[Ord. No. 92-80 §§1 —
3, 12-16-1992; Ord. No.
01-57 §7, 10-17-2001; Ord. No. 02-71 §3, 12-18-2002; Ord. No. 08-71 §1, 12-17-2008]
A.
Notwithstanding
any other provision of the Plan, the annual benefit to which a Participant
is entitled under the Plan shall not, in any limitation year, be in
an amount which would exceed the applicable limitations under Section
415 of the Internal Revenue Code and regulations thereof, including
effective July 1, 2007, the final regulations thereunder issued April
5, 2007, as such Internal Revenue Code Section and regulations apply
to plans maintained by governmental entities. As of January first
(1st) of each calendar year commencing on or after January 1, 2002,
the dollar limitations as determined by the Commissioner of the Internal
Revenue for that calendar year shall become effective as the maximum
permissible dollar amount of benefit payable under the Plan during
the limitation year ending within that calendar year.
The application of the provisions of this Article shall not
cause the maximum permissible benefit for any Participant to be less
than the Participant's accrued benefit under all the defined plans
of the Employer or a predecessor employer as of the end of the last
limitation year beginning before July 1, 2007, under provisions of
the plans that were both adopted and in effect before April 5, 2007.
The preceding sentence applies only if the provisions of such defined
benefit plans that were both adopted and in effect before April 5,
2007, satisfied the applicable requirements of statutory provisions,
regulations and other published guidance relating to Section 415 of
the Internal Revenue Code in effect as of the end of the last limitation
year beginning before July 1, 2007, as described in Section 1.425(a)-1(g)(4)
of the Income Tax Regulations.
B.
The
increased limitations of Section 415(b) of the Internal Revenue Code
effective on and after January 1, 2002, shall apply solely to employees
participating in the Plan who have one (1) hour of service on or after
January 1, 2002.
C.
The
term "limitation year" is the 12-month period used
for application of the limitations under Section 415 of the Internal
Revenue Code and, unless a different 12-month period has been elected
by the Employer in accordance with rules or regulations issued by
the Internal Revenue Service or the Department of Labor, shall be
the calendar year.
D.
For
the purposes of applying the adjustments required under Section 415(b)(2)
of the Internal Revenue Code, the "applicable interest rate" is the
annual rate of interest on 30-year Treasury Securities as specified
by the Commissioner of Internal Revenue for the second (2nd) month
preceding the first (1st) day of the calendar year in which the determination
is made and "applicable mortality table" is the table prescribed by
the Secretary of the Treasury as described in Section 415(b)(2)(E)(v)
of the Internal Revenue Code. Effective January 1, 2008, the "applicable
interest rate" is the interest rate prescribed under Section 417(e)(3)(C)
of the Internal Revenue Code as it reads on or after the first (1st)
day of the 2008 Plan Year for the second (2nd) month preceding the
first (1st) day of the calendar year in which the determination is
made.
[Ord. No. 92-80 §§1 —
3, 12-16-1992; Ord. No.
01-57 §8, 10-17-2001; Ord. No. 02-71 §4, 12-18-2002]
A.
The dollar limitation under Section 140.190(A) shall be modified as follows to reflect early or late commencement of benefits.
1.
If the Participant's Benefit commences prior to age sixty-two (62), the dollar limitation shall be the actuarial equivalent of Section 140.190(A) above, payable at age sixty-two (62), as determined above, reduced for each month by which benefits commence before the month in which the Participant attains age sixty-two (62). The interest rate for determining actuarial equivalence shall be the mortality and interest rate assumptions under the Plan applicable to early retirement or an assumption of five percent (5%) per year and the table prescribed by the Secretary of the Treasury under Code Section 417(e)(3) of the Internal Revenue Code, whichever factors result in the lowest dollar limitation. Effective January 1, 1995, the applicable mortality table is the 1983 Group Annuity Mortality Table converted to a unisex basis by assuming fifty percent (50%) males. Effective for distributions on and after December 31, 2002, and notwithstanding any other provisions of the Plan to the contrary, the Applicable Mortality Table is the table prescribed in Rev. Rul. 2001-62. Provided however, that for limitation years ending before January 1, 2002, the reduction under this Subsection shall not reduce the dollar limitation below:
a.
Seventy-five thousand dollars ($75,000.00) if the benefit begins
at or after age fifty-five (55) or
b.
If the benefit begins before age fifty-five (55), the actuarial equivalent
of the seventy-five thousand dollars ($75,000.00) limitation at age
fifty-five (55).
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Effective January 1, 1987, in the case of a Police Officer or
firefighter who has completed fifteen (15) years of service, this
Subsection shall not reduce the dollar limitation below fifty thousand
dollars ($50,000.00) and effective January 1, 1997, shall not apply.
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Any increase in the dollar limitation determined under this
Subsection shall not reflect mortality decrement to the extent benefits
will not be forfeited on the death of the Participant. If any benefits
are forfeited upon death, the full mortality decrement is taken into
account.
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2.
If the Participant's Benefit commences after age sixty-five (65), the dollar limitation shall be the Actuarial Equivalent of Section 140.190(A) above payable at age sixty-five (65), based on the interest rate and mortality assumptions under the Plan or on an assumption of five percent (5%) per year and the table prescribed by the Secretary of the Treasury under Code Section 417(e)(3) of the Internal Revenue Code, whichever factors result in the lowest dollar limitation. Effective January 1, 1995, the applicable mortality table is the 1983 Group Annuity Mortality Table converted to a unisex basis by assuming fifty percent (50%) males. Effective for distribution on and after December 31, 2001, and notwithstanding any other provision of the Plan to the contrary, the Applicable Mortality Table is the table prescribed in Rev. Rul. 2001-62. For this purpose mortality between age sixty-five (65) and the age at which benefits commence shall be ignored.
[Ord. No. 92-80 §§1 —
3, 12-16-1992; Ord. No.
01-57 §9, 10-17-2001]
A.
Dollar Limitation. If a Participant is credited with fewer than ten (10) years of Plan participation, the dollar limitation of Section 140.190(A), as it may be adjusted in accordance with Section 140.200, shall be reduced by multiplying such amount by a fraction not to exceed one (1.0), the numerator of which is the Participant's number of years of participation (or part thereof) and the denominator of which is ten (10).
B.
Limitation on Compensation and Benefits. If a Participant is credited with fewer than ten (10) Years of Service with the City, the ten thousand dollar ($10,000.00) minimum annual Benefit described in Section 140.190(A) shall be reduced by multiplying such amounts by a fraction not to exceed one (1.0), the numerator of which is the Participant's number of Years of Service and the denominator of which is ten (10).
