[R.O. 2011 § 2.62.010; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
There is provided a plan by the plan sponsor for the retirement
of the commissioned salaried members of the Police and Fire Departments
of the City (hereinafter referred to in this Article as "employees"
or "members") on account of age or disability, and for the payment
to their surviving spouses, minor children or beneficiaries, as applicable,
of the pensions and investment accounts as more specifically set forth
in this Article, in pursuance of the Constitution of the State and
the laws enacted pursuant thereto.
[R.O. 2011 § 2.62.020; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A fund to be known and designated as "Police and Firefighters'
Retirement Fund" shall be set up and maintained, to be derived partly
from taxation as set forth in this Article, and partly from contributions
made by the salaried members of the Police and Fire Departments and
other sources as provided by this Article. Effective as of January
1, 1954, the corpus or income of the fund will be used for all members
and their beneficiaries and will not be diverted to or used for other
than the exclusive benefit of the members or their beneficiaries.
[R.O. 2011 § 2.62.100; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
For the purpose of this Article, the following words and phrases
shall have the meanings respectively ascribed to them by this Section:
ACCUMULATED CONTRIBUTIONS
The sum of all amounts deducted from the compensation of
a member and credited to the member's individual account together
with interest thereon.
ACTUARIAL EQUIVALENT OR ACTUARIAL EQUIVALENCE
A benefit having the same value as another stated benefit
on the date payment commences or on any other date calculated on the
basis of the factors as applicable below.
1.
Adjustment for form and date of payment. If a member's benefit is payable in a form other than the normal form of retirement benefit, it will be adjusted to reflect the actuarial equivalent thereof. If a member's accrued benefit is payable at any time after the member's normal retirement date, it will be determined in accordance with Section
130.140.
|
However, if a member is eligible for early retirement, the amount of benefits paid will be the actuarial equivalent of the member's accrued benefit payable as a normal form of retirement benefit commencing at early retirement date in accordance with Section 130.160.
|
2.
Age on applicable date. The actuarial equivalent of an accrued
benefit will be determined as of the applicable date on the basis
of the payee's actual age. If a benefit is initially determined and
thereafter there is an administrative delay in the actual payment
of benefits, the administrator shall determine in a manner consistently
applied on a non-discriminatory basis whether the benefit will be
adjusted. Any such adjustment may either add interest to the date
of actual distribution or the benefit may be revalued based on the
payee's then current actual age as of the date benefits are paid.
3.
Amendment of actuarial equivalence. Except as may otherwise
be permitted by the Code and by the regulations issued thereunder,
if the definition of actuarial equivalence is amended, in no event
will the lump sum actuarial equivalent of an accrued benefit determined
on the date a benefit commences be less than the actuarially equivalent
value of the accrued benefit as determined one (1) day prior to the
date of change, based on the terms of the plan as in effect on such
day.
4.
Actuarial equivalence factors. Actuarial equivalence will be
determined on the basis of the following mortality table and interest
rates — Seven percent (7%) interest and the 1983 Group
Annuity Mortality Table blended eighty/twenty (80/20) male and female.
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The GATT 417(e) Date applicable for this plan shall be the first
day of the plan year which begins on or after January 1, 2000.
|
5.
Code Section 417(e) PBGC factors. If the annuity starting date
is prior to the GATT 417(e) Date, the mortality table is as stated
in (4) above and interest is based on the applicable interest rate.
The applicable interest rate is the interest rate as of either the
date benefits are computed to be payable or the first day of the plan
year which contains the annuity starting date which would be used
by the Pension Benefit Guaranty Corporation for a trusteed single-employer
plan to value a benefit upon termination of an insufficient trusteed
single-employer plan. The Code Section 417(e) interest rate limitations
will apply to distributions in plan years beginning after 1984; but
the Code Section 417(e) interest rate will not apply to any distributions
beginning in plan years before 1987, if such distributions were determined
in accordance with the interest rates as required by Regulation Section
1.417(e)-1T(e) (including the PBGC immediate interest rate).
6.
Code Section 417(e) GATT factors. The applicable interest rate
is the rate of interest on thirty (30) year Treasury securities as
specified by the Commissioner for the applicable lookback month for
the applicable stability period. The applicable lookback month shall
be the third (3rd) calendar month preceding the first day of the applicable
stability period. The applicable stability period shall be the successive
period of one (1) plan quarter that contains the annuity starting
date for the distribution and for which the applicable interest rate
remains constant. If the date herein for determining the applicable
interest rate is changed by amendment or by indirect change as a result
of a change in the plan year, such change shall not be given effect
with respect to any distribution during the period commencing one
(1) year after the later of the amendment's effective date or adoption
date, if during such period the member's distribution would be reduced
as a result of such amendment.
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The post-retirement (and pre-retirement, if applicable) applicable
GATT mortality table will be as follows: 1) for benefits with an annuity
starting date before December 31, 2002 as set forth in Revenue Ruling
95-6 equal to the 1983 Group Annuity Mortality Table gender neutral
blended fifty/fifty (50/50) male and female; and 2) for benefits with
an annuity starting date on or after December 31, 2002 as set forth
in Revenue Ruling 2001-62 equal to the 1994 Group Annuity Reserving
Mortality Table projected to 2002 based on a fixed blend of fifty
percent (50%) of the unloaded male mortality rates and fifty percent
(50%) of the unloaded female mortality rates.
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BASE SALARY
The greater of:
1.
The highest monthly salary according to the salary range, as
contained in Section 1, Schedule B of the payroll ordinances then
in use for a Police Officer and Firefighter or paramedic Firefighter,
plus any salary increase because of twenty (20) years of service.
If the amounts for such Police Officer and Firefighter or paramedic
Firefighter (whichever is the highest salary of the fire group) are
not the same, the mean of the two (2) amounts shall be used as the
base salary herein; or
2.
Effective January 1, 2005, one-thirty-sixth (1/36) of the aggregate compensation paid to an employee during such employee's last three (3) years of service; provided however, that this Subsection
(2) shall not apply for purposes of determining funeral benefits under Section
130.190(A).
3.
Except for purposes of determining the maximum three (3) highest
consecutive year average compensation under Code Section 415, in determining
average compensation and accrued benefits for any plan year which
begins on or after January 1, 2002, the annual base salary for each
participant which is taken into account shall not exceed two hundred
thousand dollars ($200,000.00), as adjusted for cost-of-living increases
in accordance with Code Section 401(a)(17)(B). The two hundred thousand
dollar ($200,000.00) limit shall be adjusted for cost-of-living increases
in accordance with Code Section 401(a)(17)(B). The cost-of-living
adjustment in effect for a calendar year applies to base salary for
the determination period that begins with or within such calendar
year.
BENEFICIARY
Any person in receipt of a benefit from the retirement system
as a result of the death of a member or retiree. In the event an active
member fails to designate a beneficiary, or the designated beneficiary
predeceases the active member, the beneficiary of the active member
shall be his/her surviving spouse; or, if no spouse survives the active
member, his/her surviving children in equal shares; or, if no children
survive the active member, his/her surviving parent or parents in
equal shares; or, if none of the foregoing individuals survives the
active member, his/her estate.
CODE
The Internal Revenue Code of 1986, as amended, and the regulations
and rulings promulgated thereunder by the Internal Revenue Service.
CODE SECTION 415 COMPENSATION
Means, effective May 1, 2001, wages, salaries, differential
wage payments under Code Section 3401(h), fees for professional services
and other amounts received (without regard to whether or not an amount
is paid in cash) for personal services actually rendered in the course
of employment with the employer maintaining the plan, including, but
not limited to, commissions paid salespersons, compensation for services
based on a percentage of profits, commissions on insurance premiums,
tips, bonuses, fringe benefits, and reimbursements, or other expense
allowances under a non-accountable plan as described in IRS regulations
Section 1.62-2(c). A Participant's Code Section 415 Compensation will
be determined subject to the following provisions:
1.
Code Section 415 Compensation does not include:
a.
Employer contributions to a plan of deferred compensation which
are not includible in gross income for the taxable year in which contributed,
or employer contributions to a simplified employee pension plan to
the extent such contributions are deductible by the employee, or any
distributions from a plan of deferred compensation;
b.
Amounts realized from a non-qualified stock option, or when
restricted stock or property held by the employee either becomes freely
transferable or is no longer subject to a substantial risk of forfeiture;
c.
Amounts realized from the sales, exchange or other disposition
of stock acquired under a qualified stock option; and
d.
Other amounts which receive special tax benefits, or contributions
made by an employer (whether or not under a salary reduction agreement)
towards the purchase of an annuity described in Code Section 403(b)
(whether or not the amounts are excludible from an employee's gross
income).
2.
For limitation years beginning on or after January 1, 1998,
Code Section 415 compensation will include any elective deferrals
as defined in Code Section 402(g)(3), and any amounts contributed
or deferred at the election of the employee that were not includible
in the gross income by reason of Code Section 125 or 457. Code Section
415 compensation will also include elective amounts that are not includible
in the gross income of the employee by reason of Code Section 132(f)(4)
for limitation years beginning on or after January 1, 2001.
3.
For limitation years beginning on or after July 1, 2007, compensation
for a limitation year shall also include compensation paid by the
later of two and one-half (2 1/2) months after an employee's
severance from employment with the employer maintaining the plan or
the end of the limitation year that includes the date of the employee's
severance from employment with the employer maintaining the plan,
if the payment is regular compensation for services during the employee's
regular working hours, or compensation for services outside the employee's
regular working hours (such as overtime or shift differential), commissions,
bonuses, or other similar payments, and absent a severance from employment,
the payments would have been paid to the employee while the employee
continued in employment with the employer.
COMPENSATION
The Code Section 3401 Compensation that is actually paid
in gross income during the calendar month (or, for a month which began
on or after January 1, 1992, actually paid or made available). The
term Code Section 3401 Compensation means wages within the meaning
of Code Section 3401(a) that are actually paid or made available in
gross income for the purposes of income tax withholding at the source
but determined without regard to any rules under Code Section 3401
that limit the remuneration included in wages based on the nature
or location of the employment or the services performed.
1.
Partial month compensation. If a member is employed for less
than a full calendar month used for determining compensation or average
compensation, compensation for such partial month shall be counted
(without annualizing).
2.
Elective deferrals and certain other amounts. Effective for the plan year beginning January 1, 2013, except for purposes of Code Section 415 Compensation, employer contribution amounts made pursuant to a salary reduction agreement which were not currently includible in a member's gross income by reason of Code Section 125, Code Section 402(g), Code Section 403(b) and Code Section 457 will be included in determining compensation for all plan years. Employee contributions to the Police and Firefighters' Retirement Fund treated as employer contributions under Section
130.120 included in determining compensation for all plan years. Compensation will also include elective amounts that are not includible in the gross income of the employee by reason of Code Section 132(f)(4) for limitation years beginning on or after January 1, 2001.
3.
Code Section 401(a)(17) annual compensation limit. In determining
average compensation and accrued benefits for any plan year which
begins on or after January 1, 1996, the annual compensation for each
participant which is taken into account shall not exceed one hundred
sixty thousand dollars ($160,000.00), as adjusted for cost-of-living
increases in accordance with Code Section 401(a)(17)(B). Except for
purposes of determining the maximum 3-highest consecutive year average
compensation under Code Section 415, in determining average compensation
and accrued benefits for any plan year which begins on or after January
1, 2002, the annual compensation for each participant which is taken
into account shall not exceed two hundred thousand dollars ($200,000.00),
as adjusted for cost-of-living increases in accordance with Code Section
401(a)(17)(B). The two hundred thousand dollar ($200,000.00) limit
on annual compensation shall be adjusted for cost-of-living increases
in accordance with Code Section 401(a)(17)(B). The cost-of-living
adjustment in effect for a calendar year applies to annual compensation
for the determination period that begins with or within such calendar
year.
4.
Compensation limitation election available to certain members.
Except for purposes of determining Code Section 415 limitations, any
member who is a highly compensated employee may elect for any plan
year, on a form prescribed by the administrator, to limit his/her
compensation for all purposes under this plan.
5.
Certain amounts excluded from compensation. However, notwithstanding
the foregoing to the contrary, except for purposes of Code Section
415 limitations, any amount which would otherwise be considered compensation
under this Section but which is received by a member as an expense
allowance will not be considered compensation for purposes of the
plan.
EARLY RETIREMENT AGE
The date prior to normal retirement age that the member has
attained age fifty (50) and has completed twenty (20) years of service.
EMPLOYEE
Any appointive probationary or permanent full-time commissioned
salaried members of the Police and Fire Departments of the City. In
case of doubt as to whether any person is an employee within the meaning
of this Article, the decision of the Board of Trustees shall be final.
MEMBER
A member of the retirement system as defined in this Section.
NORMAL RETIREMENT AGE
The later of the date that the member completes twenty-five
(25) years of service after attaining age fifty (50).
PENSION
The annual payments for life which shall be payable in equal
monthly installments to a retiree or to a beneficiary.
PLAN SPONSOR
The City of University City, a political subdivision of the
State of Missouri.
REQUIRED BEGINNING DATE
April first (1st) of the calendar year following the later
of the calendar year in which the member reaches age seventy and one-half
(70 1/2) or the calendar year in which the member actually retires.
RETIREE
A member who has retired and is entitled to benefits from
the retirement system.
RETIREMENT DATE
The first day of the month following a member's actual retirement
after attainment of normal retirement age or early retirement age
for reasons other than disability; provided however, such member's
normal retirement date may be extended by a member until the first
day of any month thereafter, but in no event beyond the first day
of the month following the date that the member attains age seventy
(70).
RETIREMENT SYSTEM
The retirement plan of the commissioned salaried members
of the Police and Fire Departments of the City.
SERVICE
The time employed in either the Police Department or the
Fire Department, or a combination of the two (2); and such employee
has contributed to this uniformed pension plan during such time.
SURVIVING SPOUSE
The spouse of a member at the date of his/her retirement
or at the date of his/her death if he/she dies before retirement.
VESTING DATE
The date that a member has completed ten (10) years of service and has become vested in his/her benefit pursuant to Section
130.230(A) hereof.
Masculine pronouns shall include the corresponding pronouns
of the feminine gender unless otherwise qualified by the context.
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[R.O. 2011 § 2.62.210; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. No person shall be employed as a member of either the Police or Fire
Department unless he/she shall first undergo a physical examination
by the physician or medical board designated by the Board of Trustees
and be certified as being physically fit for the performance of the
duties in such departments. No person shall be so certified if he/she
be found to have any deformity or physical condition that may directly
or indirectly cause or contribute to the physical disability of such
applicant.
B. The Board of Trustees, with the consent of the Civil Service Board,
and subject to its approval, may adopt and promulgate rules governing
the age, height, weight and other physical or mental requirements
for the employees of both the Fire and Police Departments.
[Ord. No. 6925 § 1(Exh.
A § 2.62.220), 9-9-2013]
Notwithstanding any other provision of the plan to the contrary,
effective as of December 12, 1994, contributions, benefits and service
credit with respect to qualified military service shall be provided
in accordance with Code Section 414(u). If a participant who is absent
from employment as an employee because of military service dies after
December 31, 2006, while performing qualified military service (as
defined in Code Section 414(u)), the participant shall be treated
as having returned to employment as an employee on the day immediately
preceding his/her death for purposes of determining the participant's
vested interest in his/her accrued benefit and his/her beneficiary's
eligibility for a survivor benefit under the plan. Notwithstanding
the foregoing, such a participant shall not be entitled to additional
accruals with respect to his/her period of military leave.
[Ord. No. 6974 § 1(Exh.
A § 2.62.225), 12-8-2014]
A. Any individual who is a vested participant in this plan and who has
earned creditable service under any other retirement plan established
by the State of Missouri or any political subdivision or instrumentality
of the State and who is not vested under such other plan may purchase
service credit under this plan. The amount of creditable service which
may be purchased may not exceed the years of creditable service under
the other plan.
B. Any individual who is a vested participant in this plan and who was
employed in nonfederal public employment in Missouri and not covered
under a retirement plan in such position may purchase service credit
under this plan. The amount of creditable service which may be purchased
may not exceed the years of employment in such uncovered position.
C. Any purchase of creditable service under this Section shall be governed
by rules established by the Board. Such purchase shall be affected
by the employee's paying to the plan an amount determined by the plan's
actuary using the actuarial assumptions applied in determining the
costs of benefits under this plan at the date of the employee's election.
The payment may be made in a single sum or in equal monthly installments
or in a combination of both. Any installment payments shall be made
over a period not to exceed two (2) years, measured from the date
of election or prior to the commencement of benefits under the plan,
whichever is earlier. Interest compounded annually at the actuarially
assumed rate used by the plan shall accrue on the unpaid balance from
the date of the election. A rollover or trustee-to-trustee transfer
from another qualified retirement plan under Code Sections 401(a),
403(a) or 403(b) or a governmental Section 457(b) plan or individual
retirement account may be used to make payment for creditable service
purchased. If full payment for creditable service is not received
within the prescribed time period, all partial payments shall be refunded
and no creditable service shall be received.
D. Payments made for such creditable prior service pursuant to this Section shall be treated by the plan as would contributions made by the City and shall not be subject to any prohibition on employee contributions or refund provisions in effect at the time of enactment of this Section
130.097.
E. Creditable service purchased under this Section shall be treated as years of service and years of membership solely for purposes of determining the amount of retirement benefit payable to such employee under Section
130.140 and shall not be used in determining the time at which an employee has attained early retirement age or normal retirement age under the plan.
[R.O. 2011 § 2.62.230; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
Each employee shall furnish a statement within ninety (90) days
containing such information as requested by the Board of Trustees.
These statements shall be checked and verified and, if approved by
the Board of Trustees, shall become a part of the permanent files
of the Board. The proper officials and employees of the City shall
cooperate in supplying information concerning such service records.
[R.O. 2011 § 2.62.240; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Any former employee who is reinstated in the Police or Fire Department within two (2) years after termination of his/her employment shall be required as a condition of the re-employment to deposit the amount of any withdrawal made under Section
130.210, and shall be credited with his/her years of prior service. If reinstatement occurs after two (2) years, the former employee shall come in as a new employee without credit for prior service; and such prior service shall not be considered for any purposes under this uniformed pension plan.
B. Effective for plan years beginning after December 31, 1997, repayment
under this provision may be made by a trustee-to-trustee transfer
from a Code Section 403(b) annuity or a Code Section 457 deferred
compensation plan maintained by a State or local government employer
within Missouri for repayment of a cashout from this plan under Section
415(k)(3).
[R.O. 2011 § 2.62.300; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Each employee shall be assessed and required to pay into the Police
and Firefighters' Retirement Fund, created pursuant to this Article,
a sum equal to:
1.
In the case of an employee for whom an investment account is established under Section
130.340(A), five percent (5%) of his/her compensation; or
2.
In the case of any other employee, five percent (5%) of the
base salary.
B. An employee described in Subsection
(A)(2) of this Section who has contributed for thirty (30) years to this fund shall be excused from any further contributions to the fund. The City, in making up its payroll for members of the Police and Fire Departments, shall be authorized and required to deduct from the compensation due each employee for each payroll period a sum representing five percent (5%) of the base salary or the employee's compensation, as applicable, such deduction to be placed in a special fund, to be paid to the Treasurer of the Board of Trustees of the Police and Firefighters' Retirement Fund created pursuant to Chapter
120, Article
XIV. The employee contribution hereunder shall be, within the meaning of the Internal Revenue Code, Section 414(h)(2), treated as picked up by the City and therefor treated as employer contributions. Each employee of the Police and Fire Departments shall execute and deliver to the proper official of the City an authorization in proper form for the deduction herein described, and no person shall be employed as a member of the Police or Fire Department unless the employee shall execute such authorization. Any employee of either of such departments refusing to execute such authorization shall be ineligible to receive any of the benefits provided by this Article or Chapter
130, Article
I or Article
II.
[R.O. 2011 § 2.62.400; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A member of the Uniformed Fund may retire after attaining the
age of fifty (50) years and after completion of twenty-five (25) years'
membership in the Uniformed Fund.
[R.O. 2011 § 2.62.405; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Subject to the offset provisions contained in Subsections
(A)(6) and
(A)(7) of this Section, there shall be paid to each employee found eligible to retire, and to the employee's spouse and children, as provided in Sections
130.130 or
130.160 from this fund herein created, or by Workers' Compensation benefits or a combination of both, when approved by the Board of Trustees, the following benefits:
1.
To an employee retired after January 1, 1993, on account of age, length of service and length of time in this fund, as set forth in Section
130.130, a monthly benefit according to the following:
|
Years of Service
|
Years of Membership in Fund
|
Percentage of Base Monthly Salary
|
---|
|
25
|
25
|
65%
|
|
26
|
26
|
66%
|
|
27
|
27
|
67%
|
|
28
|
28
|
68%
|
|
29
|
29
|
69%
|
|
30 or more
|
30 or more
|
70%
|
2.
To an employee retired on account of age and service as set forth in Section
130.160, a monthly benefit according to the employee's attained age at his/her last birthday as follows:
|
Age in Years of Base Monthly Salary
|
Percentage of Base Monthly Salary
|
---|
|
50
|
40%
|
|
51
|
44%
|
|
52
|
48%
|
|
53
|
52%
|
|
54
|
56%
|
|
55 or more
|
60%
|
3.
To a former employee who is eligible for deferred retirement benefits as set forth in Section
130.230(A) and has reached the age of fifty-five (55) years, a monthly retirement benefit equal to the following percentage of the base monthly salary in effect at the date the employee ceased to be an employee:
|
Years of Service
|
Percentage of Base Monthly Salary
|
---|
|
10
|
30%
|
|
11
|
33%
|
|
12
|
36%
|
|
13
|
39%
|
|
14
|
42%
|
|
15
|
45%
|
|
16
|
48%
|
|
17
|
51%
|
|
18
|
54%
|
|
19
|
57%
|
|
20
|
60%
|
|
21
|
61%
|
|
22
|
62%
|
|
23
|
63%
|
|
24
|
64%
|
|
25
|
65%
|
|
26
|
66%
|
|
27
|
67%
|
|
28
|
68%
|
|
29
|
69%
|
|
30 or more
|
70%
|
|
Upon the death of a former employee who is eligible for benefits under Section 130.230(A), no benefits are payable under this Section.
|
4.
No retiree or surviving spouse shall be entitled to a new benefit
of less than three hundred twenty-five dollars ($325.00) a month.
This Subsection shall not apply to a retiree who terminated prior
to eligibility for retirement nor to a surviving spouse of a member
who terminated prior to eligibility for retirement.
5.
There shall be paid to an employee who is in service on or after September 1, 2000 and on or before May 1, 2001 a refund of one hundred percent (100%) of his/her accumulated employee contributions without interest as of December 31, 1987; provided however, that in the case of an employee for whom an investment account is established under Section
130.340(A), such accumulated employee contributions shall be treated as if they had been credited to the employee's investment account under Section
130.340(B) solely for purposes of crediting interest to such investment account under Section
130.340(B). The refund will not apply to employee contributions made after December 31, 1987.
6.
As of the date benefits become payable under this Section on account of retirement, termination of employment or death to, or with respect to, an employee for whom an investment account is established under Section
130.340(A), such benefits shall be reduced, but not below zero (0), by the actuarially equivalent annuitized value of the employee's offset amount determined under Subsection
(A)(7) of this Section. Such reduction shall be in addition to any other reduction provided under this Article.
7.
For purposes of Subsection
(A)(6) of this Section, the employee's offset amount shall be equal to the sum of:
a.
The amounts credited to the employee's investment account under Sections
130.340(B) and
130.340(C); provided however, that the interest credited under Section
130.340(B) and, if applicable, Subsection (I), shall be determined using an interest rate of seven percent (7%) compounded annually;
b.
All amounts that would have been contributed by the employee under Section
130.120 after April 30, 2001 if such contributions were determined on the basis of the base salary; and
c.
Interest on each such amount determined under Sections
130.340(B) of this Article from the date it was, or would have been, credited to the employee's investment account through the date benefits become payable under this Section at the rate of seven percent (7%) compounded annually.
The amount determined under Subsections
(A)(7)(a),
(A)(7)(b) and
(A)(7)(c) of this Section shall then be converted to the actuarially equivalent life annuity or other periodic benefit payable under this Section. The determination will be made at the earlier of (1) the date in Subsection
(A)(6) of this Section that benefits become payable, or (2) the date the employee completes thirty (30) years of service in either the Fire Department or the Police Department, or a combination of service in both departments.
8.
If any distribution from an employee's investment account under Section
130.150(A) which is made or commences prior to the date as of which benefits become payable under this Section, such distribution shall not affect the determination of the offset amount under this Section.
[R.O. 2011 § 2.62.407; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. In addition to benefits payable under Section
130.140, if any, a former employee may apply for a distribution from his/her investment account at any time. Such distribution shall be made or commence as of the valuation date under Section
130.340(E) on or as soon as administratively feasible following receipt of such application. Distributions shall not be made from an employee's investment account prior to the date the employee ceases to be an employee.
B. Upon the death of an employee prior to the date distribution of his/her investment account is made or commences under Subsection
(A) of this Section, the employee's investment account shall be distributed to the beneficiary designated by the employee upon forms (or such other medium) provided by the Board of Trustees or, if authorized by the Board, the manager of the investment funds. If the employee fails to designate a beneficiary, or if no beneficiary survives the employee, such distribution shall be made to his/her estate in a single lump sum. Distribution under Subsection
(B) of this Section shall be made or commence as of the valuation date under Section
130.340(E) on or as soon as administratively following receipt of notice of the employee's death.
C. Distributions to the employee or a beneficiary under Subsections
(A) or
(B) of this Section may be made in any form permitted for a defined contribution plan under the Internal Revenue Code, as elected by the employee or beneficiary. If the employee or beneficiary is entitled to a benefit payable under Section 2.62.150, the employee or beneficiary may elect to have all or any portion of the employee's investment account transferred to the portion of the fund not credited to investment accounts and paid in the actuarially equivalent form of such benefit, determined using an interest rate of seven percent (7%) and the 1983 Group Annuity Mortality Table.
D. Distributions under this Section shall be made in accordance with
the Internal Revenue Code, Section 401(a)(9), and the regulations
thereunder.
E. Effective for distributions 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 a qualified distributee in a direct rollover as provided in Section
130.300.
[R.O. 2011 § 2.62.410; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013; Ord. No.
7002 §1, 10-26-2015]
Upon application of an employee who has attained the age of fifty (50) and has at least twenty (20) years of service, the employee shall be retired and shall be eligible for either of the benefits prescribed by this Chapter for such person. Notwithstanding the foregoing, an employee who is receiving a disability retirement benefit pursuant to Section
130.170 shall not be eligible to receive an early service retirement benefit pursuant to this Section.
[R.O. 2011 § 2.62.420; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013; Ord. No.
7002 §1, 10-26-2015]
An employee who becomes disabled due to injury or illness on or after May 1, 2001, regardless of length of service, shall be eligible for a disability benefit up to sixty-seven percent (67%) of his/her compensation. Notwithstanding any other provisions of this Chapter, such disability benefit shall be provided under, and in accordance with the terms, conditions, requirements, limitations, rules and procedures (including, but not limited to, the criteria for determining disability, rules and procedures regarding medical examinations, the commencement and duration of payments, offsets for other benefits or payments and application procedures), of an insurance contract purchased by the Board of Trustees. Premiums for such insurance contract shall be paid from the fund. The disability benefit under this Section shall be in addition to any benefit to which an employee is entitled upon retirement or after leaving the service pursuant to Section
130.130.
[R.O. 2011 § 2.62.424; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. If an employee or his/her dependents are entitled to benefits under this Article and likewise to benefits under the Workers' Compensation law as a result of the same injury, the benefits payable under this Article shall, to the extent permitted by applicable law, be reduced in the manner prescribed by the Statutes of the State of Missouri, and if there is no applicable Statute, then the benefits shall be adjusted in accordance with Subsection
(B) of this Section.
B. The amount of benefit under Section
130.140 shall be reduced by the amount of monthly income paid under the Workers' Compensation law or attributed to the Workers' Compensation law. The Board of Trustees shall have full right to apply the provisions of the plan in such equitable manner as it determines.
C. Workers' Compensation benefits payable for reimbursement of medical
expenses or medically related expenses shall not be considered herein.
Where monthly income benefits under the Workers' Compensation law
are converted to lump sum payments, the amount of monthly income attributed
to such lump sum payment shall be the amount of monthly lifetime income
which can be actuarially provided by such lump sum payment determined
on the basis of the interest and mortality tables recommended by the
actuary and adopted by the Board of Trustees for such purpose.
[R.O. 2011 § 2.62.430; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Funeral Benefits.
1.
There shall be paid upon the death of any active employee a
funeral benefit in the sum equal to one (1) month's base salary then
in effect;
2.
There shall be paid upon the death of an employee retired under Section
130.130 or Section
130.160 a funeral benefit in the sum equal to one (1) month's base salary in effect at the time of death.
B. Lump Sum Death Benefit.
1.
The beneficiary of an active member of the fund who dies prior to becoming eligible for retirement under Section
130.130 or Section
130.160 shall be paid a death benefit of one hundred thousand dollars ($100,000.00); provided that such death benefit shall not exceed the incidental death benefit limitations of the Internal Revenue Code and the regulations thereunder.
2.
The death benefit under this Section shall be paid in a single
lump sum, or in such other form as the Board of Trustees shall approve,
as soon as practicable after the active member's death.
3.
An active member shall designate his/her beneficiary in accordance
with rules and procedures established, and upon forms provided, by
the Board of Trustees.
4.
The Board of Trustees may, but is not required to, purchase a life insurance policy to provide the death benefit under Subsection
(B)(1) of this Section. In the event the Board of Trustees purchases such a policy, the terms and conditions of the policy shall supersede the provisions of this Section (except Subsections
(B)(1),
(B)(5) and (B)(6) of this Section or as otherwise required under the Internal Revenue Code) to the extent inconsistent herewith.
5.
After an active member becomes eligible for retirement or terminates service entitled only to a deferred retirement benefit under Section
130.230(A), Subsection
(B) of this Section
130.190 shall be inapplicable, and death benefits, if any, shall be determined solely under the applicable provisions of Section
130.140.
C. There shall be paid upon the death of any employee eligible for retirement under Section
130.130 or Section
130.160, but who has not yet retired, the following:
1.
To the employee's surviving spouse, provided such employee shall
have been married to such surviving spouse for three (3) years or
more prior to the employee's death, a monthly benefit of fifty percent
(50%) of the monthly benefit the employee would have received if retired
until the death or remarriage of such surviving spouse;
2.
To the lawful guardian of such employee's surviving minor unmarried
child or children under the age of eighteen (18) years, provided such
child or children shall have been born within ten (10) months after
the employee's retirement or the employee's death in service, a monthly
benefit of ten percent (10%) of the monthly base salary as previously
described for such child or children until such child or children
attain the age of eighteen (18) years or marry; provided the combined
monthly payments to such surviving spouse and children shall in no
case exceed sixty percent (60%) of the monthly base salary, and in
which event the thirty-five percent (35%) maximum benefit for the
eligible children shall be prorated between them; provided further,
that if there is no surviving spouse entitled to benefits in any month,
the surviving spouse's benefit will be divided equally among the then
eligible children, but no child shall be entitled to more than fifty
percent (50%) of the surviving spouse's benefit.
D. There shall be paid upon the death of any employee retired under Section
130.130 or Section
130.160 the following:
1.
To the employee's surviving spouse, provided such employee shall
have been married to such surviving spouse for three (3) years or
more prior to the employee's retirement, a monthly benefit of fifty
percent (50%) of the monthly benefit the employee was receiving at
the employee's death until the death or remarriage of such surviving
spouse;
2.
To the lawful guardian of such employee's surviving minor unmarried
child or children under the age of eighteen (18) years, provided such
child or children shall have been born within ten (10) months after
the employee's retirement or the employee's death in service, a monthly
benefit of ten percent (10%) of the monthly base salary as previously
described for such child or children until such child or children
attain the age of eighteen (18) years or marry; provided the combined
monthly payments to such surviving spouse and children shall in no
case exceed sixty percent (60%) of the monthly base salary, and in
which event the thirty-five percent (35%) maximum benefit for the
eligible children shall be prorated between them; provided further,
that if there is no surviving spouse entitled to benefits in any month,
the surviving spouse's benefit will be divided equally among the then
eligible children, but no child shall be entitled to more than fifty
percent (50%) of the surviving spouse's benefit.
E. If any employee dies and there is no surviving spouse or children eligible to receive benefits, a refund as described in Section
130.210(A) shall be made to a designated beneficiary or, if none, then to his/her estate. This Section shall not apply with respect to employees who are in service on or after September 1, 2000 and have an investment account established under Section
130.340(A).
[R.O. 2011 § 2.62.440; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. There shall be paid to current retirees, except those receiving benefits under Section
130.140(A)(3), within the classifications scheduled below, and to current beneficiaries whose spouses retired within these classifications, the additional amounts scheduled; said amounts are in addition to any other benefits they are now entitled to receive:
|
Classification
|
Additional Benefit Per Month
|
---|
|
Retired prior to Oct. 1, 1982
|
$125.00
|
|
Retired after Oct. 1, 1982 but prior to Jan. 1, 1987
|
$25.00
|
B. Provide to all retirees and beneficiaries, other than children, who
retired prior to January 1, 1992, who are presently receiving benefits
and who terminated employment after eligibility for retirement, a
monthly benefit increase of twenty-five dollars ($25.00) effective
December, 1992. The minimum monthly payment for these retirees and
beneficiaries is three hundred twenty-five dollars ($325.00).
C. Provide to all retirees and beneficiaries, other than children, who
retired prior to January 1, 1997, who are presently receiving benefits
or will be receiving benefits prior to January 1, 1997, and who terminated
employment after eligibility for retirement, a monthly benefit increase
of twenty-five dollars ($25.00) effective January 1, 1997.
D. Provide to all retirees and beneficiaries, other than children, who
retired prior to July 1, 1999, who are presently receiving benefits
and who terminated employment after eligibility for retirement, a
monthly benefit increase of forty dollars ($40.00) effective January
1, 2000.
E. Provide to all retirees and beneficiaries, other than children, who
retired prior to July 1, 2000, who are presently receiving benefits
and who terminated employment after eligibility for retirement, a
monthly benefit increase of twenty-five dollars ($25.00) effective
January 1, 2002.
F. Provide to all retirees and beneficiaries, other than children, who
retired prior to January 1, 2004, who are presently receiving benefits
and who terminated employment after eligibility for retirement, a
monthly benefit increase of twenty-five dollars ($25.00) effective
July 1, 2004.
G. Provide to all retirees and beneficiaries, other than children, who
retired prior to January 1, 2007, who are presently receiving benefits
and who terminated employment after eligibility for retirement, a
monthly benefit increase of twenty-one dollars ($21.00) effective
July 1, 2007.
[R.O. 2011 § 2.62.450; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. If any employee shall cease to be an employee and not be eligible
for any other benefits, the employee shall receive a refund of the
aggregate amounts of his/her contributions to the fund, plus interest
thereon at the rate of two percent (2%) per annum to the date of leaving
the service.
B. A former employee who is eligible for deferred retirement benefits
may elect at any time prior to payment of any benefits to receive
a refund as above, with interest to date of refund and in lieu of
all other benefits.
C. This Section shall not apply with respect to employees who are in service on or after September 1, 2000 and have an investment account established under Section
130.340(A).
[R.O. 2011 § 2.62.460; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
Notwithstanding the provisions of this Article, all members
of the Police and Fire Departments heretofore retired (before October
29, 1956) shall continue to be paid the same benefits as awarded at
the time of retirement. Further, all employees leaving the service
before September 1, 2000 shall continue to be entitled to the same
benefits as determined under the provisions of this Article in effect
before September 1, 2000. Further, all employees who become permanently
and totally disabled before May 1, 2001 due to service-connected injuries,
non-service-connected injuries or illness, and the surviving spouses
and children of such employees who die due to such causes, shall continue
to be entitled to the same benefits, subject to the same terms, conditions,
requirements, limitations, rules and procedures as determined under
the provisions of this Article in effect before May 1, 2001.
[R.O. 2011 § 2.62.470; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Any employee having ten (10) years or more of service in either the
Fire Department or the Police Department, or a combination of service
in both departments, who subsequently leaves the service, shall be
eligible for the deferred retirement benefits as provided in this
Article.
B. An employee's investment account shall be one hundred percent (100%)
vested and non-forfeitable at all times.
C. Notwithstanding anything in this Article to the contrary, effective
September 1, 1974, a participant shall be one hundred percent (100%)
vested in his/her accrued benefit upon attaining normal retirement
age, if the employee has satisfied any reasonable and uniformly applicable
service or participation requirements or in the event that the plan
is terminated or contributions to the plan have been completely discontinued.
[R.O. 2011 § 2.62.480; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. This Section applies, effective for limitation years beginning after
December 31, 1994, regardless of whether any member is or has ever
been a member in another qualified plan maintained by the employer.
If any member is or has ever been a member in another qualified plan
maintained by the employer, or a Welfare Benefit Fund maintained by
the employer (as defined in Code Section 419(e)) under which amounts
attributable to post-retirement medical benefits are allocated to
separate accounts of key employees (as defined in Code Section 419(A)(d)(3)),
or in an individual medical account as defined in Code Section 415(l)(2)
maintained by the employer, or in a simplified employee pension as
defined in Code Section 408(k) maintained by the employer, that provides
an annual addition, this Section is also applicable to that member's
benefits.
1.
Maximum benefit. The annual benefit otherwise payable to a member
at any time will not exceed the maximum permissible amount. If the
benefit the member would otherwise accrue in a limitation year would
produce an annual benefit in excess of the maximum permissible amount,
the rate of accrual will be reduced so that the annual benefit is
equal to the maximum permissible amount. The maximum permissible amount
for a member who has not attained normal retirement age shall be applied
to the actuarial equivalent of the member's accrued benefit otherwise
payable under the plan at normal retirement age, based on the member's
applicable completed years of benefit service to date.
2.
Treatment of employee contributions. If a member makes voluntary employee contributions, or mandatory contributions as defined in Code Section 411(c)(2)(C), under the terms of this plan, the amount of such contributions is treated as an annual addition to a qualified defined contribution plan for purposes of Sections
130.240(A)(1) and
(B)(2).
B. This Section applies if any member is covered, or has ever been covered,
by another plan maintained by the employer, including a qualified
retirement plan, a Welfare Benefit Fund, a Welfare Benefit Fund maintained
by the employer (as defined in Code Section 419(e)) under which amounts
attributable to post-retirement medical benefits are allocated to
separate accounts of key employees (as defined in Code Section 419(A)(d)(3)),
an individual medical account, or a simplified employee pension that
provides an annual addition.
1.
More than one (1) defined benefit plan. If a member is, or has
ever been, covered under more than one (1) employer maintained defined
benefit plan, the sum of the member's annual benefits from all such
defined benefit plans may not exceed the maximum permissible amount.
A member's benefits in this plan shall be limited to an amount whereby
the member's employer-provided benefits under all defined benefit
plans ever maintained by the employer (determined as of the same age)
do not exceed the maximum permissible amount applicable at that age.
2.
Multiple plan fraction. For limitation years beginning before
January 1, 2000, if the employer at any time maintained one (1) or
more qualified defined contribution plans covering any member in this
plan, a Welfare Benefit Fund maintained by the employer (as defined
in Code Section 419(e)) under which amounts attributable to post-retirement
medical benefits are allocated to separate accounts of key employees
(as defined in Code Section 419(A)(d)(3)), an individual medical account
plan, or a simplified employee pension, the sum of the member's defined
contribution fraction and defined benefit fraction cannot exceed 1.0
in any limitation year, as follows:
a.
The annual addition that may be credited to the member's account
under the defined contribution plan for a limitation year will be
reduced so the 1.0 limit will not be exceeded. No member who is or
was a member in a qualified defined contribution plan of an employer
will accrue an annual benefit in excess of the amount as adjusted
by the Code Section 415(e) aggregated limitation as in effect prior
to the first limitation year which begins on or after January 1, 2000.
b.
For purposes of subparagraph (a), 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.
c.
Subparagraph (a) above shall be applicable only for limitation
years beginning before January 1, 2000. Benefit increases resulting
from the repeal of Code Section 415(e) will be provided to all current
and former members (with benefits limited by Code Section 415(e))
who have an accrued benefit under the plan immediately before the
first day of the first limitation year beginning in 2000.
3.
TRA '86 transition rule. If an individual was a member in one
(1) or more defined benefit plans of the employer as of the first
day of the first limitation year beginning after December 31, 1986,
the application of the limitations of this Article will not cause
such individual's maximum permissible amount under all such defined
benefit plans to be less than the individual's Tax Reform Act of 1986
(TRA '86) Accrued Benefit. The preceding sentence applies only if
such defined benefit plans met the requirements of Code Section 415
for all limitation years beginning before January 1, 1987.
C. The maximum annual addition made to a member's various accounts maintained under the plan for any limitation year beginning after December 31, 1986 will not exceed the lesser of the dollar limitation set forth in Section
130.240(C)(1) or the compensation limitation set forth in Section
130.240(C)(2), as adjusted in the remainder of this Section, as follows:
1.
Dollar limitation. For limitation years beginning prior to January
1, 1995, the dollar limitation is one-fourth of defined benefit dollar
limitation set forth in Code Section 415(b)(1)(A). For limitation
years beginning after December 31, 1994 and prior to January 1, 2002,
the dollar limitation is thirty thousand dollars ($30,000.00), as
adjusted by the Secretary of the Treasury in accordance with Code
Section 415(d). For limitation years beginning after December 31,
2001, the dollar limitation is forty thousand dollars ($40,000.00),
as adjusted by the Secretary of the Treasury in accordance with Code
Section 415(d).
2.
Compensation limitation. For limitation years beginning prior
to January 1, 2002, the compensation limitation is an amount equal
to twenty-five percent (25%) of the member's Section 415 compensation
for the limitation year. For limitation years beginning after December
31, 2001, the compensation limitation is an amount equal to one hundred
percent (100%) of the member's Section 415 compensation for the limitation
year. However, this limitation will not apply to any contribution
made for medical benefits within the meaning of Code Section 401(h)
or Code Section 419A(f)(2) after separation from service which is
otherwise treated as an annual addition under Code Section 415(l)(1)
or Code Section 419A(d)(2).
3.
Adjustments to maximum annual addition. In applying the limitation
on annual additions set forth herein, the following adjustments must
be made:
a.
Short limitation year. In a limitation year of less than twelve (12) months, the defined contribution dollar limitation in Section
130.240(C)(1) will be adjusted by multiplying it by the ratio that the number of months in the short limitation year bears to twelve (12).
b.
Plans with different anniversary dates. If a member participates
in multiple defined contribution plans sponsored by the employer with
different anniversary dates or plan years, the maximum annual addition
in this plan for the limitation year will be reduced by the annual
addition credited to the member's accounts in the other plans for
such limitation year.
c.
Plans with the same anniversary date. If a member participates
in multiple defined contribution plans sponsored by the employer which
have the same anniversary date and plan year, then
(1) If only one (1) of the plans is subject to Code
Section 412, annual additions will first be credited to the member's
accounts in the plan so subject; and
(2) If none of the plans are subject to Code Section
412, the maximum annual addition in this plan for a given limitation
year will either
(a) Equal the product of the maximum annual addition for such limitation year minus any other annual additions previously credited to the member's account, multiplied by the ratio that the annual additions which would be credited to a member's accounts hereunder without regard to the limitations in Section
130.240(C) bears to the annual additions for all plans described in this paragraph, or
(b) Be reduced by the annual additions credited to
the member's accounts in the other plans for such limitation year.
4.
Multiple plans and employers. All defined benefit plans (whether
terminated or not) of the employer will be treated as one (1) defined
benefit plan; all defined contribution plans (whether terminated or
not) of the employer will be treated as one (1) defined contribution
plan; and all affiliated employers will be considered a single employer.
5.
Adjustment for excessive annual additions. If for any limitation year beginning prior to July 1, 2007, the annual additions allocated to a member's account exceeds the maximum amount permitted under Section
130.240(C) above because of an allocation of forfeitures, a reasonable error in estimating a member's compensation, a reasonable error in determining the amount of elective contributions (within the meaning of Code Section 402(g)(3), or because of other limited facts and circumstances that the Commissioner finds justify the availability of the rules set forth in this Section, then such member's account will be adjusted as follows in order to reduce the excess annual additions:
a.
Return of elective deferrals and employee contributions. The
administrator will first return any elective deferrals and/or employee
contributions (whether such contributions are voluntary or mandatory),
and will distribute gains attributable thereto, to the extent that
would reduce the excess amount.
b.
Reallocation in the current year. After the return of contributions
and the distribution of gains specified in paragraph (a) above have
been made, and prior to the creation of a Section 415 Suspense Account
as set forth in paragraph (c) below, any excess will be reallocated
to all members who have not yet attained their maximum annual addition.
If necessary, the administrator will repeat the reallocation until
all members have reached their maximum annual addition.
c.
Remaining excess. If an excess still remains in a member's account,
then
(1) If the member is employed by the employer at the
end of the limitation year, the administrator will hold the excess
in the Section 415 Suspense Account and use it to reduce employer
contributions (including any allocation of forfeitures) for the next
limitation year (and each succeeding limitation year if necessary)
for the member; and
(2) If the member is not employed by the employer at
the end of a limitation year, the excess cannot be distributed to
the member but will be held in the Section 415 Suspense Account and
be used to reduce future employer contributions (including the allocation
of forfeitures) for all remaining members in the next limitation year
(and each succeeding limitation year if necessary).
d.
Earnings, losses and reallocation. If the Section 415 Suspense
Account is in existence at any time during a limitation year, it will
not share in the allocation of the earnings or losses of the Trust
Fund. If the Section 415 Suspense Account is in existence at any time
during a particular limitation year, all amounts in such account must
be allocated and reallocated to members' accounts before any employer
contributions or any employee contributions may be made to the plan
for that limitation year. Excess amounts in the Section 415 Suspense
Account may not be distributed to members or former members.
D. As used in this Section
130.240, and for all other purposes of the plan, the following words and phrases will have the following meanings:
1.
Annual Additions: The term "annual additions" means the sum of the following amounts credited to a member's account for the limitation year: (1) employer contributions; (2) employee contributions; (3) forfeitures; (4) amounts allocated, after March 31, 1984, to an individual medical account, as defined in Code Section 415(l)(2), which is part of a pension or annuity plan maintained by the employer; (5) amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, attributable to post-retirement medical benefits, allocated to the separate account of a key employee under a Welfare Fund, as defined in Code Section 419(e), maintained by the employer; and (6) amounts allocated, in taxable years beginning after April 1, 1980, under a simplified employee pension. Notwithstanding the foregoing, a member's annual additions do not include his/her rollovers, loan repayments, repayments of prior plan distributions or prior distributions of mandatory contributions, direct transfers of contributions from another plan to this plan, deductible contributions to a simplified employee pension plan, or voluntary deductible contributions. Annual additions shall not include any repayment of contributions (including interest thereon) to this plan pursuant to the provisions of Section
130.110 by reason of the application of Code Section 415(k)(3).
2.
Annual Benefit: The term "annual benefit" means a retirement
benefit under the plan that is payable annually in the form of a straight
life annuity.
a.
Actuarial adjustments to annual benefit. Except as otherwise
provided in subparagraph (2) below, a benefit payable in a form other
than a straight life annuity must be adjusted to be the actuarial
equivalent of a straight life annuity before applying the limitations
of this Article 6 as follows:
(1) For limitation years beginning before January 1,
1995, such actuarial equivalent will be based on the mortality factors
specified under the terms of the plan as in effect before such date
and is equal to the greater of the annuity benefit computed using
an interest rate of five percent (5%) or the interest rate(s) specified
for determining actuarial equivalence under the terms of the plan
as in effect before such date.
(2) For limitation years beginning on or after January
1, 1995, such actuarial equivalent is the greater of the annuity benefit
computed using the interest rate and mortality table in Section 1.2(d),
and the annuity benefit computed using a five percent (5%) interest
rate and the applicable mortality table in Section 1.2(f). In determining
such actuarial equivalent for a benefit form other than a non-decreasing
annuity payable for a period of not less than the life of the member
(or, in the case of a qualified pre-retirement survivor annuity, the
life of the surviving spouse), or decreases during the life of the
member merely because of
(a) 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
(b) The cessation or reduction of Social Security supplements
of qualified disability payments as defined in Code Section 401(a)(11),
"the applicable interest rate" as defined in Section 1.2(f) will be
substituted for "a five percent (5%) interest rate" in the preceding
sentence.
b.
Circumstances where no adjustment is required. No actuarial
adjustment to the annual benefit is required for (1) the value of
a qualified joint and survivor annuity, (2) benefits that are not
directly related to retirement benefits (such as the qualified disability
benefit, pre-retirement death benefits, and post-retirement medical
benefits), and (3) the value of post-retirement cost-of-living increases
made in accordance with Code Section 415(d) and regulation Section
1.415-3(c)(2)(iii). The annual benefit does not include any benefits
attributable to employee contributions or rollovers, or the assets
transferred from a qualified plan that was not maintained by the employer.
The annual benefit does not include any benefits attributable to mandatory
employee contributions or voluntary employee contributions or rollover
contributions, or the assets transferred from a qualified retirement
plan that was not maintained by the employer.
3.
Defined benefit dollar limitation and defined benefit compensation
limitation. The term "defined benefit dollar limitation" means one
hundred sixty thousand dollars ($160,000.00), as adjusted, effective
January first (1st) of each year, under Code Section 415(d) in such
manner as the Secretary shall prescribe, and payable in the form of
a straight life annuity. A limitation as adjusted under Code Section
415(d) will apply to limitation years ending with or within the calendar
year for which the adjustment applies. The term "defined benefit compensation
limitation" means one hundred percent (100%) of a member's highest
average compensation, payable in the form of a straight life annuity.
4.
Defined benefit fraction. The term "defined benefit fraction"
means a fraction, the numerator of which is the sum of the member's
projected annual benefit under all employer maintained defined benefit
plans (whether or not terminated), and the denominator of which is
the lesser of one hundred twenty-five percent (125%) of the dollar
limitation applicable to the member determined for the limitation
year under Code Section 415(b)(1)(A) and (d), or one hundred forty
percent (140%) of the highest average compensation, including any
adjustments under Code Section 415(b)(5), both adjusted as necessary
under paragraph (g). If the member was a member on the first day of
the first limitation year beginning after December 31, 1986, in one
(1) or more employer maintained defined benefit plans which were in
existence on May 6, 1986, the denominator of this fraction will not
be less than one hundred twenty-five percent (125%) of the sum of
the annual benefits thereunder which the member had accrued as of
the close of the last limitation year beginning before January 1,
1987, disregarding any changes in the terms and conditions of the
plan after May 5, 1986. The preceding sentence applies only if the
defined benefit plans individually and in the aggregate satisfied
the requirements of Code Section 415 for all limitation years beginning
before January 1, 1987.
5.
Defined contribution fraction. The term "defined contribution
fraction" means a fraction, the numerator of which is the sum of the
annual additions to the member's account under all defined contribution
plans (whether or not terminated) maintained by the employer for the
current and all prior limitation years (including annual additions
attributable to the member's voluntary employee contributions to this
and all other defined benefit plans (whether or not terminated) maintained
by the employer, and the annual additions attributable to all Welfare
Benefit Funds maintained by the employer (as defined in Code Section
419(e)) under which amounts attributable to post-retirement medical
benefits are allocated to separate accounts of key employees (as defined
in Code Section 419(A)(d)(3)) or individual medical accounts and simplified
employee pensions maintained by the employer), and the denominator
of which is the sum of the maximum aggregate amounts for the current
and all prior limitation years with the employer (regardless of whether
a defined contribution plan was maintained by the employer).
a.
Determination of maximum aggregate amount. The maximum aggregate
amount set forth in paragraph (e) in any limitation year is the lesser
of
(1) 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
(2) Thirty-five percent (35%) of the member's compensation
for such year.
b.
No re-computation required for pre-1987 annual additions. The
annual addition for any limitation year beginning before January 1,
1987, will not be recomputed to treat all employee contributions as
annual additions.
c.
Transition rule. If the employee was a member in the plan on
the first day of the first limitation year beginning after December
31, 1986, in one (1) or more defined contribution plans maintained
by the employer which were in existence on May 6, 1986, the numerator
of this fraction will be adjusted if the sum of this fraction and
the defined benefit fraction would otherwise exceed 1.0 under the
terms of this plan. Under the adjustment, an amount equal to the product
of (1) the excess of the sum of the fractions over 1.0 times (2) the
denominator of this fraction, will be permanently subtracted from
the numerator of this fraction. The adjustment is calculated using
the fractions as they would be computed as of the end of the last
limitation years beginning before January 1, 1987, and disregarding
any changes in the terms and conditions of the plan made after May
5, 1986, but using the Code Section 415 limitation applicable to the
first limitation year beginning on or after January 1, 1987.
6.
Highest average compensation. The term "highest average compensation"
means a member's average Code Section 415 compensation for the three
(3) consecutive years of service or one (1) year periods of service
with the employer that produces the highest average. If a member has
separated from service, the member's highest average compensation
will be automatically adjusted by multiplying such compensation by
the cost of living adjustment factor prescribed by the Secretary of
the Treasury under Code Section 415(d) in such manner as the Secretary
may prescribe. The adjusted compensation amount will apply to limitation
years ending with or within the calendar year of the date of the adjustment.
7.
Maximum permissible amount. The term "maximum permissible amount"
means the lesser of the defined benefit dollar limitation or the defined
benefit compensation limitation (both adjusted where required, as
provided in (a) and, if applicable, in (b) or (c) below).
a.
Service adjustment. If the member has fewer than ten (10) years
of participation in the plan, the defined benefit dollar limitation
shall be multiplied by a fraction, (i) the numerator of which is the
number of years (or part thereof) of participation in the plan and
(ii) the denominator of which is ten (10). In the case of a member
in a non-multi-employer plan who has fewer than ten (10) years of
service with the employer, the defined benefit compensation limitation
shall be multiplied by a fraction, (i) the numerator of which is the
number of years (or part thereof) of service with the employer and
(ii) the denominator of which is ten (10).
b.
Adjustment for benefits commencing prior to age sixty-two (62).
For limitation years prior to July 1, 2007, if the benefit of a member
begins prior to age sixty-two (62), the defined benefit dollar limitation
applicable to the member at such earlier age is an annual benefit
payable in the form of a straight life annuity beginning at the earlier
age that is the actuarial equivalent of the defined benefit dollar
limitation applicable to the member at age sixty-two (62) (adjusted
under (a) above, if required). The defined benefit dollar limitation
applicable at an age prior to age sixty-two (62) is determined as
the lesser of (1) the actuarial equivalent (at such age) of the defined
benefit dollar limitation computed using the interest rate and mortality
table (or other tabular factor) specified in the plan and (2) the
actuarial equivalent (at such age) of the defined benefit dollar limitation
computed using a five percent (5%) interest rate and the applicable
mortality table as defined for purposes of benefits payable in a form
subject to Code Section 417(e). Any decrease in the defined benefit
dollar limitation determined in accordance with this paragraph (b)
shall not reflect a mortality decrement if benefits are not forfeited
upon the death of the member.
c.
Adjustment for benefits commencing after age sixty-five (65).
For limitation years prior to July 1, 2007, if the benefit of a member
begins after the member attains age sixty-five (65), the defined benefit
dollar limitation applicable to the member at the later age is the
annual benefit payable in the form of a straight life annuity beginning
at the later age that is actuarially equivalent to the defined benefit
dollar limitation applicable to the member at age sixty-five (65)
(adjusted under (a) above, if required). The actuarial equivalent
of the defined benefit dollar limitation applicable at an age after
age sixty-five (65) is determined as the lesser of (1) the actuarial
equivalent (at such age) of the defined benefit dollar limitation
computed using the interest rate and mortality table (or other tabular
factor) specified in the plan and (2) the actuarial equivalent (at
such age) of the defined benefit dollar limitation computed using
a five percent (5%) interest rate assumption and the applicable mortality
table as defined for purposes of benefits payable in a form subject
to Code Section 417(e). For these purposes, mortality between age
sixty-five (65) and the age at which benefits commence shall be ignored.
d.
Minimum benefit permitted. Notwithstanding anything else in
this Section to the contrary, effective for limitation years beginning
after December 31, 1994, the benefit otherwise accrued or payable
to a member under this plan shall be deemed not to exceed the defined
benefit compensation limitation if the retirement benefits payable
for a plan year under any form of benefit with respect to such member
under this plan and under all other defined benefit plans (regardless
of whether terminated) ever maintained by the employer do not exceed
one thousand dollars ($1,000.00) multiplied by the member's number
of years of service or one (1) year periods of service or parts thereof
(not to exceed ten (10)) with the employer; and the employer has not
at any time maintained a defined contribution plan, a Welfare Benefit
Fund under which amounts attributable to post-retirement medical benefits
are allocated to separate accounts of key employees (as defined in
Code Section 419(A)(d)(3)), or an individual medical account in which
the member participated (for these purposes, voluntary or involuntary
employee contributions under a defined benefit plan are treated as
a separate defined contribution plan).
e.
Cost of living adjustment. Effective for limitation years beginning
after December 31, 1994, if the annual benefit payable to a terminated
member who has not received a complete distribution of his/her non-forfeitable
accrued benefit is limited by either the defined benefit dollar limitation
or by the defined benefit compensation limitation, such benefit may,
at the discretion of the sponsor and applied in a uniform manner,
be increased in accordance with cost of living adjustments under Code
Section 415(d).
8.
Projected annual benefit. The term "projected annual benefit"
means the annual benefit to which the member would be entitled assuming
(a) the member will continue employment until normal retirement age
(or current age, if later), and (b) the member's compensation for
the current limitation year and all other relevant factors used to
determine benefits will remain constant for all future limitation
years.
9.
TRA '86 accrued benefit. The term "TRA '86 accrued benefit"
means a member's accrued benefit determined as if he/she had separated
from service as of the close of the last limitation year beginning
before January 1, 1987, when expressed as an annual benefit within
the meaning of Code Section 415(b)(2). In determining a member's TRA
'86 accrued benefit, the following will be disregarded: any change
in the terms and conditions of the plan after May 5, 1986; and any
cost of living adjustments occurring after May 5, 1986.
10.
Year of participation. A member will be credited with a year
of participation (computed to fractional parts of a year) for each
accrual computation period in which the following conditions are met:
(1) the member is credited with at least the number of hours of service
(or period of service if the elapsed time method is used) for benefit
accrual purposes required under the plan to accrue a benefit for the
accrual computation period, and (2) the member is included as a member
under the eligibility provisions of the plan for at least one (1)
day of the accrual computation period. If these two (2) conditions
are met, the portion of a year of participation credited to the member
will equal the amount of benefit accrual service credited to the member
for such accrual computation period. A member who is permanently and
totally disabled within the meaning of Code Section 415(c)(3)(C)(i)
for an accrual computation period will receive a year of participation
with respect to that period. In addition, for a member to receive
a year of participation (or part thereof) for an accrual computation
period, the plan must be established no later than the last day of
such computation period. In no event will more than one (1) year of
participation be credited for any twelve (12) month period.
E. Effective for limitation years beginning on or after July 1, 2007,
the provisions of Code Section 415 and the Treasury Regulations issued
thereunder as applicable to governmental retirement plans are incorporated
by reference.
[R.O. 2011 § 2.62.500; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Applications for benefits to be paid under Section
130.140 shall be made upon forms provided by the Board of Trustees, and shall contain full information, from which the Board may determine the eligibility of the applicant. If an application for retirement is approved, no further compensation for services shall thereafter be paid by the City to such employee except for such part-time service, not exceeding one thousand one hundred (1,100) hours per year, to the City but in no event for services as a regular uniformed officer of the City Police or Fire Department.
B. Applications for distributions under Section
130.150 shall be made in accordance with rules and procedures established, and upon forms (or such other medium) provided by the Board of Trustees or, if authorized by the Board, the manager of the investment funds.
[R.O. 2011 § 2.62.520; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Required Beginning Date. The member's entire interest will be distributed,
or begin to be distributed, to the member no later than the member's
required beginning date.
B. Death Of Member Before Distributions Begin. If the member dies before
distributions begin, his/her entire interest will be distributed,
or begin to be distributed, no later than as follows:
1.
If the member's surviving spouse is the member's sole designated beneficiary, then subject to Section
130.260(B)(5) below distributions to the surviving spouse will begin by December thirty-first (31st) of the calendar year immediately following the calendar year in which the member died, or by December thirty-first (31st) of the calendar year in which the member would have attained age seventy and one-half (70 1/2), if later.
2.
If the member's surviving spouse is not the member's sole designated beneficiary, then subject to Section
130.260(B)(5) below distributions to the designated beneficiary will begin by December thirty-first (31st) of the calendar year immediately following the calendar year in which the member died.
3.
If there is no designated beneficiary as of September thirtieth
(30th) of the year following the year of the member's death, the member's
entire interest will be distributed by December thirty-first (31st)
of the calendar year containing the fifth (5th) anniversary of the
member's death.
4.
If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this Section, other than Section
130.260(B)(1), will apply as if the surviving spouse were the member.
5.
If the member dies before distributions begin and there is a designated beneficiary, distribution to the designated beneficiary is not required to begin by the date specified in Sections
130.260(B)(1) or
(2) if the member's entire interest is distributed to the designated beneficiary by December thirty-first (31st) of the calendar year containing the fifth (5th) anniversary of the member's death.
For purposes of this Section and Section
130.260(C), unless Section
130.260(B)(4) applies, distributions are considered to begin on the member's required beginning date. If Section
130.260(B)(4) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Section
130.260(B)(1). If annuity payments irrevocably commence to the member before the member's required beginning date (or to the member's surviving spouse before the date distributions are required to begin to the surviving spouse under Section
130.260(B)(1)), the date distributions are considered to begin is the date distributions actually commence.
C. Forms Of Distribution. Unless the member's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with Sections
130.270 and
130.280. If the member's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9) and the IRS regulations. Any part of the member's interest which is in the form of an individual account described in Code Section 414(k) will be distributed in a manner satisfying the requirements of Code Section 401(a)(9) and the IRS regulations that apply to individual accounts.
[R.O. 2011 § 2.62.522; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. General Annuity Requirements. If the member's interest is paid in
the form of annuity distributions under the plan, payments under the
annuity will satisfy the following requirements:
1.
The annuity distributions will be paid in periodic payments
made at intervals not longer than one (1) year;
2.
The distribution period will be over a life (or lives) or over a period certain not longer than the period described in Sections
130.280 or
130.290;
3.
Once payments have begun over a period certain, the period certain
will not be changed even if the period certain is shorter than the
maximum permitted;
4.
Payments will either be non-increasing or increase only as follows:
a.
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;
b.
To the extent of the reduction in the amount of the member's
payments to provide for a survivor benefit upon death, but only if
the beneficiary whose life was being used to determine the distribution
period described in Section (4) dies;
c.
To provide cash refunds of employee contributions upon the member's
death; or
d.
To pay increased benefits that result from a plan amendment.
B. Amount Required To Be Distributed By Required Beginning Date. The amount that must be distributed on or before the member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under Section
130.260(B)(1) or
(2) is the payment that is required for one (1) payment interval. The second (2nd) payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member's required beginning date.
C. Additional Accruals After First Distribution Calendar Year. Any additional
benefits accruing to the member in a calendar year after the first
distribution calendar year will be distributed beginning with the
first payment interval ending in the calendar year immediately following
the calendar year in which such amount accrues.
[R.O. 2011 § 2.62.525; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Joint Life Annuities Where The Beneficiary Is Not The Member's Spouse.
If the member's interest is being distributed in the form of a joint
and survivor annuity for the joint lives of the member and a non-spouse
beneficiary, annuity payments to be made on or after the member's
required beginning date to the designated beneficiary after the member's
death must not at any time exceed the applicable percentage of the
annuity payment for such period that would have been payable to the
member using the table in Q and A-2 of Section 1.401(a)(9)-6T of the
IRS regulations. If the form of distribution combines a joint and
survivor annuity for the joint lives of the member and a non-spouse
beneficiary and a period certain annuity, the requirement in the preceding
sentence will apply to annuity payments to be made to the designated
beneficiary after the expiration of the period certain.
B. Period Certain Annuities. Unless the member's spouse is the sole
designated beneficiary and the form of distribution is a period certain
and no life annuity, the period certain for an annuity distribution
commencing during the member's lifetime may not exceed the applicable
distribution period for the member under the uniform lifetime table
set forth in Section 1.401(a)(9)-9 of the IRS regulations for the
calendar year that contains the annuity starting date. If the annuity
starting date precedes the year in which the member reaches age seventy
(70), the applicable distribution period for the member is the distribution
period for age seventy (70) under the Uniform Lifetime Table set forth
in Section 1.401(a)(9)-9 of the IRS regulations plus the excess of
seventy (70) over the age of the member as of the member's birthday
in the year that contains the annuity starting date. If the member's
spouse is the member's sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain
may not exceed the longer of the member's applicable distribution
period, as determined under this Section 4.2, or the joint life and
last survivor expectancy of the member and the member's spouse as
determined under the Joint and Last Survivor Table set forth in Section
1.401(a)(9)-9 of the IRS regulations, using the member's and spouse's
attained ages as of the member's and spouse's birthdays in the calendar
year that contains the annuity starting date.
[R.O. 2011 § 2.62.527; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Member Survived By Designated Beneficiary. If the member dies before
the date distribution of his/her interest begins and there is a designated
beneficiary, the member's entire interest will be distributed, beginning
no later than the time described in Section 520(a)(2)(A) or 520(a)(2)(B),
over the life of the designated beneficiary or over a period certain
not exceeding
1.
Unless the annuity starting date is before the first distribution
calendar year, the life expectancy of the designated beneficiary determined
using the beneficiary's age as of the beneficiary's birthday in the
calendar year immediately following the calendar year of the member's
death; or
2.
If the annuity starting date is before the first distribution
calendar year, the life expectancy of the designated beneficiary determined
using the beneficiary's age as of his/her birthday in the calendar
year that contains the annuity starting date.
B. No Designated Beneficiary. If the member dies before the date distributions
begin and there is no designated beneficiary as of September thirtieth
(30th) of the year following the year of the member's death, distribution
of the member's entire interest will be completed by December thirty-first
(31st) of the calendar year containing the fifth (5th) anniversary
of the member's death.
C. Death Of Surviving Spouse Before Distributions To Surviving Spouse
Begin. If the member dies before the date distribution of his/her
interest begins, the member's surviving spouse is the member's sole
designated beneficiary, and the surviving spouse dies before distributions
to the surviving spouse begin, this Section 520(d) will apply as if
the surviving spouse were the member, except that the time by which
distributions must begin will be determined without regard to Section
520(a)(2)(A).
[R.O. 2011 § 2.62.530; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. Effective for distributions made after December 31, 1992, a distributee
may elect to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee
in a direct rollover, which is a payment by the plan to the eligible
retirement plan specified by the distributee.
1.
Eligible rollover distribution. An eligible rollover distribution
is any distribution of all or any portion of the balance to the credit
of the distributee, except that an eligible rollover distribution
does not include any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or for the joint
lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of ten (10) years
or more; any distribution to the extent such distribution is required
under Code Section 401(a)(9) of the Internal Revenue Service Code;
and effective for distributions after December 31, 2001, any hardship
distribution and any other distribution(s) that is reasonably expected
to total less than two hundred dollars ($200.00) during a year. For
purposes of the two hundred dollar ($200.00) rule, a distribution
from a designated Roth account and a distribution from other accounts
under that plan are treated as made under separate plans. Any portion
of a distribution that consists of after-tax employee contributions
which are not includible in gross income may be transferred only to
a.
For distributions made after December 31, 2001, a defined contribution
plan described in Section 401(a) or Section 403(a) of the Code that
agrees to separate accounting for amounts so transferred (and earnings
thereon), including separately accounting for the portion of such
distribution which is includible in gross income and the portion of
such distribution which is not so includible or a traditional individual
retirement account or annuity described in Section 408 (a) or (b)
of the Code (a "traditional IRA"); and
b.
Effective for distribution after December 31, 2006, to a qualified
plan or an annuity contract described in Section 401(a) and Section
403(b) of the Code respectively, that agrees to separate accounting
for amounts so transferred (and earnings therein), including separately
accounting for the portion of such distribution which is includible
in gross income and the portion of such distribution which is not
so includible or a traditional individual retirement account annuity
described in Section 408(a) or (b) of the Code (a "traditional IRA");
and
c.
Effective for distributions made after December 31, 2007, shall
also include a Roth individual retirement account or annuity described
in Section 408A of the Code (a "Roth IRA").
2.
Eligible retirement plan. An eligible retirement plan is an
individual retirement account described in Code Section 408(a), an
individual retirement annuity described in Code Section 408(b), an
annuity plan described in Code Section 403(a), or a qualified trust
described in Code Section 401(a), that accepts the distributee's eligible
rollover distribution. Effective for distributions made after December
31, 2001, an eligible retirement plan shall also mean an annuity contract
described in Code Section 403(b) and an eligible plan under Code Section
457(b) which is maintained by a State, political subdivision of a
State, or any agency or instrumentality of a State or political subdivision
of a State and which agrees to separately account for amounts transferred
into such plan from this plan. Effective for distributions made after
December 31, 2007, an eligible retirement plan shall also mean a Roth
IRA. The definition of eligible retirement plan shall also apply in
the case of a distribution to a surviving spouse.
3.
Distributee. A 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 nonspouse designated
beneficiary, in which case the distribution can only be transferred
to a traditional or Roth IRA established on behalf of the nonspouse
designated beneficiary for the purpose of receiving the distribution.
4.
Direct rollover. A direct rollover is a payment by the plan
to the eligible retirement plan specified by the distributee.
[R.O. 2011 § 2.62.600; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
The Board of Trustees of the Police and Firefighters' Retirement Fund shall be appointed as provided in Chapter
120, Article
XIV and shall have the exclusive authority to manage and control the Police and Firefighters' Retirement Fund for the exclusive benefit of members and their beneficiaries.
[R.O. 2011 § 2.62.610; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
Except to the extent otherwise provided for under Section
120.720, the Director of Finance of the City shall be custodian of all money, securities and other property of the Retirement Fund, subject to the control and direction of the Board of Trustees. The Director of Finance shall keep separate books and complete accounts of the Police and Firefighters' Retirement Fund, and the Director's books and records shall be subject to the inspection of the Board of Trustees or any of its members at all times.
[R.O. 2011 § 2.62.620; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. The Police and Firefighters' Retirement Fund shall consist of:
1.
The proceeds from any public funds as authorized by the City
Council not exceeding forty cents ($0.40) per one hundred dollars
($100.00) on the assessed value of all taxable property, as the same
may appear on the tax books of the City;
2.
Any property given or donated to the fund from any source;
3.
The earnings on all investments and all interest earned;
4.
The contributions paid into such fund by the employees, as provided
in this Article.
[R.O. 2011 § 2.62.630; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013; Ord. No.
6966 § 1(Exh A), 8-11-2014]
A. An individual investment account shall be established within the
Police and Firefighters' Retirement Fund by the Board of Trustees
for each employee who is in service on or after September 1, 2000,
in accordance with rules and procedures established, and upon forms
provided by the Board of Trustees. Investment accounts shall be separate
accounts described in the Internal Revenue Code, Section 414(k).
B. Each investment account shall be credited with all amounts contributed by the employee after April 30, 2001 under Section
130.120, subject to the limitations of the Internal Revenue Code, Section 415, and the regulations thereunder.
C. An employee who has an investment account established under Subsection
(A) of this Section and has completed ten (10) years of service shall have an amount credited to his/her investment account equal to:
1.
The present value of the employee's deferred retirement benefit under Section
130.140(A)(3) accrued as of the employee's vesting date based on deferral computed to the earlier of attainment of age fifty-five (55) by the employee or the date at which the employee would satisfy the requirement of Section
130.160, if the employee is assumed to continue in employment until that date, determined using the interest rate and the mortality table set forth in the definition of Actuarial Equivalence;
2.
Less the sum of:
a.
All amounts contributed by the employee under Section
130.120 prior to May 1, 2001 and on or before his/her vesting date, and
b.
All amounts that would have been contributed by the employee under Section
130.120 after April 30, 2001 and on or before his/her vesting date if such contributions were determined on the basis of the base salary, and
c.
Interest on each such amount from the date it was, or would
have been, contributed through the employee's vesting date at the
rate of seven percent (7%) compounded annually.
D. Amounts credited to an employee's investment account under Subsection
(B) or
(C) of this Section shall be invested as elected by the employee in one (1) or more investment funds made available by the Board of Trustees. As of any valuation date described in Subsection
(E) of this Section, an employee may elect to transfer all or part of the balance credited to such employee's investment account among such investment funds. Elections under this Subsection shall be made in accordance with rules and procedures established, and upon forms (or such other medium) provided by the Board of Trustees or, if authorized by the Board, the manager of the investment funds.
E. The assets of the Police and Firefighters' Retirement Fund credited
to investment accounts shall be valued on December thirty-first (31st)
each year and on such other dates as shall be determined by the Board
of Trustees or, if authorized by the Board, the manager of the investment
funds. Earnings or losses attributable to each investment fund since
the immediately preceding valuation date shall be allocated to each
employee's investment account based on the balance thereof invested
in such investment fund in accordance with rules and procedures established
by the Board of Trustees or, if authorized by the Board, the manager
of the investment funds.
F. Notwithstanding the foregoing, any employee who was in service prior to May 1, 2001 may elect not to have the amount set forth in Subsection
(C) transferred to an individual investment account, in accordance with rules and procedures established, and upon forms provided by the Board of Trustees. Any such election shall be made within sixty (60) days after May 1, 2001 (or, in the case of an employee who is not in service during the period beginning September 1, 2000 and ending May 1, 2001, the date the employee is reinstated in the Police or Fire Department). If such an employee does not so elect, the amount transferred to such employee's investment account shall be credited with interest from his/her vesting date through May 1, 2001 (or, in the case of an employee who is not in service during the period beginning September 1, 2000 and ending May 1, 2001, the date the employee is reinstated in the Police or Fire Department) at the rate of eight percent (8%) compounded annually.
[R.O. 2011 § 2.62.640; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
All disbursements of funds from the Retirement Fund established
pursuant to this Article shall be by voucher, stating its purpose
and the name of the payee. Such voucher shall be delivered to the
Director of Finance and constitute the Director of Finance's authority
to draw a check therefor upon the Retirement Fund for the amount therein
specified. All paid vouchers shall be subject to review and approval
by the Board. Retirement benefits shall be approved by the Board upon
retirement of each employee and annually thereafter.
[R.O. 2011 § 2.62.650; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
Effective as of January 1, 1954, neither the corpus or the income
of the fund created pursuant to this Article shall be diverted to
or used for any other than the exclusive benefit of the members or
their beneficiaries. Any person consenting to a diversion of any part
of the fund to any other purpose shall, upon conviction thereof, be
subject to a fine of not more than five hundred dollars ($500.00)
in addition to any other penalties prescribed by law.
[R.O. 2011 § 2.62.700; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
The benefits payable from the fund provided for by this Article
shall not be assignable, subject to counterclaim, recoupment or set
off, nor shall they be subject to assignment, garnishment, sequestration,
execution, injunction or any other decree, order, process or proceeding
in any court for the payment of any debt of the beneficiary and the
benefits shall be held and distributed for the purpose of this Article,
and for no other purpose whatsoever.
[R.O. 2011 § 2.62.710; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
A. In accordance with and subject to any terms, conditions and procedures set forth in guidelines adopted by the Board of Trustees, or as amended by the Board from time to time, loans shall be made available to all employees for whom an investment account has been established under Section
130.340 on a reasonably equivalent basis. Any such loan shall be treated as an investment of the employee's investment account, and all payments of principal and interest made by the employee shall be credited only to the employee's investment account.
B. Loans must be adequately secured and bear a reasonable rate of interest.
C. No loan shall exceed the lesser of
1.
Fifty thousand dollars ($50,000.00), reduced by the excess, if any, of the highest outstanding balance of any loans to the employee under this Section
130.380 and under any other retirement system maintained by the City during the one (1) year period ending on the day before such loan is made, over the outstanding balance of such loans on the day such loan is made, or
2.
One-half (1/2) of the employee's investment account.
The term and payment schedule of each loan shall satisfy the repayment period and level amortization requirements of the Internal Revenue Code, Section 72(p), and the regulations thereunder. Each loan shall be evidenced by a legally enforceable agreement which demonstrates compliance with the requirements of this Section
130.380(C).
D. In the event of default, the loan will be foreclosed, and the outstanding balance thereof may be offset against any portion of the employee's investment account used as security, upon the occurrence of a distributable event under Section
130.150.
[R.O. 2011 § 2.62.720; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
Any person who shall knowingly or willfully make any false statement
for the purpose of securing benefits under the terms of this Article,
or shall falsify, cause or permit to be falsified any record or records
of such retirement plan in any attempt to defraud, shall be guilty
of a misdemeanor and shall be punishable therefor under the laws of
the State, and all the person's rights, interests and privileges under
and by virtue of this Article shall be forfeited.
[R.O. 2011 § 2.62.730; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
If at any time hereafter the Retirement Fund created pursuant to this Article (disregarding the portion credited to investment accounts) shall be insufficient to pay in full all the benefits provided by this Article (other than Section
130.150) to those at the time being entitled to such benefits, the amount then on hand and available for payment of benefits shall be prorated among the beneficiaries so that all beneficiaries shall receive the same percentage of their full monthly benefits.
[R.O. 2011 § 2.62.740; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
The appropriation set forth in Section
130.330(A)(1) is the maximum which the Council is authorized to apply for the operation of the plan set forth in this Article but the Council may, in its sole discretion, appropriate a lesser amount upon receipt of a written report of the competent actuary that a lower rate will maintain the fund and provide the payment of benefits hereunder.
[R.O. 2011 § 2.62.750; Ord. No.
6838 § 1(Exh. A), 12-13-2010; Ord. No. 6925 § 1(Exh.
A), 9-9-2013]
In no event shall anything in this Article be held or construed
to impose upon the City any duty or liability in excess of the funds
appropriated for the purpose herein specified and the payment thereof
to the Board of Trustees.