HomeMy WebLinkAboutORD 6989 1949 RETIREMENT FND AMEND RESTATE
ORDINANCE NO. 6989
AN ORDINANCE TO AMEND AND RESTATE ORDINANCE NUMBER 6656,
THE CITY OF AUGUSTA 1949 GENERAL RETIREMENT FUND; ADOPTED
; TO PROVIDE FOR SEVERABILITY; TO REPEAL
CONFLICTING ORDINANCES AND FOR OTHER PURPOSES.
CITY OF AUGUSTA
1949 GENERAL RETIREMENT FUND
As Amended and Restated Effective January 1, 1984
(Except as Otherwise Provided Herein)
LEGAL_US_E # 70626292.5
Attachment number 1
Page 2 of 39
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 City .......... ................................. ...................................... ............................... ......... 3
1.06 Code........ .............................. ................................................................................. 3
1.07 Commission......... .... ........................... .................. ..................... .............................4
1.08 Committee. ............... .............................. ........................................................... .....4
1.09 Comptroller.................. ....... ................................. ........ ..........................................4
1.10 Contributions.......................................... ......................................... ............ ...........4
1.11 Credited Service. .................................................................................................... 4
1.12 Deputy Comptroller.......................................... ....................... ........ ....... ..... ...........4
1.13 Earnings.............................................................................................. ....................4
1.14 Effective Date................. .................................. ......................................................5
1.15 Employee..... ............................. ........................................................ ......................5
1.16 Employer or County ............................................................................................... 6
1.17 Fund..................... ........................................................... ........................ ................6
1.18 Joint Annuitant............ ........... ............. .............. ................. .... ................. ...............6
1.19 Mayor........ .... .............. ................................... .............. ... .............................. .........6
1.20 Participant................................................... ................................ ....................... .....6
1.21 Payee........................... ................................................. ....... .............................. .....6
1.22 Pension Fund Investment Committee .................................................................... 6
1.23 Plan..................... .......... ............................................ .......................... ............. .......6
1.24 Plan Year ......... ................... ............ .......... ... ........................ ...................... ........ ..... 6
1.25 Secretary .......... ............................. ................ ..........................................................6
1.26 Total and Permanent Disability ........ ...................................................................... 6
1.27 Trust Agreement or Trust ....................................................................................... 7
1.28 Trustee.................................................... .............................................. .................. 7
SECTION 2 ELIGIBILITY AND P ARTICIP A TION .........................................................7
LEGAL_US_E # 70626292.5
-1-
Item # 59
2.01
SECTION 3
3.01
3.02
3.03
3.04
3.05
3.06
3.07
3.08
3.09
3.10
3.11
3.12
3.13
SECTION 4
4.01
4.02
4.03
4.04
SECTION 5
5.01
5.02
SECTION 6
6.01
6.02
6.03
SECTION 7
7.01
SECTION 8
LEGAL_US_E # 70626292.5
Attachment number 1
Page 3 of 39
TABLE OF CONTENTS
(continued)
Page
Eligibility................... ................. ....... ......................... ............. ................ ...............7
RETIREMENT DATES AND BENEFITS ..................................................... 7
Normal Retirement. ................. ........................ ......................................... ............. 7
Early Retirement. .... ...... .... ....... ... ............................................. ........ .....................8
Disability Retirement. ..... ........................................................ .............. ......... ........9
Delayed Retirement.............................................................................................. 10
Termination of Employment ...................... ....................... .......... ......................... 11
Cost-of- Living Adjustment of Benefits............ ..... .................................. ......... .... 11
Required Distribution Rules Effective January 1, 1987 Through December
31, 2002............... ......................... .............. ...................................... .................... 12
Required Distribution Rules Effective January 1,2003.......................................14
Code Section 415 Limit........................................................................................18
Enhanced Early Retirement for 1996. ................................................................. 20
Special Unreduced Early Retirement. ................................................................. 21
Rollover Distributions. .............................................. .... ................... ...... .............22
Supplemental Retirement Benefit........................... ............ .......................... ....... 23
DEATH BENEFITS............................. .................. ........ ................ ................23
Death Prior to Retirement. ... ............ .... ................................................................23
Death After Retirement. ..... ....... ........................... ..................... ................ .........24
Adjusted Benefit. ..................... ... ................................ ............ ........... ............ .....25
Designation of Beneficiaries. ..... .................... ............................ ........................25
CONTRIBUTIONS.......................................... .................. ............................ 25
City Contributions. . ......................................................................... ............ ....... 25
Participant Contributions. .......... ..... ................................................. ....... ..... .... ... 25
OPTIONAL FORMS OF RETIREMENT INCOME ....................................26
Description of Options. .............. ............. ... ......... ........... .......... ..........................26
Joint Annuitant or Beneficiary. ........... ..... ........................ ..................................26
Cancellation of Election. .. .... .... ..... .... .................................................................27
ADMINISTRATION OF PLAN .................................................................... 27
Administration. ........ ............... ........ .............. ...... .............. ......... ............ ...... ....... 27
TRUST FUND AND TRUSTEES .................................................................28
-ll-
Item # 59
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09
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
10.10
LEGAL_US _ E # 70626292.5
Attachment number 1
Page 4 of 39
TABLE OF CONTENTS
( continued)
Page
Trust Fund. .. ............................. ...................... ................................ ....................28
Amendment of Trust. ............. .... .................................. ............................... .......28
Discontinuance of Trust and Vesting. ................................................................ 29
Powers of the Commission........................... ...................... .................................. 29
Investment of Fund. ....................................................................................... .....29
Taxation. .......................................................... .............................. .... .................30
Resignation of Trustee. ...... .... ............. ............................................................... 30
Successor Trustees. . ..................................... .................................. .................... 30
Disbursements. .... ............................... ........................ ....... .................................31
AMENDMENT AND TERMINATION .......................................................31
Amendment of the Plan. .....................................................................................31
Termination of the Plan. .....................................................................................31
MISCELLANEOUS.......................................................................................33
Headings. ................. ........ ......... .............................. ............. ....... ........................ 33
Construction. ................... .................................................................................... 33
Nonalienation. ............................ ........................................... .... .........................33
Benefits Supported Only By Fund. ....................................................................33
Discrimination. ...................................................................................... .............33
Limitation of Liability; Legal Actions. .............................................................. 33
Claims. ................. ....... ................ .................... ........................................ ............34
Forfeitures. ................................. .......................................... ..............................34
Applications. ....................... ......................... ................ ......................................34
Effect of Extension ofthe Federal Social Security Act. .................................... 34
-lll-
Item # 59
Attachment number 1
Page 5 of 39
CITY OF AUGUSTA
1949 GENERAL RETIREMENT FUND
INTRODUCTION
Effective March 1, 1949, the General Assembly of Augusta, Georgia established the "City of
Augusta 1949 Georgia Retirement Fund," hereinafter referred to as the Plan. Participation in the
Plan was frozen effective as of December 31, 1986, meaning that the Plan only covers
Employees hired on or before December 31, 1986 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 ("SBJPA"), 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.
It is the City'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
determined under the provisions. of the Plan that were in effect when the Commission last
classified him or her as an Employee.
LEGAL_US_E # 70626292.5
1
Item # 59
Attachment number 1
Page 6 of 39
Specifically, the restated Plan honors the following pre-2006 Plan provisions in the following
manner:
Plan Provision Prior Section, Per Relevant Plan Section (as
Ordinances Adopted in 2006)
Continued Participation for those 1,2 2.01
employed on 12/31/87
Age 35 limit on participation 2 Superseded and
inapplicable
Funding: Creation and 3 8
Administration
City Contribution 4 5.01
Employee Contributions 4 5.02
Normal Retirement Benefits 5(1) 3.01
Delayed Retirement Benefits 5(2) 3.04
Early Retirement Benefits 5(6) 3.02
Special Unreduced Early 5(7) 3.10
Retirement (20+ years)
Enhanced Early Retirement 5A 3.09
Benefits
Disability Retirement Benefits 5(5), 7 3.03
Continuity of Service 6 1.11
Amount of Retirement Allowance 7 3.01
Cost of Living Adiustments 76(1) 3.06
Alternative Form of Retirement 8 6
Allowance
Surviving Spouse Benefits; 8A,9 4.01, and 4.02
Benefits for widows of Employees
Killed in Line of Duty
Withdrawal of Contributions 9 5.02(b)
Termination of Employment 9(1) 3.05
Assignment Prohibited 10 10.03
Effect of Extension of Federal 11 10.10
Social Security Act
Plan Construction 12 10.02
The Plan will be administered by the Commission 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.
2
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 7 of 39
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 Employee Contributions with
interest for the Participant who dies before receiving an amount of benefit payments that
at least equal his Employee Contributions with interest.
1.02 Actuarial Equivalent.
(a) 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 of the 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% ofthe 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 of 50% ofthe unloaded male mortality rates and 50% ofthe
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 thirty-six
(36) consecutive calendar months, 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 three (3)
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 Sections 4 or 6.
1.05 City. The city of Augusta, Georgia, successor to the Plan through consolidation by the
City Council of Augusta.
1.06 Code. The Internal Revenue Code of 1986 as amended from time to time, and
regulations or rulings issued thereunder.
LEGAL_US_E # 70626292.5 3 Item # 59
Attachment number 1
Page 8 of 39
1.07 Commission. Augusta-Richmond County Commission, as successor to The City Council
of Augusta, Georgia, which Augusta-Richmond County Commission shall act in the dual
capacity of administrator ofthe Plan and Trustee ofthe Fund.
1.08 Committee. the pension committee consisting of the Augusta-Richmond County
Commission.
1.09 Comptroller. The elected comptroller of Augusta.
1.10 Contributions. The payments made by the Participants to the Fund in accordance with
Section 5.
1.11 Credited Service.
(a) The number of years of uninterrupted and continuous employment (completed
months expressed as a fractional year) ofthe Employee with the Employer from
(i) the date he last entered the employment ofthe Employer, to (ii) the earlier of
his date oftermination of employment for any reason or his actual retirement date.
(b) Credited Service will not be interrupted by:
(1) vacation, or approved leave of absence authorized by the Employer of not
more than ninety days in one calendar year;
(2) voluntary or involuntary service in the Armed Forces ofthe United States
in the time of war;
(3) reelection or reappointment at the end of a term; or
(4) periods of approved leaves of absence during which the Participant incurs
a Total and Permanent Disability within the meaning of Section 3.03,
provided that he recovers from a Total and Permanent Disability and is
reemployed by the Employer as required under Section 3.03(a) or 3.03(b).
(c) For benefit purposes, no Participant will receive any credit for any period of
inactive employment. For vesting purposes, an Employee who has one or more
breaks in employment will receive credit only from his most recent date of
reemployment.
(d) Effective December 12, 1994, notwithstanding anything in the Plan to the
contrary, contributions, benefits, and service credit with respect to qualified
military service shall be provided in accordance with Section 414(u) ofthe Code.
1.12 Deputy Comptroller. The duly commissioned deputy comptroller ofthe City.
1.13 Earnings.
(a)
The total salary, wages, or remuneration paid to the Participant by the Employer
during any Plan Year. Effective as ofJanuary 1, 1998, the term "Earnings" shall
also include any elective deferral (within the meaning of Code Section 402(g)(3))
4
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 9 of 39
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 of the 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 ofthis 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 of this 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 ofthis 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 ofthis 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 of this Section 1.13(b) shall be replaced with
"$200,000". With respect to Plan Years from January 1, 1976through December
31, 1983, "$220,000" in the first sentence ofthis subsection (b) shall be replaced
with "$100,000".
1.14 Effective Date. For 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 March 1, 1949.
1.15 Employee. Any employee, officer, appointee or electee of the Commission as now
constituted or hereafter constituted, and any employee, officer, appointee or electee under
any official of the City as now constituted or hereafter constituted who is elected by the
vote ofthe electorate but excluding:
(a) employees ofthe University Hospital;
(b) the Recorder;
( c) the Assistant Recorder;
(d) employees of the Sinking Fund Commission; and
(e) other officers elected by vote ofthe electorate.
5
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 10 of 39
1.16 Employer or County. Augusta-Richmond County, as successor by consolidation to The
City Council of Augusta and Richmond County, created by 1995 Ga. Laws p. 3648, as
amended.
1.17 Fund. The Fund trust fund created in accordance with the Plan and Trust.
1.18 Joint Anriuitant. The person designated by the Participant to receive payments after the
death ofthe Participant as provided in accordance with Section 3.
1.19 Mayor. The mayor of Augusta, Georgia.
1.20 Participant. An Employee who is eligible to participate in the Plan as provided in Section
2.
1.21 Payee. The Beneficiary or Joint Annuitant designated by the Participant in accordance
with Section 1.04 or 1.18 hereof to receive benefits under the Plan after his death.
1.22 Pension Fund Investment Committee. The pension fund investment committee consisting
of the members of the Augusta-Richmond County Commission-Council, which
committee shall invest the Fund in accordance with Section 8.05.
1.23 Plan. The City of Augusta 1949 General Retirement Fund as contained herein, all
amendments thereto which may hereafter be made and any existing acts of the General
Assembly of Georgia, and or ordinances adopted under the Home Rule provisions of
Georgia law pertaining to the City of Augusta 1949 General Retirement Fund. The Plan
shall include the Trust as hereinafter defined.
1.24 Plan Year. The twelve month period ending December 31 of each year.
1.25 Secretary. The Mayor acting in his capacity as secretary ofthe Committee.
1.26 Total and Permanent Disability.
(a) The Commission shall determine whether a Participant shall be considered
Totally and Permanently Disabled and the Commission shall declare in its
findings whether or not such disability is permanent and total. The Commission
shall base its determination as to whether a Participant is Totally and Permanently
Disabled on whether the Participant is not able, on account of disability received
in the discharge of his employment duties, to adequately discharge the duties of
his job or office, nor ever will be.
(b) Upon a Participant's application to the Comptroller stating that he is Totally and
Permanently Disabled, the chief executive of Augusta or other official as
designated by the Augusta-Richmond County Commission shall immediately
designate a physician to examine the applicant and no such retirement shall be
allowed under Section 3.03 unless the physician so appointed files with the Mayor
as the chief executive of Augusta such physician's affidavit that he has examined
the applicant and found him totally and permanently incapable of pursuing any
gainful occupation; provided, that the applicant if aggrieved by the decision of
6
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 11 of 39
Augusta's physician may designate a physician on his own part who together with
Augusta's physician shall designate a third physician and the decision ofthe
majority of said three (3) physicians shall be the final decision regarding whether
the Participant has incurred a Total and Permanent Disability recommended to the
Commission for its determination, which shall be final and binding.
(c) Notwithstanding anything in this Section 1.26 to the contrary, whether a
Participant is Totally and Permanently Disabled shall be subject to the exclusions
set forth in Section 3.03.
1.27 Trust Agreement or Trust. The agreement of trust between the Commission, in its
capacity as the governing body of the Employer and the Commission, in its capacity as
Trustee, which shall govern the continuation and maintenance of the trust fund, and all
amendments thereto.
1.28 Trustee. The Commission in its capacity as trustee.
1.30 Vested Percentage. Vested Percentage will be determined in accordance with Section
3.05.
SECTION 2
ELIGIBILITY AND PARTICIPATION
2.01 Eligibility. Each Participant in the Plan on December 31, 1996 (according to the Plan
terms then in effect) shall continue to be a Participant, and no other Employee shall be
eligible to participate. In accordance with Ordinance No. 5399, no Employee hired after
February 28, 1987 is eligible to become a Participant in this Plan.
2.02 Special Rules for Pre-1997. Each Participant whom the Commission has not classified as
an Employee on or after January 1, 1997, shall have his rights under the Plan determined
in accordance with any applicable acts of the General Assembly of Georgia and any
ordinances adopted under the 'home rule' of Georgia law pertaining to the City of
Augusta 1949 General Retirement Fund as were 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 City on the Normal Retirement Date. 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 reaches:
(1) Age fifty-five (55) ifhe is a Firefighter or Peace Officer and has at least
twenty-five (25) years of Credited Service; or
(2) Age sixty (60) ifhe is employed in a capacity other than as a Firefighter or
Peace Officer and has at least twenty-five (25) years of Credited Service.
7
Item # 59
LEGAL_US _ E # 70626292.5
Attachment number 1
Page 12 of 39
For purposes of this Section 3.01, a "peace officer" is defined as any Participant
who is "POST" (Peace Officer Standards and Training) certified and a
"Firefighter" is defined as any Participant who is "FOST" (Firefighter Officer
Standards and Training) certified.
(b) Amount of Retirement Benefit.
(1) If the Participant retires on his Normal Retirement Date on or after
January 1, 1995, the Participant shall receive a monthly retirement benefit
of an amount equal to (i) 2.15% ofthe Participant' s Average Earnings
multiplied by the number of months of such Credited Service (up to a limit
of360 months), plus (ii) 1.5% ofthe Participant's Average Earnings
multiplied by the number of months of such Credited Service in excess of
the 360 month limit.
(2) Any Participant who retired on or after June 21, 1993 shall receive a
monthly retirement benefit of an amount equal to 1.75% ofthe
Participant's average annual rate of pay for the last three years of his or
her service, multiplied by the number of years of such service; provided
that any such Participant may, subject to such rules and regulations as the
City Council may from time to time establish, elect to receive a pension
for his lifetime payable monthly at an annual rate amounting to 2% of his
average annual rate of pay for the last three years of his service, the annual
amount thereof, however, not to exceed 60% of the said average annual
rate of pay.
(3) Any Participant who retired on or after October 9, 1987 shall receive a
monthly retirement benefit of an amount equal to 1 %% of the Participant's
average annual rate of pay for the last three years of his or her service,
multiplied by the number of years of such service; provided that any such
Participant may, subject to such rules and regulations as the City Council
may from time to time establish, elect to receive a pension for his or her
lifetime payable monthly at an annual rate amounting to 2% of his or her
average annual rate of pay for the last three years of his service, the annual
amount thereof, however, not to exceed 60% ofthe said average annual
rate of pay.
(4) Any Participant who retired on or after March 1, 1949 shall receive during
his lifetime a pension, payable monthly, at an annual rate amounting to
1%% of his or her average annual rate of pay for the last five years of his
or her service, multiplied by the number of years of such service;
provided, effective March 10, 1966, that any such Participant may, subject
to such rules and regulations as the City Council may from time to time
establish, elect to receive a pension for his or her lifetime payable monthly
at an annual rate amounting to 2% of his or her average annual rate of pay
for the last five years of his or her service, the annual amount thereof,
however, not to exceed 60% ofthe said average annual rate of pay.
8
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 13 of 39
(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.
3.02 Early Retirement. Early retirement under the Plan is retirement from the employ of the
City prior to the Normal Retirement Date. Early retirement shall be authorized only
within five (5) years of the Participant's Normal Retirement Date, and only if by such
time, the Participant has at least twenty (20) years of Credited Service. In the event of
early retirement under these conditions, payment of the retirement benefit shall be
governed by the following provisions of this Section. Notwithstanding the foregoing, if a
Participant receives special early retirement benefits under Section 3.1 0 or 3.11, the
Participant shall be ineligible for benefits under this Section 3.02.
(a) Early Retirement Date. The Early Retirement Date of a Participant shall be the
first day ofthe month coincident with or immediately following the date he retires
from the employ of the City under the provision ofthis Section.
(b) Amount of Retirement Benefit. A Participant at retirement an 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) above, reduced by
.05 % for each complete month by which the Early Retirement Date of a
Participant precedes his Normal Retirement Date.
(c) Payment of Retirement Benefit: The monthly retirement benefit payable in the
event of early retirement shall be payable on the first day of each month. The first
payment shall be made on the optional date elected by the Participant under
Section 3.02(a) above and the last payment shall be the payment due next
preceding his date of death, subject to Section 4.02.
(d) This Section 3.02 is effective as of April 10, 1971.
3.03 Disability Retirement.
(a) A Participant may retire under the Plan ifhe becomes Totally and Permanently
Disabled and the Participant:
(1) has incurred the Total and Permanent Disability as a result ofinjury or
illness incurred in the performance of his employment duties; or
9
Item # 59
LEGAL_US _ E # 70626292.5
Attachment number 1
Page 14 of 39
(2) has incurred the Total and Permanent Disability as a result of injury or
illness from any cause; provided that the Participant has ten (10) years of
Credited Service at the time of the Total and Permanent Disability.
(b) Notwithstanding anything in this Section to the contrary, a Participant shall not be
entitled to receive any disability retirement benefit if the Participant's disability is
a result of any ofthe following:
(1) the Participant's willful misconduct, or
(2) the Participant's intoxication.
( c) Disability Retirement Date. The Disability Retirement Date of a Participant shall
be the first day ofthe month which coincides with or next follows the date the
Commission approves payment of the Participant's disability benefit.
(d) Disability Retirement Benefit. The monthly retirement benefit payable to a
Participant on his Disability Retirement Date shall be equal to one half of the
Participant's Average Earnings; provided however, that should such Participant
receive any Workmen's Compensation while so disabled, such Workmen's
Compensation so received, excluding, medical, doctor, nursing and
hospitalization, shall be subtracted from any pension voucher paid to the
Participant, and he shall receive only the excess of any pension due him after the
subtraction ofthe amount of Workmen's Compensation received by him, less any
other indebtedness due the City by the Participant. Such retirement shall herein
be referred to as disability retirement and payment ofthe disability retirement
benefit shall be governed by the following provisions ofthis Section.
( e) Payment of Disability Retirement Benefit. The retirement benefit to which a
Participant is entitled in the event of his Total and Permanent Disability shall be
payable on the first day of each month. The first payment shall be made on the
Participant's Disability Retirement Date and the last payment shall be the
payment due next preceding the earlier of: (a) his date of death, (subject to the
provisions of Section 4.02) or (b) the cessation of his Total and Permanent
Disability prior to his Normal Retirement Date.
(f) Termination of Disability Retirement Benefit. The continuance of any disability
may be inquired into by medical examination, as provided in Section 1.26, upon
the application of any interested party and for good cause shown. Ifthe
Participant's Disability is discontinued because ofthe findings of a medical
examination or otherwise, the Commission is hereby authorized to terminate any
retirement payments payable under this Section, to reemploy any rehabilitated
Participant, continue retirement benefits in lieu of reinstatement, or make such
other disposition of the claim for retirement benefits as may be necessary and
proper.
3.04 Delayed Retirement.
10
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 15 of 39
(a) Delayed retirement under the Plan is retirement from the employ ofthe City after
the Normal Retirement Date but in no event later than:
(1) Age sixty (60) ifhe is a firefighter or police officer; or
(2) Age seventy (70) ifhe is employed in a capacity other than as a firefighter
or police offer and has at least twenty-five (25) years of Credited Service.
(b) Notwithstanding anything to the contrary, the Commission shall not interpret this
Section in manner that would violate the Age Discrimination in Employment
Amendments of 1986, as amended. In the event of delayed retirement, payment
ofthe retirement benefit shall be governed by the following provisions ofthis
Section.
( c) Delayed Retirement Date. The Delayed Retirement Date of a Participant shall be
the first day ofthe month coincident with or immediately following the date he
actually retires from the employ of the City after his Normal Retirement Date in
accordance with this subsection (A) ofthis Section.
(d) 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.
(e) 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
Section 4.02.
3.05 Termination of Employment.
(a) A Participant who terminates employment with the City before otherwise
becoming eligible for retirement benefits under this Section 3, but after having
completed at least fifteen (15) years of Credited Service and attaining the age of
forty five (45) shall have a right to the 'Vested Percentage', as defined in
subsection (b) of this Section 3.05, of his Accrued Benefits in lieu of withdrawal
of his Contributions, if any, under Section 5 .02(b). Provided that the Participant
is alive at such date, such benefits will be payable at the Participant's Normal
Retirement Date and in such amount as provided in Section 3.01(b) without
reduction, or at the Participant's Early Retirement Date but subject to such
reduction as provided in Section 3.02(b)(2).
(b) For purposes ofthis Section, "Vested Percentage" shall mean 50% ofthe
Participant's Accrued Benefit plus an additional 10% of his Accrued Benefit for
each year of Credited Service in excess of 15 years up to a maximum Vested
11
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 16 of 39
Percentage of 100%. For purposes of this Section, Accrued Benefit shall be
determined as ofthe Participant's date of termination of employment, and shall
otherwise be determined in the same manner as for normal retirement benefits but
reflecting the Participant's Credited Service and Average Earnings determined as
of the date ofthe Participant's employment termination.
(c) This Section 3.05 is effective as of April 10, 1971.
3.06 Cost-of-Living Adiustment of Benefits. Effective April 10, 1971, all retirement and
disability benefits received under this Section 3 shall be adjusted annually pursuant to
this Section 3.06.
(a) For purposes ofthis Section, "Index Ratio" means the ratio attained by dividing
the "Consumer Price Index" (as determined by the Bureau of Labor Statistics of
the United States Department of Labor) for the current calendar year by the
Consumer Price Index for the calendar year immediately preceding the current
calendar year.
(1) Index Ratio of 1.02 or More - If the Index Ratio is 1.02 or greater, the
retired Participant's monthly retirement benefit will be increased in
accordance with subsection (B) of this Section.
(2) Index Ratio of Between .96 and 1.01 - Ifthe Index Ratio is between .96
and 1.01, the retired Participant's monthly retirement benefit will not be
adjusted pursuant to subsection (B) of this Section, and the Consumer
Price Index for the current year ending on December 31st shall be replaced
by the Consumer Price Index for the year ending on December 31 st when
the Participant's retirement benefits were last adjusted.
(3) Index Ratio of .95 or Less- Ifthe Index Ratio is .95 or less, the retired
Participant's monthly retirement benefit will be decreased in accordance
with subsection (B) of this Section.
(b) On the December 31 st coinciding with or next following the date of the
Participant's date of actual retirement under this Section 3 (the "December 31
Following Retirement"), the Consumer Price Index for the year ending on such
December 31 Following Retirement shall be posted to the retired Participant's
retirement record. Subject to Subsection (A) ofthis Section, on each anniversary
ofthe December 31 Following Retirement while the retired Participant is
receiving monthly retirement benefits under this Section 3, the monthly retirement
benefits shall be adjusted on April 1 of each year by multiplying the amount of
the annual retirement benefit received during the previous calendar year by the
Index Ratio.
3.07 Required Distribution Rules Effective January L 1987 Through December 3 L 2002.
(a) Payment to the Participant.
12
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 17 of 39
(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 70K
(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 of the 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 ofthat date. However, if the beneficiary of a
joint and survivor annuity form of payment is not the spouse and is more
than 10 years younger than the Participant, payments to the beneficiary
will not exceed the applicable percentage ofthe 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. Ifthe 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 of the 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. Ifthe 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. Ifthe Beneficiary dies before receiving
120 payments under the ten years certain and life annuity described in
Section 6.01(a), the Commission will continue to use the primary
Beneficiary's life expectancy for purposes of making payments to an
individual contingent Beneficiary.
13
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 18 of 39
(d) Compliance with Code Section 401(a)(9). Effective January 1, 1987, it is the
intent of the 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. Ifthere is any
discrepancy between this Section 3.07 and Code Section 401(a) (9) and its
associated regulations, that Code Section and regulations will prevail.
3.08 Required Distribution Rules Effective January L 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 3.08 will be determined and made in
accordance with the Treasury regulations under Section 40 1 (a)(9) ofthe
Internal Revenue Code.
(b) Time and Manner of Distribution.
(1) 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. If the 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 of the calendar
year immediately following the calendar year in which the Participant died, or by December 31
ofthe calendar year in which the Participant would have attained age 70 1/2, iflater.
B. If the Participant's surviving spouse is not the Participant's sole
Designated Beneficiary, then distributions to the Designated Beneficiary will begin by December
31 ofthe calendar year immediately following the calendar year in which the Participant died.
C. Ifthere is no Designated Beneficiary as of September 30 ofthe 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 3.08(b)(2), other than section 3.08(b)(2)A., will apply as if
the surviving spouse were the participant.
14
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 19 of 39
For purposes of this section 3.08(b)(2) and section 3.08(e), distributions are considered to begin
on the Participant's Required Beginning Date (or, if section 3.08(b)(2)D. applies, the date
distributions are required to begin to the surviving spouse under section 3 .08(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 .08(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 ofthe 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 ofthe 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 40 1 (a)(9) and the Treasury
regulations that apply to individual accounts.
(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 if the 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 of the reduction in the amount of the
participant's payments to provide for a survivor benefit upon death, but only if the 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);
15
Item # 59
LEGAL_US_E# 70626292.5
Attachment number 1
Page 20 of 39
(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 3.08(b)(2)A. or
3.08(b)(2)B.) is the payment that is required for one payment interval.
The second payment need not be made until the end ofthe next payment
interval even ifthat 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 ofthe 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.
(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
16
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 21 of 39
section 1.401 (a)(9)-9 of the Treasury regulations for the calendar year that
contains the annuity starting date. If the annuity starting date precedes the
year in which the Participant reaches age 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 of 70 over the age ofthe 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 of the Participant's applicable
distribution period, as determined under this Section 3.08(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 of the Participant's and
spouse's birthdays in the calendar year that contains the annuity starting
date.
(e) Requirements for Minimum Distributions Where Participant Dies Before Date
Distributions Begin.
(1) Participant Survived by Designated Beneficiary. If the 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 3.08(b)(2)A. or
3.08(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 ofthe Designated Beneficiary determined using the beneficiary's age as
of the 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 of the
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 ofthe 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
17
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 22 of 39
spouse were the Participant, except that the time by which distributions
must begin will be determined without regard to section 2.2(a).
(f) Definitions. For purposes of this Section 3.08, 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) of the 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 year
in which distributions are required to begin pursuant to section 3.08(b)(2).
(3) Life Expectancy. Life expectancy as computed by use of the Single Life
Table in section 1.40 1 (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.
3.09 Code Section 415 Limit.
(a) Definitions. When used in this Section 3.09, the following terms shall have the
definitions set forth in this Section 3.09(a).
(1) Defined Benefit Dollar Limitation.
A. Effective as of January 1, 1976, 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 ofa 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 of January 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) ofthe 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.
18
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 23 of 39
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 3.09(a)(1).
(4) Minimum Age.
A. Effective as of January 1, 1976, the "Minimum Age" is 55.
B. Effective as of January 1, 1983, the "Minimum Age" is 62.
(5) Maximum Age. Effective as of January 1, 1983, the "Maximum Age" is
65.
(b) Limitation on Benefits.
(1) Effective January 1, 1976 and subject to this Section 3.09, 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 3.09 to the contrary, for purposes of Employees who became
Participants before January 1, 1990, the benefit limitations contained in
this Section 3.09 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, 1976, ifthe 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 3.09). The Defined Benefit Dollar Limitation
applicable at an age lesser than the Minimum Age is determined as the
19
Item # 59
LEGAL_US_E# 70626292.5
Attachment number 1
Page 24 of 39
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 3.09
shall not reflect a mortality decrement if benefits are not forfeited upon the
death of the Participant. If any benefits are forfeited upon death, the full
mortality decrement is taken into account.
(2) Effective as of January 1, 1983, if the 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 3.09). The actuarial equivalent of the Defined
Benefit Dollar Limitation applicable at an age after the Maximum Age is
determined as (i) the lesser of 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 of the
Plan and (ii) the actuarial equivalent (at such age) of the Defined Benefit
Dollar Limitation computed 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 3.09 to the contrary, benefit
increases resulting from the increase in the Defined Benefit Dollar
Limitation pursuant to Section 3.09(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 3.09 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 3.09 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 3.09(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 of
20
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 25 of 39
2001 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 1,1976 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.
3.10 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 ofJuly 1, 1996, and who are employed by Augusta on September
3, 1996, may elect to receive retirements benefits under this Section. Such election must
be made on a form designated by the City between October 1, 1996 and 4:00 p.m. on
December 23, 1996. Any Participant electing to retire early pursuant to this Section shall
have until 4:00 p.m. on the seventh (7th) day following such election to revoke same.
(a) Enhanced Early Retirement Dates. The Enhanced Early Retirement Date of a
Participant shall be the first day of the month next following the date he retires
from the employ of the City under the provisions of this Section.
(b) Amount of Retirement Benefits. The monthly retirement benefit payable to a
Participant who retires on his Enhanced Early Retirement Date shall be an amount
equal to 2.15% of his Average Earnings for the last three years of his Credited
Service, multiplied by the total number of years of Credited Service, plus an
additional ten (10) years of Credited Service to be added to the years of Credited
Service for purposes of computing the amount ofthe retirement benefit, up to 30
years plus 1.5% of his Average Earnings multiplied by the number of years of
Credited Service in excess of thirty (30) years, 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 Plan notwithstanding. The amount ofthe
monthly enhanced retirement benefit shall not be reduced for any month or time
period by which the Early Retirement Date of a Participant precedes his Normal
Retirement Date, notwithstanding any other provision of this Plan to the contrary.
(c) Prerequisite for Electing Early Retirements. Any Participant electing Enhanced
Early Retirement shall be required to execute a covenant not to sue in favor of the
City and its officials, agents, and employees for any and all claims arising out of
such employee's employment by the City, and agreeing not to seek or accept any
further employment by the City, or its constitutional and elected officials. This
provision shall not be construed as prohibiting any such person from seeking any
elective position by the City.
3.11 Special Unreduced Early Retirement. If a Participant with at least twenty (20) years of
Credited Service is permanently separated from the service involuntarily by action of the
Commission without any fault on the Participant's part, as determined by the
Commission in its sole discretion, the Participant may elect to collect Plan benefits under
this Section in lieu of any other Section of this Plan; provided, however, no Participant
shall draw any benefits under this Section, and such benefits shall be forfeited, if the
21
Item # 59
LEGAL_US _ E # 70626292.5
Attachment number 1
Page 26 of 39
Participant is offered another position with the City of Augusta with no reduction in
Earnings.
(a) Special Retirement Date. The Special Retirement Date of a Participant shall be
the first day ofthe month which coincides with or next follows the date the
Participant elects to retire under the provision ofthis Section.
(b) Amount of Special Unreduced Retirement Benefit. A Participant at retirement
under this Section shall receive a monthly retirement benefit, commencing on his
Special Retirement Date, provided he is then alive, equal to the amount computed
in the same manner as for normal retirement in accordance with Section 3.01(b),
but based on Credited Service and Earnings as ofthe Special Retirement Date.
( c) Payment of Special Retirement Benefit. The monthly retirement benefit payable
in the event of special retirement shall be payable on the first day of each month.
The first payment shall be made on the Special Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to the
provision of Section 4.02.
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
payee under a qualified domestic relations order, as defined in Section
414(p) of the Code, are Distributees with regard to the interest of the
spouse or former spouse.
(3) "Eligible Retirement Plan" means an individual retirement account
described in Section 408(a) ofthe 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) ofthe
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
22
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 27 of 39
as of January 1,2002, the definition of "Eligible Retirement Plan" shall
also apply to an annuity contract described in Section 403(b) of the Code,
an eligible plan under Section 457(b) of the 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 of the Accrued Benefit to the credit of the 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 of
ten years or more; (2) any distribution to the extent such distribution is
required under Section 401(a)(9) ofthe 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.
3.13 Supplemental Retirement Benefit: Beginning as ofJanuary 6, 1998, Participants who
retired pursuant to Section 3 prior to January 1, 1995 shall receive, in addition to their
monthly retirement benefits, a payment of two thousand dollars ($2,000.00) per annum
until their death or termination of their participation; provided however, should any court
of competent jurisdiction determine that such supplemental retirement benefits are illegal
or invalid for any reason, this Section shall be repealed immediately upon such order
becoming final.
SECTION 4
DEATH BENEFITS
4.01 Death Prior to Retirement.
(a) Non-Duty Connected Death. If an Employee who became a Participant on or
after March 18, 1985 dies before retirement, or after retirement without having
made the election provided in Section 6, or in case of the death of the survivor of
a Participant who has made such election and his spouse after his retirement, his
Contributions to the fund, plus interest compounded annually at a rate equal to
that average rate of interest earned on investments of the Fund for the twelve (12)
month period immediately preceding his actual date of retirement under Section 3,
less any retirement allowance paid to him or his spouse, shall be paid from the
Fund on the order of the pension commission to the Beneficiary or Beneficiaries,
if any, named by such Participant. All Participants in the Plan prior to March 18,
23
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 28 of 39
1985 shall receive the amounts described in the previous sentence without
interest.
(b) Duty Connected Death.
(1) This paragraph shall only apply ifthe Participant has not made an election
pursuant to Section 6, and the Participant's widow is not receiving benefits
under subsection (b)(2) ofthis Section. Effective October 9, 1987, the
surviving spouse of any Participant shall be entitled to a survivor pension,
provided that the Participant dies while employed by the City, and at the
time of death, shall have attained at least age fifty-five (55), with a
minimum often (10) years of Credited Service. The amount of the
survivor pension shall equal one-hundred percent (100%) of the retirement
benefit calculated under Section 3.01(b). For purposes of calculating the
retirement benefit under Section 3.01(b) to determine the amount ofthe
survivor pension, the Participant shall be considered to have retired on his
date of death. Notwithstanding anything in this Section to the contrary,
but subject to the requirements of a proper qualified domestic relations
order pursuant to Section 414(p) ofthe Code, in the event ofthe death or
divorce from the Participant's designated Beneficiary, the Participant may
change the Participant's designated Beneficiary.
(2) This paragraph (b )(2) shall only apply ifthe Participant has not made an
election pursuant to Section 6, and the widow is not receiving benefits
under subsection (b)(1) ofthis Section. Effective March 10, 1966, the
widow of a Participant who is killed in line of duty, as hereinafter defined,
may elect, in lieu of receiving a refund of pension contributions under the
provisions ofthe Plan, to receive a pension computed at twenty-five
percent (25%) ofthe Participant's monthly salary or wages at the time of
his death, which shall be payable monthly to the widow, until her death or
remarriage, or in the event of her death leaving a child or children ofthe
Participant surviving her, who have not reached their 18th birthday,
pension shall be continued to be paid for the benefit of such child or
children as long as they remain unmarried and until they reach their 18th
birthday; and if there be no widow living at the time of the death of such
Participant killed is herein defined, but there be a child or children of
Participant living as of date who have not reached their 18th birthday, the
guardian of children may make a similar election as that provided for a
widow and, in the event such election is made, a pension in amount shall
be paid for the benefit of such child or children as long as they remain
unmarried and until they reach their 18th birthday.
(3) As used in this Section 4.01(b), "killed in line of duty" shall mean killed
while actively performing the prescribed duties of the Participant's job and
not resulting from any misconduct or negligence of such Participant;
provided, however, that no payments shall be made under the provisions
of this section until such date as any monthly benefits provided under the
Workmen's Compensation Laws of Georgia shall have ceased.
24
Item # 59
LEGAL_US _ E # 70626292.5
Attachment number 1
Page 29 of 39
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 6, 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 one-half
of the benefits of the deceased Employee measured in accordance with Section 3.01 (b),
under the provisions of this Plan; provided that no benefits shall payable hereunder if
Plan benefits are paid under Section 4.01.
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 3.06 upon
commencement of such benefit.
4.04 Designation of Beneficiaries.
(a) Each Participant shall designate a Beneficiary to receive the benefits, if any,
which may be payable in the event of his death pursuant to the provision of
Section 3 or 4. Such designation shall be made in writing on a form provided by
the Commission and shall be signed and filed with the Commission. The
Participant may change his designation from time to time by filing the proper
form with the Commission, and each change shall revoke all prior designations by
the Participant. In each such designation the Participant may name one or more
primary Beneficiaries and one or more contingent Beneficiaries. If no
Beneficiary designated by the Participant survives him, the Commission may
direct the payment of such benefits to (i) the spouse ofthe deceased, ifliving;
otherwise, to (ii) the descendents of the deceased Participant per stirpes or on their
behalf as provided in Section 10.04; or if none, to (iii) the legal representative of
the estate of the deceased Participant.
(b) In the event of the death of a Beneficiary who survives the Participant and who, at
his or her death, is receiving benefits as described in A immediately above, 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 of the estate ofthe deceased
Beneficiary, as the Commission in its sole discretion may determine.
(c) In the event the Commission does not direct the payments as specified in
paragraphs (a) or (b) of this Section 4.04, the Commission may elect to have a
court of applicable jurisdiction determine to whom payments should be made, and
the Commission shall follow such instructions as the court may give.
SECTION 5
CONTRIBUTIONS
25
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 30 of 39
5.01 City Contributions. The City shall contribute sufficient amounts annually to the Fund.
The Comptroller shall certify to the Commission that such amounts are necessary to be
appropriated each year upon the basis of the actuarial survey and valuation. City
contributions shall be paid to the Fund and shall be used only for the benefit of the
Participants and Beneficiaries of the Plan.
5.02 Participant Contributions.
(a) Each Participant hired after June 30, 1980 shall contribute to the Fund at each pay
period an amount equal to eight percent (8%) of his Earnings. Participants hired
prior to July 1, 1980 shall contribute to the Fund at each pay period an amount
equal to five percent (5%) of his Earnings. Contributions by the Participant shall
cease at the earlier of: (a) his date oftermination of employment for any reason,
and (b) his actual retirement date.
(b) Withdrawals of Participant Contributions. Notwithstanding anything in the Plan to
the contrary, any Employee who became a Participant on or after March 1, 1949
and who terminates employment before becoming eligible for retirement in
accordance with Section 3 (or such Participant's Beneficiary, if applicable) may,
upon receiving approval from the Comptroller, withdraw the total of all of his
Contributions, without interest; provided that ifthe Participant does not make a
request to withdraw his Contributions within four (4) years of his date of
employment termination, his Contributions shall revert to the Fund to be payable
as Plan benefits to the Participant or the Participant's Beneficiary and may not be
then withdrawn by the Participant.
SECTION 6
OPTIONAL FORMS OF RETIREMENT INCOME
6.01 Description of Options. The amount of any optional retirement benefit set forth below
shall be the Actuarial Equivalent, as determined by the Committee, 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 of the
survivor.
The amount of monthly retirement benefit payable under any option selected in
accordance with the provisions of this Section shall be adjusted by the cost-of-living
adjustment as provided in Section 3.06; provided, however, that if payments are to be
made to an estate the commuted value of such payment shall be made in lieu of
26
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 31 of 39
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 of the last monthly
payment, discounted on such actuarial tables as may be adopted by the Commission,
ignoring any future cost-of-living adjustments.
6.02 Joint Annuitant or Beneficiary.
(a) A Participant who elects Option A of Section 6.02(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 with benefits payable after his death for another person's lifetime
who elects Option B of Section 6.02(b) 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.
6.03 Cancellation of Election. The election by a Participant of Option B shall be null and void
if either the Participant or his designated Joint Annuitant should die before benefits
commence.
"\
SECTION 7
ADMINISTRATION OF PLAN
7.01 Administration.
(a) Powers ofthe Commission. The Commission shall control the administration of
the Plan hereunder, with all powers necessary to enable it properly to carry out its
duties in that respect. Not in limitation, but in amplification of the foregoing, the
Commission shall have the power to construe the 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 ofthe Commission upon all matters within the
scope of its authority shall be final and binding upon all parties to this instrument,
Participants, and Participant's Beneficiaries and Joint Annuitants.
(b) Records ofthe Commission. All acts and determination of the Commission shall
be duly recorded by the clerk, or under his supervision, and all such records,
together with such other documents as may be necessary for the administration of
the Plan shall be preserved in the custody of such clerk.
(c) Exemption from Liability of the Commission. The members of the Commission,
and each of them, shall be free from all liability, joint, and several, for their acts,
omissions and conduct, and for the acts, omissions and conduct of their duly
constituted agents, in the administration of the Plan, and the City shall indemnify
and save each ofthem harmless from the effects and consequences oftheir acts,
27
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 32 of 39
omissions, and conduct in their official capacity, except to the extent that such
effects and consequences shall result from their own willful misconduct.
(d) Miscellaneous.
(1) To enable the Commission to perform its functions, the City shall supply
full and timely information of all matters relating to the compensation and
length of service of all Participants, their retirement, death or other cause
of termination of employment, and such other pertinent facts as the
Commission may require.
(2) The Commission shall be entitled to rely upon all tables, valuations,
certificates, and reports furnished by an actuary, who shall be a member of
the American Academy of Actuaries, or an organization which one or
more members is a member of the American Academy of Actuaries and
upon all certificates and reports made by an accountant selected or
approved by the Commission. The Commission shall be fully protected in
respect to any action taken or suffered by it in good faith in reliance upon
the advice or opinion of any actuary, accountant, or attorney, and all
action so taken or suffered shall be conclusive upon each member of the
Commission and upon all persons interested in the Plan.
SECTION 8
TRUST FUND AND TRUSTEES
8.01 Trust Fund.
(a) There is created a permanent pension Fund for the benefit of each Participant
covered by this Plan, and shall be kept in a separate account specifically
delineated as the Plan's funds, with a separate, permanent record thereof to be
kept by the Comptroller. The assets of the Fund shall be held and administered by
the Commission. The Fund shall consist of all payments by the City and
Participants to the Fund and earnings from investments. The assets of the Fund
shall be valued as ofthe end of each plan year, and at any other time required by
the Commission, and at the then existing book and market value. The Fund is
hereby declared not to be the property of the Commission or the City, and this
includes any sum paid in or directed to be paid in by the Commission and it shall
reserve no property in any sum raised or due by virtue of the Plan.
(b) The Comptroller shall maintain a separate and permanent record ofthe Fund. All
decisions of the Commission in regard to the Fund or any payments or
withdrawals therefrom shall be recorded in the minutes ofthe Commission and
also entered on the permanent record kept by the Commission and such
permanent record shall be open to inspection by any interested person at all
regular business hours.
(c) No warrant shall be drawn upon the Fund except as otherwise provided in the
Plan.
28
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 33 of 39
8.02 Amendment of Trust. The City shall have the right at any time, by an instrument in
writing duly executed by the Commission and to the Trustee, to modify, alter, or amend
this Plan and Trust in whole or in part; provided, however, that the duties, powers, and
liability of the Trustee hereunder shall not be substantially increased without its written
consent, and provided further, that no such amendment shall have the effect of revesting
in the City any part ofthe principal or income of the Fund.
8.03 Discontinuance of Trust and Vesting. The City expressly reserves the right to terminate
this Plan and Trust Agreement at any time. Upon termination of the Plan by the City, or
complete discontinuance of Contributions thereunder, having the effect of termination,
the rights of each Participant to benefits accrued to the date of such termination or
discontinuance, to the extent then funded, shall be nonforfeitable. In either case the
Commission shall, upon instructions from the City, continue to administer the Fund as
provided in Section 7. No part of the Fund shall at any time revert to the City unless all
benefits for Participants and their Payees have been provided.
8.04 Powers ofthe Commission.
(a) The Commission shall have the following power and authority in the
administration ofthe Fund to be exercised in accordance with and subject to the
provisions of Section 7.01 hereof:
(1) control the administration of the Plan hereunder, with all powers necessary
to enable it to properly carry out its duties in that respect. Not in
limitation, but in amplification ofthe foregoing, the Commission shall
have the power to construe the Plan and to determine all questions that
shall arise thereunder, and shall also have all the powers elsewhere herein
conferred upon it;
(2) decide all questions relating to the eligibility of Employees to participate
in the benefits of the Plan; and
(3) determine the benefits to which any Participant or Beneficiary may be
entitled under the Plan.
(b) The decisions of the Commission upon all matters within the scope of this
authority shall be final and binding upon all parties to this instrument, Participants
and their Beneficiaries.
( c) All acts and determinations of the Commission shall be duly recorded by the City
clerk, or under his supervision and all such records, together with such other
documents as may be necessary for the administration of the Plan, shall be
preserved in the custody of such clerk.
(d) The Commission shall prepare and distribute to the Employees information
concerning the Plan at the expense ofthe City, in such manner as it shall deem
appropriate.
8.05 Investment of Fund.
29
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 34 of 39
(a) The Comptroller shall be the Trustee ofthe Fund and shall deposit all
contributions to the Plan in a bank or banks, and, pursuant to the direction of the
Pension Fund Investment Committee, shall invest and reinvest, from time to time,
any portion thereof not immediately needed for the payment of pensions, in
securities approved by law for the investment oftrust funds, as the Pension Fund
Investment Committee shall deem proper, from time to time; provided, however,
that the amount ofthe Fund which may be invested in such securities other than
those specifically approved by law for the investment of trust funds may not
exceed sixty percent (60%) of the total amount of such fund then outstanding; and
in addition thereto, the Pension Fund Investment Committee may invest such
funds in bonds and debentures assumed or guaranteed by any solvent corporation
or institution existing under the laws ofthe 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 that (if applicable), such bonds or debentures are
the type in which domestic life insurance companies are permitted to invest under
any applicable provisions ofthe Official Code of Georgia Annotated, as amended.
The amount of the Fund which may be invested in the bonds and debentures of
anyone corporation may not exceed ten percent (10%) of the total amount ofthe
Fund then outstanding.
(b) Withdrawals from the Fund for investment purposes shall only be made by
vouchers signed by the Comptroller or Deputy Comptroller and countersigned by
the Mayor as chief executive officer of the City. The Comptroller shall maintain
a record of the age, length of service, and contributions of each Participant.
8.06 Taxation. The Commission, in its settlor capacity, is hereby authorized to levy a tax from
time to time to raise a sufficient sum to meet the requirements of the Plan for paying into
the Fund an amount equal to the amount contributed by Participants to the Fund; and in
the event such amount contributed by the Participants should be five percent (5%) of
Earnings or more and the five per centum contributed by the Commission or more, and
such amounts shall be insufficient to pay the pensions provided for in the Plan, then the
Commission shall levy a sufficient tax to meet all payments as required by the Plan, and
from time to time to continue to do so.
8.07 Resignation of Trustee. The Trustee may resign as Trustee of the Trust at any time by
giving sixty (60) days written notice to the City, or with the consent of the City, may
resign at any time. At such time as the resignation becomes effective, the Trustee shall
render to the City an account of its administration of the Fund during the period
following that covered by its last annual account, and shall perform all acts necessary to
transfer and deliver the assets of the Fund to its successor.
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 Commission shall designate and appoint qualified
successor Trustee(s) until such individuals are elected by the electorate.
30
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 35 of 39
8.09 Disbursements. Upon written direction (which may be a continuing one) from the
Commission as to the name of any person to whom money is to be paid from the Fund
and the amount thereof, checks shall be drawn by the Trustee in the name of the person
designated by the Commission and deliver such checks in such manner and amounts and
at such time as the Commission shall direct. In the event the Trustee shall deem it
necessary to withhold any distribution pending compliance with legal requirements with
respect to probate of wills, appointment of personal representatives, payment of or
provision for estate or inheritance taxes, or for death duties or otherwise, the Trustee shall
withhold payment pending receipt of the instructions from the City Attorney to make
such distribution.
SECTION 9
AMENDMENT AND TERMINATION
This Section 9 shall apply only to the extent that it does not otherwise conflict with applicable
Georgia law, including, but not limited to, Article I, Section I, Paragraph X of the Georgia
Constitution.
9.01 Amendment of the Plan. The City shall have the right at any time pursuant to
authorization of the Commission, to amend any or all of the provisions of the Plan;
provided, however, that no such amendment shall authorize or permit any part of the
Fund to be diverted to purposes other than for the exclusive benefit of Participants and
their Payees; and further provided, that no amendment shall have the effect of revesting
in the City any portion of such Fund except such amounts which remain in the Fund after
termination ofthe Plan and after all liabilities under the Plan have been satisfied.
9.02 Termination of the Plan.
(a) The City 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 ofthe Commission; provided, however, that should the City 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 of termination ofthe Plan and upon receipt of written notice of such
termination, the Commission shall arrange for the Fund to be apportioned and
distributed in accordance with the following procedure:
(1)
The Commission shall determine the date of distribution and asset value of
the Fund to be distributed, taking into account the expenses of distribution.
(2)
The Commission 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 Commission shall apportion the asset value in the priority and manner
set forth below, on the basis that the amount required to provide any given
31
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 36 of 39
retirement benefit shall mean the actuarially computed single-sum value of
such benefit, except that if the method of distribution determined under
paragraph B of this Section involves the purchase of an insured annuity,
the amount required to provide the given retirement benefit shall mean the
single premium payable for such annuity:
A. An amount equal to each Participant's Contributions under the Plan, less
the aggregate amount of any benefit payments previously made with respect to such Participant,
will be determined and such amount apportioned from the asset value. Such asset value, if
insufficient to provide such amounts in full will be apportioned among such Participants in
proportion to the amounts determined with respect to them.
B. Ifthere 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 (1) 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. Ifthere 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 of the 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. Ifthere 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 A., B., and C. above, in the amount
required to provide the actuarially determined value of the accrued benefit as ofthe date of
termination 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
32
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 37 of 39
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., or E. above, such excess shall revert to the City.
(4) The Commission shall cause to be distributed, in accordance with the
manner of distribution determined under paragraph B ofthis Section, the
amounts apportioned under C above.
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 of the provisions hereof.
10.02 Construction.
(a) 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.
(b) If any provisions of this Plan, or the applicability thereof to any person or
circumstance, is held invalid, the remainder ofthis Plan and the applicability
thereof and of such provision to other persons or circumstances shall not be
affected thereby.
( c) 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 Benefits Supported Only By Fund. Any person having any claim under the Plan will
look solely to the assets of the Fund for satisfaction. In no event will the City, or any of
its officers, members ofthe Commission, or agents, be liable in their individual capacities
to any person whomsoever, under the provisions ofthe Plan.
10.05 Discrimination. The City, through the Commission, shall administer the plan in a
uniform and consistent manner with respect to all Employees and shall not permit
discrimination in favor of officers, supervisory or highly-paid employees.
10.06 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 City, the Trustee, nor the Commission shall be in any
way subject to any suit or litigation, or to any legal liability, for any cause or reason
whatsoever, in connection with this Plan or its operation, and each such Participant
33
Item # 59
LEGAL_US_E # 70626292.5
Attachment number 1
Page 38 of 39
hereby releases the City, Trustee, Commission, and all its officers and agents from any
and all liability or obligation.
10.07 Claims. Any payment to a Participant, Joint Annuitant, or Beneficiary, or to their legal
representatives, in accordance with the provision of this Plan, shall to the extent thereof
be in full satisfaction of all claims hereunder against the Commission, Trustee, and the
City, any of whom may require such Participant, Beneficiary, or legal representative, as a
condition precedent to such payment, to execute a receipt and release therefore in such
form as shall be determined by the Commission.
10.08 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 City
Contributions hereunder; forfeitures shall be applied to reduce the City's Contributions
under the Plan in the then current or subsequent years.
10.09 Applications.
(a) All applications for retirement or the withdrawal of Contributions shall be made
in writing on forms prescribed by the Comptroller and filed in his office.
(b) All applications for retirement shall be acted upon by the Committee. The
Secretary shall keep a careful record of all Committee proceedings. Upon
certification by the Secretary that a majority ofthe Committee has determined that
the applicant is entitled to retirement of a given amount, which decision shall not
be unreasonably or unlawfully made, and subject to the procedure regarding
disability applications described in Section 3.03, the Comptroller shall include his
name on the pension list and shall draw monthly vouchers for the payment of his
retirement benefits. The Commission may adopt further reasonable rules and
regulations for the purpose of carrying out the purposes of this Section.
10.1 0 Effect of Extension of the Federal Social Security Act. If the Federal Social Security Act
is extended to include municipal employees, the Commission shall have power to reduce
pro tanto the Contributions of Participants and the amounts of the retirement benefits to
which they may become entitled under the Plan; provided that no reduction shall be made
in the amount of the retirement benefits paid to any such Participant already retired prior
to the effective date that the Federal Social Security Act is extended to include municipal
employees.
34
Item # 59
LEGAL_US_E# 70626292.5
Attachment number 1
Page 39 of 39
IN WITNESS WHEREOF, the City has caused this amended Plan to be duly executed as
of the /0 day of J J...I1---c 200l but effective as of the datesset forth herein.
AUGUSTA GEORGIA, AS SUCCESSOR TO
THE CITY COUNCIL OF AUGUSTA
By: 'a~~[/~ ~
~~
'I ~
eal)
Clerk
1st reading June 19, 2007
AUGUSTA GEORGIA, AS SUCCESSOR TO
THE CITY COUNCIL OF AUGUSTA
Ma{?~1- ~
This Ordinance shall be effective as of the dates set forth herein. All ordinances and parts of
Ordinances in conflict with the provisions ofthis Ordinance are hereby repealed.
10
APPROVED AND ENACTED by the Augusta-Richmond County Commission, on the
2001
day of J4
ff!: c:Jj r
~
~~
~
C
Publish in the Auguata Chronicle July 19, 2007
35
Item # 59
LEGAL_US_E # 70626292.5