City of Overland, MO Pensions

Editor's Note: Former Section 125.160, Disability Retirement, was removed 12-13-2021 by Ord. No. 2021-31. See now Section 125.170, Disability.

Section 125.170 Disability.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021[1]]

A participant with a disability shall be considered to have terminated his/her employment with the City as of the date his/her disability commenced. He/she shall be entitled only to those benefits, if any, determined as of such date, or to a return of his/her accumulated contributions.

If a participant with a disability is reemployed by the City within two (2) years of the date his/her disability commenced, his/her credited service to the date of his/her disability but excluding the entire period of his/her disability, shall be restored in full, provided that he/she does not again terminate his/her employment, except for retirement, during the five-year period following his/her reemployment. If such a participant received a distribution of his/her accumulated contributions, he/she must repay the accumulated contributions with credited interest to have his/her credited service restored.

Editor's Note: Ord. No. 2021-31 also changed the title of this Section from "Review of Disability Benefits" to "Disability."

Section 125.180 Suspension of Benefits.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

If any participant is reemployed by the City or is elected as a City Official after payment of retirement benefits has begun, and such participant is accruing additional benefits under the plan, payment of the retirement benefits for which he/she may already be eligible because of prior participation shall be discontinued until he/she again retires or ceases accruing benefits. At such time, payment of benefits shall resume under the same optional form and in the amount determined under Section 125.120, taking into account any additional accrual of benefits, but in no event less than the amount received before suspension of benefits. If, however, a participant is elected or appointed as a City Official and elects to waive his/her participation in the plan pursuant to Section 125.020, said participant's retirement benefits for which he/she is already eligible shall continue in the same manner, and no new benefits shall accrue. For the purpose of this Section, the term "City Official" shall refer only to the Mayor and any member of the City Council.

Section 125.190 Death Benefits.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2015-20 §1, 11-9-2015; Ord. No. 2021-31, 12-13-2021]

If a participant dies after retirement or prior to retirement but after completing sufficient credited service to be eligible for a normal retirement date pursuant to Section 125.110 or an early retirement date pursuant to Section 125.130, then his/her surviving spouse shall receive a monthly benefit until the earlier of the spouse's death or remarriage in an amount equal to fifty percent (50%) of the monthly benefit the participant would have received had the participant retired on the day preceding his/her death or, if he/she retired prior to his/her death, was receiving or was entitled to receive as of the date of his/her death. If monthly payments are to be made to a surviving spouse on account of the death of a participant prior to retirement, then at the time the first monthly payment is made, the spouse also shall receive a payment equal to the total of all contributions which the participant made pursuant to Section 125.090 prior to April 1, 2017, reduced by any benefits previously received, without interest. Payment of such benefits shall commence as of the first day of the month immediately following the participant's death.

If a participant described in Subsection (A) has no spouse at the time of his/her death or payments to his/her surviving spouse under Subsection (A) terminate because of the death of such spouse, and at such time, the participant has children under the age of eighteen (18), the monthly benefits described in the preceding Subsection (A), which his/her surviving spouse would have received if he/she had a spouse or his/her spouse had not died, shall be made in equal shares to such children who are under the age of eighteen (18) at the date of the participant's death. If the participant did not have a surviving spouse, then at the time the first monthly payment is made, the children also shall receive a payment equal to the total of all contributions which the participant made pursuant to Section 125.090 prior to April 1, 2017, reduced by any benefits previously received, without interest. Payment of monthly benefits shall continue to such a child until the earlier of the child's death, marriage, or attainment of age eighteen (18). Such child's share of each monthly payment, as of the first day of the month following the earlier of his/her death, marriage, or attainment of age eighteen (18), shall be divided equally among the other children of the participant who are under age eighteen (18) at such time. If multiple children receive payments under this Section on account of a participant's death, the payments shall cease as of the earlier of the death, marriage, or attainment of age eighteen (18) of the child of the participant who is the last to die, marry or attain age eighteen (18). Payments for the benefit of a minor child shall be made to the legal guardian or court appointed conservator for such child, as the case may be.

If a participant dies prior to retirement without completing sufficient credited service to be eligible for a normal retirement date pursuant to Section 125.110 or an early retirement date pursuant to Section 125.130 and, at the time of his/her death, has no spouse but has children under the age of eighteen (18), then a payment equal to the total of all accumulated contributions, without interest, shall be paid in equal shares to such surviving children who are under the age of eighteen (18) at the date of the participant's death. Payments for the benefit of a minor child shall be made to the legal guardian or court appointed conservator for such child, as the case may be.

If a participant dies prior to retirement without completing sufficient credited service to be eligible for a normal retirement date pursuant to Section 125.110 or an early retirement date pursuant to Section 125.130 and he/she is not survived by either a spouse or any children under the age of eighteen (18), then a payment equal to the total of all accumulated contributions, without interest, shall be paid to the participant's designated beneficiary. If payments to a participant's spouse and/or a participant's children under Subsections (A) and (B) terminate because of death of the spouse and/or children prior to the payment of all of the accumulated contributions, then the amount of the remaining participant's accumulated contributions shall be paid to the beneficiary.

The monthly survivor annuity benefit provided in this Section shall not apply in this case of a retiree who has elected an alternative form of benefit under Section 125.240. If any accumulated contributions remain after payment has been made to the participant and the contingent annuitant under Section 125.240, then the accumulated contributions, reduced by any benefits previously received, shall be paid without regard to the election of an alternative form of benefit.

All eligible employees shall designate a beneficiary or beneficiaries on a form furnished by the board for that purpose. The participant may from time to time change the beneficiary (but only among those mentioned in the definition of "beneficiary" in Section 125.020) by written notice on the form provided by the board and received by the board prior to the death of the participant, and upon receipt by the board of such change, the rights of all previously designated beneficiaries to receive any benefit under the plan shall cease. In the event any participant dies without having designated a beneficiary, or in the event any participant dies but is the survivor of all designated beneficiaries, then the benefits payable under this Section shall be paid to the participant's descendants per stirpes and if there are no descendants then living, such payment shall be made to the estate of the participant.

A participant who dies on or after January 1, 2007, while performing qualified military service will be deemed: (a) to have resumed employment with the City as of the day preceding the date of his or her death; and (b) to have terminated employment on the date of his or her death. For purposes of this Section, the term "qualified military service" means any service in the uniformed services (as defined in Chapter 43 of Title 38, United States Code) by any individual if such individual is entitled to USERRA reemployment rights under such Chapter with respect to such service.

Section 125.200 Benefit Adjustments.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

The retirement benefits of participants who retire on or after November 1, 1992, shall be annually adjusted for cost-of-living increases or decreases. Adjustments shall be made to the first benefit payments which are made after May 15 of each plan year commencing with the benefit payments to be made after May 15, 1993. Benefits shall be increased or decreased by sixty percent (60%) of the change in the Consumer Price Index for all St. Louis metropolitan area consumers, as published by the Department of Labor Statistics, for the immediately preceding calendar year. The maximum adjustment shall not exceed three percent (3%) for a plan year. In no event shall a participant's benefits under this Section be reduced to less than the amount of benefits payable to a participant on the date of his/her retirement or, in the event he/she dies before retirement, his/her death. Benefits shall be adjusted under this Section without regard to the sixty-percent limitation of Section 125.120. The benefits of a participant who retires prior to age sixty-two (62) shall not be subject to adjustment under this Section until the first day of the plan year immediately following the plan year in which the participant attains age sixty-two (62). The benefits payable to a beneficiary or beneficiaries of a deceased participant shall not be subject to adjustment under this Section until the first day of the plan year immediately following the plan year the participant would have attained age sixty-two (62) had he/she survived.

Section 125.210 Benefits on Termination Other Than Retirement or Death.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

If a participant has completed at least five (5) years of credited service prior to his/her normal retirement date and terminates employment, he/she may withdraw his/her accumulated contributions from the Retirement Fund and receive credited interest thereon but forfeit his/her right to any other benefit under this plan, or he/she may leave his/her accumulated contribution in the Retirement Fund and shall be eligible to receive a deferred vested retirement benefit commencing on the first day of the month following his/her normal retirement date determined in accordance with the vesting schedule contained in Section 125.230; or if the participant qualifies for early retirement as described in Section 125.130, the participant shall be eligible to receive an actuarially reduced deferred vested retirement benefits under which payment shall commence no sooner than the first day of the month following his/her early retirement date and no later than the first day of the month following his/her normal retirement date.

Section 125.220 Section 415 Limitations.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2013-05 §2, 1-14-2013; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2017-05, 3-13-2017; Ord. No. 2021-31, 12-13-2021]

This Section applies effective for limitation years beginning after December 31, 1994, regardless of whether any participant is or has ever been a participant in another qualified plan maintained by the employer. If any participant is or has ever been a participant 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(1)(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 participant's benefits.

Maximum Benefit. The annual benefit otherwise payable to a participant at any time will not exceed the maximum permissible amount. If the benefit the participant 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 participant who has not attained normal retirement age shall be applied to the actuarial equivalent of the participant's accrued benefit otherwise payable under the plan at normal retirement age, based on the participant's applicable completed years of benefit service to date.

Treatment Of Employee Contributions. If a participant 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 125.220(A)(1) and 125.220(B)(2).

This Section applies if any participant 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.

More Than One (1) Defined Benefit Plan. If a participant is, or has ever been, covered under more than one (1) employer-maintained defined benefit plan, the sum of the participant's annual benefits from all such defined benefit plans may not exceed the maximum permissible amount. A participant's benefits in this plan shall be limited to an amount whereby the participant'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.

Multiple Plan Fraction. For limitation years beginning before January 1, 2000, if the employer maintains one (1) or more qualified defined contribution plans covering any participant 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 participant's defined contribution fraction and defined benefit fraction cannot exceed one (1.0) in any limitation year, as follows:

The annual addition that may be credited to the participant's account under the defined contribution plan for a limitation year will be reduced so the one (1.0) limit will not be exceeded. No participant who is or was a participant 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.

For purposes of Subsection (B)(2)(a), the Code Section 415(e) aggregated limitation is one (1) 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.

Subsection (B)(2)(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 participants [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.

TRA '86 Transition Rule. If an individual was a participant 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 Chapter 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.

The maximum annual addition made to a participant'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 125.220(C)(1) or the compensation limitation set forth in Section 125.220(C)(2), as adjusted in the remainder of this Section, as follows:

Dollar Limitation. For limitation years beginning prior to January 1, 1995, the dollar limitation is one-fourth (1/4) 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).

Compensation Limitation. The compensation limitation is an amount equal to twenty-five percent (25%) of the participant's Section 415 compensation for the limitation year. 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.

Adjustments to maximum annual addition. In applying the limitation on annual additions set forth herein, the following adjustments must be made:

Short Limitation Year. In a limitation year of less than twelve (12) months, the defined contribution dollar limitation in Section 125.220(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).

Plans with different anniversary dates. If a participant 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 participant's accounts in the other plans for such limitation year.

Plans with the same anniversary date. If a participant participates in multiple defined contribution plans sponsored by the employer which have the same anniversary date and plan year, then:

If only one (1) of the plans is subject to Code Section 412, annual additions will first be credited to the participant's accounts in the plan so subject; and

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 participant's account, multiplied by the ratio that the annual additions which would be credited to a participant's accounts hereunder without regard to the limitations in Section 125.220(C) bears to the annual additions for all plans described in this Section; or

(b)

Be reduced by the annual additions credited to the participant's accounts in the other plans for such limitation year.

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.

Adjustment For Excessive Annual Additions. If, for any limitation year beginning prior to July 1, 2007, the annual additions allocated to a participant's account exceeds the maximum amount permitted under Section 125.220(C) above because of an allocation of forfeitures, a reasonable error in estimating a participant'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 participant's account will be adjusted as follows in order to reduce the excess annual additions:

For plan years beginning on or after July 1, 2007, the employer will follow the rules of any Employee Plans Compliance Resolution System (EPCRS) that is issued by the Internal Revenue Service.

For plan years beginning prior to July 1, 2007, the employer will utilize the following procedures:

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.

Reallocation In The Current Year. After the return of contributions and the distribution of gains specified in Subsection (C)(5)(b)(1) above have been made, and prior to the creation of a Section 415 Suspense Account as set forth in Subsection (C)(5)(b)(3) below, any excess will be reallocated to all participants who have not yet attained their maximum annual addition. If necessary, the administrator will repeat the reallocation until all participants have reached their maximum annual addition.

(3)

Remaining Excess. If an excess still remains in a participant's account, then:

(a)

If the participant 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 participant; and

(b)

If the participant is not employed by the employer at the end of a limitation year, the excess cannot be distributed to the participant 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 participants in the next limitation year (and each succeeding limitation year if necessary).

(4)

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 participants' 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 participants or former participants.

Definitions. As used in this Section 125.220, and for all other purposes of the plan, the following words and phrases will have the following meanings:

ANNUAL ADDITIONS

The sum of the following amounts credited to a participant's account for the limitation year:

Employer contributions;

Employee contributions;

Forfeitures;

Amounts allocated, after March 31, 1984, to an individual medical account, as defined in Code Section 415(1)(2), which is part of a pension or annuity plan maintained by the employer;

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. Notwithstanding the foregoing, a participant's annual additions do not include his or 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; and

Amounts allocated, in taxable years beginning after April 1, 1980, under a simplified employee pension.

Annual additions shall not include any repayment of contributions (including interest thereon) to this plan pursuant to the provisions of Section 125.060 by reason of the application of Code Section 415(k)(3).

ANNUAL BENEFIT

A retirement benefit under the plan that is payable annually in the form of a straight life annuity.

Actuarial Adjustments To Annual Benefit. Except as otherwise provided in Subsection (1)(b) 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 Section 415 as follows:

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.

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 125.020, and the annuity benefit computed using a five percent (5%) interest rate and the applicable mortality table in Section 125.020. 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 participant (or, in the case of a qualified preretirement survivor annuity, the life of the surviving spouse), or decreases during the life of the participant merely because of:

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

DEFINED BENEFIT DOLLAR LIMITATION AND DEFINED BENEFIT COMPENSATION LIMITATION

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 125.020 will be substituted for "a five percent (5%) interest rate" in the preceding sentence.

Circumstances Where No Adjustment Is Required. No actuarial adjustment to the annual benefit is required for:

The value of a qualified joint and survivor annuity;

Benefits that are not directly related to retirement benefits (such as the qualified disability benefit, preretirement death benefits, and post-retirement medical benefits); and

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.

The term "defined benefit dollar limitation" means one hundred sixty thousand dollars ($160,000.00), as adjusted effective January l 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 participant's highest average compensation, payable in the form of a straight life annuity.

DEFINED BENEFIT FRACTION

A fraction, the numerator of which is the sum of the participant'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 participant 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 participant was a participant 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 participant 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.

DEFINED CONTRIBUTION FRACTION

A fraction, the numerator of which is the sum of the annual additions to the participant'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 participant'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).

Determination Of Maximum Aggregate Amount. The maximum aggregate amount set forth in paragraph (e) in any limitation year is the lesser of:

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

Thirty-five percent (35%) of the participant's compensation for such year.

No Recomputation 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.

Transition Rule. If the employee was a participant 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 one (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 one (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.

HIGHEST AVERAGE COMPENSATION

A participant's average Code Section 415 compensation for the three (3) consecutive years of service or one-year periods of service with the employer that produces the highest average. If a participant has separated from service, the participant'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.

MAXIMUM PERMISSIBLE AMOUNT

The lesser of the defined benefit dollar limitation or the defined benefit compensation limitation (both adjusted where required, as provided in Subsection (1) and, if applicable, in Subsection (2) or (3) below).

Service Adjustment. If the participant has fewer than ten (10) years of participation in the plan, the defined benefit dollar limitation shall be multiplied by a fraction:

The numerator of which is the number of years (or part thereof) of participation in the plan; and

The denominator of which is ten (10). In the case of a participant 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:

The numerator of which is the number of years (or part thereof) of service with the employer; and

ELIGIBLE ROLLOVER DISTRIBUTION

The denominator of which is ten (10).

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 participant 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 participant 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 participant's number of years of service or one-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 participant participated (for these purposes, voluntary or involuntary employee contributions under a defined benefit plan are treated as a separate defined contribution plan).

Cost-Of-Living Adjustment. Effective for limitation years beginning after December 31, 1994, if the annual benefit payable to a terminated participant who has not received a complete distribution of his or 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).

PROJECTED ANNUAL BENEFIT

The annual benefit to which the participant would be entitled assuming:

The participant will continue employment until normal retirement age (or current age, if later); and

The participant's compensation for the current limitation year and all other relevant factors used to determine benefits will remain constant for all future limitation years.

TRA '86 ACCRUED BENEFIT

A participant'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 participant'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.

YEAR OF PARTICIPATION

A participant 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:

The participant 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

The participant is included as a participant 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 participant will equal the amount of benefit accrual service credited to the participant for such accrual computation period. A participant 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 participant 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-month period.

Notwithstanding any provision of this plan to the contrary, effective for limitation years beginning on or after January 1, 1975, the provisions of Code Section 415 and the Treasury Regulations issued thereunder as applicable to governmental retirement plans are incorporated by reference.

Section 125.230 Vesting of Benefits.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

The deferred vested retirement benefit shall be a percentage, as shown in the table, of full retirement benefits computed in the same manner as normal retirement benefits pursuant to Section 125.120 but based upon his/her average compensation and credited service as of the date of his/her termination.

Credited Service Years	Vested Percentage of Accrued Benefits
Less than 5	0%
5	25%
6	30%
7	35%
8	40%
9	45%
10	50%
11	60%
12	70%
13	80%
14	90%
15 or more	100%

A participant shall not be entitled to receive retirement benefits under more than one (1) of the foregoing provisions of this Chapter. Should a participant be discharged from employment because of embezzlement, fraud, or dishonesty or be convicted of a felony listed in Section 105.669.3, RSMo., committed in direct connection with or directly related to such participant's duties as an employee, he/she shall not be entitled to receive retirement benefits under the plan regardless of his/her age and service on the date of his/her discharge.

Section 125.240 Optional Form of Pension.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

A participant may elect to have retirement benefits paid to him/her during his/her lifetime in a reduced amount with benefits to be continued to be paid after his/her death to his/her designated contingent annuitant. A designated contingent annuitant shall be one (1) person who shall be a spouse, a child, or a lineal descendant of the participant. The participant, at the time of his/her retirement, or earlier, shall make the election. Should the participant fail to make such election, it will be presumed that he/she did not wish to name a contingent annuitant. If the participant has a spouse at the time of making an election under this Section, such spouse must consent, in writing, to such election, and such consent must be notarized by a qualified notary public in order for the election to be effective.

The aggregate of the retirement benefits expected to be paid under this option to a participant and his/her contingent annuitant shall be the actuarial equivalent of the retirement benefits to which the participant would be otherwise entitled to receive upon retirement determined pursuant to Section 125.120 or 125.140, as appropriate, without regard to any benefit which might be provided under Section 125.190.

The participant may elect under this option that either one hundred percent (100%), sixty-six and two-thirds percent (66 2/3%) or fifty percent (50%) of the reduced retirement benefits he/she has elected to be payable to him/her for life will be continued to his/her designated contingent annuitant for life.

An election to receive retirement benefits in accordance with this option shall become inoperative in the event:

The participant dies before retirement; or

The participant's contingent annuitant predeceases the participant while the participant is still employed, and another contingent annuitant has not been designated.

Section 125.250 Small Benefit Amount.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

If the retirement benefits payable under this plan to a participant are less than twenty dollars ($20.00) per month, the Board may direct that in lieu of such retirement benefits, the actuarial equivalent thereof shall be paid in a lump sum.

Section 125.260 Facility of Payments.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

If the Board in good faith believes that a person entitled to receive any payment under the plan is physically or mentally incompetent to receive such payment and to give a valid release therefor; the payment may be made to another person or an institution who has been appointed conservator or who is serving as custodian under the Missouri Personal Custodian Law or to an agent under a power of attorney and the release of such other person or institution shall be a valid and complete discharge for the payment.

Section 125.270 Direct Rollovers.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

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.

Definitions. As used in this Chapter, the following terms shall have the meanings indicated:

DIRECT ROLLOVER

A payment by the plan to the eligible retirement plan specified by the distributee.

DISTRIBUTEE

Includes an employee or former employee. In addition, the 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 non-spouse designated beneficiary, in which case, the distribution can only be transferred to a traditional or Roth IRA established on behalf of the non-spouse designated beneficiary for the purpose of receiving the distribution.

ELIGIBLE RETIREMENT PLAN

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.

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 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 (10) years or more; any distribution to the extent such distribution is required under Code 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 rule, a distribution from a designated Roth account and a distribution from other accounts under the plan are treated as made under separate plans.

Any portion of a distribution that consists of after-tax employee contributions which are not includable in gross income may be transferred only to:

For distributions made after December 31, 2001, a defined contribution plan described in Section 401(a) or Section 403(a) that agrees to separate accounting for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includable in gross income and the portion of such distribution which is not so includable, or a traditional individual retirement account or annuity described in Code Section 408(a) or (b) (a "traditional IRA"); and

Effective for distributions after December 31, 2006, to a qualified plan or an annuity contract described in Code Section 401(a) and Code Section 403(b), respectively, that agrees to separate accounting for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includable in gross income and the portion of such distribution which is not so includable or a traditional individual retirement account or annuity described in Code Section 408(a) or (b) (a "traditional IRA"); and

Effective for distributions made after December 31, 2007, shall also include a Roth individual retirement account or annuity described in Code Section 408A (a "Roth IRA").

Section 125.280 Required Minimum Distributions — Time and Manner of Distribution.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

Required Beginning Date. The participant's entire interest will be distributed, or begin to be distributed, to the participant no later than the participant's required beginning date.

Death Of Participant Before Distributions Begin.

If the participant dies before distributions begin, his or her entire interest will be distributed, or begin to be distributed, no later than as follows:

If the participant's surviving spouse is the participant's sole designated beneficiary, then subject to Section 125.280(B)(1)(e), 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 seventy and one-half (70 1/2), if later.

If the participant's surviving spouse is not the participant's sole designated beneficiary, then subject to Section 125.280(B)(1)(e) below, distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died.

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.

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 Section, other than Section 125.280(B)(1)(a), will apply as if the surviving spouse were the participant.

If the participant 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 Section 125.280(B)(1)(a) or (b) if the participant's entire interest is distributed to the designated beneficiary by December 31 of the calendar year containing the fifth anniversary of the participant's death.

For purposes of this Section and Section 125.280(C), unless Section 125.280(B)(1)(d) applies, distributions are considered to begin on the participant's required beginning date. If Section 125.280(B)(1)(d) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section 125.280(B)(1)(a). If annuity payments irrevocably commence to the participant before the participant's required beginning date [or to the participant's surviving spouse before the date distributions are required to begin to the surviving spouse under Section 125.280(B)(1)(a), the date distributions are considered to begin is the date distributions actually commence.

Forms Of Distribution. Unless the participant'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 125.290 and 125.300. If the participant'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 participant'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.

Section 125.290 Required Minimum Distributions — Determination of Amount to Be Distributed Each Year.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

General Annuity Requirements. If the participant's interest is paid in the form of annuity distributions under the plan, payments under the annuity will satisfy the following requirements:

The annuity distributions will be paid in periodic payments made at intervals not longer than one (1) year;

The distribution period will be over a life (or lives) or over a period certain not longer than the period described in Section 125.300 or 125.310;

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;

Payments will either be non-increasing or increase only as follows:

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;

To the extent of the reduction in the amount of the participant'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 Subsection (A)(4) dies or is no longer the participant's beneficiary under a plan approved domestic relations order;

To provide cash refunds of employee contributions upon the participant's death; or

To pay increased benefits that result from a plan amendment.

Amount Required To Be Distributed By Required Beginning Date. The amount that must be distributed on or before the participant's required beginning date [or, if the participant dies before distributions begin, the date distributions are required to begin under Section 125.280(B)(1)(a) or (b)] is the payment that is required for one (1) payment interval. The second 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., bimonthly, monthly, semiannually, or annually. All of the participant'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 participant's required beginning date.

Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing to the participant 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.

Section 125.300 Required Minimum Distributions — Requirements for Annuity Distributions That Commence During Participant's Lifetime.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

Joint Life Annuities Where The Beneficiary Is Not The Participant's Spouse. If the participant's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the participant and a non-spouse beneficiary, annuity payments to be made on or after the participant's required beginning date to the designated beneficiary after the participant'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 participant using the Table in Q 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 participant 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.

Period Certain Annuities. Unless the participant'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 participant's lifetime may not exceed the applicable distribution period for the participant 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 participant reaches age seventy (70), the applicable distribution period for the participant 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 participant as of the participant's birthday in the year that contains the annuity starting date. If the participant's spouse is the participant'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 participant's applicable distribution period, or the joint life and last survivor expectancy of the participant and the participant'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 participant's and spouse's attained ages as of the participant's and spouse's birthdays in the calendar year that contains the annuity starting date.

Section 125.310 Required Minimum Distributions — Requirements for Minimum Distributions if Participant Dies Before Distributions Begin.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021]

Participant Survived By Designated Beneficiary. If the participant dies before the date distribution of his or her interest begins and there is a designated beneficiary, the participant's entire interest will be distributed, beginning no later than the time described in Section 125.280(A) or (B), over the life of the designated beneficiary or over a period certain not exceeding:

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 participant's death; or

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 or her birthday in the calendar year that contains the annuity starting date.

No Designated Beneficiary. If the participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the participant's death, distribution of the participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the participant's death.

Death Of Surviving Spouse Before Distributions To Surviving Spouse Begin. If the participant dies before the date distribution of his or her interest begins, the participant's surviving spouse is the participant's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, Section 125.280 will apply as if the surviving spouse were the participant, except that the time by which distributions must begin will be determined without regard to Section 125.280(A).

Section 125.320 Retirement Board.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021[1]]

The plan shall be administered by a Retirement Board consisting of the Mayor and the Director of Finance of the City, one (1) participant who is a resident of the City and who is not an employee or retired employee under the plan and two (2) participants who are employees of the City and who are eligible to participate in the plan.

The resident participant and the employee participants of the Board shall be appointed from time to time by the Mayor with the approval of the majority of the members of the City Council and shall serve at the pleasure of the Mayor and the majority of the City Council.

The Board shall not receive remuneration for its services. It shall elect its own Chairman, Vice Chairman, and Secretary and shall delegate to them their respective duties, except that the Secretary shall make a record of all meetings.

Editor's Note: Ord. No. 2021-31 also changed the title of this Section from "Retirement Committee" to "Retirement Board."

Section 125.330 Powers of Board.

[Ord. No. 2011-2 §1, 1-10-2011; Ord. No. 2014-04 §1, 1-27-2014; Ord. No. 2021-31, 12-13-2021[1]]

The Board shall have all such powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the power to construe or interpret the plan, to decide all questions of eligibility, to determine the amount, manner, and time of payment of any benefits hereunder, and to invest, manage and control the Retirement Fund. A majority vote of the members present at a regular or special meeting of the Board shall be necessary to decide all matters coming before it. Three (3) members shall constitute a quorum, except that at least one (1) employee participant shall be present. The Board shall meet from time to time as necessary.

When making a determination or calculation, the Board shall be entitled to rely upon information furnished by the City, or the actuary retained to advise concerning the plan and the Retirement Fund.

The Board may adopt such rules and actuarial tables as it deems advisable. The Board may employ, subject to the approval of the Mayor and the City Council, such agents, attorneys, actuaries, or clerical assistants as it deems necessary. The Board shall issue directions to the investment agent of the Retirement Fund or to the proper official of the City concerning all benefits which are to be paid from the Retirement Fund pursuant to the provisions of the plan.

All rules and decisions of the Board shall be uniformly and consistently applied to all employees in similar circumstances. Any rule or decision which is not inconsistent with the provisions of the plan shall be conclusive and binding upon all persons affected by it.