This chapter shall be known as the "Sussex County
Employee Pension Plan Act."
The purpose of this chapter is to assist the
County administration in attracting and retaining qualified employees
and to reward employees for their extended service to the County.
[Amended 12-16-1980 by Ord. No. 52; 9-22-1981 by Ord. No. 73; 3-25-1986 by Ord. No. 359; 9-1-1998 by Ord. No. 1257; 10-4-2011 by Ord. No.
2223]
The following are allowable interruptions:
A. Time spent on short-term disability, under §
29-31A, Subsection
B. The time during which an employee receives long-term disability under §
29-31A, Subsection
C, or a disability pension under this chapter shall not be an allowable interruption and shall not count as service for a pension benefit under this chapter.
B. Leaves of
absence granted to employees.
C. Leaves of
absence for entering the armed services of the United States, as described
in this chapter.
D. Involuntary
severance of employment not due to any fault or neglect on the part
of such employee.
E. Voluntary
severance of employment for a period not to exceed one year; but the
employee shall not be considered a covered employee during any period
of such interruption. The usual vacation allowed any employee of any
department or agency shall not be considered an interruption from
continuous service.
F. For a covered employee hired by Sussex County after December 31,
2013, covered employment for calculating benefits and vesting shall
not include any period of uncompensated allowable interruption unless,
within 12 months after returning from the uncompensated allowable
interruption, such covered employee contributes from his or her compensation
the employee contributions that such covered employee would have contributed
if he or she was not on an uncompensated allowable interruption at
the rate of base compensation that such covered employee was earning
at the commencement of the allowable interruption.
[Added 4-29-2014 by Ord. No. 2346]
G. Participation
in qualified military service is deemed an "allowable interruption"
from continuous service under the terms of the Plan. A participant
who dies during this period of "allowable interruption" will be treated
as having died while an active participant in the Plan and his or
her beneficiary, if otherwise eligible under the terms of the Plan,
will be entitled to the death benefit.
[Added 12-8-2020 by Ord.
No. 2760]
[Amended 12-16-1980 by Ord. No. 52; 11-15-2011 by Ord. No.
2228]
A. The good
order of the Sussex County Council and the welfare of its personnel
require safe and wise investment of the pension fund and Other Post-Employment
Benefit Fund of the employees and former employees of Sussex County.
Sussex County presently manages a substantial pension fund for the
benefit of its employees.
B. There is
hereby established a Sussex County Pension Fund Committee, hereinafter
referred to as the “committee.” The responsibilities of
the committee shall be to review and periodically advise the Sussex
County Council on the prudent investment of the Sussex County Employees
Pension Fund and Other Post-Employment Benefit Fund.
C. The committee
shall assume full responsibility to accomplish its mission and is
hereby given the necessary powers as described below to do so:
(1) Adopt
its own internal rules of procedure, subject to Sussex County Council’s
review and approval.
(2) Make
such arrangements for meeting space and materials within the Sussex
County Administration Building as are necessary for the carrying out
of the committee’s business.
(3) Obtain
and keep such books and records as are needed to carry out the committee’s
business.
D. Whoever
is serving in the position of the County Finance Director, County
Administrator, and County Human Resources Director shall always be
members of the committee. The following members shall be appointed
by the Sussex County Council for a term of four years: two Sussex
County community members, a current Sussex County employee, and a
retired Sussex County employee who currently receives a County pension.
E. At its discretion,
the Sussex County Council shall have the power to enter into contracts
with qualified persons, agents, or entities to enable it to perform
its investment duties or to enter into investment management agreements
with qualified persons, agents, or entities, under which investment
responsibilities of the Sussex County Council shall be delegated to
such persons, agents, or entities, as so recommended by the committee.
The Sussex County Council shall be allowed to buy investments based
on recommendations of these qualified persons, agents or entities.
[Added 12-16-1980 by Ord. No. 52]
A. For the purpose of settling any controversy that may
arise out of the administration of this chapter, the Arbitration Commission
for Sussex County is created. It consists of three persons, two of
whom shall be of the same political party, to be appointed by the
government of Sussex County for a term of four years.
B. The Commission shall adjudicate this controversy at
a time and place to be fixed by the Commission after due notice, in
writing, has been given to all interested parties at least 10 days
prior to the day of hearing. The Commission may administer oaths and
do such acts to make such rules in the premises as the Commission
deems necessary and carry into effect with provisions. The written
concurring decision of any two members of the Commission shall be
final.
C. The members of the Commission shall serve without
compensation, but the government of Sussex County shall provide for
the payment of the administrations of the Commission.
[Amended 9-22-1981 by Ord. No. 73; 6-6-2000 by Ord. No.
1375; 8-21-2001 by Ord. No. 1485; 11-1-2005 by Ord. No. 1799]
A. The benefits shall be computed as follows: The wages or salary of the highest paid three years of Sussex County covered employment shall be averaged by dividing the total by 36 months. This product shall be divided by a constant of 60. The product of these functions shall be multiplied by the number of years of covered employment plus full months of covered employment divided by 12. The result shall be the monthly pension payment. The number of years of covered employment factored into the above calculations for those employees hired after July 1, 2000, and who retired before January 1, 2017, will be a maximum of 25 or 30 in determining benefits provided pursuant to §
26-6B(3) and
(4) above. For those covered employees hired after July 1, 2000, and who retire after December 31, 2016, the number of years of covered employment factored into the calculations of benefits, will be a maximum of 30 or 35 in determining benefits provided pursuant to §
26-6B(3) and
(4) above. For purposes of computing benefits under this §
26-7A for those covered employees who retire after December 31, 2016, wages or salary for each year of Sussex County covered employment shall be computed by multiplying the employee's highest hourly rate for the year by the number of regularly scheduled workweek hours and then multiplying the product thereof by 52 weeks. For a covered employee who is classified as a paramedic or emergency communications specialist and who works scheduled twelve-hour shifts, including management personnel who are required to maintain certifications necessary to relieve as a paramedic or emergency communications specialist who retires after December 31, 2016, wages or salary for each year of Sussex County covered employment shall be computed by multiplying the employee's highest hourly rate for the year by 42 hours and then multiplying the product thereof by 52 weeks.
[Amended 11-29-2016 by Ord. No. 2476; 2-26-2019 by Ord. No. 2634]
For plan years beginning after January 1, 1994, and before January
1, 1997, for purposes of computing benefits under this chapter, compensation
in excess of $150,000 shall be disregarded. Such amount shall be adjusted
for increases in the cost of living in accordance with § 401(a)(17)(B)
of the United States Internal Revenue Code [26 U.S.C. § 401(a)(17)(B)],
except that the dollar increase in effect on January 1 of any calendar
year shall be effective for the plan year beginning with or within
such calendar year.
|
For plan years beginning after December 31, 2001, for purposes
of computing benefits under this chapter, compensation in excess of
$200,000 shall be disregarded. Such amount shall be adjusted for increases
in the cost of living in accordance with § 401(a)(17)(B)
of the United States Internal Revenue Code [26 U.S.C. § 401(a)(17)(B)],
except that the dollar increase in effect on January 1 of any calendar
year shall be effective for the plan year beginning with or within
such calendar year.
|
For any short plan year, the compensation limit shall be an
amount equal to the § 401(a)(17)(B) of the United States
Internal Revenue Code [26 U.S.C. § 401(a)(17)(B)] limit
on compensation for the calendar year in which the plan year begins
multiplied by the ratio obtained by dividing the number of full months
in the short plan year by 12.
|
For plan years beginning after December 31, 1996, for purposes
of determining compensation, the family member aggregation rules of
§ 401(a)(17) of the United States Internal Revenue Code
[26 U.S.C. § 401(a)(17)] and § 414(q)(6) of the
United States Internal Revenue Code [26 U.S.C. § 414(q)(6)],
(as in effect prior to the Small Business Job Protection Act of 1996)
are eliminated.
|
B. Notwithstanding the foregoing, the benefits shall be computed as follows for a covered employee, hired after July 1, 2001 and who retire before January 1, 2017, who is classified as a paramedic or emergency communications specialist and who works scheduled twelve-hour shifts, including management personnel who are required to maintain certifications necessary to relieve as a paramedic or emergency communications specialist: The wages or salary of the highest paid three years of Sussex County covered employment shall be averaged by dividing the total by 36 months. This product shall be divided by a constant of 50. The product of these functions shall be multiplied by the number of years of covered employment, which number shall not exceed 25. The result shall be the monthly pension payment. For such covered employee described in this §
26-7B hired after July 1, 2001 and who retires after December 31, 2016, for purposes of computing benefits under this §
26-7B, the number of years of covered employment shall not exceed 30, and wages or salary for each year of Sussex County covered employment shall be computed by multiplying the employee's highest hourly rate for the year by 42 hours and then multiplying the product thereof by 52 weeks.
[Amended 11-29-2016 by Ord. No. 2476]
C. In the event a covered employee who is classified as a paramedic or emergency communications specialist and who works scheduled twelve-hour shifts, including management personnel who are required to maintain certifications necessary to relieve as a paramedic or emergency communications specialist was hired prior to July 1, 2001, such covered employee may choose that his pension benefit be computed in accordance with §
26-7A or §
26-7B.
D. For employees otherwise eligible for a County pension
who have had United States military service and are honorably discharged
from said service, the computation of years of service shall include
one additional year of County service for two years or more of military
service. As to those employees, the multiplier used in the calculation
for the number of years of service and fractions of years of service
shall be modified to provide that the product of these functions shall
be multiplied by the number of years of service and fractions of years
of service, plus one year. Otherwise, there will be no change in the
maximum years of service used in determining the calculation of pension
benefits. The one additional year granted herein for military service
does not count toward vesting, pension eligibility or post-retirement
benefit eligibility.
E. Minimum death benefit. Upon the death of a covered employee hired
after December 31, 2013, former employee hired after December 31,
2013, or pensioner hired after December 31, 2013, or if a survivor's
pension is payable upon such death, when such pension ceases to be
payable, there shall be paid to the designated beneficiary or, in
the absence of a designated beneficiary, to the estate of such covered
employee, such former employee or such pensioner a lump sum equal
to the excess, if any, of the accumulated employee contributions with
2% interest per annum over the aggregate of all pension payments made.
[Added 4-29-2014 by Ord. No. 2346]
F. Withdrawal benefit. Upon the withdrawal from service of a covered employee hired after December 31, 2013, and who is not eligible for a service pension under §
26-6A, the employee's total employee contributions paid while the employee was a covered employee, with simple interest at the rate of 2% per annum, shall be paid to the covered employee.
[Added 4-29-2014 by Ord. No. 2346]
G. Limitations on benefits. Pursuant to Treasury Regulation § 1.415(a)-1(d)(3)
(Section 415 Regulations), effective for plan years beginning on or
after January 1, 1976, the limitations on benefits under § 415
of the United States Internal Revenue Code [26 U.S.C. § 415]
and the Section 415 Regulations, applicable to governmental plans
as defined in § 414(d) of the United States Internal Revenue
Code [26 U.S.C. § 414(d)] are hereby incorporated by reference.
For purposes of the application of these limitations under § 415
of the United States Internal Revenue Code [26 U.S.C. § 415],
a covered employee's compensation shall be as determined in accordance
with Treasury Regulation § 1.415(c)(2)(b) and (c). When
determining a participant’s compensation under this subsection,
differential wage payments as defined by Code Section 3401(h)(2), shall be treated as compensation.
[Added 2-26-2019 by Ord.
No. 2634; amended 12-8-2020 by Ord. No. 2760]
H. Military service. Effective December 12, 1994, notwithstanding any
provision of this chapter to the contrary, benefits and service credit
under this chapter with respect to qualified military service will
be provided in accordance with § 414(u) of the United States
Internal Revenue Code [26 U.S.C. § 414(u)].
[Added 2-26-2019 by Ord.
No. 2634]
I. Required minimum distributions. The required minimum distribution
provisions of § 401(a)(9) of the United States Internal
Revenue Code [26 U.S.C. § 401(a)(9)] and Treasury Regulations
§ 1.401(a)(9)-1 through § 1.401(a)(9)-9 applicable
to governmental plans as defined in § 414(d) of the United
States Internal Revenue Code [26 U.S.C. § 414(d)] are hereby
incorporated by reference. All distributions of benefits shall be
made in accordance with Treasury Regulations § 1.401(a)(9)-1
through § 1.401(a)(9)-9, and the provisions of § 401(a)(9)
of the United States Internal Revenue Code [26 U.S.C. § 401(a)(9)]
override any distribution options in this chapter that are inconsistent
with § 401(a)(9) of the United States Internal Revenue Code
[26 U.S.C. § 401(a)(9)]. This incorporation by reference
shall include the provisions of Section 401(a)(9)(G) of the United
States Internal Revenue Code [26 U.S.C. § 401(a)(9)(g)].
A covered employee’s retirement benefits shall begin to be distributed,
no later than the covered employee’s required beginning date.
The required beginning date of a covered employee is April 1 of the
calendar year following the later of the calendar year in which the
participant attains age 70½ or the calendar year in which the
participant retires. For covered employees turning 70½ after
December 31, 2019, the required beginning date is April 1 of the calendar
year following the later of the calendar year in which the participant
attains age 72 or the calendar year in which the participant retires.
[Added 2-26-2019 by Ord.
No. 2634; amended 12-8-2020 by Ord. No. 2760]
J. For 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, 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.
[Added 12-8-2020 by Ord.
No. 2760]
(1) Eligible
rollover distribution. An eligible rollover distribution is any distribution
of all or any portion of the balance to the credit of the distributee,
except that an eligible rollover distribution does not include: any
distribution that is one 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 10 years or more; any distribution
to the extent such distribution is required under Section 401(a)(9)
of the Code; and 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).
(2) Eligible
retirement plan. An eligible retirement plan is an individual retirement
account described in Section 408(a) of the Code, an individual retirement annuity described in Section
408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified trust described in Section 401(a) of the
Code, that accepts the distributee's eligible rollover distribution.
However, in the case of an eligible rollover distribution to the surviving
spouse, an eligible retirement plan is an individual retirement account
or individual retirement annuity.
(3) Distributee.
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 Section
414(p) of the Code, are distributees with regard to the interest of the spouse
or former spouse.
(4) Direct
rollover. A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
[Amended 12-16-1980 by Ord. No. 52; 6-1-1993 by Ord. No.
890; 6-6-2000 by Ord. No. 1375]
No person, while receiving a pension under this
chapter, shall be employed by the government of Sussex County or any
department or agency of said government in any capacity other than
part-time for no more than 520 hours in any one calendar year unless
elected by popular vote and elected; and during such elected term,
he shall not be entitled to a pension unless he serves such term of
office without pay. Persons eligible to receive survivor's benefits
are excluded from this restriction.
Any person who knowingly makes any false statement
or falsifies or permits falsification of any records of the Pension
Fund in an attempt to defraud the fund shall be guilty of a misdemeanor
and, upon conviction, shall be sentenced to pay a fine not exceeding
$1,000 or suffer imprisonment not exceeding one year, or both, in
the discretion of the court.