HomeMy WebLinkAboutORD 7157 1945 PENSION
ORDINANCE NO. 7157
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RICHMOND EMPLOYEES PENSION FUND
As Amended and Restated Effective January 1,2010
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Section 1.
1.01.
1.02.
1.03.
1.04.
1.05.
1.06.
1.07.
1.08.
1.09.
1.10.
1.11.
1.12.
1.13.
1.14.
1.15.
1.16.
1.17.
1.18.
1.19.
1.20.
1.21.
1.22.
Section 2.
2.01.
Section 3.
3.01.
3.02.
3.03.
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TABLE OF CONTENTS
Pa2:e
DEFINITIONS........................................................................................................ .2
Accrued Benefit.................................................................................................2
Actuarial Equivalent..........................................................................................2
Average Earnings...............................................................................................2
Beneficiary.......................................... ...............................................................2
Code....................................................... ............................................................2
Commission...................................................................................................... .2
Contributions..................................................................................................... .2
Credited Service.................................................................................................2
Earning............... ................................................. ...............................................3
Effective Date....................................................................................................4
Employee.......................................................................................................... .4
Employer or County............................ ...............................................................4
Fund.................................................................................................................. .4
Interest................................................................................................................ 5
Joint Annuitant................................................................................................... 5
Participant......................................................................................................... .5
Payee....................................................................... ...........................................5
Plan......................................................................... ...........................................5
Plan Year............................................................................................................5
Total and Permanent Disability.........................................................................5
Trust Agreement or Trust.................... ...............................................................6
Trustee............................................................................................................... .6
ELI GIBILITY AND PARTICIPATION.................................................................6
Eligibility.......................................................................................................... .6
RETIREMENT DATES AND BENEFITS ....... ....... ... ........ ..... ...............................6
Normal Retirement............................................................................................. 6
Early Retirement................................................................................................ 7
Disability Retirement.......................... ...............................................................7
2
3.04.
3.05.
3.06.
3.07.
3.08.
3.09.
3.10.
3.11.
3.12.
3.13.
3.14.
Section 4.
4.01.
4.02.
4.03.
4.04.
Section 5.
5.01.
5.02.
Section 6.
6.01.
Section 7.
7.01.
7.02.
7.03.
7.04.
7.05.
7.06.
7.07.
7.08.
7.09.
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Delayed Retirement...........................................................................................9
Termination of Employment.............................................................................. 9
Cost-of- Living Adjustment of Benefits. ....................................................... ...10
Required Distribution Rules........................................................................... .11
Code Section 415 Limit........ .......................................................................... .13
Enhanced Early Retirement for 1996...................................................... .........20
Special Unreduced Early Retirement...............................................................21
Rollover Distributions..................................................................................... .21
Normal Forms of Benefits for Married Participants........................................23
Supplemental Retirement Benefit. ...................... .......... ... ..... ...........................27
One- Time Enhanced Normal Retirement Incentive Program ("ENRIP")
for 2009........................................................................................................... .27
DEATH BENEFITS............................................................................................. .29
Death Prior to Retirement ....................................... ...... ..... ..............................29
Death After Retirement................................................................................... .30
Adjusted Benefit................................. ............................................................ .30
Designation of Beneficiaries............................................................................30
CONTRIBUTIONS.............................................................................................. .31
County Contributions........................... .......................................................... ..31
Participant Contributions..................... ........................................................... .31
ADMINISTRATION OF PLAN .................................. ... ........... ...........................32
Administration................................................................................................ .32
TRUST FUND AND TRUSTEES............ ...... .................... .................... ...............33
Trust Fund....................................................................................................... .33
Amendment of Trust....................................................................................... .34
Discontinuance of Trust and Vesting.. .................... ....................................... ..34
Powers of the Commission ............... ...................... ...... ..... ..................... .........34
Investment of Fund..........................................................................................3 5
Taxation...........................................................................................................3 5
Resignation of Trustee.....................................................................................3 6
Successor Trustees.......................................................................................... .36
Disbursements................................................................................................. .36
3
Section 8.
8.01.
8.02.
Section 9.
9.01.
9.02.
9.03.
9.04.
9.05.
9.06.
9.07.
9.08.
9.09.
9.10.
9.11.
9.12.
9.13.
9.14.
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AMENDMENT AND TERMINA nON ...............................................................36
Amendment of the Plan ............. .................. .......... ... ... .............................. ... ...36
Termination of the Plan ........... .... ................... ............. ............... .................. ...37
MISCELLANEOUS........ ......................................................................................3 9
Headings................... ................................................ .......................................39
Construction.....................................................................................................3 9
N onalienation..........................................................................,........................3 9
Compliance with HEART Act. ............................................... .........................39
Legally Incompetent................................................. .......................................39
Benefits Supported Only By Fund...................................................................40
Discrimination................................................................................................. .40
Limitation of Liability; Legal Actions ......... ................................... .................40
Claims............................................................................................................. .40
Forfeitures....................................................................................................... .40
Maximum of One Benefit at a Time.............. ..................................................41
Applications.................................................................................................... .41
Report of Treasurer............................. ............ ..................................... ........... .41
Consequence of Plan Violation........... .............................................................41
4
RICHMOND EMPLOYEES PENSION FUND
INTRODUCTION
Effective March 1, 1945, the Board of Commissioners of Richmond County established the
"Richmond Employees Pension Fund", hereinafter referred to as the Plan. The Plan covers
Employees hired on or before September 30, 1975, meaning no one hired after that date is
eligible to participate in the Plan.
On , 2009, the Augusta-Richmond County Commission, as successor to the
Richmond County Board of Commissioners approved this restatement of the Plan effective
January 1, 2010, except as otherwise provided herein, to (i) incorporate all amendments to the
Plan since its establishment, including a good faith amendment to comply with the Economic
Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") effective for Plan Years
beginning on and after January 1, 2002, and (ii) update the Plan to comply with applicable
changes in federal laws and regulatory guidance included in the 2009 Cumulative List under IRS
Notice 2009-_, including changes to comply with applicable provisions of the Pension
Protection Act of 2006 ("PP A"), the Heroes Earnings Assistance and Relief Tax Act of 2008
("HEART"), the Worker, Retiree, and Employer Recovery Act of 2008 ("WRERA"), and the
Final Regulations under Code Section 415. The Plan is also restated in accordance with past
practices required to maintain the Plan's tax-qualified status pursuant to Sections 401(a) and
414( d) of the Internal Revenue Code of 1986, as amended, and the applicable Treasury
regulations and other guidance, and includes a few other changes designed to facilitate its
administration.
It is the County's intention to fully honor all benefits and rights that Plan Participants have
accrued under the Plan prior to this restatement. The Plan shall be administered and construed
accordingly, and the Plan's administrator shall construe and interpret every provision of the
Plan's restatement as effective January 1,2010, except as otherwise provided herein, in a manner
that preserves each Plan Participant's benefits or rights that accrued prior to the date of adoption
of this restatement.
The Plan will be administered by the Commission as described in Section 6. All benefits to be
provided under the Plan will be funded under a trust established in accordance with Section 7.
None of the retirement provisions of the Plan shall be construed to repeal or in any manner
interfere with the Acts of the Extra Session of Georgia Laws, 1937-1938, pages 875-880,
inclusive, designated "Richmond Officers and Employees Act" and amendments thereof; or
hereafter made, provided, this Plan shall not be construed to include within the Plan any
employee not heretofore covered by the "Richmond Officers and Employees Act."
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SECTION 1.
DEFINITIONS
As used herein, unless otherwise defined or required by the context, the following words and
phrases shall have the meanings indicated:
1.01. Accrued Benefit - The retirement benefit which the Participant has earned as of the date
of determination, calculated under Subsection 3.0I(b) on the basis of his Average
Earnings and Credited Service, which is payable as of his Normal Retirement Date in the
form of a life annuity, with a guarantee of the refund of Employee Contributions with
interest for the Participant who dies before receiving an amount of benefit payments that
at least equal his Employee Contributions with interest.
1.02. Actuarial Equivalent - A benefit of equal value computed on the basis of (a) the 1971
Group Annuity Mortality Table, and (b) interest at 6% compounded annually for forms of
payment other than lump sum; the interest rate used to determine the equivalent lump
sum value of monthly benefits will be in PBGC schedule of immediate and graded
deferred rates in effect on the first day of the Plan Year in which the benefit is calculated.
1.03. Average Earnings - The monthly average of the Participant's Earnings for the five
consecutive calendar years, immediately preceding the earlier to occur of: (a) the date on
which the Participant's employment with the employer terminates for any reason or (b)
the Participant's actual retirement date. Average Earnings shall be determined by
dividing the total earnings received by the Participant during the appropriate five year
period, or lesser number of years if applicable, by the number of months for which he
received earnings in such period.
1.04. Beneficiary - The person(s) designated by the Participant in accordance with Section 4.04
who is entitled to receive benefits at the death of a Participant under Section 3 or 4.
1.05. Code - The Internal Revenue Code of 1986 as amended from time to time, and
regulations or rulings issued thereunder.
1.06. Commission - Augusta-Richmond County Commission, as successor to the Richmond
County Board of Commissioners, which shall act in the dual capacity of administrator of
the Plan and Trustee of the Fund.
1.07. Contributions - The payments made by the Participants to the Fund in accordance with
Section 5.
1.08. Credited Service - The number of years of uninterrupted and continuous employment
(completed months expressed as a fractional year) of the Employee with the Employer
from (a) the date he last entered the employment of the Employer, to (b) the earlier of his
date of termination of employment for any reason nor his actual retirement date.
Credited Service will not be interrupted by:
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(a) vacation, or approved leave of absence authorized by the Employer in accordance
with a uniform policy applied on a nondiscriminatory basis to all Employees
similarly situated;
(b) voluntary or involuntary service in the Armed Forces of the United States,
provided the Employee retains statutory reemployment rights under applicable
state or federal law, and resumes employment after his honorable discharge from
military duty within the time required by such law;
(c) reelection or reappointment at the end of a term; or
(d) periods during which the Employee incurs a Total and Permanent Disability
within the meaning of Section 3.03, provided that he recovers from a Total and
Permanent Disability and is reemployed by the Employer as required under
Section 3.03(a)(7) or 3.03(b)(4).
For benefit purposes, no Participant will receive any credit for any period of inactive
employment. For vesting purposes, an Employee who has one or more breaks in
employment will receive credit only from his most recent date of reemployment.
Notwithstanding anything in this Section to the contrary, any Participant who before
retirement, voluntarily separates from his employment as provided for in this Act, or is
discharged, or his office or position abolished, as provided by the "Richmond Officers
and Employees Act" appearing in Georgia Laws, Extra Session 1937-1938, pages 875-
880, inclusive, as amended or hereafter amended, or is discharged by an elective officer
of Richmond County under whom he is employed, and is thereafter re-employed as an
Employee, upon the presentation to the Commission of a certificate from the County
Physician of Richmond County, certifying that such Employee is in good health and able
to perform actively the duties of his employment, his services prior to such separation or
discharge shall be counted in his length of continuous permanent employment after being
so re-employed, provided he shall pay back into the Fund, by paying the Treasurer,
within twelve months of filing such certificate with the Commission, the amount
refunded to such Participant by reason of such separation or discharge.
Effective December 12, 1994, notwithstanding anything in the Plan to the contrary,
contributions, benefits, and Credited Service with respect to qualified military service
shall be provided in accordance with Section 414(u) of the Code.
1.09. Earning - The total salary, wages, or remuneration paid to the Participant by the
Employer during any period of 12 consecutive months. Effective as of January 1, 1998,
the term "Earnings" shall also include any elective deferral (within the meaning of Code
Section 402(g)(3)) and any amounts that are deferred by the Employer at the election of
the Employee that are not included in the Employee's gross income pursuant to Code
Section 125 or 457. Effective January 1, 2001, Earnings shall also include elective
amounts that are not includable in the Employee's gross income by reason of Code
Section 132(f)(4).
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The Participant's Earnings taken into account for purposes of the Plan shall be limited to
$150,000 for any determination period beginning in 1996 or earlier; $160,000 for any
Plan Year beginning in 1997, 1998, or 1999; $170,000 for any Plan Year beginning in
2000 or 2001. Notwithstanding the preceding sentence, if the Participant has completed
one hour of Credited Service on or after January 1, 2002, the Participant's Earnings taken
into account for purposes of the Plan shall not exceed $200,000 as adjusted under Code
Section 401 (a)(17)(B).
Notwithstanding anything in this Section to the contrary, benefits for any retired County
Attorney who retired under this Act prior to October 1, 1975 shall be computed as if the
Earnings for the County Attorney of Richmond County, Georgia is $20,000.00 per
annum, notwithstanding what amount the County incurred or spent per annum for legal
services, and the benefits shall be computed from January 1, 1973.
1.10. Effective Date - The original effective date of the Plan is March 1, 1945. The effective
date ofthis restatement is January 1,2010, except as otherwise provided herein.
1.11. Employee - Any employee, officer, appointee or electee of the Commission as now
constituted or hereafter constituted, and any employee, officer, appointee under any
official of the County as now constituted or hereafter constituted, but excluding:
(a) any person for whom the County makes contributions directly to another
retirement system or pension fund, including the Social Security retirement
system;
(b) any person whose customary employment is for less than thirty hours a week or
an aggregate of less than six months in any calendar year;
(c) employees of the Richmond County Department of Health and Department of
Family and Children's Services of Richmond County;
(d) the County Agent, County Horne Demonstration Agent and the employees
thereof;
(e) officers elected by vote of the electorate;
(f) the employees, officers, appointees and electees of the Department of Public
Welfare of Richmond County;
(g) the employees, officers, appointees and electees of the Richmond County Board
of Health; and
(h) the County Agent and County Horne Demonstration Agent of Richmond County.
1.12. Emplover or County - Augusta-Richmond County, Georgia.
1.13. Fund - The Richmond County Pension Fund trust fund created in accordance with the
Plan and Trust.
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1.14. Interest - Interest credited on Contributions from the January 1 next following the date of
which such Contributions are made to the earlier of: (a) the date of the Participant's
termination of employment for any reason and (b) the Participant's Normal Retirement
Date, with such interest compounded annually at the rate of 5%.
1.15. Joint Annuitant - The person designated by the Participant to receive payments after the
death of the Participant as provided in accordance with Section 3.
1.16. Participant - An Employee who becomes eligible to participate in the Plan as provided in
Section 2.
1.17. Payee - The Beneficiary or Joint Annuitant designated by the Participant in accordance
with Section 1.16 or 1.17 to receive benefits under the Plan after his death.
1.18. Plan - The Richmond Employees Pension Fund as contained herein, all amendments
thereto which may hereafter be made, and any existing acts of the General Assembly of
Georgia pertaining to the Richmond Employees Pension Fund. The Plan shall include the
Trust as hereinafter defined.
1.19. Plan Year - The twelve month period ending December 31 of each year.
1.20. Total and Permanent Disability - The Commission shall determine whether a Participant
shall be considered Totally and Permanently Disabled and the Commission shall declare
in its findings whether or not such disability is permanent and total. The Commission
shall base its determination as to whether a Participant is Totally and Permanently
Disabled on whether the Participant is not able, on account of disability received in the
discharge of his duties, to adequately discharge the duties of his job or office, nor ever
will be provided that no Participant shall be declared to be Totally and Permanently
Disabled to discharge the duties of his job or office, except upon the recommendation of
three (3) reputable physicians, after examination, who shall consider the case and make
their findings. One of the physicians shall be selected by the Commission, one by the
Participant, and these two shall select the third. The recommendation of the physicians
shall state that they "find the Participant totally and permanently disabled from
performing the duties of his job or office" and or that they "do not find the Participant
totally and permanently disabled from performing the duties of his job or office" and the
majority report of the physicians shall govern. Should the report of the physicians state
that they "find the Participant totally and permanently disabled from performing the
duties of his job or office", then the Employee shall be declared Totally and Permanently
Disabled, and entitled to receive the benefit is provided in Section 3.03, and his right to
receive the benefits shall date back to the time of injury.
If, after the Employee is declared Totally and Permanently Disabled, he desires to accept
other employment offered him by the Commission, with the County or under a County-
elected official, and he is also able to perform such employment, as such duties, he shall
be paid at least as much as he would receive from his pension but shall not receive a
pension. If, after the Employee has accepted such new employment, he wishes to leave
such employment for any reason fit he may be returned immediately to the pension list at
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the sum that he was retired on, and the Commission may strike him from the payroll and
return him to the pension list at any time it sees fit.
Notwithstanding anything in this Section to the contrary, whether a Participant is Totally
and Permanently Disabled shall be subject to the exclusions set forth in Section 3.03.
1.21. Trust Agreement or Trust - The agreement of trust between the Commission, in its
capacity as the governing body of the Employer and the Commission, in its capacity as
Trustee, which shall govern the continuation and maintenance of the trust fund, and all
amendments thereto.
1.22. Trustee - The Commission in its capacity as trustee.
SECTION 2.
ELIGIBILITY AND PARTICIPATION
2.01. Eligibility
Each Participant in the Plan on December 31, 2009 (according to the Plan terms then in
effect) shall continue to be a Participant, and no other Employee is eligible to become a
Participant in this Plan, and no other Employee shall be eligible to participate (because
1976 Ga. Laws, p. 4500, S 2 provides that no Employee hired after September 30,1975 is
eligible to become a Participant in this Plan).
SECTION 3.
RETIREMENT DATES AND BENEFITS
3.01. Normal Retirement
Normal retirement under the Plan is retirement from the employ of the County on the
Normal Retirement Date. In the event of normal retirement, payment of the retirement
benefit shall be governed by the following provisions of this Section.
A. Normal Retirement Date: The Normal Retirement Date of a Participant shall be
the first day of the month coincident with or next following the date he reaches
age sixty (60).
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Normal Retirement Date shall be an amount equal
to 2% of the Participant's highest Earnings received as an Employee within the
period of seventy-two (72) months immediately preceding his retirement for each
year of Credited Service.
C. Payment of Retirement Benefit: The retirement benefit payable in the event of
normal retirement shall be payable on the first day of each month. The first
payment shall be made on the Participant's Normal Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to
Sections 3.12 and 4.02.
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3.02. Earlv Retirement
Early retirement under the Plan is retirement from the employ of the County prior to the
Normal Retirement Date. Early retirement shall be authorized only in the event that the
Participant shall have both attained age 50 and completed at least 15 years of Credited
Service. In the event of early retirement under these conditions, payment of the
retirement benefit shall be governed by the following provisions of this Section.
Notwithstanding the foregoing, if a Participant receives special early retirement benefits
under Section 3.09 or 3.10, the Participant shall be ineligible for benefits under Section
3.02.
A. Early Retirement Date: The Early Retirement Date of a Participant shall be the
first day of the month coincident with or next following the date he retires from
the employ of the County under the provision of this Section.
B. Amount of Retirement Benefit: A Participant at retirement on his Early
Retirement Date shall at his option receive either:
(1) a deferred monthly retirement benefit commencing on his Normal
Retirement Date, provided he is then alive, equal to an amount computed
in the same manner as for normal retirement in accordance with Section
3.01-B, but based on Credited Service and Average Earnings as of his
Early Retirement Date; or
(2) an immediate monthly retirement commencing on his Early Retirement
Date equal to the benefit determined in Section 3.01-B above, reduced by
5/12% for each complete month by which the Early Retirement Date of a
Participant precedes his Normal Retirement Date.
C. Payment of Retirement Benefit: The monthly retirement benefit payable in the
event of early retirement shall be payable on the first day of each month. The first
payment shall be made on the optional date elected by the Participant under
Section 3.02-B above and the last payment shall be the payment due next
preceding his date of death, subject to Sections 3.12 and 4.02.
3.03. Disability Retirement
A Participant may retire under the Plan if he becomes Totally and Permanently Disabled
from a cause arising out of and in the course of employment whether the Total and
Permanent Disability is caused by injury or illness; and provided that he has, prior to his
Total and Permanent Disability, continuously, actively performed the duties of his
employment for at least one year as of March 1, 1945. Notwithstanding anything in this
Section to the contrary, a Participant shall not be entitled to receive any disability
retirement benefit if the Participant's Disability is a result of any ofthe following:
(1) the Participant's willful misconduct,
(2) the Participant's self-inflicted injury,
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(3) the Participant's attempt to injure another,
(4) Participant's intoxication or
(5) the Participant's commission of a crime under the laws of this state or
another state of the United States.
B. Disability Retirement Date: The Disability Retirement Date of a Participant shall
be the first day of the month which coincides with or next follows the date the
Commission approves payment of the Participant's disability benefit.
c. Disability Retirement Benefit: The monthly retirement benefit payable to a
Participant on his Disability Retirement Date shall be equal to one half of the
highest Earnings that the Participant has received as a Participant within the
period of seventy-two (72) months immediately preceding his Total and
Permanent Disability; provided however, that should such Participant receive any
Workmen's Compensation while so disabled, such Workmen's Compensation so
received, excluding, medical, doctor, nursing and hospitalization, shall be
subtracted from any pension voucher paid to the Participant, and he shall receive
only the excess of any pension due him after the subtraction of the amount of
Workmen's Compensation received by him, less any other indebtedness due the
County by the Participant. Such retirement shall herein be referred to as disability
retirement and payment of the disability retirement benefit shall be governed by
the following provisions of this Section.
D. Payment of Disability Retirement Benefit: The retirement benefit to which a
Participant is entitled in the event of his Total and Permanent Disability shall be
payable on the first day of each month. The first payment shall be made on the
Participant's Disability Retirement Date and the last payment shall be the
payment due next preceding the earlier of: (a) his date of death (subject to the
provisions of Sections 3.12 and 4.02), or (b) the cessation of his Total and
Permanent Disability prior to his Normal Retirement Date.
E. Termination of Disability Retirement Benefit: If the Participant's Total and
Permanent Disability ceases prior to his Normal Retirement Date and he does not
reenter the employ of the County within 60 days after his recovery, all rights of
the Participant in and to a disability retirement benefit shall cease and he shall be
entitled solely to the benefits, if any, provided in:
(1) Section 3.02, if he had satisfied the requirements for early retirement as of
the date of inception of Total and Permanent Disability, or
(2) Section 3.05, ifhe had not satisfied the requirements for early retirement,
and either such benefit shall be based on his Credited Service and Earnings as of
the date of inception of Total and Permanent Disability.
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If the Participant's Total and Permanent Disability ceases prior to his Normal
Retirement Date and he is re-employed by the County within 60 days following
the date such Total and Permanent Disability ceases, his employment will be
deemed to have been continuous; provided that the period beginning with the first
month for which he received a disability payment and ending with the date of
reemployment will not be considered as Credited Service for purposes of the Plan.
3.04. Delayed Retirement
Delayed retirement under the Plan is retirement from the employ of the County after the
Normal Retirement Date. A Participant may remain in the active employ of the County
beyond his Normal Retirement Date only at the request of the Commission and for such
periods of additional employment as shall be mutually agreed upon; provided that the
Plan's administrator shall not interpret this sentence in a manner that would violate the
Age Discrimination in Employment Amendments of 1986, as amended. In the event of
delayed retirement, payment of the retirement benefit shall be governed by the following
provisions of this Section.
A. Delayed Retirement Date: The Delayed Retirement Date of a Participant shall be
the first day of the month coincident with or next following the date he actually
retires from the employ of the County after his Normal Retirement Date.
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Delayed Retirement Date shall be an amount
computed in the same manner as for normal retirement in accordance with Section
3.01-B, but based on Credited Service and Average Earnings as of his actual
retirement date; provided, however, such amount shall not be less than the
monthly benefit the Participant would have received had he retired on his Normal
Retirement Date.
C. Payment of Retirement Benefit: The retirement benefit payable in the event of
delayed retirement shall be payable on the first day of each month. The first
payment shall, be made on the Participant's Delayed Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to
Sections 3.12 and 4.02.
3.05. Termination of Employment
A. A Participant who terminates employment with the County for any reason other
than death, disability, or early retirement after the completion of at least 10 years
of Credited Service, shall receive a deferred retirement benefit commencing on
his Normal Retirement Date, provided he is then alive, equal to the monthly
benefit computed in the same manner as for normal retirement in accordance with
Section 3.01-B but determined as of his date of termination, multiplied by the
applicable percentage based on completed years of Credited Service in
accordance with the following tables:
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Completed Years of
Credited Service at
Terminated Date
Applicable
Percentages of Monthly
Benefit Payable
Effective
Benefit Rate
Less than 10
10
11
12
13
14
15 or more
0%
50
60
70
80
90
100%
--0--
10.0%
13.2
16.8
20.8
25.2
30.0 +
B. In lieu ofthe deferred monthly retirement benefit provided in Section 3.05(B), the
terminated Participant may elect to receive a lump-sum amount equal to the total
of his Contributions with 5% Interest computed from January 1, 1977, such
amount to be payable within 60 days following the date of termination.
C. A Participant shall be 100% vested in his accumulated Contributions at all times.
3.06. Cost-of-Living Adiustment of Benefits. All retirement and disability benefits received
under this Section 3 shall be adjusted annually pursuant to this Section 3.06.
A. Definition of Terms Used in This Section
(1) "Current Cost-of-Living Index" means the average of the monthly
Consumer Price Index for the 12 month period ending December 31 each
year as determined by the Bureau of Labor Statistics of the United States
Department of Labor for all items and major groups, United States city
average.
(2) "Participant Base Index" means
(i) For any Participant, who dies or retires under the provisions of this
Plan on or after October 1, 1975, the average of the Consumer
Price Index for the twelve-month period ending prior to the date of
death or retirement;
(ii) For any Participant who dies or retired under this Plan prior to
October 1, 1975, the average of the Consumer Price Index for the
calendar year ending December 31, 1975.
In the event the base year used in computing the monthly Consumer Price Index
should be changed by the Bureau of Labor Statistics, the Commission, with the
advice of the Plan actuary, shall adjust the Participant Base Index of each retired
Participant with benefit payments commencing during the first year in which such
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change was made so as to effect the original intent of this Section in an equitable
manner.
(3) "Adjusted Participant Index" means the Participant Base Index adjusted
for all percentage adjustments made in benefits prior to the current Annual
Adjustment Date.
(4) "Annual Adjustment Date" means March 1st of each year commencing (a)
March 1, 1976 as to any Participant who dies or retires on or after
October 1, 1975, and (b) March 1, 1976 as to any Participant who dies or
retires on or before October 1, 1975.
B. Annual Adjustment
The Commission shall ascertain the Current Cost-of-Living Index as of January 1
each year and the benefits being paid under Sections 3, 4, or 5 to any Participants,
Beneficiary, or Joint Annuitant, as previously adjusted under this Section, shall be
further adjusted as of the Annual Adjustment Date as follows:
(1) If the Current Cost-of-Living Index is more than 100% of the Adjusted
Participant Index, the benefit shall be increased by a percentage equal to
the difference between (a) the percentage representing the Current Cost-
of-Living Index divided by the Adjusted Participant Index and (b) 100%.
11
(2) If the Current Cost-of-Living Index is less than 100% of the Adjusted
Participant Index, the benefit shall remain unchanged.
(3) Notwithstanding the foregoing provisions of this Section, no increase in
the amount of the monthly retirement benefit due to changes in the Current
Cost-of-Living Index, effective at any Annual Adjustment Date, shall be
in excess of 5% of the amount of the monthly retirement benefit payable
immediately prior to such date.
3.07. Required Distribution Rules
This Section shall be effective beginning as of the first day of the 1989 calendar year.
The Plan shall pay all benefits in accordance with a good faith interpretation of the
requirements of Code Section 40I(a)(9), and the regulations in effect under that section,
as applicable to a governmental plan within the meaning of Code Section 4I4( d), subject
to the following provisions:
(a) Payment to the Participant: Any other provision of the Plan notwithstanding, the
Plan will cash-out each Participant's Accrued Benefit, or will begin annuity
payments, no later than the April 1 following the calendar year in which he
retires, or the later calendar year in which he reaches age 70-112.
The Plan will pay the Accrued Benefit over a period not extending beyond the
Participant's lifetime or life expectancy, or over a period not extending beyond
1/2377584.3
12
the joint and last survivor life expectancies of the Participant and his or her spouse
or other Beneficiary, using age(s) attained as of the end of the calendar year in
which the Participant retires (or reaches age 70-112 if later), and the Accrued
Benefit as of that date. However, if the Beneficiary of a joint and survivor
annuity form of payment is not the spouse and is more than 10 years younger than
the Participant, payments to the Beneficiary will not exceed the applicable
percentage of the Participant's benefit payments required by the incidental benefit
rule. The Commission will not recalculate the life expectancy(ies).
(b) Participant's Death After Benefits Begin: If the Participant dies after his
payments have begun in a survivor annuity form, the Commission will pay the
survivor benefits at least as rapidly as under the form of annuity in effect before
his death.
(c) Participant's Death Before Benefits Begin: If the Participant dies before his
payments have begun, the Commission will pay his entire Accrued Benefit no
later than December 31 of the calendar year which contains the fifth anniversary
of his death. However, this five-year rule will not apply if the primary beneficiary
is an individual described below and circumstances permit the Commission to use
the exception described below.
(1) Surviving Spouse as Primary Beneficiarv: If the Participant's surviving
spouse is the Beneficiary, the Commission will begin payments not later
than the end of the calendar year during which the Participant would have
reached age 70-1/2, and will continue payments over a period not
extending beyond the spouse's life expectancy, using age attained as of
that date and not recalculated.
(2) Non-Spouse Primary Beneficiary: If the Beneficiary is an individual other
than the spouse, the Commission will begin payments not later than the
last day of the calendar year following the year in which the Participant's
death occurs, and will continue payments over a period not extending
beyond the Beneficiary's life, or life expectancy determined as of that date
and not recalculated. If the Beneficiary dies before receiving 120
payments under the ten years certain and life annuity described in Section
5.02, the Commission will continue to use the primary Beneficiary's life
expectancy for purposes of making payments to an individual contingent
Beneficiary.
(d) Compliance with Code Section 401(a)(9): The intent of this Section is that the
beginning dates and payment periods of benefits payable to each Participant and
beneficiary will be within the limitations permitted under Code Section 401(a)(9).
If there is any discrepancy between this Section and Code Section 401(a)(9),
Code Section 401 (a)(9) will prevail. Notwithstanding the other provisions of this
Section 3.07 or the provisions of the Treasury Regulations, benefit options may
continue so long as the option satisfies Code Section 401(a)(9) based on a
reasonable and good faith interpretation of that section. The amount of an annuity
1/2377584,3
13
paid to a Participant's Beneficiary may not exceed the maximum determined
under the incidental death benefit requirement of Code Section 401 (a)(9)(G), and
the minimum distribution incidental benefit rule under Treasury Regulation
Section 1.401(a)(9)-6, Q&A-2. The death and disability benefits provided by the
Plan are limited by the incidental benefit rule set forth in Code Section
401(a)(9)(G) and Treasury Regulation Section 1.401-I(b)(1)(i) or any successor
regulation thereto. As a result, the total death or disability benefits payable may
not exceed 25% of the cost for all of the Participants' benefits received from the
Plan.
3.08. Code Section 415 Limit
In no event will Participant Contributions paid to and retirement benefits paid from the
Plan exceed the limitations contained in Code Section 415 and the regulations thereunder.
A. Participation in Other Qualified Plans: Aggregation of Limits
(I) The Code Section 415(b) limit with respect to any Participant who at any
time has been a Participant in any other defined benefit plan as defined in
Code Section 414(j) maintained by the Employer shall apply as if the total
benefits payable under all such defined benefit plans in which the
Participant has participated were payable from one (1) plan.
(2) The Code Section 415(c) limit with respect to any Participant who at any
time has been a Participant in any other defined contribution plan as
defined in Code Section 414(i) maintained by the Employer shall apply as
if the total annual additions under all such defined contribution plans in
which the Participant has participated were payable from one (1) plan.
B. Basic 415(b) Limitation
(1) Before January I, 1995, a Participant may not receive an annual benefit
that exceeds the limits specified in Code Section 415(b), subject to the
applicable adjustments in that section. On and after January I, 1995, a
Participant may not receive an annual benefit that exceeds the dollar
amount specified in Code Section 415(b)(1 )(A), subject to the applicable
adjustments in Code Section 415(b) and subject to any additional limits
that may be specified in the Plan. In no event shall a Participant's benefit
payable under the Plan in any limitation year be greater than the limit
applicable at the annuity starting date, as increased in subsequent years
pursuant to Code Section 415( d) and the regulations thereunder.
(2) For purposes of Code Section 415(b), the "annual benefit" means a benefit
payable annually in the form of a straight life annuity (with no ancillary
benefits) without regard to the benefit attributable to after-tax Employee
contributions and to any rollover contributions (as defined in Code Section
415(b)(2)(A)). The "benefit attributable" shall be determined in
accordance with Treasury Regulations.
1/2377584.3
C. Adiustments to Basic 415(b) Limitation for Form of Benefit
If the benefit under the Plan is other than the form specified in Section 3.08-B(2),
then the benefit shall be adjusted so that it is the equivalent of the annual benefit,
using factors prescribed in Treasury Regulations.
(1) If the form of benefit without regard to the automatic benefit increase
feature is not a straight life annuity or a qualified joint and survivor
annuity, then the preceding sentence is applied by either reducing the
Code Section 415(b) limit applicable at the annuity starting date or
adjusting the form of benefit to an actuarially equivalent amount
[determined using the assumptions specified in Treasury Regulation
section 1.415(b )-1 (c )(2)(ii)] that takes into account the additional benefits
under the form of benefit as follows:
(2) For a benefit paid in a form to which Code Section 417(e)(3) does not
apply [a monthly benefit], the actuarially equivalent straight life annuity
benefit that is the greater of (or the reduced Limit applicable at the annuity
starting date which is the "lesser of' when adjusted in accordance with the
following assumptions):
(a) The annual amount of the straight life annuity (if any)
payable to the Participant under the Plan commencing at
the same annuity starting date as the form of benefit to the
Participant, or
(b) The annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial
present value as the form of benefit payable to the
Participant, computed using a 5% interest assumption (or
the applicable statutory interest assumption) and (i) for
years prior to January 1, 2009, the applicable mortality
tables described in Treasury Regulation Section 1.417(e)-
1(d)(2) (on and after January 1, 2002, Revenue Ruling
2001-62 or any subsequent Revenue Ruling modifying the
applicable provisions of Revenue Rulings 2001-62), and
(ii) for years after December 31, 2008, the applicable
mortality tables described in Code Section 417(e)(3)(B)
(Notice 2008-85 or any subsequent Internal Revenue
Service guidance implementing Code Section
417(e)(3)(B)); or
(3) F or a benefit paid in a form to which Code Section 417 (e )(3) applies [a
lump sum benefit], the actuarially equivalent straight life annuity benefit
that is the greatest of (or the reduced Code Section 415(b) limit applicable
at the annuity starting date which is the "least of' when adjusted in
accordance with the following assumptions):
14
1/2377584.3
1/2377584.3
(a) The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial
present value as the particular form of benefit payable,
computed using the interest rate and mortality table, or
tabular factor, specified in the Plan for actuarial experience;
(b) The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial
present value as the particular form of benefit payable,
computed using a 5.5 percent interest assumption (or the
applicable statutory interest assumption) and (i) for years
prior to January I, 2009, the applicable mortality table for
the distribution under Treasury Regulation section
1.417(e)-I(d)(2) (on and after January I, 2002, the
mortality table specified in Revenue Ruling 2001-62 or any
subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and (ii) for years
after December 31, 2008, the applicable mortality tables
described in Code Section 417( e )(3 )(B) (Notice 2008-85 or
any subsequent Internal Revenue Service guidance
implementing Code Section 417(e)(3)(B)); or
(c) The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial
present value as the particular form of benefit payable
(computed using the applicable interest rate for the
distribution under Treasury Regulation section 1.417( e)-
l(d)(3) (the 30-year Treasury rate (prior to January 1,2007,
using the rate in effect for the month prior to retirement,
and on and after January 1,2007, using the rate the in effect
for the first day of the plan year with a one-year
stabilization period)) and (i) for years prior to January 1,
2009, the applicable mortality rate for the distribution
under Treasury Regulation section 1.417 (e )-1 ( d)(2) (on and
after January 1, 2002, the mortality table specified in
Revenue Ruling 2001-62 or any subsequent Revenue
Ruling modifying the applicable provisions of Revenue
Ruling 2001-62), and (ii) for years after December 31,
2008, the applicable mortality tables described in Code
Section 417(e)(3)(B) (Notice 2008-85 or any subsequent
Internal Revenue Service guidance implementing Code
Section 417(e)(3)(B)), divided by 1.05.
D. Benefits Not Taken into Account for 415(b) Limitation
For purposes of Section 3.08-B, the following benefits shall not be taken into
account in applying these limits:
15
1/2377584.3
(1) Any ancillary benefit which is not directly related to retirement income
benefits;
(2) That portion of any joint and survivor annuity that constitutes a qualified
joint and survivor annuity;
(3) Any other benefit not required under Code Section 415(b )(2) and Treasury
Regulations thereunder to be taken into account for purposes of the
limitation of Code Section 415(b )(1).
E. Other Adiustments in 415(b) Limitation
(1) In the event the Participant's retirement benefits become payable before
age sixty-two (62), the ,limit prescribed by Section 3.08-B shall be reduced
in accordance with Treasury Regulations pursuant to the provisions of
Code Section 415(b), so that such limit (as so reduced) equals an annual
straight life benefit (when such retirement income benefit begins) which is
equivalent to a one hundred sixty thousand dollar ($160,000) (as adjusted)
annual benefit beginning at age sixty-two (62).
(2) In the event the Participant's benefit is based on at least fifteen (15) years
of service as a full-time employee of any police or fire department or on
fifteen (15) years of military service, the adjustments provided for in (1)
above shall not apply.
(3) The reductions provided for in (1) above shall not be applicable to pre-
retirement disability benefits or pre-retirement death benefits.
F. Less than Ten (1 0) Years of Service Adjustment for 415(b) Limitations
The maximum retirement benefits payable to any Participant who has completed
less than ten (10) years of service shall be the amount determined under Section
3.08-B multiplied by a fraction, the numerator of which is the number of the
Participant's years of service and the denominator of which is ten (10). The
reduction provided by this Section 3.08-F cannot reduce the maximum benefit
below 10%. The reduction provided for in this Section 3.08-F shall not be
applicable to pre-retirement disability benefits or pre-retirement death benefits.
16
I/2377584.3
G. Ten Thousand Dollar ($10,000) Limit
Notwithstanding the foregoing, the retirement benefit payable with respect to a
Participant shall be deemed not to exceed the Code Section 415 limit if the
benefits payable, with respect to such Participant under this Plan and under all
other qualified defined benefit pension plans to which the Participant's Employer
contributes, do not exceed ten thousand dollars ($10,000) for the applicable
limitation year and for any prior limitation year and the Employer has not at any
time maintained a qualified defined contribution plan in which the Participant
participated.
H. COLA
A Participant's applicable Limit will be applied taking into consideration cost of
living increases as required by Code Sections 415(b) and 415(d) and applicable
Treasury Regulations.
I. Code Section 415( c) Limitations on Contributions and Other Additions
After-tax Participant contributions or other annual additions with respect to a
Participant may not exceed the lesser of $40,000 (as adjusted pursuant to Code
Section 415(d)) or 100% of the Participant's compensation.
(1) Annual additions are defined to mean the sum (for any year) of Employer
contributions to a defined contribution plan, Participant contributions, and
forfeitures credited to a Participant's individual account. Participant
contributions are determined without regard to rollover contributions and
to picked-up employee contributions that are paid to a defined benefit
plan.
(2) For purposes of applying Code Section 415(c) and for no other purpose,
the definition of compensation where applicable will be compensation
actually paid or made available during a limitation year, except as noted
below and as permitted by Treasury Regulation section 1.415(c)-2, or
successor regulation; provided, however, that Participant contributions
picked up under Code Section 414(h) shall not be treated as compensation.
(3) Compensation will be defined as wages within the meaning of Code
Section 3401(a) and all other payments of compensation to an Employee
by the Employer for which the Employer is required to furnish the
Employee a written statement under Code Sections 6041(d), 6051(a)(3),
and 6052 and will be determined without regard to any rules under Code
Section 3401(a) that limit the remuneration included in wages based on
the nature or location of the employment or the services performed (such
as the exception for agricultural labor in Code Section 3401 (a)(2)).
(a) However, for limitation years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be
17
included in compensation but for an election under Code Section
I25(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For limitation
years beginning after December 31, 2000, compensation shall also
include any elective amounts that are not includible in the gross
income of the Participant by reason of Code Section 1 32(f)( 4).
(b) For limitation years beginning on and after January 1, 2009,
compensation for the limitation year shall also include
compensation paid by the later of 2Y2 months after a Participant's
severance from employment or the end of the limitation year that
includes the date of the Participant's severance from employment
if:
(i) the payment is regular compensation for services during the
Participant's regular working hours, or compensation for
services outside the Participant'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 Participant while the Participant continued in
employment with the Employer; or
(ii) the payment is for unused accrued bona fide sick, vacation
or other leave that the Participant would have been able to
use if employment had continued; or
(iii) payments pursuant to a nonqualified unfunded deferred
compensation plan, but only if the payments would have
been paid to the Participant at the same time if the
Participant had continued employment with the Employer
and only to the extent that the payment is includible in the
Participant's gross income.
Any payments not described above in this paragraph (b) are not
considered compensation if paid after severance from employment,
even if they are paid within 2 ~ months following severance from
employment, except for payments to the individual who does not
currently perform services for the Employer by reason of qualified
military service (within the meaning of Code Section 414(u)(1)) to
the extent these payments do not exceed the amounts the individual
would have received if the individual had continued to perform
services for the Employer rather than entering qualified military
servIce.
An employee who is in qualified military service (within the
meaning of Code Section 4I4(u)(1)) shall be treated as receiving
compensation from the Employer during such period of qualified
18
I/2377584.3
military service equal to (i) the compensation the Employee would
have received during such period if the Employee were not in
qualified military service, determined based on the rate of pay the
Employee would have received from the Employer but for the
absence during the period of qualified military service, or (ii) if the
compensation the Employee would have received during such
period was not reasonably certain, the Employee's average
compensation from the employer during the twelve (12) month
period immediately preceding the qualified military service (or, if
shorter, the period of employment immediately preceding the
qualified military service).
(c) Back pay, within the meaning of Treasury Regulation Section
IAI5( c )-2(g)(8), shall be treated as compensation for the limitation
year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be
included under this definition.
(4) For limitation years beginning on or after January 1, 2008, a Participant's
compensation for purposes of Section 3.08-1 shall not exceed the annual
limit under Code Section 40I(a)(I7).
J. Notwithstanding anything in this Section 3.08 to the contrary, benefit increases
resulting from the increase in the limitations of Code Section 415 under EGTRRA
shall be limited to all Employees participating in the Plan who have one hour of
Credited Service on or after the first day of the first limitation year ending after
December 31, 2001.
K. For distributions commencing prior to January 1, 2002 and for Participants who
do not have one hour of Credited Service on or after this date, the County shall
apply the limitations contained in Code Section 415 as in effect at the time the
distribution commenced, disregarding Code Section 4I5( e) for distributions
occurring after January 1,2000.
L. In accordance with Code Section 415(b)(1 0), notwithstanding anything in this
Section 3.08 to the contrary, for purposes of Employees who became Participants
before January 1, 1990, the benefit limitations contained in this Section 3.08 shall
not be less than such Participant's Accrued Benefit under the Plan (as determined
without regard to any Plan amendment made after October 14, 1987).
M. Reduction of benefits and/or contributions to all plans, where required, shall be
accomplished by first reducing the Participant's benefit under any defined benefit
plans in which the Participant participated, such reduction to be made first with
respect to the plan in which the Participant most recently accrued benefits and
thereafter in such priority as shall be determined by the plan and the plan
administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans in which the Participant participated,
19
I/2377584.3
such reduction to be made first with respect to the plan in which the Participant
most recently accrued benefits and thereafter in such priority as shall be
established by the plan and the plan administrator for such other plans provided,
however, that necessary reductions may be made in a different manner and
priority pursuant to the agreement of the plan and the plan administrator of all
other plans covering such Participant.
3.09. Enhanced Early Retirement for 1996
Participants who have attained, or who will have attained, the age of 50 on or before
December 31, 1996, and who have completed 5 years of Credited Service as of July 1,
1996, and who are employed by Augusta-Richmond County on October 1, 1975, may
elect to receive retirements benefits under this Section. Such election must be made on a
form designated by Augusta-Richmond County between October 1, 1996 and 4:00 p.m.
on December 23, 1996. Any Participant electing to retire early pursuant to this Section
shall have until 4:00 p.m. on the seventh (7th) day following such election to revoke
same.
A. Enhanced Early Retirement Date: The Enhanced Early Retirement Date of a
Participant shall be the first day of the month next following the date he retires
from the employ of the County under the provisions of this Section.
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Enhanced Early Retirement Date shall be an amount
equal to 2% of the highest salary or wage or remuneration received as a
Participant within the period of seventy-two (72) months immediately preceding
his retirement for each year of Credited Service plus an additional ten (10) years
of service to be added to the years of Credited Service for purposes of computing
the amount of the retirement benefit, up to a maximum of one hundred percent
(100%) of Average Earnings for the Participant's high three (3) years of Earnings,
any contrary provision of this Act notwithstanding. The amount of the monthly
enhanced retirement benefit shall not be reduced for any month or time period by
which the Early Retirement Date of a Participant precedes his Normal Retirement
Date, notwithstanding any other provision of the Plan.
C. Prerequisite for Electing Early Retirement: Any Participant electing Enhanced
Early Retirement shall be required to execute a covenant not to sue in favor of
Richmond County, Georgia and Augusta-Richmond County, Georgia and their
officials, agents, and employees for any and all claims arising out of such
employee's employment by Richmond County, Georgia and/or Augusta-
Richmond County, Georgia, and agreeing not to seek or accept any further
employment by Augusta-Richmond County, or its constitutional and elected
officials. This provision shall not be construed as prohibiting any such person
from seeking any elective position by the State of Georgia or Augusta-Richmond
County.
20
1/2377584.3
21
3.10. Special Unreduced Early Retirement
If a Participant with at least twenty (20) years of Credited Service is permanently
separated from the service involuntarily by action of the Commission or by action of the
elective official under whom he is employed, the Participant may elect to collect Plan
benefits under this Section in lieu of any other Section of this Plan; provided, however,
no Participant shall draw any benefits under this Section, and such benefits shall be
forfeited, if his involuntary separation from the services of the County is found by the
Commission to have been caused by the Participant's willful misconduct, or self-inflicted
injury, or growing out of his attempt to injure another, or due to intoxication or willful
misconduct, or due to the commission of crime under the laws of this State, or any other
State of the United States.
(1) Special Retirement Date. The Special Retirement Date of a Participant
shall be the first day of the month which coincides with or next follows the
date the Participant elects to retire under the provision of this Section.
(2) Amount of Special Unreduced Retirement Benefit. A Participant at
retirement under this Section shall receive a monthly retirement benefit,
commencing on his Special Retirement Date, provided he is then alive,
equal to the amount computed in the same manner as for normal
retirement in accordance with Section 3.01-B, but based on Credited
Service and Earnings as of the Special Retirement Date.
(3) Payment of Special Retirement Benefit. The monthly retirement benefit
payable in the event of special retirement shall be payable on the first day
of each month. The first payment shall be made on the Special Retirement
Date and the last payment shall be the payment due next preceding his
date of death, subject to the provision of Sections 3.12 or 4.02.
3.11. Rollover Distributions
Except where otherwise provided, Section 3.11 shall apply to benefits payable on or after
January 1, 1993, but only to the extent required by the plan qualification rules of Code
Section 401(a).
A. Notwithstanding any contrary provision ofthe Plan, a Distributee may elect, at the
time and in the manner prescribed by the County, to have any portion of an
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover.
B. The special capitalized terms used only in this Section 3.11 shall have the
meanings specified below:
"Direct Rollover" means a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.
I/2377584.3
I/2377584.3
"Distributee" means 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. Effective
January 1, 2010, a Distributee further includes a nonspouse Beneficiary who is a
designated Beneficiary as defined by Code Section 401 (a)(9)(E). However, a
nonspouse Beneficiary may only make a Direct Rollover to an individual
retirement account or individual retirement annuity established for the purpose of
receiving the distribution, and the account or annuity will be treated as an
"inherited" individual retirement account or annuity.
"Eligible Retirement Plan" means any of the following that accepts the
Distributee's Eligible Rollover Distribution: (i) an individual retirement account
described in Code Section 408(a); (ii) an individual retirement annuity described
in Code Section 408(b); (iii) an annuity plan described in Code Section 403(a);
(iv) a qualified trust described in Code Section 401(a); (v) effective January 1,
2002, an annuity contract described in Code Section 403(b); (vi) effective as of
January 1, 2002, 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; or (vii) effective January 1,
2008, a Roth IRA described in Code Section 408A.
"Eligible Rollover Distribution" means any distribution of all or any portion of the
Accrued Benefit 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 ten 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; (iv) effective as of January 1,
2002, any amount that is distributed on account of hardship; and (v) any other
distribution which the Internal Revenue Service does not consider eligible for
rollover treatment, such as certain corrective distributions necessary to comply
with the provisions of Code Section 415 or any distribution that is reasonably
expected to total less than $200 during the year. Effective January 1, 2002, a
portion of a distribution will not fail to be an Eligible Rollover Distribution
merely because the portion consists of after-tax Employee contributions that are
not includible in gross income. However, such portion may be transferred only
(i) 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); (ii) on or after January 1, 2007, to a qualified defined benefit plan
described in Code Section 401(a) or to an annuity contract described in Code
Section 403(b), that agrees to separately account for amounts so transferred (and
earnings thereon), including separately accounting for the portion of the
22
23
distribution that is includible in gross income and the portion of the distribution
that is not so includible; or (iii) on or after January 1, 2008, to a Roth IRA
described in Code Section 408A. Effective January 1, 2002, the definition of
Eligible Rollover Distribution also includes a distribution to a surviving spouse,
or to a spouse or former spouse who is an alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p).
3.12. Normal Forms of Benefits for Married Participants
The provisions of this Section 3.12 shall apply to Participants who have completed at
least one hour of Credited Service on or after August 23, 1984 (with special definitions
set forth herein for terms that begin with initial capital letters and are not elsewhere
defined):
A. Unless an optional form of benefit has been selected pursuant to Section 4 within
the applicable election period pursuant to a Qualified Election, if a Participant
dies after the Participant's Early Retirement Date, the Participant's Eligible
Spouse, if any, will receive the same benefit that would be payable if the
Participant had retired with an immediate Qualified Joint and Survivor Annuity
on the day before the Participant's date of death. The Eligible Spouse may elect
to commence payment under such death benefit within a reasonable period after
the Participant's death. The Actuarial Equivalent of a Participant's Accrued
Benefits which commence later than the date on which payments would have
been made to the Eligible Spouse under a Qualified Joint and Survivor Annuity in
accordance with this provision shall be adjusted to reflect the delayed payment.
B. Unless the Qualified Preretirement Survivor Annuity has been waived within the
election period pursuant to a Qualified Election, if a Participant dies on or before
the Early Retirement Date, the Participant's Eligible Spouse, if any, will receive
the same benefit that would be payable if the Participant had:
(i) separated from service on the date of death (or date of separation
of service, if earlier),
(ii) survived to the Early Retirement Date,
(iii) retired with an immediate Qualified Joint and Survivor Annuity at
the Early Retirement Date, and
(iv) died on the day after the Early Retirement Date.
Notwithstanding any provision in the Plan to the contrary, any Participant
whose retirement date is after December 31, 1992 may not waive a
Qualified Preretirement Survivor Annuity.
C. For purposes of this Section 3.12, Accrued Benefits under this Section 3.12 will
be payable to a surviving Eligible Spouse commencing on the later of: (i) the date
on which the Participant would have reached Early Retirement Date, or (ii) the
1/2377584.3
24
date the Participant dies. Benefits commencing after the Early Retirement Date
will be the Actuarial Equivalent of the Accrued Benefits to which the Eligible
Spouse would have been entitled if Accrued Benefits had commenced at the Early
Retirement Date under an immediate Qualified Joint and Survivor Annuity in
accordance with Section 3.l2(B).
D. A former Participant who has not performed any service after August 22, 1984
but who had completed 10 years of Credited Service before terminating service
and has reached the Early Retirement Date may elect Qualified Preretirement
Survivor Annuity protection by filing a written election with the County. Such
election shall remain in effect until revoked by the Participant.
E. A Participant's retirement benefit shall not be reduced to take account of Survivor
Annuity protection which is in effect during his or her service and before the first
date which could have been such Participant's Early Retirement Date. However,
with respect to any other period before the Participant's Normal Retirement Date
but either on or after the Participant's termination of service or the Participant's
Early Retirement Date in which Qualified Preretirement Survivor Annuity
protection is in effect, such Participant's Accrued Benefit shall be reduced
pursuant to Section 3.02(b)(2). In applying the formula in this Section 3.12(E),
the period for which Qualified Preretirement Survivor Annuity protection is in
effect shall be computed to years and full months, and a Participant's retirement
benefit shall be reduced proportionately for each month. Notwithstanding the
foregoing, however, reductions shall not be made to Accrued Benefits for
Participants who retire on or after December 31, 1992 for any period in which
Qualified Preretirement Survivor Annuity Protection is in effect.
F. The Employer shall provide each Participant a written explanation of: (1) the
terms and conditions of a Qualified Preretirement Survivor Annuity; (2) the
Participant's right to make and the effect of an election to waive the Qualified
Preretirement Survivor Annuity; (3) the rights of a Participant's Eligible Spouse;
and (4) the right to make, and the effect of, a revocation of a previous election to
waive the Qualified Preretirement Survivor Annuity. Such notice shall be
provided within the applicable period with respect to such Participant as defined
in Code Section 417(a)(3)(B). A Participant may elect (with spousal consent) to
waive the requirement that the written explanation be provided at least 30 days
prior to the Annuity Starting Date if the distribution commences more than seven
days after such explanation is provided.
G. Certain Definitions:
(i) "Annuity Starting Date" means the Participant's date of retirement
on either the Normal Retirement Date, Early Retirement Date, or
Delayed Retirement Date, as the case may be.
(ii) "Eligible Spouse" means the spouse or surviving spouse of a
Participant, provided that: (1) a Participant's former spouse will be
I/2377584.3
treated as the Eligible Spouse and a Participant's current spouse
will not be treated as the Eligible Spouse to the extent provided
under a qualified domestic relations order as described in Code
Section 4l4(p), and (II) Accrued Benefits will not be payable to
the Surviving Spouse of the Participant unless the Participant and
such spouse had been married throughout the one-year period
ending on the earlier of the Annuity Starting Date or the date of the
Participant's death.
(iii) "Qualified Election" means a waiver of a Qualified Joint and
Survivor Annuity or a Qualified Preretirement Survivor Annuity
provided under this Section 3.12. Any waiver of a Qualified Joint
and Survivor Annuity or a Qualified Preretirement Survivor
Annuity shall not be effective unless: (a) the Participant's Eligible
Spouse consents in writing to the election; (b) the election
designates a specific alternative Beneficiary, including any class of
beneficiaries or any contingent beneficiaries, which may not be
changed without spousal consent (or the Eligible Spouse expressly
permits designations by the Participant without any further spousal
consent); (c) the Eligible Spouse's consent acknowledges the effect
of the election; (d) the Eligible Spouse's consent is witnessed by a
Plan representative or notary public; and (e) if the election is to
waive the Qualified Preretirement Survivor Annuity provided
under this Section 3.12, the Participant has either terminated
service or completed service through the Early Retirement Date.
Additionally, a Participant's waiver of the Qualified Joint and
Survivor Annuity will not be effective unless such waiver
designates a form of benefit payment which may not be changed
without spousal consent (or the Eligible Spouse expressly permits
designations by the Participant without any further spousal
consent). If it is established to the Employer's satisfaction that
such written consent may not be obtained because there is no
Eligible Spouse or the Eligible Spouse cannot be located, a waiver
will be deemed a Qualified election. Any consent by an Eligible
Spouse obtained under this provision (or establishment that the
consent of an Eligible Spouse may not be obtained) shall be
effective only with respect to such Eligible Spouse. A consent that
permits designations by the Participant without any requirement of
further consent by the Eligible Spouse must acknowledge that the
Eligible Spouse has the right to limit consent to a specific
Beneficiary, and a specific form of benefit where applicable, and
that the Eligible Spouse voluntarily elects to relinquish either or
both of such rights. A revocation of a prior waiver may be made
by a Participant without the consent of the Eligible Spouse at any
time prior to commencement of benefits. The number of
revocations shall not be limited. No consent obtained under this
provision shall be valid unless the Participant has received notice
25
1/2377584.3
26
as provided in Section 3 .12(H), and Section 3.12(1).
(iv) "Qualified Joint and Survivor Annuity" means an immediate
annuity for the life of the Participant with a survivor annuity for
the life of the Eligible Spouse which is 50 percent ofthe amount of
the annuity which is payable during the joint lives of the
Participant and the Eligible Spouse and which is the actuarial
equivalent of a straight life annuity for the life of the Participant at
his or her Normal Retirement Date.
(v) "Qualified Preretirement Survivor Annuity" means the surviVor
annuity provided in Section 3.l2(B).
(vi) "Survivor Annuity" means a Qualified Joint and Survivor Annuity
or Qualified Pre-retirement Survivor Annuity.
H. The Employer shall provide each Participant no less than 30 days and no more
than 90 days prior to Annuity Starting Date, a written explanation of: (1) the
terms and conditions of a Qualified Joint and Survivor Annuity; (2) the
Participant's right to make, and the effect of, an election to waive the Qualified
Joint and Survivor Annuity form of benefit; (3) the rights of a Participant's
Eligible Spouse; (4) the right to make, and the effect of, a revocation of a previous
election to waive the Qualified Joint and Survivor Annuity; and (5) the relative
values of the various optional forms of benefit under the Plan.
(i) Notwithstanding the foregoing, the County, to the extent permitted
by applicable United States Department of Treasury regulations,
may provide the written explanation after the Annuity Starting
Date, in which case the election period shall end on the 30th day
after the date on which such explanation is provided.
(ii) A Participant may elect (with spousal consent) to waive the
requirement that the written explanation be provided at least 30
days prior to the Annuity Starting Date (or the 30-day election
period described above in subparagraph (a)) if the distribution
commences more than seven days after such explanation is
provided.
(iii) Notwithstanding the foregoing, effective as of January 1, 1997, in
accordance with Code Sections 4l7(a)(7)(A) and 4l7(a)(7)(B), a
Participant may elect an Annuity Starting Date which is less than
thirty (30) days after the written explanation, required by Code
Section 4l7(a)(3), is furnished to the Participant and his or her
spouse, provided the following requirements are met: (a) the
Employer provides information to the Participant clearly indicating
that the Participant has a right to at least a 30-day period in which
to consider whether to waive the automatic form of distribution
1/2377584.3
27
and consent to another form of distribution; (b) the Participant is
permitted to revoke an affirmative distribution election at least
until the Annuity Starting Date or, if later, at any time prior to the
expiration of the seven day period beginning with the day after
such explanation is provided to the Participant; (c) the Annuity
Starting Date must be a date after the date that the explanation is
provided to the Participant, but may be a date before the date that
an affirmative distribution election is made by the Participant; and
(d) the distribution must not actually commence before the
expiration of the foregoing seven day period.
I. The Employer shall furnish or cause to be furnished to the Participant information
concerning elections under Section 3.12 under procedures developed by the
Employer in accordance with the Code. Any election under Section 3.12 or any
modification or revocation of such election must be made by the Participant prior
to the date that payments to the Participant commence pursuant to the provisions
of the Plan; provided, however, that under such rules and procedures as may be
adopted by the Employer and provided the Participant supplies such additional
information as the Employer may request (including evidence of the Participant's
or his or her Beneficiary's good health), a Participant may modify or revoke an
election, subject to Sections 3.12(H) and 3.12(1), after the date payments are to
commence.
3.13. Supplemental Retirement Benefit. Participants who were currently Employees in active
service and employment as of January 1, 1998, and Participants who have retired, other
than those Participants who retired under the Enhanced Early Retirement provided for in
Section 3.09 hereof, shall receive, in addition to their normal retirement benefit, a
payment of One Hundred Dollars ($100.00) per month until their death or termination of
participation in the Plan.
3.14. One-Time Enhanced Normal Retirement Incentive Program ("ENRIP") for 2009
Participants who have attained, or who will have attained, the age of 60 and who have
completed 25 years of Credited Service on or before December 31, 2009, and who are
employed by Augusta-Richmond County on October 31, 2009, may elect to receive
retirements benefits under this Section. Elected or appointed members of the Governing
Authority and former Employees are not eligible to participate in the ENRIP. Such
election must be made on a form designated by Augusta-Richmond County between
December 2,2009 and January 15,2010. Any Participant electing to retire early pursuant
to this Section shall have until 4:00 p.m. on the seventh (7th) day following such election
to revoke same. The effective date of retirement must be no later than February 1, 2010.
A. Enhanced Early Retirement Date: The Enhanced Normal Retirement Date of a
Participant shall be the first day of the month next following the date he retires
from the employ of the County under the provisions of this Section.
1/2377584.3
B. Amount of Retirement Benefit: Subject to the applicable limits under Code
Section 415, the monthly retirement benefit payable to a Participant who retires
on his Enhanced Normal Retirement Date shall be an amount equal to an amount
computed in accordance with Section 3.0l-B. Such monthly benefit shall be
computed based on Average Earnings as of his Enhanced Normal Retirement
Date and Credited Service as of his Enhanced Normal Retirement Date, which
Credited Service shall be increased by one year for any Participant who is
otherwise eligible to retire on his Normal Retirement Date and increased by the
number of months of any accrued sick leave, up to a maximum of six (6) months,
as of his Enhanced Normal Retirement Date. The amount of the monthly
enhanced retirement benefit shall not be reduced for any month or time period by
which the Enhanced Normal Retirement Date of a Participant precedes his
Normal Retirement Date, notwithstanding any other provision of the Plan.
C. Prerequisite for Electing Enhanced Normal Retirement: Any Participant electing
Enhanced Normal Retirement shall be required to execute a covenant not to sue in
favor of Richmond County, Georgia and Augusta-Richmond County, Georgia and
their officials, agents, and employees for any and all claims arising out of such
employee's employment by Richmond County, Georgia and/or Augusta-
Richmond County, Georgia, and agreeing not to seek or accept any further
employment by Augusta-Richmond County, or its constitutional and elected
officials. This provision shall not be construed as prohibiting any such person
from seeking any elective position by the State of Georgia or Augusta-Richmond
County.
D. Administrator's Authority to Approve/Disapprove Election or Delay Retirement
under ENRIP: The Augusta-Richmond County Administrator has the authority
to approve or disapprove elections filed by Participants who are eligible under the
ENRIP based upon the Administrator's evaluation of the criticality of affected
positions and projected savings associated with employee resignations from said
positions. The Administrator will indicate his approval or disapproval of a
Participant's election in a space provided on the Participant's election formes). If
the Augusta-Richmond County Administrator does not indicate his approval or
disapproval of the eligible Participant's election on the Participant's election form
within seven (7) days after the Human Resources Director receives the
Participant's completed election formes), then the Administrator will be deemed
to have approved the Participant's election. The Augusta-Richmond County
Administrator also has the authority to approve a Participant's election,
contingent upon the Participant's continued employment with Augusta-Richmond
County for a period of time to be designated by the Administrator on the election
form (not to exceed 1 year from the date of the Participant's election), if the
Administrator determines that such a delay is necessary in order to allow
sufficient time to recruit and/or fully train a replacement for the Participant. The
Administrator will indicate his contingent approval of a Participant's election and
the Participant's delayed termination date in a space provided on the Participant's
election formes). If the Administrator does not indicate his contingent approval
and a delayed termination date for the Participant on the Participant's election
28
1/2377584.3
29
form within seven (7) days after the Human Resources Director receives the
Participant's completed election formes), then the Administrator will be deemed
to have approved the Participant's election without a delayed termination date. If
the Administrator approves a Participant's election contingent upon the
Participant's continued employment with Augusta-Richmond County for a
designated period of time, and if the Participant's employment terminates for any
reason prior to the end of such period, then the Participarlt will not be eligible to
receive the ENRIP benefits provided herein, notwithstanding the Participant's
election, unless the Administrator approves the Participarlt's resignation as of an
earlier date.
E. Voluntary Election: An eligible Participant's election to participate under the
ENRIP shall be completely voluntary. Eligible Participants are permitted but not
required to participate, in accordance with and subject to the requirements of this
Section 3.14.
F. This ENRIP shall be interpreted and administered in a manner to be consistent
with the ENRIP program provided by the GMEBS Temporary Addendum, other
than as specified differently herein.
SECTION 4.
DEATH BENEFITS
4.01. Death Prior to Retirement
A. Non-Duty Connected Death
This paragraph shall only apply if any Plan benefits are paid pursuant to Section
3.12. If a Participant is separated from the service of his employment, as defined
in the Plan, by death, there shall be returned to his or her surviving spouse if one,
and if not, then to his or her next of kin upon application therefor, one hundred
(100) per centum of his or her Contributions, less any payments made to him or
her by reason or any other provision of this Plan, and less any sum that might be
due by him or her to Richmond County, which amount so due shall by paid to the
County; and when one hundred per centum of his or her Contributions, less
authorized deductions, if any, is returned, then his or her estate, or his or her
personal representative shall receive from the Fund, no other sums whatsoever.
Notwithstanding the foregoing, if a terminated Participant entitled to the deferred
monthly retirement benefit provided in Section 3.0l-B dies prior to the
commencement of such benefit, his Beneficiary shall receive any payment or
payments due under Section 3.12 and a lump sum amount equal to the total of his
contributions with 5% interest, computed from January 1, 1977, such amount to
be payable with 60 days following his date of death.
1/2377584.3
30
B. Duty Connected Death
This paragraph shall only apply if any Plan benefits are paid pursuant to Section
3.12. The widow of a Participant who is killed in line of duty, as hereinafter
defined, may elect, in lieu of receiving a refund of pension contributions under the
provisions of the Plan, to receive a pension computed at twenty-five percent
(25%) of the Participant's monthly salary or wages at the time of his death, which
shall be payable monthly to the widow, until her death or remarriage, or in the
event of her death leaving a child or children of the Participant surviving her, who
have not reached their 18th birthday, pension shall be continued to be paid for the
benefit of such child or children as long as they remain unmarried and until they
reach their 18th birthday; and if there be no widow living at the time of the death
of such Participant killed is herein defined, but there be a child or children of
Participant living as of date who have not reached their 18th birthday, the
guardian of children may make a similar election as that provided for a widow
and, in the event such election is made, a pension in amount shall be paid for the
benefit of such child or children as long as they remain unmarried and until they
reach their 18th birthday.
As used herein, "killed in line of duty" shall rnean killed while actively
performing the prescribed duties of the Participant's job and not resulting from
any misconduct or negligence of such Participant; provided, however, that no
payments shall be made under the provisions of this section until such date as any
monthly benefits provided under the Workmen's Compensation Laws of Georgia
shall have ceased.
4.02. Death After Retirement
If a Participant dies subsequent to his retirement and had elected to receive a deferred
benefit under Section 3.02-B(1) or Section 3.05-B but such benefit had not commenced,
his Beneficiary shall receive a lump-sum cash amount equal to one-half of the benefits of
the deceased Employee, under the provisions of this Plan; provided that no benefits shall
be payable hereunder if Plan benefits are paid under Section 3.12 or 4.01.
4.03. Adiusted Benefit
The amount of monthly retirement benefit provided under this Section 4 shall be adjusted
by the cost-of-living adjustment as provided in Section 3.06 upon commencement of such
benefit.
4.04. Designation of Beneficiaries
A. Each Participant shall designate a Beneficiary to receive the benefits, if any,
which may be payable in the event of his death pursuant to the provision of
Section 3 or 4. Such designation shall be made in writing on a form provided by
the Commission and shall be signed and filed with the Commission. The
Participant may change his designation from time to time by filing the proper
form with the Commission, and each change shall revoke all prior designations by
1/2377584.3
the Participant. In each such designation the Participant may name one or more
primary Beneficiaries and one or more contingent Beneficiaries. If no
Beneficiary designated by the Participant survives him, the Commission may
direct the payment of such benefits to (a) the spouse of the deceased, if living;
otherwise, to (b) the descendents of the deceased Participant per stirpes or on their
behalf as provided in Section 9.05; or if none, to (c) the legal representative of the
estate of the deceased Participant.
B. In the event of the death of a Beneficiary who survives the Participant and who, at
his or her death, is receiving benefits as described in paragraph A of this Section,
the remaining benefits, if any, shall be payable to a person designated by the
Participant to receive the remaining benefits, or, if no person was so designated,
then to a person designated by the Beneficiary of the deceased Participant;
provided, however, that if no person so designated be living upon the occurrence
of such contingency, the remaining benefits, if any, shall be payable to (a) the
spouse of the deceased Participant, if living; otherwise to (b) the descendents of
the deceased Beneficiary per stirpes or on their behalf as provided in Section 9.05;
or if none, to (c) the legal representative of the estate of the deceased Beneficiary,
as the Commission in its sole discretion may determine.
C. In the event the Commission does not direct the payments as specified in
paragraph A or B of this Section, the Commission may elect to have a court of
applicable jurisdiction determine to whom payments should be made, and the
Commission shall follow such instructions as the court may give.
SECTION 5.
CONTRIBUTIONS
5.01. County Contributions
Contributions by the County shall equal five percent (5%) of the aggregate of any
Participant's Earnings, plus such additional amounts as shall be determined by the
County, based upon the recommendations of an actuary. County contributions shall be
paid to the Fund and shall be used only for the benefit of the Participants and
Beneficiaries of the Plan; provided that on the recommendation of the County's actuary,
who shall be a member of the American Academy of Actuaries, or an organization of
which one or more members is a member of the American Academy of Actuaries, the
Commission may increase or decrease the County's contributions as recommended by
such actuary.
5.02. Participant Contributions
A. Each Participant shall contribute to the Fund an amount equal to five (5%) per
cent of his Earnings. Contributions by the Participant shall cease at the earlier of
(a) his date of termination of employment for any reason, and (b) his actual
retirement date. Participant contributions shall be made by payroll deduction and
in such manner as determined by the Commission.
31
1/2377584.3
B. Withdrawals of Participant Contributions: In all cases where previously adopted
provisions of the 1945 act as amended call for participant contributions to be
refunded that such refunding will be with "interest" as computed in subsection A
of this Section.
C. Return of Contributions: Any Participant who voluntarily absolutely separates
from the service of the Commission or from the service of the elective officer by
whom he is employed or who is discharged as provided by the "Richmond
Officers and Employees' Act" in Ga. 1. E.S., 1937-1938, pp. 875-880 inclusive,
as amended, or who was discharged by the elective officer under whom he is
employed before being retired under any provisions of the Plan, shall have
returned to the Participant or his estate, within ninety (90) days of the date of
application after he is absolutely separated or his discharge becomes final, the
entire amount of his Contributions, without Interest, less any disability payments
he has received. Once the sum is returned to the Employee, he shall not have any
further claim or right to receive any fund, or payments whatsoever of any kind of
character from the Fund.
SECTION 6.
ADMINISTRATION OF PLAN
6.01. Administration
A. Powers of the Commission: The Commission shall control the administration of
the Plan hereunder, with all powers necessary to enable it properly to carry out its
duties in that respect. Not in limitation, but in amplification of the foregoing, the
Commission shall have the power to construe the Plm and to determine all
questions that shall arise thereunder, and shall also have all the powers elsewhere
herein conferred upon it. It shall decide all questions relating to the eligibility of
Employees to participate in the benefits of the Plan, and shall determine the
benefits to which any Participant, Beneficiary, or Joint Annuitant may be entitled
under the Plan. The decisions of the Commission upon all matters within the
scope of its authority shall be final and binding upon all parties to this instrument,
Participants, and Participant's Beneficiaries and Joint Annuitants.
B. Records of the Commission. All acts and determination of the Commission shall
be duly recorded by the County clerk, or under his supervision, and all such
records, together with such other documents as may be necessary for the
administration of the Plan shall be preserved in the custody of such clerk.
C. Exemption from Liability of the Commission. The members of the Commission,
and each of them, shall be free from all liability, joint, and several, for their acts,
omissions and conduct, and for the acts, omissions and conduct of their duly
constituted agents, in the administration of the Plan, and the County shall
indemnify and save each of them harmless from the effects and consequences of
their acts, omissions, and conduct in their official capacity, except to the extent
that such effects and consequences shall result from their own willful misconduct.
32
1/2377584.3
33
D. Miscellaneous: The Commission shall prepare and distribute to the Employees
information concerning the Plan, at the expense of the County, in such manner as
it shall deem appropriate.
To enable the Commission to perform its functions, the County shall supply full
and timely information of all matters relating to the compensation and length of
service of all Participants, their retirement, death or other cause of termination of
employment, and such other pertinent facts as the Commission may require.
The Commission shall be entitled to rely upon all tables, valuations, certificates,
and reports furnished by an actuary, who shall be a member of the American
Academy of Actuaries, or an organization which one or more members is a
member of the American Academy of Actuaries and upon all certificates and
reports made by an accountant selected or approved by the Commission. The
Commission shall be fully protected in respect to any action taken or suffered by
it in good faith in reliance upon the advice or opinion of any actuary, accountant,
or attorney, and all action so taken or suffered shall be conclusive upon each
member of the Commission and upon all persons interested in the Plan.
SECTION 7.
TRUST FUND AND TRUSTEES
7.01. Trust Fund
There is created a permanent pension Fund for the benefit of each Participant covered by
this Plan, and the Fund shall be known as the "Richmond County Employees' Pension
Fund" and shall be kept in a separate account earmarked "Richmond County Employees'
Pension Fund", with a separate, permanent record thereof. The assets of the Fund shall
be held and administered by the Commission. The Fund shall consist of all payments by
the County and Participants to the Fund and earnings from investments. The assets of the
Fund shall be valued as of the end of each plan year, and at any other time required by the
Commission, and at the then existing book and market value. The Fund is hereby
declared not to be the property of the Commission or the County, and this includes any
sum paid in or directed to be paid in by the Commission and it shall reserve no property
in any sum raised or due by virtue of the Plan. The Commission may not engage in a
transaction prohibited by Code Section 503(b).
The Commission shall maintain a separate and permanent record of the Fund. All
decisions of the Commission in regard to the Fund or any payments or withdrawals
therefrom shall be recorded in the minutes of the Commission and also entered on the
permanent record kept by the Commission and such permanent record shall be open to
inspection by any interested person at all regular business hours.
The Commission shall keep the Treasurer and Clerk of the Commission bonded at all
times and in an amount equal to the total Fund in possession of or under the control of
either; provided, however, that such bond shall not exceed Two-Hundred Thousand
1/2377584.3
Dollars ($200,000.00) as to each party. The bond shall also cover any acting Treasurer or
Clerk.
7.02. Amendment of Trust
The County shall have the right at any time, by an instrument in writing duly executed by
the Commission and to the Trustee, to modify, alter, or amend this Plan and Trust in
whole or in part; provided, however, that the duties, powers, and liability of the Trustee
hereunder shall not be substantially increased without its written consent, and provided
further, that no such amendment shall have the effect of revesting in the County any part
of the principal or income of the Fund.
7.03. Discontinuance of Trust and Vesting
The County expressly reserves the right to terminate this Plm and Trust Agreement at
any time. Upon termination of the Plan by the County, or complete discontinuance of
Contributions thereunder, having the effect of termination, the rights of each Participant
to benefits accrued to the date of such termination or discontinuance, to the extent then
funded, shall be nonforfeitable. In either case the Commission shall, upon instructions
from the County, continue to administer the Fund as provided in Section 7. No part of
the Fund shall at any time revert to the County unless all benefits for Participants and
their Payees have been provided.
7.04. Powers of the Commission
The Commission shall have the following power and authority in the administration of
the Fund to be exercised in accordance with and subject to the provisions of Section 7.05
hereof:
(a) control the administration of the Plan hereunder, with all powers necessary to
enable it to properly carry out its duties in that respect. Not in limitation, but in
amplification of the foregoing, the Commission shall have the power to construe
the Plan and to determine all questions that shall arise thereunder, and shall also
have all the powers elsewhere herein conferred upon it;
(b) decide all questions relating to the eligibility of Employees to participate in the
benefits of the Plan; and
(c) determine the benefits to which any Participant or Beneficiary may be entitled
under the Plan.
The decisions of the Commission upon all matters within the scope of this authority shall
be final and binding upon all parties to this instrument, participants and their
beneficiaries.
All acts and determinations of the Commission shall be duly recorded by the County
clerk, or under his supervision and all such records, together with such other documents
34
1/2377584.3
as may be necessary for the administration of the Plan, shall be preserved in the custody
of such clerk.
The Commission shall prepare and distribute to the Employees information concerning
the Plan at the expense of the County, in such manner as it shall deem appropriate.
To enable the Commission to perform its functions, the County shall supply full arld
timely information of all matters relating to the compensation and length of service of all
Participants, their retirement, death or other cause of termination of employment, and
such other pertinent facts as the Commission may require.
7.05. Investment of Fund
The County comptroller shall be the custodian of such Fund and shall deposit the same in
a bank or banks, and, pursuant to the direction of the pension fund investment committee,
which committee shall consist of the members of the Augusta-Richmond County
Commission, shall invest and reinvest, from time to time, any portion thereof not
immediately needed for the payment of pensions, in securities approved by law for the
investment of trust funds; and, in such securities other than those specifically approved
by law for the investment of trust funds, as the pension fund investment committee shall
deem proper, from time to time; provided, however, that the amount of the pension fund
which may be invested in such securities other than those specifically approved by law
for the investment of trust funds may not exceed fifty percent (50%) of the total amount
of the fund then outstanding; and in addition thereto, the investment committee may
invest such funds in bonds and debentures assumed or guaranteed by such existing
corporation or institution existing under the laws of the United States of America, or any
state thereof, provided such bonds or debentures are rated at the time of their purchase,
by a nationally recognized securities rating service, as AAA (Aaa), AA (Aa) or A (a) in
lieu thereof, provided such bonds or debentures are the type in which domestic life
insurance companies are permitted to invest under the provisions of Section 33-11-20 of
the Official Code of Georgia Annotated (Ga. Code Ann. S 56-1016), as amended. The
amount of the pension fund which may be invested in the bonds and debentures of any
one corporation may not exceed ten percent (10%) of the total amount of such fund then
outstanding.
Withdrawal from the fund for investment purposes shall be accomplished by vouchers
drawn by the Treasurer, counter-signed by the mayor of the County or the mayor's
designee.
7.06. Taxation
The Commission is hereby authorized to levy a tax from time to time to raise a sufficient
sum to meet the requirements of the Plan for paying into the Fund an amount equal to the
amount contributed by Participants to the Fund; and in the event such amount contributed
by the Participants should be increased to five percent (5%) Earnings and the five percent
(5%) contributed by the Commission, shall be insufficient to pay the pensions provided
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for in the Plan, then and in that event the Commission shall levy a sufficient tax to meet
all payments as required by the Plan, and from time to time to continue to do so.
7.07. Resignation of Trustee
The Trustee may resign as Trustee of the Trust at any time by giving sixty (60) days
written notice to the County, or with the consent of the County, may resign at any time.
At such time as the resignation becomes effective, the Trustee shall render to the County
an account of its administration of the Fund during the period following that covered by
its last annual account, and shall perform all acts necessary to transfer and deliver the
assets of the Fund to its successor.
7.08. Successor Trustees
In the event of vacancy of one or more individuals in the Trusteeship of this Trust
occurring at any time, the Commission shall designate and appoint qualified successor
Trustee(s) until such individuals are elected by the electorate.
7.09. Disbursements
Upon written direction (which may be a continuing one) from the Commission as to the
name of any person to whom money is to be paid from the Fund and the amount thereof,
checks shall be drawn by the Trustee in the name of the person designated by the
Commission and deliver such checks in such manner and amounts and at such time as the
Commission shall direct. In the event the Trustee shall deem it necessary to withhold any
distribution pending compliance with legal requirements with respect to probate of wills,
appointment of personal representatives, payment of or provision for estate or inheritance
taxes, or for death duties or otherwise, the Trustee shall withhold payment pending
receipt of the instructions from the County Attorney to make such distribution.
SECTION 8.
AMENDMENT AND TERMINATION
This Section 8 shall apply only to the extent that it does not otherwise conflict with applicable
Georgia law, including, but not limited to, Article I, Section I, Paragraph X of the Georgia
Constitution.
8.01. Amendment of the Plan
The County shall have the right at any time pursuant to authorization of the Commission,
to amend any or all of the provisions of the Plan; provided, however, that no such
amendment shall authorize or permit any part of the Fund to be diverted to purposes other
than for the exclusive benefit of Participants and their Payees; and further provided, that
no amendment shall have the effect of revesting in the County any portion of such Fund
except such amounts which remain in the Fund after termination of the Plan and after all
liabilities under the Plan have been satisfied.
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8.02. Termination of the Plan
The County expects this Plan to be continued indefinitely but, of necessity, reserves the
right to terminate the Plan and its contributions thereunder at any time by action of the
Commission; provided, however, that should the County terminate the Plan or completely
discontinue contributions hereunder so as the amount to a Plan termination, the accrued
benefit of each Participant, to the extent then funded, shall become fully vested and
nonforfeitable as the date of termination.
In the event of termination of the Plan and upon receipt of written notice of such
termination, the Commission shall arrange for the Fund to be apportioned and distributed
in accordance with the following procedure:
A. The Commission shall determine the date of distribution and asset value of the
Fund to be distributed, taking into account the expenses of distribution.
B. The Commission shall determine the method of distribution of the asset value --
that is, whether distribution to each Participant or Payee entitled to benefits shall
be by payment in a lump-sum cash amount, the purchase of an annuity from an
insurance company, or otherwise.
C. The Commission shall apportion the asset value in the priority and manner set
forth below, on the basis that the amount required to provide any given retirement
benefit shall mean the actuarially computed single-sum value of such benefit,
except that if the method of distribution determined under paragraph B of this
Section involves the purchase of an insured annuity, the amount required to
provide the given retirement benefit shall mean the single premium payable for
such annuity:
(1) An amount equal to each Participant's Contributions under the Plan with
interest, less the aggregate amount of any benefit payments previously
made with respect to such Participant, will be determined and such amount
apportioned from the asset value. Such asset value, if insufficient to
provide such amounts in full will be apportioned among such Participants
in proportion to the amounts determined with respect to them.
(2) If there be any asset value remaining after the apportionment under (1)
above, apportionment shall next be made with respect to each retired
Participant receiving a retirement benefit hereunder an such date, each
person receiving a retirement benefit on such date on account of a retired
(but since deceased) Participant, each Participant who has, by such date,
reached his Normal Retirement Date but has not yet retired, in the amount
required to provide such retirement benefit as of the date of termination of
the Plan, less any apportionment made in (1) above, provided that, if such
remaining asset value be less than the aggregate of such amounts, such
latter amounts shall be proportionately reduced so that the aggregate of
such reduced amounts will be equal to such asset value.
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(3) If there be any asset value remaining after the apportionments under (1)
and (2) above, apportionment shall next be made with respect to each
active Participant on such date who has reached his Early Retirement Date
but has not yet retired, in the amount required to provide such retirement
benefit as of the termination date of the Plan, less any apportionment in (1)
above, provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder, such latter amounts shall
be proportionately reduced so that the aggregate of such reduced values
will be equal to such remaining asset value.
(4) If there be any asset value remaining after the apportionments under (1),
(2), and (3) above, apportionment shall next be made with respect to each
active Participant on such date who has completed at lease 10 years of
Credited Service and each former Participant then entitled to a deferred
benefit under Section 3.05-B hereof who has not, by such date, reached his
Normal Retirement Date, none of whom is entitled to an apportionment
under (2) above, in the amount required to provide the actuarially
determined value of the accrued benefit as of the termination date of the
Plan, less any apportionment in (1) above; provided that, if such remaining
asset value be less than the aggregate of the amounts apportioned
hereunder, such latter amounts shall be proportionately reduced so that the
aggregate of such reduced values will be equal to such remaining asset
value.
(5) If there be any asset value remaining after apportionments under (1), (2),
(3), and (4) above, apportionment shall lastly be made with respect to each
active Participant on such date who is not entitled to an apportionment
under (2), (3), or (4) above, in the amount required to provide the
actuarially determined value of the accrued benefit as of the date of
termination of the Plan, less any apportionment in (1) above; provided
that, if such remaining asset value be less than the aggregate of the
amounts apportioned hereunder, such latter amounts shall be
proportionately reduced so that the aggregate of such reduced values will
be equal to such remaining asset value.
(6) In the event that any asset value remains after the full apportionments
specified in paragraphs (1), (2), (3), (4), and (5) above, such excess shall
revert to the County.
D. The Commission shall cause to be distributed, in accordance with the manner of
distribution determined under paragraph B of this Section, the amounts
apportioned under paragraph C of this Section.
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SECTION 9.
MISCELLANEOUS
9.01. Headings
The headings and subheadings in this Plan have been inserted for convenience of
reference only and are to be ignored in any construction of the provisions hereof.
9.02. Construction
In the construction of this Plan the masculine shall include the feminine and the singular
the plural in all cases where such meanings would be appropriate.
Each Section of this Plan and every part of each Section are declared to be independent
Sections and the holding of any Section or part of any section to be void shall not affect
the other Sections or parts of such Sections, and it is declared that the other Sections not
so held to be void, or parts of Sections not held to be void would have been enacted
regardless of any Section or part of any Section being held void.
The Plan constitutes a contract, from the effective date of this Act, between the
Commission and the County and each Employee who is or who may hereafter become
entitled to benefits under the Plan, which includes Participants now existing or that
hereafter exist.
This Plan shall be construed in accordance with the laws of the State of Georgia.
9.03. Nonalienation
No benefits payable under the Plan will be subject to the claim or legal process of any
creditor of any Participant or beneficiary, and no Participant or beneficiary will alienate,
transfer, anticipate, or assign any benefits under the Plan, except that distributions will be
made pursuant to (a) qualified domestic relations orders issued in accordance with Code
Section 4l4(P), (b) judgments resulting from federal tax assessments, and (c) as
otherwise required by law.
9.04. Compliance with HEART Act.
Effective with respect to deaths occurring on or after January 1,2007, while a Participant
is performing qualified military service (as defined in chapter 43 of title 38, United States
Code), to the extent required by Code Section 401 (a)(37), survivors of a Participant are
entitled to any additional benefits that the Plan would provide if the Participant had
resumed employment and then died, such as accelerated vesting or survivor benefits that
are contingent on the Participant's death while employed.
9.05. Legally Incompetent
If any Participant or Payee is a minor, or, in the judgment ofthe Commission is otherwise
legally incapable of personally receiving and giving a valid receipt for any payment due
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40
him hereunder, the Commission may, unless and until claim shall have been made by a
duly appointed guardian or committee of such person, direct that such payment or any
part thereof be made to such person's spouse, child, parent, brother, or sister or other
person deemed by the Commission to have incurred expense for or assumed
responsibility for the expenses of such person. Any payment so made shall be a complete
discharge of any liability under this Plan for such payment.
9.06. Benefits Supported Only By Fund
Any person having any claim under the Plan will look solely to the assets of the Fund for
satisfaction. In no event will the County, or any of its officers, members of the
Commission, or agents, be liable in their individual capacities to any person whomsoever,
under the provisions of the Plan.
9.07. Discrimination
The County, through the Commission, shall administer the plan in a uniform and
consistent manner with respect to all Employees and shall not permit discrimination in
favor of officers, supervisory or highly-paid employees.
9.08. Limitation of Liability: Legal Actions
It is expressly understood and agreed by each Employee who becomes a Participant
hereunder, that except for its or their willful negligence or fraud, neither the County, the
Trustee, nor the Commission shall be in any way subject to any suit or litigation, or to
any legal liability, for any cause or reason whatsoever, in connection with this Plan or its
operation, and each such Participant hereby releases the County, Trustee, Commission,
and all its officers and agents from any and all liability or obligation.
9.09. Claims
Any payment to a Participant, Joint Annuitant, or Beneficiary, or to their legal
representatives, in accordance with the provision of this Plan, shall to the extent thereof
be in full satisfaction of all claims hereunder against the Commission, Trustee, and the
County, any of whom may require such Participant, Beneficiary, or legal representative,
as a condition precedent to such payment, to execute a receipt and release therefore in
such form as shall be determined by the Commission.
9.10. Forfeitures
Forfeitures arising from any cause whatsoever under this Plan shall not be applied to
increase the benefits any Participant would otherwise receive under the Plan at any time
prior to the termination of the Plan or the complete discontinuance of County
contributions hereunder; forfeitures shall be applied to reduce the County's contributions
under the Plan in the then current or subsequent years.
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9.11. Maximum of One Benefit at a Time
There shall not be paid to any person more than one benefit at a time under the Plan.
9.12. Applications
All applications for pensions shall be made to the Clerk of the Commission on forms
prescribed by the Commission and printed for use in such cases, and it shall be the duty
of the Commission to provide such forms at all times and the Clerk of the Commission
shall immediately transmit such application to the County Attorney for his approval as to
form and procedure, and upon his approval, same shall be presented to the Commission.
9.13. Report of Treasurer
At the close of each year the Treasurer shall make a written report to the Commission of
funds on hand and liabilities of the Fund, both accrued and contingent.
9.14. Consequence of Plan Violation
Should any person subject to the Plan or administering the Plan violate the provisions of
the Plan, in addition to any other applicable penalties, such person shall be guilty of a
misdemeanor for such violation, and shall be punished accordingly under the laws of the
state of Georgia.
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IN WITNESS WHEREOF, the County has caused this amended Plan to be duly executed
as of the
Dec 1st
day of
December
,2009, but effective as of January 1,2010.
ATT~ST: :k
h/
c1mef)J @/
(Seal) ;)
Clerk
AUGUSTA-RICHMOND COUNTY
COMMISSION, AS SUCCESSOR TO THE
RICHMOND COUNTY BOARD OF
COMMISSIONERS, AS EMPLOYER
MayC}c/VJ. f
By: cQJ4. (;
Mayor F
waive 2nd reading
AUGUSTA-RICHMOND COUNTY
COMMISSION, AS SUCCESSOR TO THE
RICHMOND COUNTY BOARD OF
COMMISSIONERS, AS TRUSTEE
This Ordinance shall be effective as of January 1, 2010. All ordinances and parts of Ordinances
in conflict with the provisions of this Ordinance are hereby repealed.
APPROVED AND ENACTED by the Augusta-Richmond County Commission, on the
1st day of December ,2009.
c) utA> 0---
Mayor d
ATTEST:
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Publish in the Augusta Chronicle December 10, 2009
1/2377584.3
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