HomeMy WebLinkAboutORD 7239 AMENDING ORD 7228 ENTITLED 1945 RICHMOND EMPLOYEES PENSION FUND '
ORDINANCE NO. 7 239
RICHMOND EMPLOYEES PENSION FUND
As Amended and Restated Effective January 1, 2010
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TABLE OF CONTENTS
Page
Section 1. DEFINITIONS .........................................................................................................2
1.01. Accrued Benefit .................................................................................................2
1.02. Actuarial Equivalent ..........................................................................................2
1.03. Beneficiary .........................................................................................................2
1.04. Code ...................................................................................................................2
1.05. Commission .......................................................................................................2
1.06. Contributions ......................................................................................................2
1.07. Credited Service ................................................................................................3
1.08. Earnings .............................................................................................................3
1.09. Effective Date ....................................................................................................4
1.10. Employee ...........................................................................................................4
1.1 l. Employer or County ...........................................................................................5
1.12. Fund ...................................................................................................................5
1.13. Interest ................................................................................................................5
1.14. Joint Annuitant ...................................................................................................5
l .15. Participant ..........................................................................................................5
1.16. Payee ..................................................................................................................5
1.17. Plan ....................................................................................................................5
1.18. Plan Year ............................................................................................................5
1.19. Total and Permanent Disability .........................................................................5
1.20. Trust Agreement or Trust ...................................................................................6
1.21. Trustee ................................................................................................................6
Section 2. ELIGIBILITY AND PARTICIPATION .................................................................6
2.01. Eligibility ...........................................................................................................6
Section 3. RETIREMENT DATES AND BENEFITS .............................................................6
3.01. Normal Retirement .............................................................................................6
3.02. Early Retirement ................................................................................................7
3.03. Disability Retirement .........................................................................................8
3.04. Delayed Retirement ...........................................................................................9
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3.05. Termination of Employment ............................................................................10
3.06. Cost-of-Livin Ad'ustment of Benefits. 11
g J ..........................................................
3.07. Required Distribution Rules ............................................................................12
3.08. Code Section 415 Limit ...................................................................................14
3.09. Enhanced Early Retirement for 1996 ...............................................................21
3.10. Special Unreduced Early Retirement ...............................................................22
3.11. Rollover Distributions ......................................................................................22
3.12. Supplemental Retirement Benefit ....................................................................24
3.13. Past Increases ...................................................................................................24
3.14. Benefits Payable to Surviving Spouses ............................................................24
3.15. One-Time Enhanced Normal Retirement Incentive Program
("ENRIP") for 2009 .........................................................................................25
Section 4. DEATH BENEFITS ..............................................................................................27
4.01. Death Prior to Retirement ................................................................................27
4.02. Death After Retirement ....................................................................................28
4.03. Adjusted Benefit ..............................................................................................28
4.04. Designation of Beneficiaries ............................................................................28
Section 5. CONTRIBUTIONS ...............................................................................................29
5.01. County Contributions ......................................................................................29
5.02. Participant Contributions .................................................................................30
Section 6. OPTIONAL FORMS OF RETIREMENT INCOME ............................................30
6.01. Election of Optional Retirement Benefits ........................................................30
6.02. Description of Options .....................................................................................31
6.03. Joint Annuitant .................................................................................................31
6.04. Cancellation of Election ..................................................................................31
Section 7. ADMINISTRATION OF PLAN ...........................................................................31
7.01. Administration .................................................................................................31
Section 8. TRUST FUND AND TRUSTEES .........................................................................32
8.01. Trust Fund ........................................................................................................32
8.02. Amendment of Trust ........................................................................................33
8.03. Discontinuance of Trust and Vesting ...............................................................33
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8.04. Powers of the Commission ..............................................................................33
8.05. Investment of Fund ..........................................................................................34
8.06. T�ation ...........................................................................................................35
8.07. Resignation of Trustee .....................................................................................35
8.08. Successor Trustees ..........................................................................................35
8.09. Disbursements ..................................................................................................36
Section 9. AMENDMENT AND TERMINATION ...............................................................36
9.01. Amendment of the Plan ...................................................................................36
9.02. Termination of the Plan ...................................................................................36
Section 10. MISCELLANEOUS ..............................................................................................38
10.01. Headings ..........................................................................................................38
10.02. Construction .....................................................................................................38
10.03. Nonalienation ...................................................................................................39
10.04. Compliance with HEART Act .........................................................................39
10.05. Legally Incompetent ........................................................................................39
10.06. Benefits Supported Only By Fund ...................................................................39
10.07. Discrimination ..................................................................................................39
10.08. Limitation of Liability; Legal Actions .............................................................39
10.09. Claims ..............................................................................................................40
10.10. Forfeitures ........................................................................................................40
10.11. M�imum of One Benefit at a Time ................................................................40
10.12. Applications .....................................................................................................40
10.13. Report of Treasurer ..........................................................................................40
10.14. Consequence of Plan Violation ........................................................................40
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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 , 2010, the Augusta-Richmond County Commission, as successor to the
Richmond County Board of Commissioners approved this restatement of the Plan effective
January 1, 2010, except as otherwise provided herein, to (i) incorporate all amendments to the
Plan since its establishment, including a good faith amendment to comply with the Economic
Growth and T� Relief Reconciliation Act of 2001 ("EGTRRA") effective for Plan Years
beginning on and after January 1, 2002; (ii) update the Plan to comply with applicable changes in
federal laws and regulatory guidance included in the 2009 Cumulative List under IRS Notice
2009-98, including changes to comply with applicable provisions of the Pension Protection Act
of 2006 ("PPA"), the Heroes Earnings Assistance and Relief Tax Act of 2008 ("HEART"), the
Worker, Retiree, and Employer Recovery Act of 2008 ("WRERA"), and the Final Regulations
under Code Section 415; and (iii) supersede the prior restatement of the Plan effective January 1,
2010, which was approved December 1, 2009. The Plan is also restated in accordance with past
practices required to maintain the Plan's tax-qualified status pursuant to Sections 401(a) and
414(d) of the Internal Revenue Code of 1986, as amended, and the applicable Treasury
regulations and other guidance, and includes a few other changes designed to facilitate its
administration.
It is the County's intention to fully honor all benefits and rights that Plan Participants have
accrued under the Plan prior to this restatement. The Plan shall be administered and construed
accordingly, and the Plan's administrator shall construe and interpret every provision of the
Plan's restatement as effective January 1, 2010, except as otherwise provided herein, in a manner
that preserves each Plan Participant's benefits or rights that accrued prior to the date of adoption
of this restatement.
The Plan will be administered by the Commission as described in Section 7. All benefits to be
provided under the Plan will be funded under a trust established in accordance with Section 8.
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 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°/a of the
unloaded female mortality rates underlying the mortality rates in the 1994 Group
Annuity Reserving Table, projected to 2002, 94 GAR, as provided under Revenue
Ruling 2001-62.
1.03. Beneficiarv - 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.
1.04. Code - The Internal Revenue Code of 1986 as amended from time to time, and
regulations or rulings issued thereunder.
1.05. Commission - Augusta-Richmond County Commission, as successor to the Richmond
County Board of Commissioners, which shall act in the dual capacity of administrator of
the Plan and Trustee of the Fund.
1.06. Contributions - The payments made by the Participants to the Fund in accordance with
Section 5.
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1.07. Credited Service - The number of years of uninterrupted and continuous employment
(completed months expressed as a fractional year) of the Employee with the Employer
from (a) the date he last entered the employment of the Employer, to (b) the earlier of his
date of termination of employment for any reason or his actual retirement date.
Credited Service will not be interrupted by:
(a) vacation, or approved leave of absence authorized by the Employer in accardance
with a uniform policy applied on a nondiscriminatory basis to all Employees
similarly situated;
(b) voluntary or involuntary service in the Armed Forces of the United States,
provided the Employee retains statutory reemployment rights under applicable
state or federal law, and resumes employment after his honorable discharge from
military duty within the time required by such law;
(c) reelection or reappointment at the end of a term; or
(d) periods during which the Employee incurs a Total and Permanent Disability
within the meaning of Section 3.03, provided that he recovers from a Total and
Permanent Disability and is reemployed by the Employer as required under
Section 3.03(a)(7) or 3.03(b)(4).
For benefit purposes, no Participant will receive any credit for any period of inactive
employment. For vesting purposes, an Employee who has one or more breaks in
employrnent will receive credit only from his most recent date of reemployment.
Notwithstanding anything in this Section to the contrary, any Participant who before
retirement, voluntarily separates from his employment as provided for in this Act, or is
discharged, or his office or position abolished, as provided by the "Richmond Officers
and Employees Act" appearing in Georgia Laws, Extra Session 1937-1938, pages 875-
880, inclusive, as amended or hereafter amended, or is discharged by an elective officer
of Richmond County under whom he is employed, and is thereafter re-employed as an
Employee, upon the presentation to the Commission of a certificate from the County
Physician of Richmond County, certifying that such Employee is in good health and able
to perform actively the duties of his employment, his services prior to such separation or
discharge shall be counted in his length of continuous permanent employment after being
so re-employed, provided he shall pay back into the Fund, by paying the Treasurer,
within twelve months of filing such certificate with the Commission, the amount
refunded to such Participant by reason of such separation or discharge.
Effective December 12, 1994, notwithstanding anything in the Plan to the contrary,
contributions, benefits, and Credited Service with respect to qualified military service
shall be provided in accordance with Section 414(u) of the Code.
1.08. Earnings - The total salary, wages, or remuneration paid to the Participant by the
Employer during any period of 12 consecutive months. Effective as of January 1, 1998,
the term "Earnings" shall also include any elective deferral (within the meaning of Code
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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(fl(4).
The Participant's Earnings taken into account for purposes of the Plan shall be limited to
$150,000 for any determination period beginning in 1996 or earlier; $160,000 for any
Plan Year beginning in 1997, 1998, or 1999; $170,000 for any Plan Year beginning in
2000 or 2001. Notwithstanding the preceding sentence, if the Participant has completed
one hour of Credited Service on or after January 1, 2002, the Participant's Earnings taken
into account for purposes of the Plan shall not exceed $200,000 as adjusted under Code
Section 401(a)(17)(B).
Notwithstanding anything in this Section to the contrary, benefits for any retired County
Attorney who retired under this Act prior to October 1, 1975 shall be computed as if the
Earnings for the County Attorney of Richmond County, Georgia is $20,000.00 per
annum, notwithstanding what amount the County incurred or spent per annum for legal
services, and the benefits shall be computed from January 1, 1973.
1.09. Effective Date - The original effective date of the Plan is March 1, 1945. The effective
date of this restatement is January 1, 2010, except as otherwise provided herein.
1.10. Emplo,� - Any employee, officer, appointee or electee of the Commission as now
constituted or hereafter constituted, and any employee, officer, appointee under any
official of the County as now constituted or hereafter constituted, but excluding:
(a) any person for whom the County makes contributions directly to another
retirement system or pension fund, including the Social Security retirement
system;
(b) any person whose customary employment is for less than thirty hours a week or
an aggregate of less than six months in any calendar year;
(c) employees of the Richmond County Department of Health and Department of
Family and Children's Services of Richmond County;
(d) the County Agent, County Home Demonstration Agent and the employees
thereof;
(e) officers elected by vote of the electorate;
( fl 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
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(h) the County Agent and County Home Demonstration Agent of Richmond County.
1.11. Emplover or County - Augusta-Richmond County, Georgia, as successor by
consolidation to The City Council of Augusta and Richmond County, created by 1995
Ga. Laws p. 3648, as amended.
1.12. Fund - The Richmond County Pension Fund trust fund created in accordance with the
Plan and Trust.
1.13. Interest - Interest credited on Contributions from the January 1 next following the date of
which such Contributions are made to the earlier of: (a) the date of the Participant's
termination of employment for any reason and (b) the Participant's Normal Retirement
Date, with such interest compounded annually at the rate of 5%.
1.14. Joint Annuitant - The person designated by the Participant to receive payments after the
death of the Participant as provided in accordance with Section 3.
1.15. Participant - An Employee who becomes eligible to participate in the Plan as provided in
Section 2.
1.16. Pa - The Beneficiary or Joint Annuitant designated by the Participant in accordance
with Section 1.03 or 1.14 to receive benefits under the Plan after his death.
1.17. 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.
1.18. Plan Year - The twelve month period ending December 31 of each year.
L 19. Total and Permanent Disabilitv - 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 ar office", then the Employee shall be declared Totally and Permanently
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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.
1.20. Trust Apreement or Trust - The agreement of trust between the Commission, in its
capacity as the governing body of the Employer and the Commission, in its capacity as
Trustee, which shall govern the continuation and maintenance of the trust fund, and all
amendments thereto.
1.21. Trustee - The Commission in its capacity as trustee.
SECTION 2.
ELIGIBILITY AND PARTICIPATION
2A1. Eli 'ability
Each Participant in the Plan on December 3l, 2009 (according to the Plan terms then in
effect) shall continue to be a Participant, and no other Employee is eligible to become a
Participant in this Plan, and no other Employee shall be eligible to participate (because
1976 Ga. Laws, p. 4500, § 2 provides that no Employee hired after September 30, 1975 is
eligible to become a Participant in this Plan).
SECTION 3.
RETIREMENT DATES AND BENEFITS
3.01. Normal Retirement
Normal retirement under the Plan is retirement from the employ of the County on the
Normal Retirement Date. In the event of normal retirement, payment of the retirement
benefit shall be governed by the following provisions of this Section.
A. Normal Retirement Date: The Normal Retirement Date of a Participant shall be
the first day of the month coincident with or next following the date he reaches
age sixty (60).
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Normal Retirement Date shall be an amount equal
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to 2% of the Participant's highest Earnings received as an Employee within the
period of seventy-two (72) months immediately preceding his retirement for each
year of Credited Service. However, notwithstanding anything in the Plan to the
contrary, a Participant will not receive any benefits under the Plan if the
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 of the following:
(1) willful misconduct,
(2) self inflicted injury,
(3) attempt to injure another person,
(4) intoxication, or
(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. Earlv Retirement Date: The Early Retirement Date of a Participant shall be the
first day of the month coincident with or next following the date he retires from
the employ of the County under the provision of this Section.
B. Amount of Retirement Benefit: A Participant at retirement on his Early
Retirement Date shall at his option receive either:
(1) a deferred monthly retirement benefit commencing on his Normal
Retirement Date, provided he is then alive, equal to an amount computed
in the same manner as for normal retirement in accordance with Section
3.01-B, but based on Credited Service and Earnings as of his Early
Retirement Date; or
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(2) an immediate monthly retirement commencing on his Early Retirement
Date equal to the benefit deternuned in Section 3A1-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. Pavment 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 payxnent due next
preceding his date of death, subject to Section 4.02.
3.03. Disability Retirement
A Participant may retire under the Plan if he becomes Totally and Permanently Disabled
from a cause arising out of and in the course of employment whether the Total and
Permanent Disability is caused by injury or illness; and provided that he has, prior to his
Total and Permanent Disability, continuously, actively performed the duties of his
employment for at least one year as of March 1, 1945. Notwithstanding anything in this
Section to the contrary, a Participant shall not be entitled to receive any disability
retirement benefit if the Participant's Disability is a result of any 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) the Participant's intoxication, or
(5) the Participant's commission of a crime under the laws of this state or
another state of the United States.
B. Disabilitv 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
Coxnmission approves payment of the Participant's disability benefit.
C. Disabilitv Retirement Benefit: The monthly retirement benefit payable to a
Participant on his Disability Retirement Date shall be equal to one half of the
highest Earnings that the Participant has received as a Participant within the
period of seventy-two (72) months immediately preceding his Total and
Permanent Disability; provided however, that should such Participant receive any
Workmen's Compensation while so disabled, such Workmen's Compensation so
received, excluding, medical, doctor, nursing and hospitalization, shall be
subtracted from any pension voucher paid to the Participant, and he shall receive
only the excess of any pension due him after the subtraction of the amount of
Workmen's Compensation received by him, less any other indebtedness due the
County by the Participant. Such retirement shall herein be referred to as disability
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retirement and payment of the disability retirement benefit shall be governed by
the following provisions of this Section.
D. Pavment of Disabilitv 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 payrnent shall be made on the
Participant's Disability Retirement Date and the last payrnent shall be the
payment due next preceding the earlier o£ (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 Disabilitv Retirement Benefit: If the Participant's Total and
Permanent Disability ceases prior to his Normal Retirement Date and he does not
reenter the employ of the County within 60 days after his recovery, all rights of
the Participant in and to a disability retirement benefit shall cease and he shall be
entitled solely to the benefits, if any, provided in:
(1) Section 3.02, if he had satisfied the requirements for early retirement as of
the date of inception of Total and Permanent Disability, or
(2) Section 3.05, if he had not satisfied the requirements for early retirement,
and either such benefit shall be based on his Credited Service and Earnings as of
the date of inception of Total and Permanent Disability.
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. Delaved 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 Employxnent 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. Delaved Retirement Date: The Delayed Retirement Date of a Participant shall be
the first day of the month coincident with or next following the date he actually
retires from the employ of the County after his Normal Retirement Date.
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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 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. Pavment of Retirement Benefit: The retirement benefit payable in the event of
delayed retirement shall be payable on the first day of each month. The first
payment shall, be made on the Participant's Delayed Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to
Section 4.02.
3.05. Termination of Emplovment
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,
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 of termination.
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 deternuned as of his date of ternunation, multiplied by the
applicable percentage based on completed years of Credited Service in
accordance with the following tables:
Completed Years of Applicable
Credited Service at Percentages of Monthly Effective
Termination Date Benefit Payable Benefit Rate
Less than 10 0% --0--
10 50 10.0%
11 60 13.2
12 70 16.8
13 80 20.8
14 90 25.2
15 or more 100% 30.0 +
C. 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%
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Interest computed from January 1, 1977, such amount to be payable within 60
days following the date of termination.
D. A Participant shall be 100% vested in his accumulated Contributions at all times.
3.06. Cost-of-Living Adjustment 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 (i) prior to January 1, 2010, the
average of the monthly Consumer Price Index for the 12 month period
ending December 31 each year as determined by the Bureau of Labor
Statistics of the United States Department of Labor for all items and major
groups, United States city average; and (ii) on and after January 1, 2010,
the average of the monthly Consumer Price Index for All Urban
Consumers (CPI-U) for the South Region for the 12 month period ending
December 31 each year as determined by the Bureau of Labor Statistics of
the United States Department of Labor.
(2) "Participant Base Index" means
(i) For any Participant, who dies or retires under the provisions of this
Plan on or after October 1, 1975, the average of the applicable
Consumer Price Index for the twelve-month period ending prior to
the date of death or retirement;
(ii) For any Participant who dies or retired under this Plan prior to
October 1, 1975, the average of the Consumer Price Index for the
calendar year ending December 31, 1975.
In the event the base year used in computing the applicable 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 lst 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.
11
U2377584.6
B. Annual Adjustment
The Commission shall ascertain the Current Cost-of-Living Index as of January 1
each year and the benefits being paid under Sections 3, 4, or 5 to any Participants,
Beneficiary, ar Joint Annuitant, as previously adjusted under this Section, shall be
further adjusted as of the Annual Adjustment Date as follows:
(1) If the Current Cost-of-Living Index is more than 100% of the Adjusted
Participant Index, the benefit shall be increased by a percentage equal to
the difference between (a) the percentage representing the Current Cost-
of-Living Index divided by the Adjusted Participant Index and (b) 100°/a.
(2) If the Current Cost-of-Living Index is less than 100% of the Adjusted
Participant Index, the benefit shall remain unchanged.
(3) Notwithstanding the foregoing provisions of this Section, no increase in
the amount of the monthly retirement benefit due to changes in the Current
Cost-of-Living Index, effective at any Annual Adjustment Date, shall be
in excess of 5% of the amount of the monthly retirement benefit payable
immediately prior to such date.
C. Notwithstanding the foregoing Subsections (A) and (B), the following annual
adjustments shall apply for the 2009 and 2010 calendar years:
(1) A retired Participant receiving monthly retirement benefits as of
January 1, 2009 under this Section 3 shall have the monthly retirement
benefits adjusted for the 2009 calendar year by (a) 3% if the Participant's
annual benefit is less than twenty thousand dollars ($20,000); (b) 2% if the
Participant's annual benefit is twenty thousand dollars ($20,000) or more,
but less than twenty-five thousand dollars ($25,000); or (c) 1% if the
Participant's annual benefit is twenty-five thousand dollars ($25,000) or
mare, but less than thirty thousand dollars ($30,000). No adjustment shall
be made in 2009 if the Participant's annual benefit is great than thirty
thousand dollars ($30,000). The monthly retirement benefits shall be
adjusted under this subsection on April l, 2009.
(2) A retired Participant receiving monthly retirement benefits as of
January 1, 2010 under this Section 3 shall have the monthly retirement
benefits adjusted by 2.9% for the 2010 calendar year. The monthly
retirement benefits shall be adjusted under this subsection on March 1,
2010.
3.07. Required Distribution Rules
This Section shall be effective beginning as of the first day of the 1989 calendar year.
The Plan shall pay all benefits in accordance with a good faith interpretation of the
requirements of Code Section 401(a)(9), and the regulations in effect under that section,
12
U2377584.6
as applicable to a governmental plan within the meaning of Code Section 414(d), subject
to the following provisions:
(a) Payment to the Participant: Any other provision of the Plan notwithstanding, the
Plan will cash-out each Participant's Accrued Benefit, or will begin annuity
payments, no later than the April 1 following the calendar year in which he
retires, or the later calendar year in which he reaches age 70-1/2.
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 or her spouse
or other Beneficiary, using age(s) attained as of the end of the calendar year in
which the Participant retires (or reaches age 70-1/2 if later), and the Accrued
Benefit as of that date. However, if the Beneficiary of a joint and survivor
annuity form of payment is not the spouse and is more than 10 years younger than
the Participant, payments to the Beneficiary will not exceed the applicable
percentage of the Participant's benefit payments required by the incidental benefit
rule. The Commission will not recalculate the life expectancy(ies).
(b) Participant's Death After Benefits Be�in: 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 BeQin: If the Participant dies before his
payments have begun, the Commission will pay his entire Accrued Benefit no
later than December 31 of the calendar year which contains the fifth anniversary
of his death. However, this five-year rule will not apply if the primary beneficiary
is an individual described below and circumstances permit the Commission to use
the exception described below.
(1) Survivin�pouse as Primarv Beneficiarv: If the Participant's surviving
spouse is the Beneficiary, the Commission will begin payments not later
than the end of the calendar year during which the Participant would have
reached age 70-1/2, and will continue payments over a period not
extending beyond the spouse's life expectancy, using age attained as of
that date and not recalculated.
(2) Non-Spouse Primarv Beneficiarv: If the Beneficiary is an individual other
than the spouse, the Commission will begin payments not later than the
last day of the calendar year following the year in which the Participant's
death occurs, and will continue payments over a period not extending
beyond the Beneficiary's life, or life expectancy deternuned 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
13
U2377584.6
Beneficiary.
(d) Compliance with Code Section 401(a)(9): The intent of this Section is that the
beginning dates and payment periods of benefits payable to each Participant and
beneficiary will be within the limitations permitted under Code Section 401(a)(9).
If there is any discrepancy between this Section and Code Section 401(a)(9),
Code Section 401(a)(9) will prevail. Notwithstanding the other provisions of this
Section 3.07 or the provisions of the Treasury Regulations, benefit options may
continue so long as the option satisfies Code Section 401(a)(9) based on a
reasonable and good faith interpretation of that section. The amount of an annuity
paid to a Participant's Beneficiary may not exceed the maximum determined
under the incidental death benefit requirement of Code Section 401(a)(9)(G), and
the minimum distribution incidental benefit rule under Treasury Regulation
Section 1.401(a)(9)-6, Q&A-2. The death and disability benefits provided by the
Plan are limited by the incidental benefit rule set forth in Code Section
401(a)(9)(G) and Treasury Regulation Section 1.401-1(b)(1)(i) or any successor
regulation thereto. As a result, the total death ar disability benefits payable may
not exceed 25% of the cost for all of the Participants' benefits received from the
Plan.
3.08. Code Section 415 Limit
In no event will Participant Contributions paid to and retirement benefits paid from the
Plan exceed the limitations contained in Code Section 415 and the regulations thereunder.
A. Participation in Other Qualified Plans: A��regation of Limits
(1) The Code Section 415(b) limit with respect to any Participant who at any
time has been a Participant in any other defined benefit plan as defined in
Code Section 414(j) maintained by the Employer shall apply as if the total
benefits payable under all such defined benefit plans in which the
Participant has participated were payable from one (1) plan.
(2) The Code Section 415(c) limit with respect to any Participant who at any
time has been a Participant in any other defined contribution plan as
defined in Code Section 414(i) maintained by the Employer shall apply as
if the total annual additions under all such defined contribution plans in
which the Participant has participated were payable from one (1) plan.
B. Basic 415(b) Limitation
(1) Before January 1, 1995, a Participant may not receive an annual benefit
that exceeds the limits specified in Code Section 415(b), subject to the
applicable adjustments in that section. On and after January 1, 1995, a
Participant may not receive an annual benefit that exceeds the dollar
amount specified in Code Section 415(b)(1)(A), subject to the applicable
adjustments in Code Section 415(b) and subject to any additional limits
that may be specified in the Plan. In no event shall a Participant's benefit
14
U2377584.6
payable under the Plan in any limitation year be greater than the limit
applicable at the annuity starting date, as increased in subsequent years
pursuant to Code Section 415(d) and the regulations thereunder.
(2) For purposes of Code Section 415(b), the "annual benefit" means a benefit
payable annually in the form of a straight life annuity (with no ancillary
benefits) without regard to the benefit attributable to after-tax Employee
contributions and to any rollover contributions (as defined in Code Section
415(b)(2)(A)). The "benefit attributable" shall be deternlined in
accordance with Treasury Regulations.
C. Adjustments to Basic 415(b) Limitation for Form of Benefit
If the benefit under the Plan is other than the form specified in Section 3.08-B(2),
then the benefit shall be adjusted so that it is the equivalent of the annual benefit,
using factors prescribed in Treasury Regulations.
(1) If the form of benefit without regard to the automatic benefit increase
feature is not a straight life annuity or a qualified joint and survivor
annuity, then the preceding sentence is applied by either reducing the
Code Section 415(b) limit applicable at the annuity starting date or
adjusting the form of benefit to an actuarially equivalent amount
[determined using the assumptions specified in Treasury Regulation
section 1.415(b)-1(c)(2)(ii)] that�takes into account the additional benefits
under the form of benefit as follows:
(2) For a benefit paid in a form to which Code Section 417(e)(3) does not
apply [a monthly benefit], the actuarially equivalent straight life annuity
benefit that is the greater of (or the reduced Limit applicable at the annuity
starting date which is the "lesser of' when adjusted in accordance with the
following assumptions):
(a) The annual amount of the straight life annuity (if any)
payable to the Participant under the Plan commencing at
the same annuity starting date as the form of benefit to the
Participant, or
(b) The annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial
present value as the form of benefit payable to the
Participant, computed using a 5% interest assumption (or
the applicable statutory interest assumption) and (i) for
years prior to January 1, 2009, the applicable mortality
tables described in Treasury Regulation Section 1.417(e)-
1(d)(2) (on and after January 1, 2002, Revenue Ruling
2001-62 or any subsequent Revenue Ruling modifying the
applicable provisions of Revenue Rulings 2001-62), and
15
U2377584.6
(ii) for years after December 31, 2008, the applicable
mortality tables described in Code Section 417(e)(3)(B)
(Notice 2008-85 or any subsequent Internal Revenue
Service guidance implementing Code Section
417(e)(3)(B)); or
(3) For a benefit paid in a form to which Code Section 417(e)(3) applies [a
lump sum benefit], the actuarially equivalent straight life annuity benefit
that is the greatest of (or the reduced Code Section 415(b) limit applicable
at the annuity starting date which is the "least of' when adjusted in
accordance with the following assumptions):
(a) The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial
present value as the particular form of benefit payable,
computed using the interest rate and mortality table, or
tabular factor, specified in the Plan for actuarial experience;
(b) The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial
present value as the particular fortn of benefit payable,
computed using a 5.5 percent interest assumption (or the
applicable statutory interest assumption) and (i) for years
prior to January 1, 2009, the applicable mortality table for
the distribution under Treasury Regulation section
1.417(e)-1(d)(2) (on and after January 1, 2002, the
mortality table specified in Revenue Ruling 2001-62 or any
subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and (ii) for years
after December 31, 2008, the applicable mortality tables
described in Code Section 417(e)(3)(B) (Notice 2008-85 or
any subsequent Internal Revenue Service guidance
implementing Code Section 417(e)(3)(B)); or
(c) The annual amount of the straight life annuity commencing
at the annuity starting date that has the same actuarial
present value as the particular form of benefit payable
(computed using the applicable interest rate for the
distribution under Treasury Regulation section 1.417(e)-
1(d)(3) (the 30-year Treasury rate (prior to January 1, 2007,
using the rate in effect for the month prior to retirement,
and on and after January 1, 2007, using the rate the in effect
for the first day of the plan year with a one-year
stabilization period)) and (i) for years prior to January 1,
2009, the applicable mortality rate for the distribution
under Treasury Regulation section 1.417(e)-1(d)(2) (on and
after January 1, 2002, the mortality table specified in
16
U2377584.6
Revenue Ruling 2001-62 or any subsequent Revenue
Ruling modifying the applicable provisions of Revenue
Ruling 2001-62), and (ii) for years after December 31,
2008, the applicable mortality tables described in Code
Section 417(e)(3)(B) (Notice 2008-85 or any subsequent
Internal Revenue Service guidance implementing Code
Section 417(e)(3)(B)), divided by 1.05.
D. Benefits Not Taken into Account for 415(b) Limitation
For purposes of Section 3.08-B, the following benefits shall not be taken into
account in applying these limits:
(1) Any ancillary benefit which is not directly related to retirement income
benefits;
(2) That portion of any joint and survivor annuity that constitutes a qualified
joint and survivor annuity;
(3) Any other benefit not required under Code Section 415(b)(2) and Treasury
Regulations thereunder to be taken into account for purposes of the
limitation of Code Section 415(b)(1).
E. Other Adlustments in 415(b) Limitation
(1) In the event the Participant's retirement benefits become payable before
age sixty-two (62), the limit prescribed by Section 3.08-B shall be reduced
in accordance with Treasury Regulations pursuant to the provisions of
Code Section 415(b), so that such limit (as so reduced) equals an annual
straight life benefit (when such retirement income benefit begins) which is
equivalent to a one hundred sixty thousand dollar ($160,000) (as adjusted)
annual benefit beginning at age sixty-two (62).
(2) In the event the Participant's benefit is based on at least fifteen (15) years
of service as a full-time employee of any police or fire department or on
fifteen (15) years of military service, the adjustments provided for in (1)
above shall not apply.
(3) The reductions provided for in (1) above shall not be applicable to pre-
retirement disability benefits or pre-retirement death benefits.
F. Less than Ten (10) Years of Service Adjustment for 415(b) Limitations
The maximum retirement benefits payable to any Participant who has completed
less than ten (10) years of service shall be the amount deternuned under Section
3.08-B multiplied by a fraction, the numerator of which is the number of the
Participant's years of service and the denominator of which is ten (10). The
reduction provided by this Section 3.08-F cannot reduce the m�imum benefit
17
U2377584.6
__
below 10%. The reduction provided for in this Section 3.08-F shall not be
applicable to pre-retirement disability benefits or pre-retirement death benefits.
G. Ten Thousand Dollar ( 10,0001 Limit
Notwithstanding the foregoing, the retirement benefit payable with respect to a
Participant shall be deemed not to exceed the Code Section 415 limit if the
benefits payable, with respect to such Participant under this Plan and under all
other qualified defined benefit pension plans to which the Participant's Employer
contributes, do not exceed ten thousand dollars ($10,000) for the applicable
limitation year and for any prior limitation year and the Employer has not at any
time maintained a qualified defined contribution plan in which the Participant
participated.
H. COLA
A Participant's applicable Limit will be applied taking into consideration cost of
living increases as required by Code Sections 415(b) and 415(d) and applicable
Treasury Regulations.
I. Code Section 415(c) Limitations on Contributions and Other Additions
After-tax Participant contributions or other annual additions with respect to a
Participant may not exceed the lesser of $40,000 (as adjusted pursuant to Code
Section 415(d)) or 100% of the Participant's compensation.
(1) Annual additions are defined to mean the sum (for any year) of Employer
contributions to a defined contribution plan, Participant contributions, and
forfeitures credited to a Participant's individual account. Participant
contributions are determined without regard to rollover contributions and
, to picked-up employee contributions that are paid to a defined benefit
plan.
(2) For purposes of applying Code Section 415(c) and for no other purpose,
the definition of compensation where applicable will be compensation
actually paid or made available during a limitation year, except as noted
below and as permitted by Treasury Regulation section 1.415(c)-2, or
successor regulation; provided, however, that Participant contributions
picked up under Code Section 414(h) shall not be treated as compensation.
(3) Compensation will be defined as wages within the meaning of Code
Section 3401(a) and all other payments of compensation to an Employee
by the Employer for which the Employer is required to furnish the
Employee a written statement under Code Sections 6041(d), 6051(a)(3),
and 6052 and will be determined without regard to any rules under Code
Section 3401(a) that limit the remuneration included in wages based on
the nature or location of the employment or the services performed (such
as the exception for agricultural labor in Code Section 3401(a)(2)).
18
U2377584.6
(a) However, for limitation years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be
included in compensation but for an election under Code Section
125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 45�(b). For limitation
years beginning after December 31, 2000, compensation shall also
include any elective amounts that are not includible in the gross
income of the Participant by reason of Code Section 132( fl(4).
(b) For limitation years beginning on and after January 1, 2009,
compensation for the limitation year shall also include
compensation paid by the later of 2'/2 months after a Participant's
severance from employment or the end of the limitation year that
includes the date of the Participant's severance from employment
if:
(i) the payment is regular compensation for services during the
Participant's regular working hours, or compensation for
services outside the Participant's regular working hours
(such as overtime ar shift differential), commissions,
bonuses or other similar payments, and, absent a severance
from employment, the payrnents would have been paid to
the Participant while the Participant continued in
employment with the Employer; or
(ii) the payment is for unused accrued bona fide sick, vacation
or other leave that the Participant would have been able to
use if employment had continued; or
(iii) payments pursuant to a nonqualified unfunded deferred
compensation plan, but only if the payments would have
been paid to the Participant at the same time if the
Participant had continued employment with the Employer
and only to the extent that the payment is includible in the
Participant's gross income.
Any payments not described above in this paragraph (b) are not
considered compensation if paid after severance from employment,
even if they are paid within 2'/z months following severance from
employment, except for payments to the individual who does not
currently perform services for the Employer by reason of qualified
military service (within the meaning of Code Section 414(u)(1)) to
the extent these payments do not exceed the amounts the individual
would have received if the individual had continued to perform
services for the Employer rather than entering qualified military
service.
19
U2377584.6
An employee who is in qualified military service (within the
meaning of Code Section 414(u)(1)) shall be treated as receiving
compensation from the Employer during such period of qualified
military service equal to (i) the compensation the Employee would
have received during such period if the Employee were not in
qualified military service, determined based on the rate of pay the
Employee would have received from the Employer but for the
absence during the period of qualified military service, or (ii) if the
compensation the Employee would have received during such
period was not reasonably certain, the Employee's average
compensation from the employer during the twelve (12) month
period immediately preceding the qualified military service (or, if
shorter, the period of employment immediately preceding the
qualified military service).
(c) Back pay, within the meaning of Treasury Regulation Section
1.415(c)-2(g)(8), shall be treated as compensation for the limitation
year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be
included under this definition.
(4) For limitation years beginning on or after January l, 2008, a Participant's
compensation for purposes of Section 3.08-I shall not exceed the annual
� limit under Code Section 401(a)(17).
J. Notwithstanding anything in this Section 3.08 to the contrary, benefit increases
resulting from the increase in the limitations of Code Section 415 under EGTRRA `
shall be limited to all Employees participating in the Plan who have one hour of
Credited Service on or after the first day of the first limitation year ending after
December 31, 2001.
K. For distributions commencing prior to January 1, 2002 and for Participants who
do not have one hour of Credited Service on or after this date, the County shall
apply the limitations contained in Code Section 415 as in effect at the time the
distribution commenced, disregarding Code Section 415(e) for distributions
occurring after January 1, 2000.
L. In accordance with Code Section 415(b)(10), notwithstanding anything in this
Section 3.08 to the contrary, for purposes of Employees who became Participants
before January 1, 1990, the benefit limitations contained in this Section 3.08 shall
not be less than such Participant's Accrued Benefit under the Plan (as determined
without regard to any Plan amendment made after October 14, 1987).
M. Reduction of benefits and/or contributions to all plans, where required, shall be
accomplished by first reducing the Participant's benefit under any defined benefit
plans in which the Participant participated, such reduction to be made first with
respect to the plan in which the Participant most recently accrued benefits and
20
U2377584.6
thereafter in such priority as shall be determined by the plan and the plan
administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans in which the Participant participated,
such reduction to be made first with respect to the plan in which the Participant
most recently accrued benefits and thereafter in such priority as shall be
established by the plan and the plan administrator for such other plans provided,
however, that necessary reductions may be made in a different manner and
priority pursuant to the agreement of the plan and the plan administrator of all
other plans covering such Participant.
3.09. Enhanced Earlv Retirement for 1996
Participants who have attained, or who will have attained, the age of 50 on or before
December 31, 1996, and who have completed 5 years of Credited Service as of July 1,
1996, and who are employed by Augusta-Richmond County on October 1, 1975, may
elect to receive retirements benefits under this Section. Such election must be made on a
form designated by Augusta-Richmond County between October 1, 1996 and 4:00 p.m.
on December 23, 1996. Any Participant electing to retire early pursuant to this Section
shall have until 4:00 p.m. on the seventh (7th) day following such election to revoke
same.
A. Enhanced Early Retirement Date: The Enhanced Early Retirement Date of a
Participant shall be the first day of the month next following the date he retires
from the employ of the County under the provisions of this Section.
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Enhanced Early Retirement Date shall be an amount
equal to 2% of the highest salary or wage or remuneration received as a
Participant within the period of seventy-two (72) months immediately preceding
his retirement for each year of Credited Service plus an additional ten (10) years
of service to be added to the years of Credited Service for purposes of computing
the amount of the retirement benefit, up to a maximum of one hundred percent
(100%) of average Earnings for the Participant's high three (3) years of Earnings,
any contrary provision of this Act notwithstanding. The amount of the monthly
enhanced retirement benefit shall not be reduced for any month or time period by
which the Early Retirement Date of a Participant precedes his Normal Retirement
Date, notwithstanding any other provision of the Plan.
C. Prerequisite for Electin� 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
21
U2377584.6
from seeking any elective position by the State of Georgia or Augusta-Richmond
County.
3.10. Special Unreduced Earlv Retirement
If a Participant with at least twenty (20) years of Credited Service is permanently
separated from the service involuntarily by action of the Commission or by action of the
elective official under whom he is employed, the Participant may elect to collect Plan
benefits under this Section in lieu of any other Section of this Plan; provided, however,
no Participant shall draw any benefits under this Section, and such benefits shall be
forfeited, if his involuntary separation from the services of the County is found by the
Commission to have been caused by the Participant's willful misconduct, or self-inflicted
injury, or growing out of his attempt to injure another, or due to intoxication or willful
misconduct, or due to the commission of crime under the laws of this State, or any other
State of the United States.
(1) �ecial Retirement Date. The Special Retirement Date of a Participant
shall be the first day of the month which coincides with or next follows the
date the Participant elects to retire under the provision of this Section.
(2) Amount of Special Unreduced Retirement Benefit. A Participant at
retirement under this Section shall receive a monthly retirement benefit,
commencing on his Special Retirement Date, provided he is then alive,
equal to the amount computed in the same manner as for normal
retirement in accordance with Section 3.01-B, but based on Credited
Service and Earnings as of the Special Retirement Date.
(3) Payment of Special Retirement Benefit. The monihly 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.
3.11. Rollover Distributions
Except where otherwise provided, Section 3.11 shall apply to benefits payable on or after
January 1, 1993, but only to the extent required by the plan qualification rules of Code
Section 401(a).
A. Notwithstanding any contrary provision of the Plan, a Distributee may elect, at the
time and in the manner prescribed by the County, to have any portion of an
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover.
B. The special capitalized terms used only in this Section 3.11 shall have the
meanings specified below:
22
U2377584.6
"Direct Rollover" means a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.
"Distributee" means an Employee or former Employee. In addition, the
Employee's or former Employee's surviving spouse and the Employee's or
former Employee's spouse or former spouse who is the alternate payee under a
qualified domestic relations order, as defined in Code Section 414(p), are
Distributees with regard to the interest of the spouse or former spouse. Effective
January 1, 2010, a Distributee further includes a nonspouse Beneficiary who is a
designated Beneficiary as defined by Code Section 401(a)(9)(E). However, a
nonspouse Beneficiary may only make a Direct Rollover to an individual
retirement account or individual retirement annuity established for the purpose of
receiving the distribution, and the account or annuity will be treated as an
"inherited" individual retirement account or annuity.
"Eligible Retirement Plan" means any of the following that accepts the
Distributee's Eligible Rollover Distribution: (i) an individual retirement account
described in Code Section 408(a); (ii) an individual retirement annuity described
in Code Section 408(b); (iii) an annuity plan described in Code Section 403(a);
(iv) a qualified trust described in Code Section 401(a); (v) effective January 1,
2002, an annuity contract described in Code Section 403(b); (vi) effective as of
January 1, 2002, an eligible plan under Code Section 457(b) which is maintained
by a state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this Plan; or (vii) effective January 1,
2008, a Roth IRA described in Code Section 408A.
"Eligible Rollover Distribution" means any distribution of all or any portion of the
Accrued Benefit to the credit of the Distributee, except that an Eligible Rollover
Distribution does not include: (i) any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the Distributee or the joint lives (or joint life
expectancies) of the Distributee and the Distributee's designated Beneficiary, or
for a specified period of ten years or more; (ii) any distribution to the extent such
distribution is required under Code Section 401(a)(9); (iii) the portion of any
distribution that is not includible in gross income; (iv) effective as of January 1,
2002, any amount that is distributed on account of hardship; and (v) any other
distribution which the Internal Revenue Service does not consider eligible for
rollover treatment, such as certain corrective distributions necessary to comply
with the provisions of Code Section 415 or any distribution that is reasonably
expected to total less than $200 during the year. Effective January 1, 2002, a
portion of a distribution will not fail to be an Eligible Rollover Distribution
merely because the portion consists of after-tax Employee contributions that are
not includible in gross income. However, such portion may be transferred only
(i) to an individual retirernent account or annuity described in Code Section
408(a) or (b) or to a qualifed defined contribution plan described in Code Section
401(a); (ii) on or after January 1, 2007, to a qualified defined benefit plan
23
ll2377584.6
described in Code Section 401(a) or to an annuity contract described in Code
Section 403(b), that agrees to separately account for amounts so transferred (and
earnings thereon), including separately accounting for the portion of the
distribution that is includible in gross income and the portion of the distribution
that is not so includible; or (iii) on or after January l, 2008, to a Roth IRA
described in Code Section 408A. Effective January 1, 2002, the definition of
Eligible Rollover Distribution also includes a distribution to a surviving spouse,
or to a spouse or former spouse who is an alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p).
3.12. Supplemental Retirement Benefit.
(a) Participants who were currently Employees in active service and employment as
of January 1, 1998, and Participants who have retired, other than those
Participants who retired under the Enhanced Early Retirement provided for in
Section 3.09 hereof, shall receive, in addition to their normal retirement benefit, a
payxnent 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
payxnent of one hundred and fifty dollars ($150.00) per month until their
termination of participation in the Plan.
3.13. 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 authorized,
and all subsequent increased retirement payments shall be pursuant to provisions of
Section 3.06.
3.14. Benefits Pavable to Survivin�pouses
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 ar her spouse, commencing upon
his ar 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
24
U2377584.6
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.
3.15. One-Time Enhanced Normal Retirement Incentive Program ('BNRIP") for 2009
Participants who have attained, or who will have attained, the age of 60 and who have
completed 25 years of Credited Service on or before December 31, 2009, and who are
employed by Augusta-Richmond County on October 31, 2009, may elect to receive
retirements benefits under this Section. Elected or appointed members of the Governing
Authority and former Employees are not eligible to participate in the ENRIP. Such
election must be made on a form designated by Augusta-Richmond County between
December 2, 2009 and January 15, 2010. Any Participant electing to retire early pursuant
to this Section shall have unti14:00 p.m. on the seventh (7th) day following such election
to revoke same. The effective date of retirement must be no later than February l, 2010.
A. Enhanced Early Retirement Date: The Enhanced Normal Retirement Date of a .
Participant shall be the first day of the month next following the date he retires
from the employ of the County under the provisions of this Section.
B. Amount of Retirement Benefit: Subject to the applicable limits under Code
Section 415, the monthly retirement benefit payable to a Participant who retires
on his Enhanced Normal Retirement Date shall be an amount equal to an amount
computed in accordance with Section 3.01-B. Such monthly benefit shall be
computed based on Earnings as of his Enhanced Normal Retirement Date and
Credited Service as of his Enhanced Normal Retirement Date, which Credited
Service shall be increased by one year for any Participant who is otherwise
eligible to retire on his Normal Retirement Date and increased by the number of
months of any accrued sick leave, up to a maximum of six (6) months, as of his
Enhanced Normal Retirement Date. The amount of the monthly enhanced
retirement benefit shall not be reduced for any month or time period by which the
Enhanced Normal Retirement Date of a Participant precedes his Normal
Retirement Date, notwithstanding any other provision of the Plan.
C. Prerequisite for Electin� Enhanced Normal Retirement: Any Participant electing
Enhanced Normal Retirement shall be required to execute a covenant not to sue in
favor of Richmond County, Georgia and Augusta-Richmond County, Georgia and
their officials, agents, and employees for any and all claims arising out of such
employee's employment by Richmond County, Georgia and/or Augusta-
Richmond County, Georgia, and agreeing not to seek or accept any further
employment by Augusta-Richmond County, or its constitutional and elected
officials. This provision shall not be construed as prohibiting any such person
from seeking any elective position by the State of Georgia or Augusta-Richmond
County.
D. Administrator's Authoritv to Approve/Disapprove Election or Delay Retirement
under ENRIP: The Augusta-Richmond County Administrator has the authority
to approve or disapprove elections filed by Participants who are eligible under the
25
U2377584.6
ENRIP based upon the Administrator's evaluation of the criticality of affected
positions and projected savings associated with employee resignations from said
positions. The Administrator will indicate his approval or disapproval of a
Participant's election in a space provided on the Participant's election form(s). If
the Augusta-Richmond County Administrator does not indicate his approval or
disapproval of the eligible Participant's election on the Participant's election form
within seven (7) days after the Human Resources Director receives the
Participant's completed election form(s), then the Administrator will be deemed
to have approved the Participant's election. The Augusta-Richmond County
Administrator also has the authority to approve a Participant's election,
contingent upon the Participant's continued employment with Augusta-Richmond
County for a period of time to be designated by the Administrator on the election
form (not to exceed 1 year from the date of the Participant's election), if the
Administrator determines that such a delay is necessary in order to allow
sufficient time to recruit and/or fully train a replacement for the Participant. The
Administrator will indicate his contingent approval of a Participant's election and
the Participant's delayed termination date in a space provided on the Participant's
election form(s). If the Administrator does not indicate his contingent approval
and a delayed termination date for the Participant on the Participant's election
form within seven (7) days after the Human Resources Director receives the
Participant's completed election form(s), then the Administrator will be deemed
to have approved the Participant's election without a delayed termination date. If
the Administrator approves a Participant's election contingent upon the
Participant's continued employment with Augusta-Richmond County for a
designated period of time, and if the Participant's employment terminates for any
reason prior to the end of such period, then the Participant will not be eligible to
receive the ENRIP benefits provided herein, notwithstanding the Participant's
election, unless the Administrator approves the Participant's resignation as of an
earlier date.
E. Voluntarv Election: An eligible Participant's election to participate under the
ENRIP shall be completely voluntary. Eligible Participants are permitted but not
required to participate, in accordance with and subject to the requirements of this
Section 3.15.
F. This ENRIP shall be interpreted and administered in a manner to be consistent
with the ENRIP program provided by the GMEBS Temporary Addendum, other
than as specified differently herein.
26
U2377584.6
SECTION 4.
DEATH BENEFITS
4.01. Death Prior to Retirement
A. Non-Dutv 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 if
not, then to his or her next of kin upon application therefor, one hundred (100) per
centum of his or her Contributions, less any payments made to him or her by
reason or any other provision of this Plan, and less any sum that might be due by
him or her to Richmond County, which amount so due shall by paid to the
County; and when one hundred per centum of his or her Contributions, less
authorized deductions, if any, is returned, then his or her estate, or his or her
personal representative shall receive from the Fund, no other sums whatsoever.
Notwithstanding the foregoing, if a terminated Participant entitled to the deferred
monthly retirement benefit provided in Section 3.01-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 within 60 days following his date of death.
B. Dutv Connected Death
(i) This paragraph shall only apply if the Participant has not made an election
pursuant to Section 6 and the Participant's widow is not receiving benefits
under subsection (B)(ii) of this Section. The surviving spouse of any
Participant shall be entitled to a survivor pension, provided that the
Participant dies while employed by the County, and at the time of death,
shall have attained at least age fifty-five (55), with a minimum of ten (10)
years of Credited Service. The amount of the survivor pension shall equal
100% of the pension calculated under Section 3.01(B). For purposes of
calculating the retirement benefit under Section 3.01(B) to determine the
amount of the survivor pension, the Participant shall be considered to have
retired on his date of death.
Notwithstanding anything in this Section to the contrary, in the event of
the death or divorce from the Participant's designated Beneficiary, the
Participant may change the Participant's designated Beneficiary.
(ii) The widow of a Participant who is killed in line of duty, as hereinafter
defined, may elect, in lieu of receiving a refund of pension contributions
under the provisions of the Plan, to receive a pension computed at twenty-
five percent (25%) of the Participant's monthly salary or wages at the time
of his death, which shall be payable monthly to the widow, until her death
or remarriage, or in the event of her death leaving a child or children of the
Participant surviving her, who have not reached their 18th birthday, the
27
vz3��saa.6
pension shall be continued to be paid for the benefit of such child or
children as long as they remain unmarried and until they reach their 18th
birthday; and if there be no widow living at the time of the death of such
Participant killed is herein defined, but there be a child or children of
Participant living as of date who have not reached their 18th birthday, the
guardian of children may make a similar election as that provided for a
widow and, in the event such election is made, a pension in amount shall
be paid for the benefit of such child or children as long as they remain
unmarried and until they reach their 18th birthday.
As used herein, "killed in line of duty" shall mean killed while actively
performing the prescribed duties of the Participant's job and not resulting
from any misconduct or negligence of such Participant; provided,
however, that no payments shall be made under the provisions of this
section until such date as any monthly benefits provided under the
Workmen's Compensation Laws of Georgia shall have ceased.
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 3.14.
(b) Effective October l, 1975, notwithstanding Section 3.14, the surviving spouse of
any retired Participant who dies shall receive one-half of the benefits of the
deceased Participant, under the provisions of this 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(1) or Section 3.05-B but such benefit had
not commenced, his Beneficiary shall receive a lump-sum cash amount equal to
one-half of the benefits of the deceased Employee, under the provisions of this
Plan; provided that no benefits shall be payable hereunder if Plan benefits are paid
under Section 4.01.
4.03. Adjusted Benefit
The amount of monthly retirement benefit provided under this Section 4 shall be adjusted
by the cost-of-living adjustment as provided in Section 3.06 upon commencement of such
benefit.
4.04. Designation of Beneficiaries
A. Each Participant shall designate a Beneficiary to receive the benefits, if any,
which may be payable in the event of his death pursuant to the provision of
28
U2377584.6
Section 3 or 4. Such designation shall be made in writing on a form provided by
the Comxnission and shall be signed and filed with the Commission. The
Participant may change his designation from time to time by filing the proper
form with the Commission, and each change shall revoke all prior designations by
the Participant. In each such designation the Participant may name one or more
primary Beneficiaries and one or more contingent Beneficiaries. If no
Beneficiary designated by the Participant survives him, the Commission may
direct the payment of such benefits to (a) the spouse of the deceased, if living;
otherwise, to (b) the descendents of the deceased Participant per stirpes or on their
behalf as provided in Section 10.05; or if none, to (c) the legal representative of
the estate of the deceased Participant.
B. In the event of the death of a Beneficiary who survives the Participant and who, at
his or her death, is receiving benefits as described in paragraph A of this Section,
the remaining benefits, if any, shall be payable to a person designated by the
Participant to receive the remaining benefits, or, if no person was so designated,
then to a person designated by the Beneficiary of the deceased Participant;
provided, however, that if no person so designated be living upon the occurrence
of such contingency, the remaining benefits, if any, shall be payable to (a) the
spouse of the deceased Participant, if living; otherwise to (b) the descendents of
the deceased Beneficiary per stirpes or on their behalf as provided in Section
10.05; or if none, to (c) the legal representative of the estate of the deceased
Beneficiary, as the Commission in its sole discretion may determine.
C. In the event the Commission does not direct the payments as specified in
paragraph A or B of this Section, the Commission may elect to have a court of
applicable jurisdiction determine to whom payments should be made, and the
Commission shall follow such instructions as the court may give.
SECTION 5.
CONTRIBUTION S
5.01. Countv Contributions
Contributions by the County shall equal five percent (5%) of the aggregate of any
Participant's Earnings, plus such additional amounts as shall be determined by the
County, based upon the recommendations of an actuary. County contributions shall be
paid to the Fund and shall be used only for the benefit of the Participants and
Beneficiaries of the Plan; provided that on the recommendation of the County's actuary,
who shall be a member of the American Academy of Actuaries, or an organization of
which one ar 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.
29
U2377584.6
__ _ _
5.02. Particinant Contributions
A. Each Participant shall contribute to the Fund an amount equal to five (5%) per
cent of his Earnings. Contributions by the Participant shall cease at the earlier of
(a) his date of ternunation of employment for any reason, and (b) his actual
retirement date. Participant contributions shall be made by payroll deduction and
in such manner as determined by the Commission.
B. Withdrawals of Participant Contributions: In all cases where previously adopted
provisions of the 1945 act as amended call for participant contributions to be
refunded that such refunding will be with "interest" as computed in subsection A
of this Section.
C. Return of Contributions: Any Participant who voluntarily absolutely separates
from the service of the Commission or from the service of the elective officer by
whom he is employed or who is discharged as provided by the "Richmond
Officers and Employees' Act" in Ga. 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 of the Plan, shall have
returned to the Participant or his estate, within ninety (90) days of the date of
application after he is absolutely separated or his discharge becomes final, the
entire amount of his Contributions, without Interest, less any disability payments
he has received. Once the sum is returned to the Employee, he shall not have any
further claim or right to receive any fund, or payments whatsoever of any kind of
character from the Fund.
SECTION 6.
OPTIONAL FORMS OF RETIREMENT 1NCOME
6.01. Election of Optional Retirement Benefits
An Employee who became a Participant as of March l, 1945 may elect, or may revoke a
previous election and make a new election, at any time thirty (30) days or more prior to
his Normal Retirement Date, Early Retirement Date or Delayed Retirement Date,
whichever is applicable, to have his retirement benefit payable under one of the options
hereinafter set forth in lieu of the retirement benefit he is otherwise entitled to receive
under Section 3. The benefit shall be paid in accordance with the terms of such option
elected. Election of any option under this Section shall be made by the Participant in
writing and shall be subject to approval by the Commission. No optional election is
available for Disability Retirement (Section 3.03).
Notwithstanding anything in this Section to the contrary, unless the Participant files a
written notice of his election of this option with the Comptroller at least three (3) years
before he becomes eligible to retire, he shall be required to pass a physical examination to
the satisfaction of the Commission.
30
U2377584.6
6.02. Description of Options
The amount of any optional retirement benefit set forth below shall be the Actuarial
Equivalent, as deternuned by the Commission, of the amount of benefit that would
otherwise be payable to the Participant under the applicable provision of Section 3
without regard to any future cost-of-living adjustments.
Option A- Single Life Option: A monthly retirement benefit payable to the Participant
during his lifetime.
Option B- Joint and Last Survivor Option: An adjusted monthly retirement benefit
which shall be payable during the joint lifetime of the Participant and his Joint Annuitant,
with fifty percent (50%) of the benefit amount continuing after the death of either during
the lifetime of the survivor.
The amount of monthly retirement benefit payable under any option selected in
accordance with the provisions of this Section shall be adjusted by the cost-of-living
adjustment as provided in Section 3.06; provided, however, that if payments are to be
made to an estate the commuted value of such payment shall be made in lieu of
continuation of monthly payments. Such commuted value shall be equal to the amount of
the lump-sum value of the remaining monthly payrnents in the amount of the last monthly
payrnent, discounted on such actuarial tables as may be adopted by the Commission,
ignoring any future cost-of-living adjustments.
6.03. Joint Annuitant
A Participant who elects Option B with benefits payable after his death for another
person's lifetime shall, on a form provided for that purpose, designate a person to receive
the benefits which continue to be payable upon the death of the Participant. Such person
shall be the Joint Annuitant of the Participant.
6.04. Cancellation of Election
The election by a Participant of Option B shall be null and void if either the Participant or
his designated Joint Annuitant should die before benefits commence.
SECTION 7.
ADMINISTRATION OF PLAN
7.01. Administration
A. Powers 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
31
U2377584.6
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 Liabilitv of the Commission. The members of the Commission,
and each of them, shall be free from all liability, joint, and several, for their acts,
omissions and conduct, and for the acts, omissions and conduct of their duly
constituted agents, in the administration of the Plan, and the County shall
indemnify and save each of them harmless from the effects and consequences of
their acts, omissions, and conduct in their official capacity, except to the extent
that such effects and consequences shall result from their own willful misconduct.
D. Miscellaneous: The Commission shall prepare and distribute to the Employees
information concerning the Plan, at the expense of the County, in such manner as
it shall deem appropriate.
To enable the Commission to perform its functions, the County shall supply full
and timely information of all matters relating to the compensation and length of
service of all Participants, their retirement, death or other cause of termination of
employment, and such other pertinent facts as the Commission may require.
The Commission shall be entitled to rely upon all tables, valuations, certificates,
and reports furnished by an actuary, who shall be a member of the American
Academy of Actuaries, or an organization which one or more members is a
member of the American Academy of Actuaries and upon all certificates and
reports made by an accountant selected or approved by the Commission. The
Commission shall be fully protected in respect to any action taken or suffered by
it in good faith in reliance upon the advice or opinion of any actuary, accountant,
or attorney, and all action so taken or suffered shall be conclusive upon each
member of the Commission and upon all persons interested in the Plan.
SECTION 8.
TRUST FUND AND TRUSTEES
8 A 1. Trust Fund
There is created a permanent pension Fund for the benefit of each Participant covered by
this Plan, and the Fund shall be known as the "Richmond County Employees' Pension
Fund" and shall be kept in a separate account earmarked "Richmond County Employees'
Pension Fund", with a separate, permanent record thereo£ The assets of the Fund shall
be held and administered by the Commission. The Fund shall consist of all payxnents by
the County and Participants to the Fund and earnings from investments. The assets of the
32
U2377584.6
Fund shall be valued as of the end of each plan year, and at any other time required by the
Commission, and at the then existing book and market value. The Fund is hereby
declared not to be the property of the Commission or the County, and this includes any
sum paid in or directed to be paid in by the Commission and it shall reserve no property
in any sum raised or due by virtue of the Plan. The Commission may not engage in a
transaction prohibited by Code Section 503(b).
The Commission shall maintain a separate and permanent record of the Fund. All
decisions of the Commission in regard to the Fund or any payrnents or withdrawals
therefrom shall be recorded in the minutes of the Commission and also entered on the
permanent record kept by the Commission and such permanent record shall be open to
inspection by any interested person at all regular business hours.
The Commission shall keep the Treasurer and Clerk of the Commission bonded at all
times and in an amount equal to the total Fund in possession of or under the control of
either; provided, however, that such bond shall not exceed Two-Hundred Thousand
Dollars ($200,000.00) as to each party. The bond shall also cover any acting Treasurer or
Clerk.
8.02. Amendment of Trust
The County shall have the right at any time, by an instrument in writing duly executed by
the Commission and to the Trustee, to modify, alter, or amend this Plan and Trust in
whole or in part; provided, however, that the duties, powers, and liability of the Trustee
hereunder shall not be substantially increased without its written consent, and provided
further, that no such amendment shall have the effect of revesting in the County any part
of the principal or income of the Fund.
8.03. Discontinuance of Trust and Vestine
The County expressly reserves the right to ternunate 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.
8.04. Powers of the Commission
The Commission shall have the following power and authority in the administration of
the Fund to be exercised in accordance with and subject to the provisions of Section 8.05
hereof
(a) control the administration of the Plan hereunder, with all powers necessary to
enable it to properly carry out its duties in that respect. Not in limitation, but in
amplification of the foregoing, the Commission shall have the power to construe
33
U2377584.6
the Plan and to determine all questions that shall arise thereunder, and shall also
have all the powers elsewhere herein conferred upon it;
(b) decide all questions relating to the eligibility of Employees to participate in the
benefits of the Plan; and
(c) deternune the benefits to which any Participant or Beneficiary may be entitled
under the Plan.
The decisions of the Commission upon all matters within the scope of this authority shall
be final and binding upon all parties to this instrument, participants and their
beneficiaries.
All acts and determinations of the Commission shall be duly recorded by the County
clerk, or under his supervision and all such records, together with such other documents
as may be necessary for the administration of the Plan, shall be preserved in the custody
of such clerk.
The Commission shall prepare and distribute to the Employees information concerning
the Plan at the expense of the County, in such manner as it shall deem appropriate.
To enable the Commission to perform its functions, the County shall supply full and
timely information of all matters relating to the compensation and length of service of all
Participants, their retirement, death or other cause of terinination of employment, and
such other pertinent facts as the Commission may require.
8.05. Investment of Fund
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 of trust funds; and, in such securities other than those
specifically approved by law for the investment of trust funds, as the pension fund
investment committee shall deem proper, from time to time; provided, however, that the
amount of the pension fund which may be invested in such securities other than those
specifically approved by law for the investment of trust funds may not exceed fifty
percent (50%) of the total amount of the fund then outstanding; and in addition thereto,
the investment committee may invest such funds in bonds and debentures assumed or
guaranteed by such existing corporation or institution existing under the laws of the
United States of America, or any state thereof, provided such bonds or debentures are
rated at the time of their purchase, by a nationally recognized securities rating service, as
AAA (Aaa), AA (Aa) or A(a) in lieu thereof, provided 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 of the pension fund which may be invested in the bonds and
34
U2377584.6
debentures of any one corporation may not exceed ten percent (10%) of the total amount
of such fund then outstanding.
Effective October 1, 1975, the Board is authorized to deposit funds held by it with any
bank 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 of the 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.
Withdrawal from the fund for investment purposes shall be accomplished by vouchers
drawn by the Treasurer, counter-signed by the mayor of the County or the mayor's
designee.
8.06. Taxation
The Commission, in its settler 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°/a) or more contributed by the Commission, 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.
8.07. Resiga�ation 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.
8.08. Successor Trustees
In the event of vacancy of one or more individuals in the Trusteeship of this Trust
occurring at any time, the Commission shall designate and appoint qualified successor
Trustee(s) until such individuals are elected by the electorate.
35
U2377584.6
8.09. Disbursements
Upon written direction (which may be a continuing one) from the Commission as to the
name of any person to whom money is to be paid from the Fund and the amount thereof,
checks shall be drawn by the Trustee in the name of the person designated by the
Commission and deliver such checks in such manner and amounts and at such time as the
Commission shall direct. In the event the Trustee shall deem it necessary to withhold any
distribution pending compliance with legal requirements with respect to probate of wills,
appointment of personal representatives, payment of or provision for estate or inheritance
taxes, or for death duties or otherwise, the Trustee shall withhold payrnent pending
receipt of the instructions from the County Attorney to make such distribution.
SECTION 9.
AMENDMENT AND TERMINATION
This Section 9 shall apply only to the extent that it does not otherwise conflict with applicable
Georgia law, including, but not limited to, Article I, Section I, Paragraph X of the Georgia
Constitution.
9.01. Amendment of the Plan
The 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 ar permit any part of the Fund to be diverted to purposes other
than for the exclusive benefit of Participants and their Payees; and further provided, that
no amendment shall have the effect of revesting in the County any portion of such Fund
except such amounts which remain in the Fund after termination of the Plan and after all
liabilities under the Plan have been satisfied.
9.02. Termination of the Plan
The County expects this Plan to be continued indefinitely but, of necessity, reserves the
right to terininate the Plan and its contributions thereunder at any time by action of the
Commission; provided, however, that should the County terminate the Plan or completely
discontinue contributions hereunder so as the amount to a Plan termination, the accrued
benefit of each Participant, to the extent then funded, shall become fully vested and
nonforfeitable as the date of termination.
In the event of termination of the Plan and upon receipt of written notice of such
termination, the Commission shall arrange for the Fund to be apportioned and distributed
in accordance with the following procedure:
A. The Commission shall determine the date of distribution and asset value of the
Fund to be distributed, taking into account the expenses of distribution.
B. The Commission shall determine the method of distribution of the asset value --
that is, whether distribution to each Participant or Payee entitled to benefits shall
be by payment in a lump-sum cash amount, the purchase of an annuity from an
insurance company, or otherwise.
36
I/2377584.6
C. The Commission shall apportion the asset value in the priority and manner set
forth below, on the basis that the amount required to provide any given retirement
benefit shall mean the actuarially computed single-sum value of such benefit,
except that if the method of distribution determined under paragraph B of this
Section involves the purchase of an insured annuity, the amount required to
provide the given retirement benefit shall mean the single premium payable for
such annuity:
(1) An amount equal to each Participant's Contributions under the Plan with
interest, less the aggregate amount of any benefit payments previously
made with respect to such Participant, will be determined and such amount
apportioned from the asset value. Such asset value, if insufficient to
provide such amounts in full will be apportioned among such Participants
in proportion to the amounts determined with respect to them.
(2) If there be any asset value remaining after the apportionment under (1)
above, apportionment shall next be made with respect to each retired
Participant receiving a retirement benefit hereunder an such date, each
person receiving a retirement benefit on such date on account of a retired
(but since deceased) Participant, each Participant who has, by such date,
reached his Normal Retirement Date but has not yet retired, in the amount
required to provide such retirement benefit as of the date of termination of
the Plan, less any apportionment made in (1) above, provided that, if such
remaining asset value be less than the aggregate of such amounts, such
latter amounts shall be proportionately reduced so that the aggregate of
such reduced amounts will be equal to such asset value.
(3) If there be any asset value remaining after the apportionments under (1)
and (2) above, apportionment shall next be made with respect to each
active Participant on such date who has reached his Early Retirement Date
but has not yet retired, in the amount required to provide such retirement
benefit as of the termination date of the Plan, less any apportionment in (1)
above, provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder, such latter amounts shall
be proportionately reduced so that the aggregate of such reduced values
will be equal to such remaining asset value.
(4) If there be any asset value remaining after the apportionments under (1),
(2), and (3) above, apportionment shall next be made with respect to each
active Participant on such date who has completed at lease 10 years of
Credited Service and each former Participant then entitled to a deferred
benefit under Section 3.05-B hereof who has not, by such date, reached his
Normal Retirement Date, none of whom is entitled to an apportionment
under (2) above, in the amount required to provide the actuarially
determined value of the accrued benefit as of the termination date of the
Plan, less any apportionment in (1) above; provided that, if such remaining
asset value be less than the aggregate of the amounts apportioned
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U2377584.6
hereunder, such latter amounts shall be proportionately reduced so that the
aggregate of such reduced values will be equal to such remaining asset
value.
(5) If there be any asset value remaining after apportionments under (1), (2),
(3), and (4) above, apportionment shall lastly be made with respect to each
active Participant on such date who is not entitled to an apportionment
under (2), (3), or (4) above, in the amount required to provide the
actuarially deternuned value of the accrued benefit as of the date of
ternunation of the Plan, less any apportionment in (1) above; provided
that, if such remaining asset value be less than the aggregate of the
amounts apportioned hereunder, such latter amounts shall be
proportionately reduced so that the aggregate of such reduced values will
be equal to such remaining asset value.
(6) In the event that any asset value remains after the full apportionments
specified in paragraphs (1), (2), (3), (4), and (5) above, such excess shall
revert to the County.
D. The Commission shall cause to be distributed, in accordance with the manner of
distribution deternuned under paragraph B of this Section, the amounts
apportioned under paragraph C of this Section.
SECTION 10.
MISCELLANEOUS
10.01. Headings
The headings and subheadings in this Plan have been inserted for convenience of
reference only and are to be ignored in any construction of the provisions hereof.
10.02. Construction
In the construction of this Plan the masculine shall include the feminine and the singular
the plural in all cases where such meanings would be appropriate.
Each Section of this Plan and every part of each Section are declared to be independent
Sections and the holding of any Section or part of any section to be void shall not affect
the other Sections or parts of such Sections, and it is declared that the other Sections not
so held to be void, or parts of Sections not held to be void would have been enacted
regardless of any Section or part of any Section being held void.
The Plan constitutes a contract, from the effective date of this Act, between the
Commission and the County and each Employee who is or who may hereafter become
entitled to benefits under the Plan, which includes Participants now existing or that
hereafter exist.
This Plan shall be construed in accordance with the laws of the State of Georgia.
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U2377584.6
10.03. Nonalienation
No benefits payable under the Plan will be subject to the claim or legal process of any
creditor of any Participant or beneficiary, and no Participant or beneficiary will alienate,
transfer, anticipate, or assign any benefits under the Plan, except that distributions will be
made pursuant to (a) qualified domestic relations orders issued in accordance with Code
Section 414(p), (b) judgments resulting from federal talc assessments, and (c) as
otherwise required by law.
10.04. Compliance with HEART Act.
Effective with respect to deaths occurring on or after January 1, 2007, while a Participant
is performing qualified military service (as defined in chapter 43 of title 38, United States
Code), to the extent required by Code Section 401(a)(37), survivars of a Participant are
entitled to any additional benefits that the Plan would provide if the Participant had
resumed employment and then died, such as accelerated vesting or survivor benefits that
are contingent on the Participant's death while employed. In any event, a deceased
Participant's period of qualified military service must be counted for vesting purposes.
10.05. Le a�llv Incom ep tent
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 payrnent so made shall be a complete
discharge of any liability under this Plan for such payment.
10.06. Benefits Supported Onlv By Fund
Any person having any claim under the Plan will look solely to the assets of the Fund for
satisfaction. In no event will the County, or any of its officers, members of the
Commission, or agents, be liable in their individual capacities to any person whomsoever,
under the provisions of the Plan.
10.07. Discrimination
The County, through the Commission, shall administer the plan in a uniform and
consistent manner with respect to all Employees and shall not permit discrimination in
favor of officers, supervisory or highly-paid employees.
10.08. Limitation of Liability; Legal Actions
It is expressly understood and agreed by each Employee who becomes a Participant
hereunder, that except for its or their willful negligence or fraud, neither the County, the
Trustee, nar the Commission shall be in any way subject to any suit or litigation, or to
39
vz3��ssa.6
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.
10.09. Claims
Any payment to a Participant, Joint Annuitant, or Beneficiary, or to their legal
representatives, in accordance with the provision of this Plan, shall to the extent thereof
be in full satisfaction of all claims hereunder against the Commission, Trustee, and the
County, any of whom may require such Participant, Beneficiary, or legal representative,
as a condition precedent to such payment, to execute a receipt and release therefore in
such form as shall be determined by the Commission.
10.10. Forfeitures
Forfeitures arising from any cause whatsoever under this Plan shall not be applied to
increase the benefits any Participant would otherwise receive under the Plan at any time
prior to the termination of the Plan or the complete discontinuance of County
contributions hereunder; forfeitures shall be applied to reduce the County's contributions
under the Plan in the then current or subsequent years.
101 L 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.
10.12. Applications
All applications for pensions shall be made to the Clerk of the Commission on forms
prescribed by the Commission and printed for use in such cases, and it shall be the duty
of the Commission to provide such forms at all times and the Clerk of the Commission
shall immediately transmit such application to the County Attorney for his approval as to
form and procedure, and upon his approval, same shall be presented to the Commission.
10.13. Report of Treasurer
At the close of each year the Treasurer shall make a written report to the Cominission of
funds on hand and liabilities of the Fund, both accrued and contingent.
10.14. ConsecLuence 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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U2377584.6
- _ _
IN WITNESS WHEREOF, the County has caused this amended Plan to be duly executed
o2D �'1
as of the �� day of ���.� , 29�, but effective as of January 1, 2010.
AUGUSTA-RICHMOND COUNTY
COMMISSION, AS SUCCESSOR TO THE
RICHMOND COUNTY BOARD OF
COMMISSIONERS, AS EMPLOYER
ATTEST: �
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� ` ` � �'�'`�� � �_ ; � � AUGUSTA-RICHMOND COUNTY
$ � T� �� r COMMISSION AS SUCCESSOR TO THE
� �:. < E � g � � �
��� ,.��� <g°" b�;� RICHMOND COUNTY BOARD OF
�� �, �� �' COMMISSIONERS AS TRUSTEE
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Mayor
This Ordinance shall be effective as of January 1, 2010. All ordinances and parts of Ordinances
in conflict with the provisions of this Ordinance are hereby repealed.
APPROVED AND ENACTED by the Augusta-Richmond County Commission, on the
�� day of ` �'�1 ���1�, 2��9. �� �'�
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41
U2377584.6