[Ord. No. 1014, 6/8/2020]
As a governmental pension plan under Internal Revenue Code of
1986, the plan is obligated to operate in compliance with the provisions
of the Internal Revenue Code as they apply to governmental entities.
The employer intends that this plan shall meet all the pertinent requirements
established for a governmental plan (as defined in Internal Revenue
Code § 414(d)) under Internal Revenue Code § 401(a),
as amended, and the plan shall be interpreted, wherever possible,
to comply with the terms of said Code and all formal regulations and
rulings pertinent to the plan and trust agreement.
[Ord. No. 1014, 6/8/2020]
The following words and phrases are hereby introduced and defined
for purposes of this Subpart only:
Effective as of January 1, 1997, any person (other than an
employee of the recipient) who pursuant to an agreement between the
recipient and any other person ("leasing organization") has performed
services for the recipient (or for the recipient and related persons
determined in accordance with Code Section 414(n)(6)) on a substantially
full time basis for a period of at least one year, and such services
are under primary direction and control of the recipient.
The plan year.
[Ord. No. 1014, 6/8/2020]
1.
General Rule. Except as otherwise provided, this plan shall at all
times comply with the provisions of Code Section 415 and the regulations
thereunder, the terms of which are specifically incorporated herein
by reference. If a benefit payable to a participant under this plan
would otherwise exceed the limit under Code Section 415, the benefit
will be reduced to the maximum permissible benefit.
2.
Effective Date. If there is more than one permissible effective date
for any required change in the Code Section 415(b) provisions, then
the change shall be effective as of the latest permissible effective
date; however, any adjustment in the dollar limit under Code Section
415(b)(1)(A), whether required or permissible, shall take effect automatically
as of the earliest permissible effective date. The "applicable mortality
table" in Rev. Rul. 2001-62 effective from December 31,2002 through
December 31, 2007. Effective as of January 1, 2008 the "applicable
mortality table" and "applicable interest rate" are found in Rev.
Rul. 2007-67. The "applicable interest rate" and "applicable mortality
assumption" shall be automatically adjusted for changes in the law
and IRS announcements.
3.
No Reduction in Accrued Benefits. Notwithstanding the above, no change
in the limits under this Subpart shall reduce the benefit of any participant.
4.
Multiple Plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(b), and
if the aggregated benefits would otherwise exceed the limit under
Code Section 415(b), then benefits shall be reduced first under this
plan.
5.
Mandatory Contributions. Participant contributions are annual additions,
and any benefit attributable to participant contributions is not included
in the benefit subject to the limits of Code Section 415(b). This
subsection does not apply to contributions "picked-up" in accordance
with Code Section 414(h).
6.
Permissive Service Credit. Effective as of January 1, 1998, if a
participant makes a purchase of permissive service credit [within
the meaning of Code Section 415(n)] under the plan, the benefit derived
from the contributions made to purchase the service credit shall be
treated as part of the benefit subject to the limitations under this
section.
[Ord. No. 1014, 6/8/2020]
1.
Annual Additions. Except as otherwise provided, annual additions
(which include participant contributions) under this plan shall at
all times comply with the provisions of Code Section 415(c) and the
regulations thereunder, the terms of which are specifically incorporated
herein by reference. If an annual addition would otherwise exceed
the limit under Code Section 415(c), the excess annual addition will
be eliminated in accordance with methods permitted under Rev. Proc.
2008-50 Rev. Proc. 2006-27 prior to 2009) or its successor.
2.
Multiple Plans. If a participant also participates in one or more
other plans that are required to be aggregated with this plan for
purposes of determining the limits under Code Section 415(c), and
if the annual additions would otherwise exceed the limit under Code
Section 415(c), annual additions will first be reduced under the other
plan. If there is more than one other plan, annual additions will
first be reduced under the plan with the greatest amount of annual
additions.
3.
Effective Date. The limits under which Code Section 415(c) are adjusted
periodically in accordance with changes in the law or cost of living
adjustments without the need for a plan amendment. If there is more
than one permissible effective date for any required change relating
to Code Section 415(c), then the change shall be effective as of the
earliest permissible effective date.
4.
415(c) compensation. For the purposes of this section, "compensation"
includes only those items specified in Treas. Reg. § 1.415(c)-2(b)1
or (2) and excludes all items listed in Treas. Reg. § 1.415(c)-2(c),
the terms of which are specifically incorporated herein by reference.
Effective as of January 1, 2009, to the extent required by the Heroes
Earnings Assistance Tax Relief Tax Act of 2008 (HEART Act), differential
wage payments shall be included in compensation for the purposes of
applying the limits on annual additions under IRC Section 415(c).
This provision shall be applied to all similarly situated individuals
in a reasonably equivalent manner.
[Ord. No. 1014, 6/8/2020]
Leased employees and independent contractors are not eligible
to participate in this plan. Any person whom the Council does not
regard as being an employee shall not be eligible to participate.
[Ord. No. 1014, 6/8/2020]
Code Section 415(e) applied for limitation years beginning prior
to 2000. Code Section 415(e) does not apply for limitation years beginning
after January 1, 2000.
[Ord. No. 1014, 6/8/2020]
Compensation is subject to the limitation under Code Section
401(a)(17), which is $245,000 for the plan year beginning in 2010.
The limit is automatically adjusted periodically, without formal amendment,
for changes in the law and cost-of-living adjustments under Code Section
401(a)(17).
[Ord. No. 1014, 6/8/2020]
Upon the termination of this plan, or complete or partial discontinuance
of contributions (within the meaning of pre-ERISA Code Section 401(a)(7))
to this plan, each employee (who is not already 100% vested) as of
the date of such termination or discontinuance shall become vested
to the extent that the plan is funded.
[Ord. No. 1014, 6/8/2020]
1.
Notwithstanding any provision in this plan to the contrary, the distribution
of a participant's benefits shall be made in accordance with the requirements
of Code Section 401(a)(9). For purposes of complying with Code Section
401(a)(9), life expectancies were determined in accordance with the
1987 proposed regulations prior to January 1, 2003 and with the final
regulations (§ 1.401 (a)(9)-1 through § 1.401(a)(9)-9)
on or after January 1, 2003.
A.
Distribution of a participant's benefits shall begin not later than
April 1 of the calendar year following the later of:
B.
Distributions to a participant and his beneficiaries shall only be
made in accordance with the incidental death benefit requirements
of Code Section 401(a)(9)(G) and the regulations thereunder. If a
participant receives a joint and survivor annuity and the beneficiary
is not the participant's spouse, life expectancy shall be determined
using the Uniform Lifetime Table of Treasury regulation § 1.401(a)(9)-9.
C.
This section does not authorize the payment of any benefit in any
form not permitted under another provision of the plan.
D.
The terms of any annuity purchased with trust assets must comply
with the requirements of Code Section 401(a)(9) and the regulations
thereunder.
[Ord. No. 1014, 6/8/2020]
All rights and benefits, including elections, provided to a
participant in this plan may be subject to the rights afforded to
any "alternate payee" pursuant to a domestic relations order as provided
by applicable state law.
[Ord. No. 1014, 6/8/2020]
1.
This section applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the plan to the contrary that
would otherwise limit a distributee's election under this section,
a distributee may elect, at the time and in the manner prescribed
by the Plan Administrator, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
2.
DIRECT ROLLOVER
DISTRIBUTEE
ELIGIBLE RETIREMENT PLAN
ELIGIBLE ROLLOVER DISTRIBUTION
For purposes of this section, the following definitions shall apply:
A payment by the plan to the eligible retirement plan specified
by the distributee.
Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
Section 414(p), are distributees with regard to the interest of the
spouse or former spouse.
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. However, in the case of an eligible
rollover distribution to the surviving spouse, prior to January 1,
2002, an eligible retirement plan was an individual retirement account
or individual retirement annuity. Effective as of January 1,2002,
an "eligible retirement plan" includes 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 January 1,2008, a Roth IRA
is an "eligible retirement plan."
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: (i) any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually)
made for the life (or life expectancy) of the distributee or the joint
lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years or more;
(ii) any distribution to the extent such distribution is required
under Code Section 401(a)(9);(iii) the portion of any distribution
that is not includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities); and (iv) effective as of January 1, 2002, any hardship
distribution. Effective as of January 1, 2002 clause (iii) does not
apply to any after-tax participant contributions that are paid to
an individual retirement account or annuity described in Code Section
408(a) or (b), or to a qualified defined contribution plan described
in Code Section 401(a) or 403(a) or effective as of January 1, 2007,
any 403(b) annuity contract that agrees to separately account for
amounts so transferred, 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.
3.
Nonspouse Beneficiaries. Effective as of January 1, 2007, if a beneficiary
who is not a surviving spouse is entitled to receive what would otherwise
be an "eligible rollover distribution", the beneficiary may, in accordance
with Code Section 402(c)(11), make a trustee-to-trustee transfer of
that amount to an IRA or individual retirement annuity (other than
an endowment contract); provided that:
[Ord. No. 1014, 6/8/2020]
Notwithstanding any provision of this plan to the contrary,
contributions, benefits and service credit with respect to qualified
military service will be provided in accordance with Section 414(u)
of the Code.
[Ord. No. 1014, 6/8/2020]
Effective, January 1, 2006, in the event of a mandatory distribution
under the terms of this plan, if the participant does not elect to
have the distribution paid directly to an eligible retirement plan
specified by the participant in a direct rollover, or to receive the
distribution directly, then the distribution will be paid in a direct
rollover to an IRA designated by the plan.
[Ord. No. 1014, 6/8/2020]
Except where otherwise specifically provided to the contrary
in this plan, effective for deaths occurring on or after January 1,
2007, the plan will provide retirement benefits and service credit
to the extent that the plan is required and mandated by the Heart
Act to provide said benefits and/or service credit.
[Ord. No. 1014, 6/8/2020]
Forfeitures shall not be used to increase the benefits of any
participant in this plan but may be used to reduce employer contributions
to the plan.
[Ord. No. 1014, 6/8/2020]
Upon attainment of normal retirement age, a participant shall
be 100% vested in his normal retirement benefit.
[Ord. No. 1014, 6/8/2020]
The plan is maintained for the exclusive benefit of the participants
and beneficiaries.
[Ord. No. 1014, 6/8/2020]
Effective June 23, 2013, the terms spouse, husband, wife, widow
and widower shall include individuals married to persons of the same
sex if the individuals are legally married under state law. Also,
where the term widow appears, it shall be read to include widower.
