HomeMy WebLinkAboutGEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM_ MASTER DEFINED BENEFIT RETIREMENT PLAN DOCUMENT •
GEORGIA MUNICIPAL EMPLOYEES
BENEFIT SYSTEM
MASTER DEFINED BENEFIT RETIREMENT PLAN
DOCUMENT
AMENDED AND RESTATED
AS OF JANUARY 1, 2013
(WITH AMENDMENTS TAKING EFFECT ON OR BEFORE
JANUARY 1, 2017)
Administered by:
Georgia Municipal Employees Benefit System
201 Pryor Street, SW
Atlanta, Georgia 30303
Telephone: 404-688-0472
Facsimile: 678-686-6289
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TABLE OF CONTENTS •
Page
ARTICLE I. PURPOSE OF PLAN 1
ARTICLE II. DEFINITIONS 2
Section 2.01. "Accrued Benefit" 3
Section 2.02. "Actuarial Equivalent" 3
Section 2.03. "Actuary" 3
Section 2.04. "Addendum" 3
Section 2.05. "Adjustment Date" 3
Section 2.06. "Administrator" 3
Section 2.07. "Adopting Employer" 3
Section 2.08. "Adoption Agreement" 3
Section 2.09. "Applicable Form" 4
Section 2.10. "Board of Trustees" or "Board" 4
Section 2.11. "Bona Fide Separation from Service" 4
Section 2.12. "Child" or "Children" 4
Section 2.13. "Code" 5
Section 2.14. "Code Section 415(d) Cost of Living Adjustment" 5
Section 2.15. "Contract" 5
Section 2.16. "Contributions" 5
Section 2.17. "Cost of Living Base Figure" 5
Section 2.18. "Covered Compensation AIME 6
Section 2.19. "Covered Compensation Dynamic Break Point" 6
Section 2.20. "Covered Compensation Table Break Point" 6
Section 2.21. "Current Average Cost-of-Living Index Figure" 7
Section 2.22. "Default Beneficiary" 7
Section 2.23. "Disability" 7
Section 2.24. "Disability Retirement Date" 10
Section 2.25. "Early Retirement Date" 11
Section 2.26. "Earnings" 11
Section 2.27. "Effective Date" 12
Section 2.28. "Eligible Employee" 12
Section 2.29. "Eligible Regular Employee" 12
Section 2.30. "Employee" 13
Section 2.31. "Employer" 13
Section 2.32. "Enrollment Date" 13
Section 2.33. "FMLN" 13
Section 2.34. "Firefighter" 13
Section 2.35. "Final Average Earnings" 14
Section 2.36. "Governing Authority" 15
Section 2.37. "In-Service Distribution" 15
Section 2.38. "Ineligible Employee" 15
Section 2.39. "Interest" 15 •
Section 2.40. "Investment Fund" or "GMEBS Retirement Trust Fund" 15
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Section 2.41. "Late Retirement Date" 15
• Section 2.42. "Military Service" 16
Section 2.43. "Monthly Retirement Benefit" 16
Section 2.44. "Municipal Legal Officer" 16
Section 2.45. "Normal Retirement Date" or "Alternative Normal Retirement Date" 16
Section 2.46. "Participant" or "Participating Employee" 16
Section 2.47. "Pension Committee" 17
Section 2.48. "Plan" 17
Section 2.49. "Plan Representative" 17
Section 2.50. "Plan Year" 17
Section 2.51. "Police Officer" 17
Section 2.52. "Post-Retirement Beneficiary" 17
Section 2.53. "Practitioner" 17
Section 2.54. "Primary Pre-Retirement Beneficiary" 18
Section 2.55. "Regular Employee" 18
Section 2.56. "Resolution" 18
Section 2.57. "Retired Participant" 18
Section 2.58. "Retirement" or "Retires" 18
Section 2.59. "Retirement System," "System," or "GMEBS" 18
Section 2.60. "Secondary Pre-Retirement Beneficiary" 18
Section 2.61. "Section" 18
Section 2.62. "Spouse" 18
Section 2.63. "Terminated Vested Participant" 19
Section 2.64. "Termination," "Terminate Employment," "Termination of
Employment," or "Terminated" 19
Section 2.65. "Trust Fund" 20
Section 2.66. "Vested," "Vesting," "Vested Right," or "Vested Benefit" 20
ARTICLE III. SERVICE 20
Section 3.01. "Current Credited Service" 20
Section 3.02. "USERRA Military Service Credit 21
Section 3.03. "Credited Past Service" 24
Section 3.04. "Prior Governmental Service" 24
Section 3.05. "Prior Military Service" 24
Section 3.06. "Service" 24
Section 3.07. "Total Credited Service" 25
ARTICLE W. ELIGIBILITY, QUALIFICATION AND PARTICIPATION 26
Section 4.01. Classes of Eligible Employees 26
Section 4.02. Qualifications for Participation 26
Section 4.03. Establishing Participation in the Plan 31
Section 4.04. Change in Employment Status 33
Section 4.05. Participant Leaves of Absence 34
Section 4.06. Non-Vested Participant Breaks in Service 35
• ARTICLE V. RETIREMENT ELIGIBILITY 38
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•
ARTICLE VI. RETIREMENT BENEFITS39 •
Section 6.01. Normal Retirement Benefit 39
Section 6.02. Early Retirement Benefit 40
Section 6.03. Late Retirement Benefit 41
Section 6.04. Disability Benefit 42
Section 6.05. Cost of Living Adjustment 46
Section 6.06. In-Service Distribution; Suspension of Benefits Following Return to
Service 48
ARTICLE VII. OPTIONAL FORMS OF RETIREMENT INCOME 62
Section 7.01. Standard Benefit Payment Form; Other Payment Options 62
Section 7.02. Designation of Post-Retirement Beneficiary 63
Section 7.03. Description of Options 63
Section 7.04. Cancellation of Election 67
Section 7.05. Rule for Small Benefits 67
Section 7.06. Distributions 68
Section 7.07. Compliance with Internal Revenue Section 401(a)(9) 68
Section 7.08. Compliance with Internal Revenue Section 415 68
ARTICLE VIII. DEATH BENEFITS 68
Section 8.01. Death in Service Prior to Retirement 68
Section 8.02. Actuarial Reserve In-Service Death Benefit 68
Section 8.03. Auto A In-Service Death Benefit 70
Section 8.04. Designation of Beneficiary 73 0
Section 8.05. Change of Beneficiary 74
Section 8.06. Auto A In-Service Pre-Retirement Death Benefit; Default
Beneficiary; Payment to Surviving Spouse or to Estate Where Benefit
Not Payable to Designated Primary or Secondary Pre-Retirement
Beneficiary 74
Section 8.07. Actuarial Reserve In-Service Pre-Retirement Death Benefit; Payment
to Surviving Spouse or to Estate Where Benefit Not Payable to
Designated Primary or Secondary Pre-Retirement Beneficiary 76
Section 8.08. Terminated Vested Death Benefits 77
Section 8.09. Terminated Vested Auto A Death Benefit 78
Section 8.10. Accrued Retirement Benefit 81
Section 8.11. Designation of Terminated Vested Pre-Retirement Beneficiary 84
Section 8.12. Participant Death After Retirement Benefit Commencement 85
ARTICLE IX. TERMINATION BEFORE RETIREMENT; VESTING 87
Section 9.01. Vesting Requirement for Deferred Retirement Benefit 87
Section 9.02. Termination of Tenure of Office Before Retirement 88
Section 9.03. Immediate Vesting in Disability Retirement Benefit 88
Section 9.04. Involuntary Termination Without Cause 89
Section 9.05. Portability between Adopting Employers 89
Section 9.06. Forfeiture of Benefits for Public-Employment Related Crimes, Other
Crimes 90 •
Section 9.07. Forfeitures 91
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• ARTICLE X. DISTRIBUTION AND ROLLOVER RULES 94
Section 10.01. Distribution Rules Imposed by Federal Law 94
Section 10.02. Rollover of Distributions 98
Section 10.03. Acceptance of Eligible Rollover Distributions 100
Section 10.04. Acceptance of Trustee-to-Trustee Transfers 101
ARTICLE XI. LIMITATIONS ON BENEFITS 101
Section 11.01. Effective Date 101
Section 11.02. Limitation on Annual Benefit 101
Section 11.03. Limitation on Annual Additions 111
Section 11.04. Code Section 415(e)Limits 114
Section 11.05. Limitations on Service Credit Purchases 114
Section 11.06. Interpretation of this Article 117
ARTICLE XII. ACTUARIAL EQUIVALENT CONVERSION TABLES 118
Section 12.01. Early Retirement Reduction Table 118
Section 12.02. Option B Tables 118
Section 12.03. Option C Table 120
Section 12.04. Life Annuity Factors to be Used in Computing Actuarial Reserve
Death Benefit 120
Section 12.05. Late Retirement Actuarial Increase Factors 121
Section 12.06. Other Annuity Forms 121
Section 12.07. Lump Sum Payments 122
• ARTICLE XIII. CONTRIBUTIONS 123
Section 13.01. Adopting Employer Contributions 123
Section 13.02. Employee Contributions 123
Section 13.03. Withdrawal of Employee Contributions 124
Section 13.04. Cessation of Contributions Without Penalty 126
Section 13.05. Continued Contributions During Leave of Absence 127
Section 13.06. Return of Contributions Upon Failure to Exhaust 127
ARTICLE XIV. PENSION COMMITTEE 130
Section 14.01. Creation and Composition 130
Section 14.02. Responsibilities 130
Section 14.03. Secretary 133
Section 14.04. Legal Assistance 133
Section 14.05. Plan Representative 133
ARTICLE XV. BOARD OF TRUSTEES 133
Section 15.01. Definitions 133
Section 15.02. Powers 134
Section 15.03. Composition and Election 134
Section 15.04. Officers 134
Section 15.05. Notice of Elections 134
• Section 15.06. Voting 134
Section 15.07. Voting Representative for the Adopting Employer 134
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Section 15.08. Qualified Public Accountant 135 •
Section 15.09. Fiduciary Insurance 135
ARTICLE XVI. GMEBS TRUST AGREEMENT 135
Section 16.01. General Provisions 135
Section 16.02. Group Trust Participation 136
ARTICLE XVII. CLAIMS AND LITIGATION 136
Section 17.01. Disputes 136
Section 17.02. Disputes involving Federal or State Law Compliance 137
Section 17.03. Failure to Act 137
ARTICLE XVIII. AMENDMENT AND TERMINATION 138
Section 18.01. Amendment of the Plan by an Adopting Employer 138
Section 18.02. Amendment of Plan by GMEBS 138
Section 18.03. Termination by Adopting Employer 140
Section 18.04. Amendment of the Plan to Transfer Assets; Termination of Contract 143
Section 18.05. Involuntary Termination 147
Section 18.06. Termination of the Master Plan by the Board 151
ARTICLE XIX. NON-ALIENATION OF BENEFITS 151
ARTICLE XX. MISCELLANEOUS 152
Section 20.01. Construction 152 •
Section 20.02. Non-Diversion 154
Section 20.03. Legally Incompetent; Power of Attorney 154
Section 20.04. Benefits Supported Only by Trust Fund 155
Section 20.05. Non-Discrimination 155
Section 20.06. Limitation of Liability; Legal Actions 155
Section 20.07. Claims 156
Section 20.08. Errors in Benefits 156
Section 20.09. Notice 161
Section 20.10. Right of Recovery 161
Section 20.11. Evidence of Action 162
Section 20.12. Reliance 162
Section 20.13. Information to Administrator 162
Section 20.14. Participant Data to Administrator 162
Section 20.15. Treatment of Vacated Court Orders 163
Section 20.16. Entire Plan 163
APPENDIX—REFERENCED SECTIONS OF O.C.G.A.
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• MASTER PLAN DOCUMENT
ARTICLE I.
PURPOSE OF PLAN
The Georgia Municipal Employees Retirement System Plan ("Plan") is hereby amended
and restated, effective January 1, 2013, except as otherwise provided herein, pursuant to a
resolution of the Board of Trustees of the Georgia Municipal Employees Benefit System,
adoped ti ute c , 20/g The Plan is a govermnental qualified defined benefit plan
under Internal Revenue Code Sections 401(a) and 414(d) and is intended to be adopted by
Employers in Georgia.
The Plan is intended to comply with certain provisions of the Pension Protection Act of
2006 ("PPA"); the Heroes Earnings Assistance and Relief Tax Act of 2008 ("HEART"); the
Worker, Retiree, and Employer Recovery Act of 2008 ("WRERA"); as well as the additional
• guidance included in the 2012 Cumulative List under Internal Revenue Service "IRS" Notice
2012-76 to the extent applicable to the Plan. Except as otherwise specifically provided herein,
the Plan establishes the rights and obligations with respect to individuals who are Employees on
and after such dates, as applicable, and to transactions under the Plan on and after such dates, as
applicable. Except as otherwise specifically provided herein, the rights and benefits, if any, of
individuals who are not Employees on or after such dates, as applicable, shall be determined in
accordance with the terms and provisions of the Plan that were in effect on the date that their
employment terminated.
Any Municipal Corporation accepted by the Board as an Adopting Employer may
become a party to the Plan as of the first day of any Plan Year, or such other date specified by
the Adopting Employer, by delivering to the Administrator an appropriate Ordinance of the
• Governing Authority adopting the Plan. Any other Employer accepted by the Board as an
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Adopting Employer may become a party to the Plan as of the first day of any Plan Year, or such •
other date specified by the Adopting Employer, by delivering to the Administrator an appropriate
resolution or ordinance (as applicable) of the Governing Authority adopting the Plan. With the
consent of the Board, such organization shall become an Adopting Employer hereunder, as of the
specified date, and shall be subject to the terms and provisions of the Plan as then in effect and
thereafter amended.
The Plan document consists of this Master Plan document, the Adoption Agreement, and
any Addendum of each Employer and any amendments to the Master Plan, the Adoption
Agreement, and any Addendum. The Plan, generally effective as of the date set forth in the
Adoption Agreement for each Employer, except as otherwise specifically provided herein, is
established for the purpose of providing retirement and other benefits to Participants.
This Plan is intended to be a volume submitter plan, to be used with a completed
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Adoption Agreement.
ARTICLE II.
DEFINITIONS
This Article covers all generally applicable definitions used in this Plan, except for
definitions related to service, which are in Article III. Except as otherwise provided in the
Employer's Adoption Agreement or any Addendum, the definition of terms contained in this
Article II and Article III shall govern the meaning of such terms used in the Adoption Agreement.
When the initial letter of a word or phrase is capitalized herein, the meaning of such word or
phrase shall be as follows,unless a different meaning is plainly required by the content:
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• Section 2.01. "Accrued Benefit" shall mean, as of any date, the Normal Retirement
benefit payable to a Participant at his Normal Retirement Date computed in accordance with the
provisions of Article VI and the Adoption Agreement, based upon the Participant's Total
Credited Service and Final Average Earnings (if applicable) as of the date that the Participant's
Accrued Benefit is being determined.
Section 2.02. "Actuarial Equivalent" shall mean a benefit of approximately equal
value when computed on the basis of the actuarial assumptions contained in Article XII.
Section 2.03. "Actuary" shall mean an individual, or firm, appointed or approved by
the Board of Trustees to perform actuarial calculations necessary in the funding of the Plan.
Section 2.04. "Addendum" means any Addendum to an Adoption Agreement
submitted to the IRS for review under the pre-approved program and entered into by an
• Adopting Employer.
Section 2.05. "Adjustment Date" means January 1 or such other date in a calendar
year on which a Cost of Living Adjustment is applied to a Retired Participant's or Post-
Retirement Beneficiary's benefit pursuant to an Adopting Employer's Adoption Agreement or
any Addendum thereto.
Section 2.06. "Administrator" shall mean the Georgia Municipal Employees Benefit
System or its designee.
Section 2.07. "Adopting Employer" shall mean an Employer who adopts this Plan
through the adoption of the Adoption Agreement.
Section 2.08. "Adoption Agreement" shall mean the Adoption Agreement adopted
by an Adopting Employer, which Adoption Agreement contains certain terms of the Plan, and
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whenever applicable shall include any Addendum amending provisions of the Adoption •
Agreement.
Section 2.09. "Applicable Form" shall mean the appropriate form as designated and
furnished by the Administrator to make the election or provide the notice required by the Plan.
In those circumstances where a written election or consent is not required by the Plan or the
Code, the Administrator may prescribe an oral, electronic, or telephonic form in lieu of or in
addition to a written form.
Section 2.10. "Board of Trustees" or "Board" shall mean the Board of Trustees of
the Georgia Municipal Employees Benefit System.
Section 2.11. "Bona Fide Separation from Service" shall mean, with respect to a
Participant who Terminates employment on or after September 26, 2014, the Participant
Terminated Employment with his Adopting Employer without an agreement for re-employment •
and did not return to service with the Adopting Employer as an Eligible Employee, Ineligible
Employee, or independent contractor or in any other capacity, except as described below, for at
least six (6) calendar months after the date of said Termination of Employment, provided that the
Employer shall be required to provide any information to GMEBS necessary to verify an
Employee's Bona Fide Separation from Service. A Bona Fide Separation from Service shall
alternatively mean that an Eligible Employee Terminated Employment with the Adopting
Employer and returned to service with the Adopting Employer as an elected or appointed
member of the Governing Authority, even if such Employee did not incur a six (6) month break
in service prior to becoming an elected or appointed member of the Governing Authority.
Section 2.12. "Child" or "Children" shall mean any natural or adopted child of the
Participant or Terminated Vested Participant, as applicable, who is younger than age twenty-two
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• (22) as of the date of the Participant's or Terminated Vested Participant's death. The term
"adopted child" shall include any child who is legally adopted by the Participant and any child
who is a member of the Participant's household if placed with the Participant by an authorized
placement agency for legal adoption by the Participant. The term "child" does not include a
foster child.
Section 2.13. "Code" shall mean the Internal Revenue Code of 1986, as applicable to
governmental plans, as amended from time to time, and the Internal Revenue Code of 1954, as
applicable to governmental plans.
Section 2.14. "Code Section 415(d) Cost of Living Adjustment" shall mean the cost
of living adjustment prescribed by the Secretary of the Treasury under Code Section 415(d) for
any applicable year.
• Section 2.15. "Contract" shall mean the entire contents of the Ordinance or
Resolution adopting this Plan, the Employer's Adoption Agreement and any Addendum thereto,
the Master Plan, the GMEBS Trust Agreement, and any amendments made hereafter.
Section 2.16. "Contributions" shall mean payments made by Employers (and
Employees, if applicable)to GMEBS to provide the benefits specified in the Plan.
Section 2.17. "Cost of Living Base Figure" shall mean, with respect to Employers
who elect in the Adoption Agreement to provide cost-of-living adjustments in benefits received
under the Plan, the Consumer Price Index figure (All Urban Consumers Table All Items,
1982-1984 Base Period) issued by the Bureau of Labor Statistics of the United States
Department of Labor for the month that is 14 months prior to the month of the Adjustment Date
used to determine the Current Cost-of-Living Index Figure. However, if a Participant or
Beneficiary has been drawing benefits for less than twelve (12) months, the Cost-of-Living Base
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Figure shall mean the Consumer Price Index figure (All Urban Consumers Table — All Items, •
1982-1984 Base Period) issued by the Bureau of Labor Statistics of the United States
Department of Labor for the month that is two (2) months prior to the month when benefit
payments commenced.
Section 2.18. "Covered Compensation AIME." shall mean the portion of the
Average Indexed Monthly Earnings (A.I.M.E.), annualized, as defined by the December 1977
amendments to the federal Old-Age, Survivors, and Disability Insurance (O.A.S.D.L), not
subject to the fifteen percent (15%) benefit rate as defined in the amendments and as adjusted to
the year of termination of employment as provided for in said amendments.
Section 2.19. "Covered Compensation Dynamic Break Point" shall mean, for any
calendar year, the average of the maximum amount of earnings for which taxes are payable
under the Social Security Act during the period of calendar years: (1) beginning with the later of •
1959 or the calendar year thirty-five (35) years before the year for which Social Security
Covered Compensation is being computed, and (2) ending with the calendar year preceding the
year for which Social Security Compensation is being computed. The amount of Covered
Compensation for a Participant shall be determined as of the date of his most recent Termination
or his date of death, whichever is applicable.
Section 2.20. "Covered Compensation Table Break Point" shall mean the amount
listed in the table below,opposite the year of birth of the Participant:
Year of Covered Covered Covered
Birth Compensation Year of Compensation Year of Birth Compensation
Amount Birth Amount Amount
1903
or earlier $4,944 1916 $6,432 1929 $6,900
1904 5,160 1917 6,480 1930 6,984
1905 5,352 1918 6,528 1931 7,080 •
1906 5,520 1919 6,576 1932 7,176
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• 1907 5,652 1920 6,612 1933 7,260
1908 5,784 1921 6,660 1934 7,332
1909 5,892 1922 6,696 1935 7,416
1910 6,000 1923 6,720 1936 7,500
1911 6,084 1924 6,756 1937 7,572
1912 6,168 1925 6,792 1938 7,656
1913 6,240 1926 6,816 1939 7,728
1914 6,312 1927 6,840 1940 7,764
1915 6,372 1928 6,864 1941 7,800
or later
Section 2.21. "Current Average Cost-of-Living Index Figure" shall mean, with
respect to Employers who elect in the Adoption Agreement to provide cost-of-living adjustments
in benefits received under the Plan, the Consumer Price Index figure (All Urban Consumers
Table—All Items, 1982-1984 Base Period) that was most recently issued by the Bureau of Labor
Statistics of the United States Department of Labor for the month that is two months prior to the
month of the Adjustment Date.
Section 2.22. "Default Beneficiary" shall mean, with respect to a Participant who
dies prior to July 1, 2015, the person(s) or entity to whom a pre-retirement death benefit is
payable in the absence of a beneficiary designation by the Participant or in the event there is no
designated Primary or Secondary Pre-Retirement Beneficiary to whom a pre-retirement death
benefit is payable, determined in accordance with and subject to Section 8.06.
Section 2.23. "Disability" shall mean, with respect to those Adopting Employers who
elect in the Adoption Agreement to provide disability retirement benefits and unless otherwise
provided in an Addendum to the Adoption Agreement, the following:
(a) A physical or mental disability of a Participant who because of such disability
becomes entitled to receive disability insurance benefits under the Federal Social Security Act, as
amended,provided that the following conditions are satisfied:
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(1) Such disability commenced on a specified date during the period of the •
Participant's employment with the Adopting Employer, as evidenced by a Social Security
Administration (SSA) disability award submitted with the Participant's disability
retirement application, reflecting a disability onset date on or before the Participant's
Termination date; provided, however, that in the event a Participant has filed more than
one disability application with the SSA and the SSA disability award reflects a disability
onset date after the Participant's Termination date, and where due to SSA administrative
res judicata rules the disability onset date reflected in the SSA disability award
immediately follows the date that a prior SSA disability award was denied, then the
Administrator may consider other documents submitted with the Participant's application
for a SSA disability award to determine the disability onset date if the Participant
provides such documents to the Administrator and the Administrator deems such
•
documents sufficient to establish that the disability onset date is on or before the
Participant's Termination date;
(2) In no event will the disability onset date be earlier than the latest disability
onset date alleged by the Participant in his SSA disability application(s); and
(3) The Participant's disability was not intentionally self-inflicted, incurred in
the commission of a felonious enterprise, or the result of the abuse or illegal use of
narcotics or drugs; or
(b) A Participant who is not disabled in accordance with the definition under
subsection (a) above solely because he lacks the quarters of Social Security coverage required
under the Federal Social Security Act, as amended, shall qualify for Disability if the Pension
Committee determines that the Participant is permanently disabled on the basis of a certificate •
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. signed by at least two (2)physicians, (one physician selected and paid by the disabled Participant
and one selected and paid by the Employer) stating that:
(1) The Participant is permanently disabled as defined in Internal Revenue
Code Section 72(m); and
(2) Such disability commenced on a specified date during the period of the
Participant's employment with the Adopting Employer; and
(3) Such disability was not intentionally self-inflicted, incurred in the
commission of a felonious enterprise, or the result of the abuse or illegal use of narcotics
or drugs.
(c) Neither the Adopting Employer nor the Administrator is required to
independently investigate or confirm the cause(es) of a Participant's disability.
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Section 2.24. "Disability Retirement Date" shall mean, with respect to those •
Adopting Employers who elect to provide Disability retirement benefits in the Adoption
Agreement and with respect to Participants who Terminate Employment due to Disability on or
after January 1, 2014, the first day of the first calendar month coinciding with or next following:
(a)the date on which a Participant becomes entitled to receive a monthly disability insurance
benefit under the Federal Social Security Act, as amended; (b)the date on which the Participant's
Disability is determined by the Pension Committee to have commenced, in the case of Disability
determinations made by the Pension Committee pursuant to Section 2.23(b); or (c) the date
determined in accordance with the provisions of an Employer's General Addendum, as
applicable. However, in no event will the Disability Retirement Date be earlier than the first day
of the calendar month coinciding with or next following the date of the Participant's Termination
of Employment as a result of Disability. Unless otherwise specified in an Employer's •
Addendum to the Adoption Agreement, with respect to Participants who Terminate Employment
due to Disability on or after January 1, 2013 but prior to January 1, 2014, Disability Retirement
Date shall be determined as follows: the first day of the first calendar month in which: (a) a
Participant becomes entitled to receive a disability insurance benefit under the Federal Social
Security Act, as amended; or (b) the Participant's Disability is determined by the Pension
Committee to have commenced, in the case of Disability determinations made by the Pension
Committee pursuant to Section 2.23(b), as applicable. However, in no event will the Disability
Retirement Date be earlier than one (1) calendar month following the date of the Participant's
Termination of Employment as a result of Disability.
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• Section 2.25. "Early Retirement Date" shall mean the first day of the month
coinciding with or next following the day a Participant qualifies for Early Retirement as
specified in the Adoption Agreement, as of which the Participant actually Retires.
Section 2.26. "Earnings" shall mean with respect to Participants who Terminate
Employment on or after July 1, 2014, unless otherwise specified by the Employer in an
Addendum to the Adoption Agreement, the total gross earnings paid to a Participant by the
Employer, as reflected in the Employer's payroll records and shall include salary,wages, bonuses,
overtime, and compensation for unused sick, vacation, paid-time-off, personal, or any other paid
leave. Earnings shall not be reduced for compensation deferred pursuant to Code Sections
401(k), 403(b) or 457, compensation redirected pursuant to Code Section 125 or 132(0(4), or
contributions picked-up under Code Section 414(h) during the Plan Year. Unless otherwise
specified in an Addendum to the Adoption Agreement, Earnings shall not include perquisites or
•
allowances for a car or house rent, or compensation for severance pay. With respect to
Participants who Terminate Employment on or after January 1, 2013 and prior to July 1, 2014,
"Earnings" shall mean the total taxable compensation paid to a Participant by the Employer as
reflected in the Employer's W-2 payroll records, and shall include compensation deferred
pursuant to Code Sections 401(k), 403(b) or 457, compensation redirected pursuant to Code
Section 125 or 132(0(4), and contributions picked-up under Code Section 414(h) during the Plan
Year.
The annual earnings of a Participant for any year taken into account under the Plan for
any Plan Year beginning prior to January 1, 1994, shall not exceed Two Hundred Thousand
Dollars ($200,000) (as increased by the Cost of Living Adjustment for the year pursuant to Code
Section 401(a)(17)), or for any Plan Year beginning on or after January 1, 1994, shall not exceed
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MIL
One Hundred Fifty Thousand Dollars ($150,000) (as increased by the Cost of Living Adjustment •
for the year, pursuant to Code Section 401(a)(17)(B)). For any Plan Year beginning after
December 31, 2001, the annual earnings of a Participant for any year taken into account under
the Plan shall not exceed Two Hundred Thousand Dollars ($200,000) (as increased by the Cost
of Living Adjustment for the year, pursuant to Code Section 401(a)(17)(B)). Notwithstanding
the provisions of this paragraph, in determining benefit accruals in Plan Years beginning after
December 31, 2001, the limit hereunder for determination periods beginning before January 1,
2002, shall be Two Hundred Thousand Dollars ($200,000).
Annual earnings means Earnings during the Plan Year or such other consecutive twelve
(12) month period over which Earnings are otherwise determined under the Plan (the
determination period). The Cost of Living Adjustment for a calendar year applies to annual
earnings for the determination period that begins with or within such a calendar year. If a short
•
Plan Year occurs, the annual earnings limit is an amount equal to the otherwise applicable annual
earnings limit multiplied by a fraction, the numerator of which is the number of months in the
short Plan Year, and the denominator of which is twelve (12).
Section 2.27. "Effective Date" shall mean the original effective date of the Adopting
Employer's GMEBS-administered defined benefit plan as specified in the Adoption Agreement.
Section 2.28. "Eligible Employee" shall mean any Employee who is designated as an
Eligible Employee in the Adoption Agreement and who satisfies any eligibility conditions
applicable to the class of Eligible Employees to which he belongs.
Section 2.29. "Eligible Regular Employee" shall mean any Regular Employee who
satisfies the minimum hour and other eligibility conditions applicable to Regular Employees in
the Employer's Adoption Agreement. •
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• Section 2.30. "Employee" shall mean any person who is regularly employed in the
services of the Employer as an employee and shall include elected or appointed members of the
Governing Authority and Municipal Legal Officers if they are included as Eligible Employees in
the Adoption Agreement. However, notwithstanding any other provision of the Plan to the
contrary, the term "Employee" does not include: (a) an individual who is a nonresident alien and
who receives no earned income (within the meaning of Code Section 911(d)(2)) from an
Employer which constitutes income from sources within the United States within the meaning of
Code Section 861(a)(3); (b) a leased employee; or (c) any person treated in good faith by an
Employer as an independent contractor, regardless of whether such person is later determined to
be a common law employee for tax purposes.
Section 2.31. "Employer" shall mean an Employer as defined in O.C.G.A.
§ 47-5-2(9) (a copy of which is included in the Appendix hereto). No employer which is not
•
permitted to participate in a qualified governmental pension plan as defined in Code Section
401(a) and 414(d) shall be permitted to participate in this Plan.
Section 2.32. "Enrollment Date" shall mean the date that an Eligible Employee first
becomes a Participant under this Plan.
Section 2.33. "FMLA" shall mean the Family and Medical Leave Act of 1993, as
amended from time to time.
Section 2.34. "Firefighter" shall mean an Eligible Regular Employee of the Adopting
Employer who is either certified as a firefighter pursuant to O.C.G.A. § 25-4-1 et seq. (a copy of
which is included in the Appendix hereto) or who would otherwise be required to be certified as
a firefighter but who is exempt pursuant to O.C.G.A. § 25-4-12 (a copy of which is included in
the Appendix hereto).
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13184173.14
Section 2.35. "Final Average Earnings" shall mean, unless otherwise elected in an •
Addendum to the Adoption Agreement, the arithmetic monthly average of the Earnings paid to a
Participant by the Adopting Employer for a specified number of consecutive months of Credited
Service preceding the Participant's most recent Termination in which the Participant's Earnings
were the highest, multiplied by twelve (12). In computing Final Average Earnings for a
Participant who Terminated Employment on or after July 1, 2014, Earnings shall include, if
applicable and authorized by the Adopting Employer in an Addendum to the Adoption
Agreement, severance payments made prior to, on or after the Participant's Termination Date.
For a Participant who Terminated Employment on or after January 1, 2013 and prior to July 1,
2014, unless otherwise specified in an Addendum to the Adoption Agreement, Earnings shall
include severance payments made prior to a Participant's Termination Date. The number of
months to be used in determining Final Average Earnings shall be designated by the Adopting •
Employer in the Adoption Agreement or an Addendum thereto. The Administrator shall
prescribe a formula for the determination of Final Average Earnings. Calculation of Final
Average Earnings shall be subject to the following:
(a) If a Participant terminates employment or is on an unpaid leave of absence and
later returns to employment with the Employer, the period(s)prior to and following such absence
from employment shall be considered consecutive.
(b) If a Participant has not completed the number of consecutive months of Credited
Service necessary to compute Final Average Earnings under this Section as of the date of such
Participant's most recent Termination preceding Retirement, then Final Average Earnings shall
be determined by dividing total Earnings for the Participant's entire period of Credited Service
by such Participant's total number of months of Credited Service and multiplying the quotient by
•
- 14 -
I\3184173.14
• twelve (12). In computing the number of months of Credited Service for this purpose,
incomplete months of Credited Service shall be converted to fractional equivalents of months
and included in the computation.
Section 2.36. "Governing Authority" shall mean the entity named in the Adoption
Agreement which is authorized to act for the Adopting Employer.
Section 2.37. "In-Service Distribution" shall mean commencement of benefits to a
Participant who has satisfied the requirements for Retirement prior to the Participant's
Termination of Employment or continuation of benefits to a Retired Participant who returns to
service without first completing a Bona Fide Separation from Service.
Section 2.38. "Ineligible Employee" shall mean an Employee of the Adopting
Employer who is not an Eligible Employee.
Section 2.39. "Interest" shall mean a pro rata share of any and all interest, dividends,
and capital gains or losses earned on the invested or reinvested funds of the GMEBS Investment
Fund.
Section 2.40. "Investment Fund" or "GMEBS Retirement Trust Fund" shall
mean the total amounts of all Contributions plus Interest, invested or uninvested, held by the
Board of Trustees in the GMEBS Retirement Trust Fund for all GMEBS Employers and their
Employees where applicable.
Section 2.41. "Late Retirement Date" shall mean the first day of the month
coinciding with or next following the day the Participant qualifies for Late Retirement, as
specified in Section 6.03, as of which the Participant actually retires. The Plan shall not provide
for a maximum retirement age.
i
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Section 2.42. "Military Service" shall mean, unless otherwise specified in the •
Adoption Agreement, service performed while on active duty in the Armed Forces of the United
States if the Participant was granted an honorable discharge. Except as otherwise required by
federal or state law, Military Service shall not include service which is credited toward
retirement under any other local, state, or federal retirement or pension plan.
Section 2.43. "Monthly Retirement Benefit" shall mean the monthly benefit as
provided in Article VI or any optional benefit payable in lieu thereof as provided in Article VII.
Section 2.44. "Municipal Legal Officer" shall mean, with respect to those
Employers who elect to include municipal legal officers as Eligible Employees, only those
municipal legal officers specifically designated in the Adoption Agreement for inclusion as
Eligible Employees, provided that such officer otherwise meets the Master Plan's definition of
Employee. •
Section 2.45. "Normal Retirement Date" or "Alternative Normal Retirement
Date" shall mean the first day of the month coinciding with or next following the date the
Participant qualifies for Normal Retirement as specified in the Employer's Adoption Agreement.
An Employer may also establish alternative Normal Retirement qualifications in the Adoption
Agreement. In such case, the Participant's Alternative Normal Retirement Date shall mean the
first day of the month coinciding with or next following the date the Participant meets the
alternative Normal Retirement qualifications.
Section 2.46. "Participant" or "Participating Employee" shall mean any Eligible
Employee who is or may become eligible to receive a benefit of any type from the Plan and who
has commenced participation in the Plan under Article IV.
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• Section 2.47. "Pension Committee" shall mean the committee named in the
Adoption Agreement to represent the Adopting Employer in the administration of the Plan.
Section 2.48. "Plan" shall mean the provisions of this Master Plan document, along
with the Employer's Adoption Agreement(including any Addendum to the Adoption Agreement,
if applicable), setting forth the Employees to be covered, the benefits to be provided, and the
conditions of retirement, and all amendments thereto which may hereafter be made.
Section 2.49. "Plan Representative" shall mean the Plan Representative designated
in the Employer's Adoption Agreement. The Plan Representative must have full authority to
represent the Governing Authority in all communications with GMEBS and the Adopting
Employer's Employees. The Pension Committee Secretary may serve as the Plan Representative.
Section 2.50. "Plan Year" shall mean a twelve (12) consecutive month period
specified as such in the Adoption Agreement.
•
Section 2.51. "Police Officer" shall mean an Eligible Regular Employee employed
by the Adopting Employer's Police Department who is either certified or registered as a peace
officer pursuant to O.C.G.A. § 35-8-1 et seq. (a copy of which is included in the Appendix
hereto).
Section 2.52. "Post-Retirement Beneficiary" shall mean the person designated by
the Participant, in writing and on the Applicable Form, to receive a post-retirement survivor
benefit in accordance with and subject to the provisions of Article VII and Section 8.12.
Section 2.53. "Practitioner" means the Georgia Municipal Association, Inc. who is
the volume submitter practitioner sponsoring the Plan on behalf of GMEB S.
•
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Section 2.54. "Primary Pre-Retirement Beneficiary" shall mean the person •
designated by the Participant, in writing and on an Applicable Form, to receive a pre-retirement
death benefit, in accordance with and subject to the provisions of Article VIII.
Section 2.55. "Regular Employee" shall mean any Employee, other than an elected
or appointed member of the Governing Authority or Municipal Legal Officer, who is regularly
employed in the services of the Adopting Employer.
Section 2.56. "Resolution" shall mean a resolution duly adopted by an Employer.
Section 2.57. "Retired Participant" shall mean any Participant who has Terminated
Employment with the Employer and who is receiving a benefit provided under the Plan.
Section 2.58. "Retirement" or "Retires" shall mean withdrawal from Service with a
retirement allowance granted under the provisions of the Plan.
Section 2.59. "Retirement System," "System," or "GMEBS" shall mean the
•
Georgia Municipal Employees Benefit System created by O.C.G.A. Section 47-5-1 et seq. (a
copy of which is included in the Appendix hereto).
Section 2.60. "Secondary Pre-Retirement Beneficiary" shall mean the person
designated by the Participant, in writing and on the Applicable Form, to receive a pre-retirement
death benefit in the event the Primary Pre-Retirement Beneficiary does not survive the
Participant, in accordance with and subject to the provisions of Article VIII.
Section 2.61. "Section" shall mean, when not preceded by the word Code or ERISA,
a section of the Master Plan document.
Section 2.62. "Spouse" shall mean, notwithstanding any other provision in an
Adopting Employer's Adoption Agreement or Addendum to the contrary, (i) effective on or after
September 16, 2013, to the extent required by federal law, and (ii) effective on or after •
- 18 -
I\3184173.14
• September 26, 2014, for all purposes, a person who, as of the date of the Participant's, Retired
Participant's or Terminated Vested Participant's death, as applicable, is lawfully joined with the
Participant or Terminated Vested Participant in a marriage which is recognized under the laws of
any state or foreign jurisdiction, whether opposite-sex or same-sex and regardless of whether or
not the spouse resides in the state or foreign jurisdiction in which such marriage occurred. Prior
to September 26, 2014, except as otherwise required by federal law, a Spouse shall mean a
person who, as of the date of the Participant's or Terminated Vested Participant's death, as
applicable, is lawfully joined with the Participant or Terminated Vested Participant in a marriage
which is recognized under the laws of the State of Georgia. Sufficient documentation of
marriage shall be provided to GMEBS upon request.
Section 2.63. "Terminated Vested Participant" shall mean any Participant who has
Terminated Employment with the Adopting Employer and who has a Vested Benefit under any
provision of the Adopting Employer's Plan but is not yet a Retired Participant.
Section 2.64. "Termination," "Terminate Employment," "Termination of
Employment," or "Terminated" shall mean a severance of employment with the Employer,
including Retirement, resignation or discharge, lapse of recall rights after layoff, death, or
vacation of office by a Regular Employee, an elected or appointed member of the Governing
Authority or a Municipal Legal Officer. Provided, however, that Termination shall not include:
(i) absence from active employment which is not treated by the Adopting Employer as a
Termination of Employment; (ii) absence due to military service to the extent required under
USERRA and Code Section 414(u)(8)(A), (iii) absence due to leave which qualifies as family or
medical leave under the FMLA, to the extent required under the FMLA; or(iv) absence due to an
• authorized leave of absence for any reason if approved by the Adopting Employer. Unless
- 19 -
I\3184173.14
otherwise required by law or unless the terms of the leave otherwise specify, if an Employee on •
an authorized leave of absence fails to return to active employment upon expiration of the leave
of absence, the Employee will be considered terminated as of the date immediately preceding the
approved leave period.
Section 2.65. "Trust Fund" mean the total amounts, invested or uninvested, held at
any time by the Board in trust for the Employer under the GMEBS Trust Agreement.
Section 2.66. "Vested," "Vesting," "Vested Right," or "Vested Benefit" shall
mean the rights of a Terminated Vested Participant as specified in Article IX.
ARTICLE III.
SERVICE
Section 3.01. "Current Credited Service" shall mean the number of years and
complete months of Service of a Participant with the Adopting Employer from his Enrollment
•
Date to his Termination, which are credited as Current Credited Service for purposes of meeting
the Plan's requirements for vesting, retirement and death benefit eligibility, and/or for purposes
of computing the amount of benefits payable under the Plan, determined in accordance with and
subject to any limitations established in the Master Plan and the Employer's Adoption Agreement.
Current Credited Service shall include unused paid time off which the Employer elects to treat as
Current Credited Service for a Terminated Vested Participant for certain purposes, as provided
and subject to any limitations contained in the Adoption Agreement; provided, however, that
leave conversions will be permitted only if(i)the leave is for unused accrued paid time off for
vacation and/or sick leave or for comparable paid-time-off under an established leave policy
without regard to whether the leave is due to illness or incapacity, (ii)the leave policy qualifies
as a bona fide sick and/or vacation leave plan for purposes of Code Section 409A and Treasury
Regulation 1.409A-1(a)(5), (iii the Plan provides for service credit for an Employee's unused •
- 20 -
I\3184173.14
• paid time off,provided that the eligibility requirements for participation in the Plan do not permit
an Employee to become a Participant only in the Plan Year in which the Employee terminates
employment, (iv)the conversion is automatic, the employee has no right to request a cash
payment for the leave, and no such payment is made, (v)the unused paid time off is converted to
service credit under a formula specified in the Adoption Agreement and which satisfies the
definitely determinable standard of Treasury Regulation § 1.401-1(b)(1)(i), (vi)the Adopting
Employer's Plan otherwise provides for service credit unrelated to the conversion of any
Employee's unused paid time off, and (vii)the Participant's annual benefit, as adjusted by the
leave conversion, does not exceed the limit under Code Section 415(b).
Section 3.02. "USERRA Military Service Credit."
(a) USERRA Military Service Credit. Notwithstanding any provision of this Plan to
the contrary, contributions, benefits, and service credit with respect to qualified military service
shall be provided in accordance with Code Section 414(u). Code Section 414(u) provides that:
(i) individuals reemployed under the Uniform Services Employment and Reemployment Rights
Act of 1994 ("USERRA") must be treated as not having incurred a break in Service because of
qualified military service, (ii)periods of qualified military service must be counted for vesting
and benefit accrual purposes, except that periods of qualified military service must not be
counted for benefit accrual purposes where the individual would have been required to make
Employee Contributions under the Adopting Employer's Plan if he or she had remained
continuously employed by the Adopting Employer during said period of qualified military
service and the individual fails to make-up said Employee Contributions as provided herein,
(iii) make-up of Employee Contributions up to the maximum the individual would have been
required to make if continuously employed must be allowed, in one lump sum payment or in
- 21 -
1\3184173.14
installments, during the period beginning on reemployment and lasting for the lesser of three (3) •
times the period of qualified military service or five (5) years, (iv) any Employer Contributions
contingent on make-up Employee Contributions must be made by the Employer, if and to the
extent the individual contributes his or her make-up Employee Contributions as provided herein,
(v) earnings are not required to be credited unless and until the Employee contributes make-up
contributions, (vi)make-up Contributions are based on compensation the individual would have
received during the period of qualified military service (if not reasonably certain, compensation
for the 12 month period (or, if shorter, the period of employment) immediately preceding
qualified military service can be used), and (vii) make-up Contributions are subject to the
limitations of Code Sections 402(g), 415, and 404(a) for the year to which the contribution
relates, not the year in which the contribution is made.
(b) Ordered Military Leave under Georgia Law. To the extent not provided under
•
subsection (a), the Plan will grant Credited Service for a period of"ordered" military service in
accordance with and subject to the requirements of O.C.G.A. § 38-2-279(f) (a copy of which is
included in the Appendix hereto) to a Participant who was an Eligible Employee when such
ordered military service commenced, if and to the extent that the Participant (or in case of the
Participant's death during the period of military service, the Participant's Pre-Retirement
Beneficiary or the legal representative of the Participant's estate) makes up any required
Employee Contributions as provided herein. To obtain Credited Service for the period of
ordered military service, the Participant must make-up the required Employee Contributions in
one lump sum payment or in installments during a period that begins upon commencement of
such ordered military service and ends no later than five (5) years after the period of military
service ends. If the Participant dies during the period of military service, the Participant's Pre-
. •
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I\3184173.14
• Retirement Beneficiary or the legal representative of the Participant's estate must make up the
required Employee Contributions no later than one (1) year following proof of the Participant's
death. The amount of Employee Contributions required to be made to receive Credited Service
for a period of military service shall be determined in the same manner as provided under
USERRA and HEART and subsection (a) above.
(c) 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 the 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. In any event, a deceased Participant's period of qualified
military service must be counted for vesting purposes.
•
(d) Beginning January 1, 2009, to the extent required by Code Sections 3401(h) and
414(u)(2), an individual receiving differential wage payments (while the individual is performing
qualified military service (as defined in chapter 43 of title 38, United States Code)) from an
Employer shall be treated as employed by that Employer, and the differential wage payment
shall be treated as compensation for purposes of applying the limits on annual additions under
Code Section 415(c). This provision shall be applied to all similarly situated individuals in a
reasonably equivalent manner.
(e) Effective with respect to deaths occurring on or after January 1, 2009, while a
Participant is performing qualified military service (as defined in chapter 43 of title 38, United
States Code), to the extent permitted by Code Section 414(u)(8), for benefit accrual and vesting
purposes, the Participant will be treated as having returned to employment on the day before the
- 23 -
IB3184173.14
death and as having terminated on the date of death. This provision shall be applied to all •
similarly situated individuals in a reasonably equivalent manner.
Section 3.03. "Credited Past Service" shall mean the number of years and complete
months of Service of a Participant with the Adopting Employer prior to his Enrollment Date
which are treated as Credited Past Service under the Employer's Adoption Agreement for
purposes of meeting the Plan's requirements for participation, vesting, retirement and death
benefit eligibility, and/or or for purposes of computing the amount of benefits payable under the
Plan, subject to any limitations established in the Master Plan or the Adoption Agreement.
Section 3.04. "Prior Governmental Service" shall mean government service
preceding the Eligible Employee's employment or reemployment date with the Adopting
Employer, usually for an entity other than the Adopting Employer, which the Employer elects to
treat as Credited Service for certain purposes, as provided and subject to any limitations
•
contained in the Adoption Agreement
Section 3.05. "Prior Military Service" shall mean Military Service not covered by
Section 3.02 which the Employer elects to treat as Credited Service for certain purposes, as
provided and subject to any limitations contained in the Adoption Agreement.
Section 3.06. "Service" shall mean regular service rendered as an Eligible Employee
of the Adopting Employer. Service may include absence from active employment with the
Adopting Employer under conditions which are not treated by the Employer as a Termination of
Employment, subject to Article IV concerning leaves of absence and any other conditions or
limitations specified in the Master Plan and Adoption Agreement. For those Employers who
elect in the Adoption Agreement to include elected or appointed members of the Governing
Authority or Municipal Legal Officers as Eligible Employees, Service also means any tenure of
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IB3184173.14
• office held by an elected or appointed member of the Governing Authority or a Municipal Legal
Officer, provided that such tenure of office does not include any calendar period during which
any elected or appointed member of the Governing Authority or Municipal Legal Officer is also
in the regular service of the Employer as an Eligible Employee in another capacity. No
Participant may receive credit for more than one (1) year of Service in any twelve (12) month
period.
Section 3.07. "Total Credited Service" shall mean the sum of the Participant's
Current Credited Service, Credited Past Service, Prior Military Service, and Prior Governmental
Service, as specified in this Article and covered per the Employer's Adoption Agreement, subject
to any limitations imposed under the Master Plan or the Employer's Adoption Agreement. The
term Total Credited Service includes any Service required to be included in Total Credited
• Service by USERRA, or any other applicable federal or state law. Full months of Total Credited
Service shall be treated as fractions of one (1) year. Partial months shall not be included in the
calculation. The Employer may specify in the Adoption Agreement a maximum number of years
that may be included as Total Credited Service. If an Employer elects in its Adoption
Agreement to require Employee Contributions, Total Credited Service shall not include any
period of time for which the Employee is required but fails to make such Employee
Contributions to the Plan. If a Participant has received a cash single sum payment of the present
value of his Plan benefit pursuant to Section 7.05 of the Master Plan upon or following
termination with an Adopting Employer and subsequently returns to Service with such Adopting
Employer, the Participant's prior Credited Service with the Adopting Employer for which the
cash single sum payment was paid shall be counted for purposes of meeting the Plan's
•
- 25 -
I\3184173.14
requirements for participation, vesting, and retirement and death benefit eligibility but shall not •
be counted as Credited Service for purposes of benefit computation.
An Employee excluded from participation because of age shall receive credit for all
Service as required by law.
ARTICLE IV.
ELIGIBILITY, QUALIFICATION AND PARTICIPATION
Section 4.01. Classes of Eligible Employees. The Employer shall designate in the
Adoption Agreement the class(es) of Employees which are eligible to participate in the Plan.
Provided, however, that if a person does not meet the definition of "Employee" contained in
Article II,he or she may not be included in any Eligible Employee class.
Section 4.02. Qualifications for Participation.
(a) Minimum Service Requirement. With respect to each class of Eligible Regular •
Employees, the Employer may specify in the Adoption Agreement a minimum number of work
hours per week and/or a minimum number of work months per year which are required to be
scheduled in order to establish and maintain the Employee's status as an Eligible Regular
Employee. It shall be the responsibility of the Adopting Employer to determine whether these
requirements are and continue to be satisfied. In determining whether said requirements are
satisfied, the following rules shall apply:
(1) If an Employee is otherwise includable in an Eligible Regular Employee
class, but he does not meet the minimum service requirements established by the
Employer for said class pursuant to subsection (a) above, he or she shall not be
considered an Eligible Employee, unless and until he satisfies such requirements. If an
Eligible Regular Employee who has not yet become a Participant no longer meets said
minimum service requirement, but he remains an Employee of the Employer, he or she
•
- 26 -
I\3184173.14
• shall no longer be considered an Eligible Regular Employee, unless and until he again
satisfies the minimum requirement.
(2) No period of employment during which an Employee fails to satisfy the
Employer's minimum service requirement and no leave of absence granted to such
Employee shall be counted in determining whether any waiting period for participation
established by the Employer pursuant to subsection (b) below has been satisfied.
However, provided the Employee remains continuously employed by the Employer, such
periods shall not be considered a break in Service under subsection (c)(1) below for
purposes of satisfying said waiting period.
(b) Waiting Period. Effective January 1, 2015 with respect to Eligible Regular
Employees in service with the Adopting Employer on or after said date, Eligible Regular
Employees shall not have a waiting period before participating in the Plan. Likewise, effective
110
January 1, 2015, elected or appointed members of the Governing Authority and Municipal Legal
Officers, if eligible to participate in the Plan, shall not have a waiting period before participating
in the Plan. Notwithstanding subsection 20.01(f) of the Master Plan, in the event that an
Adopting Employer has specified in an Addendum to the Adoption Agreement in effect
immediately prior to January 1, 2015 that any class or classes of Eligible Employees shall be
subject to a waiting period before participating in the Plan, such provision shall no longer be
effective on or after January 1, 2015.
(c) Prior to January 1, 2015, unless otherwise specified by the Adopting Employer in
an Addendum to the Adoption Agreement, Eligible Regular Employees were required to
complete one (1) year of continuous, uninterrupted service with the Adopting Employer in order
1110
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to commence participation in the Plan. In determining whether an applicable waiting period was •
satisfied, the following rules shall apply:
(1) Breaks in Service. If an Eligible Regular Employee has a break in service
prior to satisfying the waiting period for participation and later becomes reemployed by
the Adopting Employer, he shall be required to again satisfy the waiting period in order
to be eligible to participate in the Plan. Service rendered prior to said break in service
shall not be taken into account in determining whether the waiting period has been
satisfied.
(2) Employed on Effective Date; Waiting Period Satisfied. If an Eligible
Regular Employee is employed by the Adopting Employer on the Effective Date of the
Plan and he has completed a period of continuous, uninterrupted service as an Eligible
Employee immediately prior to the Effective Date equal to or exceeding the length of the
required waiting period, then he shall be considered to have satisfied the waiting period
and he shall be eligible to commence participation in the Plan on the first day of the
month immediately following or coinciding with the Effective Date of the Plan.
(3) Employed on Effective Date; Waiting Period Not Satisfied. If an Eligible
Regular Employee is employed by the Adopting Employer on the Effective Date of the
Plan, but he has not completed a period of continuous, uninterrupted service as an
Eligible Regular Employee immediately prior to the Effective Date equal to or exceeding
the length of the required waiting period, then he shall be eligible to commence
participation in the Plan on the first day of the month immediately following or
coinciding with the date that he completes the minimum period of continuous,
- 28 -
B3184173.14
uninterrupted service as an Eligible Regular Employee necessary to satisfy the required
waiting period.
(4) Employed After the Effective Date. If an Eligible Regular Employee is
initially employed by the Adopting Employer after the Effective Date of the Plan, he
shall be eligible to commence participation in the Plan on the first day of the month
immediately following or coinciding with the date that he completes the minimum period
of continuous, uninterrupted service as an Eligible Regular Employee necessary to satisfy
the required waiting period.
(5) Treatment of Leaves of Absence. For purposes of determining whether
the waiting period for participation has been satisfied, service shall include any period of
absence from employment which is required to be taken into account for such purpose
• under USERRA, the FMLA, or any other applicable federal or state law. Unless
otherwise required by law or unless the terms of the leave otherwise specify, an
authorized leave of absence granted to an Eligible Regular Employee by the Adopting
Employer shall be counted as Credited Service for purposes of determining whether the
waiting period for participation has been satisfied. However,unless otherwise required by
law or unless the terms of the leave otherwise specify, if an Eligible Regular Employee
on an authorized leave of absence fails to return to active employment or office upon
expiration of the leave of absence, the Eligible Regular Employee shall be considered to
have incurred a break in service for purposes of meeting the waiting period for
participation as of the date preceding the approved leave period.
(6) Treatment of Service as an Ineligible Employee. If an Employee of the
Adopting Employer who is not an Eligible Employee becomes an Eligible Regular
- 29 -
IB3184173.14
Employee while remaining continuously employed by the Adopting Employer, said
Eligible Employee shall become eligible to commence participation on the first day of the
month immediately following or coinciding with the date he meets the eligibility
requirements for participation under this Article. For purposes of satisfying any waiting
period imposed by the Adopting Employer, and unless otherwise specified in the
Adoption Agreement, the Eligible Regular Employee's prior period of employment as an
Ineligible Employee shall be credited in the same manner as service as an Eligible
Regular Employee provided that during said prior period of service as an Ineligible
Employee, he satisfied any minimum service requirement established by the Employer
pursuant to Section 4.02(a). Unless otherwise specified in the Adoption Agreement, if an
Eligible Regular Employee becomes an Ineligible Employee prior to satisfying the
waiting period for participation in the Plan, his service as an Ineligible Employee shall be •
credited in the same manner as service as an Eligible Regular Employee for purposes of
satisfying said waiting period, provided that the Ineligible Employee satisfies the
applicable minimum service requirements established for Eligible Employees pursuant to
Section 4.02(a). However, in no event will an Ineligible Employee be permitted to
become a Participant in the Plan unless and until he has satisfied the waiting period and
has again become an Eligible Employee. For purposes of satisfying the waiting period,
leaves of absence granted to an Ineligible Employee shall be treated in the same manner
as leaves of absence for Eligible Regular Employees under paragraph(5) above.
(7) Prior Participation in Another GMEBS Plan. An Eligible Regular
Employee who is hired after the Effective Date of the Plan shall be eligible to become a
Participant on the first day of the month immediately following or coinciding with the
411
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• date on which he is employed by the Adopting Employer, regardless of any waiting
period requirement established by the Employer, provided that: (i)his immediate prior
employment was with another Adopting Employer in the GMEBS; (ii)he was a
Participant in the previous Adopting Employer's GMEBS retirement plan; and (iii)he
satisfies any minimum service requirement established by the Adopting Employer
pursuant to Section 4.02(a) for his class.
Section 4.03. Establishing Participation in the Plan.
(a) Mandatory vs. Optional Participation. Participation in the Plan shall be
considered mandatory for all classes of Eligible Employees unless, with respect to a particular
class, the Employer specifies in the Adoption Agreement that participation is optional for
members of said class.
(b) Mandatory Participation. Effective with respect to Eligible Employees initially
employed or reemployed on or after January 1, 2015, if participation is mandatory for a class of
Eligible Employees, then, except as otherwise provided in subsection (e) below, all Eligible
Employees in the class shall become Participants in the Plan as of the date they are employed,
provided that they satisfy the Adopting Employer's eligibility requirements for participation.
With respect to Eligible Employees initially employed or reemployed prior to January 1, 2015, if
participation is mandatory for a class of Eligible Employees, then except as provided in
subsection(e)below, all Eligible Employees in the class shall become Participants in the Plan on
the first day of the month immediately following or coinciding with the date they satisfy the
applicable waiting period and any other eligibility requirements for participation; provided,
however, that any Eligible Employee who was employed prior to January 1, 2015, was subject to
• a waiting period before participating in the Plan, and had not satisfied such waiting period prior
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to January 1, 2015 shall commence participation in the Plan effective January 1, 2015. Eligible •
Employees shall provide to the Pension Committee on an Applicable Form such participation
enrollment information as shall be required by the Pension Committee, which shall include the
Eligible Employee's acceptance of the terms and conditions of the Plan. Notwithstanding an
Eligible Employee's failure to complete the Applicable Form, the Eligible Employee shall
become a Participant as specified in the Adoption Agreement.
(c) Optional Participation. The Employer may specify in the Adoption Agreement
that participation is optional for certain classes of Eligible Employees, including but not limited
to Employees in the following categories: elected or appointed members of the Governing
Authority, Municipal Legal Officers, City Manager, and Department Heads. If participation is
optional for an Eligible Employee, then the Eligible Employee may elect to become a Participant
at his option by filing with the Pension Committee, on an Applicable Form, such information as •
shall be required to enroll in the Plan, which shall include the Eligible Employee's acceptance of
the terms and conditions of the Plan. The election to participate must be made within 120 days
after the later of: the date the Eligible Employee commences employment with the Adopting
Employer, the date the Eligible Employee is elected or appointed to office, or the date
participation in the Plan is first permitted for members of a class to which he belongs. The
election to participate shall be irrevocable, and the failure to make an election within the 120-day
time limit specified above shall be deemed an irrevocable election not to participate in the Plan.
If Employee contributions are required under the Adopting Employer's Plan, then Eligible
Employees who apply for participation within the 120 day period may be required to make
retroactive contributions in order to receive credit under the Plan for creditable Service prior the
date they apply to participate in the Plan. •
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• (d) Participation in the Plan shall not give any Eligible Employee the right to be
retained in the employ of the Adopting Employer nor, upon dismissal, to have any right or
interest in the Trust Fund other than as herein provided.
(e) Notwithstanding anything in this Section 4.03 to the contrary, effective for
Employees initially employed or reemployed by an Adopting Employer on or after January 1,
2014, if within 120 days following the date on which an Employee is first employed or first takes
office with an Adopting Employer, the Employee enters into a written agreement or employment
contract with the Adopting Employer pursuant to which the Employee agrees that the Employee
will not participate in the Plan, the Employee shall be ineligible to participate in the Plan
regardless of whether the Employee otherwise satisfies the eligibility requirements for
participation in the Plan. The Employer shall notify the Administrator if and when an Employee
• has entered into such an agreement with the Employer and provide such information to the
Administrator as necessary to confirm the existence of said agreement. A subsequent change in
the terms of said agreement will not make the Employee eligible to participate in the Plan unless
the Adopting Employer amends its Adoption Agreement to specifically require participation by
said Employee.
Section 4.04. Change in Employment Status.
(a) Transfer to Ineligible Status. Unless otherwise specified by the Employer in the
Adoption Agreement, if a Participant's employment status changes such that he becomes an
Ineligible Employee, he shall cease to accrue benefits under the Plan for any purpose and his
interest under the Plan, if any, shall be only such as existed immediately before he became an
Ineligible Employee, unless and until he again becomes a Participant. In no event will his
service or earnings as an Ineligible Employee be taken into account for purposes of meeting the
•
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Plan's minimum service requirements for vesting, retirement eligibility, death benefit eligibility, •
or for purposes of computing the amount of any benefit payable under the Plan. However, said
period of service as an Ineligible Employee shall not be considered a break in Service under
Section 4.06, provided the Ineligible Employee remains continuously employed by the Adopting
Employer. If the Ineligible Employee does not again become a Participant prior to Retirement or
Termination of Employment, his Vested Benefit, if any, shall be paid as provided in Article IX.
(b) Transfer Back to Eligible Status. If an Ineligible Employee described in
subsection (a) above remains continuously employed by the Adopting Employer and he has
another change in employment status such that he again becomes a Participant, he shall
thereafter be entitled to accrue benefits in accordance with the terms of the Planus in effect as of
the date of the subsequent change in employment status. In no event, however, shall such a
Participant receive a greater benefit under the Plan than that which the Participant would have •
received had the Participant not had a change in employment status.
Section 4.05. Participant Leaves of Absence.
(a) USERRA, FMLA Leave — Notwithstanding any provision of this Plan to the
contrary, if any period of absence is required to be counted under USERRA, the FMLA or any
other applicable federal or state law as Current Credited Service for the purpose of computing
the amount of any benefit payable under the Plan, or for purposes of meeting the Plan's minimum
service requirements for vesting, retirement or death benefit eligibility, then said period of
absence shall be counted as such in accordance with and subject to the requirements of such law.
(b) Other Leaves of Absence. Unless otherwise required by law or unless the terms
of the leave otherwise specify, an authorized leave of absence granted to a Participant by the
Adopting Employer will be counted as Current Credited Service for the purpose of computing •
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• the amount of any benefit payable under the Plan, and for purposes of meeting the Plan's
minimum service requirements for vesting and benefit eligibility. However, if the Participant
does not return to active employment upon expiration of the authorized leave period, then
subsection(c) shall apply.
(c) Failure to Return to Service. Unless otherwise required by law or unless the
terms of the leave otherwise specify, if a Participant does not return to active employment with
the Employer upon expiration of a leave of absence, his interest under the Plan, if any, including
his Current Credited Service for the purpose of computing the amount of any benefit payable
under the Plan, and for purposes of meeting the Plan's minimum service requirements for vesting
and any minimum service requirements for retirement or death benefit eligibility, will be limited
to that accrued as of the date preceding the approved leave period.
• (d) Unused Leave. The Adopting Employer may elect in the Adoption Agreement to
credit certain unused leave at termination or retirement for which the Participant is not paid as
Credited Service, subject to the terms and limits specified in the Master Plan and Adoption
Agreement.
Section 4.06. Non-Vested Participant Breaks in Service.
Except as otherwise provided in the Adoption Agreement, this Section shall apply only to
Participants who are Eligible Regular Employees. If a non-vested Participant experiences a
break in service, the Participant's Current Credited Service shall not include any Service rendered
prior to the break in service, unless the Participant returns to employment with the Adopting
Employer and performs the lesser of: service equal to the break in service, or service equal to one
(1)year. The following limitations shall apply in administering the break in service rule:
i
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(a) Absence of Less Than One (1) Year. If a Participant terminates employment with •
the Adopting Employer and returns to employment with the Adopting Employer within one (1)
year after said termination, the Participant shall not be deemed to have incurred a break in
service. Except as otherwise required under this Section, however, the time he was absent shall
not be taken into account for any purpose under the Plan.
(b) Interim Employment with Another GMEBS Employer. If a Participant terminates
employment with the Adopting Employer and returns to employment with the Adopting
Employer after having spent the interim period in the continuous employment of another
Employer in the GMEBS, he shall not be deemed to have incurred a break in Service. The time
he was absent may be taken into account for purposes of determining whether the Participant has
met the minimum service requirements for vesting and retirement eligibility under the Adopting
Employer's Plan, as provided by and subject to the provisions of Section 9.05 concerning •
portability. However, in no event shall the time he was absent from the Adopting Employer be
taken into account for the purpose of computing the amount of any benefit payable under the
Adopting Employer's Plan.
(c) Treatment of Leaves of Absence. No leave of absence or other period of absence
from employment shall be considered a break in Service if it is not permitted to be treated as
such under USERRA, the FMLA, or any other applicable federal or state law. Unless otherwise
required by law or unless the terms of the leave otherwise specify, any other authorized leave of
absence granted to a Participant shall not be deemed a break in Service, provided the Participant
was regularly employed by the Employer immediately prior to his leave of absence and the
Participant is reemployed by the Employer upon expiration of the leave of absence. Unless
otherwise required by law or unless the terms of the leave otherwise specify, if a Participant does
•
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-3184173.14
• not return to active employment upon expiration of the approved leave period, he will be
considered to have incurred a break in Service under this Section as of the date immediately
preceding the approved leave period.
(d) Transfer to Ineligible Employee Status. Unless otherwise specified by the
Employer in the Adoption Agreement, if a Participant's employment status changes such that he
becomes an Ineligible Employee pursuant to Section 4.04, the period of time spent as an
Ineligible Employee shall not be considered a break in Service under this Section, provided the
Participant remains employed by the Adopting Employer. Unless otherwise specified by the
Adopting Employer, leaves of absence granted to an Ineligible Employee will not be considered
a break in Service under this Section, provided the Ineligible Employee returns to active
employment with the Employer upon expiration of the approved leave period and the
• requirements of subsection(c) are otherwise satisfied with respect to such leave of absence.
(e) Graduated Vesting. If the Adopting Employer has established a graduated vesting
schedule in the Adoption Agreement, and a Participant who is partially vested Terminates
Employment with the Adopting Employer and subsequently returns to employment with the
Adopting Employer, the Participant shall not be deemed to have incurred a break in service.
Except as otherwise required under this Section, however, the time he was absent shall not be
taken into account for any purpose under the Plan.
(f) Repeated Breaks in Service. If a non-vested Participant has a break in Service,
returns to employment with the Adopting Employer, and experiences one or more additional
breaks in Service prior to satisfying the one (1) year Service requirement necessary to work off
the initial break, then the Participant's Current Credited Service shall not include any Service
rendered prior to the most recent break in Service, unless upon the Participant's return to
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employment with the Employer following the most recent break in Service he performs Service •
for a period of at least one (1) year.
ARTICLE V.
RETIREMENT ELIGIBILITY
(a) The Retirement prerequisites of a Participant under this Plan are contingent upon
the type of Retirement offered by the Employer in the Adoption Agreement and selected by the
Participant: that is, Normal Retirement, Alternative Normal Retirement, Early Retirement, Late
Retirement, or Disability Retirement, as applicable. The provision of an Alternative Normal
Retirement benefit or the designation of an Alternative Normal Retirement Date in the Adoption
Agreement shall not be construed to establish an Alternative Normal Retirement Age or
Alternative Normal Retirement Date for purposes of the definition of Accrued Benefit under
Section 2.01, for purposes of computing death benefits under Article VIII, or for purposes of
applying the actuarial equivalent conversion provisions of Article XII. The minimum age and
service requirements and other prerequisites associated with each type of Retirement for each
class of Eligible Employees shall be as specified in the pertinent sections of the Adoption
Agreement. Except as otherwise provided in the Master Plan or Adoption Agreement with
respect to In-Service Distributions for those who remain in service after they qualify for Normal
Retirement or Alternative Normal Retirement, receipt of Retirement benefits shall also be
contingent upon Termination of Employment.
(b) Provided a Participant is otherwise eligible to receive a Retirement benefit under
the Plan, Retirement is contingent upon the satisfactory completion of the Applicable Form
provided for such purpose and the acceptance of the Applicable Form by the Pension Committee.
(c) Retirement applications shall be prepared and submitted at such time as to reach
the office of GMEBS no earlier than ninety (90) days and no later than thirty(30) days prior to a •
- 38 -
IB3184173.14
• Participant's effective Retirement Date. A Participant's effective Retirement date shall be the
first day of the month coinciding with or following the date he has satisfied all of the
prerequisites for Retirement as specified in this Article V, and actually Retires.
ARTICLE VI.
RETIREMENT BENEFITS
Section 6.01. Normal Retirement Benefit.
(a) A Participant, upon Retirement on or after his Normal Retirement Date (or
Alternative Normal Retirement Date, as applicable), shall receive a Monthly Retirement Benefit
under which payments shall commence on the first day of the month in which his effective
Retirement Date occurs and shall be payable on the first day of each month thereafter during his
lifetime. However, if directed by the Employer, Normal Retirement benefits (not including
Alternative Normal Retirement benefits or the In-Service Distribution of Normal or Alternative
Normal Retirement benefits)may be paid retroactively to the first day of the month following the
month in which the Participant's Termination occurs (or, if the Participant's Termination occurs
on the first of the month, the first day of the month in which the Participant's Termination
occurs) or if later, the first day of the month in which his Normal Retirement Date occurs. The
amount of the Monthly Retirement Benefit shall be determined based upon the applicable benefit
formula specified in the Adoption Agreement and in effect at the Participant's Termination. If
the Participant elects a form of benefit payment other than the standard form, the amount of the
Monthly Retirement Benefit will be adjusted in accordance with and subject to the terms of the
option elected(see Section 7.01).
(b) No interest shall be paid on the retroactive payment of Normal Retirement
benefits.
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Section 6.02. Early Retirement Benefit. •
(a) A Participant, upon Retirement on or after his Early Retirement Date and before
his Normal Retirement Date or Alternative Normal Retirement Date, shall receive a Monthly
Retirement Benefit under which payments shall commence on the first day of the month in
which his effective Retirement Date occurs and shall be payable on the first day of each month
thereafter during the lifetime of the Participant. The amount of such Monthly Retirement Benefit
shall be computed in the same manner as for a Normal Retirement benefit, but reduced on an
Actuarially Equivalent basis in accordance with the actuarial table contained in Section 12.01.
An Adopting Employer may adopt in the Adoption Agreement an alternative early retirement
actuarial reduction table for one or more classes of Eligible Employees, provided the adoption of
such table satisfies the requirements of Code Section 401(a)(25).
(b) Provided the Employer has elected in the Adoption Agreement to provide
•
Disability benefits, a Participant who is otherwise eligible for an Early Retirement benefit may
apply for and receive an Early Retirement benefit (i)while a Disability Retirement benefit
determination is pending, or (ii) while waiting for an approved Disability Retirement benefit to
commence. Upon a determination that the Participant is entitled to receive a Disability
Retirement benefit, the Participant's benefit will be changed to a Disability Retirement benefit (if
greater), retroactive to the Disability Retirement Date, provided that the requirements of Section
6.04(b) relating to making application for retroactive payments of Disability Retirement benefits
are met. If said requirements are not met but the Participant otherwise qualifies for a Disability
Retirement benefit, the Participant's benefit will be changed to a Disability Retirement benefit as
of the first day of the month coinciding with or following the date that the Participant submits
documentation sufficient to confirm his eligibility for a Disability Retirement benefit, as
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B3184173.14
• described in Section 6.04(c). However, no change in the form of benefit payment or designation
of the Post-Retirement Beneficiary may be made, and no Post-Retirement Beneficiary may be
named if one had not been previously named.
(c) If directed by the Employer, effective with respect to Participants who Terminate
Employment on or after January 1, 2014, Early Retirement benefits may be paid retroactively to
a date (first day of the month) designated on the Participant's retirement application, provided
that such date may be no earlier than the later of: 1) four(4) full calendar months prior to the
date of the Pension Committee Secretary's execution of the Participant's retirement application;
or 2) the Participant's Early Retirement Date. No interest shall be paid on the retroactive
payment of Early Retirement benefits. Effective with respect to Participants who Terminate
Employment on or after January 1, 2013 and prior to January 1, 2014, retroactive payment of
• Early Retirement benefits to the Participant's Early Retirement Date or date of Termination is not
permitted.
Section 6.03. Late Retirement Benefit.
(a) A Participant may Retire from the active Service of the Adopting Employer on
the first day of any month after his Normal Retirement Date, in which case the Participant shall
receive a Late Retirement benefit. For purposes of this provision and except as otherwise
provided in an Employer's Adoption Agreement or Addendum, a Participant who Terminates
Employment on or after January 1, 2014 will be treated as having Retired from the active service
of the Adopting Employer if the Participant submits a GMEBS retirement application no later
than thirty-one (31) days after his or her Termination of Employment and said application is
approved by GMEB S. The Late Retirement benefit shall be calculated in the same manner as the
• Normal Retirement benefit. However, the Employer may elect in the Adoption Agreement or
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I\3184173.14
Addendum thereto to provide for an increased Late Retirement benefit, in which case the Late •
Retirement Benefit shall be calculated in the same manner as the Normal Retirement Benefit, but
increased as provided in the Adoption Agreement or Addendum, as applicable.
Section 6.04. Disability Benefit.
(a) Where the Employer has elected in the Adoption Agreement to provide Disability
benefits,a Participant who becomes Disabled and Terminates Employment due to Disability on
or after April 1, 2015, and is otherwise entitled to receive a Disability Retirement benefit, shall
receive such benefit in accordance with and subject to the requirements of this Section.
(b) Requirements for Payment as of Disability Retirement Date - Disability
Retirement benefit payments shall be payable during a Participant's Disability as of the first day
of the month coinciding with or next following, and may be paid retroactively to, the
Participant's Disability Retirement Date,provided the following requirements are satisfied: •
(1) Application for Disability Award Must Be Filed Within 1 Year After
Termination — No later than one (1) year after the Participant's Termination of
Employment due to Disability, the Participant must file an application for a federal Social
Security Administration (SSA) disability award or, if applicable under Section 2.23, an
application for determination of Disability by the Pension Committee, and for a
Participant who terminates due to disability prior to April 1, 2015, such Participant also
must complete and submit a GMEBS retirement application form to the Pension
Committee Secretary no later than one (1) year after the Participant's Termination of
Employment due to Disability (regardless of whether the Participant has yet received a
federal SSA disability award or, if applicable, a Pension Committee determination of
Disability); and •
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• (2) GMEBS Retirement Application Form and Disability Award Must Be
Submitted Within 1 Year of Termination, or if Later, Within 6 Months After Date of
Disability Award; Proof of Application for Disability Award Before Expiration of 1 Year
Following Termination Due to Disability—Except as otherwise provided in subsection
6.04(b)(1) above, requiring Participants who terminate due to Disability prior to April 1,
2015, to submit a completed GMEBS retirement application form to the Pension
Committee Secretary within one (1) year following Termination of Employment due to
Disability, or subsection 6.04(b)(3) below, the Participant must submit the following to
the Pension Committee Secretary within one (1) year after the Participant's Termination
of Employment due to Disability or within six (6) months after the date of such award or
determination, whichever is later:
• (i) the Participant's GMEBS Retirement Application Form;
(ii) the SSA Disability Award(or, if applicable under Section 2.23, the
Pension Committee determination of Disability) reflecting a disability onset date
on or before the Participant's Termination date; and
(iii) documentation the Administrator deems sufficient to establish that
the Participant filed an application for a federal SSA disability award (or, if
applicable under Section 2.23, an application for determination of Disability by
the Pension Committee) before the expiration of one (1) year following
Termination of employment due to Disability. Such documentation may include a
copy of such application, a copy of the Disability award or determination received
in response to such application, or an affidavit completed by the Participant (on
•
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I\3184173.14
the GMEBS retirement application or another Applicable Form provided for such •
purpose) in which the Participant affirms that he or she has filed such application.
(3) Special Rule in Case of Disability Award on Subsequent SSA Disability
Application - In the event that a Participant's application for a SSA disability award is
denied, the Participant must make any subsequent application for a SSA disability award
within six (6) months following such denial becoming final, must allege in the
subsequent SSA application a disability onset date that is on or before the Participant's
Termination date, and where the Participant is subsequently granted a SSA disability
award, the Participant must submit the following to the Pension Committee Secretary
within six (6) months after the date of such favorable award, or if later, one (1) year after
the Participant's Termination of Employment:
(i) a GMEBS retirement application form (but see subsection •
6.04(b)(1) above concerning requirement for Participants who terminate due to
disability prior to April 1, 2015 to submit a GMEBS retirement application to the
Pension Committee Secretary within one (1) year after Termination of
Employment due to Disability);
(ii) the Participant's SSA disability award reflecting a disability onset
date on or before the Participant's Termination date or reflecting a disability onset
date that immediately follows the date of denial of the Participant's prior SSA
disability application (due to application of Social Security Administration res
judicata rules) but the Participant's actual Disability onset date was on or before
the Participant's Termination date as provided under Section 2.23; and
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• (iii) documentation the Administrator deems sufficient to establish that
within six (6) months after the SSA's denial of the Participant's initial application
for a disability award, the Participant filed a subsequent application for a SSA
disability award in accordance with this subsection 6.04(b)(3). Such
documentation may include a copy of such application, a copy of the Disability
award or determination received in response to such application, or an affidavit
completed by the Participant (on the GMEBS retirement application or another
Applicable Form provided for such purpose) in which the Participant affirms that
he or she has filed such application.
(c) Prospective Payment Following Retirement Application- If the Participant who
has Terminated Employment due to Disability is otherwise eligible to receive a Disability
Retirement benefit and except as otherwise permitted under subsection 6.04(b) above with
respect to payment of Disability Retirement benefits retroactive to the Participant's Disability
Retirement Date, Disability Retirement benefits shall be payable as of the first day of the month
following or coinciding with the date of acceptance of the Participant's completed GMEBS
retirement application form by the Pension Committee,provided such application includes: (1) a
Social Security Administration (SSA) disability award reflecting a disability onset date on or
before the Participant's Termination date; or (2) if applicable under Section 2.23, a Pension
Committee determination of Disability reflecting a Disability onset date on or before the
Participant's Termination date; or (3) where the Participant has received a SSA disability award
in response to a subsequent SSA disability application as provided under Section 2.23,
documentation which the Administrator deems sufficient to establish that the disability onset
date reflected in the SSA disability award immediately follows the date of denial of the
•
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I\3184173.14
Participant's prior SSA disability application (due to application of Social Security •
Administration res judicata rules) and that the Participant's actual Disability onset date was on or
before the Participant's Termination date. In no event shall Disability Retirement benefits be
payable before the Participant's Disability Retirement Date.
(d) Amount of Disability Retirement Benefit - The amount of the monthly Disability
Retirement benefit shall be determined as provided in the Adoption Agreement. The Adopting
Employer may elect in the Adoption Agreement to specify another method for calculation of the
benefit, and require an offset against the monthly Disability Retirement benefit for other types of
payments received by the Participant. The Participant shall receive the monthly Disability
Retirement benefit provided in this Section, or any other Monthly Retirement Benefit granted
under the Plan for which he is eligible if such benefit is greater than the aforesaid monthly
Disability Retirement benefit. However, under no circumstances shall any Retired Participant be •
entitled at one time to more than one type of Retirement benefit granted under the Plan.
(e) No interest shall be paid on the retroactive payment of Disability benefits.
(f) Where an Employer has executed or executes a General Addendum to the
Employer's Adoption Agreement which contains provisions on payment of Disability Retirement
benefits that conflict with the procedures or time limitations established in this Section 6.04, said
provisions of the General Addendum shall govern to the extent they conflict with this Section
6.04.
Section 6.05. Cost of Living Adjustment.
(a) An Employer may elect in the Adoption Agreement to provide for a variable
annual cost-of-living adjustment in the amount of Monthly Retirement Benefits payable under
the Plan to Participants or their Beneficiaries. In such event, the amount of benefits payable •
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• under the Plan shall be adjusted as provided in this Section, except as otherwise provided in the
Employer's Adoption Agreement.
(b) The Current Average Cost-of-Living Index Figure as defined in Section 2.21 shall
be ascertained as of the Adopting Employer's Adjustment Date in each year.
(c) Each Monthly Retirement Benefit then being received by Participants who
terminate after the date specified in the Adoption Agreement and their Beneficiaries shall
thereupon be adjusted as follows:
(1) Each Monthly Retirement Benefit shall be increased by the percentage that
the Current Average Cost-of-Living Index Figure increased over each recipient's Cost-of-
Living Base Figure, as defined in Section 2.17. If the Current Average Cost-of-Living
Index Figure is less than the Cost-of-Living Base Figure, no reduction in the Monthly
Retirement Benefit, shall be effected. Increased benefits are payable on the Adjustment
4111
Date.
(2) Notwithstanding the foregoing provisions, no increase in the amount of a
Monthly Retirement Benefit due to changes in the Current Average Cost-of-Living Index
Figure effective at any annual Adjustment Date shall be in excess of a certain percentage
of the amount of the Monthly Retirement Benefit payable immediately prior to each
Participant's or Beneficiary's applicable adjustment date. Said percentage limit shall be
designated by the Employer in the Adoption Agreement.
(d) An Adopting Employer may implement one-time or ad-hoc cost-of-living
adjustments by adopting an Addendum to the Adoption Agreement to effect said increase.
(e) In lieu of the variable cost-of-living adjustment referred to in subsections (a)-(c)
above, the Employer may elect in the Adoption Agreement to provide for a fixed annual
•
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113184173.14
cost-of-living adjustment, subject to any limitations imposed by the Internal Revenue Code or •
regulations issued thereunder.
Section 6.06. In-Service Distribution; Suspension of Benefits Following Return to
Service.
(a) General Rules.
(1) Unless otherwise provided in this Section and in the Adoption Agreement
or any Addendum thereto, a Participant shall be required to Terminate Employment with
an Adopting Employer prior to commencing Early, Normal or Alternative Normal
Retirement benefits under such Employer's GMEBS Plan. Likewise, unless otherwise
provided in this Section and in the Adoption Agreement or any Addendum thereto, if a
Retired Participant returns to service as an Eligible Employee with an Adopting
Employer from whose Trust Fund the Retired Participant is receiving a Monthly •
Retirement Benefit, said Monthly Retirement Benefit shall be suspended as of the date of
said return to service.
(2) Re-Computation of Benefit in Case of Suspension. In any case where the
payment of a Participant's Retirement benefit shall have been suspended, the Retirement
benefit payable on his re-retirement (whether before or after his Normal Retirement Date)
shall be the benefit computed in accordance with this Article on the basis of his aggregate
Total Credited Service and Final Average Earnings, if applicable, at the time of his
subsequent re-retirement, but reduced by the Actuarial Equivalent of any Retirement
benefits received by him prior to said suspension, and by any actuarial factors used in
calculating the benefit payable at the time of his previous Retirement. For purposes of
this subsection, the term "Actuarial Equivalent" shall mean an amount equal to the value •
- 48 -
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• of Retirement benefits received, determined as of the date of the Participant's Re-
retirement and computed on the basis of the actuarial assumptions contained in Section
12.06. In no event shall the resulting benefit be less than the benefit payable immediately
prior to the Participant's return to service with the Adopting Employer. A Retired
Participant who is reemployed as an Eligible Employee shall not be authorized to change
his form of benefit payment on his subsequent re-retirement, or to change his Post-
Retirement Beneficiary, or to name a Post-Retirement Beneficiary if one had not been
previously named. For the purposes of this Section, any such Participant's Credited
Service subsequent to his reemployment by the Employer as an Eligible Employee shall
commence as of the date of his reemployment as an Eligible Employee.
(3) Minimum Age Parameters for In-Service Distribution. In order to
commence or continue receiving Normal or Alternative Normal Retirement benefits
without a Bona Fide Separation from Service, if permitted under the Employer's Plan, a
Participant shall be required to satisfy the following minimum age and other
requirements:
(A) For a Participant who is not a "public safety employee" at the time
he applies for Normal or Alternative Normal Retirement benefits (and a
Participant who is a public safety employee at the time he applies for Normal or
Alternative Normal Retirement benefits unless subparagraph 6.06(a)(3)(B) below
applies), the Participant must be at least age sixty-two (62) (or such lower age
specified under applicable federal law as a safe-harbor age for distributions during
working retirement)to receive an In-Service Distribution.
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(B) For a Participant who is a "public safety employee" in the service •
of the Employer at the time he applies for Normal or Alternative Normal
Retirement benefits, the Participant must be at least age sixty-two (62) (or such
lower age specified under applicable federal law as a safe-harbor age for
distributions during working retirement) to receive an In-Service Distribution;
provided, however, that if the Adopting Employer's Plan provides for a Normal
Retirement Age or Alternative Normal Retirement Age which applies only to
public safety employees and which is at least age fifty (50) (or such lower age
specified under applicable federal law as a safe-harbor age for distributions during
working retirement), the Participant may receive an In-Service Distribution as
long as he is at least such age. For purposes of this subparagraph (B), "public
safety employees" are employees of the Adopting Employer who provide police
•
protection, firefighting services, or emergency medical services for any area
within the jurisdiction of the Adopting Employer.
(C) Notwithstanding any provision to the contrary, effective for
Employees hired during Plan Years beginning on or after the later of: January 1,
2017; or the close of the first regular legislative session of the legislative body
with the authority to amend the plan that begins on or after the date that is 3
months after the final regulations are published in the Federal Register, the Plan
will comply with the final Normal Retirement age regulations applicable to
governmental plans established in Treas. Reg. 1.401(a)— 1, as amended.
•
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• (b) Exception to General Rule; In-Service Distribution for Eligible Employees;
Continuation of Retirement Benefits Following Return to Service as an Eligible Employee After
a Bona Fide Separation from Service.
(1) In-Service Distribution Absent Termination or Bona Fide Separation from
Service Upon Qualifying for Normal Retirement. Notwithstanding the general rules
described in subsection 6.06(a)(1), an Adopting Employer may elect in the Adoption
Agreement or any Addendum thereto to permit In-Service Distribution to Participants (or
certain classes of Participants) who have satisfied the eligibility requirements for Normal
Retirement or Alternative Normal Retirement, as applicable, under the Adopting
Employer's Plan while remaining Eligible Employees under the Plan, in accordance with
and subject to the requirements of this paragraph. An Employer may elect in the
Adoption Agreement or any Addendum thereto to permit Participants or certain classes of
Participants who have (i) satisfied the qualifications for Normal Retirement or
Alternative Normal Retirement, as applicable, (ii) satisfied the minimum age parameters
set forth in subparagraph 6.06(a)(3), and (iii) applied for such Retirement benefits on the
Applicable Form to apply for and begin receiving their Retirement benefit as an In-
Service Distribution while in service as an Eligible Employee even though they have not
yet Terminated Employment with the Employer or to continue receiving Normal or
Alternative Normal Retirement benefits following a return to Service as an Eligible
Employee without first incurring a Bona Fide Separation from Service.
(2) Exception to General Rule; Continuing to Draw Early, Normal or
Alternative Normal Retirement Benefits After Returning to Service as Eligible Employee
Following a Bona Fide Separation from Service. Notwithstanding the requirement for
•
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IB3184173.14
suspension of benefits upon reemployment under subsection 6.06(a)(1) above, an
Adopting Employer may elect in the Adoption Agreement or any addendum thereto to
permit Retired Participants or certain classes of Retired Participants who return to service
as Eligible Employees following a Bona Fide Separation from Service to continue
receiving Early, Normal or Alternative Normal Retirement benefits following such return
to service, regardless of the Participant's age, in accordance with and subject to the
following requirements:
(A) Reemployment as Eligible Employee after Normal Retirement
Date. An Adopting Employer may elect (notwithstanding required suspension
under Section 6.06(a)(1)) in the Adoption Agreement or any Addendum thereto to
permit Retired Participants or certain classes of Retired Participants to continue
receiving Retirement benefits if they return to service with the Adopting •
Employer as an Eligible Employee on or after their Normal Retirement Date or
Alternative Normal Retirement Date, as applicable, and, with respect to a
Participant returning to service as an Eligible Employee on or after September 26,
2014, after a Bona Fide Separation from Service. If the Employer has made such
an election in the Adoption Agreement or Addendum, then Retired Participants
who are designated in the Adoption Agreement or Addendum as eligible to
continue receiving Retirement benefits following their return to service as an
Eligible Employee may continue to receive their Monthly Retirement Benefit if
they return to service with the Adopting Employer as an Eligible Employee after a
Bona Fide Separation from Service and on or after their Normal Retirement Date
or Alternative Normal Retirement Date, as applicable.
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1\3184173.14
• (B) Reemployment as Eligible Employee Before Normal Retirement
Date.
(i) Suspension of Early Retirement Benefits until Normal
Retirement Date; Recommencement of Benefits upon Attainment of
Normal Retirement Date. An Adopting Employer may elect
(notwithstanding required suspension under Section 6.06(a)(1)) in the
Adoption Agreement or any Addendum thereto to provide that, with
respect to Retired Participants or certain classes of Retired Participants, if
such a Retired Participant returns to Service as an Eligible Employee
before the Normal Retirement Date (or Alternative Retirement Date, as
applicable), and, with respect to a Participant returning to service as an
• Eligible Employee on or after September 26, 2014, after a Bona Fide
Separation from Service, and remains employed until the Normal
Retirement Date (or Alternative Normal Retirement Date, as applicable),
the Participant may apply for and receive a Monthly Retirement Benefit
on or after the Normal Retirement Date (or Alternative Normal Retirement
Date, as applicable), notwithstanding continued service with the Employer,
provided that the Participant satisfies the minimum age parameters for an
In-Service Distribution pursuant to Section 6.06(a)(3). Said Monthly
Retirement Benefit shall be computed in accordance with this Article,
based upon the Participant's Total Credited Service and Final Average
Earnings, if applicable, through the date the Participant recommences
• receipt of a Monthly Retirement Benefit pursuant to this subsection.
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1\3184173.14
However, except as otherwise provided in the Adoption Agreement or in •
an Addendum thereto, said Monthly Retirement Benefit shall be reduced
by the Actuarial Equivalent of any Retirement benefits received by the
Participant prior to said suspension, and by any actuarial factors used in
calculating the benefit payable at the time of the previous Retirement. For
purposes of this subsection, the term "Actuarial Equivalent" shall mean an
amount equal to the value of Retirement benefit payments received,
determined as of the date the Participant recommences receipt of a
Monthly Retirement Benefit, and computed on the basis of the actuarial
assumptions contained in Section 12.06. In no event shall the resulting
Monthly Retirement Benefit be less than the Participant's benefit payable
immediately prior to said suspension. •
(ii) Exception to General Rule; Continuation of Early
Retirement Benefits Upon Return to Service as Eligible Employee
Following Bona Fide Separation from Service. Notwithstanding the
requirement for suspension of benefits upon reemployment under
subsection 6.06(a)(1) above, an Adopting Employer may elect in the
Adoption Agreement or any Addendum thereto to permit Retired
Participants or certain classes of Retired Participants who are receiving an
Early Retirement benefit to continue receiving said benefit if they return to
Service with the Employer after a Bona Fide Separation from Service, or
with respect to Participants returning to service as an Eligible Employee
prior to September 26, 2014, after at least a six-month separation from •
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• Service, as an Eligible Employee at any time on or after their Early
Retirement Date but before their Normal Retirement Date (or Alternative
Normal Retirement Date, as applicable). If the Employer has made such
an election, and if a Retired Participant belongs to a class for which such
continuation of benefit payments is permitted, then upon the Retired
Participant's return to service with the Employer as an Eligible Employee
after the Early Retirement Date and after a Bona Fide Separation from
Service (or at least a six-month separation from Service, as applicable),
the Retired Participant may continue to receive a Monthly Retirement
Benefit during the period of reemployment.
(3) A Participant who receives an In-Service Distribution of Retirement
• benefits while serving as an Eligible Employee or who receives Retirement Benefits
following his return to service as an Eligible Employee shall not be authorized to change
his form of benefit payment, or to change his Post-Retirement Beneficiary on his
subsequent termination of employment, or to name a Post-Retirement Beneficiary if one
had not been previously named.
(4) With respect to Participants described in Section 6.06(b)(1) and (2) above,
except as otherwise provided in the Adoption Agreement or in an Addendum thereto,
upon said Participants' subsequent termination of employment or vacation of office, as
applicable, their Monthly Retirement Benefit shall be computed in accordance with this
Article on the basis of their aggregate Total Credited Service and Final Average Earnings,
if applicable, at the time of such termination of employment or vacation of office, but it
• shall be reduced by the Actuarial Equivalent of any Retirement benefits received prior to
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re-retirement, and by any actuarial factors used in calculating the benefit payable at the •
previous Retirement. For purposes of this subsection, the term "Actuarial Equivalent"
shall mean an amount equal to the value of Retirement benefits received, determined as
of the date of the Participant's re-retirement and computed on the basis of the actuarial
assumptions contained in Section 12.06. In no event shall the resulting benefit be less
than the benefit payable immediately prior to the Participant's re-retirement.
(c) Exception to General Rule; In-Service Distribution for Individuals Who Are Not
Eligible Employees; Continuation of Retirement Benefits Following Return to Service in a
Capacity Other Than as an Eligible Employee After a Bona Fide Separation from Service.
(1) In-Service Distribution Prior to Termination. Effective on or after
September 26, 2014, notwithstanding the general rule in Section 6.06(a)(1) and except as
may be otherwise provided in the Adoption Agreement or an Addendum thereto, •
regardless of whether an Employer elects to permit active Participants to receive In-
Service Distributions while serving as Eligible Employees under the Plan pursuant to
paragraph 6.06(b)(1) above, an individual who is in service with the Adopting Employer,
who previously accrued a benefit as an Eligible Employee under the Plan but who is not
currently an Eligible Employee under the Plan, may commence receipt of his Retirement
benefit while still in service with the Adopting Employer provided that such individual
(i) has satisfied the Adopting Employer's qualifications for Early Retirement, Normal
Retirement or Alternative Normal Retirement; (ii) has satisfied the minimum age and
other applicable requirements established in subparagraph 6.06(a)(3) above; and
(iii) applies for such Retirement benefit on the Applicable Form.
•
- 56 -
I\3184173.14
• (2) Continued Receipt of Retirement Benefits Upon Return to Service in a
Capacity Other Than as an Eligible Employee. Except as may be otherwise provided in
the Adoption Agreement or an Addendum thereto, an Adopting Employer may engage
any Retired Participant receiving benefits hereunder in a capacity other than as an
Eligible Employee and such engagement shall not terminate or suspend such benefits.
Effective with respect to Retired Participants who return to service in a capacity other
than as an Eligible Employee on or after September 26, 2014, in order to continue
receiving benefits after returning to service, the Retired Participant (i) must have had a
Bona Fide Separation from Service prior to returning to service in a capacity other than
as an Eligible Employee under the Plan; or (ii) must satisfy the minimum age parameters
established in subparagraph 6.06(a)(3) above.
(3) An individual who receives Retirement benefits while in the service of the
•
Adopting Employer pursuant to paragraphs 6.06(c)(1) and (2) above shall not be
authorized to change his form of benefit payment, or to change his Post-Retirement
Beneficiary on his subsequent Termination of Employment, or to name a Post-Retirement
Beneficiary if one had not been previously named. An individual who commences or
continues receiving benefits while in the service of the Adopting Employer in a capacity
other than as an Eligible Employee pursuant to paragraph 6.06(c)(1) or 6.06(c)(2) shall
not accrue benefits or service credit for any purpose under the Plan during his or her
period of continued service with the Adopting Employer during which he is not an
Eligible Employee.
(4) In the event that an individual described in paragraph 6.06(c)(1) or (2)
• subsequently becomes an Eligible Employee under the Plan, the provisions applicable to
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In-Service Distribution to Eligible Employees or to Retired Participants who return to •
Service with the Adopting Employer as an Eligible Employee, as applicable, under
subsection 6.06(b) above and the Adopting Employer's Adoption Agreement or
Addendum shall apply with respect to such individual. Except as otherwise provided in
the Adoption Agreement or in an Addendum thereto, upon such a Participant's
subsequent Termination of Employment or vacation of office, as applicable, his or her
Monthly Retirement Benefit shall be computed in accordance with this Article on the
basis of his or her aggregate Total Credited Service and Final Average Earnings, if
applicable, at the time of such Termination of Employment or vacation of office.
However, this Monthly Retirement Benefit shall be reduced by the Actuarial Equivalent
of any Retirement benefits received prior to re-retirement, and by any actuarial factors
used in calculating the benefit payable at the previous Retirement. For purposes of this
subsection, the term "Actuarial Equivalent" shall mean an amount equal to the value of
Retirement benefits received, determined as of the date of the Participant's re-retirement
and computed on the basis of the actuarial assumptions contained in Section 12.06. In no
event shall the resulting benefit be less than the benefit payable immediately prior to the
Participant's re-retirement.
(d) Death in Service After Retirement. If a Retired Participant who returns to service
with an Adopting Employer as an Eligible Employee or an active Participant commences
Retirement benefits while remaining in service as an Eligible Employee and he dies during the
period of continuous employment or during the period of his reemployment, as applicable, and
before re-retirement, then his Post-Retirement Beneficiary, if any, shall be entitled to receive the
monthly post-retirement survivor benefit payable, if any, taking into account any additional •
- 58 -
IB3184173.14
• Credited Service accrued prior to the date of the Participant's death in-service. Such post-
retirement survivor benefit shall be reduced by the Actuarial Equivalent of any Retirement
benefits received by the Participant prior to his death. In no event shall the resulting post-
retirement survivor benefit (after any actuarial reduction provided for in the preceding sentence)
be less than the benefit that would have been payable to such Post-Retirement Beneficiary had
the Participant not been employed as an Eligible Employee on or after his Retirement Date. This
provision shall not be interpreted to permit payment to a Pre-Retirement Beneficiary in the event
of a Retired Participant's death during reemployment.
(e) Suspension of Disability Benefits.
(1) Any Disability Retirement Benefit payable under the Plan to any
Participant shall be suspended as of the first day of the month coinciding with or
following the date his Disability ceases. A Participant's Disability shall be considered to
•
have ceased upon the earliest of the following dates: (1) with respect to Participants
whose entitlement to a Disability benefit is based upon receipt of disability insurance
benefits under the Federal Social Security Act, the date as of which the Social Security
Administration determines that the Participant is no longer disabled; or(2) with respect to
Participants whose entitlement to a Disability benefit is based upon a determination by
the Pension Committee, the date as of which the Pension Committee determines that the
Participant is no longer disabled as defined under Code Section 72(m), based upon an
examination by a physician chosen by the Pension Committee. With respect to those
Participants whose entitlement to a Disability benefit is based upon receipt of disability
insurance benefits under the Federal Social Security Act, the Participant shall be required
• to notify the Pension Committee Secretary within sixty (60) days after the Participant
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receives notice that the Social Security Administration has determined that the Participant •
is no longer disabled. With respect to those Participants whose entitlement to a Disability
benefit is based upon receipt of disability insurance benefits under the Federal Social
Security Act, the Pension Committee shall have the right to require the Participant to
prove at any time, as a condition for continued receipt of Disability benefits under the
Plan, continued eligibility for receipt of disability insurance benefits under the Federal
Social Security Act, as amended. With respect to Participants whose entitlement to a
Disability benefit is based upon a determination of Disability by the Pension Committee,
the Pension Committee shall have the right to require, as a condition for continued receipt
of Disability benefits, that the Participant be examined at any time by a physician chosen
by the Pension Committee. In the event that any Participant fails or refuses to submit to a
physical examination or to obtain and provide other information requested by the Pension
•
Committee to confirm continuation of a Disability, then the Participant's Disability
benefits shall be suspended as of the first day of the month following expiration of the
ninety (90) day period following the Pension Committee's request for such examination
or information, unless the Pension Committee determines in its discretion that the failure
to comply within ninety (90) days was due to circumstances beyond the Participant's
control, in which case the ninety (90) day time limit may be extended by the Pension
Committee and suspension may be deferred as determined by the Pension Committee.
(2) Notwithstanding any provision of this subsection 6.06(e) to the contrary,
and except as otherwise provided in an Employer's Adoption Agreement or Addendum
thereto, in the event that a Participant, who shall have retired or been retired for
Disability, returns to service as an Eligible Regular Employee or becomes an Eligible •
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Regular Employee of said Employer, his or her Disability Retirement benefit shall be
suspended as of the date of such return to or commencement of service as an Eligible
Regular Employee.
(3) Nothing in paragraph 6.06(e)(2) shall be construed to require the
suspension of a Participant's Disability Retirement benefit upon his return to service as an
elected or appointed member of the Governing Authority after the commencement of
such benefit unless and until the Participant is determined to no longer have a Disability,
or unless suspension of a Participant's Disability Retirement benefits is otherwise
required under subparagraph 6.06(e)(1).
(f) Suspension of Disability Benefit; Right to Other Benefits.
(1) In any case where the payment of a Participant's Disability Retirement
benefit is suspended, regardless of whether the Participant returns to service with the
•
Employer, the period of absence from employment due to such Disability shall not be
counted as Credited Service. Any Participant who shall have Retired or been Retired for
Disability and who has been or shall be subsequently declared ineligible for a Disability
Retirement benefit because of the cessation of said Disability, or as otherwise provided
pursuant to subsection 6.06(e) above, shall have a right to any benefit afforded under any
other provision of this Plan to which he or his beneficiary might otherwise be entitled. In
such case, any Disability Retirement payments made prior to the required suspension date
shall be retained by the Retiree and disregarded in computing any other benefit payable
under the Plan.
(2) Notwithstanding the foregoing, nothing herein shall be construed to allow
a Retired Participant who shall have Retired or been Retired due to Disability, who
•
- 61 -
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returns to service with the Employer, and who subsequently re-retires to elect a different
benefit payment form or name a new post-retirement beneficiary upon re-retirement.
(3) Unless otherwise provided in an Employer's Adoption Agreement or in an
Addendum thereto, in the event that a Retired Participant who is receiving a Disability
Retirement benefit returns to service as an elected or appointed member of the Governing
Authority, and his Disability Retirement benefit is not suspended, any Disability
Retirement payments made prior to his return to service or during such period(s) of
service as an elected or appointed member of the Governing Authority following such
return shall be retained by the Participant and disregarded in computing any other benefit
payable under the Plan upon his subsequent vacation of office.
ARTICLE VII.
OPTIONAL FORMS OF RETIREMENT INCOME
Section 7.01. Standard Benefit Payment Form; Other Payment Options. With
respect to retirement applications received by GMEBS on or after July 1, 2011, a Participant may
elect, or may revoke a previous election and make a new election, at any time prior to his
effective Retirement Date, to have his Retirement benefit payable under the standard benefit
payment option or under one of the other benefit payment options set forth in Section 7.03. The
standard benefit payment option is a monthly retirement benefit payable to the Participant during
his lifetime only. At the death of the Participant all payments will cease and no further benefits
will be payable to the estate of the Participant or other persons, except as otherwise provided in
Subsection 8.12(b). The standard benefit payment form is referred to in the Master Plan as
Option A. The benefit shall be paid in accordance with and subject to the terms of the benefit
payment option elected. Election of any option shall be made by the Participant in writing on the
•
Applicable Form, and shall be subject to approval by GMEBS.
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• Section 7.02. Designation of Post-Retirement Beneficiary. With respect to
retirement applications received by GMEBS on or after July 1, 2011, if the Participant elects
Option B (Joint and Survivor Option with Pop-Up) or Option C (Period Certain and Life
Option.) in Section 7.03, he shall designate a Post-Retirement Beneficiary to receive a survivor
benefit in accordance with and subject to the terms of such Option. Designation of a Post-
Retirement Beneficiary may be revoked or changed by the Participant by submitting a new
completed Retirement Application at any time prior to the Participant's effective Retirement date.
Only the last such designation of a Post-Retirement Beneficiary shall have effect, and any new
designation of a Post-Retirement Beneficiary shall invalidate, supersede, and revoke any prior
designation.
Section 7.03. Description of Options. With respect to retirement applications
received by GMEBS on or after July 1, 2011, the amount of any optional benefit set forth below
shall be the Actuarial Equivalent of the amount of the standard benefit that would otherwise be
payable to the Participant under Section 7.01 (monthly retirement benefit payable to the
Participant during his lifetime only, referred to as "OPTION A").
(a) OPTION B: Joint and Survivor Option with Pop-Up. A retirement benefit
computed and paid in the same manner as Option A above,but with a decrease in the retirement
benefit to account for the survivor benefit and the pop-up benefit provided under this Option B.
If the Participant elects Option B, then the Participant will receive a decreased retirement benefit
which shall be payable during the lifetime of the Participant. If the Participant's designated Post-
Retirement Beneficiary should survive the Participant (except as provided in subsections (1) and
(2) below with respect to the Post-Retirement Beneficiary's death before the Participant or the
• divorce of the Participant and Post-Retirement Beneficiary) the benefit shall continue to be paid
- 63 -
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to the Post-Retirement Beneficiary after the Participant's death during the lifetime of the Post- •
Retirement Beneficiary in the same amount (100%) or in such smaller amount (75%, 50%, or
25%), as the Participant has designated on his retirement application. This option shall be
known as Option B. The Participant's retirement benefit under Option B shall be calculated in
accordance with Section 12.02(a) or Section 12.02(b), whichever is applicable.
(1) Death of Post-Retirement Beneficiary Before Participant In the event
that the Participant's Post-Retirement Beneficiary dies before the Participant and after
Retirement benefit payments have commenced, and provided the Participant furnishes
GMEBS with proper proof of the Beneficiary's death within one (1) year after such death,
the requirement for a reduction in the Participant's monthly retirement benefit on account
of his election of Option B shall no longer apply(resulting in an increase, or "pop-up", in
the Participant's monthly retirement benefit), effective as of the first day of the month •
following the Post-Retirement Beneficiary's death. Effective with respect to monthly
payments made on and after such date,the amount of the Participant's monthly retirement
benefit shall be equal to the monthly amount that would have otherwise been payable to
the Participant under Article VI, had the Participant elected Option A. However, if the
Participant fails to furnish the Plan with proper proof of the Post-Retirement
Beneficiary's death within the one (1) year period referred to above, then said change in
monthly retirement benefit shall not become effective until the first day of the month
following the date such proof is submitted to GMEBS. If the Post-Retirement
Beneficiary does not survive the Participant, all payments shall cease at the death of the
Participant and no further benefits will accrue to his estate or to other persons.
- 64 -
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• (2) Divorce of Participant and Post-Retirement Beneficiary—If the Participant
designates his Spouse as his Post-Retirement Beneficiary and provides GMEBS with
proof that GMEBS in its sole discretion deems sufficient to establish that the Post-
Retirement Beneficiary is the Participant's Spouse as of the Participant's effective
retirement date, and if the Participant and the Post-Retirement Beneficiary become
divorced after retirement benefit payments have commenced, then the Participant is
permitted but not required to request a "pop-up" in his monthly retirement benefit, in
accordance with and subject to the requirements of this subsection(2). A Participant who
requests a pop-up pursuant to this subsection (2) will be bound by the provisions of this
subsection and any other terms and conditions for receipt of said pop-up as set forth in an
Applicable Form provided by GMEBS for such purpose. Such Participant shall furnish
proof to GMEBS which GMEBS in its sole discretion deems sufficient to confirm the
Participant's divorce from the Post-Retirement Beneficiary and the Participant's eligibility
for the pop-up benefit provided herein, which may include but may not be limited to a
court-certified copy of a valid divorce decree. In the event that the conditions of this
subsection (2) are satisfied, the requirement for a reduction in the Participant's monthly
retirement benefit on account of the election of Option B will no longer apply; provided,
however, that GMEBS may deny the Participant's application for the pop-up in the event
that GMEBS, in its sole discretion, determines that such denial is prudent or necessary
based on the terms of the applicable divorce decree. Any change in the monthly
retirement benefit resulting from the pop-up, if approved by GMEBS, will be effective as
of the first day of the month following GMEBS' receipt of said Applicable Form
• completed by the Participant, and after GMEBS' receipt of said proof evidencing divorce.
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Effective with respect to monthly payments made on and after such date, the amount of •
the Participant's monthly retirement benefit will be equal to the monthly amount that
would have otherwise been payable to the Participant under Article VI had the Participant
elected Option A. On and after said date, the Participant's Post-Retirement Beneficiary
will not be eligible to receive any survivor benefits following the Participant's death,
notwithstanding any prior designation made by the Participant or the later remarriage of
the Participant and the Post-Retirement Beneficiary. All payments shall cease at the
death of the Participant and no further benefits will accrue to his estate or to other persons.
This provision shall not be construed to permit a Participant to change his form of benefit
payment, to change his Post-Retirement Beneficiary after his effective Retirement date,
or to name a new Post-Retirement Beneficiary following the Participant's divorce from
the Post-Retirement Beneficiary. Nor shall this provision be construed to require or •
permit payment of all or a portion of a Participant's retirement benefit to a former spouse
pursuant to a domestic relations order.
(b) OPTION C: Period Certain and Life Option. A decreased benefit payable
monthly to the Participant during his lifetime and, in the event of his death within a period of
specified years, either five (5), ten (10), fifteen (15), or twenty (20) years after his benefit
commencement, the same monthly amount shall be payable for the balance of such period to the
Post-Retirement Beneficiary designated by him. If the Post-Retirement Beneficiary survives the
Participant but dies before the end of such period, any unpaid monthly amounts that would have
otherwise been payable to the Post-Retirement Beneficiary for the remainder of said period
following the Post-Retirement Beneficiary's death shall be paid to the Post-Retirement
Beneficiary's estate. If the Post-Retirement Beneficiary does not survive the Participant, all •
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• payments shall cease at the death of the Participant and no further benefits will accrue to his
estate or to other persons except as provided in Article VIII. This option shall be known as
Option C. The Retirement benefit under Option C shall be calculated in accordance with Section
12.03.
Section 7.04. Cancellation of Election. The election by a Participant of any option in
this Article VII shall be null and void if either the Participant or his designated Post-Retirement
Beneficiary dies before the Participant's effective Retirement date.
Section 7.05. Rule for Small Benefits.
(a) Effective January 1, 2002, the present value of a Plan benefit shall be distributed
in a cash single sum payment to the Participant, Terminated Vested Participant, or Pre-
Retirement Beneficiary, as applicable, if the present value of said Plan benefit payable to the
• recipient does not exceed Five Thousand Dollars ($5,000) on the date of distribution. The
present value of said Plan benefit shall be determined in accordance with Article XII.
(b) Effective for distributions commencing on or after March 28, 2005, if a
distribution to be made under subsection (a) is greater than One Thousand Dollars ($1,000), is an
eligible rollover distribution, and the recipient of the distribution does not elect to have the
distribution paid directly to an eligible retirement plan specified by the recipient in a direct
rollover or does not elect to receive the distribution directly, the Administrator will pay the
distribution in a direct rollover to an individual retirement plan designated by the Administrator.
(c) Notwithstanding the provisions of subsections (a) and (b), effective on and after
July 1, 2007, no distribution will be made under this Section unless and until the recipient of the
distribution makes an election to either have the distribution paid directly to an eligible
•
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retirement plan specified by the recipient in a direct rollover or to receive the distribution directly •
in cash.
Section 7.06. Distributions.
(a) Distributions payable as of any date shall be made on or as soon as
administratively feasible after that date.
(b) In a contributory plan, interest shall be paid on any refund of employee
contributions only as specified in the Adoption Agreement.
Section 7.07. Compliance with Internal Revenue Section 401(a)(9). All
distributions shall be made in compliance with Article X.
Section 7.08. Compliance with Internal Revenue Section 415. All benefit options
must comply with the limitations of Code Section 415, pursuant to Article XI and as applicable
to governmental plans. •
ARTICLE VIII.
DEATH BENEFITS
Section 8.01. Death in Service Prior to Retirement. In the event a Participant's
employment or term of office is Terminated by reason of death prior to Retirement, there shall be
paid to the Pre-Retirement Beneficiary the in-service death benefit elected by the Employer in
the Adoption Agreement, provided the requirements of this Article are satisfied and except as
otherwise provided under this Article.
Section 8.02. Actuarial Reserve In-Service Death Benefit. An Employer may elect
in the Adoption Agreement to provide the Actuarial Reserve In-Service Death Benefit for one or
more classes of Eligible Employees. In such case, the Employer shall designate in the Adoption
Agreement the minimum service and other eligibility requirements a Participant must satisfy in
order to be entitled to receive such benefit. Provided a Participant satisfies such requirements,
•
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• then in the event the Participant's employment with the Adopting Employer is terminated by
reason of his death prior to his Retirement, and except as otherwise provided in Section 8.07(b),
there shall be paid to his Pre-Retirement Beneficiary a lifetime monthly death benefit actuarially
equivalent to the reserve required for the Participant's anticipated Normal Retirement benefit. In
calculating the Normal Retirement benefit under the provisions of this Section, the following
assumptions shall be used:
(a) The Participant's age at the time of his death is equal to the Normal Retirement
Age as specified by the Employer in the Adoption Agreement, or his attained age if his attained
age is greater than the Normal Retirement Age; and
(b) The Participant's Total Credited Service shall include the amount of Total
Credited Service accrued prior to the date of the Participant's death. The Employer may elect in
the Adoption Agreement to include additional imputed Credited Service in the calculation, but in
no event shall the amount of Total Credited Service used in the calculation exceed the sum of
actual service performed plus ten (10) calendar years. The death benefit under this Section shall
be calculated using the factors contained in Section 12.04.
(c) Effective January 1, 2015, with respect to those Adopting Employers who have
elected in their Adoption Agreement to provide the Actuarial Reserve In-Service Death Benefit,
an Eligible Regular Employee must have at least one (1) year of Credited Service with the
Adopting Employer to be eligible for the Actuarial Reserve In-Service Death Benefit; provided,
however, that this one (1) year minimum shall not apply with respect to an Eligible Regular
Employee: (1) whose immediate prior employment was with another GMEBS Adopting
Employer and who had at least one (1) year of Credited Service with such prior GMEBS
Adopting Employer, or (2) (A) who is not described in paragraph 8.02(c)(1) above and whose
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Employer's Plan contains an Addendum provision which was in effect immediately prior to •
January 1, 2015, which provides for a waiting period of less than one (1) year to commence
participation in the Plan, and(B)who was employed with said Employer prior to January 1, 2015
and satisfies such time limitation prior to the date of his death. The one (1) year minimum and
the exceptions thereto described in this subsection 8.02(c) shall not supersede eligibility
conditions specified in an Adopting Employer's Adoption Agreement or Addendum thereto
which specify a requirement of more or less than one (1) year of Credited Service with the
Adopting Employer and/or other minimum age or service requirements that are inconsistent with
this Section 8.02 to be eligible for the Actuarial Reserve In-Service Death Benefit. Except as
otherwise provided in an Adopting Employer's Adoption Agreement or Addendum thereto,
elected or appointed members of the Governing Authority shall not be subject to a minimum
Service requirement to be eligible for the Actuarial Reserve In-Service Death Benefit. •
Section 8.03. Auto A In-Service Death Benefit. An Employer may elect in the
Adoption Agreement to provide the Auto A in-service death benefit for one or more classes of
Eligible Employees. In such case, the Employer shall designate in the Adoption Agreement the
minimum Service and other eligibility requirements a Participant must satisfy in order to be
entitled to such benefit. Provided a Participant satisfies such requirements, then in the event that
the Participant's employment with the Adopting Employer is terminated by reason of his death
prior to his Retirement, and except as otherwise provided in Section 8.06(b), there shall be paid
to his Pre-Retirement Beneficiary a lifetime monthly death benefit,as follows:
(a) Monthly Death Benefit Payable to Spouse. If the Pre-Retirement Beneficiary to
whom the in-service death benefit is payable under this Section is the Participant's Spouse, then
the lifetime monthly death benefit payable to said Spouse shall commence on the first day of the •
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• month coinciding with or immediately following the date of the Participant's death.
Alternatively, the Spouse may elect to defer benefit payment commencement until the first day
of any month up to and including the date the Participant would have attained Normal
Retirement Age as defined in the Employer's Adoption Agreement. A Spouse shall be
considered to have deferred benefit payment commencement until the first day of the month
following the date the Spouse makes application for payment of death benefits. If the Pre-
Retirement Beneficiary to whom the in-service death benefit is payable under this Section is not
the Spouse of the Participant, then the lifetime monthly death benefit payable to said Beneficiary
shall commence on the first day of the month coinciding with or immediately following the date
of the Participant's death.
(b) Computation of Monthly Death Benefits. Benefits under this Section shall be
® computed as of the date of the Participant's death, based upon the applicable benefit formula in
effect on said date, as follows:
(1) Participant Death Before Early Retirement Age; Payment Before Early
Retirement Age. If a Participant dies before attaining Early Retirement Age as defined in
the Employer's Adoption Agreement, and if benefit payments commence to a Pre-
Retirement Beneficiary before the Participant would have attained Early Retirement Age,
then the monthly death benefit payable to said beneficiary shall be the Actuarial
Equivalent of the monthly Retirement benefit amount that would have otherwise been
payable to the Participant, assuming the Participant: (i)terminated employment on his
date of death; (ii) survived until Normal Retirement Age as defined in the Adoption
Agreement; and (iii) elected to retire upon attaining Normal Retirement Age with the
• optional form of Retirement payment designated in Section 7.03 as Option B at one
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hundred percent (100%), and then died. Said benefit shall be calculated in accordance •
with the actuarial assumptions specified in Section 12.06.
(2) Participant Death Before Early Retirement Age; Deferred Payment by
Spouse Until After Early Retirement Age. If the Participant dies before attaining Early
Retirement Age as defined in the Employer's Adoption Agreement and a Spouse who is
eligible to receive the in-service death benefit hereunder defers payment until a date
which is on or after the date the Participant would have attained Early Retirement Age,
then the monthly death benefit payable to the Spouse Beneficiary shall be the monthly
Retirement benefit that would have otherwise been payable to the Participant, assuming
that the Participant: (i)terminated employment on the date of death; (ii) survived until the
date upon which the deferred benefit payments commence in accordance with the Spouse
Beneficiary's selected benefit commencement date; and, (iii) elected to retire on the •
benefit commencement date with the optional form of Retirement payment designated in
Section 7.03 as Option B at one hundred percent(100%), and then died.
(3) Participant Death After Early Retirement Age; Payment Upon Death. If
the Participant dies after attaining Early Retirement Age as defined in the Employer's
Adoption Agreement, and if benefit payments commence to a Pre-Retirement Beneficiary
on the first day of the month coinciding with or immediately following the date of the
Participant's death, then the monthly death benefit payable to said Pre-Retirement
Beneficiary shall be the monthly benefit that would have otherwise been payable to the
Participant, assuming the Participant: (i) retired on the date of death, and (ii) elected the
optional form of Retirement payment designated in Section 7.03 as Option B at one
hundred percent(100%), and then died. •
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• (4) Participant Death After Early Retirement Age; Deferred Payment by
Spouse. If the Participant dies after attaining Early Retirement Age as defined in the
Employer's Adoption Agreement, and if a Spouse who is eligible to receive the Auto A
in-service death benefit hereunder defers payment in accordance with this Section, then
the monthly benefit payable to the Spouse Beneficiary shall be the monthly Retirement
benefit that would have otherwise been payable to the Participant, assuming that the
Participant: (i)terminated employment on his date of death; (ii) survived until the date
upon which the deferred benefit payments commence in accordance with the Spouse
beneficiary's selected commencement date, and (ii) elected to retire on the benefit
commencement date with the optional form of Retirement payment designated in Section
7.03 as Option B at one hundred percent(100%), and then died.
Section 8.04. Designation of Beneficiary. Unless otherwise provided in the Adoption
Agreement or an Addendum thereto, a Participant may designate, on an Applicable Form
provided for that purpose, one person as his Primary Pre-Retirement Beneficiary. If the
Participant's employment with the Employer is terminated by reason of the Participant's death
prior to his Retirement and if as of the date of the Participant's death the Participant has satisfied
the minimum service and other eligibility requirements to be entitled to an in-service pre-
retirement death benefit, said Primary Pre-Retirement Beneficiary shall receive the monthly pre-
retirement death benefit elected by the Employer in the Adoption Agreement, provided the
Primary Pre-Retirement Beneficiary survives the Participant by at least thirty-two (32) days in
accordance with O.C.G.A. § 47-1-15 (a copy of which is included in the Appendix hereto). The
Participant may additionally designate, on an Applicable Form provided for that purpose, one
• person as his Secondary Pre-Retirement Beneficiary. The monthly death benefit otherwise
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payable to the Primary Pre-Retirement Beneficiary hereunder shall be payable to the Participant's •
designated Secondary Pre-Retirement Beneficiary in the event that: (1) the Participant's
employment with the Employer is terminated by reason of the Participant's death prior to his
Retirement; (2) the Primary Pre-Retirement Beneficiary does not survive the Participant by at
least thirty-two (32) days; and (3) the Secondary Pre-Retirement Beneficiary survives the
Participant by at least thirty-two (32) days.
Section 8.05. Change of Beneficiary. Designation of a Primary or Secondary Pre-
Retirement Beneficiary may be changed by the Participant in writing on an Applicable Form
provided for that purpose at any time prior to Retirement. Only the last such designation prior to
Retirement shall have effect and any new designation of a Primary or Secondary Pre-Retirement
Beneficiary invalidates, supersedes, and revokes any prior designation.
Section 8.06. Auto A In-Service Pre-Retirement Death Benefit; Default
Beneficiary; Payment to Surviving Spouse or to Estate Where Benefit Not Payable to
Designated Primary or Secondary Pre-Retirement Beneficiary.
(a) Effective with respect to deaths occurring on or after July 1, 2015, and except as
otherwise provided in an Adopting Employer's Adoption Agreement or Addendum, in the
absence of a designation by the Participant, or if there is no Primary or Secondary Pre-
Retirement Beneficiary to whom the Auto A in-service pre-retirement death benefit is payable
under this Article, then the Auto A in-service pre-retirement death benefit shall be paid to the
Participant's surviving Spouse in accordance with this subsection. In such case, the Participant's
surviving Spouse shall be considered the Pre-Retirement Beneficiary under the Plan. For
purposes of this subsection, the term "surviving" shall mean surviving the Participant by at least
thirty-two (32) days. •
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• (b) Effective with respect to deaths occurring on or after July 1, 2015, and except as
otherwise provided in an Adopting Employer's Adoption Agreement or Addendum, if there is no
Pre-Retirement Beneficiary (i.e., a designated Pre-Retirement Beneficiary or surviving Spouse)
to whom the Auto A in-service death benefit is payable, then a lump sum payment equal to fifty
percent (50%) of the Actuarial Equivalent of the Participant's Vested Accrued Benefit, if any,
shall be paid to the Participant's estate in lieu of the lifetime monthly benefit which would
otherwise be payable to the Pre-Retirement Beneficiary. Such lump sum Actuarial Equivalent
shall be determined as if the Participant had Terminated Employment on the date immediately
preceding his date of death and received a lump sum distribution of said benefit under Section
7.05, determined without reference to the maximum cash-out limits of said Section, and using
the assumptions set forth in Section 12.06.
• (c) Effective with respect to deaths occurring before July 1, 2015, in the absence of a
designation by the Participant, or if there is no Primary or Secondary Pre-Retirement Beneficiary
to whom a pre-retirement death benefit is payable under this Article, then the pre-retirement
death benefit shall be paid to the Participant's surviving Default Beneficiary in accordance with
this subsection. For purposes of this subsection, the Participant's Default Beneficiary(ies) shall
be as follows: (a) the Participant's surviving Spouse; or (b) if there is no surviving Spouse, the
Participant's surviving Children; or (c) if there is no surviving Spouse or Children, the
Participant's surviving Parent(s). For purposes of this Section, the term "surviving" shall mean
surviving the Participant by at least thirty-two (32) days. For purposes of this subsection, the
term "Spouse" shall be as defined in Section 2.62. The term "Child" or "Children" shall be as
defined in Section 2.12. The term "Parent" shall be as defined in O.C.G.A. §19-11-3(7),
determined as of the date of the Participant's death. Notwithstanding any other provision to the
•
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contrary, if a death benefit becomes payable to more than one Child of the Participant under this •
subsection, then such benefit shall be paid to each such Child and calculated in a manner to
provide each Child with an equal monthly benefit which ceases on the date such Child reaches
age twenty-two (22). Such benefit shall be calculated using the factors contained in Section
12.06. If a death benefit is payable to more than one surviving Parent of the Participant under
this subsection, then such benefit shall be calculated in a manner to provide each such Parent
with the same monthly benefit amount for his or her lifetime. If a Child who is receiving a
monthly benefit hereunder reaches age twenty-two (22) or if a Child or Parent receiving a
monthly benefit hereunder dies,this shall not affect the monthly benefit amount any other Child
or Parent is receiving. Except as otherwise provided in Section 8.07, if there is no Primary,
Secondary, or Default Beneficiary to whom a death benefit is payable, then no death benefit is
payable under the Plan.
Section 8.07. Actuarial Reserve In-Service Pre-Retirement Death Benefit;
Payment to Surviving Spouse or to Estate Where Benefit Not Payable to Designated
Primary or Secondary Pre-Retirement Beneficiary.
(a) Effective with respect to deaths occurring on or after July 1, 2015, and except as
otherwise provided in an Adopting Employer's Adoption Agreement or Addendum, with respect
to the Actuarial Reserve in-service death benefit only, if there is no Primary or Secondary Pre-
Retirement Beneficiary to whom the death benefit is payable, then the Actuarial Reserve in-
service pre-retirement death benefit shall be paid to the Participant's surviving Spouse in
accordance with this Section, in which case the Participant's surviving Spouse shall be
considered the Pre-Retirement Beneficiary under the Plan. For purposes of this Section, the term
"surviving" shall mean surviving the Participant by at least thirty-two (32) days.
•
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• (b) Effective with respect to deaths occurring on or after July 1, 2015,if there is no
Pre-Retirement Beneficiary (i.e., a designated Pre-Retirement Beneficiary or surviving Spouse)
to whom the death benefit is payable, then the Actuarial Equivalent of the Participant's vested
Accrued Retirement Benefit shall be paid to the Participant's estate in lieu of the lifetime
monthly benefit which would otherwise be payable to a Pre-Retirement Beneficiary. Such
Actuarial Equivalent shall be determined as if the Participant had terminated employment on the
date immediately preceding his date of death and received a lump sum distribution of his benefit
under Section 7.05, determined without reference to the maximum cash-out limits of said Section,
and using the assumptions set forth in Section 12.06.
(c) Effective with respect to deaths occurring before July 1, 2015, with respect to the
Actuarial Reserve in-service death benefit only, if there is no Primary, Secondary or Default Pre-
Retirement Beneficiary to whom a death benefit is payable under Section 8.06, then the Actuarial
•
Equivalent of the Participant's vested Accrued Retirement Benefit shall be paid to the
Participant's estate in lieu of the lifetime monthly benefit which would otherwise be payable to a
Pre-Retirement Beneficiary. Such Actuarial Equivalent shall be determined as if the Participant
had terminated employment on the date immediately preceding his date of death and received a
lump sum distribution of his benefit under Section 7.05, determined without reference to the
maximum cash-out limits of said Section.
Section 8.08. Terminated Vested Death Benefits. If the Employer elects in the
Adoption Agreement to provide a death benefit for Terminated Vested Participants or for certain
classes of Terminated Vested Participants, then in the event such a Terminated Vested
Participant dies before the effective Retirement Date, there shall be paid to the Pre-Retirement
Beneficiary the terminated vested death benefit specified in the Adoption Agreement, provided
•
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the requirements of this Article are satisfied and except as otherwise provided in this Article. •
Notwithstanding any provision to the contrary, effective October 1, 2016, an Adopting Employer
that had not previously elected in its Adoption Agreement or Addendum thereto to provide a
Terminated Vested death benefit to one or more classes of Participants shall be deemed to have
elected by default to provide the Terminated Vested Auto A Death Benefit to such class or
classes of Participants who terminate employment on or after such date.
Section 8.09. Terminated Vested Auto A Death Benefit. The Employer may elect
in the Adoption Agreement to provide the Auto A Death Benefit for one or more classes of
Terminated Vested Participants. In such case, the Employer shall designate in the Adoption
Agreement the minimum Service and other eligibility requirements a Terminated Vested
Participant must satisfy in order to be entitled to such benefit. Provided a Terminated Vested
Participant satisfies such requirements, then in the event that the Terminated Vested Participant
dies prior to his effective Retirement date, his Pre-Retirement Beneficiary may apply to receive a
lifetime monthly death benefit subject to the provisions of this Section. If the Terminated Vested
Participant's Pre-Retirement Beneficiary is the Terminated Vested Participant's Spouse, then the
lifetime monthly death benefit payable to the Spouse Beneficiary under this Section shall
commence on the first day of the month coinciding with or immediately following the date of the
Terminated Vested Participant's death. Alternatively, the Spouse Beneficiary may elect to defer
benefit payment commencement until the first day of any month up to and including the date the
Participant would have attained Normal Retirement Age as determined under the Employer's
Adoption Agreement. A Spouse designated as beneficiary shall be considered to have deferred
benefit payment commencement until the first day of the month following the date the Spouse
makes application for payment of death benefits. If the Pre-Retirement Beneficiary is not the •
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• Spouse of the Terminated Vested Participant, then the lifetime monthly death benefit payable to
the beneficiary under this Section shall commence on the first day of the month coinciding with
or immediately following the date of the Terminated Vested Participant's death. Benefits under
this Section shall be computed as follows:
(a) Terminated Vested Participant Death Before Early Retirement Age; Payment
Before Early Retirement Age. If a Terminated Vested Participant dies before attaining Early
Retirement Age as defined in the Adoption Agreement, and if benefit payments commence to a
beneficiary before the Terminated Vested Participant would have attained Early Retirement Age,
then the monthly death benefit payable to the beneficiary shall be the Actuarial Equivalent of the
monthly Retirement benefit amount that would have otherwise been payable to the Terminated
Vested Participant, assuming: (i)the Terminated Vested Participant survived until Normal
• Retirement Age; and (ii) the Terminated Vested Participant elected the optional form of
Retirement payment designated herein as Option B at one hundred percent (100%), and then died.
Said benefit shall be calculated in accordance with the actuarial assumptions specified in Section
12.06.
(b) Terminated Vested Participant Death Before Early Retirement Age; Deferred
Payment by Spouse Until After Early Retirement Age. If the Terminated Vested Participant dies
before attaining Early Retirement Age as defined in the Adoption Agreement and a Spouse
designated as beneficiary defers payment until a date which is on or after the date the Terminated
Vested Participant would have attained Early Retirement Age, then the monthly death benefit
payable to the Spouse shall be the monthly Retirement benefit that would have otherwise been
payable to the Terminated Vested Participant, assuming that: (i)the Terminated Vested
Participant survived until the date upon which the deferred benefit payments commence in
1111
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accordance with the Spouse's selected benefit commencement date; and, (ii)the Terminated •
Vested Participant elected on such date to retire with the optional form of Retirement payment
designated herein as Option B at one hundred percent (100%), and then died.
(c) Terminated Vested Participant Death After Early Retirement Age; Payment Upon
Death. If the Terminated Vested Participant dies after attaining Early Retirement Age as defined
in the Adoption Agreement, and if benefit payments commence to a beneficiary on the first day
of the month coinciding with or immediately following the date of the Terminated Vested
Participant's death, then the monthly death benefit payable to the beneficiary shall be the
monthly benefit that would have otherwise been payable to the Terminated Vested Participant,
assuming: (i)the Terminated Vested Participant retired on the date of death, and (ii)the
Terminated Vested Participant elected the optional form of Retirement payment designated
herein as Option B at one hundred percent(100%), and then died.
(d) Terminated Vested Participant Death After Early Retirement Age; Deferred
Payment by Spouse. If the Terminated Vested Participant dies after attaining Early Retirement
Age, and if a Spouse designated as beneficiary defers payment in accordance with this Section,
then the monthly benefit payable to the Spouse shall be the monthly Retirement benefit that
would have otherwise been payable to the Terminated Vested Participant, assuming that: (i)the
Terminated Vested Participant survived until the date upon which the deferred benefit payments
commence in accordance with the Spouse's selected commencement date, and (ii)the
Terminated Vested Participant elected to retire on such date with the optional form of Retirement
payment designated herein as Option B at one hundred percent (100%), and then died.
(e) Auto A Terminated Vested Death Benefit; Payment to Surviving Spouse or to
Estate Where Benefit Not Payable to Designated Primary or Secondary Pre-Retirement •
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• Beneficiary. Effective with respect to deaths occurring on or after July 1, 2015, and except as
otherwise provided in an Adopting Employer's Adoption Agreement or Addendum, in the
absence of a designation by the Participant, or if there is no Primary or Secondary Pre-
Retirement Beneficiary to whom the terminated vested Auto A death benefit is payable under
this Article, then said pre-retirement death benefit shall be paid to the Participant's surviving
Spouse in accordance with this Section, in which case the surviving Spouse will be considered
the Pre-Retirement Beneficiary under the Plan. For purposes of this Section 8.09(e), the term
"surviving" shall mean surviving the Participant by at least thirty-two (32) days. If there is no
Pre-Retirement Beneficiary (i.e., a designated Pre-Retirement Beneficiary or surviving Spouse)
to whom the terminated vested Auto A death benefit is payable, then a lump sum payment equal
to fifty percent (50%) of the Actuarial Equivalent of the Participant's vested Accrued Benefit, if
• any, shall be paid to the Participant's estate in lieu of the lifetime monthly benefit which would
otherwise be payable to a Pre-Retirement Beneficiary. Such lump sum Actuarial Equivalent
shall be determined as if the Participant had received a lump sum distribution of said benefit
under Section 7.05, calculated as of the date on which the payment is made, without reference to
the maximum cash-out limits of said Section, and using the assumptions set forth in Section
12.06.
(f) Calculation of Benefits. Benefits under this Section shall be calculated taking
into account only the Participant's Total Credited Service and Final Average Earnings (where
applicable) as of the date of his Termination of Employment with Adopting Employer, and the
applicable benefit formula in effect on the date of said Termination.
Section 8.10. Accrued Retirement Benefit.
•
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(a) Effective with respect to deaths occurring on or after July 1, 2015, the Employer •
may elect in the Adoption Agreement to provide a death benefit consisting of the Accrued
Benefit for one or more classes of Terminated Vested Participants. In such case, the Employer
shall designate the minimum service and other eligibility requirements a Terminated Vested
Participant must satisfy in order to be entitled to such benefit. Provided a Terminated Vested
Participant satisfies such requirements, then in the event that the Terminated Vested Participant
dies prior to the effective Retirement date,the Pre-Retirement Beneficiary may apply to receive a
lifetime monthly death benefit subject to the provisions of this subsection. Said benefit shall
commence on the first day of the month coinciding with or immediately following the date of the
Terminated Vested Participant's death. The monthly death benefit payable to the Participant's
Pre-Retirement Beneficiary shall be the Actuarial Equivalent of the Terminated Vested
Participant's Accrued Benefit, determined as of the date of the Participant's death, taking into •
account the Participant's Total Credited Service, Final Average Earnings, and the benefit formula
in effect as of the date of the Participant's Termination. Effective with respect to deaths
occurring on or after July 1, 2015, and except as otherwise provided in an Adopting Employer's
Adoption Agreement or Addendum, if there is no Primary or Secondary Pre-Retirement
Beneficiary to whom said pre-retirement death benefit is payable, said pre-retirement death
benefit shall be paid to the Participant's surviving Spouse in accordance with this subsection, in
which case the surviving Spouse will be considered the Pre-Retirement Beneficiary under the
Plan. For purposes of this subsection, the term "surviving" shall mean surviving the Participant
by at least thirty-two (32) days. If there is no Pre-Retirement Beneficiary to whom the benefit is
payable, then a lump sum payment equal to fifty percent (50%) of the Actuarial Equivalent of the
Participant's vested Accrued Benefit, if any, shall be paid to the Participant's estate in lieu of the •
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• lifetime monthly benefit which would otherwise be payable to a Pre-Retirement Beneficiary.
Such lump sum Actuarial Equivalent shall be determined as if the Participant had received a
lump sum distribution of said benefits under Section 7.05, calculated as of the date on which the
payment is made, without reference to the maximum cash-out limits of said Section, and using
the assumptions set forth in Section 12.06.
(b) The provisions of this subsection (b) were effective as of January 1, 2013 but
were superseded by the provisions of subsection (c) below effective January 1, 2014. The
Employer may elect in the Adoption Agreement to provide a death benefit consisting of the
Accrued Retirement Benefit for one or more classes of Terminated Participants. In such case,
the Employer shall designate the minimum Service and other eligibility requirements a
Terminated Participant must satisfy in order to be entitled to such benefit. Provided a
Terminated Participant satisfies such requirements, then in the event that the Terminated
Participant dies prior to the effective Retirement date, the Pre-Retirement Beneficiary may apply
to receive a lifetime monthly death benefit subject to the provisions of this subsection. Said
benefit shall commence on the first day of the month coinciding with or immediately following
the date of the Terminated Participant's death. The monthly death benefit payable to the
Participant's Pre-Retirement Beneficiary shall be the Actuarial Equivalent of the Terminated
Participant's death, taking into account the Participant's Total Credited Service, Final Average
Earnings, and the benefit formula in effect as of the date of the Participant's Termination.
(c) The provisions of this subsection (c) were effective as of January 1, 2014 but
were superseded by the provisions of subsection (a) effective July 1, 2015. The Employer may
elect in the Adoption Agreement to provide a death benefit consisting of the Accrued Benefit for
one or more classes of Terminated Participants. In such case, the Employer shall designate the
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minimum Service and other eligibility requirements a Terminated Participant must satisfy in •
order to be entitled to such benefit. Provided a Terminated Participant satisfies such
requirements, then in the event that the Terminated Participant dies prior to the effective
Retirement date, the Pre-Retirement Beneficiary may apply to receive a lifetime monthly death
benefit subject to the provisions of this subsection. Said benefit shall commence on the first day
of the month coinciding with or immediately following the date of the Terminated Participant's
death. The monthly death benefit payable to the Participant's Pre-Retirement Beneficiary shall
be the Actuarial Equivalent of the Terminated Participant's Accrued Benefit, determined as of the
date of the Participant's death, taking into account the Participant's Total Credited Service, Final
Average Earnings, and the benefit formula in effect as of the date of the Participant's
Termination.
Section 8.11. Designation of Terminated Vested Pre-Retirement Beneficiary. The
411
Primary and Secondary Pre-Retirement Beneficiary designated by the Participant to receive in-
service death benefits under Section 8.04 shall automatically be considered the Participant's
Primary and Secondary Pre-Retirement Beneficiary for purposes of payment of terminated
vested pre-retirement death benefits, if any, under the Employer's Plan. If the Participant
changes his beneficiary designation in accordance with Section 8.05, his designation under this
Section shall be considered changed as well to reflect the new designation. In the absence of a
designation by the Participant, or if there is no Primary or Secondary Pre-Retirement Beneficiary
to whom a terminated vested pre-retirement death benefit is payable upon the Participant's death,
then the terminated vested pre-retirement death benefit otherwise payable, if any, shall be paid to
the Participant's surviving Spouse in accordance with and subject to the applicable provisions of
this Article, in which case the surviving Spouse will be considered the Pre-Retirement •
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• Beneficiary under the Plan. For purposes of this Section, the term "surviving" shall mean
surviving the Participant by at least thirty-two (32) days. If there is no Pre-Retirement
Beneficiary to whom a death benefit is payable, the death benefit shall be payable to the
Participant's estate in accordance with and subject to the applicable provisions of this Article.
Section 8.12. Participant Death After Retirement Benefit Commencement. With
respect to retirement applications received by GMEBS on or after July 1, 2011, upon the death of
a Retired Participant subsequent to his Retirement, there shall be payable to the Participant's
designated Post-Retirement Beneficiary, a benefit to be determined as follows:
(a) If the Participant has elected a form of payment that does not permit designation
of a Post-Retirement Beneficiary (Option A), as provided in Article VII, or if he has elected a
form of payment that does permit such designation (Option B or C) and his designated Post-
IIIRetirement Beneficiary does not survive him, no further payment of any kind whatsoever shall
be made at the death of the Participant, except as provided in subsection (b)below.
(b) Except as otherwise provided in an Addendum to the Adopting Employer's
Adoption Agreement, in the event that a Retired Participant who has elected a form of payment
that does not permit designation of a Post-Retirement Beneficiary (Option A), as provided in
Article VII, dies after Retirement benefit payments have commenced but before the Retired
Participant has received at least thirty-six (36) monthly Retirement benefit payments, a one-time
lump sum death benefit shall become payable which shall be equal to the amount of the
Participant's initial Retirement benefit (determined as of the date such monthly Retirement
benefit commenced) multiplied by thirty-six (36); provided, however, that the total amount of
such lump-sum death benefit shall be reduced by the aggregate amount of Retirement benefits
• paid to such Retired Participant. The one-time lump sum death benefit shall be payable to the
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Retired Participant's surviving Spouse. In such case, the Participant's surviving Spouse shall be •
considered the designated beneficiary under the Plan for purposes of this subsection (b). In the
event that: (1) such Retired Participant does not have a Spouse at the time of the Retired
Participant's death; or (2) such Retired Participant does have a Spouse at the time of the Retired
Participant's death but such Spouse does not survive the Retired Participant by at least thirty-two
(32) days; or (3) such Retired Participant does have a Spouse at the time of the Retired
Participant's death but such Spouse does not within six (6) months following the Retired
Participant's death provide the Administrator with documentation which the Administrator
deems sufficient to verify that he or she was the Retired Participant's Spouse at the time of the
Retired Participant's death, the lump-sum death benefit described in this subsection 8.12(b) shall
be paid to the estate of the Retired Participant. The lump sum death benefit described in this
subsection 8.12(b) shall not be considered part of the standard benefit payment form (Option A) •
for purposes of determining actuarial equivalence. The lump sum death benefit paid pursuant to
this subsection 8.12(b) shall be included in determining the sum of all benefits paid to the
Participant for purposes of determining the amount of any refund of Employee Contributions
payable under Section 13.06. For purposes of this subsection, the term "surviving" shall mean
surviving the Retired Participant by at least thirty-two (32) days.
(c) If the Participant has elected a form of payment that permits designation of a Post-
Retirement Beneficiary (Option B or C) as provided in Article VII, and his designated Post-
Retirement Beneficiary survives him, benefits shall be payable to the Post-Retirement
Beneficiary as provided by the option elected, commencing the month following the Participant's
last benefit payment month.
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• ARTICLE IX.
TERMINATION BEFORE RETIREMENT; VESTING
Section 9.01. Vesting Requirement for Deferred Retirement Benefit. An Employer
may establish different vesting requirements for different classes of Eligible Employees in the
Adoption Agreement. A Participant whose employment is terminated for any reason other than
death or Retirement shall be entitled to a Vested right in the Accrued Benefit only if the
Participant meets the Qualifications for a deferred Vested Retirement benefit specified in the
Adoption Agreement. Payment of such Vested Retirement Benefit shall commence on the first
day of the month in which the effective Retirement Date occurs and shall be payable on the first
day of each month thereafter during the lifetime of the Participant, unless the Participant elects
an optional form of benefit payment under Article VII. The amount of such Monthly Retirement
Benefit shall be computed in the manner prescribed for Normal or Early Retirement in Article VI,
as applicable, but based upon the Participant's Final Average Earnings (if applicable) and Total
Credited Service up to the Participant's date of Termination of Employment with the Adopting
Employer. Unless otherwise provided in the Adoption Agreement or in an Addendum thereto, in
the event that an Eligible Regular Employee terminates employment with an Adopting Employer
and returns to service with such Adopting Employer as an elected or appointed member of the
Governing Authority, the portion of the monthly benefit attributable to Credited Service as an
Eligible Regular Employee shall be computed based upon Credited Service as an Eligible
Regular Employee and the benefit formula in effect as of the latest termination of employment as
an Eligible Regular Employee. Likewise, in the event that an elected or appointed member of
the Governing Authority vacates such office and returns to service with the Adopting Employer
as an Eligible Regular Employee, the portion of the monthly benefit attributable to Credited
•
Service as an elected or appointed member of the Governing ernmg Authority shall be computed based
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•
upon Credited Service as an elected or appointed member of the Governing Authority and the •
benefit formula in effect as of such individual's latest vacation of such office. Notwithstanding
any other provision of the Plan to the contrary, if a Participant has satisfied the requirements for
Normal Retirement as of the date of his Termination, the Participant shall be one hundred
percent (100%)Vested in the Normal Retirement benefit.
Section 9.02. Termination of Tenure of Office Before Retirement. Unless
otherwise specified by the Employer in the Adoption Agreement, a Participant who is an elected
or appointed member of the Governing Authority or a Municipal Legal Officer, and who vacates
office for any reason other than death or Retirement shall be entitled to a Vested right in the
portion of his Accrued Benefit attributable to his Credited Service as an elected or appointed
member of the Governing Authority only if he meets the qualifications for a deferred Vested
benefit applicable to elected or appointed members of the Governing Authority and Municipal •
Legal Officers as specified in the Adoption Agreement. Unless otherwise specified in the
Employer's Adoption Agreement or Addendum thereto, if a Participant has Credited Service both
as an elected or appointed member of the Governing Authority or a Municipal Legal Officer and
as an Eligible Regular Employee of the Adopting Employer, the Participant's combined Total
Credited Service shall be taken into account in determining whether the Participant has satisfied
the minimum service requirements for vesting under the Plan and the minimum service
requirements for benefit eligibility under the Plan that are applicable to Eligible Regular
Employees, Municipal Legal Officers, and/or elected or appointed members of the Governing
Authority, as applicable.
Section 9.03. Immediate Vesting in Disability Retirement Benefit. If the Employer
elects in the Adoption Agreement to provide Disability benefits, and unless otherwise specified •
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• in the Adoption Agreement, a Participant who is Disabled and otherwise meets the Plan's
eligibility requirements for payment of a Disability Retirement Benefit shall be considered 100%
Vested in such benefit.
Section 9.04. Involuntary Termination Without Cause. Notwithstanding any more
restrictive vesting requirement imposed by the Employer in the Adoption Agreement, a
Participant whose employment is terminated involuntarily and without cause shall be entitled to
a Vested Benefit if he has completed five (5) years of Total Credited Service. For the purpose of
this condition, "cause" for dismissal shall mean negligence or inefficiency in performing the
duties of the position held, unfitness to perform assigned duties, insubordination, or misconduct
reflecting discredit on the Adopting Employer or upon the Governing Authority.
Section 9.05. Portability between Adopting Employers.
• (a) This Section applies to a Participant, other than an elected or appointed member
of the Governing Authority or Municipal Legal Officer, whose employment is terminated either
voluntarily or involuntarily after participation in the Plan, provided that with respect to a
Participant who terminates employment on or after January 1, 2015, such Participant has at least
one (1) year of Credited Service with the Employer. This one (1) year minimum shall not apply
with respect to a Participant,
(1) whose immediate prior employment was with another GMEBS Employer,
and under whose Plan in effect prior to January 1, 2015, the Participant was subject to a
waiting period and the Participant had satisfied such waiting period prior to his
Termination of Employment with such prior GMEBS Employer, or
(2) (A) who is not described in paragraph 9.05(a)(1) above, and whose
Employer's Plan contains an Addendum provision which was in effect prior to January 1,
•
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IB3184173.14
2015, which provides for a waiting period of less than one (1) year to commence •
participation in the Plan, and (B) who was employed with said Employer prior to
January 1, 2015 and satisfies such time limitation prior to Termination. With respect to
an Employee described in this paragraph 9.05(a)(2), this Section shall become applicable
to such Employee once he or she has satisfied such waiting period.
(b) Subject to any limitations or conditions contained in the Employer's Adoption
Agreement, in determining whether a Participant has satisfied the minimum service requirements
for Vesting and the minimum service requirements for Retirement and, for Participants who
terminate on or after September 26, 2014, pre-retirement death benefit eligibility, under the
Adoption Agreement of any GMEBS Adopting Employer, the Participant's Total Credited
Service with all other of the Participant's past and future Adopting Employers shall be taken into
account. In no event,however, shall service with one GMEBS Employer be used to calculate the •
benefit amount due the Participant from another GMEBS Employer. Prior to January 1, 2015,
except as otherwise provided in Section 4.02(c)(7) concerning immediate participation for
Participants who transfer from one GMEBS Adopting Employer to another, service with one
GMEBS Adopting Employer may not be used to establish participation in another Adopting
Employer's plan.
Section 9.06. Forfeiture of Benefits for Public-Employment Related Crimes,
Other Crimes.
(a) Benefits otherwise payable under the Plan shall be reduced or forfeited, as
applicable, upon final conviction for a public employment-related crime or final conviction for a
drug-related crime, in accordance with and subject to the applicable provisions of O.C.G.A.
§ 47-1-20 through 47-1-25 (a copy of which is included in the Appendix hereto). The terms of
•
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O.C.G.A. § 47-1-20 et seq. are incorporated herein by reference, including any future
amendments thereto.
(b) Survivor benefits or refunds otherwise payable to a person upon the death of a
Participant, Terminated Vested Participant, Retired Participant, or beneficiary shall be forfeited
if the person commits or conspires to commit murder or involuntary manslaughter against a
Participant, Terminated Vested Participant, Retired Participant, or beneficiary, in accordance
with and subject to the applicable provisions of O.C.G.A. § 47-1-24 (a copy of which is included
in the Appendix hereto). The terms of said code section are incorporated herein by reference,
including any future amendments thereto.
(c) If the Adopting Employer receives information that a Participant, Terminated
Vested Participant, Retired Participant or beneficiary has been convicted of any crime referenced
• in this Section which could potentially result in reduction or forfeiture of benefits, the Adopting
Employer shall notify the Administrator when it receives notice of such conviction.
Section 9.07. Forfeitures.
(a) Effective on and after January 1, 2014, if the Adopting Employer is unable to
determine the whereabouts of and payment information for any Participant, beneficiary or
surviving Spouse to whom a payment (e.g., a payment of Retirement, Disability or Death -
benefits) is due and provide such information to the Administrator within a period of six (6)
months from the later of: 1) the date on which the Administrator became aware that such
payment became due and payable, or 2)the date on which the Administrator became unable to
continue processing payments to the Participant, beneficiary or surviving Spouse due to changes
in his or her bank account, address, or other necessary information, the Administrator shall direct
that the payment and all remaining payments, if any, otherwise due to the Participant, beneficiary
•
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or surviving Spouse be cancelled on the records of the Plan and the amount thereof be treated as •
a forfeiture. Likewise, if the Adopting Employer is unable to determine the whereabouts of and
payment information for any Participant, surviving Spouse or estate, as applicable, to whom a
return of Employee Contributions due pursuant to Section 13.03 or Section 13.06 of this Master
Plan or pursuant to the Adopting Employer's Adoption Agreement or an Addendum thereto and
provide such information to the Administrator within a period of six (6) months from such
Participant's Termination of Employment (for non-vested Participants and for vested Participants
whose Employee Contributions are required to be refunded following termination provided a
refund to vested Participants does not result in forfeiture of Credited Service under the Plan), a
vested Participant's request for a return of contributions, or, in a case of failure to exhaust, the
date of a Participant's death, the Administrator shall direct that the return of Employee
Contributions otherwise due to the Participant, surviving Spouse or estate, as applicable, be •
cancelled on the records of the Plan and the amount thereof be treated as a forfeiture and placed
in the Employer's GMEBS Trust Fund.
(b) In the event that a payment (e.g., a return of Employee Contributions, or a
payment of Retirement, Disability or Death benefits) is due to the estate of a Participant or
beneficiary but the Administrator is unable to process such payment due to the absence of said
estate or lack of information needed to process payment to said estate, or, following the
expiration of six (6) months after the date on which the payment is issued the payment remains
outstanding, the Administrator shall so notify the Adopting Employer. The Adopting Employer
shall attempt to locate documents establishing such estate, a correct address or bank account or
other necessary information to process such payment. If the Adopting Employer is unable to
ascertain such documentation or information within six (6) months after receiving notice from
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• the Administrator of the outstanding payment, the Administrator shall direct that the payment be
cancelled on the records of the Plan and the amount thereof be treated as a forfeiture.
(c) Notwithstanding the foregoing provisions of this Section, if a Participant,
beneficiary or surviving Spouse whose whereabouts or payment information is unknown and
whose benefits are forfeited pursuant to this Section subsequently claims such benefits on the
Applicable Form, such forfeited benefit shall be reinstated and shall be paid retroactively,
without interest, to the date of the first cancelled payment. Likewise, if the executor of an estate
to which a payment was forfeited pursuant to paragraph (b) above subsequently claims such
benefits on the Applicable Form, the forfeited benefit shall be reinstated and shall be paid,
without interest, to the estate.
(d) Forfeitures arising from the inability to determine the whereabouts of or payment
information for a Participant, beneficiary or surviving Spouse, or arising from Termination of
Employment, withdrawal or any other reason may not be applied to increase the benefits any
individual would otherwise receive under the Plan. Forfeitures will remain Trust assets, and as
such, may be used to reduce an Adopting Employer's contribution.
(e) Notwithstanding any provision to the contrary, in the event that a return of
Employee Contributions otherwise due to a Participant, to a surviving Spouse, to the estate of a
Participant or of a Pre-Retirement or Post-Retirement Beneficiary, or to another individual or
estate, as applicable, is cancelled on the records of the Plan and the amount thereof is treated as a
forfeiture pursuant to this Section 9.07, including subsection (c), interest on such Employee
Contributions shall cease to accrue as of the date on which the Administrator directs that the
return of Employee Contributions be cancelled.
•
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ARTICLE X. •
DISTRIBUTION AND ROLLOVER RULES
Section 10.01. Distribution Rules Imposed by Federal Law. Notwithstanding any
provision of this Plan to the contrary, any distribution under the Plan shall be made in
accordance with Code Section 401(a)(9) and the Treasury regulations promulgated thereunder,
including the incidental benefit rules under Code Section 401(a)(9)(G), and shall comply with
the following rules:
(a) With respect to distributions under the Plan made for calendar years beginning on
or after January 1, 2002, the Plan shall apply the minimum distribution requirements of Code
Section 401(a)(9) in accordance with the Final Regulations under Code Section 401(a)(9) that
were issued on April 17, 2002, and June 15, 2004, notwithstanding any provision of the Plan to
the contrary. GMEBS is coordinating the compliance with the Final Regulations to comply with •
the good faith reasonable standard of Pension Protection Act of 2006 Section 823.
(b) A Participant's entire interest will be distributed, or begin to be distributed, to the
Participant no later than the Participant's required beginning date. For purposes of this Section,
"required beginning date" means April 1 of the calendar year following the later of (i)the
calendar year in which the Participant reaches age seventy and one-half (701/2), or (ii)the
calendar year in which the Participant Retires.
(c) If the Participant dies before distributions begin, the Participant's entire interest
will be distributed,or begin to be distributed,no later than as follows:
(1) If the Participant's surviving spouse is the Participant's sole designated
beneficiary, then distributions to the surviving spouse will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant died, or
•
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• by December 31 of the calendar year in which the Participant would have attained age
seventy and one-half (701/2), if later.
(2) If the Participant's surviving spouse is not the Participant's sole designated
beneficiary,then distributions to the designated beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the Participant died,
over the life of the designated beneficiary or over a period certain not exceeding:
(A) unless the annuity starting date is before the first distribution
calendar year, the life expectancy of the designated beneficiary determined using
the beneficiary's age as of the beneficiary's birthday in the calendar year
immediately following the calendar year of the Participant's death; or
(B) if the annuity starting date is before the first distribution calendar
year, the life expectancy of the designated beneficiary determined using the
beneficiary's age as of the beneficiary's birthday in the calendar year that contains
the annuity starting date.
(3) If there is no designated beneficiary as of September 30 of the year
following the year of the Participant's death, the Participant's entire interest will be
distributed by December 31 of the calendar year containing the fifth anniversary of the
Participant's death.
(4) If the Participant's surviving spouse is the Participant's sole designated
beneficiary and the surviving spouse dies after the Participant but before distributions to
the surviving spouse begin, this subsection (c), other than (c)(1), will apply as if the
surviving spouse were the Participant.
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If annuity payments irrevocably commence to the Participant before the Participant's •
required beginning date (or to the Participant's surviving spouse before the date distributions are
required to begin to the surviving spouse under this subsection (c)), the date distributions are
considered to begin is the date distributions actually commence.
(d) The amount that must be distributed on or before the Participant's required
beginning date (or, if the Participant dies before distributions begin, the date distributions are
required to begin under subsection (c)) is the payment that is required for one payment interval.
The second payment need not be made until the end of the next payment interval even if that
payment interval ends in the next calendar year. Payment intervals are the periods for which
payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the
Participant's benefit accruals as of the last day of the first distribution calendar year will be
included in the calculation of the amount of the annuity payments for payment intervals ending •
on or after the Participant's required beginning date.
(e) Any additional benefits accruing to the Participant in a calendar year after the first
distribution year will be distributed beginning with the first payment interval ending in the
calendar year immediately following the calendar year in which such amount accrues.
(f) If the Participant's interest is being distributed in the form of a joint and survivor
annuity for the joint lives of the Participant and a non-spouse beneficiary, annuity payments to be
made on or after the Participant's required beginning date to the designated beneficiary after the
Participant's death must not at any time exceed the applicable percentage of the annuity payment
for such period that would have been payable to the Participant using the applicable table set
forth in the Treasury Regulations. If the form of distribution combines a joint and survivor
annuity for the joint lives of the Participant and a non-spouse beneficiary and a period certain •
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• annuity, the requirement in the preceding sentence will apply to annuity payments to be made to
the designated beneficiary after the expiration of the period certain.
(g) Unless the Participant's spouse is the sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain for an annuity distribution
commencing during the Participant's lifetime may not exceed the applicable distribution period
for the Participant under applicable simple life table set forth in the Treasury Regulations for the
calendar year that contains the annuity starting date. If the annuity starting date precedes the
year in which the Participant reaches age seventy (70), the applicable distribution period for the
Participant is the distribution period for age seventy(70) under the applicable single life table as
set forth in the Treasury Regulations plus the excess of seventy (70) over the age of the
Participant as of the Participant's birthday in the year that contains the annuity starting date. If
• the Participant's spouse is the Participant's sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain may not exceed the longer
of the Participant's applicable distribution period, as determined under this Section, or the joint
life and last survivor expectancy of the Participant and the Participant's spouse as determined
under the applicable joint life table set forth in the Treasury Regulations, using the Participant's
and spouse's attained ages as of the Participant's and spouse's birthdays in the calendar year that
contains the annuity starting date.
(h) A Participant or beneficiary eligible for benefits from an Adopting Employer's
Plan must complete and return the Applicable Form provided for such purpose in order to
commence distribution of benefits. Any excise tax under Code Section 4974 that results from a
failure to timely apply for distribution of benefits under the Plan shall be the responsibility of the
Participant or beneficiary, as applicable.
4111
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Section 10.02. Rollover of Distributions. Notwithstanding any provision of the Plan •
to the contrary that would otherwise limit a Distributee's election under this Section, a
Distributee may elect, at the time and in the manner prescribed by the Administrator, to have any
portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified
by the Distributee in a Direct Rollover. The following definitions shall apply to this Section:
(a) An "Eligible Rollover Distribution" is any distribution of all or any portion of the
balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not
include: (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 (10) years or more; (ii) any distribution to the extent such
distribution is required under Code Section 401(a)(9); (iii)the portion of any distribution that is •
not includible in gross income; or(iv) any other distributions 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 402(g) or 415. Effective January 1,
2002, an Eligible Rollover Distribution also includes a distribution to a surviving spouse.
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 to a (1) traditional
individual retirement account or annuity described in IRC 408(a) or(b) (a"traditional IRA")or a
Roth individual retirement account or annuity described in IRC 408(A) (a "Roth IRA"), or (2)to
a qualified defined contribution defined benefit or annuity plan described in IRC 401(a) or
403(a) or to an annuity contract described in IRC 403(b), if such plan or contract provides for
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separate accounting for amounts so transferred (including interest thereon), including separately
accounting for the portion of such distribution which is includible in gross income and the
portion of such distribution which is not so includible.
(b) An "Eligible Retirement Plan" is any one of the following that accepts the
Distributee's Eligible Rollover Distribution: (i) a traditional IRA; (ii) a Roth IRA; (iii) an
annuity plan described in Code Section 403(a); or (iv) a qualified defined benefit or defined
contribution plan described in Code Section 401(a). Effective for distributions made after
December 31, 2001, an Eligible Retirement Plan will also include an eligible deferred
compensation plan described in Code Section 457(b) which is maintained by an eligible
employer described in Code Section 457(e)(1)(A) that agrees to separately account for amounts
transferred into that plan; or an annuity plan described in Code Section 403(b); and effective for
• distributions made after December 31, 2007, an Eligible Retirement Plan will also include a Roth
IRA described in Code Section 408A. The portion of an Eligible Rollover Distribution that is
not includible in gross income may be transferred only to an individual retirement account or
individual retirement annuity described in Code Sections 408(a) or 408(b), a qualified defined
contribution plan described in Code Section 401(a), a qualified plan described in Code Section
403(a), or on or after January 1, 2007, to a qualified defined benefit plan described in Code
Section 401(a) or an annuity contract described in Code Section 403(b), that agrees to separately
account for amounts so transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of such distribution which is not
so includible.
(c) A "Distributee" includes an employee or former employee. A Distributee also
includes the employee's or former employee's surviving spouse. Effective January 1, 2008, a
•
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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 of the distribution 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.
(d) A "Direct Rollover" is a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.
(e) Notwithstanding subsection(a), if an Eligible Rollover Distribution is expected to
total less than Two Hundred Dollars ($200) during a year, such payment may not be directly
rolled over.
Section 10.03. Acceptance of Eligible Rollover Distributions. To the extent
permitted by the applicable provisions of the Code and regulations issued thereunder, for the
•
purpose of purchasing Credited Service or repaying withdrawn Employee Contributions
(including any Contributions made to purchase prior service credit, as applicable) as permitted
under the Plan and the Employer's Adoption Agreement (i) a Participant may contribute to the
Plan as a rollover contribution a qualified rollover amount from a qualified plan under Code
Section 401(a), an annuity plan under Code Section 403(a), an individual retirement account or
annuity under Code Sections 408(a) or (b), a governmental deferred compensation plan under
Code Section 457(b), or a tax-sheltered annuity under Code Section 403(b), that is includible in
taxable income; or (ii) effective as of June 24, 2009, a Participant may make a direct rollover to
the Plan of a qualified rollover amount from a qualified plan under Code Section 401(a)
consisting of after-tax employee contributions that is not includible in taxable income provided
that such amount will be separately accounted for under the Plan; provided, further, that the
•
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• Administrator, in its discretion, determines that the contribution satisfies all applicable
requirements of the Code. Such rollovers will be allowed to the extent permitted by law, subject
to any conditions,proofs, or acceptance the Administrator deems appropriate.
Section 10.04. Acceptance of Trustee-to-Trustee Transfers. A Participant may make
a direct trustee-to-trustee transfer from another Code Section 401(a) qualified retirement plan, a
governmental deferred compensation plan under Code Section 457(b), or a tax-sheltered annuity
under Code Section 403(b) for the purchase of permissive service credit, as defined in Code
Section 415(n)(3)(A) and as permitted under the Plan and the Employer's Adoption Agreement,
or for a repayment to which Code Section 415 does not apply by reason of Code Section
415(k)(3), as permitted under the Plan and the Employer's Adoption Agreement. Such transfers
will be allowed to the extent permitted by law, subject to any conditions, proofs, or acceptance
the Administrator deems appropriate.
ARTICLE XI.
LIMITATIONS ON BENEFITS
Section 11.01. Effective Date. The Plan shall be administered so as to comply with
this Article for limitation years beginning on or after July 1, 2007, except as otherwise provided
herein.
Section 11.02. Limitation on Annual Benefit.
(a) In no event shall the aggregate annual benefit for a calendar year (the "limitation
year")provided under this Plan and all other defined benefit plans (without regard to whether the
plan has terminated) of the Employer for any Participant exceed an amount equal to One
Hundred Sixty Thousand Dollars ($160,000) as adjusted pursuant to Code Section 415(d)(1)(A).
•
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IB3184173.14
(b) Adjustment for Benefits Commencing Before Age 62. •
(1) If the retirement income benefit under the Plan begins before age sixty-
two (62) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan
does not have an immediately commencing straight life annuity payable at both age sixty-
two (62) and the age of benefit commencement, the One Hundred Sixty Thousand Dollar
($160,000) limitation for the Participant's retirement income benefit commencement date
is the annual amount of a benefit payable in the form of a straight life annuity
commencing at the Participant's retirement income benefit commencement date that is the
actuarial equivalent of the One Hundred Sixty Thousand Dollar ($160,000) limitation
(adjusted under subsection (h) for years of participation less than ten (10), if required)
with actuarial equivalence computed using a five percent (5%) interest rate assumption
and the applicable mortality table for the retirement income benefit commencement date •
(expressing the Participant's age based on completed calendar months as of the retirement
income benefit commencement date).
(2) If the retirement income benefit under the Plan begins before age sixty-
two (62) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan
has an immediately commencing straight life annuity payable at both age sixty-two (62)
and the age of benefit commencement, the One Hundred Sixty Thousand Dollar
($160,000) limitation for the Participant's retirement income benefit commencement date
is the lesser of the limitation determined under paragraph (1) and the One Hundred Sixty
Thousand Dollar ($160,000) limitation (adjusted under subsection (h) for years of
participation less than ten (10), if required) multiplied by the ratio of the annual amount
of the immediately commencing straight life annuity under the Plan at the Participant's •
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retirement income benefit commencement date to the annual amount of the immediately
commencing straight life annuity under the Plan at age sixty-two (62), both determined
without applying the limitations of this Article.
(3) If the retirement income benefit under the Plan begins before age sixty-
two (62) and occurs in a limitation year that begins on or after January 1, 2002, but prior
to July 1, 2007, the determination as to whether the One Hundred Sixty Thousand Dollars
($160,000) limitation has been satisfied shall be made by reducing the One Hundred
Sixty Thousand Dollars ($160,000) limitation so that such limitation (as so reduced)
equals an annual benefit (beginning when such retirement income benefit begins) which
is equivalent to a One Hundred Sixty Thousand Dollars ($160,000) annual benefit
beginning at age sixty-two (62). The age reduced dollar limit shall be the lesser of the
• equivalent amount computed using the actuarial table in Section 12.01 of the Plan for
actuarial equivalence for early retirement benefits, and the amount computed using five
percent (5%) interest and the applicable mortality table (to the extent that the mortality
decrement is used prior to age sixty-two (62)).
(c) Adjustment for Benefits Commencing After Age 65.
(1) If the retirement income benefit under the Plan begins after age sixty-five
(65) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan does
not have an immediately commencing straight life annuity payable at both age sixty-five
(65) and the age of benefit commencement, the One Hundred Sixty Thousand Dollar
($160,000) limitation at the Participant's retirement income benefit commencement date
is the annual amount of a benefit payable in the form of a straight life annuity
• commencing at the Participant's retirement income benefit commencement date that is the
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actuarial equivalent of the One Hundred Sixty Thousand Dollar ($160,000) limitation •
(adjusted under subsection (h) for years of participation less than ten (10), if required),
with actuarial equivalence computed using a five percent (5%) interest rate assumption
and the applicable mortality table for that retirement income benefit commencement date
as specified in Section 11.02(e)(2)(B) of the Plan (expressing the Participant's age based
on completed calendar months as of the retirement income benefit commencement date).
(2) If the retirement income benefit under the Plan begins after age sixty-five
(65) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan has
an immediately commencing straight life annuity payable at both age sixty-five(65) and
the age of benefit commencement, the One Hundred Sixty Thousand Dollar ($160,000)
limitation at the Participant's retirement income benefit commencement date is the lesser
of the limitation determined under paragraph (1) and the One Hundred Sixty Thousand •
Dollar ($160,000) limitation (adjusted under subsection (h) for years of participation less
than ten (10), if required) multiplied by the ratio of the annual amount of the adjusted
immediately commencing straight life annuity under the Plan at the Participant's
retirement income benefit commencement date to the annual amount of the adjusted
immediately commencing straight life annuity under the Plan at age sixty-five (65), both
determined without applying the limitations of this Article. For this purpose, the adjusted
immediately commencing straight life annuity under the Plan at the Participant's
retirement income benefit commencement date is the annual amount of such annuity
payable to the Participant, computed disregarding the Participant's accruals after age
sixty-five (65) but including actuarial adjustments even if those actuarial adjustments are
used to offset accruals; and the adjusted immediately commencing straight life annuity •
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• under the Plan at age sixty-five (65) is the annual amount of such annuity that would be
payable under the Plan to a hypothetical Participant who is age sixty-five (65) and has the
same accrued benefit as the Participant.
(3) If the retirement income benefit under the Plan begins after age sixty-five
(65) and occurs in a limitation year that begins on or after January 1, 2002, but prior to
July 1, 2007, the One Hundred Sixty Thousand Dollar ($160,000) limitation for the
Participant's retirement income benefit commencement date is the annual amount of a
benefit payable in the form of a straight life annuity commencing at the Participant's
retirement income benefit commencement date that is the actuarial equivalent of the One
Hundred Sixty Thousand Dollar ($160,000) limitation (adjusted under subsection (h) for
years of participation less than ten (10), if required) with actuarial equivalence computed
using whichever of the following produces the smaller annual amount: (i) the actuarial
increase factors specified in Section 12.05 of the Plan; or (ii) a five percent (5%) interest
rate assumption and the applicable mortality table as specified in Section 11.02(e)(2)(B)
of the Plan.
(d) Notwithstanding the other requirements of this section, in adjusting the dollar
limitation for the Participant's retirement income benefit commencement date under subsection
(b) or(c), as applicable, no adjustment shall be made to the One Hundred Sixty Thousand Dollar
($160,000) limitation to reflect the probability of a Participant's death between the retirement
income benefit commencement date and age sixty-two (62), or between age sixty-five (65) and
the retirement income benefit commencement date, as applicable, if benefits are not forfeited
upon the death of the Participant prior to the retirement income benefit commencement. To the
extent benefits are forfeited upon death before the retirement income benefit commencement
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date, such an adjustment shall be made. Furthermore, notwithstanding the requirements of this
section, the adjustments provided for in subsections (b)and(c) shall not apply(i) 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, or(ii) in the case of pre-
retirement disability benefits or pre-retirement death benefits.
(e) Adjustment for Form Not Subject to Code Section 417(e)(3). For distributions
made in any form other than a straight life annuity or a qualified joint and survivor annuity to
which Code Section 417(e)(3) does not apply [generally, a monthly benefit], such benefit shall
be adjusted to a straight life annuity, beginning at the same age, which is the actuarial equivalent
of such benefit.
(1) For limitation years beginning before July 1, 2007, the actuarially
equivalent straight life annuity for purposes of applying the limitations under Code
4111
Section 415(b) to benefits is equal to the greater of(or the reduced limitation applicable
at the retirement income benefit commencement date which is the "lesser of' when
adjusted in accordance with the following assumptions):
(A) the equivalent annual benefit computed using the interest rate and
mortality table, or tabular factor, specified in Article XII of the Plan for actuarial
equivalence for the particular form of benefit payable, and
(B) the equivalent annual benefit computed using a five percent (5%)
interest rate assumption and the applicable mortality table described in Internal
Revenue Service guidance (the mortality table specified in Revenue Ruling 98-1
prior to 2003 or Revenue Ruling 2001-62 on or after January 1, 2003).
•
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IB3184173.14
• (2) For limitation years beginning on or after July 1, 2007, the actuarially
equivalent straight life annuity is equal to the greater of (or the reduced limitation
applicable at the retirement income benefit commencement 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 retirement income benefit
commencement date as the Participant's form of benefit; and
(B) the annual amount of the straight life annuity commencing at the
same retirement income benefit commencement date that has the same actuarial
present value as the Participant's form of benefit, computed using a five percent
(5%) interest rate assumption and the applicable mortality table described in
• Internal Revenue Service guidance (the mortality table specified in Revenue
Ruling 2001-62 on or after January 1, 2003, or Internal Revenue Service Notice
2008-85 for years after December 31, 2008).
(f) Adjustment for Form Subject to Code Section 417(e)(3). As required by final
Treasury Regulations, for distributions made in any form to which Code Section 417(e)(3)
applies [generally, a lump sum benefit], such benefit shall be adjusted to a straight life annuity,
beginning at the same age, which is the actuarially equivalent straight life annuity benefit which
is the greatest of (or the reduced limitation applicable at the retirement income benefit
commencement date which is the "least of' when adjusted in accordance with the following
assumptions):
(1) The annual amount of the straight life annuity commencing at the
retirement income benefit commencement date that has the same actuarial present value
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as the particular form of benefit payable, computed using the interest rate and mortality •
table, or tabular factor, specified in Article XII of the Plan for actuarial experience;
(2) The annual amount of the straight life annuity commencing at the
retirement income benefit commencement date that has the same actuarial present value
as the particular form of benefit payable, computed using a five and five-tenths percent
(5.5%) interest assumption (or the applicable statutory interest assumption) and (i) for
years prior to January 1, 2009, the applicable mortality tables for the distribution under
Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in Revenue
Ruling 98-1 prior to 2003 and 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
(3) the annual amount of the straight life annuity commencing at the
retirement income benefit commencement 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 Internal Revenue Service guidance (the 30-year Treasury rate prior
to January 1, 2008, using the rate in effect for the month prior to retirement; on and after
January 1, 2008, using the rate in effect for the first day of the plan year with a one-year
stabilization period; and on and after January 1, 2015, using the rate in effect for the
September prior to the plan year of distribution with a one-year stabilization period) and
(i) for years prior to January 1, 2009, the applicable mortality tables for the distribution
under Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in •
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• Revenue Ruling 98-1 prior to 2003 and 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 one and five-one-
hundredths (1.05). However, effective for benefits commencing during limitation years
beginning after December 31, 2008, this paragraph (3) does not apply to a Plan
maintained by an eligible employer as defined under Code Section
408(p)(2)(C)(i) (generally, an Employer that had no more than one hundred (100)
employees who received at least Five Thousand Dollars ($5,000) of compensation from
the Employer during the preceding year).
• (g) Limitations on benefits under this Article shall not apply where the total annual
benefits payable to a Participant under this Plan and all other qualified defined benefit plans
(whether or not terminated) of the Employer do not exceed Ten Thousand Dollars ($10,000) in
the aggregate. This minimum limitation is not applicable for a Participant whose Employer
maintains or has maintained a defined contribution plan in which such Participant participated.
(h) The Ten Thousand Dollars ($10,000) minimum limitation, if provided, must be
reduced where a Participant has less than ten (10) years of service with the Employer at the time
the Participant begins to receive retirement benefits under the Plan, and the maximum dollar
limitation must be reduced where a Participant has less than ten (10) years of participation when
retirement benefits under the Plan commence. These adjustments are made by multiplying the
applicable limitations by the appropriate fraction:
•
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I\3184173.14
(A) For the Ten Thousand Dollars ($10,000) minimum limitation — •
Years of service with the employer as of and including,the current limitation year
divided by ten(10); or
(B) For the maximum dollar limitation — Years of participation with
the employer as of and including, the current limitation year divided by ten (10).
(i) For purposes of applying the limits under Code Section 415(b) (Limit), the
following will apply:
(1) prior to any limitation year beginning on or after July 1, 2007,adjustments
under Section 6.05, will be taken into consideration when determining a Participant's
applicable Limit;
(2) for any limitation year beginning on or after July 1, 2007:
(A) a Participant's applicable Limit will be applied to the Participant's •
annual benefit in the Participant's first limitation year without regard to any
automatic cost of living adjustments under Section 6.05;
(B) to the extent the Participant's benefit equals or exceeds the Limit,
the Participant will no longer be eligible for cost of living adjustments under
Section 6.05 until such time as the benefit plus the accumulated adjustments
under Section 6.05 are less than the Limit;
(C) thereafter, in any subsequent limitation year, a Participant's annual
benefit, including any automatic cost of living increases under Section 6.05, shall
be tested under the then applicable benefit Limit including any adjustment to the
Code Section 415(b)(1)(A) dollar limit under Code Section 415(d), and the
regulations thereunder; but •
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• (D) 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. If the form of benefit without regard to the automatic
benefit increase feature is not a straight life annuity, then the preceding provisions
are applied by reducing the Code Section 415(b) limit applicable at the annuity
starting date 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 death benefits under the form of benefit.
Section 11.03. Limitation on Annual Additions.
(a) Effective beginning on and after January 1, 2002, to the extent required under
Code Section 415(c), in no event shall the "annual addition" for a Participant for any calendar
year(the "limitation year"), exceed the lesser of:
(1) Forty Thousand Dollars ($40,000)), as adjusted for increases in the cost of
living under Code Section 415(d); or
(2) One hundred percent (100%)) of the "compensation" of such Participant
received from an Adopting Employer during the limitation year.
(b) For purposes of this Section, "compensation" means all of a Participant's wages as
defined in Code Section 3401(a) for the purposes of income tax withholding at the source but
determined without regard to any rules 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)); provided, however, for limitation years beginning
• after December 31, 1997, compensation shall also include the amount of any elective deferrals,
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P3184173.14
as defined in Code Section 402(g)(3), and any amount contributed or deferred by the Adopting •
Employer at the election of the Employee and which is not includable in the gross income of the
Employee by reason of Code Section 125 or 457, but shall exclude Employee contributions
picked up under Code Section 414(h)(2). For limitations years beginning after December 31,
2000, compensation shall also include any amount deferred by the Adopting Employer at the
election of the Employee which is not includable in the gross income of the Employee by reason
of Code Section 132(f)(4). For limitation years beginning on or after July 1, 2007, the following
types of payments, if paid by the later of (i)two and one-half (21/2) months following a
Participant's Termination of Employment, or (ii)the last day of the limitation year that includes
the Participant's Termination of Employment, will be included as compensation for purposes of
this Section: payments that, absent a Termination of Employment, would have been paid to the
Participant while he or she continued in employment and that are regular compensation for
services rendered, and payments of accrued bona fide sick, vacation, or other leave, but only if
the Participant would have been able to use the leave if employment had continued. Any
payments not described in the preceding sentence are not considered compensation if paid after
severance from employment, even if they are paid within two and one-half (21/2) 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 414(u)(1)) shall be treated as receiving
compensation from the Employer during such period of qualified military service equal to (i)the •
- 112 -
I\3184173.14
• 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). For limitation years
beginning on or after July 1, 2007, a Participant's compensation for purposes of this Section shall
not exceed the annual limit under Code Section 401(a)(17).
(c) For purposes of this Section, "annual addition" means the sum of the following
amounts credited to a Participant's accounts for the limitation year under this Plan and any other
• plan maintained by an Employer: (i) employer contributions; (ii) employee contributions;
(iii) forfeitures; and (iv) allocations under a simplified employee pension plan. Amounts
allocated after March 31, 1984, to an individual medical account, as defined in Code Section
415(1)(2), which is part of a pension or annuity plan maintained by an Employer are treated as
annual additions to a defined contribution plan. Also, amounts derived from contributions paid
or accrued after December 31, 1985, in taxable years ending after such date, which are
attributable to post-retirement medical benefits, allocated to the separate account of a key
employee, as defined in Code Section 419A(d)(3), under a welfare benefit fund, as defined in
Code Section 419(e), maintained by an Employer are treated as an annual additions to a defined
contribution plan.
(d) If the annual addition for a Participant under the Plan would be greater than the
annual addition for such Participant as limited by subsection (a), then the excess shall be
•
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corrected as permitted under the IRS Employee Plans Compliance Resolution System (currently •
set forth in Revenue Procedure 2008-50).
Section 11.04. Code Section 415(e) Limits. For limitation years beginning on and
after January 1, 2000, any benefit limitations applied pursuant to Code Section 415(e) shall no
longer apply for employees or former employees who are Participants with an accrued benefit
under the Plan on or after January 1, 2000.
Section 11.05. Limitations on Service Credit Purchases.
(a) Notwithstanding any other provision of law to the contrary, if an Adopting
Employer adopts an Addendum to the Adoption Agreement that provides for service credit
purchases, the Administrator may modify a request by a Participant to make an Employee
Contribution if the amount of the Contribution would exceed the limits provided in Code Section
415 by using the following methods: •
(1) If the law requires a lump sum payment for the purchase of service credit,
the Administrator may establish a periodic payment plan for the Participant to avoid a
contribution in excess of the limits under Code Sections 415(c) or 415(n).
(2) If payment pursuant to paragraph (1) will not avoid a contribution in
excess of the limits imposed by Code Section 415(c), the Administrator may either
reduce the Employee Contribution to an amount within the limits of that section or refuse
the Participant's Contribution.
(b) Effective for any permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a Participant makes one (1) or more contributions to
purchase permissive service credit under an Adopting Employer's Plan, then the requirements of
this Section will be treated as met only if: •
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• (1) the requirements of Code Section 415(b) are met, determined by treating
the accrued benefit derived from all such Contributions as an annual benefit for purposes
of Code Section 415(b), or
(2) the requirements of Code Section 415(c) are met, determined by treating
all such Contributions as annual additions for purposes of Code Section 415(c).
(3) For purposes of applying paragraph (1), the Plan will not fail to meet the
reduced limit under Code Section 415(b)(2)(C) solely by reason of this paragraph(3), and
for purposes of applying paragraph (2), the Plan will not fail to meet the percentage
limitation under Code Section 415(c)(1)(B) solely by reason of this subsection(b).
(4) For purposes of this subsection (b) the term "permissive service credit"
means service credit—
• (A) recognized by the Plan for purposes of calculating a Participant's
benefit under the Plan,
(B) which such Participant has not received under the Plan, and
(C) which such Participant may receive only by making a voluntary
additional contribution, in an amount determined under the Plan, which does not
exceed the amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation years beginning
after December 31, 1997, such term may include service credit for periods for which there is no
performance of service, and, notwithstanding subparagraph (B), may include service credited in
order to provide an increased benefit for service credit which a Participant is receiving under the
Plan.
(5) The Plan will fail to meet the requirements of this subsection (b)if
- 115 -
1\3184173.14
(A) more than five (5) years of nonqualified service credit are taken •
into account for purposes of this paragraph(5), or
(B) any nonqualified service credit is taken into account under this
subsection (b) before the Participant has at least five (5) years of participation
under the Plan.
(6) For purposes of paragraph (5), effective for permissive service credit
contributions made in limitation years beginning after December 31, 1997, the term
"nonqualified service credit" means permissive service credit other than that allowed with
respect to—
(A) service (including parental, medical, sabbatical, and similar leave)
as an employee of the Government of the United States, any State or political
subdivision thereof, or any agency or instrumentality of any of the foregoing •
(other than military service or service for credit which was obtained as a result of
a repayment described in Code Section 415(k)(3)),
(B) service (including parental, medical, sabbatical, and similar leave)
as an employee (other than as an employee described in subparagraph (A)) of an
education organization described in Code Section 170(b)(1)(A)(ii)which is a
public, private, or sectarian school which provides elementary or secondary
education (through grade 12), or a comparable level of education, as determined
under the applicable law of the jurisdiction in which the service was performed,
(C) service as an employee of an association of employees who are
described in subparagraph (A), or
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• (D) military service (other than qualified military service under Code
Section 414(u))recognized by such governmental plan.
In the case of service described in subparagraph (A), (B), or (C), such service will be
nonqualified service if recognition of such service would cause a Participant to receive a
retirement benefit for the same service under more than one Plan.
(7) In the case of a trustee-to-trustee transfer after December 31, 2001, to
which Code Section 403(b)(13)(A) or 457(e)(17)(A) applies (without regard to whether
the transfer is made between plans maintained by the same employer)—
(A) the limitations of paragraph (6) will not apply in determining
whether the transfer is for the purchase of permissive service credit, and
(B) the distribution rules applicable under federal law to the Plan will
apply to such amounts and any benefits attributable to such amounts.
(8) For an eligible Participant, the limitation of Code Section 415(c)(1) shall
not be applied to reduce the amount of permissive service credit which may be purchased
to an amount less than the amount which was allowed to be purchased under the terms of
the Plan as in effect on August 5, 1997. For purposes of this paragraph (8), an eligible
Participant is an individual who first became a Participant in the Plan before January 1,
1998.
Section 11.06. Interpretation of this Article.
(a) The annual additions and annual benefit of a Participant shall be adjusted pursuant
to this Article so as to produce the maximum annual benefit and maximum annual additions
permissible for such Participant.
•
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(b) For purposes of this Section and subject to Code Section 415(h), all defined •
benefit plans of an Adopting Employer, whether or not terminated, are to be treated as a single
defined benefit plan, and all defined contribution plans of an Adopting Employer are to be
treated as a single defined contribution plan. However, Adopting Employers shall be considered
as separate Employers in accordance with State law.
ARTICLE XII.
ACTUARIAL EQUIVALENT CONVERSION TABLES
Section 12.01. Early Retirement Reduction Table. Unless otherwise elected in the
Adoption Agreement or an Addendum thereto, the following early retirement reduction table is
to be used:
Number of Years Before Percentage of
Normal Retirement* Normal Retirement Benefit
0 1.000 •
1 .933
2 .867
3 .800
4 .733
5 .667
6 .633
7 .600
8 .567
9 .533
10 .500
*Interpolate for whole months.
Section 12.02. Option B Tables.
(a) Participant Same Age Or Older — The following table is to be used for a
Participant who is the same age or older than his Beneficiary:
•
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IB3184173.14
• Participant Age--
Beneficiary
Beneficiary Age Contingent Annuity Factor
100% 75% 50% 25%
0 .833 .870 .909 .952
1 .826 .864 .905 .950
2 .819 .857 .900 .947
3 .811 .851 .896 .945
4 .804 .845 .891 .943
5 .797 .839 .887 .940
6 .790 .833 .882 .938
7 .783 .828 .878 .935
8 .776 .822 .874 .933
9 .769 .816 .870 .930
10 .763 .811 .866 .928
11 .757 .806 .861 .926
12 .751 .800 .858 .923
13 .745 .795 .854 .921
14 .739 .791 .850 .919
15 .733 .786 .846 .917
16 .728 .781 .843 .915
17 .723 .777 .839 .913
18 .718 .772 .836 .911
19 .713 .768 .833 .909
20 .708 .764 .830 .907
21 or more * * * *
*Factor for twenty (20) year age difference minus extrapolation factor below times number of
years in excess of twenty(20)that Participant's age exceeds his Beneficiary's age.
Contingent
Annuity Extrapolation
Percentage Factor
100% .005
75% .004
50% .003
25% .002
(b) Participant Younger - The following table is to be used for a Participant who is
younger than his Beneficiary:
Beneficiary Age-
Participant Age Contingent Annuity Factor
• 100% 75% 50% 25%
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Beneficiary Age- •
Participant Age Contingent Annuity Factor
1 .841 .876 .914 .955
2 .848 .882 .918 .957
3 .856 .888 .922 .960
4 .863 .894 .926 .962
5 .870 .899 .931 .964
6 .877 .905 .935 .966
7 .885 .911 .939 .968
8 .892 .916 .943 .970
9 .898 .922 .947 .973
10 .905 .927 .950 .974
11 .912 .932 .954 .976
12 .918 .937 .957 .978
13 .924 .942 .960 .980
14 .930 .946 .964 .981
15 .935 .951 .967 .983
16 .941 .955 .969 .984
17 .945 .959 .972 .986
18 .950 .962 .974 .987
19 .955 .966 .977 .988
20 .959 .969 .979 .989
21 or more .960 .970 .980 .990 •
Section 12.03. Option C Table.
Period Factor
5 Years .973
10 Years .911
15 Years .842
20 Years .780
Section 12.04. Life Annuity Factors to be Used in Computing Actuarial Reserve
Death Benefit.
Factor Ag Factor
21 12.5773 43 11.4236
22 12.5567 44 11.3274
23 12.5337 45 11.2264
24 12.5082 46 11.1207
25 12.4804 47 11.0102
26 12.4501 48 10.8952
27 12.4170 49 10.7755 •
28 12.3809 50 10.6509
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• Age Factor Age Factor
29 12.3416 51 10.5213
30 12.2994 52 10.3869
31 12.2541 53 10.2479
32 12.2056 54 10.1041
33 12.1535 55 9.9552
34 12.0976 56 9.8010
35 12.0383 57 9.6415
36 11.9754 58 9.4769
37 11.9088 59 9.3076
38 11.8384 60 9.1331
39 11.7640 61 8.9537
40 11.6855 62 8.7698
41 11.6026 63 8.5818
42 11.5154 64 8.3903
65 8.1958
Section 12.05. Late Retirement Actuarial Increase Factors.
Current Age Factor
65 1.0000
66 1.1317
67 1.2850
68 1.4645
69 1.6755
70 1.9246
71 2.2204
72 2.5734
73 2.9967
74 3.5073
75 4.1274
Figure factor using years and months. Divide difference between next highest age factor and age
factor lower, by twelve (12), then multiply by number of months. Add this onto age for years
factor to arrive at correct factor. (Round off to 4 decimals). Note: If normal retirement age
differs from sixty-five (65), factors must be supplied by Actuary.
Section 12.06. Other Annuity Forms. Conversion factors for other annuity forms
shall be computed by an enrolled Actuary on an actuarially equivalent basis assuming that the
Participant is retiring at age sixty-five (65) and using the RP 2000 Mortality Table set forward
• two (2) years for males and one (1) year for females and with interest of seven and
seventy-five
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one hundredths percent (7.75%), regardless of the actual age and sex of any Participant or •
Beneficiary. If appropriate, such factors may vary by the difference between the Participant's
age and the beneficiary's age. The value of Retirement benefits received by a Participant for
purposes of Section 6.06 shall be determined using the RP 2000 Mortality Table set forward two
(2) years for males and one (1) year for females and with interest of seven and seventy-five one
hundredths percent (7.75%). Notwithstanding the foregoing, the UP 1984 Mortality Table
without age setback and with interest of eight percent (8.0%) was applied for the purpose of
computing other annuity forms and calculating the value of Retirement benefits received by a
Participant for purposes of Section 6.06 on or after January 1, 2013 and prior to September 26,
2014.
Section 12.07. Lump Sum Payments. Effective January 1, 2001, a single sum
distribution of benefits payable under Section 7.05, or upon plan termination, or if required for
compliance with Code Section 401(a)(9), shall be computed on the basis of the actual age of the
Participant and/or Beneficiary at the time of distribution and under the following actuarial
assumptions:
(a) Interest: The applicable interest rate established by the Internal Revenue Service
under Code Section 417(e)(3) and accompanying regulations, without regard to updates under
the Pension Protection Act of 2006, as in effect for the month of September preceding the
calendar year during which the distribution is paid.
(b) Mortality: The applicable mortality table established by the Internal Revenue
Service pursuant to IRC Section 417(e)(3) and accompanying regulations, without regard to
updates under the Pension Protection Act of 2006.
•
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• (c) Age at Which Payments Begin: The greater of the Normal Retirement Date or the
age at the time of distribution to the Participant and/or Beneficiary.
ARTICLE XIII.
CONTRIBUTIONS
Section 13.01. Adopting Employer Contributions. The Adopting Employer shall
make the necessary Contributions to fund the Plan. The amount of these Contributions shall be
based upon the actuarial assumptions adopted by the Board of Trustees, the benefits provided in
the Plan, and the number of Participants and their respective ages, Earnings, and lengths of
Creditable Service and such other factors as the Board of Trustees shall deem appropriate to
assure proper funding of the Plan. Contributions by the Adopting Employer shall be applied as
necessary to assure the payment of Accrued Benefits to Participants and Beneficiaries.
Employer Contributions received by GMEBS by the last day of any month shall accrue Interest
• from the first day of the following month.
Section 13.02. Employee Contributions. Participants or certain classes of Participants
may be required to make Contributions to the Plan as specified in the Adoption Agreement.
Unless otherwise specified by the Adopting Employer, Employee Contributions shall accrue
interest at the same rate and in the same manner as Employer Contributions. When elected by
the Adopting Employer to be picked up, the Adopting Employer shall pick up and pay
contributions in accordance with Code Section 414(h)(2) as follows:
(1) The contributions, although designated as Employee contributions, shall
be paid by that Adopting Employer in lieu of contributions by the Employee as elected by
the Adopting Employer in the Adoption Agreement, which shall be effective on a
prospective basis and constitute written formal action to implement the pick-up, and
•
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IB3184173.14
(2) The Employee must not be given the option, on or after the effective date •
of the pick-up, to have a cash or deferred election right (within the meaning of Treasury
Regulation Section 1.401(k)-1(a)(3)) with respect to designated Employee contributions,
which includes not having the option of receiving the amounts directly instead of having
them paid to the Plan.
Section 13.03. Withdrawal of Employee Contributions.
(a) Unless otherwise specified in the Adoption Agreement, if a non-vested
Participant's employment is terminated for any reason other than death, he shall request that his
Employee Contributions plus interest, if any, be withdrawn.
(b) Unless otherwise specified in the Adoption Agreement, if a vested Participant's
employment is terminated for any reason other than death or Retirement, he may request that his
Employee Contributions (including any Contributions made to purchase prior service credit)plus •
interest be withdrawn, unless he chooses to claim his vested benefit, in which case his Employee
Contributions shall not be withdrawn.
(c) Upon the Participant's termination, the Pension Committee shall provide notice to
the Participant of his opportunity to withdraw his Employee Contributions (including any
Contributions made to purchase prior service credit, if permitted under the Adoption Agreement
or any Addendum thereto), and the Participant shall have sixty (60) days after receipt of such
notice to submit a request for withdrawal on an Applicable Form provided for that purpose.
Failure to make such a request within this sixty (60) day period shall result in the forfeiture of a
vested Participant's right to request withdrawal upon termination and shall result in forfeiture of
a non-vested Participant's right to the accrual of further interest. Unless otherwise specified in
the Adoption Agreement or any Addendum thereto, upon withdrawal of Employee Contributions
•
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• (including any Contributions made to purchase prior service credit, if permitted under the
Adoption Agreement or any Addendum thereto) pursuant to this Section, the Participant shall
forfeit for himself, his heirs and assigns all his rights, title, and interest in the Plan, except as
provided in subsection (d) below. Employee Contributions shall be returned to the Participant
within ninety (90) days of the receipt of the Participant's request. A Participant may not
withdraw his Employee Contributions (including any Contributions made to purchase prior
service credit, if permitted under the Adoption Agreement or any Addendum thereto) as long as
he remains in the employment of the Adopting Employer and he may not borrow against
Employee Contributions (including any Contributions made to purchase prior service credit, if
permitted under the Adoption Agreement or any Addendum thereto) at any time. A partial
withdrawal of Employee Contributions is not permitted. Unless otherwise provided in the
Adoption Agreement or any Addendum thereto, if a Participant who has made both mandatory
Employee Contributions and Contributions to purchase prior service credit withdraws any of
such Contributions, all mandatory Employee Contributions and Contributions to purchase prior
service credit shall be withdrawn.
(d) Except as otherwise provided in the Employer's Adoption Agreement or any
Addendum thereto, if a Participant withdraws Employee Contributions (including any
Contributions made to purchase prior service credit, if permitted under the Adoption Agreement
or any Addendum thereto) in accordance with this Section, and if such Participant later resumes
employment with the Adopting Employer in an Eligible Employee class, then any service credit
or benefit amount forfeited by virtue of the withdrawal may be reinstated upon the Participant's
reemployment with the Adopting Employer, provided: (1) the Participant repays within six (6)
months following the reemployment date and prior to Termination of Employment with the
411
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Adopting Employer all amounts previously withdrawn plus interest at the assumed actuarial rate •
of return for the GMEBS Retirement Fund established by the Board as of date of repayment,
compounded annually from the date of return of contributions through the date of repayment;
and(2) provided the Participant satisfied the break in service rules, as applicable. Repayment of
Employee Contributions (including any Contributions made to purchase prior service credit)
under this subsection shall be made in a single lump sum, by a rollover or transfer of pre-tax
funds described in Sections 10.03 and 10.04 of this Plan, a lump sum payment of after-tax funds,
after-tax payroll deductions, or any other method established by the Board, subject to any
limitations included in the Adoption Agreement or any Addendum thereto. With respect to the
repayment of Withdrawn Employee Contributions prior to September 26, 2014, in the event that
withdrawal of Contributions made to purchase prior service credit is permitted by an Employer's
Adoption Agreement or Addendum, repayment will be permitted only to the extent permitted by
the Adoption Agreement or Addendum, and in accordance with any re-purchase or other
repayment restrictions specified in the Adoption Agreement or Addendum.
(e) For purposes of this Section, the amount of "interest" shall be determined as of
the date that the withdrawal under this Section is made, and the amount of interest shall comply
with any applicable provisions of Section 4(i)(10)(B)(i) of the Age Discrimination in
Employment Act("ADEA").
Section 13.04. Cessation of Contributions Without Penalty. The Employer may
provide in the Adoption Agreement that Participants who have met certain retirement benefit
eligibility requirements shall no longer be required to make contributions to the Plan. Effective
on or after October 1, 2016, Participants who are receiving an In-Service Distribution or who are
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• otherwise receiving Retirement benefits while employed with the Adopting Employer shall not
be required to make contributions to the Plan.
Section 13.05. Continued Contributions During Leave of Absence. Subject to the
applicable limits of Code Section 415, if the terms of an authorized leave of absence permit the
Participant to continue accumulating Credited Service during said leave of absence, the
Participant shall be required to continue making Employee Contributions in the same amount
and at the same rate as immediately prior to the commencement of the leave of absence.
Section 13.06. Return of Contributions Upon Failure to Exhaust.
(a) Death of a Retired Participant. If a Retired Participant elects the Option A form
of benefit payment, and if upon the death of the Participant the sum of all benefits paid to the
Participant does not equal or exceed the amount of the Participant's Employee Contributions plus
interest posted thereon, then a lump sum payment in the amount of the difference, less any
amounts paid to the Retired Participant's surviving Spouse or to the Retired Participant's estate
pursuant to Section 8.12, shall be paid as follows: (1) in the event the Participant dies on or after
January 1, 2014, to the Retired Participant's designated beneficiary as defined in this subsection
(a), or if there is no such designated beneficiary, to the Retired Participant's estate, or (2) in the
event the Participant dies on or after January 1, 2013 and prior to January 1, 2014, to the Retired
Participant's estate. In the event that 1) a Retired Participant elects retirement benefit payment
Option B or C, 2) the Post-Retirement Beneficiary predeceases the Participant, and 3)upon the
death of the Retired Participant, the sum of all benefits paid does not equal or exceed the amount
of the Participant's Employee Contributions plus interest posted thereon, then a lump sum
payment in the amount of the difference shall be paid as follows: (A) in the event the Retired
Participant dies on or after January 1, 2014, to the Retired Participant's designated beneficiary as
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1\3184173.14
defined in this subsection (a), or if there is no such designated beneficiary, to the Participant's •
estate, or (B) in the event the Retired Participant dies on or after January 1, 2013 and prior to
January 1, 2014, to the Retired Participant's estate. In the event that 1) a Retired Participant
elects retirement benefit payment Option B or C, 2)the Post-Retirement Beneficiary survives the
Retired Participant and dies after such Beneficiary has begun receiving survivor benefit
payments, and 3) the sum of all benefits paid does not equal or exceed the amount of the
Participant's Employee contributions plus interest posted thereon, said lump sum payment shall
be paid as follows: (A) in the event the Post-Retirement Beneficiary dies on or after September
26, 2014, to the Post-Retirement Beneficiary's designated beneficiary as defined in this
subsection (a) or, if there is no such designated beneficiary, to the Post-Retirement Beneficiary's
estate, or (B) in the event the Post-Retirement Beneficiary dies on or after January 1, 2013 and
prior to September 26, 2014, to the Post-Retirement Beneficiary's estate. For purposes of this •
subsection, the term "designated beneficiary" shall mean the surviving Spouse of the Retired
Participant or Post-Retirement Beneficiary, as applicable, and the term "surviving" shall mean
surviving the Retired Participant or Post-Retirement Beneficiary, as applicable, by at least thirty-
two (32) days.
(b) In-Service Death of Participant Before Satisfying Pre-Retirement Death Benefit
Eligibility Requirements; Death of Terminated Vested Participant Where No Terminated Vested
Death Benefit Is Payable. If a Participant dies in the Service of an Adopting Employer before he
satisfies the eligibility requirements for an in-service death benefit, his Employee Contributions
plus interest posted thereon, if any, shall be paid to the Participant's designated beneficiary as
defined in this subsection (b), or if there is no such designated beneficiary, to the Participant's
estate. If a Terminated Vested Participant dies before Retirement and the Plan does not provide
•
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I\3184173.14
• for Terminated Vested death benefits to be payable upon the death of such Participant, his
Employee Contributions plus interest posted thereon, if any, shall be paid to the Participant's
designated beneficiary as defined in this subsection (b), or if there is no such designated
beneficiary, to the Participant's estate. For purposes of this subsection, the term "designated
beneficiary" shall mean the surviving Spouse of the Participant and the term "surviving" shall
mean surviving the Participant by at least thirty-two (32) days.
(c) Death of a Participant or Terminated Vested Participant After Satisfying Pre-
Retirement Death Benefit Eligibility Requirements. The following provision shall apply in the
event that a Participant or Terminated Vested Participant who has satisfied the eligibility
requirements for a pre-retirement death benefit dies before Retirement, and payments are made
to a Pre-Retirement Beneficiary under the Plan. In the event the sum of all pre-retirement
benefits paid to a Pre-Retirement Beneficiary(ies) by virtue of the death of a Participant or
Ir
Terminated Participant, as applicable, does not equal or exceed the amount of the Participant's or
Terminated Participant's Employee Contributions plus interest posted thereon, a lump sum
payment in the amount of the difference shall be paid to the Pre-Retirement Beneficiary's
designated beneficiary as defined in this subsection (c), or if there is no such designated
beneficiary, to the estate of the Pre-Retirement Beneficiary (or the designated beneficiary or
estate of the last Pre-Retirement Beneficiary receiving payment, as applicable with respect to
Plans that permit payment to multiple Pre-Retirement Beneficiaries). For purposes of this
subsection, the term "designated beneficiary" shall mean the surviving Spouse of the Pre-
Retirement Beneficiary and the term "surviving" shall mean surviving the Pre-Retirement
Beneficiary by at least thirty-two (32) days.
•
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(d) For purposes of this Section, the amount of"interest posted" shall be determined •
as of the date that the lump sum payment payable under this Section is distributed, and the
amount of interest posted shall comply with any applicable provisions of
Section 4(i)(10)(B)(i) of the Age Discrimination in Employment Act("ADEA").
ARTICLE XIV.
PENSION COMMITTEE
Section 14.01. Creation and Composition. There shall be a Pension Committee for
each Adopting Employer. Unless otherwise specified in the Adoption Agreement, the Pension
Committee shall be composed of the following:
For Municipal Corporations:
(a) City Clerk and City Manager.
(b) Two (2)Employee representatives appointed by the Governing Authority.
•
(c) Three (3) appointed members of the Governing Authority.
For Other Adopting Employers:
(a) Executive Director.
(b) Two (2)Employee representatives appointed by the Governing Authority.
(c) Four(4) appointed members of the Governing Authority.
Section 14.02. Responsibilities. The Pension Committee shall have the following
responsibilities:
(a) In its dealings with GMEBS or its duly appointed representatives, the Pension
Committee shall:
(1) Assure that accurate and complete information is furnished to GMEBS
with respect to eligibility for participation, Total Credited Service, Earnings, and Final
Average Earnings of Eligible Employees, including elected or appointed members of the •
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I\3184173.14
• Governing Authority and Municipal Legal Officers if they are designated as Eligible
Employees in the Adoption Agreement.
(2) Assure the collection and remittance to GMEBS of all required
Contributions (including Employee Contributions,if applicable).
(3) Collect, and furnish to GMEBS, in accordance with its rules and
regulations, all reports, forms, and other records required or necessary to administer the
Plan, including but not limited to completed applications for participation (if applicable),
employee elections to participate (if participation is optional for a particular class),
employee census reports reflecting information necessary to complete the annual plan
valuation, completed pre-retirement beneficiary designation forms, completed leave of
absence reports, and completed retirement applications (including disability retirement
• applications, if the Adopting Employer has elected in its Adoption Agreement to provide
disability retirement benefits).
(4) Provide reasonable prior notice to GMEBS of any amendments that the
Adopting Employer intends to make to the Adoption Agreement.
(5) Notify GMEBS of the termination of Participating Employees, and, if they
are permitted in the Adoption Agreement to participate in the Plan, the vacation of office
by elected or appointed members of the Governing Authority and Municipal Legal
Officers. Said notification should indicate whether the Employee has been involuntarily
terminated without cause (see Section 9.04 concerning 5-year vesting for Employees
involuntarily terminated without cause).
(6) Notify GMEBS when the Adopting Employer learns that an Eligible
Employee, Participant, Terminated Vested Participant, Retired Participant or Beneficiary
•
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has been convicted of a public employment-related crime or other crime which could •
result in a reduction or forfeiture of benefits (see Section 9.06).
(7) If the Adopting Employer has elected in the Adoption Agreement to
provide disability retirement benefits, notify GMEBS of determinations made by the
Pension Committee with respect to disability (see Section 2.23(b)) or continuation of
disability(see Section 6.06(e)).
(8) Notify GMEBS when the Adopting Employer learns of the death of an
Eligible Employee, Participant, Terminated Vested Participant, Retired Participant, or
Beneficiary.
(b) In dealing with those persons participating or eligible to participate in the Plan,
the Pension Committee shall:
(1) Be responsible for the enrollment of Eligible Employees, including elected •
or appointed members of the Governing Authority and Municipal Legal Officers if they
are included as Eligible Employees in the Adoption Agreement.
(2) Handle distribution of all reports, forms, or other plan-related materials to
Participants, including but not limited to plan summary booklets and annual participant
statements.
(3) Handle disputes between the Adopting Employer and Participants in all
matters regarding the Plan and notify GMEBS of same.
(4) Handle and distribute as necessary any notices of eligibility, benefits,
available options, and any other notices required by this Plan, Contract, or rules and
regulations of GMEBS.
•
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• (5) Address Employee inquiries concerning eligibility for participation in the
Plan, enrollment, eligibility for retirement, disability, and/or death benefits, benefit
payment options, and other terms, conditions, and features of the Plan.
(c) The Pension Committee is not authorized to interpret the Master Plan document,
or matters of State and federal law as they relate to interpretation of the Master Plan document.
These matters are reserved for the sole discretion of the Board.
Section 14.03. Secretary. The Adopting Employer shall designate in the Adoption
Agreement a Pension Committee Secretary who shall have full authority to represent the Pension
Committee in all communications with GMEBS and the Adopting Employer's Employees,
including elected or appointed members of the Governing Authority and Municipal Legal
Officers.
Section 14.04. Legal Assistance. The City Attorney or other attorney appointed by the
•
Governing Authority shall furnish legal advice to the Pension Committee with respect to the Plan
and the Committee's assigned responsibilities hereunder.
Section 14.05. Plan Representative. The Adopting Employer shall designate in the
Adoption Agreement an individual to serve as Plan Representative. The Plan Representative
shall have full authority to represent the Governing Authority in all communications with
GMEBS and the Adopting Employer's Employees. The Pension Committee Secretary may serve
as the Plan Representative.
ARTICLE XV.
BOARD OF TRUSTEES
Section 15.01. Definitions. As used in this Article, "Act" refers to the Act of the
General Assembly creating the Board of Trustees of the Georgia Municipal Employees Benefit
•
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System (O.C.G.A. § 47-5-1 et seq., a copy of which is included in the Appendix hereto), as •
amended.
Section 15.02. Powers. The powers of the Board of Trustees as fixed by the Act are
hereby incorporated as part of the Plan. The Adopting Employer agrees that, in the
administration of the Plan, it will comply with all rules and regulations adopted by the Board of
Trustees under its authority as granted by the Act.
Section 15.03. Composition and Election. The composition of the Board of Trustees
and the election of its members shall be as provided by the Act and as may be provided in the
bylaws of the Board of Trustees.
Section 15.04. Officers. The election of officers by the Board of Trustees shall be
conducted as may be prescribed by the Act and as may be provided in the bylaws of the Board of
Trustees. •
Section 15.05. Notice of Elections. The Board of Trustees shall provide through its
bylaws for the giving of notice of elections, notice of any vacancy on the Board, the method or
manner in which votes may be cast, and any other matter necessary or incident to the election of
members of the Board. The Board may also provide for a proxy vote, and may determine how,
when, and in what manner voting by proxy may be had in accordance with the Act and as may be
provided in the bylaws of the Board of Trustees.
Section 15.06. Voting. Each Adopting Employer shall be entitled to vote in any
election or other matter placed before the membership as provided in the bylaws of the Board of
Trustees.
Section 15.07. Voting Representative for the Adopting Employer. The Pension
Committee Secretary or other designated representative of the Pension Committee shall be the
•
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• official representative of the Adopting Employer to cast the Adopting Employer's vote in any
election of members of the Board of Trustees and in any other matters which the membership has
the authority and responsibility for resolving, unless the Adopting Employer notifies GMEBS to
the contrary in writing.
Section 15.08. Qualified Public Accountant. The Administrator may engage on
behalf of all Participants an independent qualified public accountant to conduct such an
examination of any financial statements of the Plan, and of other books and records of the Plan,
as the qualified public accountant may deem necessary to enable him to form an opinion as to
whether the financial statements and schedules required to be included in the annual report of the
Plan are presented fairly in conformity with generally accepted accounting principles as
applicable to a governmental plan, applied on a basis consistent with that of the preceding Plan
Year and who shall perform such other services for the Plan as the Administrator may require.
•
Section 15.09. Fiduciary Insurance. The Board of Trustees may purchase fiduciary
liability insurance for any of its fiduciaries, or for itself, to cover liability or losses occurring by
reason of the act or omission of a fiduciary.
ARTICLE XVI.
GMEBS TRUST AGREEMENT
Section 16.01. General Provisions. All contributions under the Plan shall be
transferred to the Trust to be held, managed, invested, and distributed as part of the Trust Fund
by the Board in accordance with the provisions of the Plan and GMEBS Trust Agreement. All
benefits under the Plan shall be distributed solely from the Trust Fund. The Board shall
distribute the corpus and income of the Trust Fund to the Participants and their Beneficiaries in
accordance with applicable state and federal law and the Plan. At no time prior to the satisfaction
• of all liabilities with respect to Participants and their Beneficiaries shall anypart of the corpus rpus or
- 135 -
IB3184173.14
income be used for, or diverted to, purposes other than the exclusive benefit of the Participants •
and their beneficiaries.
Section 16.02. Group Trust Participation.
(a) If the investment is otherwise a permitted investment under Chapters 5 and 20 of
Title 47 of the O.C.G.A., the Board may, unless otherwise restricted by law, transfer all or any
portion of the assets of the Trust to a collective or common group trust, as permitted under
Revenue Ruling 81-100, as modified by Revenue Rulings 2004-67 and 2011-1 (or subsequent
guidance), that is operated or maintained exclusively for the commingling and collective
investment of monies, and in such case the group trust agreement shall be deemed adopted as
part of the GMEBS Defined Benefit Retirement Plan Trust Agreement without further action by
the Board.
(b) The separate account maintained by the group trust for an Adopting Employer's •
Plan pursuant to subsection(a) above shall not be used for, or diverted to, any purpose other than
for the exclusive benefit of the Participants and beneficiaries of the Adopting Employer's Plan,
subject to the provisions in Article XVIII of the GMEBS Master Plan relating to the distribution
of excess assets in the event of a plan termination.
(c) For purposes of valuation, the value of the separate account maintained by the
group trust for an Adopting Employer's Plan shall be the fair market value of the portion of the
group trust held for the Adopting Employer's Plan, determined in accordance with generally
recognized valuation procedures.
ARTICLE XVII.
CLAIMS AND LITIGATION
Section 17.01. Disputes. In the event of disagreement between a Participant and the
g
Ado tin Employer with respect to any rights, claims, or responsibilities under the Plan which •
Adopting P
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• cannot be resolved by the Pension Committee as provided under Article XV, the Participant may
make an appeal regarding such rights, claims, or responsibilities to the Governing Authority. In
the event that any such rights, claims, or responsibilities result in a suit or other legal action by a
Participant or Beneficiary, such action shall be defended in the same manner as other suits
against the Adopting Employer. Any legal action on behalf of the Adopting Employer with
regard to the Plan shall be first authorized by the Governing Authority and shall be conducted in
the manner prescribed by the Governing Authority. GMEBS shall have no responsibility to
defend or pursue legal action arising under the Plan.
Section 17.02. Disputes involving Federal or State Law Compliance. In the event
there is a dispute involving federal or state law compliance, between a Participant or Beneficiary
and the Governing Authority or the Trustees, or between an Adopting Employer and the Trustees,
GMEBS is a necessary party to any such dispute, or suit, settlement, or release arising therefrom.
•
Section 17.03. Failure to Act. GMEBS shall not be responsible for the failure of the
Adopting Employers to perform any of their obligations under the Plan, including the duty to
remit payments to GMEBS, to provide necessary records concerning Participants and their
Earnings,to GMEBS, or to perform any other functions required of the Adopting Employers by
applicable law, the Master Plan, the Adoption Agreement (including any Addendum to the
Adoption Agreement, if applicable), the GMEBS Trust Agreement, or by the rules and
regulations of GMEBS. To the extent permitted under state and federal law, each Adopting
Employer shall indemnify and hold GMEBS harmless for any failure to pay, delay in payment or
other errors in processing benefits pursuant to this Plan due to the Adopting Employer's failure to
perform its obligations under the Plan or provide accurate data to GMEBS for the purpose of
administering the Plan.
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ARTICLE XVIII. •
AMENDMENT AND TERMINATION
Section 18.01. Amendment of the Plan by an Adopting Employer. The Governing
Authority shall have the right at any time, and from time to time, to amend, in whole or in part,
any or all of its elections in the Adoption Agreement; provided, however, that no such
amendment shall:
(a) Reduce the previously Accrued Benefit of any Participant or Beneficiary; or,
(b) Authorize or permit any part of the Trust Fund held by the Board to be diverted to
purposes other than for the exclusive benefit of Participants and their Beneficiaries; or,
(c) Operate to deprive any Participant or Beneficiary of any rights or benefits
irrevocably Vested in him under the Plan prior to such amendment, except that the Governing
Authority may make any and all changes or modifications to the Adoption Agreement necessary •
to qualify the Plan or to keep the Plan qualified under the Internal Revenue Code and the
regulations thereunder, or any amendment thereto; or,
(d) Become effective until approved by the Administrator. In order to be approved
by the Administrator, any amendment must comply with all applicable state and federal laws and
the Master Plan. If the Administrator does not approve an amendment, the Administrator shall
continue to administer the Plan as if such amendment had not been made.
In no event may an Adopting Employer amend the Master Plan or the GMEBS Trust
Agreement.
Section 18.02. Amendment of Plan by GMEBS.
(a) It is the intent of the Board that the Master Plan, Adoption Agreement form and
Addendum form (collectively referred to for purposes of this Section 18.02 as "Plan") shall be
and remain qualified for tax purposes under the Code. The Administrator shall timely submit the •
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• Plan for approval under the Code as necessary, and all expenses incident thereto shall be borne
by the GMEBS Investment Fund.
(b) GMEBS will maintain a record of the Participating Employers, and GMEBS will
make reasonable and diligent efforts to ensure that Adopting Employers have actually received
and are aware of all Plan amendments and that such Adopting Employers adopt new documents
when necessary. The provisions of this subsection shall supersede other provisions of the Plan to
the extent those other provisions are inconsistent.
(c) The Board or the Practitioner, as directed by the Board, hereby reserves the right
to amend the Plan without the consent of the Adopting Employers or of Participants (or any
Beneficiaries thereof) to make desired changes in the design of the Plan. A true copy of the
resolution of the Board approving such amendment shall be delivered to the Administrator and
the Adopting Employers. The Plan shall be amended in the manner and effective as of the date
•
set forth in such resolution, and the Adopting Employers, Employees, Participants, Beneficiaries,
the Administrator, and all others having any interest under the Plan shall be bound thereby.
(d) On and after February 17, 2005, the Practitioner shall have the authority to advise
and prepare amendments to the Plan, for approval by the Board, on behalf of all Adopting
Employers, including those Adopting Employers who have adopted the Plan prior to the
January 1, 2013, restatement of the Plan, for changes in the Code, the regulations thereunder,
revenue rulings, other statements published by Internal Revenue Service, including model,
sample, or other required good faith amendments (but only if their adoption will not cause such
Plan to be individually designed), and for corrections of prior approved plans. These
amendments shall be applied to all Adopting Employers. Employer notice and signature
requirements have been met for all Adopting Employers before the effective date of February 17,
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2005. In any event, any amendment prepared by the Practitioner and approved by the Board will •
be provided by the Administrator to Adopting Employers.
(e) Notwithstanding the foregoing paragraphs (c) and (d), effective on or after
January 1, 2016, for any Adopting Employer as of either:
(1) the date the Internal Revenue Service requires the Adopting Employer to
file Form 5300 as an individually designed plan as a result of an amendment by the
Adopting Employer to incorporate a type of Plan not allowable in a volume submitter
plan, or
(2) as of the date the Plan is otherwise considered an individually designed
plan due to the nature and extent of the amendments,
such Adopting Employer shall execute a resolution to adopt any amendments that are approved
by the Board after the date under subparagraph (1) or (2) above, as applicable, within the earlier •
of(i) ninety (90) days after such Board approval, or (ii) if applicable, the remedial amendment
period under Code Section 401(b) as applicable to governmental plans. If the Adopting
Employer is required to obtain a determination letter for any reason in order to maintain reliance
on the advisory letter, the Practitioner's authority to amend the Plan on behalf of the Adopting
Employer is conditioned on the Plan receiving a favorable determination letter.
Section 18.03. Termination by Adopting Employer.
(a) The Adopting Employer expects the Plan to be continued indefinitely but, of
necessity, reserves the right to terminate its Plan and Contributions thereunder at any time by
action of the Governing Authority, subject to the Administrator's approval. Such termination
shall be accomplished by the adoption of an ordinance or resolution (as applicable) by the
Governing Authority terminating the Plan. Such ordinance or resolution (as applicable) shall
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• conform to the rules and regulations of the Board governing Plan termination to the extent they
are consistent with this provision.
(b) Upon full or partial termination or a complete discontinuance of Employer
contributions, all affected Eligible Employees shall be deemed to be Participants, and the
Accrued Benefits of such Participants shall be Vested to the extent funded required by federal
law. The Pension Committee shall notify Participants, Terminated Vested Participants, Retired
Participants, and Beneficiaries of the full termination of the Plan, and shall provide a copy of
such notice and the names and addresses of the persons notified to the Administrator.
(c) Upon termination, the Adopting Employer shall provide to the Administrator
current Participant information necessary to calculate Accrued Benefits. Upon receipt of such
information, the Administrator shall prepare a list of all the Adopting Employer's Participants,
• Retired Participants, Terminated Vested Participants, and Beneficiaries, showing for each the
present value of his Accrued Benefit, as determined by the GMEBS Actuary as of the date of
termination.
(d) The Administrator, in accordance with the Board's current rules and regulations,
and with generally accepted accounting practices, shall determine the value of the Adopting
Employer's Trust Fund as of the termination date. All mandatory Employee Contributions, if
any, plus interest, and all Contributions made to purchase service credit, if any, plus any
applicable interest, shall be paid from the Trust Fund to the Participants, to the extent of
available Trust Fund assets. The Administrator shall then deduct from the Trust Fund a
termination fee established by GMEBS for services provided in terminating the Plan. The
Administrator, pursuant to the Board's rules and regulations, shall then allocate the remaining
assets for distribution of the present value of Accrued Benefits in lump sums to the classes listed
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below. The benefits of each class shall be satisfied before proceeding to the next class. If at any •
time the remaining Plan assets would be insufficient to provide the present value of Accrued
Benefits for the class in question, the remaining assets shall be applied on a pro rata basis within
that class, and all subsequent classes shall receive no benefit. The pro rata allocation referred to
above will be determined based upon the comparative value of each class member's Accrued
Benefit (present value expressed in a lump sum) when measured against the lump sum present
value of Accrued Benefits for the class as a whole.
CLASS A— Retired Participants or Beneficiaries who are receiving payments as of the
termination date.
CLASS B— Participants delaying Retirement beyond the Normal Retirement Date.
CLASS C— Participants eligible for Early Retirement.
CLASS D— Other Participants, terminated or active, who have met the requirements •
for vesting as of the termination date.
CLASS E— All other Participants on a pro rata basis. Payment of benefits to Retired
Participants, Beneficiaries, and Participants by the Administrator as a
result of a Plan termination shall be limited solely to the assets available in
the Trust Fund.
(e) In its termination ordinance, the Governing Authority shall instruct the
Administrator as to the distribution of excess assets, if any, remaining after the satisfaction of
Accrued Benefits for the classes enumerated herein. In the absence of such instructions, any
excess assets shall be distributed to the Adopting Employer.
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• (f) Upon distribution of the assets as specified above, the Adoption Agreement,
Master Plan, and GMEBS Trust Agreement shall be regarded as terminated as to that Adopting
Employer and no Participant or Beneficiary shall have any further rights or claim herein.
Section 18.04. Amendment of the Plan to Transfer Assets; Termination of
Contract.
(a) The Adopting Employer may amend the Adoption Agreement by ordinance or
resolution (as applicable) so as to provide for the transfer of assets to a successor trustee and to
terminate the existing Contract between the Adopting Employer and the Board. Any such
ordinance or resolution shall comply with Section 18.01 and with the requirements of the rules
and regulations of the Board regarding amendment and transfer of Plan assets, to the extent they
are consistent with this Section.
(b) In addition to other requirements, such ordinance or resolution shall:
•
(1) Designate a new trustee or trustees to replace the Board;
(2) Establish a month-end termination date, which shall be used for purposes
of valuing the Adopting Employer's Trust Fund assets and which shall be fixed by the
Administrator, taking into account the time reasonably required to liquidate GMEBS
Retirement Trust Fund assets (if necessary) for purposes of the termination and transfer,
the impact of the termination on the financial integrity of the Retirement System, and the
time reasonably required for GMEBS and the terminating Employer to complete
necessary administrative tasks associated with the termination. The termination date will
be no earlier than forty-five (45) days after the Adopting Employer provides written
notice to the Administrator of its intent to terminate;
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(3) Provide that after the established termination date, GMEBS shall have no •
further responsibility or obligation to administer the terminating Employer's retirement
plan, except as otherwise agreed and provided for by GMEBS and the terminating
Employer in the ordinance or resolution;
(4) Provide that the value of assets of the Adopting Employer's Trust Fund as
of the established termination date shall be determined based upon the value of the
Adopting Employer's Trust Fund as reflected in the unaudited financial statements for the
GMEBS Retirement Trust Fund as of the established termination date, subject to
verification and reconciliation against the most recent GMEBS Retirement Trust Fund
audit coinciding with or following the termination date.
(5) Provide for the transfer of assets held in the Adopting Employer's Trust
Fund to the successor trustee as follows: •
(A) that no transfer shall take place until a successor Code Section
401(a) retirement plan and trust document have been adopted by the Adopting
Employer and furnished to GMEBS, together with a current IRS determination
letter or an opinion letter from an attorney confirming that the successor
retirement plan is tax qualified under Code Section 401(a);
(B) that as soon as reasonably practicable after the established
termination date, the Administrator will make an initial transfer to the successor
trustee of an amount to be determined by the Administrator in its sole discretion,
but in no event more than eighty-five percent (85%) of the value of the Adopting
Employer's Trust Fund, as reflected in the then most recently completed
unaudited monthly financial statement for the GMEBS Retirement Trust Fund;
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• and that prior to the completion of the initial transfer, the Administrator shall
deduct from the Adopting Employer's Trust Fund a termination fee established by
GMEBS for services provided in effecting the termination of the Adopting
Employer's participation in GMEBS and the transfer of assets to the successor
trustee;
(C) that as soon as reasonably practicable after completion of the
GMEBS Retirement Fund unaudited financial statement for the month including
the established termination date, the Administrator will make a second transfer to
the successor trustee in an amount equal to the remainder of the Adopting
Employer's Trust Fund assets, if any; and that in any event distribution of assets to
the successor trustee shall be completed within the time limits specified in the
GMEBS Trust Agreement;
•
(D) that after the established termination date, any funds remaining in
the Adopting Employer's Trust Fund shall not share in the gains or losses of the
GMEBS Retirement Trust Fund, notwithstanding any provision of the GMEBS
Master Plan or Trust Agreement to the contrary; and that any investment gains or
losses that would otherwise be credited to or debited from the Adopting
Employer's Trust Fund after the established termination date shall not be taken
into account. Rather, after the established termination date through completion of
the transfer of assets, any amount remaining in the Adopting Employer's Trust
Fund shall earn interest at the same rate as the GMEBS active cash management
account which shall be credited monthly until the transfer of assets is completed;
• and,
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(E) that if the audit of the GMEBS Retirement Trust Fund for the year •
including the established termination date reflects that the value of the Adopting
Employer's Trust Fund on the termination date was understated or overstated in
the unaudited financial statement relied upon, then GMEBS or the Adopting
Employer shall remit to the other the amount of any overpayment or
underpayment, unless said amount is less than One Thousand Dollars ($1,000).
Such remittance shall be made in a lump sum with interest. Said interest shall be
calculated at the same rate as the GMEBS active cash management account and
credited monthly as of the last day of each month following the established
termination date up until the date of the remittance.
(6) Provide that the assets of the Plan will continue to be held by the successor
trustee for the exclusive benefit of Participants and Beneficiaries. •
(7) State that the existing retirement rights of Employees, Participants, and
Beneficiaries shall not be impaired.
(8) Provide that upon completion of the transfer of assets, the GMEBS Board
of Trustees shall have no further fiduciary responsibility for investment of the Adopting
Employer's Trust Fund assets or payment of liabilities, and the Adopting Employer's
Contract and participation under the GMEBS Trust Agreement shall be considered
terminated.
(9) Provide that, to the extent permitted by federal, state or local law, the
Adopting Employer agrees to indemnify the Board of Trustees and the Administrator
from and against any loss, liability or claim arising out of the Employer's maintenance of
the Plan from and after the date of the final transfer of assets.
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• (10) Provide that the surviving plan must provide each Participant on whose
behalf Plan assets are transferred a benefit equal to or greater than the benefit he had
accrued, if any, immediately before transfer of assets.
Section 18.05. Involuntary Termination.
(a) The Board may involuntarily terminate the Plan as to an Adopting Employer in
the event of any of the following occurrences:
(1) Failure of the Employer to comply with the terms of the Master Plan,
Adoption Agreement, or GMEBS Trust Agreement including, but not limited to, failure
to pay required Contributions in a timely manner;
(2) Failure of the Adopting Employer to provide to GMEBS or respond to
requests from GMEBS for information necessary for GMEBS to administer the Plan;
• (3) Failure of the Adopting Employer to adequately fund the Plan in
accordance with the GMEBS funding policy, or to adopt or abide by a funding action
plan approved by the Board;
(4) Receipt of written notice from an Adopting Employer's Governing
Authority of its intent to discontinue further Contributions;
(5) Insistence by the Employer on enforcing an amendment to the Adoption
Agreement which the Board has disapproved; or
(6) Failure of the Adopting Employer to maintain qualification status under
Code Sections 401(a) and 414(d).
(b) The rights, benefits, and entitlements under the Plan of any Participant, including
those of his Beneficiary, any other provision of the Plan notwithstanding, before or after
Retirement, death, or other termination of employment shall, upon the failure of the Adopting
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Employer to pay and to continue to pay its required Contributions, be limited as specified in this •
Article.
(c) In the event of an involuntary termination, the GMEBS Board may in its sole
discretion adopt a resolution providing for: (i) designation of the members of the Employer's
Governing Authority as successor trustees for the Plan; (ii) designation of a person or entity
other than the Employer's Governing Authority as successor trustee for the Plan; or (iii) outright
termination of the Plan and distribution of assets to Participants and Beneficiaries. The specific
terms and conditions associated with involuntary termination shall be as provided in the Board
resolution. Neither the Administrator nor the GMEBS Board shall be subject to lawsuit or
liability arising from the exercise of its discretion as provided herein.
(d) The Administrator shall notify the Governing Authority, Participants, and
Beneficiaries in writing of an involuntary termination and the reasons therefor. Said notice shall •
also fix a termination date. Upon the request of the Administrator, the Employer shall within a
reasonable period provide the Administrator with the last known addresses of Participants and
Beneficiaries for this purpose. Neither the Administrator nor the GMEBS Board shall be subject
to lawsuit or liability for non-compliance with this paragraph arising from the failure of the
Employer to provide such information to the Administrator.
(e) The Administrator shall determine the value of the Adopting Employer's Trust
Fund as of the termination date in accordance with the procedures described in Section
18.05(b)(4) of this Article. The Board shall deduct from the Trust Fund a termination fee
established by GMEBS for services provided in effecting termination of the Adopting
Employer's participation in GMEBS.
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• (f) Successor Trustee.
(1) Governing Authority as Successor Trustee. If upon voluntary termination,
the GMEBS Board by resolution designates the members of the Employer's Governing
Authority as successor trustees, the Adopting Employer shall be obligated to furnish
GMEBS with a successor retirement plan and related documents as provided in Section
18.04(b)(5)(A). Distribution of assets to the Governing Authority or to a designee
specified by the Governing Authority in writing, as successor trustee, shall then occur in
accordance with the transfer procedures described in Section 18.04(b)(5). Payment of
benefits to Retired Participants and Beneficiaries shall become the responsibility of the
Governing Authority, as successor trustees, as of the termination date, except as
otherwise provided in the Board's termination resolution.
• (2) Other Entity as Successor Trustee. If upon involuntary termination, the
GMEBS Board by resolution designates a successor trustee other than the members of the
Employer's Governing Authority, distribution of assets to the successor trustee shall
occur in accordance with the transfer procedures described in Section 18.04(b)(5) upon,
the Board's receipt of retirement plan and related documents as described in Section
18.04(b)(5)(A), and any other information reasonably requested by the Board. Payment
of benefits to the Retired Participants and Beneficiaries shall become the responsibility of
the successor trustee as of the termination date, except as otherwise provided in the
Board's termination resolution.
(3) Termination without Successor Trustee. If upon involuntary termination,
the GMEBS Board by resolution terminates the Employer's Plan outright, the assets of
the Employer's Trust Fund will not be transferred to a successor trustee, but will be
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distributed to Participants and Beneficiaries in accordance with and subject to the •
termination provisions of Section 18.03(b)-(f), except as otherwise provided in this
subsection. The Employer shall provide current Participant information necessary to
calculate Accrued Benefits as required under Section 18.03(c), within a reasonable period
after the Administrator's request for such information. Any excess assets remaining after
satisfaction of Accrued Benefits and payment of the termination fee shall be distributed
to the Employer.
(g) Freezing of Benefit Accruals. In the event of an Employer's failure to pay
required Contributions, the GMEBS Board may by resolution freeze benefit accruals under the
Employer's Plan, as an alternative to involuntary termination. If the Board adopts such a
resolution, the Employer's Plan must continue to be maintained as a qualified plan and the
Employer will be responsible for funding benefits as determined under the frozen Plan's •
provisions. The Board's resolution to freeze benefit accruals shall specify the extent to which
Service and Earnings after the freeze date will or will not be counted for purposes of computing
the amount of benefits payable under the Plan, and for purposes of meeting the minimum service
requirements for vesting and benefit eligibility under the Plan. The resolution shall also specify
the conditions for recommencing benefit accruals under the Plan. The resolution may also
provide that, in the event of an Employer's continued failure to pay required Contributions, the
Employer's Plan will be terminated outright as of a date certain or upon the Board's adoption of a
resolution providing for outright termination, consistent with the provisions of subsection(f)(3).
(h) The Board in its discretion may require an Employer to obtain appropriate IRS
approval of the qualified status of the terminating Plan or a successor plan.
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• (i) In the event that an Adopting Employer fails to comply with the terms of the
Master Plan, Adoption Agreement, or GMEBS Trust Agreement including, but not limited to,
failure to pay required Contributions in a timely manner, the Board may in its sole discretion
pursue any other legal or equitable means that it deems appropriate, including the filing of a writ
of mandamus, to facilitate such compliance.
Section 18.06. Termination of the Master Plan by the Board. The Board reserves
the right to completely terminate the Master Plan and the GMEBS Trust Agreement. In such an
event, the provisions of Section 18.03 shall be applied to each Adopting Employer.
ARTICLE XIX.
NON-ALIENATION OF BENEFITS
(a) None of the benefits, payments, proceeds, or distributions payable under the Plan
shall be subject to the claim of any creditor of any Participant or to the claim of any creditor of
•
any Beneficiary hereunder, or to any legal process of levy or attachment by any creditor of any
such Participant or Beneficiary; and no such benefits shall be in any manner liable for or subject
to the debts, liabilities, engagements, or torts of any Participant or Beneficiary; and neither shall
any such Participant or Beneficiary have any right to alienate, commute, anticipate, transfer,
encumber, pledge, or assign any of the benefits, payments, proceeds, or distributions under this
Plan.
(b) Nothing in subsection(a) shall be construed to preclude the Administrator, subject
to any terms and conditions set by the Administrator, from making a deduction and direct
payment to the Adopting Employer or GMEBS on behalf of a Retired Participant for the limited
purpose of paying for a contribution or premium for a post retirement benefit offered by the
Adopting Employer or GMEBS, if the Retired Participant elects to have such deduction and
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direct payment made. An election by the Retired Participant for such deduction and direct •
payment may be revoked at any time.
(c) Nothing in subsection(a) shall be construed to preclude the Administrator, subject
to any terms and conditions set by the Administrator, from making a deduction and direct
payment on behalf of a Retired Participant as provided under Section 845(a)(4)(D) of the
Pension Protection Act of 2006 in its current form or as amended, and as interpreted by the
Internal Revenue Service, for the limited purpose of paying premiums for coverage for an
eligible retired public safety officer, his spouse, and dependents, by an accident or health
insurance plan or qualified long-term care insurance contract as defined in Section 7702B(b) of
Title 26 of the United States Code, if the Retired Participant elects to have such deduction and
direct payment made. An election by a Retired Participant for such deduction and direct
payment may be revoked at any time. •
ARTICLE XX.
MISCELLANEOUS
Section 20.01. Construction.
(a) Words used in this Plan in the masculine gender shall be construed to include the
feminine gender where appropriate, and words used in this Plan in the singular or plural shall be
construed as being in the plural or singular where appropriate.
(b) The Plan shall be construed, enforced, and administered and the validity thereof
determined in accordance with the Code, and, when not inconsistent with the Code, the laws of
the State of Georgia and the bylaws of the Board.
(c) In resolving any conflict between provisions of the Plan and in resolving any
other uncertainty as to the meaning or intention of any provision of the Plan, the interpretation
that (i) causes the Plan to constitute a qualified governmental retirement plan under the •
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• provisions of Code Sections 401 and 414(d) and the Trust as exempt from tax under Code
Sections 501 and 115, and (ii) causes the Plan to comply with all applicable requirements of the
Code and federal law shall prevail over any different interpretation.
(d) In resolving any conflict between the Plan and any policy or contract issued under
the Plan, the provisions of the Plan shall prevail.
(e) The headings and subheadings in the Plan are inserted for convenience of
reference only and are not to be considered in the construction of any provision of the Plan.
(f) The terms of this Master Plan document shall control except as otherwise
provided in an Adopting Employer's Adoption Agreement (including any Addendum to the
Adoption Agreement, if applicable), as accepted by or on behalf of the GMEBS Board, in which
case the terms of the Adopting Employer's Adoption Agreement(including any Addendum to the
Adoption Agreement) shall control.
•
(g) Neither the establishment nor maintenance of the Plan nor any amendment thereof,
nor any act or omission under the Plan or resulting from the operation of the Plan shall be
construed:
(1) as conferring upon any Participant, beneficiary, or any other person a right
or claim against the GMEBS Investment Fund, the Trust Fund, the Trustees, the
Adopting Employer, or the Administrator, except to the extent that such right or claim
shall be specifically expressed and provided in the Plan;
(2) as a contract or Agreement between the Adopting Employer and any
Participant or other person;
(3) as being consideration for, or an inducement or condition of, employment
of any Participant or other person, or as affecting or restricting in any manner or to any
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extent whatsoever the rights or obligations of the Adopting Employer or any Participant •
or other person to continue or terminate the employment relationship at any time; or
(4) as giving any Participant the right to be retained in the service of the
Adopting Employer or to interfere with the right of the Adopting Employer to discharge
any Participant or other person at any time.
Section 20.02. Non-Diversion.
(a) The assets of the Plan shall never inure to the benefit of an Adopting Employer
and shall be held for the exclusive purposes of providing benefits to Participants in the Plan and
their beneficiaries and defraying reasonable expenses of administering the Plan, except in the
case of a contribution which is made by an Adopting Employer under a mistake of fact as
determined solely by the Administrator. Such contribution shall be returned to the Adopting
Employer, upon demand, and shall be reduced for any loss incurred but unadjusted for any gains •
earned during the time the mistaken contribution was part of the Trust Fund.
(b) Trust assets shall be managed in compliance with Code Section 503(b).
Section 20.03. Legally Incompetent; Power of Attorney. Any Participant, Retired
Participant, Terminated Vested Participant, or Beneficiary receiving or claiming benefits under
the Plan shall be conclusively presumed to be mentally competent and of age until the
Administrator receives a written notice, in a form and manner acceptable to it, that such person is
incompetent or a minor, and that a guardian or other person legally vested with the care of his
estate has been appointed. In the event a guardian of the estate of any person receiving or
claiming benefits under the Plan shall be appointed by a court of competent jurisdiction,
payments shall be made to such guardian and the guardian may take any and all actions with
respect to the person's interest under the Plan in accordance with the terms of the appointment, •
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• provided that proper proof of appointment is furnished in a form and manner suitable to the
Administrator. Any payment so made shall be a complete discharge of liability therefor under
the Plan. No person may act as an attorney-in-fact for an Employee, Participant, Terminated
Vested Participant, Retired Participant or Beneficiary with respect to a matter involving the Plan
unless a valid power of attorney document appointing such person and authorizing such action is
submitted in a form and manner acceptable to the Administrator. The Administrator shall be
entitled to rely upon a power of attorney document which it reasonably determines to be valid,
without liability for actions taken by the Administrator at the request of the designated
attorney-in-fact, unless and until the Administrator receives notice that the power of attorney is
no longer effective.
Section 20.04. Benefits Supported Only by Trust Fund. Any person having any
claim under the Plan shall look solely to the assets of the Trust Fund for satisfaction. In no event
•
shall the Adopting Employer, or any of its employees or agents, be liable in their individual
capacities to any person whomsoever, under the provisions of the Plan or of the GMEBS Trust
Agreement.
Section 20.05. Non-Discrimination. The Adopting Employer, through the Pension
Committee, shall administer the Plan in a uniform and consistent manner with respect to all
Participants.
Section 20.06. Limitation of Liability; Legal Actions.
(a) It is expressly understood and agreed by each Employee who becomes a
Participant hereunder that, except for willful neglect or fraud, neither the Adopting Employer,
the Plan Representative, nor the Board of Trustees shall be in any way subject to any suit or
litigation, or to any legal liability, for any cause or reason or thing whatsoever, in connection
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with the Plan or its operation, and each such Participant hereby releases the Adopting Employer, •
all its employees and agents, the Plan Representative, and the Board of Trustees from any and all
liability or obligation.
(b) The Adopting Employer and the Plan Representative shall be the only necessary
parties to any action or proceeding involving any rights under the Plan or the proper
administration thereof, and no Participant, Beneficiary, or other persons having or claiming to
have an interest in the Plan shall be entitled to any notice of process. Any final judgment which
is not appealed or appealable that may be entered in any such action or proceeding shall be
binding and conclusive on the parties hereto and all persons having or claiming to have an
interest in the Plan.
Each fiduciary under the Plan shall be responsible only for the specific duties assigned
under the Plan and shall not be directly or indirectly responsible for the duties assigned to •
another fiduciary. Any person or a group of persons may serve in more than one (1) fiduciary
capacity with respect to the Plan.
Section 20.07. Claims. Any payment to a Participant or Beneficiary, or to their legal
representatives, in accordance with the provisions of the Plan, shall to the extent thereof be in
full satisfaction of all claims hereunder against the Plan Representative or the Adopting
Employer, either of which may require such Participant, Beneficiary, or legal representative, as a
condition precedent to such payment, to execute a receipt and release therefor in such form as
shall be determined by the Plan Representative or the Adopting Employer.
Section 20.08. Errors in Benefits.
(a) Effective upon issuance of an Internal Revenue Service favorable advisory letter
which covers this provision, notwithstanding any provision in this Section 20.08 to the contrary, •
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• any action upon an underpayment or overpayment shall be brought within six (6) years after the
same becomes due and payable. Likewise, GMEBS shall not be required to correct any
underpayment or overpayment more than six (6) years after said underpayment or overpayment
occurred.
(b) Underpayments. Any underpayments from the Trust Fund to a Retired Participant
or to a Beneficiary caused by administrative errors shall be corrected with interest compounded
annually from the date of the miscalculated payment. The rate applied shall be the actuarially
assumed rate utilized by the plan actuary for estimating future plan investment earnings or,
effective on and after January 1, 2014, such other rate established by the Board that is
permissible under federal and state law and applicable guidance as of the date of the correction.
Underpayments shall be made up from the Adopting Employer's Trust Fund. Effective with
• respect to underpayments corrected on or after January 1, 2017, in the event a Retired Participant,
Pre-Retirement Beneficiary or Post-Retirement Beneficiary to whom a corrective payment is due
dies before such payment is made, said corrective payment shall be paid to such Retired
Participant's, Pre-Retirement Beneficiary's or Post-Retirement Beneficiary's designated
beneficiary, as defined in this subsection (b) or, if there is no such designated beneficiary, to the
deceased Retired Participant's, Pre-Retirement Beneficiary's or Post-Retirement Beneficiary's
estate. For purposes of this subsection, the term "designated beneficiary" shall mean the
surviving Spouse of such Retired Participant, Pre-Retirement Beneficiary, or Post-Retirement
Beneficiary, as applicable, and the term "surviving" shall mean surviving the Retired Participant,
Pre-Retirement Beneficiary, or Post-Retirement Beneficiary, as applicable, by at least thirty-two
(32) days.
•
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(c) Overpayments. In the event of an overpayment from the Trust Fund to a Retired •
Participant or to a Beneficiary caused by administrative error, the following provisions shall
apply:
(1) Corrective Amendment Option. In the event of an overpayment that is
due to misapplication of the terms of the Plan, the Adopting Employer may be provided
the opportunity to amend its Adoption Agreement (a "Corrective Amendment") in order
to provide for such overpayment to be permissible under the terms of the plan,but only if
the Corrective Amendment is consistent with the circumstances resulting in the
overpayment and with the Master Plan, as determined by the Administrator. The
Corrective Amendment may be effective either retroactively only, or both retroactively
and prospectively.
(2) Determination of Reasonableness of Collection from Retired Participants •
or Beneficiaries. In the event that the Adopting Employer does not adopt a Corrective
Amendment, or that the circumstances resulting in the overpayment or the Master Plan
would not permit such an amendment,the Administrator and the Adopting Employer will
consult in making a determination of whether collection of the overpayment (in full or in
part) from a Retired Participant or Beneficiary is reasonable under the particular facts and
circumstances involved. In their determination, the Administrator and the Adopting
Employer shall consider (1) the hardship of collection on the Retired Participant or
Beneficiary; (2) any legal impediments to collection; and (3) the potential risk of
litigation if collection is pursued, in consultation with the affected Adopting Employer's
counsel.
•
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• (3) Failure to Reach Agreement on Reasonableness of Collection. If the
Administrator and the Adopting Employer cannot reach agreement within six (6) months
as to whether collection of an overpayment from a Retired Participant or Beneficiary is
reasonable, the Board shall make this determination, considering the factors outlined
above in paragraph (2).
(4) Collection Process. If a determination under this subsection is made that
collection from the Retired Participant or Beneficiary is reasonable, the overpayment
shall be corrected with interest compounded annually from the date of the miscalculated
payment. The rate applied shall be the actuarially assumed rate utilized by the plan
actuary for estimating future plan investment earnings or, effective on and after January 1,
2014, such other rate established by the Board that is permissible under federal and state
• law and applicable guidance as of the date of the correction. In collecting amounts of the
overpayment (in full or in part), the Administrator shall have the discretion to use any of
the following options: (i) single sum payments; (ii) installment payments; (iii) actuarial
reduction of future Retirement payments; or (iv) deductions from Retirement payments.
Retirement payment deductions shall not exceed fifty percent (50%) of the amount of
payment from which the deduction is made.
(5) Corrective Payment by Adopting Employer. If full collection of an
overpayment is not achieved, either because of a determination that full collection from
the Retired Participant or Beneficiary is not reasonable, or because efforts at collection do
not result in a full collection of the overpayment, the Adopting Employer shall be
responsible for making a separate, supplemental contribution to the Trust Fund in the
amount of any uncollected overpayment, including interest as calculated under paragraph
•
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(4) ("corrective contribution"). Any corrective contribution by a Participating Employer •
must be made at the same time that the next regular employer contribution is due under
the Plan. In the event employer contributions are paid in installments, the corrective
contribution may be paid over that same installment period, but not to exceed a twelve
(12) month period. The corrective contribution may not be included as a portion of the
general liability of the Plan for which regular funding contributions are made.
(6) Alternative Correction Approach. If the overpayment involves
circumstances that are not addressed in the preceding provisions of this subsection, or if
in the determination of the GMEBS board, the overpayment cannot be practicably or
appropriately corrected using the methods addressed in this subsection, the Administrator
may develop a correction approach that is appropriate under the circumstances,
permissible under state and federal law and applicable guidance, and equitable to the •
parties involved.
(d) Overpayments Due to Delay in Notification of Death of Participant or Beneficiary.
(1) In the event that GMEBS makes a payment to a Retired Participant or to a
beneficiary following the death of such Participant or beneficiary, GMEBS will make
reasonable efforts (not including litigation or collections processes) to recover said
overpayment for a period of 60 days after receiving notice from the Adopting Employer
of the Participant's or beneficiary's death. If after 60 days from the date on which
GMEBS receives notice of the Participant's or beneficiary's death, GMEBS is unable to
recover the overpayment, the Adopting Employer shall be responsible for making a
separate, supplemental contribution to the Trust Fund in the amount of any such
uncollected overpayment, including interest as calculated under paragraph (c)(4) above
•
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• ("corrective contribution"). Any corrective contribution by an Adopting Employer must
be made at the same time that the next regular Employer Contribution is due under the
Plan. In the event Employer Contributions are paid in installments, the corrective
contribution may be paid over that same installment period, but not to exceed a twelve
(12) month period. The corrective contribution may not be included as a portion of the
general liability of the Plan for which regular funding contributions are made.
(2) If the overpayment involves circumstances that are not addressed in the
preceding provisions of this subsection, or if in the determination of the GMEBS Board,
the overpayment cannot be practicably or appropriately corrected using the methods
addressed in this subsection, the Administrator may develop a correction approach that is
appropriate under the circumstances, permissible under state and federal law and
• applicable guidance, and equitable to the parties involved.
Section 20.09. Notice. Any notice given under the Plan shall be sufficient if given to:
(1) the Board if addressed to the Administrator at its office; (2) the Adopting Employer if
addressed to the address of the Governing Authority indicated in the Adoption Agreement; or(3)
a Participant or Beneficiary, when addressed to the Participant at his or her address as it appears
in the records of the Administrator or the Adopting Employer.
Section 20.10. Right of Recovery. If the Administrator makes any payment that
according to the terms of the Plan and the benefits provided hereunder should not have been
made, the Administrator may recover that incorrect payment, whether or not it was made due to
the error of the Administrator, from the person to whom it was made, or from any other
appropriate party. If any such incorrect payment is made directly to a Participant, the provisions
• of Section 20.08 apply.
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Section 20.11. Evidence of Action. All ordinances,resolutions, forms, orders, requests, •
documents and instructions provided to the Administrator by an Adopting Employer or by any
duly authorized representative (e.g., Plan Representative or Pension Committee Secretary), shall
be in writing and the Administrator shall be fully protected in acting in accordance with such
ordinances,resolutions, forms, orders,requests, documents and instructions.
Section 20.12. Reliance. The Administrator or Board shall not incur any liability in
acting upon any notice, request, signed letter, telegram, form, or other paper or document
believed by the Administrator or Board to be genuine or to be executed or sent by an authorized
person.
Section 20.13. Information to Administrator. As a condition precedent to GMEBS's
administration of the Plan, the Adopting Employer shall provide current information to the
Administrator including but not limited to the name, date of birth, date of employment, •
Enrollment Date, annual Earnings, leaves of absences, Vesting eligibility, Credited Service and
Termination date for each Eligible Employee who is or who is expected to become a Participant
under the Plan, together with any other information which the Administrator deems necessary.
The information provided by the Adopting Employer to the Administrator shall be conclusive as
to all persons.
Section 20.14. Participant Data to Administrator. Each Participant and each
Beneficiary of a deceased Participant, as applicable, must provide the Administrator any
evidence, data or other information as requested by the Administrator for the purpose of
administering the Plan. The provisions of this Plan are effective for the benefit of each
Participant upon the condition precedent that each Participant furnishes promptly full, true and
•
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• complete evidence, data and information when requested by the Administrator. The
Administrator shall advise each Participant of the effect of the failure to comply with its request.
Section 20.15. Treatment of Vacated Court Orders. Notwithstanding any provision
to the contrary, a period of employment that was compelled by court order which was
subsequently vacated, reversed, or otherwise set aside shall not count as Credited Service under
the Plan, except for a period, or partial period, during which the Participant satisfied the
eligibility requirements for participation under the Plan. Likewise, Earnings paid to a Participant
during any such period shall not be used to compute the Participant's Final Average Earnings,
except for a period, or partial period, during which the Participant satisfied the eligibility
requirements for participation under the Plan. In the event such a Participant Retires before the
order compelling the Participant's reinstatement is vacated, reversed, or otherwise set aside, the
Participant's Credited Service and Final Average Earnings shall be revised following such
•
reversal, vacation or otherwise setting aside of the Participant's reinstatement, and the
Participant's Retirement benefits shall be recalculated and adjusted accordingly, effective the
first day of the month following such action. Any overpayments to the Participant resulting from
including Credited Service and Earnings from any such period or partial period of employment
during which the Participant did not satisfy the eligibility requirements for participation under
the Plan shall be corrected in accordance with Section 20.08 of the Master Plan.
Section 20.16. Entire Plan. The Plan document and the documents incorporated by
reference herein shall constitute the only legally governing documents for the Plan. No
statement by the Trustees, Adopting Employer, or Administrator shall be used in any claim
unless in writing, signed by the party against whom the claim is being made.
•
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The terms of the foregoing Master Defined Benefit Plan Document are hereby adopted •
and agreed to.
IN WITNESS WHEREOF, the Board of Trustees of the Georgia Municipal Employees
Benefit System has eau ed its Seal and the Signatures of its duly authorized officers to be affixed
this b day of , 20157.
Attest:
Board of Trustees
eorgia Municipal Employees
Ben fi System
tSecretary
(SEAL)
•
•
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• APPENDIX
REFERENCED SECTIONS OF O.C.G.A.
Copies of sections of the Official Code of Georgia Annotated ("O.C.G.A.") referenced
herein, as in effect on the date of adoption of this amended and restated Master Plan Document,
are attached hereto and made a part hereof The Georgia legislature may amend the provisions
of the attached O.C.G.A. sections from time to time. Any such amendments by the Georgia
legislature are afforded no reliance by the currently issued IRS advisory letter.
•
S
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I •