As used in this subpart, the following terms shall have the
meanings indicated:
The amount of a general government member's retirement benefit payable at his or her early retirement date, normal retirement date, or later date of actual retirement, determined under § 70-20 using such general government member's years of contributory service and final average wages as of such date.
The Armed Forces of the United States, including the Army
National Guard and the Air National Guard, the commissioned corps
of the Public Health Service, and any other category of persons designated
by the President in time of war or emergency. This definition shall
not apply for purposes of determining any general government member's
armed forces benefit from the plan.
The special benefit provided to general government members who left service with the Town to perform service in the armed forces as described in § 70-20D.
The individual, who shall be related to the general government member, designated by the general government member as his or her designated dependent for purposes of receiving benefits from the plan upon the general government member's death as described in § 70-25.
The Board of Directors of the Town.
The full and partial years of service during which a general government member contributes to the plan in accordance with § 70-17B, or during which such general government member is employed by the Town but is not required to contribute to the plan due to unpaid leave, workers' compensation or when a general government member has reached the maximum contribution years.
The first day of the month coinciding with or next following the date on which the general government member elects to retire following the date on which the general government member attains his or her normal retirement date as described in § 70-18F.
The defined contribution retirement plan set forth in Article IV of this chapter.
A general government member's unmarried child (or children):
The first day of any month following the date on which a
general government member has attained age 55 and completed 10 years
of contributory service, but occurring before the general government
member's normal retirement date.
The Town.
The average of a general government member's wages over his
highest paid three calendar years of contributory service with the
Town. If a general government member retires prior to the end of a
calendar year, his or her wages for any full months of employment
during such final partial calendar year of employment shall be included
in the determination of the general government member's final average
wages in addition to the general government member's wages during
his or her three highest paid calendar years of contributory service.
If any such additional months of employment are considered in calculating
final average wages, final average wages shall be determined by:
Dividing:
The general government member's wages over the highest paid
three calendar years of contributory service with the Town, plus the
wages earned during any full months of employment during the general
government member's final year of employment; by
Thirty-six, plus the number of full months of employment in
the general government member's final year of employment; and
Multiplying the result by 12.
A member who is employed by the Town as a general government
employee.
The Internal Revenue Code of 1986, as such has been and as
such may be amended from time to time, and any regulations promulgated
thereunder and interpretations thereof as such may affect this Subpart
B.
The contributions required to be made to the plan as a condition
of a general government member's employment with the employer.
If authorized by the Board of Directors pursuant to an agreement
with the appropriate collective bargaining agent, or through separate
approval with regard to an unaffiliated employee:
The first day of the month coinciding with or next following
the date on which the general government member reaches normal retirement
age.
The board described in § 70-51 responsible for the management, administration and control of the plan.
The Pension Ordinances of the Town, as they may be amended
and restated from time to time.
The twelve-month period beginning each July 1 and ending
each June 30.
The later of:
A general government member's commencement of normal, early, special or deferred retirement benefits following his or her termination of employment in accordance with § 70-18.
A separate fund consisting of contributions made by general
government members of the plan, appropriations made to the plan by
the Board of Directors, and earnings and losses thereon.
The person, if any, to whom the general government member
is lawfully married.
The Town of Manchester, Connecticut.
The individual elected to the office of Town Clerk as such
office is constituted by the Town Charter and/or the State of Connecticut
General Statutes.
Any employee of the Town who is not a member of a collective
bargaining unit recognized by the Town for purposes of this plan.
A general government member's salary or wages, including
overtime pay, any salary reduction amounts under Sections 125, 414(h)
and 457 of the Internal Revenue Code, and qualified transportation
fringes as set forth in Section 132(f)(4) of the Internal Revenue
Code, but exclusive of workers' compensation, any maintenance payments
and other special payments or remuneration. Wages shall not include
wages of any general government member in excess of $275,000, increased
as permitted under Section 401(a)(17) of the Internal Revenue Code,
to reflect cost-of-living adjustments.
Active military service during periods of war or armed conflict
measured in completed calendar months.
A.
Participation. Each employee hired before July 1, 2004, who is an
unaffiliated employee of the Town or a member of a collective bargaining
unit that has an approved agreement with the Town, other than a public
works employee, and each public works employee hired before July 1,
2007, shall participate in this Subpart B of the plan.
B.
Exclusions. Each employee hired on or after July 1, 2004, who is
an unaffiliated employee of the Town or a member of a collective bargaining
unit that has an approved agreement with the Town, other than a public
works employee, and each public works employee hired on or after July
1, 2007, shall participate in the Defined Contribution Plan and shall
be permanently ineligible to participate in this plan.
A.
General government members shall be required to make mandatory contributions
to the plan from their wages in accordance with the provisions of
this Subpart B.
B.
Mandatory contributions shall be deposited into the Retirement Allowance
Fund. A general government member shall deposit no money, other than
authorized payroll deductions, into the Retirement Allowance Fund.
(2)
A general government member shall be required to authorize the Town
to deduct mandatory contributions in an amount equal to 5.9% of his
or her wages (or such other amount as specified in a collective bargaining
agreement) each pay period for purposes of contributing such amount
to the plan.
(3)
General government members with 33 1/3 years of contributory service
or more with the Town shall not be required to make any further mandatory
contributions to the plan.
C.
Picked-up contributions.
(1)
Pursuant to the provisions of Section 414(h)(2) of the Internal Revenue Code, the Town shall pick up and pay the mandatory contributions described in Subsection B above, which would otherwise be payable by general government members on an after-tax basis. Such picked-up mandatory contributions shall be treated as contributions made by the employer for purposes of determining the amounts of federal income tax to withhold from each general government member's salary.
(2)
Mandatory contributions picked up by the Town shall be paid from
the same source of funds used for the payment of salaries to general
government members. A deduction shall be made from each general government
member's pay equal to the amount of the general government member's
mandatory contributions to be picked up by the Town, provided that
such deduction shall not reduce the general government member's pay
for purposes of computing benefits under this plan.
(3)
Mandatory contributions picked up by the Town shall be credited to
a separate account within each general government member's individual
contribution account, so that amounts contributed by the general government
member on an after-tax basis before July 1, 1991, may be distinguished
from the mandatory contributions picked up by the Town on behalf of
the general government member.
A.
A general government member shall be eligible to retire and begin
receiving benefits from the plan on his or her normal retirement date.
B.
A general government member may be eligible to retire on a date other
than his or her normal retirement date to the extent provided under
this Subpart B.
C.
A general government member who wishes to retire and begin receiving
benefits from the plan shall be required to make written application
to the Pension Board at least 30 days prior to his or her desired
normal, early, special or deferred retirement date. Benefits shall
not commence until 30 days after a completed application is received
and approved by the Pension Board. A general government member must
include with such retirement application evidence of his or her date
of birth, and, if applicable, evidence of the date of birth of his
or her spouse or beneficiary.
D.
Normal retirement. A general government member shall be eligible
to retire and begin receiving benefits from the plan on his or her
normal retirement date.
E.
Early retirement. A general government member shall, with the approval
of the Board of Directors, be eligible to retire and begin receiving
benefits from the plan on his or her early retirement date.
F.
Deferred retirement. If a general government member continues to
work beyond his or her normal retirement date, pension benefits shall
be deferred until his or her deferred retirement date, which shall
be the first day of the month following the date of his or her termination
of employment.
A.
Service purchase if attained normal retirement age prior to December
31, 2010.
(1)
A general government member who attained normal retirement age prior to December 31, 2010, shall be permitted to purchase additional years of contributory service to be considered in calculating such general government member's benefit as described in this Subsection A.
(2)
A general government member who is eligible for a payout of accrued sick, vacation or annual leave upon retirement may elect to purchase additional years of contributory service with such leave. A general government member may purchase one year of contributory service for purposes of eligibility and benefit accrual in exchange for 50 days of accrued sick, vacation or annual leave for which he or she would be paid at retirement. The maximum number of years of contributory service that may be purchased under this Subsection A(2) is three years.
(3)
A general government member may also elect to purchase additional
years of contributory service with amounts transferred to the plan
from a Section 403(b) plan or Section 457(b) plan of a governmental
employer. A general government member may purchase one year of contributory
service for purposes of eligibility and benefit accrual in exchange
for transferring to the plan an amount equal to 30% of the general
government member's current wages for the year in which the additional
contributory service is purchased.
B.
Service purchase for wartime service.
(1)
A general government member shall be eligible to purchase one year
of contributory service for each year of his or her wartime service,
up to a maximum of four years. Such contributory service will be purchased
at a rate and in a manner determined by the Town's actuary and the
Pension Board.
(2)
A general government member may purchase years of contributory service for wartime service with amounts transferred to the plan from a Section 403(b) plan or Section 457(b) plan of a governmental employer. A general government member may purchase one year of contributory service for each year of wartime service for purposes of benefit accrual in exchange for transferring to the plan an amount equal to 30% of the general government member's current wages for the year in which the additional contributory service is purchased. The maximum amount of wartime service that may be purchased under this Subsection B(2) shall be one year of contributory service.
C.
Service credit for periods of qualified military service. A general
government member who performs qualified military service [as that
term is defined in Section 414(u) of the Internal Revenue Code] shall
be entitled to receive contributory service credit for time spent
in qualified military service as required under Section 414(u) of
the Internal Revenue Code. The crediting of such contributory service
shall be contingent upon the general government member's payment of
any general government member contributions due for such period, as
permitted under Section 414(u) of the Internal Revenue Code.
A.
The amount of a general government member's retirement benefit shall
be determined under this Subpart B.
B.
Notwithstanding the provisions of this subpart, in no event will a general government member's benefit from the plan exceed the limitation on annual benefits set forth in § 70-24.
C.
Normal retirement benefit.
(1)
A general government member who retires on his or her normal retirement date under §§ 70-18D and 70-22A shall be entitled to an annual benefit equal to 2% of his or her final average wages, multiplied by his or her number of full and partial years of contributory service (not to exceed 33 1/3 years). The general government member's monthly benefit shall be equal to 1/12 of such amount.
(2)
Notwithstanding the foregoing, if authorized by the Board of Directors pursuant to an agreement with the appropriate collective bargaining agent, or through separate approval with regard to an unaffiliated employee, a general government member who retires on his or her normal retirement date under §§ 70-18D and 70-22A shall be entitled to a monthly pension determined in the same manner described in Subsection C(1) above, except the maximum number of years of contributory service considered for purposes of calculating his or her benefit shall be 35 years.
D.
Armed Forces benefit.
(1)
A general government member shall be eligible to receive a benefit for periods of military service performed prior to October 13, 1996. This benefit shall be in addition to the benefit determined under Subsection C above.
(2)
Such benefit shall be payable for any period:
(a)
Occurring prior to October 13, 1996;
(b)
During which the general government member left employment with
the Town to perform compulsory military service in the Armed Forces,
including the Merchant Marine Service of the United States; and
(c)
During which a state of hostilities existed between the United
States and any other country.
(3)
Such additional benefit shall be equal to 1% of the general government member's annual rate of pay on the date he or she left employment with the Town for such compulsory military service, multiplied by his or her full and partial years of compulsory military service meeting the requirements of Subsection D(2) above.
E.
Early retirement benefit.
(1)
A general government member who retires on his or her early retirement date shall be entitled to a benefit calculated under Subsection C based on the general government member's full and partial years of contributory service as of his or her early retirement date, reduced as follows for early commencement:
(a)
Five-twelfths percent (0.4167%) for each full month by which
the general government member's early retirement date precedes the
date on which such general government member will attain age 62; and
(b)
One-fourth percent (0.25%) for each full month by which the
general government member's early retirement date is after the date
the general government member attains age 62, but precedes the date
such general government member will attain age 65.
(2)
Notwithstanding the foregoing, if authorized by the Board of Directors pursuant to an agreement with the appropriate collective bargaining agent, or through separate approval with regard to an unaffiliated employee, a general government member who retires on his or her early retirement date shall be entitled to a benefit calculated under this Subsection E based on the general government member's full and partial years of contributory service as of his or her early retirement date, reduced for early commencement by 0.5% for each full month between the general government member's early retirement date and his or her normal retirement date.
F.
Deferred retirement benefit. A general government member who continues to work beyond his or her normal retirement date in accordance with § 70-18F shall be entitled to a benefit calculated under Subsection C based on the general government member's full and partial years of contributory service performed as of his or her deferred retirement date.
G.
Maximum retirement benefit.
(2)
Notwithstanding Subsection G(1) above, the maximum benefit payable to a general government member from this plan, if authorized by the Board of Directors pursuant to an agreement with the appropriate collective bargaining agent, shall be 70% of the general government member's final average wages.
H.
I.
Cost of living adjustment.
(1)
Notwithstanding any other provision of this § 70-20, the monthly pension benefit paid to a retired general government member, or his or her beneficiary, who was receiving benefits on July 1, 1998, shall be increased by 2% of the benefit being paid on June 1, 2005, provided that the general government member completed at least 15 years of contributory service.
(2)
Notwithstanding any other provision of this § 70-20, effective July 1, 2007, the monthly pension benefit paid to a retired general government member, or his or her beneficiary, who was receiving benefits on July 1, 2000, shall be increased by 2% of the benefit being paid on June 1, 2007, provided that the general government member completed at least 15 years of contributory service.
(3)
Notwithstanding any other provision of this § 70-20, effective July 1, 2009, the monthly pension benefit paid to a retired general government member, or his or her beneficiary, who was receiving benefits on July 1, 2002, shall be increased by 2% of the benefit being paid on July 1, 2009, provided that the general government member completed at least 15 years of contributory service.
(4)
Notwithstanding any other provision of this § 70-20, effective July 1, 2011, the monthly pension benefit paid to a retired general government member, or his or her beneficiary, and who was receiving benefits on July 1, 2004, shall be increased by 1% of the benefit being paid on July 1, 2011, provided that the general government member completed at least 15 years of contributory service prior to termination of employment with the Town.
(5)
Notwithstanding any other provision of this § 70-20, effective July 1, 2013, the monthly pension benefit paid to a retired general government member, or his or her beneficiary, and who was receiving benefits on July 1, 2006, shall be increased by 1% of the benefit being paid on July 1, 2013, provided that the general government member completed at least 15 years of contributory service prior to termination of employment with the Town.
(6)
Notwithstanding any other provision of this § 70-20, effective July 1, 2015, the monthly pension benefit paid to a retired general government member, or his or her beneficiary, and who was receiving benefits on July 1, 2008, shall be increased by 1% of the benefit being paid on July 1, 2015, provided that the general government member completed at least 15 years of contributory service prior to termination of employment with the Town.
(7)
Notwithstanding any other provision of this § 70-20, effective July 1, 2017, the monthly pension benefit paid to a retired general government member, or his or her beneficiary, and who was receiving benefits on July 1, 2010, shall be increased by 1% of the benefit being paid on July 1, 2017, provided that the general government member completed at least 15 years of contributory service prior to termination of employment with the Town.
(8)
Notwithstanding any other provision of § 70-20, effective July 1, 2019, the monthly benefit paid to a retired member or his or her beneficiary, and who was receiving benefits on July 1, 2004, shall be increased by 1% of the benefit being paid on July 1, 2019 provided that the member completed at least 15 years of service prior to termination of employment with the Town.
[Added 6-11-2019]
(9)
Notwithstanding any other provision of § 70-20, effective July 1, 2021, the monthly benefit paid to a retired member or his or her beneficiary, and who was receiving benefits on July 1, 2004, shall be increased by 1% of the benefit being paid on July 1, 2021, provided that the member completed at least 15 years of service prior to termination of employment with the Town.
[Added 7-13-2021]
A.
A general government member's eligibility for a retirement benefit
due to his or her disability, and the amount of any such benefit,
shall be determined under this Subpart B.
B.
Disability retirement benefits and workers' compensation.
(1)
In the event that a general government member becomes disabled and
is entitled to a lump sum workers' compensation settlement payment
from the Town due to his or her disability in lieu of any other benefits
under the plan, the Pension Board may direct the lump sum payment
of such settlement amount, or any portion thereof identified by the
actuary for the plan as attributable to benefits under the plan, to
such general government member.
(2)
Any such lump sum under Subsection B(1) shall be paid from the plan:
(a)
To the general government member, in a single lump sum payment;
or
(b)
To the Town, in a single lump sum payment, in which case the Town shall make the workers' compensation settlement payment from its general assets and the payment from the plan under this Subsection B(2)(b) shall represent reimbursement to the Town of the general government member's workers' compensation settlement payment.
(3)
General government members who are eligible to receive payment in
accordance with the Connecticut Workers' Compensation Act,[1] and who have said payments suspended or terminated for
failure to adhere to the provisions of the Workers' Compensation Act,
shall not be eligible to receive disability payments from the plan.
[1]
Editor's Note: See Connecticut General Statutes § 31-275
et seq.
C.
Application for disability payments; term of payments.
(1)
A general government member who wishes to apply for disability benefits
from the plan must make an application to the Pension Board within
one year of the date on which his or her active service with the Town
terminates due to his or her becoming disabled. Upon receipt of such
application, the Pension Board shall determine:
(2)
A general government member who is found to be entitled to receive a disability benefit under Subsection C(1) above shall begin receiving such benefit on the first day of the month coincident with or next following the date on which the general government member's application is approved by the Pension Board.
(3)
A general government member's last disability benefit payment shall
be due and payable on the earlier of:
D.
Eligibility for disability payments. A general government member
who becomes disabled shall have the option, to be exercised by filing
a written application with the Pension Board, to receive monthly disability
payments while he or she is disabled, provided that he or she:
(1)
Becomes disabled during the performance of essential duties pertaining
to employment by the Town and while acting in the scope of such employment,
regardless of his or her years of contributory service; or
(2)
Becomes disabled under circumstances unrelated to employment while
employed by the Town, and has completed at least 15 years of contributory
service as of the date he or she becomes disabled.
E.
Amount of disability benefit.
(1)
A general government member shall be entitled to monthly payments
while he or she is disabled equal to 1/12th of the greater of:
(a)
Fifty percent of the general government member's final average
wages as of the date he or she became disabled, as determined by the
Pension Board in its discretion; or
(b)
Two percent of the general government member's final average wages as of the date he or she became disabled, as determined by the Pension Board in its discretion, multiplied by his or her full and partial years of contributory service (to a maximum of 33 1/3 years). For purposes of determining a general government member's benefit under this Subsection E(1)(b), years of contributory service shall be determined as of the date the general government member becomes disabled.
(2)
Notwithstanding the foregoing, if authorized by the Board of Directors pursuant to an agreement with the appropriate collective bargaining agent, or through separate approval with regard to an unaffiliated employee, a general government member shall be entitled to monthly payments while he or she is disabled as determined under Subsection E(1) above, except the maximum number of years of contributory service considered for purposes of calculating his or her benefit under Subsection E(1)(b), shall be 35 years.
F.
Initial and continuing evidence of disability.
(1)
The Pension Board shall have the right to require, on each anniversary
of the date of commencement of disability payments to a general government
member, evidence of the continuance of such general government member's
disabled status.
(2)
As part of this process, the Pension Board may require the general
government member to submit to a medical exam by a physician of the
Pension Board's choosing to determine if the general government member
continues to be disabled.
(3)
If the general government member fails to present evidence satisfactory
to the Pension Board that the general government member continues
to be disabled on each such anniversary, or fails to submit to a medical
examination as required by the Pension Board, the general government
member's disability benefits shall be terminated with respect to the
general government member retroactive to the date of such anniversary.
(4)
If the Pension Board determines that a general government member
is no longer disabled, the general government member shall have the
right to request a hearing before the Pension Board, at which he or
she may present further evidence of his or her disabled status. Any
such hearing will be held by the Pension Board within a reasonable
period of time following the receipt of a written request for a hearing
from the general government member.
A.
Commencement of benefits. Payment of a general government member's
accrued benefit shall begin no later than the 60th day of the plan
year following the plan year in which the general government member's
normal retirement date, or, if later, the general government member's
actual retirement date, occurs. In all cases, distributions shall
commence no later than the general government member's required beginning
date.
B.
Distribution of benefits.
(2)
All distributions required under this section shall be determined
and made in accordance with the regulations under Section 401(a)(9)
of the Internal Revenue Code, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-6 of the regulations of
the Internal Revenue Code.
(3)
Any additional benefits accruing to the general government member
after his or her required beginning date shall be distributed as a
separate and identifiable component of the annuity beginning with
the first payment interval ending in the calendar year immediately
following the calendar year in which such amount accrues.
(4)
Any amount paid to a child of the general government member will
be treated as if it had been paid to the surviving spouse of the general
government member if the amount becomes payable from the plan on the
date the child reaches the age of majority (or other designated event
permitted under the Internal Revenue Code).
A.
Normal form of benefit. The normal form of benefit shall be a single
life annuity. Such single life annuity shall provide an unreduced
monthly payment during the lifetime of the general government member,
with the last payment made for the month in which the general government
member dies.
B.
Optional forms.
(1)
A general government member may request that benefits payable from the plan be paid in one of the following optional forms rather than the normal form described in Subsection A:
(a)
A 100% joint and survivor annuity, with reduced monthly benefit
payments payable to the general government member during his or her
life and payments made following the general government member's death
in the same amount to the general government member's beneficiary
for the remainder of such beneficiary's life.
(b)
A 50% joint and survivor annuity, with reduced monthly benefit
payments payable to the general government member during his or her
life and with payments made following the general government member's
death in an amount equal to 50% of the monthly benefit payable to
the general government member's beneficiary for the remainder of such
beneficiary's life.
(2)
A general government member who elects to receive his or her benefit
in an optional form must make such election and designate his or her
beneficiary on the form required by the Pension Board. Such form must
be filed with the Pension Board at least 30 days prior to the general
government member's desired retirement date.
(3)
If a general government member's beneficiary dies before a general government member's actual retirement date, the general government member's election of an optional form of benefit shall be canceled and the general government member shall receive his or her benefit in the normal form described in Subsection A. Once benefit payments commence, a general government member may not change his or her chosen form of benefit or beneficiary.
(4)
The Pension Board shall require that a general government member
furnish satisfactory evidence of good health if a general government
member's written election of an optional form of benefit is made within
the one-year period prior to the general government member's actual
retirement date.
C.
Calculation of benefit for optional forms.
(1)
The amount of a general government member's benefit in the 100% joint and survivor annuity form is calculated by multiplying the amount of the general government member's benefit in the normal form, described in § 70-23A, times the sum of:
(a)
The age of the general government member, measured in whole
years (determined as of the general government member's last birthday);
minus
(b)
The age of the general government member's beneficiary, measured
in whole years (determined as of the beneficiary's last birthday);
multiplied by
(c)
0.006; and
(d)
0.81.
(2)
The amount of a general government member's benefit in the 50% joint and survivor annuity form is calculated by multiplying the amount of the general government member's benefit in the normal form, described in § 70-23A, times the sum of:
(a)
The age of the general government member, measured in whole
years (determined as of the general government member's last birthday);
minus
(b)
The age of the general government member's beneficiary, measured
in whole years (determined as of the beneficiary's last birthday);
multiplied by
(c)
0.004; and
(d)
0.90.
D.
Rollover of benefit.
(1)
The Pension Board shall furnish each general government member, no
less than 30 days and no more than 90 days prior to the date such
general government member will receive a distribution which is not
paid in the form of an annuity or in installments over a period of
more than 10 years, with a written explanation of his right to elect
a direct rollover and the withholding consequences of not making such
election. A general government member may waive the thirty-day time
period set forth above.
(2)
Unless a general government member elects a direct rollover, as defined in Subsection D(3) below, 20% of the amount of the taxable portion of any applicable distribution shall be subject to Internal Revenue Service income tax withholding. If the taxable portion of a general government member's distribution does not exceed $200 (or such other amount as prescribed by the Internal Revenue Service), the foregoing withholding requirement shall not apply.
(3)
A "direct rollover" is an eligible rollover distribution as defined
in Treasury Regulations issued pursuant to Section 401(a)(31) or 402(c)
of the Internal Revenue Code that is paid directly to:
(a)
An individual retirement account described in Section 408(a)
of the Internal Revenue Code;
(b)
An individual retirement annuity described in Section 408(b)
of the Internal Revenue Code;
(c)
An annuity plan described in Section 403(b) of the Internal
Revenue Code;
(d)
An eligible plan under Section 457(b) of the Internal Revenue
Code maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a
state; or
(e)
A qualified plan described in Section 401(a) or 403(a) of the
Internal Revenue Code that accepts the eligible rollover distribution.
(4)
A general government member may not elect a direct rollover of a
distribution that does not exceed $200 ($500 if the general government
member is electing a direct rollover of only a portion of his benefit).
A general government member electing a direct rollover shall be required
to furnish the Pension Board with adequate information with respect
to the recipient plan, including, but not limited to, the name of
the recipient plan and a representation that the recipient plan is
an eligible individual retirement plan or qualified defined contribution
plan and that it will accept the general government member's direct
rollover. If a general government member fails to elect a direct rollover
or provide the Pension Board with adequate information in order to
make a direct rollover prior to the date distribution is to be made
to such general government member, such general government member
shall be deemed not to have elected a direct rollover.
A.
Generally. The statutory maximum amount of annual pension payments made during any limitation year shall be determined in accordance with Subsection B. The term "limitation year" shall mean the calendar year, and the term "compensation" shall be defined as set forth in Section 415 of the Internal Revenue Code.
C.
Secondary limitations. The basic limitation in Subsection B shall be reduced or increased, as applicable, for the following situations:
(1)
Commencement of payments prior to age 62. In the case of a benefit
beginning prior to the general government member's attainment of age
62, the limitation of $215,000 shall be actuarially reduced so that
it is the actuarial equivalent (on the basis of an interest rate assumption
not less than the greater of 5% or the rate specified in the plan)
to an annual benefit of $210,000 beginning at age 62.
(2)
Commencement of pension payments after age 65. In the case of a benefit
beginning after the general government member attains age 65, the
limitation of $215,000 shall be actuarially increased so that it is
the actuarial equivalent (on the basis of an interest rate assumption
not greater than the lesser of 5% or the rate specified in the plan)
to a benefit beginning at the general government member's attainment
of age 65.
D.
Limitation if less than 10 years' participation. The limitation in Subsection B shall be reduced in the case of any general government member who has had less than 10 years of participation in the plan by multiplying the limitation by a fraction, the numerator of which is the number of years (or part thereof) of participation in the plan and the denominator of which is 10.
E.
Exceptions to basic limitation.
(1)
The limitation in Subsections B and C above shall not be applied to reduce the benefit of any general government member below $10,000, except in the case of a general government member who has at any time been a member in a defined contribution plan maintained by the employer or as provided in Subsection D.
(2)
(3)
The limitation described in Subsection C(1) shall not apply to a general government member if the period of service taken into account in determining the amount of the benefit payable from this plan includes at least 15 years of contributory service of the general government member as a full-time employee of the Town's Fire Department.
F.
Cost-of-living limitation adjustment. If the Secretary of the Treasury shall, by regulations, have raised the limitation of $215,000 of Subsection B above to reflect increases in the cost of living, the limitation in effect at the time of a general government member's commencement of benefits shall be applied.
G.
"Annual benefit" defined. For the purpose of Subsection B above, "annual benefit" means the benefit payable to a general government member from the plan in the form of a straight life annuity with no ancillary benefits. If the annual benefit is payable in any form other than a straight life annuity with no ancillary benefits, then for purposes of applying the general limitations of Subsection B above, the annual benefit shall be adjusted, using an interest rate assumption not less than the greater of 5% or the interest rate specified in the plan, to take into account the payment of a pension in such other form; provided, however, that no adjustment shall be required by reason of benefits not directly related to retirement or by reason of payment of that portion of any joint and survivor annuity which constitutes a qualified joint and survivor annuity within the meaning of Section 417 of the Internal Revenue Code.
H.
Participation in more than one defined benefit plan. If the general
government member participated in more than one defined benefit plan
maintained by the Town, regardless of whether any such plans are terminated,
the statutory maximum pension payments shall be determined as if there
was just one defined benefit plan, but the pension payments so determined
will apply on a pro rata basis between, or among, such plans.
I.
Applicability of limits to general government members hired before 1990. Protection of prior accrued pension payments. The dollar limitations described in this § 70-24 shall not apply to the benefit of a general government member who began participating in the plan prior to January 1, 1990 (determined without regard to any amendment of the plan made after October 14, 1987).
A.
A general government member's eligibility for, and the amount of,
any death benefit payable due to the general government member's death
prior to retirement shall be determined under this Subpart B.
B.
Death after retirement. Upon the death of a general government member who is receiving or has received retirement benefits, including disability payments, in the normal form described in § 70-23A, a lump sum death benefit shall be paid to the general government member's beneficiary. The amount of the lump sum death benefit, if any, will equal:
(1)
The general government member's total contributions, comprised of:
(a)
The total contributions made by the general government member
prior to July 1, 1983, with compound interest at the rate of i) 3%
per year for the period from the January 1 following the date the
contribution was made through the date retirement benefits or disability
payments commenced or, if earlier, January 1, 1984, and ii) 5% per
year for the period from January 1, 1984, through the date such payments
commenced; plus
(b)
The total contributions made by the general government member
on and after July 1, 1983, with compound interest at the rate of 5%
per year for the period from the January 1 following the date the
contribution was made through the date retirement benefits or disability
payments commenced.
(2)
Reduced by the total amount of retirement benefits, including disability
payments, paid to the general government member by the plan prior
to the general government member's death.
C.
Designation of beneficiary. The records of the Pension Board shall
be conclusive as to whether a general government member has elected
a beneficiary with respect to the death benefit described in this
section, and as to the identity of such beneficiary. If a general
government member has named more than one beneficiary, then, unless
otherwise specifically provided, the death benefit, if any, shall
be paid equally to each of the named beneficiaries surviving the general
government member. If no named beneficiary shall survive a general
government member, the death benefit, if any, shall be paid to the
executors or administrators of the estate of such general government
member, except that, if the amount shall be less than $500, the death
benefit may, at the option of the Director of Finance, be made in
accordance with § 45a-273 of the Connecticut General Statutes.
D.
Spouse as beneficiary. Any pension payments to a surviving spouse
shall terminate as of the earlier of such spouse's death or remarriage,
unless otherwise specified herein. No such benefits will be payable
to the surviving spouse if a final decree of divorce of the spouse
and general government member has been entered at the time of the
general government member's death, except as provided pursuant to
any applicable qualified domestic relations order.
E.
The eligibility of a general government member who dies while performing military service for a death benefit shall be determined under this § 70-25E. If a general government member leaves employment with the employer to perform qualified military service and dies while performing such qualified military service, the general government member's surviving beneficiary of such general government member shall be entitled to the death benefit that would have been available under this Subpart B had the general government member returned to employment following his qualified military service on the date of his death and dies on the next following day. For purposes of this § 70-25E, the term "qualified military service" shall be defined as set forth in Section 414(u) of the Internal Revenue Code.
F.
Death before attaining age 55 or completing 10 years of contributory
service.
(1)
Upon the death of a general government member who had not yet retired
and who had not yet attained age 55, or who had attained age 55 but
had completed less than 10 years of contributory service as of the
date of his or her death, a lump sum death benefit will be paid to
the general government member's beneficiary.
(2)
The amount of the lump sum death benefit described in Subsection F(1), if any, will be equal to:
(a)
The total contributions made by the general government member
prior to July 1, 1983, with compound interest at the rate of: i) 3%
per year for the period from the January 1 following the date the
contribution was made through the first of the month in which death
occurs or, if earlier, January 1, 1984; and ii) 5% per year for the
period from January 1, 1984, through the first of the month in which
death occurs; plus
(b)
The total contributions made by the general government member
on and after July 1, 1983, with compound interest at the rate of 5%
per year for the period from the January 1 following the date the
contribution was made through the first of the month in which death
occurs.
G.
Death after attaining age 55 and completing 10 years of contributory
service.
(1)
Upon the death of a general government member who had not yet retired but who had attained age 55 and completed at least 10 years of contributory service as of the date of his or her death, a death benefit will be paid to the general government member's spouse. The death benefit shall be equal to 50% of the amount the general government member would have been eligible to receive had he or she retired on the date of his or her death and chosen to receive the optional form of retirement benefit described in § 70-23B(1)(b).
H.
Death after attaining age 65.
(1)
Upon the death of a general government member who had attained at least age 65 at the time of his or her death, and who had previously elected an optional form of benefit pursuant to § 70-23B, such deceased general government member's spouse shall receive the benefit he or she would have received had the general government member retired prior to his or her death and commenced receiving benefits.
A.
Lump sum payment.
(1)
A general government member who ceases to be employed by the Town
before he or she is eligible for early retirement benefits from this
plan may, upon written request to the Pension Board, withdraw:
(a)
The total contributions made by him or her prior to July 1,
1983, with compound interest at the rate of: i) 3% per year for the
period from the January 1 following the date the contribution was
made through the first of the month in which the withdrawal request
is received by the Pension Board or, if earlier, January 1, 1984;
and ii) 5% per year for the period from January 1, 1984, through the
first of the month in which such request is received; plus
(b)
The total contributions made by the general government member
on and after July 1, 1983, with compound interest at the rate of 5%
per year for the period from the January 1 following the date the
contribution was made through the first of the month in which the
withdrawal request is received by the Pension Board.
(2)
Payment in accordance with this Subsection A shall be in final settlement of all obligations of the plan to a general government member and his beneficiary. If a general government member ceases to be employed by the Town and is not reemployed by the Town within five years of the date he or she terminates employment, he or she shall be conclusively presumed to have made a withdrawal request pursuant to this Subsection A. A general government member who elects to receive pension payments under Subsection B will not be entitled to any amounts pursuant to this Subsection A. If a general government member cannot be located, he shall be deemed to have forfeited his benefits under the plan until such time as he makes a claim for such benefits.
B.
Pension payments.
(1)
A general government member who ceases employment with the Town after
completing five years of contributory service shall be eligible for
pension payments from this plan, provided that:
(2)
A general government member who is an unaffiliated employee hired on or after October 1, 2003, and who ceases employment with the Town after completing 10 years of contributory service, shall be eligible for pension payments from this plan, provided that he or she has not withdrawn contributions in accordance with this § 70-26.
