HomeMy WebLinkAboutORD 6983 AMEND RESTATE ORD 6655 1977 PENSION
ORDINANCE NO. 6983
AN ORDINANCE TO AMEND AND RESTATE ORDINANCE NUMBER 6655, THE
RICHMOND EMPLOYEES PENSION FUND; ADOPTED June 19 . 2007 ; TO
PROVIDE FOR SEVERABILITY; TO REPEAL CONFLICTING ORDINANCES AND
FOR OTHER PURPOSES.
RETIREMENT PLAN
FOR EMPLOYEES OF RICHMOND COUNTY
As Amended and Restated Effective January 1,1984
(Except as Otherwise Provided Herein)
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TABLE OF CONTENTS
PAGE
INTRODUCTION ..........................................................................................................................1
SECTION 1 DEFINITIONS...................................... ....... .......................................... ..........3
1.01 Accrued Benefit...... ... ....... ........................................ ..................... .... ....... ..............3
1.02 Actuarial Equivalent................. .............. .... ....... ................ .......... ........ ........ ........... 3
1.03 Average Earnings ................................................................................................... 3
1.04 Beneficiary .................................... ... .... ...................... .... .... ....... .......... ................... 3
1.05 Board..... .......................... ...................... ............... .... ........................ ......................3
1.06 Break in Service ..................................................................................................... 4
1.07 Code.......................................................................................................... ...........4
1.08 Contributions. ......................... .............. ........ ...... ........ ........ ................. ...... .............4
1.09 Credited Service........... ............................ ..................................... .......... ...............4
1.10 Earnings................. ....................................... ........ ......................................... .........5
1.11 Effective Date. ....... ..................... ....... .......... ................. ...... ........... ....................... 5
1.12 Eligibility Service............ ..................... ........................... .... .................... ........ .......6
1.13 Employee....... ......................................................... ............................. .... ............... 6
1.14 Employer or County ...............................................................................................7
1.15 Fund... .......... ........................................... .... ...... ............ .................. .......... .......... ....7
1.16 Interest.......................................... .................. ...................... ........... .......... .............7
1.17 Joint Annuitant................ ........... ............. .............. ........ .... ...... ............. ............ ...... 7
1.18 Old Plan.. ..................... .... .:..... ........ ...... .... ................................................ ..............7
1.19 Participant............... .......... ............................. ... ............ ....... .................. .................7
1.20 Participation Date............... ................... ..... .... ................ ................. .......................7
1.21 Payee..... .... .... .... ...... ............... .... ........................ ........ .... .... ... ... .... ........... ...... .... .....7
1.22 Plan........................ ....................... .... ............ ............... ........ .......... ........... ..............7
1.23 Plan Year ............ ............................ ........... .... ...... ................... ........... .............. .......7
1.24 Trust Agreement or Trust ....................................................................................... 7
1.25 Trustee........... .............. ........................................... .............. ........ ....... .... ......... ...... 7
SECTION 2 ELIGIBILITY AND P ARTICIP A TION ......................................................... 7
2.0 1 Eligibility............... .............. .................... ........................ ... ...................................7
2.02 Participation.... .................... ............................ ............ ..... .............. .... ........ ....... .... 8
2.03 Special Rules for Pre-1997 ..................................................................................... 9
SECTION 3 RETIREMENT DATES AND BENEFITS .....................................................9
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3.01
3.02
3.03
3.04
3.05
3.06
3.07
3.08
3.09
3.10
3.11
3.12
SECTION 4
4.01
4.02
4.03
4.04
SECTION 5
5.01
5.02
5.03
5.04
SECTION 6
6.01
6.02
SECTION 7
7.01
SECTION 8
8.01
8.02
8.03
8.04
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Normal Retirement. .... ......................... ...................................................... ...........9
Early Retirement. ................. ............. ............ .................. ....... ........................ ......9
Disability Retirement. ......................... ............................ ............ ...... ................... 10
Delayed Retirement. .......... .......... ............... ............... .... .................. ............ ....... 13
Enhanced Early Retirement for 1996. ................................................................14
Vesting and Termination of Employment ............................................................15
Cost of Living Adjustment of Benefits. ............................................................... 15
Payment of Small Benefits. ................................................................................16
Required Distribution Rules Effective January 1, 1987 Through December
31, 2002............. ..... ............... ........................................... ....... ................... .......... 16
Required Distribution Rules Effective January 1, 2003.......................................17
Code Section 415 Limit. ..................................................................................... 22
Rollover Distributions.................. ............................... ....... ......... ............ ............. 24
DEATH BENEFITS.............. ........... .... .................. .............. ................ .... ...... 25
Death Prior to Retirement. ............. ........ ........ ............ ....... .............. ...... ...... .... .....25
Death After Retirement. ........... ...... ........ ........... .............................. ...... .............26
Adjusted Benefit. ................................. ............................................................... 26
Designation of Beneficiaries. ....... ............................... .............. .... .... ........ .........26
OPTIONAL FORMS OF RETIREMENT INCOME ....................................27
Election of Optional Retirement Benefits. .........................................................27
Description of Options. ...... .............................................. ............ ......... ............. 27
Joint Annuitant or Beneficiary. ................................................................... .........28
Cancellation of Election. ................... ........ .... ...... ............ .................. ................. 28
CONTRIBUTIONS. .... ...................... ........................................... ...... ............28
County Contributions. ........................................................................................ 28
Participant Contributions. ........................................ ...................................... .....28
ADMINISTRATION OF PLAN .................................................................... 29
Administration. ............. ............ .......... ................. ..... ................... .... ...................29
TRUST FUND AND TRUSTEES ................................................................. 30
Trust Fund. .. ................... ... ....................... ............. ......................................... ....30
Amendment of Trust. ....... ................ .... .... .... ...... ............ ................ ....... ...... ....... 31
Discontinuance of Trust and Vesting. ................................................................ 31
Powers of Trustee. ..................... .......... ................. ............ ..................................31
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8.05
8.06
8.07
8.08
8.09
8.10
SECTION 9
9.01
9.02
SECTION 10
10.01
10.02
10.03
10.04
10.05
10.06
10.07
10.08
10.09
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Investment of Fund............ ......... ................... ................................. ................ ...... 32
Taxation. ........ ................................... .................... .......... ........................... .........33
Resignation of Trustee. .......................................... ........................... .................33
Successor Trustees. ...... .......... .... ....... ............... ............... .......................... .........33
Liability of Trustee. ........... ......... ........ .... ....................... .......................... ........... 33
Disbursements. ........ ...... ..................................... ................................................33
AMENDMENT AND TERMINATION .......................................................34
Amendment of the Plan. ......... .......... .................................................................. 34
Termination of the Plan. ............. ........ ....................... ...................... ........ .... .......34
MISCELLANEOUS.......................................................................................36
Headings. ....... ............................... .......................... .... ........................................36
Construction. .. ... ..................... ...... .... .... .... .... ........... .... ............... .... ............ ........36
Nonalienation. ............................ ............................................................. ...........36
Legally Incompetent. .................. ............ .... ............... .................................. .......36
Benefits Supported Only By Fund. .................................................................... 36
Discrimination. ......... ........................ .................. .................................. ..............36
Limitation of Liability; Legal Actions. ..............................................................36
Claims. ..... .... ............... ...................................... ................................... ...............37
Forfeitures. ................................................. ........................................................37
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RETIREMENT PLAN
FOR EMPLOYEES OF RICHMOND COUNTY
INTRODUCTION
Effective January 1, 1977, the Board of Commissioners of Richmond County (hereinafter
referred to as the "Board") established the "Retirement Plan for Employees of Richmond
County," hereinafter referred to as the "Plan." The establishment of the Plan stems from' the
desire of the Board to facilitate a retirement program for certain employees of the County not
presently covered under another retirement or pension plan to which the County contributes, or
not covered under the Social Security Act. Participation in the Plan was frozen effective as of
April 30, 1998, meaning that the Plan only covers Employees hired on or before April 30, 1998
and no Employees hired after that date are eligible to participate in the Plan.
On -' 2006, the Augusta-Richmond County Commission, as successor to the
City Council of Augusta, approved this restatement of the Plan effective January 1, 1984 (except
as otherwise provided herein) so as to conform the Plan with relevant provisions ofthe following
federal laws: the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA"), the Deficit
Reduction Act of 1984 ("DEFRA"), the Retirement Equity Act of 1984 ("REA"), the Tax
Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1986, the Omnibus Budget
Reconciliation Act of 1987, the Technical and Miscellaneous Revenue Act of 1988, the Omnibus
Budget Reconciliation Act of 1989, the Omnibus Budget Reconciliation Act of 1990
(collectively referred to as "TRA'86"), the Unemployment Compensation Amendments of 1992
("UCA'92"), the Omnibus Budget Reconciliation Act of 1993 ("OBRA'93"), the Uruguay
Round Agreements Act ("GATT"), the Uniformed Services Employment and Reemployment
Rights Act of 1994 ("USERRA"), the Small Business Job Protection Act of 1996 ("SBJP A"), the
Taxpayer Protection Act of 1997 ("TRA'97"), the Internal Revenue Service Restructuring and
Reform Act of 1998 ("RRA'98"), and the Community Renewal Tax Relief Act of2000 ("CRA"
and together with GATT, USERRA, SBJPA, TRA '97, and RRA '98 are referred to as "GUST")
and certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001
("EGTRRA"), with such EGTRRA amendments being made as good faith compliance with the
requirements of EGTRRA, to be construed in accordance with EGTRRA and guidance issued
thereunder.
The Plan also provides an option for present members of the Richmond County Pension Plan
(the "Old Plan") to become Participants in this Plan. Provisions for such employees electing
coverage hereunder are described in Section 2.
The Plan will be administered by the Board as described in Section 7. All benefits to be
provided under the Plan will be funded under a trust established in accordance with Section 8.
It is the County's intention to fully honor all benefits and rights that Plan Participants have
accrued under the Plan prior to this restatement. The Plan shall be administered and construed
accordingly, and the Plan's administrator shall construe and interpret every provision of the
Plan's restatement in a manner that preserves each Plan Participant's benefits or rights that
accrued prior to _, 2006. Nevertheless, any Participant whom the Commission
does not classify as an Employee on or after January 1, 2006 shall have his benefits and rights
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determined under the prOVISiOns of the Plan that were in effect when the Commission last
classified him or her as an Employee.
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SECTION 1
DEFINITIONS
As used herein, unless otherwise defined or required by the context, the following words and
phrases shall have the meanings indicated:
1.01 Accrued Benefit. The retirement benefit which the Participant has earned
as of the date of determination, calculated under Subsection 3.01(b) on the basis of his Average
Earnings and Credited Service, which is payable as of his Normal Retirement Date in the form of
a life annuity, with a guarantee of the refund of Contributions with Interest for the Participant
who dies before receiving an amount of benefit payments that at least equal his Contributions
with Interest.
1.02 Actuarial Equivalent.
(a) A benefit of equal value computed on the basis of (i) the 1971
Group Annuity Mortality Table, and (ii) interest at 6% compounded annually for forms of
payment other than lump sum; the interest rate used to determine the equivalent lump sum value
of monthly benefits will be in the PBGC schedule of immediate and graded deferred rates in
effect on the first day ofthe Plan Year in which the benefit is calculated.
(b) Effective January 1, 1995, the table referenced in clause (i) of
subsection (a) shall be a mortality table based on a fixed blend of 50% of the male mortality rates
and 50% the female mortality rates from the 83 GAM table, 83 GAM Unisex, as provided under
Revenue Ruling 95-6.
( c) Effective with respect to annuity starting dates on or after
December 31, 2002, the table referenced in clause (i) of subsection (a) shall be a mortality table
based upon a fixed blend of50% of the unloaded male mortality rates and 50% of the unloaded
female mortality rates underlying the mortality rates in the 1994 Group Annuity Reserving
Table, projected to 2002, 94 GAR, as provided under Revenue Ruling 2001-62.
1.03 Average Earnings. The monthly average of the Participant's earnings for
the five consecutive calendar years immediately preceding the earlier to occur of (a) the date on
which the Participant's employment with the employer terminates for any reason or (b) the
Participant's actual retirement date. Average Earnings shall be determined by dividing the total
Earnings received by the Participant during the appropriate five year period, or lesser number of
years if applicable, by the number of months for which he received earnings in such period.
1.04 Beneficiary. The person(s) designated by the Participant in accordance
with Section 4.04 who is entitled to receive benefits at the death of a Participant under Section 4
or 5.
1.05 Board. The Augusta-Richmond County Commission as successor to the
Board of Commissioners of Richmond County, which shall act in the dual capacity of
administrator ofthe Plan and Trustee of the Fund.
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1.06 Break in Service. A continuous period of at least 12 consecutive months
during which an individual is not employed by the County. Such period begins on the date of an
individual's termination of employment for any reason, or, if earlier, the 12 month anniversary of
the date on which the individual ceases to accrue Credited Service. In the case of an individual
who is absent from work for maternity or paternity reasons, the 12-consecutive month period
beginning on the first anniversary of the first date of such absence shall not constitute a Break
in Service. For purposes of this paragraph, an absence from work for maternity or paternity
reasons means an absence (1) by reason of the pregnancy of the individual, (2) by reason of the
birth of a child of the individual, (3) by reason of the placement of a child with the individual in
connection with the adoption of such child by such individual, or (4) for purposes of caring for
such child for a period beginning immediately following such birth or placement.
1.07 Code. The Internal Revenue Code of 1986 as amended from time to time,
and regulations, rulings, and other publications under the Code.
1.08 Contributions. The payments made by the Participants to the Fund in
accordance with Section 6.
1.09 Credited Service.
(a) For Employees hired before January 1, 1993, the number of years
of uninterrupted and continuous employment (completed months expressed as a fractional year)
of the Employee with the Employer from (a) the later ofthe date he last entered the employment
of the Employer and January 1, 1977, to (b) the earlier of his date oftermination of employment
for any reason or his actual retirement date, excluding any period during which the Employee
fails to comply with the provision of Section 2.02 for participation after the date he is first
eligible unless he purchases such service pursuant to Section 2 below.
(b) For Employees hired after December 31, 1992, Credited Service
will not begin until the Participation Date and will continue until the earlier of his date of
termination of employment for any reason or his actual retirement date. The Employee will not
be permitted to purchase Credited Service to cover his period of Eligibility Service.
( c) Credited Service will not be interrupted by:
(1) vacation, or approved leave of absence authorized by the
Employer in accordance with a uniform policy applied on a nondiscriminatory basis to all
Employees similarly situated;
(2) voluntary or involuntary service in the Armed Forces of the
United States, provided the Employee retains statutory reemployment rights under applicable
state or federal law, and resumes employment after his honorable discharge from military duty
within the time required by such law;
(3) reelection or reappointment at the end of a term; or
(4) periods during which the Employee incurs a Total and
Permanent Disability within the meaning of Section 3.03, provided that he recovers from a Total
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and Permanent Disability and is reemployed by the Employer as required under Section
3.03(a)(7) or 3.03(b)(4).
(d) F or benefit purposes, no Participant will receive any credit for any
period of inactive employment. For vesting purposes, the Employee who has one or more Break
in Service will receive credit only from his most recent date of reemployment.
(e) Effective December 12, 1994, notwithstanding anything in the Plan
to the contrary, contributions, benefits, and service credited with respect to qualified military
service shall be provided in accordance with Section 414(u) ofthe Code.
1.10 Earnings.
(a) The total compensation paid to the Participant by the Employer
during any Plan Year, as reported on his Form W-2, including any pre-tax Employee
Contributions made under this Plan. Effective as of January 1, 1998, the term "Earnings" shall
also include any elective deferral (within the meaning of Code Section 402(g)(3)) and any
amounts that are deferred by the Employer at the election ofthe Employee that are not included
in the Employee's gross income pursuant to Code Section 125 or 457. Effective January 1,
2001, Earnings shall also include elective amounts that are not includable in the Employee's
gross income by reason of Code Section 132(f)(4). With respect to Plan Years from January 1,
1989 through December 31, 1996, the rules of Code Section 414(q)(6) shall apply in determining
a Participant's Earnings, except that the term "family" includes only the Participant's spouse and
any lineal descendants who have not attained age 19 before the end ofthe Plan Year.
(b) Effective January 1,2006, a Participant's Earnings shall be
disregarded to the extent such Earnings exceed $220,000, as such amount may be adjusted from
time to time for increases in the cost of living in accordance with the Code and regulations
thereunder. With respect to Plan Years from January 1,2005 through December 31, 2005,
"$220,000" in the first sentence of this subsection (b) shall be replaced with "$210,000". With
respect to Plan Years from January 1,2004 through December 31,2004, "$220,000" in the first
sentence ofthis subsection (b) shall be replaced with "$205,000". With respect to Plan Years
from January 1,2002 through December 31, 2003, "$220,000" in the first sentence ofthis
subsection (b) shall be replaced with "$200,000". With respect to Plan Years from January 1,
2001 through December 31, 2001, "$220,000" in the first sentence of this subsection (b) shall be
replaced with "$170,000". With respect to Plan Years from January 1, 1994 through December
31, 2000, "$220,000" in the first sentence of this subsection (b) shall be replaced with
"$150,000". With respect to Plan Years from January 1, 1989 through December 31, 1993,
"$220,000" in the first sentence ofthis Section 1.14(b) shall be replaced with "$200,000". With
respect to Plan Years from January 1, 1976 through December 31, 1983, "$220,000" in the first
sentence of this subsection (b) shall be replaced with "$100,000".
1.11 Effective Date. F or purposes of this Plan as restated, except as otherwise
set forth herein, the "Effective Date" shall be January 1, 1984. The Plan was originally
established effective January 1, 1977.
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1.12 Eligibility Service. The period between the first day of employment and
the first day of the month on or after the date when the Employee has completed 90 days of
employment.
1.13 Employee. Any person regularly employed by the County, any employee,
officer, appointee, or electee of the Board as now constituted or hereafter constituted, and any
employee, officer, appointee, or electee under any official of the County as now constituted or
hereafter constituted, who is elected by vote of the electorate, including employees of the
Department of Family and Children Services who are eligible for coverage under the Richmond
County Personnel Board, but excluding:
(a) any person covered under the provision of the Old Plan, except
those members of said plan who elect to participate in this Plan in accordance with Section 2;
(b) any person whose customary employment is for less than 30 hours
a week or an aggregate of less than six months in any calendar year;
( c) employees of the Richmond County Department of Health and
Department of Family and Children Services of Richmond County (except those employees
eligible for coverage under the County's Personnel Board) and Augusta-Richmond County
Public Library;
(d) the County Agent, County Home Demonstration Agent, and the
employees thereof;
( e) officers ofthe County elected by vote ofthe electorate; and
(f) effective as of January 1, 1987, any "Leased Employee." "Leased
Employee" means any person (other than a regular employee of the County) who pursuant to
an agreement between the Employer and any other person ("Leasing Organization") has
performed services for the Employer (or for the Employer and related persons determined in
accordance with Section 414(n)(6) of the Code) on a substantially full-time basis for a period of
at least one year, and such services are performed under the primary direction or control of the
Employer; provided that the control test does not apply to relationships that have been
determined by the Internal Revenue Service, before August 20, 1996, to not involve Leased
Employees. Contributions or benefits provided a Leased Employee by the Leasing
Organization which are attributable to services performed for the Employer shall be treated as
provided by the Employer. Notwithstanding the foregoing, a Leased Employee shall not be
considered an Employee of the Employer if: (i) such employee is covered by a money purchase
pension plan providing: (1) a nonintegrated employer contribution rate of at least 10 percent of
compensation, as defined in Section 415( c )(3) of the Code, but including amounts contributed
pursuant to a salary reduction agreement which are excludable from the employee's gross
income under Section 125, Section 402(a)(8), Section 402(h) or Section 403(b) ofthe Code, (2)
immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not
constitute more than 20 percent of the Employer's employees that are not "highly compensated"
as such term is defined in Code Section 414(q) based on the current Plan Year.
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1.14 Employer or County. Augusta, Georgia, as successor through its
consolidation with the Richmond-County Board of Commissioners.
1.15 Fund. The trust fund created in accordance with the Plan and Trust.
1.16 Interest. Interest credited on Participant Contributions from the January 1
next following the date of which such Contributions are made to the earlier of (a) the date of
termination of employment for any reason and (b) the Participant's Normal Retirement Date,
with such interest compounded annually at the rate of 5% per annum.
1.17 Joint Annuitant. The person designated by the Participant to receive
payments after the death of the Participant as provided under Option A or B in accordance with
Section 5.02.
1.18 Old Plan. The Richmond County Pension Plan, established March 1,
1945, for certain employees ofthe County, which plan is currently in existence.
1.19 Participant. An Employee who becomes eligible to participate in the Plan
as provided in Section 2.
1.20 Participation Date. The date when the Employee has completed his
Eligibility Service and begins to participate in this Plan.
1.21 Payee. The Beneficiary or Joint Annuitant designated by the Participant in
accordance with Section 1.04 or 1.17 to receive benefits under the Plan after the Participant's
death.
1.22 Plan. The Retirement Plan for Employees of Richmond County as
contained herein and all amendments thereto which may hereafter be made. The Plan shall
include the Trust as hereinafter defined.
1.23 Plan Year. The twelve month period ending December 31 of each year.
1.24 Trust Agreement or Trust. The agreement of trust between the Board, in
its capacity as the governing body of the Employer and the Board, in its capacity as Trustee,
which shall govern the continuation and maintenance of the trust fund, and all amendments
thereto.
1.25 Trustee. The Board in its capacity as trustee, or any substitute or
successor trustee hereafter appointed.
SECTION 2
ELIGIBILITY AND PARTICIPATION
2.01 Eligibility.
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(a) Each Employee, as such term is defined in Section 1.13, in the
employ by the County shall be eligible to become a Participant in the Plan as of the later of (i)
January 1, 1977 or (ii) his date of employment.
(b) Any member of the Old Plan may elect to become a Participant in
this Plan in accordance with the following procedure:
(1) each member of the Old Plan shall have the option to
become a Participant in this Plan not later than April 1, 1977;
(2) the Board shall provide an explanation of the benefits
payable to each such member ofthe Old Plan under the combination of employee benefit plans
or programs, including the Old Plan, this Plan and Social Security, and an explanation ofthe
requirement that past service and benefits accrued under the Old Plan must be waived by the
member.
(3) after the explanation referred to in (2) above, the member
of the Old Plan shall be given 30 days to accept or reject the election to become a Participant in
this Plan. If the member of the Old Plan does not elect to become a Participant under the Plan he
shall thereafter be precluded from participation herein for the duration of his employment with
the County unless, at some future date, the Board should reopen participation in the Plan to such
members.
2.02 Participation.
. (a) Each Employee hired (or rehired) on or after January 1, 1993, will
automatically become a Participant on his Participation Date.
(b) Each Employee hired on or before December 31, 1992, and each
member of the Old Plan who is eligible to become a Participant under Section 2.01, will become
a Participant by meeting the following requirements:
(1) The Employee must authorize the County in writing to
deduct from his Earnings the Contributions required from him under Section 6.02(a).
(2) The Employee must file with the Board, on a properly
completed form provided by the Board, (a) all required information, (b) a statement ofthe
Employee's acceptance of the terms and conditions of the Plan, and (c) the Employee's
Beneficiary designation. Any such Employee who elects to reenter the Plan after December 31,
1992 will continue to participate until he terminates employment, dies, or retires.
(c) A Participant's Credited Service will not include his period of
employment from the date he first became eligible until the date he becomes a Participant. Any
Employee who does not become a Participant when first eligible will forfeit all Credited Service
to which he would have been entitled under Section 1.09 and will be entitled only to Credited
Service accrued from the date he becomes a Participant.
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(d) Notwithstanding anything to the contrary, the Plan only covers
Employees hired on or before April 30, 1998; no one hired after that date is eligible to participate
in the Plan.
2.03 Special Rules for Pre-1997. Each Participant whom the Board has not classified as an
Employee on or after January 1, 1997, shall have his rights under the Plan determined in
accordance with such terms of the Plan in effect on the last day of such classification as an
Employee.
SECTION 3
RETIREMENT DATES AND BENEFITS
3.01 Normal Retirement. Normal retirement under the Plan is retirement from the employ of
the County on the Normal Retirement Date (as defined in paragraph "a" of this Section). In the
event of normal retirement, payment of the retirement benefit shall be governed by the following
provisions ofthis Section.
(a) Normal Retirement Date. The Normal Retirement Date ofa
Participant shall be the first day ofthe month coincident with or next following the date he:
(1) attains his 65th birthday; or
(2) attains age 62 and completes 25 years of Credited Service.
(b) Amount of Retirement Benefit.
(1) Basic Benefit. The monthly retirement benefit payable to a
Participant who retires on his Normal Retirement Date shall be an amount equal to (a) 1 % ofthe
Participant's Average Earnings multiplied by (b) his Credited Service on and after January 1,
1977.
(2) Adiusted Benefit. The monthly retirement benefit payable
under paragraph B-(1) above, shall be adjusted by the cost-of-living adjustment as provided in
Section 3.07 upon commencement of retirement benefit payments.
(c) Payment of Retirement Benefit. The retirement benefit payable in
the event of normal retirement shall be payable on the first day of each month. The first payment
shall be made on the Participant's Normal Retirement Date and the last payment shall be the
payment due next preceding his date of death, subject to the provision of Section 4.02; provided,
however, a Participant may modify the amount and conditions of payment by electing an
optional form of payment in accordance with Section 5 before distributions commence. Once
distributions commence under the Plan, a Participant may not modify the amount or condition of
payment under the Plan, except as required by a qualified domestic relations order described in
Section 10.03 or as otherwise required by law.
3.02 Early Retirement. Early retirement under the Plan is retirement from the employ of the
County prior to the Normal Retirement Date. Early retirement shall be authorized only in the
event that the Participant shall have both attained age 50 and completed at least 15 years of
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Credited Service. Notwithstanding the foregoing, if a Participant receives an Enhanced Early
Retirement benefit under Section 3.05, the Participant will be ineligible for benefits under this
Section. In the event of early retirement under this Section, payment of the retirement benefit
shall be governed by the following provisions ofthis Section.
(a) Early Retirement Date. The Early Retirement Date ofa Participant
shall be the first day ofthe month coincident with or next following the date he retires from the
employ ofthe County under the provision ofthis Section 3.02.
(b) Amount of Retirement Benefit. A Participant at retirement on his
Early Retirement Date shall at his option receive either:
(1) a deferred monthly retirement benefit commencing on his
Normal Retirement Date, provided he is then alive, equal to an amount computed in the same
manner as for normal retirement in accordance with Section 3.01-(b), but based on Credited
Service and Average Earnings as of his Early Retirement Date; or
(2) an immediate monthly retirement commencing on his Early
Retirement Date equal to the benefit determined in Section 3.02-(b)(1) above, reduced by 5/12%
for each complete month by which the Early Retirement Date of a Participant precedes his
Normal Retirement Date.
(c) Payment of Retirement Benefit. The monthly retirement benefit
payable in the event of early retirement shall be payable on the first day of each month. The first
payment shall be made on the date elected by the Participant under Section 3.02-(b)(I) or 3.02-
(b)(2) and the last payment shall be the payment due next preceding his date of death, subject to
the provision of Section 4.02; provided however, a Participant may modify the amount and
conditions of payment by electing an optional form of payment in accordance with Section 5.
3.03 Disability Retirement.
(a) Employment connected Disability. A Participant may retire under
the Plan ifhe becomes Totally and Permanently Disabled from a cause arising out of and in the
course of employment. Such retirement shall herein be referred to as "Disability Retirement"
and payment ofthe Disability Retirement benefit shall be governed by the following provisions
of this Section.
(1) Disability Retirement Date. The Disability Retirement
Date ofa Participant shall be the first day of the month which coincides with or next follows the
date the Board approves payment of the disability benefit.
(2) Total and Permanent Disability. A Participant shall be
considered Totally and Permanently Disabled if, in the opinion of the Board and subject to .
Section 3.03(a)(3) below, he is wholly prevented from engaging in any substantial gainful
activity by reason of a medically determinable physical or mental impairment which can be
expected to result in death or to be oflong continued and indefinite duration. The decision ofthe
Board on these questions shall be final and binding.
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(3) Non-Admissible Causes ofDisabilitv. Notwithstanding
anything in this Section to the contrary, a Participant shall not be entitled to receive any
Disability Retirement benefit if the Total and Permanent Disability is a result of any of the
following:
A. excessive and habitual use by the Participant of
drugs or narcotics;
B. injury or disease sustained by the Participant while
willfully;
C. participating in acts of violence, riots, civil
insurrections, or while committing a criminal offense;
D. injury or disease sustained by the Participant while
serving in any armed forces or as the result of warfare;
E. injury or disease sustained by the Participant after
his employment has terminated;
F. injury or disease sustained by the Participant while
working for anyone other than the County and directly attributable to such employment; or
G. intentional, self-inflicted injury.
(4) Proofof Total and Permanent Disabilitv. The Board,
before approving payment of any Disability Retirement benefit, shall require proof that the
Participant is disabled as herein and such other proof as it may decide, including the certificate of
one or more duly licensed physicians selected by the Board, that the Participant is totally and
permanently disabled on his Disability Retirement Date within the definition of Total and
Permanent Disability under Section 3.03-a(2).
(5) Once each year after commencement of Disability
Retirement benefits, the Board may similarly require proof ofthe continued Total and Permanent
Disability of the Participant. The decision ofthe Board on all such questions shall be final and
binding.
(6) Disability Retirement Benefit.
A. Basic Benefit. Effective August 19, 1997, the
monthly retirement benefit payable to a Participant on his Disability Retirement Date shall be an
amount equal to 50% of his Average Earnings determined as of his Disability Retirement Date,
reduced by any monthly payment received under Workmen's Compensation, or if Workmen's
Compensation is paid in a lump-sum payment, the monthly payments otherwise payable to the
Participant under the Plan shall be reduced by an amount which equitably adjusts, as determined
by the Board, for the amount to which the Participant is eligible under Workmen's
Compensation. Prior to August 19, 1997, "25%" replaced the "50%" in the first sentence ofthis
section 3.03(a)(5)A.
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B. Adiusted Benefit. The amount of monthly
retirement benefit provided under paragraph (5) (a) above, shall be adjusted by the cost-of-living
adjustments as provided in Section 3.07 upon commencement of retirement income payments.
(7) Payment of Disability Retirement Benefit. The retirement
benefit to which a Participant is entitled in the event of his Total and Permanent Disability shall
be payable on the first day of each month. The first payment shall be made on the Participant's
Disability Retirement Date and the last payment shall be the payment due next preceding the
earlier of (a) the Participant's date of death, subject to the provisions of Section 4.02 or (b) the
cessation of his Total and Permanent Disability prior to his Normal Retirement Date.
(8) Termination of Disability Retirement Benefit. Ifthe
Participant's Total and Permanent Disability ceases prior to his Normal Retirement Date and he
does not reenter the employ ofthe County within 60 days after his recovery, all rights of the
Participant in and to a Disability Retirement benefit shall cease and he shall be entitled solely to
the benefits, if any, provided in:
A. Section 3.02, ifhe had satisfied the requirements for
early retirement as ofthe date of inception of Total and Permanent Disability, or
B.
requirements for early retirement, and
Section 3.05, ifhe had not satisfied the
C. Either such benefit shall be based on his Credited
Service and Average Earnings as ofthe date of inception of Total and Permanent Disability.
If the Participant's Total and Permanent Disability ceases prior to his Normal Retirement Date
and he is re-employed by the County within 60 days following the date such Total and
Permanent Disability ceases, his employment will be deemed to have been continuous; provided
that the period beginning with the first month for which he received a disability payment and
ending with the date of reemployment will not be considered as Credited Service for purposes of
the Plan.
(b) Non-Employment Connected Disability. Ifa Participant becomes
Totally and Permanently Disabled from a cause (i) not arising out of and in the course of his
employment and (ii) other than specified in Section 3.03(a)(3) after the completion of five or
more years of Credited Service, he shall be entitled to a disability benefit in accordance with the
following provisions ofthis Section:
(1) Disability Date and Proof of Disability. The Disability
Retirement Date of a Participant shall be the date defined in Section 3.03-(a)(l). Proof of
disability shall be the same as that required in Section 3.03-(a)(4).
(2) Disability Benefit.
A. Basic Benefit. The monthly retirement benefit
payable to a Participant on his Disability Retirement Date shall be an amount equal to 1 % of his
Average Earnings multiplied by his Credited Service up to his Disability Retirement Date,
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reduced by any monthly payment received under Workmen's Compensation, or if Workmen's
Compensation is paid in a lump-sum payment, the monthly payments otherwise payable to the
Participant under the Plan shall be reduced by an amount which equitably adjusts, as determined
by the Board, for the amount to which the Participant is eligible under Workmen's
Compensation.
B. Adiusted Benefit. The amount of monthly
retirement income provided under paragraph (2) above, shall be adjusted by the cost-of-living
adjustment as provided in Section 3.07 upon commencement of retirement income payments.
(3) Payment of Disability Benefit. The monthly retirement
benefit to which a Participant is entitled under Section 3.03-(b)(2) in the event of his Total and
Permanent Disability shall be payable on the first day of each month. The first payment shall be
made as of the Participant's Disability Retirement Date, and the last payment shall be the
payment due next preceding the earlier of: (a) his date of death, subject to the provisions of
Section 4.02 or (b) the cessation of his Total and Permanent Disability prior to his Normal
Retirement Date.
(4) Termination of Disability Benefit. If the Participant's Total
and Permanent Disability ceases prior to his Normal Retirement Date and he does not reenter the
employ of the County within 60 days after his recovery, all rights ofthe Participant in and to a
Disability Retirement benefit shall cease and he shall be entitled solely to the benefits provided
m:
A. Section 3.03, ifhe had satisfied the requirements for
early retirement as of the date of inception of Total and Permanent Disability, or
B.
requirements for early retirement, and
Section 3.05, ifhe had not satisfied the
C. Either such benefit shall be based on his Credited
Service and Average Earnings as ofthe date of inception of Total and Permanent Disability.
If the Participant recovers from Total and Permanent Disability prior to his Normal Retirement
Date and returns to the employ ofthe County within 60 days following the date of such recovery,
his employment will be deemed to have been continuous; provided that the period beginning
with the first month for which he received a disability benefit to the date of reemployment will
not be considered as Credited Service for purposes of the Plan.
3.04 Delayed Retirement. Delayed retirement under the Plan is retirement from the employ of
the County after the Normal Retirement Date. A Participant may remain in the active employ of
the County beyond his Normal Retirement Date only at the request of the Board and for such
periods of additional employment as shall be mutually agreed upon; provided that the Plan's
administrator shall not interpret this sentence in a manner that would violate the Age
Discrimination in Employment Amendments of 1986, as amended. In the event of delayed
retirement, payment of the retirement benefit shall be governed by the following provisions of
this Section:
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(a) Delayed Retirement Date. The Delayed Retirement Date of a
Participant shall be the first day ofthe month coincident with or next following the date he
actually retires from the employ ofthe County after his Normal Retirement Date.
(b) Amount of Retirement Benefit. The monthly retirement benefit
payable to a Participant who retires on his Delayed Retirement Date shall be an amount
computed in the same manner as for normal retirement in accordance with Section 3.01-(b), but
based on Credited Service and Average Earnings as of his actual retirement date; provided,
however, such amount shall not be less than the monthly benefit the Participant would have
received had he retired on his Normal Retirement Date.
(c) Payment of Retirement Benefit. The retirement benefit payable in
the event of delayed retirement shall be payable on the first day of each month. The first
payment shall be made on the Participant's Delayed Retirement Date and the last payment shall
be the payment due next preceding his date of death, subject to the provision of Section 4.02;
provided, however, a Participant may modify the amount and conditions of payment by electing
an optional form of payment in accordance with Section 5.
3.05 Enhanced Early Retirement for 1996. Participants who have attained, or who will have
attained, the age of 50 on or before December 31, 1996, and who have completed 5 years of
Credited Service as of July 1, 1996, and who were employed by Augusta-Richmond County on
September 3, 1996, may elect to receive retirements benefits under this Section. Such election
must be made on a form designated by Augusta-Richmond County between October 1, 1996 and
4:00 p.m. on December 23, 1996. Any Employee electing to retire early pursuant to this Section
shall have until 4:00 p.m. on the seventh (7th) day following such election to revoke same.
(a) Enhanced Early Retirement Date. The Enhanced Early Retirement
Date of a Participant shall be the first day ofthe month immediately following the date he retires
from the employ of the County under the provisions ofthis Section.
(b) Amount of Retirement Benefit. The monthly retirement benefit
payable to a Participant who retires on his Enhanced Early Retirement Date shall be an amount
equal to: (a) 1 % ofthe Participant's Average Earnings multiplied by (b) his Credited Service on
and after January 1, 1977 plus an additional ten (10) years of service to be added to the years of
Credited Service for purposes of computing the amount of the retirement benefit, up to a
maximum of one hundred percent (100%) of Average Earnings for the Participant's high three
(3) years of Earnings, any contrary provision ofthis Section notwithstanding. The amount of the
monthly Enhanced Retirement Benefit shall not be reduced for any month or time period by
which the Enhanced Early Retirement Date of a Participant precedes his Normal Retirement
Date, notwithstanding any other provision of this the Plan.
( c) Prerequisite for Electing Early Retirement. Any Participant
electing Enhanced Early Retirement shall be required to execute a covenant not to sue in favor of
Richmond County, Georgia and Augusta-Richmond County, Georgia and its officials, agents,
and employees for any and all claims arising out of such Employee's employment by Richmond
County, Georgia and/or Augusta-Richmond County, Georgia, and agreeing not to seek or accept
any further employment by Augusta-Richmond County, or its Constitutional and elected
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officials. This Section shall not be construed as prohibiting any such person from seeking any
elective position by the State of Georgia or Augusta-Richmond County.
3.06 Vesting and Termination of Employment.
(a) Participant, other than a department head appointed as such by
Richmond County, who terminates employment with the County before completing 5 years of
Credited Service, for any reason other than death or retirement, will receive a lump-sum cash
amount equal to the total of his Contributions with interest, payable within 60 days after his date
oftermination.
(b) A Participant, other than a department head appointed as such by
Richmond County, who terminates employment with the County for any reason other than death
or early retirement, after the completion of at least 5 years of Credited Service will receive a
deferred retirement benefit beginning on his Normal Retirement Date, provided he is then alive,
equal to the monthly benefit computed in the same manner as for normal retirement under
Section 3.01 (b)(l).
( c) A Participant who is appointed a department head by Richmond
County and who terminates employment with the County for any reason other than death or early
retirement will receive a deferred retirement benefit beginning on his Normal Retirement Date,
provided he is then alive, equal to the monthly benefit computed in the same manner as for
normal retirement under Section 3.01(b)(1).
(d) Notwithstanding anything in the Plan to the contrary, upon
approval from the Commission, which approval shall not be unreasonably withheld, a Participant
or Beneficiary who is entitled to receive benefits under the Plan shall be entitled to receive a
lump sum payment ofthe Participant's Contributions with Interest in lieu of receiving benefits
under the Plan; provided that such election must be made within 4 years after the Participant
terminates employment and before the Participant or Beneficiary is otherwise entitled to benefits
under the Plan.
3.07 Cost of Living Adjustment of Benefits.
(a) Definition of Terms Used in This Section.
(1) "Current Cost-of-Living Index" means the average ofthe
monthly Consumer Price Index for the 12 month period ending December 31 each year as
determined by the Bureau of Labor Statistics ofthe United States Department of Labor for all
items and major groups, United States city average.
(2) "Participant Base Index" for any Participant who dies or
retires under the provisions ofthe Plan an or after January 1, 1977, means the average of the
Consumer Price Index for the 12 month period ending prior to the date of death or retirement. In
the event the base year used in computing the monthly Consumer Price Index should be changed
by the Bureau of Labor Statistics, the Board, with the advice of the Plan actuary, shall adjust the
Participant Base Index of each retired Participant with benefit payments commencing during the
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first year in which such change was made so as to effect the original intent of this Section in an
equitable manner.
(3) "Adjusted Participant Index" means the Participant Base
Index adjusted for all percentage adjustments made in benefits prior to the current Annual
Adjustment Date.
(4) "Annual Adjustment Date" means March 1 of each year
commencing March 1, 1977 as to any Participant who dies or retires on or after January 1, 1977.
(b) Annual Adjustment. The Board shall ascertain the Current
Cost-of-Living Index as of January 1 each year and the benefits being paid under Sections 3, 4,
or 5 to any Participants, Beneficiary, or Joint Annuitant, as previously adjusted under this
Section, shall be further adjusted as ofthe Annual Adjustment Date as follows:
(1) Ifthe Current Cost-of-Living Index is more than 100% of
the Adjusted Participant Index, the benefit shall be increased by a percentage equal to the
difference between: (a) the percentage representing the Current Cost-of-Living Index divided by
the Adjusted Participant Index and (b) 100%.
(2) Ifthe Current Cost-of-Living Index is less than 100% ofthe
Adjusted Participant Index, the benefit shall remain unchanged.
(3) Notwithstanding the foregoing provisions ofthis Section,
no increase in the amount of the monthly retirement benefit due to changes in the Current
Cost-of-Living Index, effective at any Annual Adjustment Date, shall be in excess of5% of the
amount of the monthly retirement benefit payable immediately prior to such date.
3.08 Payment of Small Benefits. If a Participant's monthly benefit payable under any
provision of Section 3 is less than $20 per month, the actuarially determined equivalent of such
monthly benefit may be paid in a single-sum cash settlement.
3.09 Required Distribution Rules Effective January 1, 1987 Through December 31, 2002.
(a) Payment to the Participant.
(1) Any other provision of the Plan notwithstanding, the Plan
will cash-out each Participant's Accrued Benefit, or will begin annuity payments, no later than
the April 1 following the calendar year in which he retires, or the later calendar year in which he
reaches age 70Yz.
(2) The Plan will pay the Accrued Benefit over a period not
extending beyond the Participant's lifetime or life expectancy, or over a period not extending
beyond. the joint and last survivor life expectancies ofthe Participant and his spouse or other
beneficiary, using age(s) attained as of the end of the calendar year in which the Participant
retires (or reaches age 70Yz iflater), and the Accrued Benefit as of that date. However, ifthe
beneficiary of a joint and survivor annuity form of payment is not the spouse and is more than 10
years younger than the Participant, payments to the beneficiary will not exceed the applicable
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percentage of the Participant's benefit payments required by the incidental benefit rule. The
Commission will not recalculate the life expectancy(s).
(b) Participant's Death After Benefits Begin. If the Participant dies
after his payments have begun in a survivor annuity form, the Commission will pay the survivor
benefits at least as rapidly as under the form of annuity in effect before his death.
(c) Participant's Death Before Benefits Begin. If the Participant dies
before his payments have begun, the Commission will pay his entire Accrued Benefit no later
than December 31 of the calendar year which contains the fifth anniversary of his death.
However, this five-year rule will not apply ifthe primary Beneficiary is an individual and
circumstances permit the Commission to use the exception described below.
(1) Surviving Spouse as Primary Beneficiary. Ifthe
Participant's surviving spouse is the Beneficiary, the Commission will begin payments not later
than the end ofthe calendar year during which the Participant would have reached age 70Yz, and
will continue payments over a period not extending beyond the Participant's spouse's life
expectancy, using age attained as of that date and not recalculated.
(2) Non-Spouse Primary Beneficiary. If the Beneficiary is an
individual other than the Participant's spouse, the Commission will begin payments not later than
the last day ofthe calendar year following the year in which the Participant's death occurs, and
will continue payments over a period not extending beyond the Beneficiary's life, or life
expectancy determined as of that date and not recalculated. If the Beneficiary dies before
receiving 120 payments under the ten years certain and life annuity described in Section 5.02, the
Commission will continue to use the primary Beneficiary's life expectancy for purposes of
making payments to an individual contingent Beneficiary.
(d) Compliance with Code Section 401(a)(9). Effective January 1,
1987, it is the intent ofthe Commission that this Section provide that the beginning dates and
payment periods of benefits payable to each Participant and Beneficiary will be within the
limitations permitted under Code Section 401 (a)(9), as in effect from time to time, and the
proposed regulations under Code Section 401 (a)(9) published in the Federal Register on July 27,
1987,52 FR 28070. If there is any discrepancy between this Section 3.09 and Code Section
401(a) (9) and its associated regulations, that Code Section and regulations will prevail.
3.10 Required Distribution Rules Effective January 1, 2003.
(a) General Rules.
(1) Precedence. The requirements of this article will take precedence over
any inconsistent provisions of the Plan.
(2) Requirements of Treasury Regulations Incorporated. All distributions
required under this Section 3.10 will be determined and made in
accordance with the Treasury regulations under Section 401 (a)(9) ofthe
Internal Revenue Code.
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(b) Time and Manner of Distribution.
(I) Required Beginning Date. The Participant's entire interest will be
distributed, or begin to be distributed, to the Participant no later than the
participant's Required Beginning Date.
(2) Death of a Participant Before Distributions Begin. Ifthe Participant dies
before the distributions begin, the Participant's entire interest will be
distributed, or begin to be distributed, no later than as follows:
A. Ifthe Participant's surviving spouse is the Participant's sole Designated
Beneficiary, then distributions to the surviving spouse will begin by December 31 ofthe calendar
year immediately following the calendar year in which the Participant died, or by December 31
of the calendar year in which the Participant would have attained age 70 1/2, if later.
B. Ifthe 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.
C. If there is no Designated Beneficiary as of September 30 of the year
following the year ofthe Participant's death, the Participant's entire interest will be distributed
by December 31 ofthe calendar year containing the fifth anniversary ofthe Participant's death.
D. 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 Section 3.1 O(b )(2), other than section 3.1 O(b )(2)A., will apply as if
the surviving spouse were the participant.
F or purposes of this section 3.1 O(b )(2) and section 3.1 O( e), distributions are considered to begin
on the Participant's Required Beginning Date (or, if section 3.1 O(b )(2)D. applies, the date
distributions are required to begin to the surviving spouse under section 3.1 O(b )(2)A.). 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 section 3.10(b)(2)A.), the date distributions are considered to begin
is the date distributions actually commence.
(3) Form of Distribution. Unless the Participant's interest is distributed in the
form of an annuity purchased from an insurance company or in a single
sum on or before the Required Beginning Date, as of the first distribution
calendar year distributions will be made in accordance with Sections
3.09(c), 3.09(d) and 3.09(e) hereof. Ifthe Participant's interest is
distributed in the form of an annuity purchased from an insurance
company, distributions thereunder will be made in accordance with the
requirements of Code Section 401 (a)(9) and the Treasury regulations.
Any part of the Participant's interest which is in the form of an individual
account described in Code Section 414(k)will be distributed in a manner
satisfying the requirements of Code Section 401(a)(9) and the Treasury
regulations that apply to individual accounts.
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(c) Determination of Amount to be Distributed Each Year.
(1) General Annuity Requirements. If the Participant's interest is paid in the
form of annuity distributions under the Plan, payments under the annuity
will satisfy the following requirements:
A. the annuity distributions will be paid in periodic payments made at
intervals not longer than one year;
B. the distribution period will be over a life (or lives) or over a period certain
not longer than the period described in section 4 or 5;
C. once payments have begun over a period certain, the period certain will
not be changed even ifthe period certain is shorter than the maximum permitted;
D. payments will either be nonincreasing or increase only as follows:
(i) by an annual percentage increase that does not exceed the
annual percentage increase in a cost-of-living index that is based on prices of all items and issued
by the Bureau of Labor Statistics;
(ii) to the extent ofthe reduction in the amount of the
participant's payments to provide for a survivor benefit upon death, but only ifthe beneficiary
whose life was being used to determine the distribution period described in section 4 dies or is no
longer the participant's beneficiary pursuant to a qualified domestic relations order within the
meaning of section 414(p);
(iii) to provide cash refunds of employee contributions upon the
participant's death; or
(iv) to pay increased benefits that result from a plan
amendment.
(2) Amount Required to be Distributed by Required Beginning Date. 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 section 3.10(b)(2)A. or
3.1 O(b )(2)B.) 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 ofthe Participant's
benefit accruals as of the last day of the first distribution calendar year will
be included in the calculation ofthe amount ofthe annuity payments for
payment intervals ending on or after the Participant's Required Beginning
Date.
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(3) Additional Accruals After First Distribution Calendar Year. Any
additional benefits accruing to the Participant in a calendar year after the
first distribution calendar 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.
(d) Requirements for Annuity Distributions that Commence During Participant's
Lifetime.
(1) Joint Life Annuities Where the Beneficiary is Not the Participant's
Spouse. Ifthe Participant's interest is being distributed in the form of a
joint and survivor annuity for the joint lives of the Participant and a
nonspouse 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 table set forth in Q&A-2 of section
1.401 (a)(9)-6T ofthe Treasury regulations. Ifthe form of distribution
combines a joint and survivor annuity for the joint lives of the Participant
and a nonspouse beneficiary and a period certain 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
(2) Period Certain Annuities. 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 the Uniform Lifetime Table set forth in
section 1.401(a)(9)-9 ofthe 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 70, the applicable distribution
period for the Participant is the distribution period for age 70 under the
Uniform Lifetime Table set forth in section 1.401(a)(9)-9 ofthe Treasury
regulations plus the excess of70 over the age of the Participant as ofthe
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 ofthe Participant's applicable
distribution period, as determined under this Section 3.09(d)(2), or the
joint life and last survivor expectancy ofthe Participant and the
Participant's spouse as determined under the Joint and Last Survivor Table
set forth in section 1.401 (a)(9)-9 of the Treasury regulations, using the
Participant's and spouse's attained ages as ofthe Participant's and
spouse's birthdays in the calendar year that contains the annuity starting
date.
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(e) Requirements for Minimum Distributions Where Participant Dies Before Date
Distributions Begin.
(1) Participant Survived by Designated Beneficiary. Ifthe Participant dies
before the date distribution of his or her interest begins and there is a
Designated Beneficiary, the Participant's entire interest will be distributed,
beginning no later than the time described in section 3.1 O(b )(2)A. or
3.10(b)(2)B., 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
ofthe beneficiary's birthday in the calendar year immediately following the calendar year ofthe
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 ofthe
beneficiary's birthday in the calendar year that contains the annuity starting date.
(2) No Designated Beneficiary. Ifthe Participant dies before the date
distributions begin and there is no Designated Beneficiary as of September
30 ofthe year following the year of the Participant's death, distribution of
the Participant's entire interest will be completed by December 31 of the
calendar year containing the fifth anniversary ofthe participant's death.
(3) Death of Surviving Spouse Before Distributions to Surviving Spouse
Begin. If the Participant dies before the date distribution of his or her
interest begins, the Participant's surviving spouse is the Participant's sole
Designated Beneficiary, and the surviving spouse dies before distributions
to the surviving spouse begin, this section 5 will apply as ifthe surviving
spouse were the Participant, except that the time by which distributions
must begin will be determined without regard to section 2.02(a).
(f) Definitions. For purposes ofthis Section 3.1 0, the capitalized terms used herein
shall have the following meanings:
(1) Designated Beneficiary. The individual who is designated as the
Beneficiary under Section 4.04 ofthe Plan and is the designated
beneficiary under section 401 (a)(9) ofthe Internal Revenue Code and
section 1.401(a)(9)-I, Q&A-4, of the Treasury regulations.
(2) Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the
Participant's death, the first distribution calendar year is the calendar year
immediately preceding the calendar year which contains the Participant's
Required Beginning Date. For distributions beginning after the
Participant's death, the first distribution calendar year is the calendar rear
in which distributions are required to begin pursuant to section 3.1 O(b )(2).
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(3) Life Expectancy. Life expectancy as computed by use ofthe Single Life
Table in section 1.401(a) (9)-9 ofthe Treasury regulations.
(4) Required Beginning Date. April 1 ofthe calendar year following the later
of the calendar year in which the Participant attains age 70Yz or the
calendar year in which the Participant retires from employment with the
City.
3.11 Code Section 415 Limit.
(a) Definitions. When used in this Section 3.11, the following terms
shall have the definitions set forth in this Section 3.11(a).
(1) Defined Benefit Dollar Limitation.
A. Effective as ofJanuary 1, 1977, the "Defined
Benefit Dollar Limitation" is $75,000 (subject to adjustments required under applicable law for
employee contributions) as adjusted, effective January 1 of each year, under Section 415(d) of
the Code in such manner as the Secretary of Treasury shall prescribe, and payable in the form of
a straight life annuity. A limitation as adjusted under Section 415( d) will apply to limitation
years ending with or within the calendar year for which the adjustment applies.
B. Effective as ofJanuary 1, 1983, the "Defined
Benefit Dollar Limitation" is $90,000 (subject to adjustments required under applicable law for
employee contributions) as adjusted, effective January 1 of each year, under Section 415(d) of
the Code in such manner as the Secretary of Treasury shall prescribe, and payable in the form of
a straight life annuity. A limitation as adjusted under Section 415( d) will apply to limitation
years ending with or within the calendar year for which the adjustment applies.
C. Effective as of January 1,2002, the "Defined
Benefit Dollar Limitation" is $160,000 (subject to adjustments required under applicable law for
employee contributions) as adjusted, effective January 1 of each year, under Section 415(d) of
the Code in such manner as the Secretary of Treasury shall prescribe, and payable in the form of
a straight life annuity. A limitation as adjusted under Section 415( d) will apply to limitation
years ending with or within the calendar year for which the adjustment applies.
(2) Defined Benefit Compensation Limitation. The "Defined
Benefit Compensation Limitation" is 100% of Participant's average compensation for his or her
high 3 years of employment with the City.
(3) Maximum Permissible Benefit. The "Maximum
Permissible Benefit" is the lesser of the Defined Benefit Dollar Limitation or the Defined Benefit
Compensation Limitation (both adjusted where required, as provided in paragraphs (A) of (B) of
this Section 3.11 (b)(1).
(4) Minimum Age.
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A. Effective as of January 1, 1977, the "Minimum
Age" is 55.
B. Effective as of January 1, 1983, the "Minimum
Age" is 62.
(5) Maximum Age. Effective as ofJanuary 1, 1983, the
"Maximum Age" is 65.
(b) Limitation on Benefits.
(1) Effective January 1, 1977 and subject to this Section 3.11,
in no event will the annual benefits payable to any Participant exceed the Maximum Permissible
Benefit at the time the Participant ceases to accrue Credited Service.
(2) In accordance with Code Section 415(b)(10),
notwithstanding anything in this Section 3.11 to the contrary, for purposes of Employees who
became Participants before January 1, 1990, the benefit limitations contained in this Section 3.11
shall not be less than such Participant's Accrued Benefit under the Plan (as determined without
regard to any Plan amendment made after October 14, 1987).
( c) Adjustments to the Defined Benefit Dollar Limitation.
(1) Effective as of January 1, 1977, if the retirement benefit of
a Participant begins prior to the Minimum Age, the Defined Benefit Dollar Limitation applicable
to the Participant at such earlier age is an annual benefit payable in the form of a straight life
annuity beginning at the earlier age that is the Actuarial Equivalent of the Defined Benefit Dollar
Limitation applicable to the Participant at the Minimum Age (adjusted as required pursuant to
this Section 3.11). The Defined Benefit Dollar Limitation applicable at an age lesser than the
Minimum Age is determined as the lesser of: (i) the actuarial equivalent (at such age) of the
Defined Benefit Dollar Limitation computed using the interest rate and mortality table (or other
tabular factor) specified in Section 1.02 ofthe Plan and (ii) the actuarial equivalent (at such age)
of the Defined Benefit Dollar Limitation computed using a 5 percent interest rate and the
applicable mortality table as defined in Section 1.02 ofthe Plan. Any decrease in the Defined
Benefit Dollar Limitation determined in accordance with this Section 3.11 shall not reflect a
mortality decrement if benefits are not forfeited upon the death ofthe Participant. If any benefits
are forfeited upon death, the full mortality decrement is taken into account.
(2) Effective as ofJanuary 1, 1983, ifthe benefit of a
Participant begins after the Participant attains the Maximum Age, the Defined Benefit Dollar
Limitation applicable to the Participant at such later age is the annual benefit payable in the form
of a straight life annuity beginning at the later age that is actuarially equivalent to the Defined
Benefit Dollar Limitation applicable to the Participant at the Maximum Age (adjusted as
required pursuant to this Section 3.11). The actuarial equivalent of the Defined Benefit Dollar
Limitation applicable at an age after the Maximum Age is determined as (i) the lesser ofthe
actuarial equivalent (at such age) ofthe Defined Benefit Dollar Limitation computed using the
interest rate and mortality table (or other tabular factor) specified in Section 1.02 of the Plan and
(ii) the actuarial equivalent (at such age) ofthe Defined Benefit Dollar Limitation computed
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using a 5 percent interest rate assumption and the applicable mortality table as defined in Section
1.02 ofthe Plan. For these purposes, mortality between the Maximum Age and the age at which
benefits commence shall be ignored.
(3) Notwithstanding anything in this Section 3.11 to the
contrary, benefit increases resulting from the increase in the Defined Benefit Dollar Limitation
pursuant to Section 3.11 (a)(1)C. shall be limited to all Participants who have one hour of
Credited Service on or after the first day ofthe first limitation year ending after December 31,
2001.
(4) Notwithstanding anything in this Section 3.11 to the
contrary, in the case of a Participant who has fewer than 10 years of Credited Service, the
Defined Benefit Dollar Limitation shall be multiplied by a fraction, (i) the numerator of which is
the number of years of Credited Service and (ii) the denominator of which is 10.
(5) Notwithstanding anything in this Section 3.11 to the
contrary, effective as of January 1, 1987, the annual benefit of any Participant who is a police
officer or firefighter and who has at least 15 years of Credited Service may be determined
without regard to Section 3.11(c)(1).
(d) For distributions commencing prior to January 1,2002 and for
Participants who do not have one hour of Credited Service after this date, the City shall, to the
extent required by the Economic Growth and Tax Relief Reconciliation Act of2001 and in
accordance with the Code, apply the limitations contained in Code Section 415, as in effect at the
time the distribution commenced; subject to the disregard of Code Section 415(e) for
distributions occurring after January 1,2000.
(e) Effective as ofJanuary 1, 1977 through December 31,1999, the
limitation established by Section 415(e) ofthe Code (as in effect from time to time) shall apply
to the calculation of any Participant's annual benefit.
3.12 Rollover Distributions. Except where otherwise provided, Section 3.12 shall apply to
benefits payable, but only to the extent required by the plan qualification rules of Section 401(a)
ofthe Code.
(a) Effective January 1, 1993, notwithstanding any contrary provision
ofthe Plan, a Distributee may elect, at the time and in the manner prescribed by the City, to have
any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover.
(b) The special capitalized terms used only in this Section 3.12 shall
have the meanings specified below:
(1) "Direct Rollover" means a payment by the Plan to the
.Eligible Retirement Plan specified by the Distributee.
(2) "Distributee" means a Participant. In addition, a
Participant's surviving spouse and a Participant's spouse or former spouse who is the alternate
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payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are
Distributees with regard to the interest ofthe spouse or former spouse.
(3) "Eligible Retirement Plan" means an individual retirement
account described in Section 408(a) of the Code, an annuity plan described in Section 403(a) of
the Code, an annuity contract described in Section 403(b) ofthe Code, or a qualified trust
described in Section 401(a) of the Code that accepts the Distributee's Eligible Rollover
Distribution. Effective for Plan Years ending before January 1, 2002, in the case of an Eligible
Rollover Distribution to the Employee's or former Employee's surviving spouse, an Eligible
Retirement Plan shall mean only an individual retirement account or individual retirement
annuity. Effective as of January 1,2002, the definition of "Eligible Retirement Plan" shall also
apply to an annuity contract described in Section 403(b) ofthe Code, an eligible plan under
Section 457(b) ofthe Code which is maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a state and which agrees to
separately account for amounts transferred into such plan from this Plan, and in the case of a
distribution to an Employee's surviving spouse, or to a spouse or former spouse who is the
alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the
Code.
(4) "Eligible Rollover Distribution" means any distribution of
all or any portion ofthe Accrued Benefit to the credit ofthe Distributee, except that an Eligible
Rollover Distribution does not include: (1) 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)
ofthe Distributee or the joint lives (or joint life expectancies) of the Distributee and the
Distributee's designated Beneficiary, or for a specified period often years or more; (2) any
distribution to the extent such distribution is required under Section 401 (a)(9) of the Code; and
(3) the portion of any distribution that is not includible in gross income. Effective as of January
1,2002, notwithstanding the foregoing, any amount that is distributed on account of hardship, to
the extent allowed under the Plan, shall not constitute an Eligible Rollover Distribution.
SECTION 4
DEATH BENEFITS
4.01 Death Prior to Retirement.
(a) Non-Duty Connected Death. If the employment of a Participant is
terminated by reason of his death prior to his Normal Retirement Date and such death was not
the result ofthe Participant actively performing the prescribed duties of his job, there shall be
payable to his surviving spouse or, if no spouse survives, then to his designated Beneficiary, a
lump-sum cash amount equal to the total amount ofthe Participant's Contributions with Interest.
(b) Duty Connected Death.
(1) If the employment of a Participant is terminated by reason
of his death while actively performing the prescribed duties of his job and not resulting from any
misconduct or willful negligence of the Participant, the spouse (if any) of such deceased
Participant will receive a monthly benefit equal to twenty-five percent (25%) of the Participant's
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Average Earnings at date of death, such benefit to commence on the first day of the month
following the last payment of: (a) any monthly benefits provided under the Workmen's
Compensation Laws of Georgia, or (b) if paid in a lump-sum amount, the last monthly payment
which would otherwise be payable if such lump-sum payment is equitably adjusted on the basis
of the monthly amount to which the Participant would be entitled under such law. The monthly
benefit shall be payable until the spouse ofthe deceased Participant dies or remarries; provided,
however, in the event ofthe spouse's death while a minor child or children ofthe deceased
Participant survive, the same monthly benefit shall continue for the benefit of such child or
children, in equal monthly shares, to the earlier of: (a) the marriage or (b) attainment of age 18 as
to each child.
(2) In the event of the death of a Participant described in
paragraph (b)( 1) of this Section, who does not leave a surviving spouse but leaves a surviving
child or children, the legal guardian of such children shall receive on their behalf the benefits
provided in paragraph (b)(1) of this Section.
(3) If no spouse or children survive the deceased Participant, a
lump-sum cash amount equal to the total amount ofthe Participant's contributions with interest
shall be paid to his designated Beneficiary.
4.02 Death After Retirement. If a Participant dies subsequent to his retirement and had not
elected an optional form of payment in accordance with Section 5, or had elected to receive a
deferred benefit under Section 3.02(b)(l) or Section 3.05(b) but such benefit had not commenced,
his Beneficiary shall receive a lump-sum cash amount equal to the excess, if any, of (a) the
Participant's Contribution with Interest, over (b) the total monthly payments, if any, made to the
Participant prior to his date of death, such amount to be payable within 60 days following the
Participant's date of death.
4.03 Adjusted Benefit. The amount of monthly retirement benefit provided under this Section
4 shall be adjusted by the cost-of-living adjustment as provided in Section 3.07 upon
commencement of such benefit.
4.04 Designation of Beneficiaries.
(a) Each Participant shall designate a Beneficiary to receive the
benefits, if any, which may be payable in the event of his death pursuant to the provision of
Section 4 or 5. Such designation shall be made in writing on a form provided by the Board and
shall be signed and filed with the Board. The Participant may change his designation from time
to time by filing the proper form with the Board, and each change shall revoke all prior
designations by the Participant. In each such designation the Participant may name one or more
primary Beneficiaries and one or more contingent Beneficiaries. If no Beneficiary designated by
the Participant survives the Participant, the Board may direct the payment of such benefits to (a)
the spouse of the deceased, if living; otherwise, to (b) the descendents of the deceased Participant
per stirpes or on their behalf as provided in Section 10.04; or if none, to (c) the legal
representative ofthe estate ofthe deceased Participant.
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(b) In the event of the death of a Beneficiary who survives the
Participant and who, at his or her death, is receiving benefits as described in paragraph A of this
Section, the remaining benefits, if any, shall be payable to a person designated by the Participant
to receive the remaining benefits, or, if no person was so designated, then to a person designated
by the Beneficiary of the deceased Participant; provided, however, that ifno person so
designated be living upon the occurrence of such contingency, the remaining benefits, if any,
shall be payable to (a) the spouse of the deceased Participant, if living; otherwise to (b) the
descendents of the deceased Beneficiary per stirpes or on their behalf as provided in Section
10.04; or ifnone, to (c) the legal representative ofthe estate ofthe deceased Beneficiary, as the
Board in its sole discretion may determine.
(c) In the event the Board does not direct the payments as specified in
paragraphs A or B of this Section, the Board may elect to have a court of applicable jurisdiction
determine to whom payments should be made, and the Board shall follow such instructions as
the court may give.
SECTION 5
OPTIONAL FORMS OF RETIREMENT INCOME
5.01 Election of Optional Retirement Benefits. A Participant may elect, or may revoke a
previous election and make a new election, at any time 30 days or more prior to his Normal
Retirement Date, Early Retirement Date, Enhanced Retirement Date or Delayed Retirement
Date, whichever is applicable, to have his retirement benefit payable under one of the options
hereinafter set forth in lieu of the retirement benefit he is otherwise entitled to receive under
Section 3.01, 3.02, or 3.04. The benefit shall be paid in accordance with the terms of such option
elected. Election of any option shall be made by the Participant in writing and shall be subject to
approval by the Board. No optional election is available for Disability Retirement (Section
3.03).
5.02 Description of Options. The amount of any optional retirement benefit set forth below
shall be the Actuarial Equivalent of the amount of benefit that would otherwise be payable to the
Participant under the applicable provision of Section 3 without regard to any future cost-of-living
adjustments.
(a) Option A - Ten Years Certain and Life Option. An adjusted
monthly retirement benefit payable to the Participant during his lifetime and, in the event of his
death within a period often years after his retirement, the same monthly amount shall be payable
for the remainder of such ten year period to his Beneficiary.
(b) Option B - Joint and Last Survivor Option. An adjusted monthly
retirement benefit which shall be payable during the joint lifetime ofthe Participant and his Joint
Annuitant, with a previously designated percentage (100%, 75%, or 50%) of the benefit amount
continuing after the death of either during the lifetime ofthe survivor.
The amount of monthly retirement benefit payable under any option selected in accordance with
the provisions ofthis Section shall be adjusted by the cost-of-living adjustment as provided in
Section 3.07; provided, however, that if payments are to be made to an estate the commuted
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value of such payment shall be made in lieu of continuation of monthly payments. Such
commuted value shall be equal to the amount of the lump-sum value of the remaining monthly
payments in the amount ofthe last monthly payment, discounted on such actuarial tables as may
be adopted by the Board, ignoring any future cost-of-living adjustments.
5.03 Joint Annuitant or Beneficiary.
(a) A Participant who elects Option A of Section 5.02(a) shall
designate (in accordance with Section 4.04), on a form provided for that purpose, a person to
receive benefits payable in the event ofthe Participant's death. Such person(s) shall be the
Beneficiary ofthe Participant.
(b) A Participant who elects Option B of Section 5 .02(b) with benefits
payable after his death for another person's lifetime shall, designate, on a form provided for that
purpose a person to receive the benefits which continue to be payable upon the death of the
Participant. Such person shall be the Joint Annuitant of the Participant.
5.04 Cancellation of Election. The election by a Participant of Option B of Section 5.02 shall
be null and void if either the Participant or his designated Joint Annuitant should die before
benefits commence.
SECTION 6
CONTRIBUTIONS
6.01 County Contributions. Contributions by the County shall be paid to the Trustee at such
times and in such amounts as shall be determined by the County, based upon the
recommendations of an actuary. County contributions paid into the Fund shall be used only for
the benefit ofthe Participants and beneficiaries under the Plan.
6.02 Participant Contributions.
(a) Each Employee who becomes a Participant in the Plan must
contribute to the Fund an amount equal to 4% of his Earnings. The Participant will stop making
Contributions as ofthe earlier of: (1) the date he terminates employment for any reason, or (2)
his actual retirement date. All Participant Contributions an or after January 1, 1993 will be made
on a before-tax basis under Code Section 414(h). Participants will make their Contributions by
payroll deduction.
(b) A Participant who was most recently hired before January 1, 1993
may withdraw his Participant Contributions after filing a written application with the Board, on a
form provided by the Board and subject to the following conditions:
(1) The withdrawal will be effective 60 days after the date
when the Board receives the application.
(2) The Participant who withdraws his contributions will
discontinue participation in the Plan as of the date the withdrawal is effective, and he may not
resume participation for a period of 12 months following the withdrawal date. Any such
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Employee who elects to reenter the Plan after December 31, 1992 will continue to participate
until he terminates employment, dies, or retires.
(3) A Participant who withdraws his contributions from the
Plan will forfeit all Credited Service accrued to the date of withdrawal. No Participant whose
most recent date of hire is after December 31, 1992 may withdraw his Contributions before he
terminates employment.
SECTION 7
ADMINISTRATION OF PLAN
7.01 Administration.
(a) Powers of Board. The Board shall control the administration ofthe
Plan hereunder, with all powers necessary to enable it properly to carry out its duties in that
respect. Not in limitation, but in amplification of the foregoing, the Board shall have the power
to construe said Plan and to determine all questions that shall arise thereunder, and shall also
have all the powers elsewhere herein conferred upon it. It shall decide all questions relating to
the eligibility of Employees to participate in the benefits of the Plan, and shall determine the
benefits to which any Participant, Beneficiary, or Joint Annuitant may be entitled under the Plan.
The decisions of the Board upon all matters within the scope of its authority shall be final and
binding upon all parties to this instrument, Participants, and Participants' Beneficiaries and Joint
Annuitants.
(b) The Plan shall be interpreted by the Board and all Plan fiduciaries
in accordance with the terms of the Plan and their intended meanings. However, the Board and
all Plan fiduciaries shall have the discretion to make any findings of fact needed in the
administration of the Plan, and shall have the discretion to interpret or construe ambiguous,
unclear or implied (but omitted) terms in any fashion they deem to be appropriate in their sole
judgment. The validity of any such finding of fact, interpretation, construction or decision shall
not be given de novo review if challenged in court, by arbitration or in any other forum, and shall
be upheld unless clearly arbitrary or capricious. To the extent the Board or any Plan fiduciary
has been granted discretionary authority under the Plan, the Board's or Plan fiduciary's prior
exercise of such authority shall not obligate it to exercise its authority in a like fashion thereafter.
If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning,
as demonstrated by consistent interpretations or other evidence of intent, or as determined by the
Board in its sole and exclusive judgment, the provision shall be considered ambiguous and shall
be interpreted by the Board and all Plan fiduciaries in a fashion consistent with its intent, as
determined by the Board in its sole discretion. The Board, acting as a nonfiduciary settlor, may
amend the Plan retroactively to cure any such ambiguity, notwithstanding anything in the Plan to
the contrary. This Section may not be invoked by any person to require the Plan to be
interpreted in a manner which is inconsistent with its interpretation by the Board or by any Plan
fiduciaries. All actions taken and all determinations made in good faith by the Board or by Plan
fiduciaries shall be final and binding upon all persons claiming any interest in or under the Plan.
(c) Records of Board. All acts and determination ofthe Board shall be
duly recorded by the clerk, or under his supervision, and all such records, together with such
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other documents as may be necessary for the administration ofthe Plan shall be preserved in the
custody of such clerk.
(d) Exemption from Liability of Board. The members of the Board,
and each of them, shall be free from all liability, joint, and several, for their acts, omissions and
conduct, and for the acts, omissions and conduct of their duly constituted agents, in the
administration ofthe Plan, and the County shall indemnify and save each of them harmless from
the effects and consequences oftheir acts, omissions, and conduct in their official capacity,
except to the extent that such effects and consequences shall result from their own willful
misconduct.
(e) Miscellaneous.
(1) The Board shall prepare and distribute to the Employees
information concerning the Plan, at the expense ofthe County, in such manner as it shall deem
appropriate.
(2) To enable the Board to perform its functions, the County
shall supply full and timely information of all matters relating to the compensation and length of
service of all Participants, their retirement, death or other cause oftermination of employment,
and such other pertinent facts as the Board may require.
(3) The Board shall be entitled to rely upon all tables,
valuations, certificates, and reports furnished by an actuary, who shall be a member of the
American Academy of Actuaries, or an organization which one or more members is a member of
the American Academy of Actuaries and upon all certificates and reports made by an accountant
selected or approved by the Board. The Board shall be fully protected in respect to any action
taken or suffered by it in good faith in reliance upon the advice or opinion of any actuary,
accountant, or attorney, and all action so taken or suffered shall be conclusive upon each member
of the Board and upon all persons interested in the Plan.
SECTION 8
TRUST FUND AND TRUSTEES
8.01 Trust Fund.
(a) The assets ofthe Fund shall be held, administered, and invested by
the Board. The Fund shall consist of all payments by the County and Participants to the Fund as
provided in Section 6 and earnings from investments. The assets of the Fund shall be valued as
of the end of each Plan Year, and at any other time required by the Board, at the then existing
book and market value.
(b) The Trustee shall maintain a separate permanent record of the
Fund. All decisions ofthe Board and the Trustee in regard to the Fund or any payments or
withdrawals therefrom shall be entered on the permanent record kept by the Trustee and such
permanent record shall be open to inspection by any interested person at all regular business
hours.
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(c) The Board shall keep the Trustee and clerk of the board bonded at
all times in an amount equal to the total Fund in the possession of or under the control of either;
provided, however, that such bond shall not exceed $200,000 as to each party. The bonds shall
also cover any person acting for the Trustee or clerk who in any manner handles any assets of the
Fund or has any discretionary authority regarding same.
8.02 Amendment of Trust. The County shall have the right at any time, by an instrument in
writing duly executed by the Board and to the Trustee, to modify, alter, or amend this Plan and
Trust in whole or in part; provided, however, that the duties, powers, and liability of the Trustee
hereunder shall not be substantially increased without the County's written consent, and
provided further, that no such amendment shall have the effect of revesting in the County any
part ofthe principal or income of the Fund.
8.03 Discontinuance of Trust and Vesting. The County expressly reserves the right to
terminate this Plan and Trust Agreement at any time. Upon termination of the Plan by the
County, or complete discontinuance of Employee or County contributions thereunder, having the
effect of termination, the rights of each Participant to benefits accrued to the date of such
termination or discontinuance, to the extent then funded, shall be nonforfeitable. In either case
the Trustee shall, upon instructions from the County, continue to administer the Fund as provided
in Section 9.02. No part ofthe Fund shall at any time revert to the County unless all benefits for
Participants and their Payees have been provided.
8.04 Powers of Trustee. The Trustee shall have the following powers and authority in the
administration of the Fund to be exercised in accordance with and subject to the provisions of
Section 8.05 hereof:
(a) Purchase of Property. To purchase, or subscribe for, only
securities, stocks, bonds, or other property specified in Section 8.05 and to retain the same in the
Fund.
(b) Sale. Exchange. conveyance. and Transfer of Property. To sell,
exchange, convey, transfer, or otherwise dispose of any securities or other property held by the
Fund by private contract or at public auction. No person dealing with the Trustees shall be
bound to see the application ofthe purchase money or to inquire into the validity, expediency or
propriety of any such sale or other disposition.
(c) Exercise of Owner's Rights. To vote upon any stocks, bonds, or
other securities; to give general proxies or powers of attorney with or without power of
substitution; exercise any conversion privileges, subscription rights, or other options, and to
make any payments incidental thereto; to oppose or consent to, or otherwise to participate in,
corporate reorganizations or other changes affecting corporate securities, an to delegate
discretionary powers, and to pay any assessments or charges in connection therewith; and
generally to exercise any ofthe powers of any owner with respect to stocks, bonds, securities, or
other property held as part of the Fund.
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(d) Retention of Cash. To keep such portion of the Fund in cash or
cash balances as the Trustee may, from time to time, deem to be in the best interest ofthe Fund,
without liability for interest thereon.
(e) Execution of Instruments. To make, execute, acknowledge, and
deliver any and all documents of transfer and conveyance and any and all other instruments that
may be necessary or appropriate to carry out the powers herein granted.
(f) Settlement of Claims and Debts. To settle, compromise, or submit
to arbitration any claims, debts, or damages due or owing to or from the Fund, to commence or
defend suits or legal administrative proceedings, and to represent the Fund in all suits and legal
and administrative proceedings, and any expenses incurred for such proceedings shall be paid by
the County.
(g) Emplovment of Agents and Counsel. To employ suitable agents
and counsel and pay their reasonable expenses and compensation; and
(h) Power to do Any Necessary Act. To do all such acts, take all such
proceedings and exercise all such rights and privileges, although not specifically mentioned
herein, as the Trustee may deem necessary to administer the Fund, and to carry out the Purposes
of this Trust. To serve without being required to file any returns or reports of any kind with any
court.
8.05 Investment of Fund.
(a) Effective from January 1, 1977 through January 5, 1998, the
Trustee is authorized to deposit funds held by it with any bank located in Richmond County,
Georgia, as depository. The Trustee shall have authority to invest and reinvest assets ofthe Fund
held for the purpose of paying benefits, but which is not needed for the immediate payment
thereof, as determined by the Trustee, in securities ofthe United States of America, including
securities of agencies of said government; of the State of Georgia; of Richmond County; or any
other county or municipality ofthe State of Georgia; or insured savings in savings and loan
associations and State and National Banks; corporate bonds and debentures or other evidence of
indebtedness assumed or guaranteed by any solvent institution existing under the laws of the
United States of America or any state thereof, interest and which are secured by collateral worth
at least 50% more than the par value of the entire issue of such obligations, but only if not more
than one-third ofthe total value of such required collateral consists of common stock. The Board
may also invest in corporate stocks which are non-assessable dividend paying stocks, common or
preferred, of any solvent corporation created or existing under the laws of the United States or
any state thereof; provided cash dividends of such commons stocks shall have been paid out of
current earnings in at least two of the last three years preceding the purchase, and provided
further, that the Fund shall not own more than (a) 10% ofthe issued and outstanding shares of
anyone corporation of (b) an aggregate of more than 25% of the issued and outstanding shares
of corporate stock of any number of corporations.
(b) Effective January 6, 1998, the County comptroller shall be the
custodian of such fund and shall deposit all contributions to the Plan in a bank or banks, and,
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pursuant to the direction of the pension fund investment committee, which committee shall
consist of the members ofthe Augusta-Richmond County Commission, shall invest and reinvest,
from time to time, and portion thereof not immediately needed for the payment of pensions, in
securities approved by law for the investment of Trust funds; and, in such securities other than
those specifically approved by law for the investment of Trust funds, as the pension fund
investment committee shall deem proper, from time to time; provided, however, that the amount
of the Fund which may be invested in such securities other than those specifically approved by
law for the investment of Trust funds may not exceed fifty percent (50%) of the total amount of
the Fund then outstanding; and in addition thereto, the investment committee may reinvest such
funds in bonds and debentures assumed or guaranteed by any solvent corporation or institution
existing under the laws of the United States of America, or any state thereof, provided such
bonds or debentures are rated at the time of their purchase, by a nationally recognized securities
rating service, as AAA (Aaa); AA (Aa) or A (a) or in lieu thereof, provided such bonds or
debentures are the type in which domestic life insurance companies are permitted to invest under
any applicable provisions of the Official Code of Georgia Annotated, as amended. The amount
ofthe pension fund which may be invested in the bonds and debentures of any once corporation
may not exceed ten percent (10%) of the total amount of such fund then outstanding.
8.06 Taxation. The Board, in its settlor capacity, is authorized to levy a tax from time to time
sufficient to pay the benefits provided under the terms of the Plan. Liabilities of the Fund for the
payment of benefits shall be determined by the Board, based upon the recommendations of an
actuary.
8.07 Resignation of Trustee. The Trustee may resign as Trustee of the Trust at any time by
giving sixty days written notice to the County, or with the consent of the County, the Trustee
may resign at any time. At such time as the resignation becomes effective, the Trustee shall
render to the County an account of its administration of the Fund during the period following that
covered by its last annual account, and shall perform all acts necessary to transfer and deliver the
assets ofthe Fund to its successor.
8.08 Successor Trustees. In the event of vacancy of one or more individuals in the trusteeship
of this Trust occurring at any time, the Board shall designate and appoint qualified successor
Trustee(s) until such individuals are elected by the electorate.
8.09 Liability of Trustee. The Trustee shall not be liable for the making, retention, or sale of
any investment authorized hereunder nor for a failure to make, retain, or sell any investment nor
shall the Trustee be liable for any loss to or diminishment of the Fund, except as shall be due to
its own willful misconduct or lack of good faith. The Trustee shall not be required to make any
inventory, appraisal, or report to any court, or to secure any order of court for the exercise of any
power herein contained.
8.10 Disbursements. Upon written direction (which may be a continuing one) from the Board
as to the name of any person to whom money is to be paid from the Fund and the amount
thereof, checks shall be drawn by the Trustee in the name of the person designated by the Board
and deliver such checks in such manner and amounts and at such time as the Board shall direct.
In the event the Trustee shall deem it necessary to withhold any distribution pending compliance
with legal requirements with respect to probate of wills, appointment of personal representatives,
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payment of or provision for estate or inheritance taxes, or for death duties or otherwise, the
Trustee shall withhold payment pending receipt of the instructions from the County Attorney to
make such distribution.
SECTION 9
AMENDMENT AND TERMINATION
9.01 Amendment of the Plan. The County shall have the right at any time pursuant to
authorization of the Board, to amend any or all of the provisions of the Plan; provided, however,
that no such amendment shall authorize or permit any part of the Fund to be diverted to purposes
other than for the exclusive benefit of Participants and their Payees; and further provided, that no
amendment shall have the effect of revesting in the County any portion of such Fund except such
amounts which remain in the Fund after termination of the Plan and after all liabilities under the
Plan have been satisfied.
9.02 Termination ofthe Plan.
(a) The County expects this Plan to be continued indefinitely but, of
necessity, reserves the right to terminate the Plan and its contributions thereunder at any time by
action of the Board; provided, however, that should the County terminate the Plan or completely
discontinue contributions hereunder so as the amount to a Plan termination, the accrued benefit
of each Participant, to the extent then funded, shall become fully vested and nonforfeitable as the
date oftermination.
(b) In the event oftermination ofthe Plan and upon receipt of written
notice of such termination, the Board shall arrange for the Fund to be apportioned and distributed
in accordance with the following procedure:
(1) The Board shall determine the date of distribution and asset
value of the Fund to be distributed, taking into account the expenses of distribution.
(2) The Board shall determine the method of distribution ofthe
asset value -- that is, whether distribution to each Participant or Payee entitled to benefits shall be
by payment in a lump-sum cash amount, the purchase of an annuity from an insurance company,
or otherwise.
(3) The Board shall apportion the asset value in the priority and
manner set forth below, on the basis that the amount required to provide any given retirement
benefit shall mean the actuarially computed single-sum value of such benefit, except that if the
method of distribution determined under Section 9 .02(b )(2) involves the purchase of an insured
annuity, the amount required to provide the given retirement benefit shall mean the single
premium payable for such annuity:
A. An amount equal to each Participant's
Contributions under the Plan with Interest, less the aggregate amount of any benefit payments
previously made with respect to such Participant, will be determined and such amount
apportioned from the asset value. Such asset value, if insufficient to provide such amounts in
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full will be apportioned among such Participants in proportion to the amounts determined with
respect to them.
B. If there be any asset value remaining after the
apportionment under A. above, apportionment shall next be made with respect to each retired
Participant receiving a retirement benefit hereunder an such date, each person receiving a
retirement benefit on such date on account of a retired (but since deceased) Participant, each
Participant who has, by such date, reached his Normal Retirement Date but has not yet retired, in
the amount required to provide such retirement benefit as of the date of termination of the Plan,
less any apportionment made in A. above, provided that, if such remaining asset value be less
than the aggregate of such amounts, such amounts shall be proportionately reduced so that the
aggregate of such reduced amounts will be equal to such asset value.
C. If there be any asset value remaining after the
apportionments under A. and B. above, apportionment shall next be made with respect to each
active Participant on such date who has reached his Early Retirement Date but has not yet
retired, in the amount required to provide such retirement benefit as of the termination date ofthe
Plan, less any apportionment in A. above, provided that, if such remaining asset value be less
than the aggregate ofthe amounts apportioned hereunder, such latter amounts shall be
proportionately reduced so that the aggregate of such reduced values will be equal to such
remaining asset value.
D. If there be any asset value remaining after the
apportionments under A., B., and C. above, apportionment shall next be made with respect to
each active Participant on such date who has completed at least 10 years of Credited Service and
each former Participant then entitled to a deferred benefit under Section 3.05(b) hereof who has
not, by such date, reached his Normal Retirement Date, none of whom is entitled to an
apportionment under B. above, in the amount required to provide the actuarially determined
value ofthe accrued benefit as ofthe termination date ofthe Plan, less any apportionment in A.
above; provided that, if such remaining asset value be less than the aggregate of the amounts
apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate
of such reduced values will be equal to such remaining asset value.
E. If there be any asset value remaining after
apportionments under A., B., C., and D. above, apportionment shall lastly be made with respect
to each active Participant on such date who is not entitled to an apportionment under B., c., and
D. above, in the amount required to provide the actuarially determined value of the accrued
benefit as of the date of termination of the Plan, less any apportionment in A. above; provided
that, if such remaining asset value be less than the aggregate of the amounts apportioned
hereunder, such latter amounts shall be proportionately. reduced so that the aggregate of such
reduced values will be equal to such remaining asset value.
F. In the event that any asset value remains after the
full apportionments specified in paragraphs A., B., c., D., and E. above, such excess shall revert
to the County.
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(4) The Board shall cause to be distributed, in accordance with
the manner of distribution determined under subsection (b)(2) ofthis Section 9.02, the amounts
apportioned under subsection (b)(3) ofthis Section 9.02.
SECTION 10
MISCELLANEOUS
10.01 Headings. The headings and subheadings in this Plan have been inserted for convenience
of reference only and are to be ignored in any construction ofthe provisions hereof.
10.02 Construction. In the construction of this Plan the masculine shall include the feminine
and the singular the plural in all cases where such meanings would be appropriate. This Plan
shall be construed in accordance with the laws of the State of Georgia.
10.03 Nonalienation. No benefits payable under the Plan will be subject to the claim or legal
process of any creditor of any Participant or Beneficiary, and no Participant or Beneficiary will
alienate, transfer, anticipate, or assign any benefits under the Plan, except that distributions will
be made pursuant to (a) qualified domestic relations orders issued in accordance with Code
Section 414(p), (b) judgments resulting from federal tax assessments, and (c) as otherwise
required by law.
10.04 Legally Incompetent. If any Participant or Payee is a minor, or, in the judgment of the
Board is otherwise legally incapable of personally receiving and giving a valid receipt for any
payment due him hereunder, the Board may, unless and until claim shall have been made by a
duly appointed guardian or committee of such person, direct that such payment or any part
thereof be made to such person's spouse, child, parent, brother, or sister or other person deemed
by the Board to have incurred expense for or assumed responsibility for the expenses of such
person. Any payment so made shall be a complete discharge of any liability under this Plan for
such payment.
10.05 Benefits Supported Onlv Bv Fund. Any person having any claim under the Plan will
look solely to the assets of the Fund for satisfaction. In no event will the County, or any of its
officers, members of the Board, or agents, be liable in their individual capacities to any person
whomsoever, under the provisions ofthe Plan.
10.06 Discrimination. The County, through the Board, shall administer the Plan in a uniform
and consistent manner with respect to all Participants and shall not permit discrimination in favor
of officers, supervisory, or highly paid Employees.
10.07 Limitation of Liability: Legal Actions. It is expressly understood and agreed by each
Employee who becomes a Participant hereunder, that except for its or their willful negligence or
fraud, neither the County, the Trustee, nor the Board shall be in any way subject to any suit or
litigation, or to any legal liability, for any cause or reason whatsoever, in connection with this
Plan or its operation, and each such Participant hereby releases the County, Trustee, Board, and
all its officers and agents from any and all liability or obligation.
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10.08 Claims. Any payment to a Participant, Joint Annuitant, or Beneficiary, or to their legal
representatives, in accordance with the provision ofthis Plan, shall to the extent thereof be in full
satisfaction of all claims hereunder against the Board, Trustee, and the County, any of whom
may require such Participant, Beneficiary, or legal representative, as a condition precedent to
such payment, to execute a receipt and release therefore in such form as shall be determined by
the Board.
10.09 Forfeitures. Forfeitures arising from any cause whatsoever under this Plan shall not be
applied to increase the benefits any Participant would otherwise receive under the Plan at any
time prior to the termination of the Plan or the complete discontinuance of County contributions
hereunder; forfeitures shall be applied to reduce the County's contributions under the Plan in the
then current or subsequent years.
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IN WITNESS WHEREOF, the County has caused this amended Plan to be duly executed
Q :Uo 1
as ofthe ll. day of J~ ~lJut effective as ofthe dates set forth herein.
aT~
(Sea W) ~
Clerk
AUGUSTA GEORGIA, AS SUCCESSOR TO
THE,C(1 ~OUNCJL OF AUGUST A
BY:C U/S ~
Mayor
AUGUSTA GEORGIA, AS SUCCESSOR TO
THE CITY COUNCIL OF AUGUSTA
U<-€~ ~
Mayor
This Ordinance shall be effective as of the dates set forth herein. All ordinances and parts of
Ordinances in conflict with the provisions of this Ordinance are hereby repealed.
APPROVED AND ENACTED by the Augusta-Richmond County Commission, on the
~o7
~6.
day of
June 19
~.~
Mayor
Waive 2nd Reading
Publish in the Augusta Chronicle June 28, 2007
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