HomeMy WebLinkAboutORD 6990 1945 AMEND AND RESTATE ORD NUMBER 6657
ORDINANCE NO. 6990
AN ORDINANCE TO AMEND AND RESTATE ORDINANCE NUMBER 6657,
THE RICHMOND EMPLOYEES PENSION FUND; ADOPTED
; TO PROVIDE FOR SEVERABILITY; TO REPEAL
CONFLICTING ORDINANCES AND FOR OTHER PURPOSES
RICHMOND EMPLOYEES PENSION FUND
As Amended and Restated Effective January 1, 1984
(Except as Otherwise Provided Herein)
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TABLE OF CONTENTS
PAGE
INTRODUCTION ..........................................................................................................................1
SECTION 1 DEFINITIONS ................................................................................................. 3
1.01 Accrued Benefit........................... .................... .......................................................3
1.02 Actuarial Equivalent............................... ........................... .............. ............ ...........3
1.03 Average Earnings............................... .... .......... ......................................................3
1.04 Beneficiary ............................................. ......................................................... ....... 3
1.05 Code.. .... ........ .......... ............... ....... ................. ................ ...... ..... ....... ......... ....... ... ...3
1.06 Commission............................ .......................................................... ...................... 4
1.07 Contributions.......................................................................................................... 4
1.08 Credited Service..................................................................................................... 4
1.09 Earnings........................................................ ........................ ..................................5
1.10 Effective Date.......... .............. ...... ................. .................................... ....... ............... 6
1.11 Employee.......................................................... ...... ......................................... .......6
1.12 Employer or County.................. ..................... ...................... ....... ..... ...................... 6
1.13 Fund........................................................................................................................ 6
1.14 Interest................................................................................ .................................... 6
1.15 Joint Annuitant. ................................................................ ........................ ............ 6
1.16 Participant....... ............................ ........................................................... ...... ...........7
1.1 7 Payee ...................................................................................................................... 7
1.18 Plan....................................................................................... ..................................7
1.19 Plan Year ................................................................................................................ 7
1.20 Total and Permanent Disability ..............................................................................7
1.21 Trust Agreement or Trust.......................... ............................................. .......... ...... 7
1.22 Trustee................. ............... ......................... ................ .............. .............................. 8
1.23 Vested Percentage..................................................................... .................. ...........8
SECTION 2 ELIGIBILITY AND P ARTICIP A TION ......................................................... 8
2.0 1 Eligibility................................................................ ....................................... .......8
2.02 Probationary Period.......... .............................................. ............ ............................ 8
2.03 Special Rules for Pre-1997 ..................................................................................... 8
SECTION 3 RETIREMENT DATES AND BENEFITS ..................................................... 8
3.0 1 Normal Retirement. .............................. ................................................................8
3.02 Early Retirement. ................................. ............................. .................... ............... 9
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3.03
3.04
3.05
3.06
3.07
3.08
3.09
3.10
3.11
3.12
3.13
3.14
3.15
SECTION 4
4.01
4.02
4.03
4.04
SECTION 5
5.01
5.02
SECTION 6
6.01
SECTION 7
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
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Disability Retirement. .......................................................................................... 9
Delayed Retirement. .......................................................................... ............ ..... 11
Termination of Employment. .............................. ................................ ................. 11
Cost -of-Living Adjustment of Benefits................................................................ 12
Required Distribution Rules Effective January 1, 1987 Through December
31, 2002..... ........ ................................... ........................... ..................... ................ 13
Required Distribution Rules Effective January 1, 2003.......................................15
Code Section 415 Limit........................................................................................19
Enhanced Early Retirement for 1996. ................................................................ 22
Special Unreduced Early Retirement. ........... ...................... ................ .... ........... 22
Rollover Distributions. ..... .................................................................................. 23
Supplemental Retirement Benefits....................................................................... 24
Past Increases........................... ..................... .................................................. ..... 24
Benefits Payable to Surviving Spouses ................................................................ 25
DEATH BENEFITS.................. ................................. ................................ .... 25
Death Prior to Retirement. ....... ................... ..................... ................. ................... 25
Death After Retirement......................................................................... ............... 26
Adjusted Benefit. ................................................ ................................................26
Designation of Beneficiaries. ........................... ....................................................26
CONTRIBUTIONS........................................................................................ 27
County Contributions........................................................................................... 27
Participant Contributions. ....... ............................................................................27
ADMINISTRATION OF PLAN .................................................................... 28
Administration.......................................... .... ........................................................ 28
TRUST FUND AND TRUSTEES ................................................................. 29
Trust Fund. ............ ............................... .... ........................ ....................................29
Amendment of Trust. ...................................................................... .... ............... 30
Discontinuance of Trust and Vesting. ................................................................ 30
Powers of the Commission..... .... .............. ...... ................ ............ ..........................30
Investment of Fund. .............................. ................. ............................................. 31
Taxation. ....................... ............................................ .......................... ..... ...........32
Resignation of Trustee. ............................ ..........................................................32
Successor Trustees. .......... ........................................ ..........................................32
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7.09
SECTION 8
8.01
8.02
SECTION 9
9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08
9.09
9.10
9.11
9.12
9.13
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Disbursements. ................................................................................................... 32
AMENDMENT AND TERMINATION ....................................................... 32
Amendment of the Plan. ..................................................................................... 32
Termination of the Plan. ......................... ............................................................ 33
MISCELLANEOUS.......................................................................................34
Headings. .................................................... ................ .... .................................... 34
Construction .................................................. ........................................ ...............34
Nonalienation. ....................... ............................................................................. 35
Legally Incompetent. ................................................................... ................... .....35
Benefits Supported Only By Fund. .................................................................... 35
Discrimination...................................................................................................... 3 5
Limitation of Liability; Legal Actions. .............................................................. 3 5
Claims. ........................................................................................ ........................36
Forfeitures. ......................................................................................................... 36
Maximum of One Benefit at a Time. ................................................................. 36
Applications. .............. .......... ...................... ........................................................36
Report of Treasurer. ........................................................ ...................................36
Consequence of Plan Violation. ......................................................................... 36
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RICHMOND EMPLOYEES PENSION FUND
INTRODUCTION
Effective March 1, 1945, the Board of Commissioners of Richmond County established the
"Richmond Employees Pension Fund", hereinafter referred to as the Plan. The Plan covers
Employees hired on or before September 30, 1975, meaning no one hired after that date is
eligible to participate in the Plan.
On _, 2006, the Augusta-Richmond County Commission, as successor to the
Richmond County Board of Commissioners, approved this restatement of the Plan effective
January 1, 1984 (except as otherwise provided herein) so as to conform the Plan with relevant
provisions of the 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 ("GAIT"), 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 of 2000 ("CRA" and together with GAIT, 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 200 1 ("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 County's intention to fully honor all benefits and rights that Plan Participants have
accrued under the Plan prior to this restatement. The Plan shall be administered and construed
accordingly, and the Plan's administrator shall construe and interpret every provision of the
Plan's restatement in a manner that preserves each Plan Participant's benefits or rights that
accrued prior to _, 2006. Nevertheless, any Participant whom the Commission
does not classify as an Employee on or after January 1, 2006 shall have his benefits and rights
determined under the provisions of the Plan that were in effect when the Commission last
classified him or her as an Employee.
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Specifically, the restated Plan honors the following pre-2006 Plan provisions in the following
manner:
Plan Provision Prior Sections, per Plan Section (as Adopted in
Relevant Ordinances 2006)
Continued Participation for those 4 2.01
employed on 9/30/1975
Funding: Creation and Administration 5 7
Plan Administration 6 6
Benefit Payments 7 7.09
County Contribution 8 5.01
Employee Contributions 9 5.02
Funding Adjustments per Actuary 10 5.01
Levying of Taxes 11 7.06
Fund Assets not County Property 12 7.01(a)
Uniform Administration 13 9.06
Normal Retirement Benefits 14-(b) 3.01
Early Retirement Benefits 14-(b) 3.02
Delayed Retirement Benefits 14-(b) 3.04
Calculation of Benefits and Credited 14-(b); Paragraph IV 3.05
Service
Cost of Living Adjustments 14-(b); Paragraph V 3.06
Enhanced Early Retirement Benefits 14.1 3.10
Age 35 limit on participation 15 Superseded and inapplicable
Special Unreduced Early Retirement 16 3.11
(20+ years)
Age 65 retirement 17 Incorporated into 3.01
Disability Retirement Benefits 18 3.03
Disability if 12+ years of service 19 3.03(a)
(see parentheses)
Past Increases to be honored 20 3.14
Return of Employee Contributions 20(A) 5.02(c)
Cost of Living Adjustments 20(A) 3.06
Survivorship Benefit 21 4.01(a)
Reemployment 22 1.08 (d)
Honor Past Provisions 23 Introduction
Surviving Spouse Benefits; Benefits 24(A); 24(B); and 24-C 4.02; and 4.01(b)
for Widows of Employees Killed in
Line of Duty
The Plan will be administered by the Commission as described in Section 6. All benefits to be
provided under the Plan will be funded under a trust established in accordance with Section 7.
None of the retirement provisions of the Plan shall be construed to repeal or in any manner
interfere with the Acts of the Extra Session of Georgia Laws, 1937-1938, pages 875-880,
inclusive, designated "Richmond Officers and Employees Act" and amendments thereof; or
hereafter made, provided, this Plan shall not be construed to include within the Plan any
employee not heretofore covered by the "Richmond Officers and Employees Act."
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SECTION 1
DEFINITIONS
As used herein, unless otherwise defined or required by the context, the following words and
phrases shall have the meanings indicated:
1.01 Accrued Benefit. The retirement benefit which the Participant has earned as of the date
of determination, calculated under Subsection 3.01(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 (a) the 1971 Group Annuity
Mortality Table, and (b) interest at 6% compounded annually for forms of
payment other than lump sum; the interest rate used to determine the equivalent
lump sum value of monthly benefits will be in 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% of the male mortality rates and
50% the female mortality rates from the 83 GAM table, 83 GAM Unisex, as
provided under Revenue Ruling 95-6.
(c) Effective with respect to annuity starting dates on or after December 31,2002, the
table referenced in clause (i) of subsection (a) shall be a mortality table based
upon a fixed blend of 50% of the 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 a Participant's Earnings for the five (5)
consecutive calendar years immediately preceding the earlier to occur of: (a) the date on
which the Participant's employment with the County terminates for any reason or (b) the
Participant's actual retirement date. Average Earnings shall be determined by dividing
the total Earnings received by the Participant during the appropriate five-year period, or
lesser number of years if applicable, by the number of months for which he or she
received earnings in such periods.
1.04 Beneficiary. The person(s) designated by the Participant in accordance with Section 4.04
who is entitled to receive benefits at the death of a Participant under Section 3 or 4.
1.05 Code. The Internal Revenue Code of 1986 as amended from time to time, and
regulations or rulings issued thereunder.
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1.06 Commission. Augusta-Richmond County Commission, as successor to the Richmond
County Board of Commissioners, which shall act in the dual capacity of administrator of
the Plan and Trustee ofthe Fund.
1.07 Contributions. The payments made by the Participants to the Fund in accordance with
Section 5.
1.08 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
(a) the date he last entered the employment ofthe Employer, to (b) 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 in
accordance with a uniform policy applied on a nondiscriminatory basis to
all Employees similarly situated;
(2) voluntary or involuntary service in the Armed Forces of the United States,
provided the Employee retains statutory reemployment rights under
applicable state or federal law, and resumes employment after his
honorable discharge from military duty within the time required by such
law;
(3) reelection or reappointment at the end of a term; or
(4) periods during which the Employee incurs a Total and Permanent
Disability within the meaning of Section 3.03, provided that he recovers
from a Total and Permanent Disability and is reemployed by the Employer
as required under Section 3.03(e) or 3.03(f).
(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) Notwithstanding anything in this Section to the contrary, any Participant who
before retirement, voluntarily separates from his employment as provided for in
this Act, or is discharged, or his office or position abolished, as provided by the
"Richmond Officers and Employees Act" appearing in Georgia Laws, Extra
Session 1937-1938, pages 875-880, inclusive, as amended or hereafter amended,
or is discharged by an elective officer of Richmond County under whom he is
employed, and is thereafter re-employed as an Employee, upon the presentation to
the Commission of a certificate from the County Physician of Richmond County,
certifying that such Employee is in good health and able to perform actively the
duties of his employment, his services prior to such separation or discharge shall
be counted in his length of continuous permanent employment after being so
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re-employed, provided he shall pay back into the Fund, by paying the Treasurer,
within twelve months of filing such certificate with the Commission, the amount
refunded to such Participant by reason of such separation or discharge.
(e) 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) of the Code.
1.09 Earnings.
(a) The total salary, wages, or remuneration paid to the Participant by the Employer
during any Plan Year. Effective as of January 1, 1998, the term "Earnings" shall
also include any elective deferral (within the meaning of Code Section 402(g)(3))
and any amounts that are deferred by the Employer at the election of the
Employee that are not included in the Employee's gross income pursuant to Code
Section 125 or 457. Effective January 1,2001, Earnings shall also include
elective amounts that are not includable in the Employee's gross income by
reason of Code Section 132(f)(4). With respect to Plan Years from January 1,
1989 through December 31, 1996, the rules of Code Section 414(q)(6) shall apply
in determining a Participant's Earnings, except that the term "family" includes
only the Participant's spouse and any lineal descendants who have not attained
age 19 before the end ofthe Plan Year.
(b) Effective January 1, 2006, a Participant's Earnings shall be disregarded to the
extent such Earnings exceed $220,000, as such amount may be adjusted from time
to time for increases in the cost of living in accordance with the Code and
regulations thereunder. With respect to Plan Years from January 1, 2005 through
December 31, 2005, "$220,000" in the first sentence 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 ofthis subsection
(b) shall be replaced with "$205,000". With respect to Plan Years from January
1,2002 through December 31,2003, "$220,000" in the first sentence ofthis
subsection (b) shall be replaced with "$200,000". With respect to Plan Years
from January 1,2001 through December 31, 2001, "$220,000" in the first
sentence 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 of this subsection (b) shall be replaced with "$150,000". With
respect to Plan Years from January 1,1989 through December 31, 1993,
"$220,000" in the first sentence of this Section 1.14(b) shall be replaced with
"$200,000". With respect to Plan Years from January 1, 1976 through December
31, 1983, "$220,000" in the first sentence of this subsection (b) shall be replaced
with "$100,000".
(c) Notwithstanding anything in this Section 1.09 to the contrary, benefits for any
retired County Attorney who retired under this Plan prior to October 1, 1975 shall
be computed as ifthe Earnings for such County Attorney of Richmond County,
Georgia is $20,000 per annum, notwithstanding what amount he County incurred
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or spent per annum for legal services, and the benefits shall be computed from
January 1, 1973.
1.10 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, 1945.
1.11 Employee. Any employee, officer, appointee or electee of the Commission as now
constituted or hereafter constituted, and any employee, officer, appointee under any
official of the County as now constituted or hereafter constituted, by excluding:
(a) any person for whom the County makes contributions directly to another
retirement system or pension fund, including the Social Security retirement
system;
(b) any person whose customary employment is for less than thirty hours a week or
an aggregate of less than six months in any calendar year;
( c) employees of the Richmond County Department of Health and Department of
Family and Children's Services of Richmond County;
(d) the County Agent, County Home Demonstration Agent and the employees
thereof;
(e) officers elected by vote ofthe electorate;
(f) the employees, officers, appointees and electees of the Department of Public
Welfare of Richmond County,
(g) the employees, officers, appointees and electees of the Richmond County Board
of Health; and
(h) the County Agent and County Home Demonstration Agent of Richmond County;
1.12 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.
1.13 Fund. The Richmond County Pension Fund trust fund created in accordance with the
Plan and Trust.
1.14 Interest. Interest credited on Contributions from the January 1 next following the date of
which such Contributions are made to the earlier of: (a) the date of the Participant's
termination of employment for any reason and (b) the Participant's Normal Retirement
Date, with such interest compounded annually at the rate of 5% per annum.
1.15 Joint Annuitant. The person designated by the Participant to receive payments after the
death of the Participant as provided in accordance with Section 3.
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1.16 Participant. An Employee who is eligible to participate in the Plan as provided in Section
2.
1.17 Payee. The Beneficiary or Joint Annuitant designated by the Participant in accordance
with Section 1.04 or 1.15 to receive benefits under the Plan after his death.
1.18 Plan. The Richmond Employees Pension Fund as contained herein, all amendments
thereto which may hereafter be made, and any existing acts of the General Assembly of
Georgia pertaining to the Richmond Employees Pension Fund. The Plan shall include the
Trust as hereinafter defined.
1.19 Plan Year. The twelve month period ending December 31 of each year.
1.20 Total and Permanent Disability. The Commission shall determine whether a Participant
shall be considered Totally and Permanently Disabled and the Commission shall declare
in its findings whether or not such disability is permanent and total. The Commission
shall base its determination as to whether a Participant is Totally and Permanently
Disabled on whether the Participant is not able, on account of disability received in the
discharge of his duties, to adequately discharge the duties of his job or office, nor ever
will be; provided that no Participant shall be declared to be Totally and Permanently
Disabled to discharge the duties of his job or office, except upon the recommendation of
three (3) reputable physicians, after examination, who shall consider the case and make
their findings. One of the physicians shall be selected by the Commission, one by the
Participant, and these two shall select the third. The recommendation of the physicians
shall state that they "find the Participant totally and permanently disabled from
performing the duties of his job or office" and or that they "do not find the Participant
totally and permanently disabled from performing the duties of his job or office" and the
majority report of the physicians shall govern. Should the report of the physicians state
that they "find the Participant totally and permanently disabled from performing the
duties of his job or office", then the Employee shall be declared Totally and Permanently
Disabled, and entitled to receive the benefit is provided in Section 3.03, and his right to
receive the benefits shall date back to the time of injury.
If, after the Employee is declared Totally and Permanently Disabled, he desires to accept
other employment offered him by the Commission, with the County or under a County-
elected official, and he is also able to perform such employment, as such duties, he shall
be paid at least as much as he would receive from his pension but shall not receive a
pension. If, after the Employee has accepted such new employment, he wishes to leave
such employment for any reason fit he may be returned immediately to the pension list at
the sum that he was retired on, and the Commission may strike him from the payroll and
return him to the pension list at any time it sees fit.
Notwithstanding anything in this Section to the contrary, whether a Participant is Totally
and Permanently Disabled shall be subject to the exclusions set forth in Section 3.03.
1.21 Trust Agreement or Trust. The agreement of trust between the Commission, in its
capacity as the governing body of the Employer and the Commission, in its capacity as
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Trustee, which shall govern the continuation and maintenance of the trust fund, and all
amendments thereto.
1.22 Trustee. The Commission in its capacity as trustee.
1.23 Vested Percentage. Vested Percentage will be determined in accordance with Section
3.05.
SECTION 2
ELIGIBILITY AND PARTICIPATION
2.01 Eligibility. Each Employee on September 30, 1975, who was a Participant in the Plan as
of such date shall continue to participate in the Plan in accordance with the provisions
hereof. No Employees hired after September 30, 1975 shall be eligible to become a
Participant in this Plan.
2.02 Probationary Period. The probationary period is hereby fixed at one (1) year of
continuous employment either before or after October 1, 1975, or total continuous
employment for one (1) year, part of which is prior to October 1, 1975 and part of which
is after October 1, 1975.
2.03 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 such terms of the Plan in effect on the last day of such classification
as an Employee.
SECTION 3
RETIREMENT DATES AND BENEFITS
3.01 Normal Retirement. Normal retirement under the Plan is retirement from the employ of
the County on the Normal Retirement Date. 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 of a Participant shall be
the first day of the month coincident with or next following the date he reaches
age sixty (60).
(b) Amount of Retirement Benefit. The monthly retirement benefit payable to a
Participant who retires on his Normal Retirement Date shall be an amount equal
to 2% of the Participant's Average Earnings multiplied by the number of years of
Credited Service up to a maximum of sixty percent (60%) of the Average
Earnings. However, notwithstanding anything in the Plan to the contrary, a
Participant will not receive any benefits under the Plan ifthe Commission in its
sole discretion determines that the Participant was involuntarily separated from
service with the County due to the Participant's commission of any one or more
ofthe following:
(1) willful misconduct
(2) self inflicted injury
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(3) attempt to injure another person
(4) intoxication
(5) a crime under any state or federal law
(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
Section 4.02.
3.02 Early Retirement. Early retirement under the Plan is retirement from the employ of the
County prior to the Normal Retirement Date. Early retirement shall be authorized only in
the event that the Participant shall have both attained age 50 and completed at least 15
years of Credited Service. In the event of early retirement under these conditions,
payment of the retirement benefit shall be governed by the following provisions of this
Section. Notwithstanding the foregoing, if a Participant receives special early retirement
benefits under Section 3.09 or 3.10, the Participant shall be ineligible for benefits under
Section 3.02.
(a) Early Retirement Date. The Early Retirement Date of a Participant shall be the
first day of the month coincident with or next following the date he retires from
the employ ofthe County under the provision ofthis Section.
(b) Amount of Retirement Benefit. A Participant at retirement on his Early
Retirement Date shall at his option receive either:
(1) a deferred monthly retirement benefit commencing on his Normal
Retirement Date, provided he is then alive, equal to an amount computed
in the same manner as for normal retirement in accordance with Section
3.01(b), but based on Credited Service and Average Earnings as of his
Early Retirement Date; or
(2) an immediate monthly retirement commencing on his Early Retirement
Date equal to the benefit determined in Section 3.02(b) above, reduced by
5/12% for each complete month by which the Early Retirement Date of a
Participant precedes his Normal Retirement Date.
(c) Payment of Retirement Benefit: The monthly retirement benefit payable in the
event of early retirement shall be payable on the first day of each month. The first
payment shall be made on the optional date elected by the Participant under
Section 3.02(b) above and the last payment shall be the payment due next
preceding his date of death, subject to Section 4.02.
(d) Effective Date. This Section 3.02 is effective as of December 11, 1984.
3.03 Disability Retirement. A Participant may retire under the Plan ifhe becomes Totally and
Permanently Disabled from a cause arising out of and in the course of employment
whether the Total and Permanent Disability is caused by injury or illness; and provided
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that he has, prior to his Total and Permanent Disability, continuously, actively performed
the duties of his employment for at least one year as of March 1, 1945. I
(a) Notwithstanding anything in this Section to the contrary, a Participant shall not be
I
entitled to receive any disability retirement benefit ifthe Participant's Disability is
a result of any of the following:
(1) the Participant's willful misconduct,
(2) the Participant's self-inflicted injury,
(3) the Participant's attempt to injure another,
(4) Participant's intoxication or
(b)
(5) the Participant's commission of a crime under the laws of this state or
another state ofthe United States. I
Disability Retirement Date. The Disability Retirement Date of a Participant shall
be the first day of the month which coincides with or next follows the date the
Commission approves payment ofthe Participant's disability benefit. I
Disability Retirement Benefit. The monthly retirement benefit payable to a
I
Participant on his Disability Retirement Date shall be equal to one half of the
highest Earnings that the Participant has received as a Participant within the
period of seventy-two (72) months immediately preceding his Total and I
Permanent Disability; provided however, that should such Participant receive any
Workmen's Compensation while so disabled, such Workmen's Compens~tion so
received, excluding, medical, doctor, nursing and hospitalization, shall bb
subtracted from any pension voucher paid to the Participant, and he shall receive
I
only the excess of any pension due him after the subtraction of the amount of
Workmen's Compensation received by him, less any other indebtedness due the
County by the Participant. Such retirement shall herein be referred to as disability
retirement and payment ofthe disability retirement benefit shall be governed by
the following provisions ofthis Section.
(c)
(d)
Payment of Disability Retirement Benefit. The retirement benefit to which a
Participant is entitled in the event of his Total and Permanent Disability shall be
payable on the first day of each month. The first payment shall be made on the
Participant's Disability Retirement Date and the last payment shall be the
payment due next preceding the earlier of: (a) his date of death (subject to the
provisions of Section 4.02), or (b) the cessation of his Total and Permanent
Disability prior to his Normal Retirement Date.
(e)
Termination of Disability Retirement Benefit. Ifthe Participant's Total and
Permanent Disability ceases prior to his Normal Retirement Date and he does not
reenter the employ of the County within 60 days after his recovery, all rights of
the Participant in and to a disability retirement benefit shall cease and he shall be
entitled solely to the benefits, if any, provided in:
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(1) Section 3.02, ifhe had satisfied the requirements for early retirement as of
the date of inception of Total and Permanent Disability, or
(2) Section 3.05, ifhe had not satisfied the requirements for early retirement,
and
(3) either such benefit shall be based on his Credited Service and Earnings as
of the date of inception of Total and Permanent Disability.
(f) If the Participant's Total and Permanent Disability ceases prior to his Normal
Retirement Date and he is re-employed by the County within 60 days following
the date such Total and Permanent Disability ceases, his employment will be
deemed to have been continuous; provided that the period beginning with the first
month for which he received a disability payment and ending with the date of
reemployment will not be considered as Credited Service for purposes of the Plan.
3.04 Delayed Retirement. Delayed retirement under the Plan is retirement from the employ of
the County after the Normal Retirement Date. A Participant may remain in the active
employ of the County beyond his Normal Retirement Date only at the request of the
Commission and for such periods of additional employment as shall be mutually agreed
upon; provided that the Plan's administrator shall not interpret this sentence in a manner
that would violate the Age Discrimination in Employment Amendments of 1986, as
amended. In the event of delayed retirement, payment of the retirement benefit shall be
governed by the following provisions of this Section.
(a) Delayed Retirement Date. The Delayed Retirement Date ofa Participant shall be
the first day ofthe month coincident with or next following the date he actually
retires from the employ ofthe County after his Normal Retirement Date.
(b) Amount of Retirement Benefit. The monthly retirement benefit payable to a
Participant who retires on his Delayed Retirement Date shall be an amount
computed in the same manner as for normal retirement in accordance with Section
3.01(b), but based on Credited Service and Average Earnings as of his actual
retirement date; provided, however, such amount shall not be less than the
monthly benefit the Participant would have received had he retired on his Normal
Retirement Date.
(c) Payment of Retirement Benefit. The retirement benefit payable in the event of
delayed retirement shall be payable on the first day of each month. The first
payment shall be made on the Participant's Delayed Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to
Section 4.02.
(d) Effective Date. This Section 3.04 is effective as of December 11, 1984.
3.05 Termination of Employment.
(a) A Participant who terminates employment with the County prior to the
completion of 10 years of Credited Service, for any reason other than death,
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disability (as defined within this act) or retirement, shall receive a lump-sum cash
amount equal the total of his Contributions with 5% interest computed from
January 1, 1977, payable within 60 days following his date oftermination.
(b) A Participant who terminates employment with the County for any reason other
than death, disability, or early retirement after the completion of at least 10 years
of Credited Service, shall receive a deferred retirement benefit commencing on
his Normal Retirement Date, provided he is then alive, equal to the monthly
benefit computed in the same manner as for normal retirement in accordance with
Section 3.01(b) but determined as of his date oftermination, multiplied by the
applicable percentage (his "Vested Percentage") based on completed years of
Credited Service in accordance with the following tables
Completed Years of
Credited Service at
Termination Date
Applicable
Percentages of Monthly
Benefit Payable
Effective
Benefit Rate
Less than 1 0
10
11
12
13
14
15 of more
0%
50
60
70
80
90
100%
--0--
10.0%
13.2
16.8
20.8
25.2
30.0 +
(c) Notwithstanding anything in the Plan to the contrary, in lieu of the deferred
monthly retirement benefit provided in Section 3.05(B), the terminated
Participant (or his or her Beneficiary, if applicable) may elect to receive a
lump-sum amount equal to the total of his Contributions with 5% Interest
computed from January 1, 1977, such amount to be payable within 60 days
following the date of termination.
(d) Effective Date. This Section 3.05 is effective as of December 11, 1984.
3.06 Cost-of-Living Adiustment of Benefits. All retirement and disability benefits received
under this Section 3 shall be adjusted annually pursuant to this Section 3.06.
(a) Definition of Terms Used in This Section.
(1) "Current Cost-of-Living Index" means the average of the monthly
Consumer Price Index for the 12 month period ending December 31 each
year as determined by the Bureau of Labor Statistics ofthe United States
Department of Labor for all items and major groups, United States city
average.
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(2) "Participant Base Index" means
A. For any Participant who dies or retires under the provisions ofthis Plan on
or after October 1, 1975, the average ofthe Consumer Price Index for the twelve-month period
ending prior to the date of death or retirement;
B. For any Participant who dies or retired under this Plan prior to October 1,
1975, the average of the Consumer Price Index for the calendar year ending December 31, 1975.
In the event the base year used in computing the monthly Consumer Price Index
should be changed by the Bureau of Labor Statistics, the Commission, with the
advice of the Plan actuary, shall adjust the Participant Base Index of each retired
Participant with benefit payments commencing during the first year in which such
change was made so as to effect the original intent of this Section in an equitable
manner.
(3) "Adjusted Participant Index" means the Participant Base Index adjusted
for all percentage adjustments made in benefits prior to the current Annual
Adjustment Date.
(4) "Annual Adjustment Date" means March 1 st of each year commencing (a)
March 1, 1976 as to any Participant who dies or retires on or after October
1, 1975, and (b) March 1, 1976 as to any Participant who dies or retires on
or before October 1, 1975.
(b) Annual Adiustment. The Commission shall ascertain the Current Cost-of-Living
Index as of January 1 each year and the benefits being paid under Sections 3, 4, or
5 to any Participants, Beneficiary, or Joint Annuitant, as previously adjusted
under this Section, shall be further adjusted as ofthe Annual Adjustment Date as
follows:
(1) Ifthe Current Cost-of-Living Index is more than 100% of the Adjusted
Participant Index, the benefit shall be increased by a percentage equal to
the difference between (a) the percentage representing the Current Cost-
of-Living Index divided by the Adjusted Participant Index and (b) 100%.
(2) Ifthe Current Cost-of-Living Index is less than 100% of the Adjusted
Participant Index, the benefit shall remain unchanged.
(3) Effective December 6, 1979, notwithstanding the foregoing provisions of
this Section, no increase in the amount ofthe monthly retirement benefit
due to changes in the Current Cost-of-Living Index, effective at any
Annual Adjustment Date, shall be in excess of 5% of the amount of the
monthly retirement benefit payable immediately prior to such date.
(4) Effective Date. Except as otherwise noted, this Section 3.06 is effective as
of December 11, 1984.
3.07 Required Distribution Rules Effective January L 1987 Through December 3 L 2002.
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(a) Payment to the Participant.
(1) Any other provision of the Plan notwithstanding, the Plan will cash-out
each Participant's Accrued Benefit, or will begin annuity payments, no
later than the April 1 following the calendar year in which he retires, or
the later calendar year in which he reaches age 70'li.
(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 ofthe end of the
calendar year in which the Participant retires (or reaches age 70Yz iflater),
and the Accrued Benefit as of that date. However, ifthe beneficiary of a
joint and survivor annuity form of payment is not the spouse and is more
than 10 years younger than the Participant, payments to the beneficiary
will not exceed the applicable 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. If the Participant dies before his
payments have begun, the Commission will pay his entire Accrued Benefit no
later than December 31 of the calendar year which contains the fifth anniversary
of his death. However, this five-year rule will not apply ifthe primary
Beneficiary is an individual and circumstances permit the Commission to use the
exception described below.
(1) Surviving Spouse as Primary Beneficiary. If the Participant's surviving
spouse is the Beneficiary, the Commission will begin payments not later
than the end of the calendar year during which the Participant would have
reached age 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. If the Beneficiary dies before receiving
120 payments under the ten years certain and life annuity described in
Section 5.02, the Commission will continue to use the primary
Beneficiary's life expectancy for purposes of making payments to an
individual contingent Beneficiary.
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(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 40 1 (a)(9), as in effect from
time to time, and the proposed regulations under Code Section 401 (a)(9)
published in the Federal Register on July 27, 1987,52 FR 28070. If there is any
discrepancy between this Section 3.07 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 ofthis 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 401(a)(9) of the
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
of the 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. If there is no Designated Beneficiary as of September 30 ofthe year
following the year of the 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. Ifthe 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.
I
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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.). Ifannuity
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. If the Participant's interest is
distributed in the form of an annuity purchased from an insurance
company, distributions thereunder will be made in accordance with the
requirements of Code Section 401 (a)(9) and the Treasury regulations.
Any part of the Participant's interest which is in the form of an individual
account described in Code Section 414(k)will be distributed in a manner
satisfying the requirements of Code Section 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 ofthe reduction in the amount ofthe
participant's payments to provide for a survivor benefit upon death, but only ifthe beneficiary
whose life was being used to determine the distribution period described in section 4 dies or is no
longer the participant's beneficiary pursuant to a qualified domestic relations order within the
meaning of section 414(p);
16
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(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 of the next payment
interval even if that payment interval ends in the next calendar year.
Payment intervals are the periods for which payments are received, e.g.,
bi-monthly, monthly, semi-annually, or annually. All ofthe Participant's
benefit accruals as of the last day of the first distribution calendar year will
be included in the calculation of the 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 ofthe 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 ofthe 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
17
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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 1.40 1 (a)(9)-9 ofthe Treasury
regulations plus the excess of70 over the age ofthe Participant as of the
Participant's birthday in the year that contains the annuity starting date. If
the Participant's spouse is the Participant's sole Designated Beneficiary
and the form of distribution is a period certain and no life annuity, the
period certain may not exceed the longer of the Participant's applicable
distribution period, as determined under this Section 3.08(d)(2), or the
joint life and last survivor expectancy of the 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 ofthe 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 of the
Participant's death; or
B. ifthe 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 that contains the annuity starting date.
(2) No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no Designated Beneficiary as of September
30 of the year following the year of the Participant's death, distribution of
the Participant's entire interest will be completed by December 31 ofthe
calendar year containing the fifth anniversary of the 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 if the surviving
18
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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 ofthis 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 40 1 (a)(9) of the Internal Revenue Code and
section 1.401 (a)(9)-1, Q&A-4, ofthe Treasury regulations.
(2) Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the
Participant's death, the first distribution calendar year is the calendar year
immediately preceding the calendar year which contains the Participant's
Required Beginning Date. For distributions beginning after the
Participant's death, the first distribution calendar year is the calendar rear
in which distributions are required to begin pursuant to section 3.08(b)(2).
(3) Life Expectancy. Life expectancy as computed by use ofthe 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) 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.
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.
19
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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) Adiustments to the Defined Benefit Dollar Limitation.
(1) Effective as of January 1, 1976, ifthe retirement benefit ofa 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 ofthe 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
20
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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 of the Plan and (ii) the
actuarial equivalent (at such age) ofthe Defined Benefit Dollar Limitation
computed using a 5 percent interest rate and the applicable mortality table
as defined in Section 1.02 of the 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, ifthe benefit of a Participant begins after
the Participant attains the Maximum Age, the Defined Benefit Dollar
Limitation applicable to the Participant at such later age is the annual
benefit payable in the form of a straight life annuity beginning at the later
age that is actuarially equivalent to the Defined Benefit Dollar Limitation
applicable to the Participant at the Maximum Age (adjusted as required
pursuant to this Section 3.09). The actuarial equivalent of the Defined
Benefit Dollar Limitation applicable at an age after the Maximum Age is
determined as (i) the lesser ofthe actuarial equivalent (at such age) ofthe
Defined Benefit Dollar Limitation computed using the interest rate and
mortality table (or other tabular factor) specified in Section 1.02 of the
Plan and (ii) the actuarial equivalent (at such age) 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 of the 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 of the 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)(I).
(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
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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 of January 1, 1976 through December 31, 1999, the limitation
established by Section 415( e) of the 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 of July 1, 1996, and who are employed by Augusta-Richmond
County on October 1, 1975, may elect to receive retirements benefits under this Section.
Such election must be made on a form designated by Augusta-Richmond County between
October 1, 1996 and 4:00 p.m. on December 23, 1996. Any Participant electing to retire
early pursuant to this Section shall have until 4:00 p.m. on the seventh (7th) day
following such election to revoke same.
A. Enhanced Early Retirement Date. The Enhanced Early Retirement Date of a
Participant shall be the first day of the month next following the date he retires
from the employ ofthe County under the provisions ofthis Section.
B. Amount of Retirement Benefit. The monthly retirement benefit payable to a
Participant who retires on his Enhanced Early Retirement Date shall be an amount
equal to 2% of the highest salary or wage or remuneration received as a
Participant within the period of seventy-two (72) months immediately preceding
his retirement for each year of Credited Service plus an additional ten (10) years
of service to be added to the years of Credited Service for purposes of computing
the amount of the retirement benefit, up to a maximum of one hundred percent
(100%) of Average Earnings for the Participant's high three (3) years of Earnings,
any contrary provision of this Act notwithstanding. The amount of the monthly
enhanced retirement benefit shall not be reduced for any month or time period by
which the Early Retirement Date of a Participant precedes his Normal Retirement
Date, notwithstanding any other provision of the Plan.
C. Prerequisite for Electing Earlv Retirement. Any Participant electing Enhanced
Early Retirement shall be required to execute a covenant not to sue in favor of
Richmond County, Georgia and Augusta-Richmond County, Georgia and their
officials, agents, and employees for any and all claims arising out of such
employee's employment by Richmond County, Georgia and/or Augusta-
Richmond County, Georgia, and agreeing not to seek or accept any further
employment by Augusta-Richmond County, or its constitutional and elected
officials. This provision shall not be construed as prohibiting any such person
from seeking any elective position by the State of Georgia or Augusta-Richmond
County.
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 or by action of the elective official under whom he is employed, the
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Participant may elect to collect Plan benefits under this Section in lieu of any other
Section of this Plan; provided, however, no Participant shall draw any benefits under this
Section, and such benefits shall be forfeited, if his involuntary separation from the
services of the County is found by the Commission to have been caused by the
Participant's willful misconduct, or self-inflicted injury, or growing out of his attempt to
injure another, or due to intoxication or willful misconduct, or due to the commission of
crime under the laws ofthis State, or any other State of the United States.
(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 of this 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 of the 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) of the Code, an annuity plan described in
Section 403(a) of the Code, an annuity contract described in Section
403(b) ofthe Code, or a qualified trust described in Section 401(a) ofthe
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Code that accepts the Distributee's Eligible Rollover Distribution.
Effective for Plan Years ending before January 1, 2002, in the case of an
Eligible Rollover Distribution to the Employee's or former Employee's
surviving spouse, an Eligible Retirement Plan shall mean only an
individual retirement account or individual retirement annuity. Effective
as of January 1,2002, the definition of "Eligible Retirement Plan" shall
also apply to an annuity contract described in Section 403(b) ofthe Code,
an eligible plan under Section 457(b) 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) ofthe 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) of the Code; and (3) the portion of any
distribution that is not includible in gross income. Effective as of January
1, 2002, notwithstanding the foregoing, any amount that is distributed on
account of hardship, to the extent allowed under the Plan, shall not
constitute an Eligible Rollover Distribution.
3.13 Supplemental Retirement Benefits.
(a) Participants who were Employees in active service and employment as of January
1, 1998, and Participants who retired prior to January 1, 1998 (other than those
Participants who retired under the Enhanced Early Retirement provided for in
Section 3.10 hereof) shall receive, in addition to their normal retirement benefit, a
payment of one hundred dollars ($100.00) per month until their death or
termination of participation in the Plan; 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.
(b) Effective January 1,2004, participants who retired prior to January 1, 1996 (and
their Payees) shall receive, in addition to their normal retirement benefit, a
payment of one hundred and fifty dollars ($150.00) per month until their
termination of participation in the Plan.
3.14 Past Increases. All increased retirement payments previously granted and adopted by the
Commission pursuant to the provisions of Ga. L. 1971, pp. 3881 are hereby approved and
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authorized, and all subsequent increased retirement payments shall be pursuant to
provisions of Section 3.06.
3.15 Benefits Payable to Surviving Spouses. Effective March 10, 1966, any Participant may
elect in lieu of his or her normal retirement benefit pursuant to Section 3.01 hereof to
receive a reduced amount of pension according to the age and sex of the participant and
his or her spouse, commencing upon his or her actual retirement, with the provision that
upon his or her subsequent death, if his or her spouse is still alive, that 50% of the
pension which he or she was receiving immediately prior to his or her death, would be
continued to such spouse for the balance of the spouse's lifetime or until subsequent
remarriage. Such election must be made by the Participant at least one year prior to his
or her actual retirement and at any time prior to his or her actual retirement upon
furnishing evidence of good health to the board of commissioners of roads and revenues.
An election once made may be revoked by the Participant at any time prior to actual
retirement and will be automatically revoked if the beneficiary so designated by the
Participant dies before the Participant's actual retirement.
SECTION 4
DEATH BENEFITS
4.01 Death Prior to Retirement.
(a) Non-Duty Connected Death. If a Participant is separated from the service of his
employment, as defined in the Plan, by death, there shall be returned to his or her
surviving spouse if one, and ifnot, then to his or her next of kin upon application
therefor, 100% of his or her Contributions with Interest, less any payments made
to him or her by reason or any other provision of this Plan, and less any sum that
might be due by him or her to Richmond County, which amount so due shall be
paid to the County; and when one hundred per centum of his or her Contributions
with Interest, less authorized deductions, if any, is returned, then his or her estate,
or his or her personal representative shall receive from the Fund, no other sums
whatsoever. Notwithstanding the foregoing, if a terminated Participant entitled to
the deferred monthly retirement benefit provided in Section 3.02(b) dies prior to
the commencement of such benefit, his Beneficiary shall receive a lump sum
amount equal to the total of his Contributions with 5% Interest, computed from
January 1, 1977, such amount to be payable with 60 days following his date of
death.
(b) Duty Connected Death. 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 Contributions with Interest under the provisions of the 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 of the Participant surviving her, who have not reached their 18th
birthday, pension shall be continued to be paid for the benefit of such child or
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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.
(c) As used in this Section 4.01, "killed in line of duty" shall mean killed while
actively performing the prescribed duties ofthe Participant's job and not resulting
from any misconduct or negligence of such Participant; provided, however, that
no payments shall be made under the provisions of this section until such date as
any monthly benefits provided under the Workmen's Compensation Laws of
Georgia shall have ceased.
4.02 Death After Retirement.
(a) Effective March 10, 1966, any Participant who dies after retirement but prior to
receiving benefits in an amount equal to the amounts which have been paid into
such fund from his or her wages while employed shall be entitled to have the
difference paid to his or her surviving spouse, if one, and if not to the
representatives of his or her estate; provided, however, the surviving spouse is not
entitled to receive the pension provided for in Section 3.15.
(b) Effective October 1, 1975, notwithstanding Section 3.15, the surviving spouse of
any retired Participant who dies shall receive one-half ofthe benefits of the
deceased Participant, under the provisions ofthis Plan, until such time as the
surviving spouse dies or remarries.
( c) If a Participant dies subsequent to his retirement and 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 ofthe benefits ofthe deceased Employee, under the provisions ofthis
Plan; provided that no benefits shall payable hereunder if Plan benefits are paid
under Section 4.01.
4.03 Adiusted Benefit. The amount of monthly retirement benefit provided under this Section
4 shall be adjusted by the cost-of-living adjustment as provided in Section 3.06 upon
commencement of such benefit.
4.04 Designation of Beneficiaries.
(a)
Each Participant shall designate a Beneficiary to receive the benefits, if any,
which may be payable in the event of his death pursuant to the provision of
Section 3 or 4. Such designation shall be made in writing on a form provided by
the Commission and shall be signed and filed with the Commission. The
Participant may change his designation from time to time by filing the proper
form with the Commission, and each change shall revoke all prior designations by
the Participant. In each such designation the Participant may name one or more
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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 of the 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 paragraph A of this Section,
the remaining benefits, if any, shall be payable to a person designated by the
Participant to receive the remaining benefits, or, if no person was so designated,
then to a person designated by the Beneficiary ofthe deceased Participant;
provided, however, that if no person so designated be living upon the occurrence
of such contingency, the remaining benefits, if any, shall be payable to (a) the
spouse of the deceased Participant, if living; otherwise to (b) the descendents of
the deceased Beneficiary per stirpes or on their behalf as provided in Section
10.04; or ifnone, to (c) the legal representative of the estate of the deceased
Beneficiary, as the Commission in its sole discretion may determine.
( c) In the event the Commission does not direct the payments as specified in
paragraph (a) or (b) ofthis Section, the Commission may elect to have a court of
applicable jurisdiction determine to whom payments should be made, and the
Commission shall follow such instructions as the court may give.
SECTION 5
CONTRIBUTIONS
5.01 County Contributions. Effective October 1, 1975, contributions by the County shall
equal five percent (5%) of the aggregate of any Participant's Earnings, plus such
additional amounts as shall be determined by the County, based upon the
recommendations of an actuary. County contributions shall be paid to the Fund and shall
be used only for the benefit of the Participants and Beneficiaries of the Plan. Effective
November 20, 1984, notwithstanding the preceding sentence, on the recommendation of
the County's actuary, who shall be a member of the American Academy of Actuaries, or
an organization of which one or more members is a member of the American Academy
of Actuaries, the Commission may increase or decrease the County's contributions as
recommended by such actuary.
5.02 Participant Contributions.
(a) Effective October 1, 1975, aach Participant shall contribute to the Fund an amount
equal to five (5%) per cent of his Earnings. Contributions by the Participant shall
cease at the earlier of (i) his date oftermination of employment for any reason,
and (ii) his actual retirement date. Participant contributions shall be made by
payroll deduction and in such manner as determined by the Commission.
(b) Withdrawals of Participant Contributions: In all cases where previously adopted
provisions ofthe 1945 act as amended call for participants contributions to be
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refunded that such refunding will be with "interest" as computed in subsection (a)
ofthis Section 5.02.
(c) Return of Contributions: Any Participant who voluntarily absolutely separates
from the service of the Commission or from the service of the elective officer by
whom he is employed or who is discharged as provided by the "Richmond
Officers and Employees' Act" in Ga. L. E.S., 1937-1938, pp. 875-880 inclusive,
as amended, or who was discharged by the elective officer under whom he is
employed before being retired under any provisions ofthe Plan, shall have
returned to the Participant or his estate, within ninety (90) days ofthe date of
application after he is absolutely separated or his discharge becomes final, the
entire amount of his Contributions, without Interest, less any disability payments
he has received. Once the sum is returned to the Employee, he shall not have any
further claim or right to receive any fund, or payments whatsoever of any kind of
character from the Fund.
SECTION 6
ADMINISTRATION OF PLAN
6.01 Administration.
(a) Powers of the Commission. The Commission shall control the administration of
the Plan hereunder, with all powers necessary to enable it properly to carry out its
duties in that respect. Not in limitation, but in amplification of the foregoing, the
Commission shall have the power to construe the Plan and to determine all
questions that shall arise thereunder, and shall also have all the powers elsewhere
herein conferred upon it. It shall decide all questions relating to the eligibility of
Employees to participate in the benefits of the Plan, and shall determine the
benefits to which any Participant, Beneficiary, or Joint Annuitant may be entitled
under the Plan. The decisions of the Commission upon all matters within the
scope of its authority shall be final and binding upon all parties to this instrument,
Participants, and Participant's Beneficiaries and Joint Annuitants.
(b) Records of the Commission. All acts and determination of the Commission shall
be duly recorded by the County clerk, or under his supervision, and all such
records, together with such other documents as may be necessary for the
administration of the Plan shall be preserved in the custody of such clerk.
(c) Exemption from Liability of the Commission. The members of the Commission,
and each of them, shall be free from all liability, joint, and several, for their acts,
omissions and conduct, and for the acts, omissions and conduct oftheir duly
constituted agents, in the administration ofthe Plan, and the County shall
indemnify and save each of them harmless from the effects and consequences of
their acts, omissions, and conduct in their official capacity, except to the extent
that such effects and consequences shall result from their own willful misconduct.
(d) Miscellaneous.
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(1) The Commission shall prepare and distribute to the Participants
information concerning the Plan, at the expense of the County, in such
manner as it shall deem appropriate.
(2) To enable the Commission to perform its functions, the County shall
supply full and timely information of all matters relating to the
compensation and length of service of all Participants, their retirement,
death or other cause oftermination of employment, and such other
pertinent facts as the Commission may require.
(3) The Commission shall be entitled to rely upon all tables, valuations,
certificates, and reports furnished by an actuary, who shall be a member of
the American Academy of Actuaries, or an organization which one or
more members is a member of the American Academy of Actuaries and
upon all certificates and reports made by an accountant selected or
approved by the Commission. The Commission shall be fully protected in
respect to any action taken or suffered by it in good faith in reliance upon
the advice or opinion of any actuary, accountant, or attorney, and all
action so taken or suffered shall be conclusive upon each member of the
Commission and upon all persons interested in the Plan.
SECTION 7
TRUST FUND AND TRUSTEES
7.01 Trust Fund.
(a) There is created a permanent pension Fund for the benefit of each Participant
covered by this Plan, and the Fund shall be known as the "Richmond County
Employees' Pension Fund" and shall be kept in a separate account earmarked
"Richmond County Employees' Pension Fund", with a separate, permanent record
thereof. The assets of the Fund shall be held and administered by the
Commission. The Fund shall consist of all payments by the County and
Participants to the Fund and earnings from investments. The assets of the Fund
shall be valued as of the end of each plan year, and at any other time required by
the Commission, and at the then existing book and market value. The Fund is
hereby declared not to be the property of the Commission or the County, and this
includes any sum paid in or directed to be paid in by the Commission and it shall
reserve no property in any sum raised or due by virtue ofthe Plan.
(b) The Commission shall maintain a separate and permanent record ofthe Fund. All
decisions ofthe Commission in regard to the Fund or any payments or
withdrawals therefrom shall be recorded in the minutes of the Commission and
also entered on the permanent record kept by the Commission and such
permanent record shall be open to inspection by any interested person at all
regular business hours.
(c)
The Commission shall keep the Treasurer and Clerk ofthe Commission bonded at
all times and in an amount equal to the total Fund in possession of or under the
control of either; provided, however, that such bond shall not exceed Two-
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Hundred Thousand Dollars ($200,000.00) as to each party. The bond shall also
cover any acting Treasurer or Clerk.
7.02 Amendment of Trust. The County shall have the right at any time, by an instrument in
writing duly executed by the Commission and to the Trustee, to modify, alter, or amend
the Trust in whole or in part; provided, however, that the duties, powers, and liability of
the Trustee hereunder shall not be substantially increased without its written consent, and
provided further, that no such amendment shall have the effect of revesting in the County
any part of the principal or income of the Fund.
7.03 Discontinuance of Trust and Vesting. The County expressly reserves the right to
terminate this Plan and Trust Agreement at any time. Upon termination of the Plan by
the County, or complete discontinuance of Contributions thereunder, having the effect of
termination, the rights of each Participant to benefits accrued to the date of such
termination or discontinuance, to the extent then funded, shall be nonforfeitable. In either
case the Commission shall, upon instructions from the County, continue to administer the
Fund as provided in Section 7. No part of the Fund shall at any time revert to the County
unless all benefits for Participants and their Payees have been provided.
7.04 Powers 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 7.05 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 ofthe Commission shall be duly recorded by the
County clerk, or under his supervision and all such records, together with such
other documents as may be necessary for the administration of the Plan, shall be
preserved in the custody of such clerk.
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(d) The Commission shall prepare and distribute to the Employees information
concerning the Plan at the expense ofthe County, in such manner as it shall deem
appropriate.
7.05 Investment of Fund.
(a) Effective February 11, 1998, the County comptroller shall be the custodian of
such Fund and shall deposit all contributions to the Plan in a bank or banks, and,
pursuant to the direction of the pension fund investment committee, which
committee shall consist of the members of the Augusta-Richmond County
Commission, shall invest and reinvest, from time to time, any portion thereof not
immediately needed for the payment of pensions, in securities approved by law
for the investment oftrust funds; and, in such securities other than those
specifically approved by law for the investment of trust funds, as the pension fund
investment committee shall deem proper, from time to time; provided, however,
that the amount of the pension fund which may be invested in such securities
other than those specifically approved by law for the investment of trust funds
may not exceed fifty percent (50%) ofthe total amount of the fund then
outstanding; and in addition thereto, the investment committee may invest such
funds in bonds and debentures assumed or guaranteed by such existing
corporation or institution existing under the laws 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) 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 of the Official Code of Georgia
Annotated, as amended. The amount ofthe pension fund which may be invested
in the bonds and debentures of anyone corporation may not exceed ten percent
(10%) of the total amount of such fund then outstanding.
(b) Effective October 1, 1975, the Board is authorized to deposit funds held by it with
any back located in Richmond County, Georgia, as depository. The Board shall
be the authority to invest and re-invest money which is held for the purpose of
paying pensions, but which is not needed for the immediate payment thereof, as
determined by the Board, including securities of agencies of said government of
the State of Georgia; of Richmond County; or any other county or municipality in
the State of Georgia; or insured savings in savings and loan associations and state
and national banks; corporate bonds and debentures rated "AA" or better
according to Moody's or Standard & Poor's rating at the time of the investment;
corporate stocks which are non-assessable; dividend-paying stocks, common or
preferred, in corporations having an "A" rating or better according to Standard &
Poor's index current at the time ofthe investment, provided cash dividends of
such common stocks have been paid out of current earnings in at least two of the
last three years preceding the purchase, provided, however, that the Fund shall not
own more than fifteen percent (15%) of the issued and outstanding shares of any
one corporation.
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(c) Withdrawal from the fund for investment purposes shall be accomplished by
vouchers drawn by the Treasurer, counter-signed by the mayor ofthe County or
the mayor's designee.
7.06 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%) or
more of Earnings and the five percent (5%) or more contributed by the Commission, and
shall be insufficient to pay the pensions provided for in the Plan, then and in that event
the Commission shall levy a sufficient tax to meet all payments as required by the Plan,
and from time to time to continue to do so.
7.07 Resignation of Trustee. The Trustee may resign as Trustee of the Trust at any time by
giving sixty (60) days written notice to the County, or with the consent of the County,
may resign at any time. At such time as the resignation becomes effective, the Trustee
shall render to the County an account of its administration of the Fund during the period
following that covered by its last annual account, and shall perform all acts necessary to
transfer and deliver the assets of the Fund to its successor.
7.08 Successor Trustees. In the event of vacancy of one or more individuals in the Trusteeship
of this Trust occurring at any time, the Commission shall designate and appoint qualified
successor Trustee(s) until such individuals are elected by the electorate.
7.09 Disbursements. Upon written direction (which may be a continuing one) from the
Commission as to the name of any person to whom money is to be paid from the Fund
and the amount thereof, checks shall be drawn by the Trustee in the name of the person
designated by the Commission and deliver such checks in such manner and amounts and
at such time as the Commission shall direct. In the event the Trustee shall deem it
necessary to withhold any distribution pending compliance with legal requirements with
respect to probate of wills, appointment of personal representatives, payment of or
provision for estate or inheritance taxes, or for death duties or otherwise, the Trustee shall
withhold payment pending receipt of the instructions from the County Attorney to make
such distribution.
SECTION 8
AMENDMENT AND TERMINATION
This Section 8 shall apply only to the extent that it does not otherwise conflict with applicable
Georgia law, including, but not limited to, Article I, Section 1, Paragraph X of the Georgia
Constitution.
8.01 Amendment of the Plan. The County shall have the right at any time pursuant to
authorization of the Commission, to amend any or all of the provisions of the Plan;
provided, however, that no such amendment shall authorize or permit any part of the
Fund to be diverted to purposes other than for the exclusive benefit of Participants and
their Payees; and further provided, that no amendment shall have the effect of revesting
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in the County any portion of such Fund except such amounts which remain in the Fund
after termination of the Plan and after all liabilities under the Plan have been satisfied.
8.02 Termination ofthe Plan.
(a) The County expects this Plan to be continued indefinitely but, of necessity,
reserves the right to terminate the Plan and its contributions thereunder at any
time by action of the Commission; provided, however, that should the County
terminate the Plan or completely discontinue contributions hereunder so as the
amount to a Plan termination, the accrued benefit of each Participant, to the extent
then funded, shall become fully vested and nonforfeitable as the date of
termination.
(b) In the event of termination of the Plan and upon receipt of written notice of such
termination, the Commission shall arrange for the Fund to be apportioned and
distributed in accordance with the following procedure:
(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
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 with
Interest, less the aggregate amount of any benefit payments previously made with respect to such
Participant, will be determined and such amount apportioned from the asset value. Such asset
value, if insufficient to provide such amounts in full will be apportioned among such Participants
in proportion to the amounts determined with respect to them.
B. If there be any asset value remaining after the apportionment under A.
above, apportionment shall next be made with respect to each retired Participant receiving a
retirement benefit hereunder an such date, each person receiving a retirement benefit on such
date on account of a retired (but since deceased) Participant, each Participant who has, by such
date, reached his Normal Retirement Date but has not yet retired, in the amount required to
provide such retirement benefit as of the date oftermination ofthe 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.
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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 ofthe 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 lease 10 years of Credited Service and each former Participant
then entitled to a deferred benefit under Section 3.05(b) hereofwho 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 of the accrued 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 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., or D. above, apportionment shall lastly be made with respect to each active Participant on
such date who is not entitled to an apportionment under B., c., or D. 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 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.
F. In the event that any asset value remains after the full apportionments
specified in paragraphs A., B., C., D., and E. above, such excess shall revert to the County.
(4) The Commission shall cause to be distributed, in accordance with the
manner of distribution determined under subparagraph (b)(2) of this
Section, the amounts apportioned under subparagraph (b)(3) of this
Section.
SECTION 9
MISCELLANEOUS
9.01 Headings. The headings and subheadings in this Plan have been inserted for convenience
of reference only and are to be ignored in any construction of the provisions hereof.
9.02 Construction.
(a) In the construction ofthis Plan the masculine shall include the feminine and the
singular the plural in all cases where such meanings would be appropriate.
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(b) Each Section of this Plan and every part of each Section are declared to be
independent Sections and the holding of any Section or part of any section to be
void shall not affect the other Sections or parts of such Sections, and it is declared
that the other Sections not so held to be void, or parts of Sections not held to be
void would have been enacted regardless of any Section or part of any Section
being held void.
( c) The Plan constitutes a contract, from the effective date of this Act, between the
Commission and the County and each Employee who is or who may hereafter
become entitled to benefits under the Plan, which includes Participants now
existing or that hereafter exist.
(d) This Plan shall be construed in accordance with the laws of the State of Georgia.
9.03 Nonalienation. No benefits payable under the Plan will be subject to the claim or legal
process of any creditor of any Participant or beneficiary, and no Participant or beneficiary
will alienate, transfer, anticipate, or assign any benefits under the Plan, except that
distributions will be made pursuant to (a) qualified domestic relations orders issued in
accordance with Code Section 414 (p ), (b) judgments resulting from federal tax
assessments, and (c) as otherwise required by law.
9.04 Legally Incompetent. If any Participant or Payee is a minor, or, in the judgment of the
Commission is otherwise legally incapable of personally receiving and giving a valid
receipt for any payment due him hereunder, the Commission may, unless and until claim
shall have been made by a duly appointed guardian or committee of such person, direct
that such payment or any part thereof be made to such person's spouse, child, parent,
brother, or sister or other person deemed by the Commission to have incurred expense for
or assumed responsibility for the expenses of such person. Any payment so made shall be
a complete discharge of any liability under this Plan for such payment.
9.05 Benefits Supported Only By Fund. Any person having any claim under the Plan will
look solely to the assets of the Fund for satisfaction. In no event will the County, or any
of its officers, members of the Commission, or agents, be liable in their individual
capacities to any person whomsoever, under the provisions ofthe Plan.
9.06 Discrimination
The County, through the Commission, shall administer the plan in a uniform and
consistent manner with respect to all Employees and shall not permit discrimination in
favor of officers, supervisory or highly-paid employees.
9.07 Limitation of Liability; Legal Actions. It is expressly understood and agreed by each
Employee who becomes a Participant hereunder, that except for its or their willful
negligence or fraud, neither the County, the Trustee, nor the Commission shall be in any
way subject to any suit or litigation, or to any legal liability, for any cause or reason
whatsoever, in connection with this Plan or its operation, and each such Participant
hereby releases the County, Trustee, Commission, and all its officers and agents from any
and all liability or obligation.
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9.08 Claims. Any payment to a Participant, Joint Annuitant, or Beneficiary, or to their legal
representatives, in accordance with the provision of this Plan, shall to the extent thereof
be in full satisfaction of all claims hereunder against the Commission, Trustee, and the
County, any of whom may require such Participant, Beneficiary, or legal representative,
as a condition precedent to such payment, to execute a receipt and release therefore in
such form as shall be determined by the Commission.
9.09 Forfeitures. Forfeitures arising from any cause whatsoever under this Plan shall not be
applied to increase the benefits any Participant would otherwise receive under the Plan at
any time prior to the termination of the Plan or the complete discontinuance of County
contributions hereunder; forfeitures shall be applied to reduce the County's contributions
under the Plan in the then current or subsequent years.
9.10 Maximum of One Benefit at a Time. There shall not be paid to any person more than one
benefit at a time under the Plan.
9.11 Applications. All applications for pensions shall be made to the Clerk of the
Commission on forms prescribed by the Commission and printed for use in such cases,
and it shall be the duty of the Commission to provide such forms at all times and the
Clerk of the Commission shall immediately transmit such application to the County
Attorney for his approval as to form and procedure, and upon his approval, same shall be
presented to the Commission.
9.12 Report of Treasurer. At the close of each year the Treasurer shall make a written report
to the Commission of funds on hand and liabilities of the Fund, both accrued and
contingent.
9.13 Consequence of Plan Violation. Should any person subject to the Plan or administering
the Plan violate the provisions of the Plan, in addition to any other applicable penalties,
such person shall be guilty of a misdemeanor for such violation, and shall be punished
accordingly under the laws of the state of Georgia.
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IN WITNESS WHEREOF, the County has caused this amended Plan to be duly executed
2007
as ofthe ----.!..Qday of July 2666, but effective as of the dates set forth herein.
AUGUSTA GEORGIA, AS SUCCESSOR TO
THE CITY COUNCIL OF AUGUSTA
By: t!l~cx('Y-
1st Reading June 19, 2007
AUGUSTA GEORGIA, AS SUCCESSOR TO
THE CITY COUNCIL OF AUGUSTA
Cf} <<-c1-. ~ ~
Mayor ~
This Ordinance shall be effective as of the dates set forth herein. All ordinances and parts of
Ordinances in conflict with the provisions of this Ordinance are hereby repealed.
/0
APPROVED AND ENACTED by the Augusta-Richmond County Commission, on the
-1
day Of~ 200<1.
ca d4- _
Mayor ~
~
:JJT:~
Vf4t1t/
~rk
Publish in the Augusta ~breni~1~e July 19, 2007
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