HomeMy WebLinkAboutORD 7238 AMENDING ORD 7227 1949 CITY OF AUGUSTA GENERAL RETIREMENT FUND ORDINANCE NO. 723
CITY OF AUGUSTA
1949 GENERAL RETIREMENT FUND
�
As Amended and Restated Effective January 1, 2010
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TABLE OF CONTENTS
Pa�e
SECTION 1 DEFINITIONS ................................................................................................... 2
1.01 Accrued Benefit ...........................................................................:.......................... 2
1.02 Actuarial Equivalent ............................................................................................... 2
1.03 Average Earnings .................................................................................................... 2
1.04 Beneficiary .............................................................................................................. Z
1.05 City ..........................................................................................................................2
1.06 Code ........................................................................................................................ 3
1.07 Commission ............................................................................................................ 3
1.08 Committee ............................................................................................................... 3
1.09 Comptroller ..........................................:.................................................................. 3
1.10 Contributions ...........................................................................................................3
1.1 l Credited Service ...................................................................................................... 3
1.12 Deputy Comptroller ................................................................................................ 3
1.13 Earnings .................................................................................................................. 3
1.14 Effective Date ......................................................................................................... 4
1.15 Employee ................................................................................................................ 4
1.16 Employer or County ................................................................................................ 4
1.17 Fund ........................................................................................................................ 4
1.18 Interest ..................................................................................................................... 4
1.19 Joint Annuitant ............................................................................:........................... 4
1.20 Mayor ...................................................................................................................... 4
1.21 Participant ............................................................................................................... 4
1.22 Payee ....................................................................................................................... 4
1.23 Pension Fund Investment Committee ..................................................................... 5
1.24 Plan ..........................................................................................................................5
1.25 Plan Year ................................................................................................................. 5
1.26 Secreta 5
ry ..................................................................................................................
1.27 Total and Perxnanent Disability ............................................................................... 5
1.28 Trust Agreement or Trust ........................................................................................ 5
1.29 Trustee .....................................................................................................................5
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TABLE OF CONTENTS
(continued)
Pa�e
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 .............................................................................................. 7
3.04 Delayed Retirement ................................................................................................. 8
3.05 Termination of Employment ................................................................................... 9
3.06 Cost-of-Living Adjustment of Benefits ................................................................ 10
3.07 Required Distribution Rules .................................................................................. 11
3.08 Code Section 415 Limit ........................................................................................ 13
3.09 Enhanced Early Retirement for 1996 . ................................................................... 19
3.10 Special Unreduced Early Retirement . ................................................................... 20
3.11 Rollover Distributions . .......................................................................................... 20
3.12 Supplemental Retirement Benefit . ........................................................................ 22
3.13 One-Time Enhanced Normal Retirement Incentive Program ("ENRIP") for 2009.
............................................................................................................................... 22
SECTION 4 DEATH BENEFITS ......................................................................................... 24
4.01 Death Prior to Retirement ..................................................................................... 24
4.02 Death After Retirement ......................................................................................... 25
4.03 Adjusted Benefit ................................................................................................... 25
4.04 Designation of Beneficiaries ................................................................................. 26
SECTION 5 CONTRIBUTIONS .......................................................................................... 26
5.01 Contributions .........................................................................................................26
5.02 Participant Contributions ...................................................................................... 26
SECTION 6 OPTIONAL FORMS OF RETIREMENT INCOME ...................................... 27
6.01 Election of Optional Retirement Benefits ............................................................. 27
6.02 Description of Options .......................................................................................... 27
6.03 Joint Annuitant or Beneficiary .............................................................................. 28
6.04 Cancellation of Election ........................................................................................ 28
SECTION 7 ADMINISTRATION OF PLAN ...................................................................... 28
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TABLE OF CONTENTS
(continued)
Pa�e
7.01 Administration ...................................................................................................... 28
SECTION 8 TRUST FLTND AND TRUSTEES ................................................................... 29
8.01 Trust Fund ............................................................................................................. 29
8.02 Amendment of Trust ............................................................................................. 30
8.03 Discontinuance of Trust and Vesting .................................................................... 30
8.04 Powers of the Commission ................................................................................... 30
8 .05 Investment of Fund ............................................................................................... 31
8.06 Taxation ................................................................................................................ 31
8.07 Resignation of Trustee .......................................................................................... 31
8.08 Successor Trustees ................................................................................................ 32
8.09 Disbursements ....................................................................................................... 32
SECTION 9 AMENDMENT AND TERMINATION .......................................................... 32
9.01 Amendment of the Plan ......................................................................................... 32
9.02 Termination of the Plan ......................................................................................... 32
SECTION 10 MISCELLANEOUS ......................................................................................... 34
10.01 Headings ................................................................................................................34
10.02 Construction .......................................................................................................... 34
10.03 Nonalienation ........................................................................................................ 34
10.04 Compliance with HEART Act . ............................................................................. 35
10.05 Legally Incompetent . ............................................................................................ 35
10.06 Benefits Supported Only By Fund ........................................................................ 35
10.07 Discrimination .......................................................................................................35
10.08 Limitation of Liability; Legal Actions .................................................................. 35
10.09 Claims ................................................................................................................... 36
10.10 Forfeitures ............................................................................................................. 36
10.11 Applications .......................................................................................................... 36
10.12 Effect of Extension of the Federal Social Security Act ........................................ 36
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1949 GENERAL RETIREMENT FUND
1NTRODUCTION
Effective March 1, 1949, the General Assembly of Augusta, Georgia established the "City Council
of Augusta 1949 Georgia Retirement Fund," hereinafter referred to as the Plan. The Plan covers
Employees hired on or before December 31, 1986, 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 City Council of Augusta 1949 General Retirement Fund 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 Tax Relief Reconciliation Act of 2001 ("EGTRRA"), effective for Plan
Years beginning on and after January l, 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 l, 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 City's intention to fully honor all benefits and rights that Plan Participants have accrued
under the Plan prior to this restatement. The Plan shall be administered and construed accordingly,
and the Plan's administrator shall construe and interpret every provision of the Plan's restatement
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 adoption of this Restatement.
The Plan will be administered by the Commission as described in Section 6. All benefits to be
provided under the Plan will be funded under a trust established in accordance with Section 7
hereof.
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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 A 1 Accrued Benefit - The retirement benefit which the Participant has earned as of the date of
determination, calculated under Subsection 3 A 1(b) on the basis of his Average Earnings
and Credit Service, which is payable as of his Normal Retirement Date in the form of a life
annuity, with a guarantee of the refund of Employee Contributions with interest for the
Participant who dies before receiving an amount of benefit payments that at least equal his
Employee Contributions with interest.
1.02 Actuarial Equivalent -
(a) A benefit of equal value computed on the basis of (i) the 1971 Group Annuity
Mortality Table, and (ii) interest at 6% compounded annually far 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% 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 Avera�e Earnin�s - The monthly average of the Participant's Earnings for the thirty six
(36) consecutive calendar months, immediately preceding the earlier to occur of (a) the
date on which the Participant's employment with the employer terminates for any reason
or (b) the Participant's actual retirement date. Average earnings shall be determined by
dividing the total earnings received by the Participant during the appropriate three (3) year
period, or lesser number of years if applicable, by the number of months for which he
received earnings in such period.
1.04 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 4.
1.05 C� - The city of Augusta, Georgia, successor by consolidation to The City Council of
Augusta and Richmond County; created by 1995 Ga. Laws p. 3648, as amended.
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1.06 Code - The Internal Revenue Code of 1986 as amended from time to time, and regulations
or rulings issued thereunder.
1.07 Commission - Augusta-Richmond County Commission, as successor to The City Council
of Augusta, Georgia, which Augusta-Richmond County Commission shall act in the dual
capacity of administrator of the Plan and Trustee of the Fund.
1.08 Committee - the pension committee consisting of the Augusta-Richmond County
Commission.
1.09 Com trp oller - The elected comptroller of Augusta, Georgia.
1.10 Contributions - The payments made by the Participants to the Fund in accordance with
Section 5.
1.11 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 of not more
than ninety days in one calendar year�,
(b) voluntary or involuntary service in the Armed Forces of the United States in the
time of war;
(c) reelection or reappointment at the end of a term; or
(d) periods of approved leaves of absence during which the Participant incurs a Total
and Permanent Disability within the meaning of Section 3.03, provided that he
recovers from a Total and Permanent Disability and is reemployed by the
Employer as required under Section 3.03(a)(7) or (b)(4).
For benefit purposes, no Participant will receive any credit for any period of inactive
employment. For vesting purposes, the Employee who has one or more breaks in
employment will receive credit only from his most recent date of reemployment.
Effective December 12, 1994, notwithstanding anything in the Plan to the contrary,
contributions, benefits, and service credit with respect to qualified military service shall be
provided in accordance with Section 414(u) of the Code.
1.12 Deputv Comptroller - The duly commissioned deputy comptroller of the City.
1.13 Earnin�s - 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 Section
402(g)(3)) and any amounts that are deferred by the Employer at the election of the
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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(�(4).
The Participant's Earnings taken into account for purposes of the Plan shall be limited to
such amount as in effect pursuant to Code Section 401(a)(17)(A) for the Plan Year, as
adjusted under Code Section 401(a)(17)(B).
1.14 Effective Date - The original effective date of the Plan is March 1, 1949. The effective
date of this Restatement is January 1, 2010, except as otherwise provided herein.
L 15 Emplo,yee - Any employee, officer, appointee or electee of the Commission as now
constituted or hereafter constituted, and any employee, officer, appointee or electee under
any official of the City as now constituted or hereafter constituted, who is elected by the
vote of the electorate, but excluding:
(a) employees of the University Hospital;
(b) the Recorder;
(c) the Assistant Recorder;
(d) employees of the Sinking Fund Commission; and
(e) other officers elected by vote of the electorate.
1.16 Emplover or Countv - Augusta-Richmond County, Georgia, successor by consolidation to
The City Council of Augusta and Richmond County, created by 1995 Ga. Laws p. 3648, as
amended.
1.17 Fund - The Fund trust fund created in accordance with the Plan and Trust.
1.18 Interest - Interest credited on Participant Contributions from the January 1 next following
the date of which such Contributions are made to the earlier of (a) the date of the
Participant's termination of employment for any reason and (b) the Participant's Normal
Retirement Date, with such interest compounded annually at the rate of 5% per annum.
1.19 Joint Annuitant - The person designated by the Participant to receive payments after the
death of the Participant as provided in accordance with Section 3.
1.20 Mavor - The mayor of Augusta, Georgia.
1.21 Particinant - An Employee who had become eligible to participate in the Plan as provided
in Section 2.
1.22 Pavee - The Beneficiary or Joint Annuitant designated by the Participant in accordance
with Section 1.04 or 1.19 above to receive benefits under the Plan after his death.
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1.23 Pension Fund Investment Committee - The pension fund investment committee consisting
of the members of the Augusta-Richmond County Commission, which committee shall
invest the Fund in accordance with Section 7.05.
1.24 Plan - The City of Augusta 1949 General Retirement Fund as contained herein, all
amendments thereto which may hereafter be made, and any existing acts of the General
Assembly of Georgia, or ordinances adopted under the Home Rule provisions of Georgia
law, pertaining to the City of Augusta 1949 General Retirement Fund. The Plan shall
include the Trust as hereinafter defined.
1.25 Plan Year - The twelve month period ending December 31 of each year.
1.26 Secretarv - The Mayor acting in his capacity as secretary of the Committee.
1.27 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
employment duties.
Upon a Participant's application to the Comptroller stating that he is Totally and
Permanently Disabled, the chief executive of Augusta or other official as designated by the
Augusta-Richmond County Commission shall immediately designate a physician to
examine the applicant and no such retirement shall be allowed under Section 3.03 unless
the physician so appointed files with the Mayor as the chief executive of Augusta such
physician's affidavit that he has examined the applicant and found him totally and
permanently. incapable of pursuing any gainful occupation; provided, that the applicant if
aggrieved by the decision of Augusta's physician may designate a physician on his own
part who together with Augusta's physician shall designate a third physician and the
decision of the majority of said three (3) physicians shall be the final decision regarding
- whether the Participant has incurred a Total and Permanent Disability recommended to the
Commission for its determination, which shall be final and binding.
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.
1.28 Trust A�reement 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
thereta
1.29 Trustee - The Commission in its capacity as trustee.
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SECTION 2
ELIGIBILITY AND PARTICIPATION
2.01 Eli ib� ilitv_.
Each Participant in the Plan on December 31, 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
Ordinance 5399 provides that no Employee hired after February 28, 1987 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 City 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:
(a) Age fifty-five (55) if he is a firefighter or peace officer and has at least
twenty-five (25) years of Credited Service; or
(b) Age sixty (60) if he is employed in a capacity other than as a firefighter or
peace officer and has at least twenty-five (25) years of Credited Service.
Far purposes of this Section 3.01 and Section 3.04, a"peace officer" is defined as
any Participant who is "POST" (Peace Officer Standards and Training) certified,
and a"firefighter" is defined as any Participant who is "FOST" (Firefighter Officer
Standards and Training) certified.
B. Amount of Retirement Benefit: If the Participant retires on his Normal Retirement
Date and such Normal Retirement Date is on or after January 1, 1995, the
Participant shall receive a monthly retirement benefit of an amount equal to (a)
2.15% of the Participant's Average Earnings multiplied by the number of months
of such Credited Service (up to a limit of 360 months), plus (b) 1.5% of the
Participant's Average Earnings multiplied by the number of months of such
Credited Service in excess of the 360 month limit.
C. Pavment of Retirement Benefit: The retirement benefit payable in the event of
nortnal retirement shall be payable on the first day of each month. The first
payment shall be made on the Participant's Normal Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to the
provision of Section 4.02.
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3.02 Earlv Retirement
Early retirement under the Plan is retirement from the employ of the City prior to the
Normal Retirement Date. Early retirement shall be authorized only within five (5) years of
the Participant's Normal Retirement Date; and only if by such time, the Participant has at
least twenty (20) years of Credited Service. In the event of early retirement under these
conditions, payment of the retirement benefit shall be governed by the following
provisions of this Section. Notwithstanding the foregoing, if a Participant receives special
early retirement benefits under Section 3.09 or 3.10, the Participant shall be ineligible for
benefits under Section 3.02.
A. Early Retirement Date: The Early Retirement Date of a Participant shall be the
first day of the month coincident with or immediately following the date he retires
from the employ of the City 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 Average Earnings as of his Early
Retirement Date; or
(2) an immediate monthly retirement commencing on his Early Retirement
Date equal to the benefit determined in Section 3.01-B above, reduced by
0.5 % for each complete month by which the Early Retirement Date of a
Participant precedes his Normal Retirement Date.
C. Pavxnent of Retirement Benefit: The monthly retirement benefit payable in the
event of early retirement shall be payable on the first day of each month. The first
payment shall be made on the optional date elected by the Participant under
Section 3.02-B above and the last payment shall be the payment due next preceding
his date of death, subject to the provision of Section 4.02.
3.03 Disability Retirement
A. A Participant may retire under the Plan if he becomes Totally and Permanently
Disabled and the Participant:
(1) has incurred the Total and Permanent Disability as a result of injury or
illness Incurred in the performance of his employment duties; or
(2) has incurred the Total and Permanent Disability as a result of injury or
illness from any cause; provided that the Participant has ten (10) years of
Credited Service at the time of the Total and Permanent Disability.
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B. Notwithstanding anything in this Section to the contrary, a Participant shall not be
entitled to receive any disability retirement benefit if the Participant's Disability is
a result of any of the following:
(1) the Participant's willful misconduct, or
(2) the Participant's intoxication.
C. 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
Commission approves payment of the disability benefit.
D. Disabilitv Retirement Benefit: The monthly retirement benefit payable to a
Participant on his Disability Retirement Date shall be equal to one half of the
Participant's Average Earnings; provided however, that should such Participant
receive any Workmen's Compensation while so disabled, such Warkmen'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
City by the Participant. Such retirement shall herein be referred to as disability
retirement and payment of the disability retirement benefit shall be governed by the
following provisions of this Section.
E. 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 payment shall be made on the
Participant's Disability Retirement Date and the last payment shall be the payment
due next preceding the earlier of (a) his date of death, subject to the provisions of
Section 4.02 or (b) the cessation of his Total and Permanent Disability prior to his
Norxnal Retirement Date.
F. Termination of Disability Retirement Benefit: The continuance of any Disability
may be inquired into by medical examination, as provided in Section 1.27, upon
the application of any interested party and for good cause shown. If the
Participant's Disability is discontinued because of the findings of a medical
examination or otherwise, the Commission is hereby authorized to terxninate any
retirement payments payable under this Section, to reemploy any rehabilitated
Participant, continue retirement benefits in lieu of reinstatement, or make such
other disposition of the claim for retirement benefits as may be necessary and
proper.
3.04 Delaved Retirement
A. Delayed retirement under the Plan is retirement from the employ of the City after
the Normal Retirement Date but in no event later than:
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(a) Age sixty (60) if he is a firefighter or peace officer and has at least twenty-
five (25) years of Credited Service; or
(b) Age seventy (70) if he is employed in a capacity other than as a firefighter
or peace officer and has at least twenty-five (25) years of Credited Service.
Notwithstanding anything to the contrary, the Plan's administrator shall not interpret this
Section in manner that would violate the Age Discrimination in Employment Amendments
of 1986, as amended. In the event of delayed retirement, payment of the retirement benefit
shall be governed by the following provisions of this Section.
B. Delaved Retirement Date: The Delayed Retirement Date of a Participant shall be
the first day of the month coincident with or immediately following the date he
actually retires from the employ of the City after his Normal Retirement Date in
accordance with this subsection (A) of this Section.
C. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Delayed Retirement Date shall be an amount
computed in the same manner as for normal retirement in accordance with Section
3.01-B, but based on Credited Service and Average Earnings as of his actual
retirement date; provided, however, such amount shall not be less than the monthly
benefit the Participant would have received had he retired on his Normal
Retirement Date.
D. 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
payxnent shall be made on the Participant's Delayed Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to the
provision of Section 4.02.
3.05 Termination of Emplovment
A. A Participant who terminates employment with the City before otherwise
becoming eligible for retirement benefits under this Section 3, but after having
completed at least fifteen (15) years of Credited Service and attaining the age of
forty five (45) shall have a right to the "Vested Percentage" of his pension benefit,
as defined in subsection (B) of this Section in lieu of withdrawal of his
Contributions, if any, under Section 5.02(B). Provided that the Participant is alive
at such date, such benefits will be payable at the Participant's Normal Retirement
Date and in such amount as provided in Section 3.01(B) without reduction, or at
the Participant's Early Retirement Date but subject to such reduction as provided in
Section 3.02(B)(2).
B. For purposes of this Section, "Vested Percentage" shall mean 50% of the
Participant's Accrued Benefit (as determined as of the date of the Participant's
termination of employment) plus an additional 10% of his Accrued Benefit for
each year of Credited Service in excess of 15 years up to a maximum Vested
Percentage of 100%. For purposes of this Section, Accrued Benefit shall be
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U2377594.3
determined as of the Participant's date of termination of employment, and shall
otherwise be determined in the same manner as for normal retirement benefits but
reflecting the Participant's Credited Service and Average Earnings determined as
of the date of the Participant's employment termination.
C. 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.
A. Prior to January 1, 2010, for purposes of this Section, "Index Ratio" means the
ratio attained by dividing the "Consumer Price Index" (as determined by the
Bureau of Labor Statistics of the United States Department of Labor) for the
current calendar year by the Consumer Price Index for the calendar year
immediately preceding the current calendar year. On and after January 1, 2010, for
purposes of this Section, "Index Ratio" means the ratio attained by dividing the
"Consumer Price Index for All Urban Consumers (CPI-U) for the South Region"
(as determined by the Bureau of Labor Statistics of the United States Department
of Labor) for the current calendar year by the same Consumer Price Index for the
calendar year immediately preceding the current calendar year.
(1) Index Ratio of 1.02 or More - If the Index Ratio is 1.02 or greater, the
retired Participant's monthly retirement benefit will be increased in
accordance with subsection (B) of this Section.
(2) Index Ratio of Between .96 and 1.01 - If the Index Ratio is between .96 and
1.01, the retired Participant's monthly retirement benefit will not be
adjusted pursuant to subsection (B) of this Section, and the Consumer Price
Index for All Urban Consumers (CPI-U) for the South Region for the
current year ending on December 31 st shall be replaced by the applicable
Consumer Price Index for the year ending on December 31 st when the
Participant's retirement benefits were last adjusted.
(3) Index Ratio of .95 or Less - If the Index Ratio is .95 or less, the retired
Participant's monthly retirement benefit will be decreased in accordance
with subsection (B) of this Section.
B. Prior to January 1, 2010, on the December 31st coinciding with or next following
the date of the Participant's date of actual retirement under this Section 3(the
"December 31 Following Retirement"), the Consumer Price Index for the year
ending on such December 31 Following Retirement shall be posted to the retired
Participant's retirement record. On and after January 1, 2010, on the
December 31st coinciding with or next following the date of the Participant's date
of actual retirement under this Section 3(the "December 31 Following
RetiremenY'), the Consumer Price Index for All Urban Consumers (CPI-U) for the
South Region for the year ending on such December 31 Following Retirement shall
be posted to the retired Participant's retirement record. Subject to Subsection (A)
of this Section, on each anniversary of the December 31 Following Retirement
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while the retired Participant is receiving monthly retirement benefits under this
Section 3, the monthly retirement benefits shall be adjusted on April 1 of each year,
or on and after January 1, 2010, on March 1 of each year, by multiplying the
amount of the annual retirement benefit received during the previous calendar year
by the Index Ratio.
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
more, 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 1, 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, 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 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 an 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
11
U2377594.3
Participant's benefit payments required by the incidental benefit rule. The
Commission will not recalculate the life expectancy(s).
(b) Participant's Death After Benefits 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 Be�in: 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 and circumstances permit the Commission to use the exception
described below.
(1) Survivin� Spouse as Primarv Beneficiarv: If the 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 Primary Beneficiary: 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 determined as of that date
and not recalculated. If the beneficiary dies before receiving 120 payments
under the ten years certain and life annuity described in Section 5.02, the
Commission will continue to use the primary beneficiary's life expectancy
for purposes of making payments to an individual contingent beneficiary.
(d) Com�liance 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 disabiliry 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 or disability benefits payable may not exceed 25% of the cost for all of the
Participants' benefits received from the Plan.
12
U23775943
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 l, 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 l, 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
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 determined 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
13
U2377594.3
Section 415(b) limit applicable at the annuiry 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 (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 form of benefit payable, computed using a 5.5 percent
interest assumption (or the applicable statutory interest assumption)
and (i) for years prior to January l, 2009, the applicable mortality
table for the distribution under Treasury Regulation section
14
v23��s9a.3
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
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 Adjustments 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
15
U2377594.3
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 (101 Years of Service Adiustment 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 determined 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 maximum benefit
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 ($10,000) 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 Section 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
16
U23775943
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)).
(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 457(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(�(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 or shift differential), commissions,
bonuses or other similar payments, and, absent a severance
from employment, the payments 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
17
U23775943
(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.
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, deterxnined 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 1, 2008, a Participant's
compensation for purposes of Section 3.08-I shall not exeeed 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 Section 415 of the Code 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.
18
U2377594.3
K. Far 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 City shall apply the
limitations contained in Section Code 415, as in effect at the time the distribution
commenced, disregarding Section 415(e) far 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
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 on September 3, 1996, may elect to receive
retirement benefits under this Section. Such election must be made on a form designated
by Augusta 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 unti14:00 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 immediately following the date he
retires from the employ of the City 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 2.15% of his Average Earnings for the last three years of his Credited
Service, multiplied by the total number of years of Credited Service, plus an
additional ten (10) years of Credited Service to be added to the years of Credited
Service for purposes of computing the amount of the retirement benefit, up to 30
years plus 1.5% of his Average Earnings multiplied by the number of years of
Credited Service in excess of thirty (30) years, up to a maximum of one hundred
19
U2377594.3
(100) per centum of average Earnings for the Participant's high three (3) years of -
Earnings, any contrary provision of this Plan 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 this Plan to the contrary.
C. Prerequisite for Electin� Earl,y 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, 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, Georgia, and agreeing not to seek or
accept any further employment by Augusta, 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.
3.10 Special Unreduced Early Retirement.
If a Participant with at least twenty (20) years of Credited Service is permanently separated
from the service involuntarily by action of the Commission without any fault on the
Participant's part; as determined by the Commission in its sole discretion, the Participant
may elect to collect Plan benefits under this Section in lieu of any other Section of this
Plan; provided, however, no Participant shall draw any benefits under this Section, and
such benefits shall be forfeited, if the Participant is offered another position with Augusta
with no reduction in Earnings.
(1) Special 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 A 1-B, but based on Credited Service and
Earnings as of the Special Retirement Date.
(3) Pavment of Special Retirement Benefit. The monthly retirement benefit
payable in the event of special retirement shall be payable on the first day
of each month. The first payment shall be made on the Special Retirement
Date and the last payment shall-be the payment due next preceding his date
of death, subject to the provision of Section 4.02.
3.11 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 Section
401(a) ofthe Code.
20
U23775943
A. Notwithstanding any contrary provision of the Plan, a Distributee may elect, at the
time and in the manner prescribed by the City, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by the
Distributee in a Direct Rollover.
B. The special capitalized terms used only in this Section 3.11 shall have the
meanings specified below:
"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 Section 414(p) of the Code, 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.
`Bligible 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
21
U23775943
expected to total less than $200 during the year. Effective January l, 2002, a
portion of a distribution will not fail to be an Eligible Rollover Distribution merely
because the portion consists of after-taa� Employee contributions that are not
includible in gross income. However, such portion may be transferred only (i) to
an individual retirement account or annuity described in Code Section 408(a) or
(b) or to a qualified defined contribution plan described in Code Section 401(a);
(ii) on or after January 1, 2007, to a qualified defined benefit plan 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 1, 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 Su�plemental Retirement Benefit.
(a) Beginning as of January 6, 1998, Participants who retired pursuant to Section 3
prior to January 1, 1995 shall receive, in addition to their monthly retirement
benefits, a payment of two thousand dollars ($2,000) per annum until their death or
termination of their participation; provided however, should any court of
competent jurisdiction determine that such supplemental retirement benefits are
illegal or invalid for any reason, this Section shall be repealed immediately upon
such order becoming finaL
(b) Beginning as of October 1, 2004, all existing and future Participants who retire
pursuant to Section 3 shall receive, in addition to their monthly retirement benefits,
a payment of one thousand eight hundred dollars ($1,800) per annum until their
death or termination of their participation; provided however, should any court of
competent jurisdiction determine that such supplemental retirement benefits are
illegal or invalid for any reason, this Section shall be repealed immediately upon
such order becoming final.
3.13 One-Time Enhanced Normal Retirement Incentive Program ("ENRIP") 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 1, 2010.
22
U23775943
A. Enhanced Earlv 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 City 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 Average 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 Norxnal Retirement Date,
notwithstanding any other provision of the Plan.
C. Prerequisite for Electing 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/Disa�prove Election or Delav Retirement
under ENRIP: The Augusta-Richmond County Administrator has the authority to
approve or disapprove elections filed by Participants who are eligible under the
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 ParticipanYs delayed
termination date in a space provided on the Participant's election form(s). If the
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U23775943
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. Voluntary 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 3.14.
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.
SECTION 4
DEATH BENEFITS
4.01 Death Prior to Retirement
A. Non-dutv Connected Death
If an Employee who became a Participant on or after March 18, 1985 dies before
retirement, or after retirement, or after retirement without having made the election
provided in Section 6, or in case of the death of the survivor of a Participant who
has made such election and his spouse after his retirement, his Contributions to the
fund, plus interest compounded annually at a rate equal to that average rate of
interest earned on investments of the City's pension fund for the twelve (12) month
period immediately preceding his actual date of retirement under Section 3, less
any retirement allowance paid to him or his spouse, shall be paid from the Fund on
the order of the pension cominission to the Beneficiary or Beneficiaries, if any,
named by such Participant.
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 City, 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%
24
U23775943
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) This paragraph shall only apply if the Participant has not made an election
pursuant to Section 6 and the widow is not receiving benefits under
subsection (B)(i) of this Section. 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 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, 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
unmamed 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
If a Participant dies subsequent to his retirement and had not elected an optional form of
payment in accordance with Section 6, or had elected to receive a deferred benefit under
Section 3.02-B(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.
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U2377594.3
4.04 Desi�nation of Beneficiaries
A. Each Participant shall designate a Beneficiary to receive the benefits, if any, which
may be payable in the event of his death pursuant to the provision of Section 3 or 4.
Such designation shall be made in writing on a form provided by the Commission
and shall be signed and filed with the Commission. The Participant' may change
his designation from time to time by filing the proper form with the Commission,
and each change shall revoke all prior designations by the Participant. In each such
designation the Participant may name one or more primary Beneficiaries and one
or more contingent Beneficiaries. If no Beneficiary designated by the Participant
survives him, the Commission may direct the payment of such benefits-to (a) the
spouse of the deceased, if living; otherwise, to (b) the descendents of the deceased
Participant per stirpes or on their behalf as provided in Section 10.04; or if none, to
(c) the legal representative of the estate of the deceased Participant.
B. In the event of the death of a Beneficiary who survives the Participant and-who, at
his or her death, is receiving benefits as described in A immediately above, the
remaining benefits, if any, shall be payable to a person designated by the
Participant to receive the remaining benefits, or, if no person was so designated,
then to a person designated by the Beneficiary of the deceased Participant;
provided, however, that if no person so designated be living upon the occurrence of
such contingency, the remaining benefits, if any, shall be payable to (a) the spouse
of the deceased Participant, if living; otherwise to (b) the descendents of the
deceased Beneficiary per stirpes or on their behalf as provided in Section 10.04; or
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 A or B
immediately above, the Commission may elect to have a court of applicable
jurisdiction determine to whom payxnents should be made, and shall follow such
instructions as the court may give.
SECTION 5
CONTRIBUTIONS
5.01 Contributions
The City shall contribute sufficient amounts annually to the Fund. The Comptroller shall
certify to the Commission such amounts are necessary to be appropriated each year upon
the basis of the actuarial survey and valuation. City contributions shall be paid to the Fund
and shall be used only for the benefit of the Participants and beneficiaries of the Plan.
5.02 Participant Contributions
A. Each Participant hired after June 30, 1980 shall contribute to the Fund at each pay
period an amount equal to eight percent (8%) of his Earnings. Contributions by the
Participant shall cease at the earlier of (a) his date of termination of employment
for any reason, and (b) his actual retirement date.
26
U2377594.3
B. Withdrawals of Participant Contributions: Any Employee who became a
Participant on or after March 1, 1949 who terminates employment before becoming
eligible for retirement in accordance with Section 3 may, upon receiving approval
from the Comptroller, withdraw the total of all of his Contributions, without
interest; provided that if the Participant does not make a request to withdraw his
Contributions within four (4) years of his date of employment termination, his
Contributions shall revert to the Fund and may not be withdrawn by the Participant.
SECTION 6
OPTIONAL FORMS OF RETIREMENT 1NCOME
6.01 Election of Optional Retirement Benefits
An Employee who became a Participant as of March 1, 1949 may elect, or may revoke a
previous election and make a new election, at any time 30 days or more prior to his Normal
Retirement Date, Early Retirement Date 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.
6.02 Description of Options
The amount of any optional retirement benefit set forth below shall be the Actuarial
Equivalent, as determined 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- Ten Years Certain and Life Option: An adjusted monthly retirement benefit
payable to the Participant during his lifetime and, in the event of his death within a period,
of ten years after his retirement, the same monthly amount shall be payable for the
remainder of such ten year period to his Beneficiary.
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 a
previously designated percentage (100%, 75%, or 50%) of the benefit amount continuing
after the death of either during the lifetime of the survivor.
The amount of monthly retirement benefit payable under any option selected in accordance
with the provisions of this Section shall be adjusted by the cost-of-living adjustment as
provided in Section 3.06; provided, however, that if payments are to be made to an estate
27
U23775943
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 payments in the amount of the last monthly payment, discounted on
such actuarial tables as may be adopted by the Commission, ignoring any future cost-of-
living adjustments.
6.03 Joint Annuitant or Beneficiarv
A Participant who elects Option A shall, on a form provided for that purpose, designate (in
accordance with Section 4.04) a person to receive benefits payable in the event of his
death. Such person(s) shall be the Beneficiary of the Participant.
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
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 their Beneficiaries and Joint Annuitants. The Commission may
not engage in a transaction prohibited by Code Section 503(b).
B. Records of the Commission All acts and determination of the Commission shall
be duly recorded by the Clerk, or under his supervision, and all such records,
together with such other documents as may be necessary for the administration of
the Plan shall be preserved in the custody of such Clerk.
C. Exemption from Liability of the Commission. The members of the Commission,
and each of them, shall be free from all liability, joint, and several, for their acts,
omissions and conduct, and for the acts, omissions and conduct of their duly
28
I/23775943
constituted agents, in the administration of the Plan, and the City 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 City, in such manner as it
shall deem appropriate.
To enable the Commission to perform its functions; the City shall supply full and
timely information of all matters relating to the compensation and length of service
of all Participants, their retirement, death or other cause of termination of
employment, and such other pertinent facts as the Commission may require.
The Commission shall be entitled to rely upon all tables, valuations, certificates,
and reports furnished by an actuary, who shall be a member of the American
Academy of Actuaries, or an organization which one or more members is a
member of the American Academy of Actuaries and upon all certificates and
reports made by an accountant selected or approved by the Commission. The
Commission shall be fully protected in respect to any action taken or suffered by it
in good faith in reliance upon the advice or opinion of any actuary, accountant, or
attorney, and all action so taken or suffered shall be conclusive upon each member
of the Commission and upon all persons interested in the Plan.
SECTION 8
TRUST FUND AND TRUSTEES
8.01 Trust Fund
There is created a permanent pension Fund for the benefit of each Participant covered by
this Plan, and shall be kept in a separate account specifically delineated as the Plan's funds,
with a separate, permanent record thereof to be kept by the Comptroller. The assets of the
Fund shall be held and administered by the Commission. The Fund shall consist of all
payments by the County and Participants to the Fund and earnings from investments. The
assets of the Fund shall be valued as of the end of each plan year, and at any other time
required by the Commission, and at the then existing book and market value. The Fund is
hereby declared not to be the property of the Commission or the City, and this includes any
sum paid in or directed to be paid in by the Commission and it shall reserve no property in
any sum raised or due by virtue of the Plan.
The Comptroller shall maintain a separate and permanent record of the Fund. All
decisions of the Commission in regard to the Fund or any payments or withdrawals
therefrom shall be recorded in the minutes of the Commission and also entered on the
permanent record kept by the Coxnmission and such permanent record shall be open to
inspection by any interested person at all regular business hours.
No warrant shall be drawn upon the Fund except as otherwise provided in the Plan.
29
U23775943
8.02 Amendment of Trust
The City shall have the right at any time, by an instrument in writing duly executed by the
Commission and to the Trustee, to modify, alter, or amend this Plan and Trust in whole or
in part; provided, however, that the duties, powers, and liability of the Trustee hereunder
shall not be substantially increased without its written consent, and provided further, that
no such amendment shall have the effect of revesting in the City any part of the principal
or income of the Fund.
8.03 Discontinuance of Trust and Vestin�
The City expressly reserves the right to terminate this Plan and Trust Agreement at any
time. Upon termination of the Plan by the City, or complete discontinuance of
Contributions thereunder, having the effect of termination, the rights of each Participant to
benefits accrued to the date of such termination or discontinuance, to the extent then
funded, shall be nonforfeitable. In either case the Commission shall, upon instructions
from the City, continue to administer the Fund as provided in Section 7. No part of the
Fund shall at any time revert to the City unless all benefits for Participants and their Payees
have been provided.
8.04 Powers 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 7.05
hereof:
The Commission shall 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, bur
in amplification of the foregoing, the Commission shall have the power to construe the
Plan and to determine all questions that shall arise thereunder, and shall also have all the
powers elsewhere herein conferred upon it. It shall decide all questions relating to the
eligibility of Employees to participate in the benefits of the Plan, and shall determine the
benefits to which any Participant 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 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 City, in such manner as it shall deem appropriate.
To enable the Commission to perform its functions, the City shall supply full and timely
information of all matters relating to the compensation and length of service of all
Participants, their retirement, death or other cause of terxnination of employment, and such
other pertinent facts as the Commission may require.
30
U2377594.3
8.05 Investment of Fund
The Comptroller shall be the Trustee of the Fund and shall deposit all contributions to the
Plan in a bank or banks, and, pursuant to the direction of the Pension Fund Investment
Committee, shall invest and reinvest, from time to time, any portion thereof not
immediately needed for the payment of pensions, in securities approved by law for the
investment of trust funds, as the Pension Fund Investment Committee shall deem proper,
from time to time; provided, however, that the amount of the Fund which may be invested
in such securities other than those specifically approved by law for the investment of trust
funds may not exceed sixty percent (60%) of the total amount of such fund then
outstanding; and in addition thereto, the Pension Fund Investment Committee may invest
such funds in bonds and debentures assumed or guaranteed by any solvent corporation or
institution existing under the laws of the United States of America, or any state thereof,
provided such bonds or debentures are rated at the time of their purchase, by a nationally
recognized securities rating service, as AAA (Aaa), AA (Aa), or A(a) or in lieu thereof,
provided 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 Fund which may be invested
in the bonds and debentures of any one corporation may not exceed ten percent (10%) of
the total amount of the Fund then outstanding.
Withdrawals from the Fund for investment purposes shall only be made by vouchers
signed by the Comptroller or Deputy Comptroller and countersigned by the Mayor as chief
executive officer of the City. The Comptroller shall maintain a record of the age, length of
service, and contributions of each Participant.
8.06 Taxation
The Commission, in its 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%) of Earnings or
more and the five per centum contributed by the Commission, or more, and such amounts
shall be insufficient to pay the pensions provided for in the Plan, then the Commission
shall levy a sufficient tax to meet all payments as required by the Plan, and from time to
time to continue to do so.
8.07 Resi�nation 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 City, may resign at any time. At
such time as the resignation becomes effective, the Trustee shall render to the City an
account of its administration of the Fund during the period following that covered by its
last annual account, and shall perform all acts necessary to transfer and deliver the assets of
the Fund to its successor.
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U23775943
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 electarate.
8.09 Disbursements
Upon written direction (which may be a continuing one) from the Commission as to the
name of any person to whom money is to be paid from the Fund and the amount thereof,
checks shall be drawn by the Trustee in the name of the person designated by the
Commission and deliver such checks in such manner and amounts and at such time as the
Commission shall direct. In the event the Trustee shall deem it necessary to withhold any
distribution pending compliance with legal requirements with respect to probate of wills,
appointment of personal representatives, payment of or provision for estate or inheritance
taxes, or for death duties or otherwise, the Trustee shall withhold payment pending receipt
of the instructions from the City Attorney to make such distribution.
SECTION 9
AMENDMENT AND TERMINATION
9.01 Amendment of the Plan
The City shall have the right at any time pursuant to authorization of the Commission, to
amend any or all of the provisions of the Plan; provided, however, that no such amendment
shall authorize or permit any part of the Fund to be diverted to purposes other than for the
exclusive benefit of Participants and their Payees; and further provided, that no amendment
shall have the effect of revesting in the City any portion of such Fund except such amounts
which remain in the Fund after termination of the Plan and after all liabilities under the
Plan have been satisfied.
9.02 Termination of the Plan
The City expects this Plan to be continued indefinitely but, of necessity; reserves the right
to terminate the Plan and its Contributions thereunder at any time by action of the
Commission; provided, however, that should the City terxninate 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.
32
U2377594.3
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.
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 B above 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
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.OSB 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
33
U23775943
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
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), ar(4) above, in the amount required to provide the
actuarially determined value of the accrued benefit as of the date of
termination of the Plan, less any apportionment in (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 C(1), (2), (3), (4), and (5) above, such excess shall
revert to the City.
D. The Commission shall cause to be distributed, in accordance with the manner of
distribution determined under B above, the amounts apportioned under C above.
SECTION 10
MISCELLANEOUS
10.01 Headin�s
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.
If any provisions of this Plan, or the applicability thereof to any person or circumstance, is
held invalid, the remainder, of this Plan and the applicability thereof and of such provision
to other persons or circumstances shall not be affected thereby.
This Plan shall be construed in accordance with the laws of the State of Georgia.
10.03 Nonalienation
No benefits payable under the Plan will be subject to the claim or legal process of any
creditor of any Participant or beneficiary, and no Participant or beneficiary will alienate,
transfer, anticipate, or assign any benefits under the Plan, except that distributions will be
34
U23775943
made pursuant to (a) qualified domestic relations orders issued in accordance with Code
Section 414(p), (b) judgments resulting from federal tax assessments, and (c) as otherwise
required by law.
10.04 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), survivors 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�ally Incompetent.
If any Participant or Payee is a minor, or, in the judgment of the Commission is otherwise
legally incapable of personally receiving and giving a valid receipt for any payment due
him hereunder, the Commission may, unless and until claim shall have been made by a
duly appointed guardian or committee of such person, direct that such payment or any part
thereof be made to such person's spouse, child, parent, brother, or sister or other person
deemed by the Commission to have incurred expense for or assumed responsibiliry for the
expenses of such person. Any payment so made shall be a complete discharge of any
liability under this Plan for such payment.
10.06 Benefits Supported Onl�v Fund
Any person having any claim under the Plan will look solely to the assets of the Fund for
satisfaction. In no event will the City, or any of its officers, members 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 City, through the Commission, shall administer the plan in a uniform and consistent
manner with respect to all Employees and shall not permit discrimination in favor of
officers, supervisory or highly-paid employees.
10.08 Limitation of Liabilitv; Le�al Actions
It is expressly understood and agreed by each Employee who becomes a Participant
hereunder, that except for its or their willful negligence or fraud, neither the City, the
Trustee, nor the Commission shall be in any way subject to any suit or litigation, or to any
legal liability, for any cause or reason whatsoever, in connection with this Plan or its
operation, and each such Participant hereby releases the City, Trustee, Commission, and all
its officers and agents from any and all liability or obligation.
35
U2377594.3
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 City,
any of whom may require such Participant, Beneficiary, or legal representative, as a
condition precedent to such payment, to execute a receipt and release therefore in such
form as shall be determined by the Commission.
10.10 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 City Contributions
hereunder; forfeitures shall be applied to reduce the City's Contributions under the Plan in
the then current or subsequent years.
10.11 Ap�lications
All applications for retirement or the withdrawal of Contributions shall be made in writing
on forms prescribed by the Comptroller and filed in his office.
All applications for retirement shall be acted upon by the Committee. The Secretary shall
keep a careful record of all Committee proceedings. Upon certification by the Secretary
that a majority of the Committee has determined that the applicant is entitled to retirement
of a given amount, which decision shall not be unreasonably or unlawfully made, and
subject to the procedure regarding disability applications described in Section 3.03, the
Comptroller shall include his name on the pension list and shall draw monthly vouchers for
the payment of his retirement benefits. The Augusta-Richmond County Commission may
adopt further reasonable rules and regulations for the purpose of carrying out the purposes
of this Section.
10.12 Effect of Extension of the Federal Social Securitv Act
If the Federal Social Security Act is extended to include municipal employees, the
Commission shall have power to reduce pro tanto the Contributions of Participants and the
amounts of the retirement benefits to which they may become entitled under the Plan;
provided that no reduction shall be made in the amount of the retirement benefits paid to
any such Participant already retired prior to the effective date that the Federal Social
Security Act is extended to include municipal employees.
36
U2377594.3
IN WITNESS WHEREOF, the County has caused this amended Plan to be duly executed
as of the 30 day of March 2011 x��� but effective as of January 1, 2010.
2ndr-� reading March 15,2011 AUGUSTA-RICHMOND COUNTY
COMMISSION, AS SUCCESSOR TO
ATTEST: ,- THE RICHMOND COUNTY BOARD OF
_. _
,. _ ,,_,�°� COMMISSIONERS, AS EMPLOYER
" 7� .
. �. , _ / // ,.A / y�
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� �1� � BY� . -�
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� � � a �° `� ° � � AUGUSTA-RICHMOND COUNTY
� 0 `/ �:'?,.}¢_ � .
�� � o � � i� COMMISSION, AS SUCCESSOR TO
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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 Counry Commission, on the
30 day of March ,���. 2011
C�-�`-''�`-'' l.', -
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Mayor
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37
U23775943