[Ord. 5/18/00; Ord. 6/13/02; Ord. 7/23/03; Ord. 6/15/05]
Each Participant who retires at his Normal Retirement Date shall
be entitled to receive a monthly retirement benefit determined as
of such date. Effective prior to July 1, 2000, the amount of his monthly
benefit shall be equal to the product of one and one-half percent
(1.5%) of his Average Compensation and the number of his Years of
Service. Effective July 1, 2000, the amount of his monthly benefit
shall be equal to the product of one and sixty-five hundredths percent
(1.65%) of his Average Compensation and the number of his Years of
Service. Notwithstanding the foregoing, effective July 1, 1992, each
Participant who is a member of (a) the Police Officers Union and is
employed by the Town of Little Compton Police Department or (b) the
Firefighters Union and is employed by the Town of Little Compton Fire
Department, and retires after twenty-five (25) Years of Service, shall
be entitled to receive a monthly retirement benefit equal to fifty
percent (50%) of his highest annual Compensation, which monthly retirement
benefit shall, effective July 1, 1997, be increased by two percent
(2%) for each Year of Service in excess of twenty-five (25) to a maximum
of sixty percent (60%) of his Compensation immediately prior to his
termination of Service. In no event shall a Participant who retires
at his Normal Retirement Date receive a monthly retirement benefit
of less than one twelfth (1/12) of the product of one hundred dollars
($100.00) and his Years of Service.
A Participant's right to his benefit shall be nonforfeitable
upon reaching Normal Retirement Age. It shall be payable under the
rules specified in Article Five. In no event will the Normal Retirement
Benefit be greater than the maximum permissible amount defined in
Section 9.1(b)(8).
Effective for the period from July 1, 1993 through June 30,
1997, a member of the Firefighters Union shall not accrue a benefit
for periods during which such Participant declined to make Employee
Mandatory Contributions. Effective July 1, 1997, Employee Mandatory
Contributions are no longer required to be made to the Plan by members
of the Firefighters Union. Effective for the period from July 1, 1994
through June 30, 2000, a member of the Police Officers Union who was
hired on or after July 1, 1994 shall not accrue a benefit for periods
during which such Participant declined to make Employee Mandatory
Contributions.
Effective July 1, 2005, the monthly retirement benefit of a
Participant who has retired and is receiving his monthly benefit shall
be increased annually by two percent (2%) as of July 1 of each year
to reflect a cost of living increase. Notwithstanding the preceding
sentence, the cost of living increase for a retired Participant who
received a cost of living increase as of the anniversary of his retirement
date shall be actuarially adjusted to take into consideration that
the cost of living increase is determined as of July 1 of each year.
Collective Bargaining Agreement Provisions Effective July 1,
2012.[1]
The following provisions were negotiated with the Town unions
(Fire, Municipal and Police) for the contracts effective 1 July 2012,
and remain in effect:
1. For employees hired on or after 1 July 2012, the cost of
living adjustment provided by the Pension Plan shall be applied only
to the first $25,000 of a retiree's pension.
The Committee voted unanimously to incorporate these provisions
into the Town Pension Plan.
Notwithstanding the foregoing provisions of this Section 4.1,
effective August 1, 2003, a Participant who is employed by the Town
of Little Compton Fire Department, who has attained age fifty (50)
and has completed at least twenty-five (25) Years of Service for accrual
purposes as of August 1, 2003, and separates from Service on or after
August 1, 2003 and prior to September 1, 2003 (or the last date on
which he is scheduled to work for the Employer, if earlier) shall
be entitled to an increase in his monthly normal retirement benefit
which results from using an additional four (4) Years of Service in
computing his normal retirement benefit as of his date of termination
of employment. In no event, however, shall any Participant be eligible
for the increased normal retirement benefit pursuant to this paragraph
unless he has executed the required Agreement and Release Form no
later than August 31, 2003. The effective date of the Participant's
retirement pursuant to this paragraph shall be September 1, 2003.
[1]
Editor's Note: The above provisions of current collective
bargaining agreements were acknowledged by the Pension Committee as
its 15 August 2016 meeting.
[Ord. 6/13/02]
A Participant who remains in the employ of the Employer after his Normal Retirement Date shall not be eligible to receive his benefit until his actual retirement date, except if a minimum distribution is required by the rules specified in Section 5.6. Any such Participant shall be entitled to a monthly benefit the Actuarial Equivalent of the monthly benefit which would have been payable under Section 4.1 had he retired at Normal Retirement Date. The monthly benefit calculated under this Section 4.2 shall be offset by the Actuarial Equivalent of benefit payments made to the Participant during the Plan Year under the minimum distribution rules.
Notwithstanding the foregoing provisions of this Section 4.2,
a Participant's Accrued Benefit is actuarially increased to take
into account the period after age 70 1/2 in which the Employee
does not receive any benefits under the Plan. The actuarial increase
begins on the April 1 following the calendar year in which the Employee
attains age 70 1/2 (January 1, 1997 in the case of an Employee
who attained age 70 1/2 prior to 1996), and ends on the date
on which benefits commence after retirement in an amount sufficient
to satisfy Section 401(a)(9) of the Code.
The amount of actuarial increase payable as of the end of the
period for actuarial increases must be no less than the actuarial
equivalent of the Employee's retirement benefits that would have
been payable as of the date the actuarial increase must commence plus
the actuarial equivalent of additional benefits accrued after that
date, reduced by the actuarial equivalent of any distributions made
after that date. The actuarial increase is generally the same as,
and not in addition to, the actuarial increase required for that same
period under Section 411 of the Code to reflect the delay in payments
after normal retirement, except that the actuarial increase required
under Section 401(a)(9)(C) of the Code must be provided even during
the period during which an Employee is in Code Section 411(a)(3)(B)
service.
For purposes of Section 411(b)(1)(H) of the Code, the actuarial
increase will be treated as an adjustment attributable to the delay
in distribution of benefits after the attainment of Normal Retirement
Age. Accordingly, to the extent permitted under Section 411(b)(1)(H)
of the Code, the actuarial increase required under Section 401(a)(9)(C)(iii)
of the Code may reduce the benefit accrual otherwise required under
Section 411(b)(1)(H)(i) of the Code, except that the rules on the
suspension of benefits are not applicable.
[Ord. 6/13/02; Ord. 7/23/03]
A Participant who separates from Service on or after the later
of his attainment of age fifty (50) and the completion of at least
twenty (20) Years of Service shall be entitled to elect to receive
his monthly retirement benefit either (a) commencing on his Normal
Retirement Date in an amount equal to the product of one and one-half
percent (1.5%) of his Average Compensation and the number of his Years
of Service, or (b) commencing on the first day of the month following
his satisfaction of the age and service requirements for Early Retirement
in an amount equal to the product of one and twenty-five hundredths
percent (1.25%) of his Average Compensation and the number of his
Years of Service.
Notwithstanding the foregoing provisions of this Section 4.3,
effective August 1, 2003, a Participant who is employed by the Town
of Little Compton Fire Department, who has attained age fifty (50)
and has completed at least twenty-five (25) Years of Service for accrual
purposes as of August 1, 2003, and separates from Service on or after
August 1, 2003 and prior to September 1, 2003 (or the last date on
which he is scheduled to work for the Employer, if earlier) shall
be entitled to an increase in his monthly normal retirement benefit
which results from using an additional four (4) Years of Service in
computing his normal retirement benefit as of his date of termination
of employment. In no event, however, shall any Participant be eligible
for the increased normal retirement benefit pursuant to this paragraph
unless he has executed the required Agreement and Release Form no
later than August 31, 2003. The effective date of the Participant's
retirement pursuant to this paragraph shall be September 1, 2003.
[Ord. 6/13/02; Ord. 6/3/04; amendment approved by the electorate
5/22/07]
(a)
Payment in the Event of Disability. If a Participant who has been
credited with ten (10) or more Years of Service shall separate from
Service with the Employer by reason of total and permanent disability,
the Participant shall be entitled to receive disability payments determined
as of the date of his disability retirement in an amount equal to
the normal retirement benefit accrued in accordance with Section 4.1.
(b)
Disability Retirement Benefit. As set forth in the Town Ordinance
of the Town of Little Compton, if a Participant who is employed by
the Town of Little Compton Police Department or the Town of Little
Compton Fire Department shall separate from Service with the Employer
by reason of occupational disability, the Participant shall be entitled
to receive a monthly occupational disability benefit in an amount
equal to sixty-eight percent (68%) of the Participant's Compensation
at the time of the occupational disability. The benefit shall be payable
monthly for the period of disability. A Participant who is receiving
an occupational disability benefit shall not be eligible to receive
the cost of living increases set forth in Section 4.1 to the occupational
disability benefit.
(c)
Time of Payment. The Participant may elect to have payment of benefits
commence on the first day of the month following the date on which
a determination of total and permanent disability is made by the Pension
Committee pursuant to the rules specified in Section 4.4(b).
(d)
Form of Payment. Payment shall be made in accordance with the provisions
of Article Five. Payments shall be deemed disability income until
the earlier of the first of the month in which the Participant dies,
recovers from disability or attains his Normal Retirement Date. If
such disability continues to his Normal Retirement Date, the Participant
shall be considered as retiring on his Normal Retirement Date, and
he shall continue to receive the same monthly benefit payments.
(e)
Effect of Recovery From Disability. If, upon recovery from disability,
a Participant reenters employment covered by this Plan, his Years
of Service up to the date of his retirement for disability shall be
restored and he shall commence to accrue benefits under the Plan based
upon his Years of Service both before his retirement for disability
and after his reemployment. However, the Plan benefits to which he
may become entitled thereafter shall be reduced by the Actuarial Equivalent
of the disability payments received.
(f)
Continuing Evidence of Disability. A disabled Participant may be
required to submit evidence of his continued eligibility for disability
income benefits at any time during disability retirement prior to
Normal Retirement Date, but not more than semi-annually, to determine
whether he is eligible for continuance of the disability pension.
If he engages in gainful employment (or if the Pension Committee determines
that he is no longer permanently disabled), his disability income
will cease. However, as of May 22, 2007, certain gainful employment
will be allowed without penalty. Commencing May 22, 2007, members
on disability pension may earn the difference between their disability
pension and 125% of the current salary for the position from which
they retired upon applying for disability. Their disability pensions
will be reduced by the amount earnings from gainful employment exceed
the aforementioned 125%. Each disabled Participant will submit a signed
statement on or before April 15 each year attesting to the amount
of earned income from gainful employment for the prior year together
with such other substantiating evidence as the Pension Committee may
require. In the event the disabled Participant fails to submit evidence
of his continued eligibility for such disability benefits when requested,
his disability pension will be discontinued until he submits such
evidence.
(g)
Definition of Gainful Employment. Gainful employment is defined as
earned income, as described in Title II of the Social Security Act
(see 42 USC 1382a). This description generally defines earned income,
received either in cash or in kind, as wages, net earnings from self-employment,
and certain royalties and honoraria.
[Ord. 6/13/02]
A Participant shall at all times have a nonforfeitable (vested)
right to his Employee Mandatory Contributions. Except as otherwise
provided with respect to Early or Normal Retirement, disability, or
death, a Participant shall have a nonforfeitable right to a percentage
of his Accrued Benefit derived from Employer contributions as determined
under the following schedule. The benefit shall be payable under the
rules specified in Article Five.
|
Years of Service
|
Vested Percentage
|
|---|---|
|
Less than 10 years
|
0%
|
|
10 years and thereafter
|
100%
|
If a Participant terminates employment for reasons other than
retirement, death or permanent and total disability prior to his completion
of ten (10) Years of Service, he shall be entitled to a refund of
his Employee Mandatory Contributions, together with five percent (5%)
interest. Distribution of this amount shall commence no later than
sixty (60) days following the close of the Plan Year in which the
Participant terminated employment. If a Participant terminates employment
following his completion of ten (10) Years of Service, he shall not
be entitled to a refund of his Employee Mandatory Contributions.
Any percentage of a Participant's Accrued Benefit to which
he is not entitled shall be forfeited upon the occurrence of a Break
in Service. A zero percent vested Participant shall be considered
to have received a complete distribution of his vested Accrued Benefit
as of the date of his first Break in
Service, and if he returns to the employment of the Employer
prior to incurring five (5) consecutive Breaks in Service, he shall
be considered to have repaid such distribution as of his completion
of one Year of Service after his resumption of employment.
