-3-1998 by Ord. No. 560B]
A.
Composition. A Board of 11 members, which shall be known and designated
as the "City Employees Retirement Fund Board," and hereinafter referred
to in this article as the "Board," and which shall consist of the
following:
(1)
Four members of the Council of the City of Lock Haven, selected at
their discretion, whose terms of office shall be concurrent with their
terms of office on Council.
(2)
Six employees of the City of Lock Haven, one of whom shall be elected
from each of the following employee subgroups: administration and
finance; police; fire, code and civilian police; streets/parks; sewer;
and water. Each of said members shall be elected by a vote of the
majority of the employees within their respective subgroup and shall
serve for a term of two years or until their successor is elected.
A vacancy occurring during a term shall be filled for the unexpired
term by the election of a successor in the same manner as his predecessor.
(3)
One retired employee of the City of Lock Haven who is a participant
of the plan, who shall be elected by a vote of the majority of the
retired employees who are participants in the plan. Said member shall
serve for a term of two years. A vacancy occurring during a term shall
be filled for the unexpired term by the election of a successor in
the same manner as his predecessor.
B.
Actions. The Retirement Board shall act by a majority of its members
at the time in office, and such action may be taken either by vote
at a meeting or in writing without a meeting, and shall meet at least
annually. The Retirement Board may authorize any one or more of its
members to execute any document or documents on behalf of the Retirement
Board, in which event the Retirement Board shall notify the trustee
in writing of such action and the name or names of its member or members
so designated. The trustee shall thereafter accept and rely upon any
document executed by such member or members as representing the action
of the Retirement Board until the Retirement Board shall file with
the trustee a written revocation of such designation. The Retirement
Board may authorize the Retirement Committee to receive the application
for benefits from the plan, to approve or disapprove the application,
and to notify the trustee of the approval of the application in order
that the trustee might make the payments in accordance therewith.
C.
Records. The Retirement Board shall keep a record of all its proceedings
and acts and shall keep all such books of account, records and other
data as may be necessary for proper administration of the plan. The
Retirement Board shall notify the trustee and the City of any action
taken by the Retirement Board and, when required, shall notify any
other interested person or persons.
D.
Actuarial service. City Council shall engage an accredited actuarial
service which shall present to the City actuarial statements as required
by law as to the sufficiency of the fund in accordance with generally
accepted actuarial standards.
E.
Expenses. Unless otherwise determined by the City, the members of the Retirement Board shall serve without compensation for services as such. Expenses of the Retirement Board not payable pursuant to § 99-32B shall be paid by the City.
F.
Immunity from liability. No member of the Retirement Board shall
incur any liability for any action or failure to act, excepting only
liability for his own gross negligence or wilful misconduct. The City
shall indemnify each member of the Retirement Board against any and
all claims, loss, damages, expense and liability arising from any
action or failure to act pursuant to his actions as a member of the
Retirement Board, except when the same is judicially determined to
be due to the gross negligence or willful misconduct of such member.
A.
City not liable for payment of benefits. The City shall have no liability
for the payment of the benefits under this plan, nor shall the City
have any liability for the administration of the plan or of the funds
or assets paid over to the trustee, and each participant and pensioner
shall look solely to the assets of the trust for any payments or benefits
under the plan.
B.
City's rights to discharge any employee. The establishment of
the plan shall not be construed as conferring any legal rights upon
any employee or any person for continuation of employment, nor shall
it interfere with the rights of the City to discharge any employee
without regard to the effect which such action might have upon him
as a participant in the plan.
C.
Spendthrift clause. The right of any participant or beneficiary to
any benefit, to any payment hereunder or to any separate account shall
not be subject to alienation or assignment. If such participant shall
attempt to assign, transfer or dispose of such right, or should such
right be subjected to attachment, execution, garnishment, sequestration
or other legal, equitable or other process, it shall, ipso facto,
pass to such one or more beneficiaries as may be appointed by the
Retirement Board from among the beneficiaries, if any, theretofore
designated by such participant and the spouse and blood relative of
the participant. However, the Retirement Board in its sole discretion
may reappoint the participant to receive any payment thereafter becoming
due either in whole or in part. Any appointment made by the Retirement
Board hereunder may be revoked by the Retirement Board at any time
and a further appointment made by it.
D.
Delegation of authority by City. Whenever the City, under the terms
of this plan, is permitted or required to do or perform any act or
matter or thing, it shall be done and performed by any officer thereunto
duly authorized by the City.
E.
Construction of agreement. This plan shall be construed according
to the laws of the Commonwealth of Pennsylvania, and all provisions
hereof shall be administered according to the laws of such commonwealth.
F.
Limitation on liability; legal actions; payment of expenses. It is
expressly understood and agreed by each employee who becomes a participant
hereunder that, except for his, its or their wilful neglect or fraud,
neither the City, its officers or agents, nor the trustee, its officers
or agents nor members of the Retirement Board shall be in any way
subject to any suit or litigation or to any legal liability for any
cause or reason or thing whatsoever in connection with this plan or
its operation. In any action or proceeding involving the fund, or
any property constituting part or all thereof or the administration
thereof, the City, the Retirement Board and the trustee shall be the
only necessary parties, and no employees or former employees of the
City or their beneficiaries or any other person having or claiming
to have an interest in the fund or under the plan shall be entitled
to any notice of process. Any final judgment that may be entered in
any such action or proceeding shall be binding and conclusive on the
parties thereto and all persons having or claiming to have any interest
in the fund or under the plan or in the administration of the plan.
[Added 12-17-2001 by Ord.
No. 626B; amended 2-2-2009 by Ord. No. 832]
A.
LEASED EMPLOYEE
LIMITATION YEAR
Definitions. The following words and phrases are hereby introduced
and defined for purposes of this section only:
Effective as of January 1, 1997, any person (other than an
employee of the recipient) who, pursuant to an agreement between the
recipient and any other person ("leasing organization"), has performed
services for the recipient [or for the recipient and related persons
determined in accordance with Code Section 414(n)(6)[1]] on a substantially full-time basis for a period of at
least one year, and such services are under primary direction and
control of the recipient.
The plan year, for purposes of applying the limitations under
the current article.
[1]
Editor's Note: See 26 U.S.C. § 414(n)(6).
B.
Maximum annual benefit.
(1)
General rule. Except as otherwise provided, this plan shall at all
times comply with the provisions of Code Section 415[2] and the regulations thereunder, the terms of which are
specifically incorporated herein by reference. If a benefit payable
to a participant under this plan would otherwise exceed the limit
under Code Section 415, the benefit will be reduced to the maximum
permissible benefit.
[2]
Editor's Note: See 26 U.S.C. § 415.
(2)
Effective date. If there is more than one permissible effective date
for any required change in the Code Section 415(b)[3] provisions, then the change shall be effective as of the
latest permissible effective date; however, any adjustment in the
dollar limit under Code Section 415(b)(1)(A),[4] whether required or permissible, shall take effect automatically
as of the earliest permissible effective date. The "applicable mortality
table" in Revenue Ruling 2001-62 became effective as of December 31,
2002, and shall remain effective through December 31, 2007. The "applicable
mortality table" and "applicable interest rate" after December 31,
2007, is found in Revenue Ruling 2007-67.
(3)
No reduction in accrued benefits. Notwithstanding the above, no change
in the limits under this section shall reduce the benefit of any participant.
(4)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(b),[5] and if the aggregated benefits would otherwise exceed
the limit under Code Section 415(b), then benefits shall be reduced
first under this plan.
[5]
Editor's Note: See 26 U.S.C. § 415(b).
(5)
Mandatory contributions. Participant contributions are annual additions,
and any benefit attributable to participant contributions is not included
in the benefit subject to the limits of Code Section 415(b).[6] This subsection does not apply to contributions "picked
up" in accordance with Code Section 414(h).[7]
(6)
Permissive service credit. Effective as of January 1, 1998, if a
participant makes a purchase of permissive service credit [within
the meaning of Code Section 415(n)[8]] under the plan, the benefit derived from the contributions
made to purchase the service credit shall be treated as part of the
benefit subject to the limitations under this section.
[8]
Editor's Note: See 26 U.S.C. § 415(n).
(7)
Benefit less than $10,000. Effective for plan years beginning before
January 1, 2008, benefits paid to a participant which total less than
$10,000 from all defined benefit plans maintained by the employer
expressed as an annual benefit shall be deemed not to exceed the limitations
of this section, provided that the employer has not at any time maintained
a defined contribution plan in which the participant has participated;
however, in the case of a participant who is not receiving a disability
retirement benefit or a death benefit, with fewer than 10 years of
service, the limitation expressed in this subsection shall be reduced
by 1/10 for each year of service less than 10, but in no event shall
this limitation be less than $1,000. In the event that a participant
has less than 10 years of service with the employer, the limitation
of this subsection shall be reduced by multiplying the otherwise applicable
limitation by a fraction, the numerator of which is the number of
years of service with the employer.
[Added 10-1-2012 by Ord.
No. 911]
C.
Limit on annual additions.
(1)
Annual additions. Except as otherwise provided, annual additions
(which include participant contributions) under this plan shall at
all times comply with the provisions of Code Section 415(c)[9] and the regulations thereunder, the terms of which are
specifically incorporated herein by reference. If an annual addition
would otherwise exceed the limit under Code Section 415(c), the excess
annual addition will be eliminated in accordance with methods permitted
under Revenue Procedure 2008-50 (Revenue Procedure 2006-27 prior to
2009) or its successor.
[9]
Editor's Note: See 26 U.S.C. § 415(c).
(2)
Multiple plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(c),[10] and if the annual additions would otherwise exceed the
limit under Code Section 415(c), annual additions will first be reduced
under the other plan. If there is more than one other plan, annual
additions will first be reduced under the plan with the greatest amount
of annual additions.
[10]
Editor's Note: See 26 U.S.C. § 415(c).
(3)
Effective date. The limits under which Code Section 415(c)[11] are adjusted periodically in accordance with changes in
the law or cost-of-living adjustments without the need for a plan
amendment. If there is more than one permissible effective date for
any required change relating to Code Section 415(c), then the change
shall be effective as of the earliest permissible effective date.
[11]
Editor's Note: See 26 U.S.C. § 415(c).
(4)
Code Section 415 compensation. For the purposes of the annual additions
limitations of Code Section 415(c)[12] and this section, "compensation" includes wages within
the meaning of Section 3401(a)[13] (for the purpose of income tax withholding at the source),
plus amounts that would be included in wages but for an election under
Code Sections 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 401(k) or
457(b).[14] However, any rules that limit the remuneration included
in wages based on the nature or location of the employment or the
services performed [such as the exception for agricultural labor in
Section 3401(a)(2)[15]] are disregarded for this purpose. For limitation years
beginning prior to January 1, 1998, elective deferrals under Code
Section 402(g)[16] and amounts elected under Sections 125(a), 132(f)(4),
401(k) or 457(b)[17] are excluded from "compensation."
[Added 10-1-2012 by Ord.
No. 911]
[12]
Editor's Note: See 26 U.S.C. § 415(c).
[13]
Editor's Note: See 26 U.S.C. § 3401(a).
[14]
Editor's Note: See 26 U.S.C. §§ 125(a), 132(f)(4),
402(e)(3), 402(h)(1)(B), 401(k) and 457(b).
[15]
Editor's Note: See 26 U.S.C. § 3401(a)(2).
[16]
Editor's Note: See 26 U.S.C. § 402(g).
[17]
Editor's Note: See 26 U.S.C. § 125(a), 132(f)(4),
401(k) and 457(b).
D.
Leased employees and independent contractors. Leased employees and
independent contractors are not eligible to participate in this plan.
Any person whom the Board of Supervisors does not regard as being
an employee shall not be eligible to participate.
E.
Limit on compensation. Compensation (for purposes of calculating
monthly earnings) is subject to the limitation under Code Section
401(a)(17),[18] which is $230,000 for the plan year beginning in 2008.
The limit is automatically adjusted periodically, without formal amendment,
for changes in the law and cost-of-living adjustments under Code Section
401(a)(17). As of January 1, 1994, this amount was $150,000, and at
all times the plan requires compliance with Section 401(a)(17).
[18]
Editor's Note: See 26 U.S.C. § 401(a)(17).
G.
Vesting upon plan termination. Upon the termination of this plan,
or complete discontinuance of contributions [within the meaning of
pre-ERISA Code Section 401(a)(7)] to this plan, each employee, as
of the date of such termination or discontinuance, shall become vested
to the extent that the plan is funded.
H.
Required distributions.
(1)
Notwithstanding anything to the contrary herein contained, all distributions
under the plan shall be made in accordance with Section 401(a)(9)
of the Code.[20] Any distribution option under the plan which is inconsistent
with Section 401(a)(9) of the Code shall be inoperative to the extent
of such inconsistency. Effective as of January 1, 2003, all distributions
under the plan shall be made in accordance with Regulation § 1.401(a)(9)-1
through § 1.401(a)(9)-9. For calendar years prior to 2003,
distributions were made in accordance with the 1987 proposed regulations
[under Section 401(a)(9) of the Code], except to the extent that those
proposed regulations were overridden by amendments to the Code. Nothing
in this section gives any participant, retired participant, beneficiary,
or alternate payee the right to elect any time or method of a distribution
not provided for in another section of the plan.
[20]
Editor's Note: See 26 U.S.C. § 401(a)(9).
(2)
Required beginning date.
(a)
Participant's required beginning date. Effective as of
January 1, 1997, distribution to a participant must be made or commenced
no later than the first day of April following the calendar year in
which such participant attains age 70 1/2 or retires, whichever
is later.
(b)
Death of participant before distribution begins. If the participant
dies before distributions begin, the participant's entire interest
will be distributed, or begin to be distributed, no later than as
follows:
[1]
If the participant's surviving spouse is the participant's
sole designated beneficiary, then distributions to the surviving spouse
will begin by December 31 of the calendar year immediately following
the calendar year in which the participant died, or by December 31
of the calendar year in which the participant would have attained
age 70 1/2, if later.
[2]
If the participant's surviving spouse is not the participant's
sole designated beneficiary, then distributions to the designated
beneficiary will begin by December 31 of the calendar year immediately
following the calendar year in which the participant died.
[3]
If there is no designated beneficiary as of September 30 of
the year following the year of the participant's death, the participant's
entire interest will be distributed by December 31 of the calendar
year containing the fifth anniversary of the participant's death.
[4]
If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse begin, this Subsection H(2)(b), other than Subsection H(2)(b)[1], will apply as if the surviving spouse were the participant.
(3)
Distributions, if not made in a lump sum, shall be made over a period
not exceeding the lifetime of the participant or the joint lifetimes
of the participant and his designated beneficiary, or over a period
certain not extending beyond the life expectancy of the participant
or the joint life expectancies of the participant and his beneficiary.
(4)
If the participant's interest is to be paid in the form of annuity
distributions under the plan, payments under the annuity shall satisfy
the following requirements:
(a)
The annuity distributions must be paid in periodic payments
made at intervals not longer than one year;
(b)
The distribution period must be over a life (or lives) or over
a period certain not longer than a life expectancy (or joint life
and last survivor expectancy) described in Section 401(a)(9)(A)(ii)
or Section 401(a)(9)(B)(iii) of the Code,[21] whichever is applicable;
[21]
Editor's Note: See 26 U.S.C. § 401(a)(9)(A)(ii)
and (a)(9)(B)(iii).
(c)
For plan years beginning prior to 2003, the life expectancy
(or joint life and last survivor expectancy) for purposes of determining
the period certain shall be determined without recalculation of life
expectancy;
(d)
Once payments have begun over a period certain, the period certain
may not be lengthened even if the period certain is shorter than the
maximum permitted;
(e)
Payments must either be nonincreasing or increase only as in
accordance with Treasury regulations.
I.
Domestic relations order. All rights and benefits, including elections,
provided to a participant in this plan may be subject to the rights
afforded to any alternate payee pursuant to a domestic relations order
as provided by applicable state law.
J.
Direct rollover.
(1)
This section applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this section,
a distributee may elect, at the time and in the manner prescribed
by the plan administrator, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
(2)
For purposes of this section, the following definitions shall apply:
(a)
Eligible rollover distribution.
[1]
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:
[a]
Any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or
life expectancy) of the distributee or the joint lives (or joint life
expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more;
[c]
The portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized appreciation
with respect to employer securities); and
[d]
Effective as of January 1, 2002, any hardship distribution.
[2]
Effective as of January 1, 2002, Subsection J(2)(a)[1][c] does not
apply to any after-tax participant contributions that are paid to
an individual retirement account or annuity described in Code Section
408(a) or (b),[23] or to a qualified defined contribution plan described
in Code Section 401(a) or 403(a) or, effective as of January 1, 2007,
any 403(b)[24] annuity contract that agrees to separately account for
amounts so transferred, 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.
(b)
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.[25] However, in the case of an eligible rollover distribution
to the surviving spouse, prior to January 1, 2002, an "eligible retirement
plan" was an individual retirement account or individual retirement
annuity. Effective as of January 1, 2002, an eligible retirement plan
includes an annuity contract described in Code Section 403(b)[26] and an eligible plan under Code Section 457(b)[27] 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 January
1, 2008, a Roth IRA is an eligible retirement plan.
(c)
A "distributee" includes an employee or former employee. In
addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse or
former spouse who is the alternate payee under a qualified domestic
relations order, as defined in Code Section 414(p),[28] are distributees with regard to the interest of the spouse
or former spouse.
[28]
Editor's Note: See 26 U.S.C. § 414(p).
(d)
A "direct rollover" is a payment by the plan to the eligible
retirement plan specified by the distributee.
L.
Mandatory lump-sum distributions. Effective as of January 1, 2006,
if, prior to attaining age 62, a participant is entitled to a lump-sum
distribution in excess of $1,000, his or her vested interest shall
be transferred to an individual retirement account (IRA), unless the
participant elects to receive a cash distribution.
M.
Heroes Earnings Assistance Relief Tax Act (HEART Act). Effective
for deaths occurring on or after January 1, 2007, if a participant
dies while performing qualified military service [as defined in IRC
§ 414(u)[30]], the survivors of the participant are entitled to any
additional benefits (other than benefit accruals relating to the period
of qualified military service) provided under the plan had the participant
resumed and then terminated employment on account of death.
[Amended 10-1-2012 by Ord. No. 911]
[30]
Editor's Note: See 26 U.S.C. § 414(u).
N.
Nonspouse beneficiaries. Effective as of January 1, 2007, if a beneficiary
who is not a surviving spouse is entitled to receive what would otherwise
be an eligible rollover distribution, the beneficiary may, in accordance
with Code Section 402(c)(11),[31] make a trustee-to-trustee transfer of that amount to an
IRA or individual retirement annuity (other than an endowment contract),
provided that:
(1)
The transfer is made not later than the end of the fourth year after
the year of the participant's death; and
[31]
Editor's Note: See 26 U.S.C. § 402(c)(11).
O.
Actuarial assumptions for optional forms of benefit. To determine
the actuarial equivalence of optional forms of benefit, the UP-84
Mortality Table and PBGC immediate lump-sum rate as of the first day
of the plan year in which the distribution occurs (i.e., January)
shall be used.
[Added 10-1-2012 by Ord.
No. 911]
P.
Vesting upon attainment of normal retirement age. The participant
shall be one-hundred-percent vested in his normal retirement benefit
upon the attainment of normal retirement age.
[Added 10-1-2012 by Ord.
No. 911]
Q.
Vesting upon plan termination. Effective for plan years beginning
prior to January 1, 2008, upon the termination of this plan, or complete
discontinuance of contributions [within the meaning of pre-ERISA Code
Section 401(a)(7)] to this plan, each employee (who is not already
one-hundred-percent vested), as of the date of such termination or
discontinuance, shall become vested to the extent that the plan is
funded.
[Added 10-1-2012 by Ord.
No. 911]
R.
Retroactive effective date for certain Internal Revenue Code provisions.
Notwithstanding the effective date of this section, any provision
required by EGTRRA is effective as of January 1, 2002, and any provision
that is required by GUST is effective as of the effective dates set
forth herein.
[Added 10-1-2012 by Ord.
No. 911]
S.
Differential wage payments. Effective as of January 1, 2009, to the
extent required by the Heroes Earnings Assistance Tax Relief Tax Act
of 2008 (HEART Act), differential wage payments shall be included
in Code Section 415[33] compensation.
[Added 10-1-2012 by Ord.
No. 911]
[33]
Editor's Note: See 26 U.S.C. § 415.
T.
Intent
to comply with Internal Revenue Code. The employer intends that this
plan shall meet all the pertinent requirements established for a governmental
plan [as defined in Internal Revenue Code § 414(d) under
Internal Revenue Code § 401(a), as amended], and the plan
shall be interpreted, wherever possible, to comply with the terms
of said code and all formal regulations and rulings pertinent to the
plan and trust agreement.
[Added 10-16-2017 by Ord.
No. 974]
U.
Full vesting
at normal retirement age. A participant's normal retirement benefit
shall be 100% vested upon attainment of his normal retirement age.
[Added 10-16-2017 by Ord.
No. 974]
V.
Forfeitures.
Forfeitures shall not be used to increase the benefits of any participants
in this plan, but may be used to reduce employer contributions to
the plan.
[Added 10-16-2017 by Ord.
No. 974]
W.
Exclusive
benefit. The plan in maintained for the exclusive benefit of its participants
and beneficiaries.
[Added 10-16-2017 by Ord.
No. 974]
X.
Windsor
Case. Effective June 23, 2013, the terms "spouse," "husband," "wife,"
"widow" and "widower" shall include individuals married to persons
of the same sex it the individuals are legally married under state
law. Also, where the term "widow" appears, it shall be read to include
"widower."
[Added 10-16-2017 by Ord.
No. 974]
