HomeMy WebLinkAboutORD 6655 RETIREMENT PLAN RICHMOND COUNTY EMPLOYEES (1977 PENSION PLAN) _ i s
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ORDINANCE NO. 6655 ,� � � '�� � ��� ,
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RETIREMENT PLAN ',
FOR EMPLOYEES OF RICHMOND COUNTY
As Amended and Restated Effective January 1, 1997
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CONTENTS
PAGE
SECTION DEFINITIONS ................................................................................................. 2
1.01 Accrued Benefit .................................................................................................... 2
I.02 Actuarial Equivalent ............................................................................................. 2 ,
1.03 Average Earnings ................................................................................................... 2
1.04 Beneficiary ............................................................................................................ 2 ',
1.05 Board .......:..............................................................................................................
1.06 Break in Service .................................................................................................... 2
1 .07 Code ...............................................................................:...................................... 3 '
1.08 Contributions ......................................................................................................... 3 ,
1.09 Credited Service .......................................................:............................................. 3
1.10 Earnings ................................................................................................................3
l.11 Effective Date ....................................................................................................... 4
1.12 Eligibility Service .................................................................................................. 4
1.13 Employee ............................................................................................................... 4
1.14 Employer or County ............................................................................................... 5
1.15 Fund ...................................................................................................................... 5
1.16 Interest ..................................................................................................................5
1.17 Joint Annuitant ....................................................................................................... 5
1.18 Old Plan ................................................................................................................. 5
1.19 Participant .............................................................................................................. 5
1.20 Participation Date ..........................................................:...................................... 5
1.21 Payee ..................................................................................................................... 5
1.22 Plan .......................................................................................................................5
1.23 Plan Year ................................................................................................................ 6
1.24 Trust Agreement or Trust ...................................................................................... 6
1.25 Trustee ................................................................................................................... 6
SECTION 2 ELIGIBILITY AND PARTICIPATION ......................................................... 6
2.01 Eligibility .................................................................:............................................. 6
2.02 Participation ...........................................................................................................6
2.03 Special Rules for Pre-1997 ................................................. .............7
SECTION 3 RETIREMENT DATES AND BENEFITS ..................................................... 7
3.01 Normal Retirement ................................................................................................ 7
3.02 Early Retirement .................................................................................................... 8
3.03 Disability Retirement ............................................................................................. 9
3.04 Delayed Retirement ............................................................................................. 12
3:05 Enhanced Early Retirement for 1996 ................................................................... 13
3.06 Vesting and Termination of Employment ........................................................... 14
3.07 Cost-of-Living Adjustment of Benefits ............................................................... 14
3.08 Payrnent of Small Benefits .................................................................................. 15
3.09 Required Distribution Rules ...:....................... ....................................... 15
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3.10 Code Section 415 Limit .......................................................................................17
3.11 Rollover Distributions .....................:.......................................:............................ 19
SECTION 4 DEATH BENEFITS ...................................................................................... 20
4.01 Death Prior to Retirement .................................................................................... 20
4.02 Death After Retirement ........................................................................................ 21
4.03 Adjusted Benefit .................................................................................................. 21
4.04 Designation of Beneficiaries ...........:.................................................................... 21
SECTION 5 OPTIONAL FORMS OF RETIREMENT INCOME ......................:............. 22
5.01 Election of Optional Retirement Benefits ............................................................ 22
5.02 Description of Options ..............................
........................................ ............... 22
5.03 Joint Annuitant or Beneficiary ............................................................................. 23
5.04 Cancellation of Election ............:...........................................:.............................. 23
SECTION 6 CONTRIBUTIONS ....................................................................................... 23
6.01 County Contributions ........................................................................................... 23
6.02 Participant Contributions ..................................................................:.................. 23
SECTION 7 ADMINISTRATION OF PLAN ................................................................... 24
7.01 Administration ..................................................................................................... 24
SECTION 8 TRUST FUND AND TRUSTEES ................................................................ 26
8.01 Trust Fund ............................................................................................................. 26
8.02 Amendment of Trust ............................................................................................ 26
8.03 Discontinuance of Trust and Vesting ................................:.................................. 26
8.04 Powers of Trustee ................................................................................................ 26
8.05 Investment of Fund .............................................................................................. 27
8.06 Taxation ............................................................................................................... 28
8.07 Resignation of Trustee ......................................................................................... 28
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8.08 Successor Trustees ............................................................................................... 28
8.09 Liability of Trustee .............................................................................................. 29
8.10 Disbursements ......................................................................................................29
SECTION 9 AMENDMENT AND TERMINATION ....................................................... 29
9.01 Amendment of the Plan ....................................................................................... 29 ;
9.02 Termination of the Plan ....................................................................................... 29
SECTION 10 MISCELLANEOUS ...................................................................................... 31
10.01 Headings .............................................................................................................. 31
10.02 Construction ....................................:....................................................................31
10.03 Nonalienation .......................................................................................................32
10.04 Legally Incompetent ............................................................................................ 32
10.05 Benefits Supported Only By Fund ....................................................................... 32
10.06 Discrimination .......................................................................:.... ................ 32
10.07 Limitation of Liability; Legal Actions ...............:................................................. 32
10.08 Claims ............................................................................................32
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10.09 Forfeitures ............................................................................................................33
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RETIREMENT PLAN
FOR EMPLOYEES OF RICHMOND COUNTY
INTRODUCTION
Effective Januaxy 1, 1977, the Baard of Commissioners of Richmond County (hereinafter
referred to as the "Board") established the "Retirement Plan for Employees of Richmond
County," hereinafter refened to as the "Plan." The establishment of the Plan stems from the
desire of the Board to facilitate a retirement program for certain employees of the County not
presently covered under another retirement or pension plan to which the County contributes, or
not covered under the Social Security Act. Participation in the Plan was frozen effective as of
April 30, 1998, meaning that the Plan only covers Employees hired on or before April 30, 1998
and no Employees hired after that date are eligible to participate in the Plan.
On February 20, 2002, the Augusta-Richmond County Commissian, as successor to the
Richmond County Board of Commissioners, approved this restatement of the Plan effective
January 1, 1997 primarily so as to conform the Plan with relevant provisions of the Uruguay
Round Agreements Act, the Uniformed Services Employment and Reemployment Rights Act of
1994, the Small Business Job Protection Act of 1996, the Taxpayer Relief Act of 1997, the
Internal Revenue Service Restructuring and Reform Act of 1998, and the Community Renewal
Tax Relief Act of 2000 (collectively the "GUST" Amendments), to reflect certain provisions of
the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"), with such
EGTRRA amendments being made as good faith compliance with the requirements of
EGTRRA, to be construed in accordance with EGTRRA and guidance issued thereunder.
The EGTRRA amendments set forth in Sections 3.10 and 3.11 shall cease to be effective as of
December 31, 2010 unless they are otherwise extended by law.
The Plan also provided an option for present members of the Richmond County Pension Plan
(Old Plan) to become Participants in this Plan. Provisions for such employees electing coverage
hereunder are described in Section 2.
The Plan will be administered by the Board as described in Section 7. All benefits to be
provided under the Plan will be funded under a trust established in accordance with Section 8.
It is the County's intention to fully honor aIl 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, 1997 in a manner that preserves each Plan Participant's
benefits or rights that accrued prior to February 20, 2002. Nevertheless, any Participant Whom
the Commission does not classify as an Employee on or after January l, 1997 shall have his
benefits and rights determined under the Provision of the Plan that were in effect when the
Commission last classified him as an Employee.
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SECTION 1
DEFTNITIONS
As used herein, unless otherwise defined or required by the context, the following words and
phrases shall have the meanings indicated:
1.01 Accrued Benefit - The retirement benefit which the Participant has earned
as of the date of determination, calculated under Subsection 3.01(b) on the basis of his Average
Earnings and Credited Service, which is payable as of his Normal Retirement Date in the form of
a life annuity, with a guarantee of the refund of Contributions with Interest for the Participant
who dies before receiving an amount of benefit payments that at least equal his Contributions
with Interest.
1.OZ Actuarial Equivalent - A benefit of equal value computed on the basis of
(a) the 1971 Group Annuity Mortality Table, and (b) interest at 6% compounded annually for
forms of payment other than lump sum; the interest rate used to determine the equivalent lump
sum value of monthly benefits will be in PBGC schedule of immediate and graded deferred rates
in effect on the first day of the Plan Year iz� which the benefit is calculated.
1.03 Avera�e Earnin�s - The monthly average of the Participant's earnings for
the five consecutive calendar years, immediately preceding the earlier to occur of (a) the date on
which the Participant's employment with the employer terminates for any reason or (b) the
Participant's actual retirement date. Average Earnings shall be determined by dividing the total
Earnings received by the Participant during the appropriate five year period, or lesser number of
years if applicable, by the number of months for which he received earnings in such period.
1.04 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
or 5.
1.05 Board - The Augusta-Richmond County Commission as successor to the
Board of Commissioners of Richmond County, which shall act in the dual capacity of
administrator of the Plan and Trustee of the Fund.
1.06 Break in Service - means a continuous period of at least 12 cor�secutive
months during which an individual is not employed by the County. Such period begins on the
date of an individual's termination of employment for any reason, or, if earlier, the 12 month
anniversary of the date on which the individual c.eases to accrue Credited Service.
In the case of an individual who is absent from work for maternity or paternity
reasons, the 12-consecutive month period beginning on the first anniversazy of the first date of
such absence shall not constitute a Break in Service. For purposes of this paragraph, an absence
from work for maternity or paternity reasons means an absence (1) by reason of the pregnancy of
the individual, (2) by reason of the birth of a child of the individual, (3) by reason of the
placement of a child with the individual in connection with the adoption of such child by such
individual, or (4) for purposes of caring for such child for a period beginning immediately
following such birth or placement.
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1,07 Code - The Internal Revenue Code of 1986 as amended from time to time,
and regulations, rulings, and other publications under the Code.
1.0$ Contributions - The payments made by the Participants to the Fund in
accordance with Section 6.
1.09 Credited Service - Shall mean, for Employees hired before January 1,
1993, the number of years of uninterrupted and continuous employment (completed months
expressed as a fractional year) of the Employee with the Employer from (a) the later ofthe date
he last entered the employment of the Employer and January 1, 1977, to (b) the earlier of his date
of termination of employment for any reason or his actual retirement date, excluding any period
during which the Employee fails to comply with the provision of Section 2.02 for participation
after the date he is first eligible.
For Employees hired after December 31, 1992, Credited Service will not begin until the
Participation Date and will continue until the eaxlier of his date of termination of
employrnent for any reason or his actual retirernent date. The Employee will not be
permitted to purchase Credited Service to cover his period of Eligibility Service.
Credited Service will not be interrupted by:
(a) vaeation, or approved leave of absence authorized by the Employer
in accordance with a uniform policy applied on a nondiscrixninatory basia to all Employees
similariy situated;
(b) voluntary or involuntary service in the Armed Forces of the United
States, provided the Employee retains statutory reemployment rights under applicable state or
federal law, and resumes employment after his honorable discharge from military duty within the
time required by such law;
(c) reelection or reappointment at the end of a term; or
(d) periods during which the Employee incurs a Total and Permanent
Disability within the meaning of Section 3.03, provided that he recovers from a Total and
Permanent Disability and is reemployed by the Employer as required under Section 3.03(a)(7) or
3.03(b)(4). �
For benefit purposes, no Paxticipant will receive any credit for any period of inactive _
employment. For vesting purposes, the Employee who has one or more Break in Service
will receive credit only from his most recent date of reemployment.
Effective December 12, 1994, notwithstanding anything in the Plan to the contrary,
contributions, benefits, and service credited with respect to qualified military service
shall be provided in accordance with Section 414(u) of the Code.
1.10 Earnings - The total compensation paid to the Participant by the Employer
during any Plan Year, as reported on his Form VV-2, including any pre-tax Employee
Contributions made under this Plan. Effective as of January 1, 1998, the term "Earnings" shall
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also include any elective deferral (within the meaning of Code Section 402(g)(3}) and any
amounts that are deferred by the Employer at the election of the Employee that are not included
in the Employee's gross income pursuant to Code Section 125 or 457. Effective January l,
2001, Earnings shall also include elective amounts that are not includable in the Employee's
gross income by reason of Code Section 132( fl(4).
A Participant's Earnings shall not exceed $200,000 (or, for Plan Years after 1993,
$150,000) as such amount may be adjusted from time to time for increases in the cost of
living in accordance with the Code and regulations thereunder. Notwithstanding the
preceding sentence, if the Participant has completed one hour of Credited Service on or
after January 1, 2002, the Participant's Earnings taken into account for purposes of the
Plan shall only be disregarded to the extent that they exceed $Z00,000 as adjusted under
Code Section 401(a)(17)(B).
1.11 Effective Date - For purposes of this Plan as restated, the "Effective Date"
shall be January 1, 1997. The Plan was originally established effective January 1, 1977.
1.12 Eli 'g�bility Service - The period between the first day of employment and
the first day of the month on or after the date when the Employee has completed 90 days of
employment; provided however, that this Section shall not apply to department heads appointed
as such by Richmond County.
1.13 Emplovee - Any person regularly employed by the County, any employee,
officer, appointee, or electee of the Board as now constituted or hereafter constituted, and any
employee, officer, appointee, or electee under any official of the County as now constituted or.
hereafter constituted, who is elected by vote of the electorate, including employees of the
Department of Family and Children Services who are eligible for coverage under the Richmond
County Personnel Board, but excluding:
(a) any person eovered under the provision of the Old Plan, except
those members of said plan who elect to participate in this Plan in accordance with Section 2;
(b) any person whose customary employment is for less than 30 hours
a week or an aggregate of less than six months in any calendar year;
(c) employees of the Richmond County Department of Health and
Department of Family and Children Services of Richmond County (except those employees
eligible for coverage under the County's Personnel Board) and Augusta-�ichmond County
Public Library;
(d) the County Agent, County Home Demonstration Agent, and the
employees thereof;
(e) officers of the County elected by vote of the electorate; and
(fl effective as of January 1, 1987, any "Leased Employee." "Leased
Employee" means any person (other than a regular employee of the County) who pursuant to
an agreement between the Employer and any other person ("Leasing Organization") has
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performed services for the Employer (or for the Employer and related persons determined in
accordance with Section 414(n)(6) of the Code) on a substantially full-time basis for a period of
at least one year, and such services are performed under the primary direction or control of the
Employer; provided that the control test does not apply to relationships that have been
determined by the Internal Revenue Service, before August 20, 1996, to not involve Leased
Employees, Contributions or benefits provided a Leased Employee by the Leasing
Organization which are attributable to services performed for the Employer shall be treated as
provided by the Employer. Notwithstanding the foregoing, a Leased Employee shall not be
considered an Employee of the Employer if: (i) such employee is covered by a money purchase
pension plan providing: (1) a nonintegrated employer contribution rate of at least 10 percent of
compensation, as defined in Section 415(c)(3) of the Code, but including amounts contributed
pursuant to a salary reduction agreement which are excludable from the employee's gross
income under Section 125, Section 402(a)(8), Section 402(h) or Section 403(b) of the Code, (2)
immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not
constitute more than 20 percent of the Employer's employees that are not "highly compensated"
as such term is defined in Code Section 414(q) based on the current Plan Year.
1.14 Employer or County - Augusta, Georgia, as successor through its
consolidation with the Richmond-County Board of Commissioners.
1.15 Fund - The trust fund created in accordance with the Plan and Trust.
1.16 Interest - Interest credited on Participant Contributions from the January 1
next following the date of which such Contributions are made to the earlier of (a) the date of
termination of employment for any reason and (b) the Participant's Normal Retirement Date,
with such interest compounded annually at the rate of 5% per annum.
1.17 Joint Annuitant - The person designated by the Participant to receive
payments after the death of the Participant as provided under Option A or B in accordance with
Section 5.02.
1.18 Old Plan - The Richmond County Pension Plan, established March l,
1945, for certain employees of the County, which plan is currently in existence.
1.19 Participant - An Employee who becomes eligible to participate in the Plan
as provided in Section 2.
1.20 Participation Date - The date when the Employee has completed his
Eligibility Service and begins to participate in this Plan:
1.21 Pavee - The Beneficiary or Joint Annuitant designated by the Participant
in accordance with Section 1.04 or 1.16 to receive benefits under the Plan after the Participant's
death.
1.22 Plan - The Retirement Plan for Employees of Richmond County as
contained herein and all amendments thereto which may hereafter be made. The Plan shall
include the Trust as hereinafter defined.
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1.23 Plan Year - The twelve month period ending December 31 of each year.
1.24 Trust A�,reement or Trust - The agreement of trust between the Board, in
its capacity as the governing body of the Employer and the Board, in its capacity as Trustee,
which shall govern the continuation and maintenance of the trust fund, and all amendments
thereto.
1.25 Trustee - The Board in its capacity as trustee, or any substitute or
successor trustee hereafter appointed.
SECTION 2
ELIGIBILITY AND PARTICIPATION
2.01 Eli�ibility
Each Employee, as such term is defined in Section 1.12, in the employ by the County
shall be eligible to become a Participant in the Plan as of the later of (i) January 1, 1977
or (ii) his date of employment, provided he had not attained age 60 as of his date of hire.
Any member of the Old Plan may elect to become a Participant in this Plan in accordance
with the following procedure:
(a) each member of the Old Plan shall have the option to become a Participant
in this Plan not later than April 1, 1977;
(b) the Board shall provide an explanation of the benefits payable to each such
member of the Old Plan under the combination of employee benefit plans or programs,
including the Old Plan, this Plan and Social Security, and an explanation of the
requirement that past service and benefits accrued under the O1d Plan must be waived by
the member.
{c) after the explanation referred to in (b) above, the member of the Old Plan
shall be given 30 days to accept or reject the election to become a Participant in this Plan.
If the member of the Old Plan does not elect to become a Participant under the Plan he
shall thereafter be precluded from participation herein for the duration of his employment
with the County unless, at some future date, the Board should reopen participation in the
- Plan to such members. �
2.02 Participation
(a} Each Employee hired (or rehired) on or after January l, 1993, will
automatically become a Participant on his Participation Date, except as hereinafter
provided.
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(b) Each Employee hired on or before December 31, 1992, and each member
of the Old Plan who is eligible to become a Participant under Section 2.01, will become a
Participant by meeting the following requirements:
(1) The Employee must authorize the County in writing to deduct from
his Earnings the Contributions required from him under Section 6.02(a).
(2) The Employee must file with the Board, on a properly completed
form provided by the Board, (a) all required information, (b) a statement of the
Employee's acceptance of the terms and conditions of the Plan, and (c) the
Employee's Beneficiary designation. Any such Employee who elects to reenter
the Plan after December 31, 1992 will continue to participate until he terminates
employment, dies, or retires.
A Participant's Credited Service will not include his period of employment from the date
he first became eligible until the date he becomes a Participant. Any Employee who does
not become a Participant when first eligible will forfeit all Credited Service to which he
would have been entitled under Section 1.08 and will be entitled only to Credited Service
accrued from the date he becomes a Participant.
Notwithstanding anything to the contrary, the Plan only co�ers Employees hired on or
before April 30, 1998; no one hired after that date is eligible to participate in the Plan.
2.03 Special Rules for Pre-1997
Each Participant whom the Board has not classified as an Employee on or after January 1, ,
1997, shall have his rights under the Plan determined in accordance with such terms of
the Plan in effect on the last day of such classification as an Employee.
SECTION 3
RETIREMENT DATES AND BENEFITS
3.01 Normal Retirement
Normal retirement under the Plan is retirement from the employ of the County on the
Normal Retirement Date (as defined in paragraph A of this_ Section). In the event of
normal retirement, payment of the retirement benefit shall be governed by the following
provisions 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:
(1) attains his 65th birthday; or
(2) attains age 62 and completes 25 years of Credited Service.
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_ _. _
B. Amount of Retirement Benefit
(1) Basic Benefit: The monthly retirement benefit payable to a
Participant who retires on his Normal Retirement Date shall be an amount equal
to (a) 1% of the Participant's Average Earnings multiplied by (b) his Credited
Service on and after January 1, 197T.
(2) Adiusted Benefit: The rnonthly retirement benefit payable under
paragraph B-(1) above shall be adjusted by the cost-of-living adjustment as
provided in Section 3.06 upon commencement of retirement benefit payments.
C. Payment of Retirement Benefit: The retirement benefit payable in the event of
normal retirement shall be payable on the first day of each month. The first
payment shall be made on the Participant's Normal Retirement Date and the last
payment shall be the payment due next preceding his date of death, subject to the
provision of Section 4.02; provided, however, a Participant may modify the
amount and conditions of payment by electing an optional form of payment in
accordance with Section 5 before distributions commence. Once distributions
commence under the Plan, a Participant may not modify the amount or condition
of payment under the Plan, except as required by a qualified domestic relations
order described in Section 10.03 ar as otherwise required by law.
3.02 Early Retirement
Early retirement under the Plan is retirement from the employ of the County prior to the
Normal Retirement Date. Ear1y retirement shall be authorized only in the event that the
Participant sha1l have both attained age 50 and corrzpleted at least 15 years of Credited
Service. Notwithstanding the foregoing, if a Participant receives an Enhanced Early
Retirement benefit under Section 3.05, the Participant will be ineligible for benefits under
this Section. In the event of early retirement under this Section, payment of the
retirement benefit shall be governed by the following provisions of this Section.
A. Early Retirement Date: The Early Retirernent Date of a Participant shall be the
first day of the month coincident with or next following the date he retires from
the employ of the County under the provision of this Section.
B. Amount of Retirement Benefit: A Participant at retirement an his Early
Retirement Date shall at his option receive either:
(1) a deferred monthly retirement benefit commencing on his Normal
Retirement Date, provided he is then alive, equal to an amount computed in the
same manner as for normal retirement in accordance with Section 3.01-B, but
based on Credited Service and Average Earnings as of his Early Retirement Date;
or
(2) an immediate monthly retirement commencing on his Early
Retirement Date equal to the benefit determined in Section 3.02-B(1) above,
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reduced by 5/12% for each complete month by which the Early Retirement Date
of a Participant precedes his Norrnai Retirement Date.
C. Payment of Retirement Benefit: The monthly retirement benefit payable in the
event of early retirement shall be payable on the first day of each month. The first
payment shall be made on the date elected by the Participant under Section 3.02-
B(1) or 3.02-B(2j and the last payment shall be the payment due next preceding
his date of death, subject to the provision of Section 4.02; provided however, a
Participant may modify the amount and conditions of payment by electing an
optional form of payment in accordance with Section 5.
3.03 Disability Retirement
A. Employrnent connected Disability: A Participant may retire under the Plan if he
becomes Totally and Permanently Disabled from a cause arising out of and in the
course of employment. 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.
(1) Disability Retirement Date: The Disability Retirement Date of a
Participant shall be the first day of the month which coincides with or next
follows the date the Board approves payrnent of the disability benefit.
(2) Total and Permanent Disabilitv: A Participant shall be considered
Totally and Permanently Disabled if, in the opinion of the Board and subject to
Section 3.03-A(3) below, he is wholly prevented from engaging in any substantial
gainful activity by reason of a medically determinable physical or mental
impairment which can be expected to result in death or to be of long continued
and indefinite duration. The decision of the Board on these questions shall be
final and binding.
(3) Non-Admissible Causes of Disabilitv: Notwithstanding anything
in this Section to the contrary, a Participant shall not be entitled to receive any
Disability Retirement benefit if the Total and Permanent Disability is a result of
any of the following:
(a) excessive and habitual use by the Participant of drugs or
narcotics;
(b) injury or disease sustained by the Participant while
willfully;
(c) participating in acts of violence, riots, civil insurrections, or
while committing a criminal offense;
(d) injury or disease sustained by the Participant while serving
in any armed forces or as the result of warfare;
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(e) injury or disease sustained by the Participant after his
employment has terminated;
( fl injury or disease sustained by the Participant while working
for anyone ather than the County and directly attributable to such
employment; ar
(g) intentional, self-inflicted injury.
(4) Proof of Total and Permanent Disabilitv: The Board, before
approving payment of any Disability Retirement benefit, shall require proof that
the Participant is disabled as herein and such other proof as it may decide,
including the certificate of one or more duly licensed physieians selected by the
Board, that the Participant is totally and permanently disabled on his Disability
Retirement Date within the definition of Total and Permanent Disability under
Section 3.03-A(2). Once each year after commencement of Disability Retirement
benefits, the Board may similarly require proof of the continued Total and
Permanent Disability of the Participant. The decision of the Board on all such
questions shall be final and binding.
(5) Disability Retirement Benefit
(a) Basic Benefit: The monthly retirement benefit payable to a
Participant on his Disability Retirement Date shall be an amount
equal to 50% of his Average Earnings determined as of his
Disability Retirement Date, reduced by any monthly payment
received under Workmen's Compensation, or if Workmen's
Compensation is paid in a lump-sum payment, the monthly
payments otherwise payable to the Participant under the Plan shall
be reduced by an amount which equitably adjusts, as determined
by the Board, for the amount to which the Participant is eligible
under Workmen's Compensation.
(b) Adjusted Benefit: The amount of monthly retirement
benefit provided under paragraph (5) (a) above, shall be adjusted
by the cost-of-living adjustments as provided in Section 3.06 upon
commencement of retirement income payrnents.
(6) Pavrnent of Disability Retirement Benefit: The retirement benefit
to which a Participant is entitled in the event of his Total and Permanent
Disability shall be payable on the first day of each month. The first payment shall
be made on the Participant's Disability Retirement Date and the last payment
shall be the payment due next preceding the earlier of (a) the Participant's date of.
death, subject to the provisions of Section 4.02 or (b) the cessation of his Total
and Permanent Disability prior to his Normal Retirement Date.
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(7) Termination of Disability Retirement Benefit: If the Participant's
Total and Permanent Disability ceases prior to his Normal Retirement Date and he
does not reenter the employ of the County within 60 days after his recovery, all
rights of the Participant in and to a Disability Retirement benefit shall cease and
he shall be entitled solely to the benefits, if any, provided in:
(a) Section 3.02, if he had satisfied the requirements for early
retirement as of the date of inception of Total and Permanent
Disability, or
(b) Section 3.05, if he had not satisfied the requirements for
early retirement,
and either such benefit shall be based on his Credited Service and Average
Earnings as of the date of inception of Total and Permanent Disability.
If the Participant's Total and Permanent Disability ceases prior to his Normal Retirement
Date and he is re-employed by the County within 60 days following the date such Total
and Permanent Disability ceases, his employment will be deemed to have been
continuous; provided that the period beginning with the first month for which he received
a disability payment and ending with the date of re-employment will not be considered as
Credited Service for purposes of the Plan.
B. Non-Em l�oyrnent Connected Disability: If a Participant becomes Totally and
Permanently Disabled from a cause (i) not arising out of and in the course of his
employment and (ii) other than specified in Section 3.02-A(3) after the
completion of five or more years of Credited Service, he shall be entitled to a
disability benefit in accordance with the following provisions of this Section:
(1) Disabilitv Date and Proof of Disability: The Disability Retirement
Date of a Participant shall be the date defined in Section 3.03-A(1). Proof
of disability shall be the same as that required in Section 3.03-A(4).
(2) Disability Benefit
(a) Basic Benefit: The monthly retirement benefit payable to a
Participant on his Disability Retirement Date shall be an amount
equal to 1% of his Average Earnings multiplied by his Credited
Service up to his Disability Retirement Date, reduced by any
monthly payment received under Workmen's Compensation, or if
Workmen's Compensation is paid in a lump-sum payment, the
monthly payments otherwise payable to the Participant under the
Plan shall be reduced by an amount which equitably adjusts, as
determined by the Board, for the amount to which the Participant is
eligible under Workmen's Compensation.
(b) Adjusted Benefit: The amount of monthly retirernent
income provided under paragraph (2) above, shall be adjusted by
- 11
the cost-of-living adjustment as provided in Section 3.06 upon
commencement of retirement income payments.
(3) Payrnent of Disability Benefit: The monthly retirement benefit to
which a Participant is entitled under Section 3.03-B(2) in the event o� his Total
and Permanent Disability shall be payable on the first day of each month. The
first payment shall be made as of the Participant's Disability Retirement Date, and
tfie last payrnent shall be the payrnent due next preceding the earlier of: (a) his
date of death, subject to the provisions of Section 4.02 ar(b) the cessation of his
Total and Permanent Disability prior to his Normal Retirement Date.
(4) Termination of Disabilitv Benefit: If the Participant's Total and
Permanent Disability ceases prior to his Normal Retirement Date and he does not
reenter the employ of the County within 60 days after his recovery, all rights of
the Participant in and to a Disability Retirement benefit shall cease and he shall be
entitled solely to the benefits provided in:
(a) Section 3.02, if he had satisfied the requirements for early
retirement as of the date of inception of Total and Permanent
Disability, or
(b) Section 3.05; if he had not satisfied the requirements far
early retirement,
and either such benefit shall be based on his Credited Service and
Average Earnings as of the date of inception of Total and
Permanent Disability.
If the Participant recovers from Total and Permanent Disability prior to his
Normal Retirement Date and returns to the employ of the County within 60 days
following the date of such recovery, his employment will be deemed to have been
continuous; provided that the period beginning with the first month for which he
received a disability benefit to the date of reemployment will not be considered as
Credited Service for purposes of the Plan.
3.04 Delayed Retirement
Delayed retirement under the Plan is retirement from the employ of the County after the
Normal Retirement Date. A Participant may remain in the active employ of the County
beyond his Normal Retirement Date only at the request of the Board and for s�ch periods
of additional employment as shall be mutually agreed upon; provided that the Plan's
administrator shall not interpret this sentence in a manner that would violate the Age
Discrimination in Employment Amendments of 1986, as amended. In the event of
delayed retirement, payment of the retirement benefit shall be governed by the following
provisions of this Section:
� � 12
A. Delayed Retirement Date: The Delayed Retirement Date of a Participant shall be the first
day of the month coincident with or next following the date he actually retires from the
employ of the County after his Normal Retirement Date.
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a Participant
who retires on his Delayed Retirement Date shall be an amount computed in the same
manner as for normal retirement in accordance with Section 3.01-B, but based on
Credited Service and Average Earnings as of his actual retirement date; provided,
however, such amount shall not be less than the monthly benefit the Participant would
have received had he retired on his Normal Retirement Date.
C. Pavment of Retirement Benefit: The retirement benefit payable in the event of delayed
retirement shall be payable on the first day of each month. The first payment shall be
made on the Participant's Delayed Retirement Date and the last payment shall be the
payment due next preceding his date of death, subject to the provision of Section 4.02;
provided, however, a Participant may modify the amount and conditions of payrnent by
electing an optional form of payment in accordance with Section 5.
3.05 Enhanced Early Retirement for 1996
Participants who have attained, or who will have attained, the age of 50 on or before
December 31, 1996, and who have completed 5 years of Credited Service as of July 1,
1996, and who were employed'by Augusta-Richmond County on September 3, 1996,
may elect to receive retirement benefits under this Section. Such election must be made
on a form designated by Augusta-Richmond County between October l, 1996 and 4:00
p.m. on December 23, 1996. Any Employee electing to retire early pursuant to this
Section shall have until 4:00 p.m. on the seventh (7th) day following such election to
revoke same.
A. Enhanced Earlv 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 County under the provisions of this Section.
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Enhanced Early Retirement Date shall be an amount
equal to: (a) 1% of the Participant's Average Earnings multiplied by (b) his
Credited Service on and after January 1, 1977 plus an additional ten (10) years of
service to be added to the years of Credited Service for purposes of computing the
amount of the retirement benefit, up to a maximum of one hundred percent :
(100%) of Average Earnings for the Participant's high three (3) years of Earnings,
any contrary provision of this Section notwithstanding. The amount of the
monthly Enhanced Retirement Benefit shall not be reduced for any month or time
period by which the Enhanced Early Retirement Date of a Participant precedes his
Normal Retirement Date, notwithstanding,any other provision of this the Plan.
C. Prerequisite for Electing Earlv Retirement: Any Participant electing Enhanced
Early Retirement shall be required to execute a covenant not to sue in favor of
13
Richmond County, Georgia and Augusta-Richmond County, Georgia and its
officials, agents, and employees for any and all claims arising out of such
Employee's employment by Richmond County, Georgia and/or Augusta-
Richmond County, Georgia, and agreeing not to seek or accept any further
employment by Augusta-Richmond County, or its Constitutional and elected
officials. This Section shall not be construed as prohibiting any such person from
seeking any elective position by the State of Georgia or Augusta-Richmond
County.
3.06 Vesting and Termination of Emplovment
A. Participant, other than a department head appointed as such by Richmond County,
who terminates employment with the County before completing 5 years of
Credited Service, for any reason other than death or retirement, will receive a
lump-sum cash amount equal to the total of his Contributions with interest,
payable within 60 days after his date of termination.
B. A Participant, other than a department head appointed as such by Richmond
County, who terminates employment with the County far any reason other than
death or early retirement, after the completion of at least 5 years of Credited
Service will receive a deferred retirement benefit beginning on his Normal
Retirement Date, provided he is then alive, equal to the monthly benefit computed
in the same manner as for normal retirement under Section 3.01-B(1).
C. A Participant who is appointed a department head by Richmond County and who
terminates employment with the County for any reason other than death or early
retirement will receive a deferred retirement benefit beginning on his Normal
Retirement Date, provided he is then alive, equal to the monthly benefit camputed
in the same manner as for normal retirement under Section 3.01-B(1).
D. Notwithstanding anything in the Plan to the contrary, upon approval from the
Commission, which approval shall not be unreasonably withheld a Participant or
Beneficiary who is entitled to receive benefits under the Plan shall be entitled to
receive a lump sum payment of the Participant's Contributions with Interest in
lieu of receiving benefits under the Plan; provided that such election must be
made within four years after the Participant terminates employment and before
the Participant or Beneficiary is otherwise entitled to benefits under the Plan.
3.07 Cost-of-Living Adjustment of Benefits
A. Definition of Terms Used in This Section
(1) "Current Cost-af-Living Index" means the average of the monthly
Consumer Price Index for the 12 month period ending December 31 each year as
determined by the Bureau of Labor Statistics of the United States Department of Labor
for all items and major groups, United States city average.
14
(2) "Participant Base Index" far any Participant who dies or retires
under the provisions of the Plan an or after Janua�y 1, 1977, means the average of
the Consumer Price Index for the 12 month period ending prior to the date of
' death or retirement.
In the event the base year used in computing the monthly Consumer Price Index
should be changed by the Bureau of Labar Statistics, the Board, with the advice of
the Plan actuary, shall adjust the Participant Base Index of each retired Participant
with benefit payments commencing during the first year in which such change
was made so as to effect the original intent of this Section in an equitable manner.
(3) "Adjusted Participant Index" rneans the Participant Base Index -
adjusted for all percentage adjustments made in benefits prior to the current
Annual Adjustment Date.
(4) "Annual Adjustment Date" means March 1 of each year
commencing March l, �977 as to any Participant who dies or retires on or after
January 1, 1977.
B. Annual Adjustment
The Board shall ascertain the Current Cost-of-Living Index as of January 1 each year and
the benefits being paid under Sections 3, 4, or 5 to any Participants, Beneficiary, or Joint
Annuitant, as previously adjusted under this Section; shall be further adjusted as of the
Annual Adjustment Date as follows:
(1) If the Current Cost-of-Living Index is more than I00% of the
Adjusted Participant Index, the benefit shall be increased by a percentage equal to
the difference between: (a) the percentage representing the Current
Cost-of-Living Index divided by the Adjusted Participant Index and (b) 100%.
(2) If the Current Cost-of-Living Index is less than 100% of the
Adjusted Participant Index, the benefit shall remain unchanged.
(3) Notwithstanding the foregoing provisions of this Section, no
increase in the amount of the monthly retirement benefit due to changes in the
Current Cost-of-Living Index, effective at any Annual Adjustment Date, shall be
in excess of 5% of the amount of the monthly retirement benefit payable
immediately prior to such date.
3.08 Payment of Small Benefits
If a Participant's monthly benefit payable under any provision of Section 3 is less than
$20 per month, the actuarially determined equivalent of such monthly benefit may be
paid in a single-sum cash settlement.
3.09 Required Distribution Rules
15
(a) Payment to the Participant: Any other provision of the Plan
notwithstanding, the Plan will cash-out each Participant's Accrued Benefit, or will begin
annuity payments, no later than the April 1 following the calendar year in which he
retires, or the later calendar year in which he reaches age 70-1/2.
The Plan will pay the Accrued Benefit over a period not extending beyond the
Participant's lifetime or life expectancy, or over a period not extending beyond the joint
and last survivor life expectancies of the Participant and his or her spouse or other
Beneficiary, using age(s) attained as of the end of the calendar year in which the
Participant retires (or reaches age 70-1/2 if later), and the Accrued Benefit as of that date.
However, if the heneficiary of a joint an survivor annuity form of payment is not the
Participant's spouse and is more than 10 yeaxs younger than the Participant, payments to
the Beneficiary will not exceed the applicable percentage of the Participant's benefit
payments required by the incidental benefit rule. The Board will not recalculate the life
expectancy(s).
(b) Participant's Death After Benefits Begin: If the Participant dies after his
payments have begun in a survivor annuity form, the Board 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 Board will pay his entire Accrued Benefit no later than
December 31 of the calendar year which contains the fifth anniversary of his death.
However, this five-year rule will not apply if the primary Beneficiary is an individual
described below and circumstances permit the Board to use the exception described
below.
(1) Surviving Spouse as Primarv Beneficiary: If the Participant's
surviving spouse is the Beneficiary, the Board 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
Participant's spouse's life expectancy, using age attained as of that date and not
recalculated.
(2) Non-Spouse Primary Beneficiary: If the Beneficiary is an
individual other than the Participant's spouse, the Board 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 determine.d 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 Board
will continue to use the primary Beneficiary's life expectancy for purposes of
making payrnents to an individual contingent Beneficiary.
(d) Compliance with Code Section 401(a) (9): The intent of this Section is
that the beginning dates and payment periods of benefits payable to each Participant and
Beneficiary will be within the limitations permitted under Code Section 401{a} (9). If
16
there is any discrepancy between this Section and Code Section 401(a)(9), Code Section
401(a)(9) will prevail. With respect to distributions under the Plan on ar after January 1,
2001, the Plan will apply the minimum distribution requirements of Section 401(a)(9) of
the Code in accordance with the regulations under Section 401(a)(9) that were proposed
on January 17, 2001, notwithstanding any provision of the Plan to the contrary. The
previous sentence shall continue in effect until the last calendar year beginning before the
effective date of the final regulations under Section 401(a)(9) or such other date as may
be published by the Internal Revenue Service.
3.10 Code Section 415 Limit
In no event will the annual benefits payable to any Participant exceed the limitations
contained in Code Section 415 at the time the Participant ceases to accrue Credited
Service.
A. Limitation on Benefits after 2002. Subsections B, C, and E of this Section shall
be effective as of January 1, 2002.
B. Definitions
(i) Defined Benefit Dollar Limitation. The "defined benefit dollar limitation"
is $160,000 (subject to adjustments required under applicable law for
employee contributions) as adjusted, effective January 1 of each year,
under Section 415(d) of the Code in such manner as the Secretary of
Treasury shall prescribe, and payable in the form of a straight life annuity.
A limitation as adjusted under Section 415(d) will apply to limitation
years ending with or within the calendax year far which the adjustment
applies.
(ii) M�imum Permissible Benefit: Far purposes of this Section 3.10, the
"maximum permissible benefit" is the lesser of the "defined benefit dollar
limitation" or the "defined benefit compensation limitation" (both adjusted
where required, as provided in paragraph (a) of this Section 3.10(b)(ii)
and, if applicable, in paragraphs (b) or (c) of this Section 3.10(B)(ii).
(a) If the Participant has fewer than 10 years of Credited Service, the
defined benefit dollar limitation shall be multiplied by a fraction,
(i) the num�rator of which is the number of years of Credited
Service and (ii) the denominator of which is 10. In the case of a
Participant who has fewer than 10 years of Credited Service, the
defined benefit compensation limitation shall be multiplied by a
fraction, (i) the numerator of which is the number of years of
Credited Service and (ii) the denominator of which is 10.
(b) If the retirement benefit of a Participant begins prior to age 62, the
defined benefit dollar limitation applicable to the Participant at
such earlier age is an annual benefit payable in the form of a
17
straight life annuity beginning at the earlier age that is the
Actuarial Equivalent of the defined benefit dollar limitation
applicable to the Participant at age 62 (adjusted under (a} above, if
required). The-defined benefit dollar limitation applicable at an age
prior to age 62 is determined as the lesser of: (i) the actuarial
equivalent (at such age) of the defined benefit dollar limitation
computed using the interest rate and mortality table (or other
tabular factor) specified in Section 1.02 of the Plan and (ii) the
actuarial equivalent (at such age) of the defined benefit dollar
limitation computed using a 5 percent interest rate and the
applicable mortality table as defined in Section 1.02 of the Plan.
Any decrease in the defined benefit dollar limitation determined in
accordance with this Section 3.10(B)(ii)(b) shall not reflect a
mortality decrement if benefits are not forfeited upon the death of
the Participant. If any benefits are forfeited upon death, the full
: mortality decrement is taken into account.
(c) If the benefit of a Participant begins after the Participant attains
age 65, the defined benefit dollar limitation applicable to the
Participant at the later age is the annual benefit payable in the form
of a straight life annuity beginning at the later age that is
actuarially equivalent to the defined benefit dollar limitation
applicable to the Participant at age 65 (adjusted under Section
3.10(B)(ii)(a), if required). The actuarial equivalent af the defined
benefit dollar limitation applicable at an age after age 65 is
determined as: (i) the lesser of the actuarial equivalent (at such
age) of the defined benefit dollar limitation computed using the
interest rate and mortality table (or other tabular factor) specified
in Section 1.02 of the Plan and (ii) the actuarial equivalent (at such
age) of the defined benefit dollax limitation computed using a 5
percent interest rate assumption and the applicable mortality table
as defined in Section 1.02 of the Plan. For these purposes,
mortality between age 65 and the age at which benefits comme�ce
shall be ignored.
C. Notwithstanding anything in this Section 3.10 to the contrary, benefit increases
resulting from the increase in the limitations of Section 415(b) of the Code 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, 200L
D. For distributions commencing prior to January 1, 2002 and for Participants who
do not have one hour of Credited Service before this date, the County shall, to the
extent required by the Economic Growth and Tax Relief Reconciliation Act and
in accordance with the Code, apply the limitations contained in Code Section 415,
18
as in effect at the time tlie distribution commenced; subject to the disregard of
Code Section 415(e) for distributions occurring after January 1; 2000.
E. In accordance with Code Section 415(b)(10), notwithstanding anything in this
' Section 3.I0 to the contrary, for purposes of Employees who became Participants
before January 1, 1990, the benefit limitations contained in this Section 3.10 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).
3.11 Rollover Distributions
Except where otherwise provided, Section 3.11 shall apply to benefits payable, but only
to the extent required by the plan qualification rules of Section 401(a) of the Code.
A. Notwithstanding any contrary provision of the Plan, a Distributee may elect, at the
time and in the manner prescribed by the County, to have any portion of an
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover.
B. The special capitalized terms used only in this Section 3.11 shall have the
meanings specified below:
"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 Employee's spouse or fonner
spouse.
"Eligible Retirement Plan" means an individual retirement account described in
Section 408(a) of the Code, an annuity plan described in Section 403(a) of the
Code, an annuity contract described in Section 403(b) of the Code, or a qualified
trust described in Section 401(a) of the Code that accepts the Distributee's
Eligible Rollover Distribution. Effective for Plan Years ending before January 1,
2002, in the case of an Eligible Rollover Distribution to the Employee's surviving
spouse, an Eligible Retirement Plan shall mean only an individual retirement
account or individual retirement annuity. Effective as of January 1, 2002, the
definition of `Bligible Retirement Plan" shall also apply to an annuity contract
described in Section 403(b) of the Code, an eligible plan under Section 457(b) of
the Code which is maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a state and which
agrees to separately account for amounts transferred into such plan from this Plan,
and in the case of a distribution to an Employee's surviving spouse, or to a
19
spouse or former spouse who is the alternate payee under a qualified domestic
xelations order, as defined in Section 41 �(p) of the Code.
"Eligible Rollover Distribution" means any distribution of all or any portion of the
: Accrued Benefit to the credit of the Distributee, except that an Eligible Rollover
Distribution does not include: (1) any distribution that is one of a series of
substantially equal periodic payrnents (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; (2) any distributiori to the extent such
distribution is required under Section 401(a)(9) of the Code; and (3) the portion of
any distribution that is not includible in gross income. Effective as of January l,
2002, notwithstanding the foregoing, any amount that is distributed on account of
hardship, to the extent allowed under the Plan, shall not constitute an Eligible
Rollover Distribution.
SECTION 4
DEATH BENEFITS
4.01 Death Prior to Retirement
A. Non-Dutv Connected Death �
If the employment of a Participant is terminated by reason of his death prior to his
Normal Retirement Date and such death was not the result of the Participant
actively performing the prescribed duties of his job, there shall be payable to his
surviving spouse or, if no spouse survives, then to his designated Beneficiary, a
lump-sum cash amount equal to the total amount of the Participant's
Contributions with Interest.
B. Dutv Connected Death
(1) If the employment of a Participant is terminated by reason of his
death while actively performing the prescribed duties of his job and not resulting
from any inisconduct or willful negligence of the Participant, the spouse (if any) of
such deceased Participant will receive a monthly benefit equal to twenty-five
percent (25%) of the Participant's Average Earnings at date of death, such benefit
to commence on the first day of the month fo�lowing the last payment of: (a) any
monthly benefits provided under the Workmen's Compensation Laws of Georgia,
or (b) if paid in a lump-sum amount, the last monthly payment which would
otherwise be payable if such lump-sum payment is equitably adjusted on the basis
of the monthly amount to which the Participant would be entitled under such law.
The monthly benefit shall be payable until the spouse of the deceased Participant
dies or remarries; provided, however, in the event of the spouse's death while a
minor child or children of the deceased Participant survive, the same monthly
benefit shall continue for the benefit of such child or children, in equal monthly
20
shares, to the earlier of: (a) the marriage or (b) attainment of age 18 as to each
child.
(2) In the event of the death of a Participant described in paragraph
B(1) of this Section, who does not leave a surviving spouse but leaves a surviving
child or children, the legal guardian of such children shall receive on their behalf
. the benefits provided in paragraph B(1) of tl2is Section.
(3) . If no spouse or children survive the deceased Participant, a
lump-sum cash amount equal to the total amount of the Participant's contributions
with interest shall be paid to his designated Beneficiary.
4.02 Death After Retirement
If a Participant dies subsequent to his retirement and had not elected an optional form of
payment in accordance with Section 5, or had elected to receive a deferred benefit under
Section 3.02-B(1) or Section 3.05-B but such benefit had not commenced, his Beneficiary
shall receive a lurnp-sum cash amount equal to the excess; if any, of (a) the Participant's
Contribution with Interest, over (b) the total monthly payments, if any, made to the
Participant prior to his date of death, such amount to be payable within 60 days following
the Participant's date of death.
4.03 Adjusted Benefit
The amount of monthly retirement benefit provided under this Section 4 shall be adjusted
by the cost-of-living adjustment as provided in Section 3.07 upon commencement of such
benefit.
4.04 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 4 or 5. Such designation shall be made in writing on a form provided by
the Board and shall be signed and filed with the Board. The Participant may
change his designation from time to time by filing the proper form with the
Board, and each change shall revoke all prior designations by the Participant. In
each such designation the Participant may name one or more primary
Beneficiaries and one or more contingent Beneficiaries. If no Beneficiary
designated by the Participant survives the Participant, the Board may direct the
payment of such benefits to (a) the spouse of the deceased, if living; otherwise, to
(b) the descendents of the deceased Participant per stirpes or on their behalf as
provided in Section 10.04; or if none, to (c) the legal representative of the estate
of the deceased Participant.
B. In the event of the death of a Beneficiary who survives the Participant and who, at
his or her death, is receiving benefits as described in paragraph A of this Section,
the remaining benefits, if any, shall be payable to a person designated by the
Participant to receive the remaining benefits, or, if no person was so designated,
21
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 Board in its sol� discretion may determine.
. _
C. In the event the Board does not direct the payments as specified in paragraphs A
or B of this Section,-the Board may elect to have a court of applicable jurisdiction
determine to whom payments should be made, and the Board shall follow such
instructions as the court may give.
SECTION 5
OPTIONAL FORMS OF RETIREMENT 1NCOME
5.01 Election of Optional Retirement Benefits
A Participant may elect, or may revoke a previous election and make a new election, at
any time 30 days or more prior to his Normal Retirement Date, Early Retirement Date,
Enhanced Retirement Date or Delayed Retirement Date, whichever is applicable, to have
his retirement benefit payable under one of the options hereinafter set forth in lieu of the
retirement benefit he is otherwise entitled to receive under Section 3.01, 3.02, or 3.04.
The benefit shall be paid in accordance with the terms of such option elected. Election of
any option shall be made by the Participant in writing and shall be subject to approval by
the Board. No optional election is available for Disability Retirement (Section 3.03).
5.02 Descri�tion of Options
The amount of any optional retirement benefit set forth below shall be the Actuarial
Equivalent of the amount of benefit that would otherwise be payable to the Participant
under the applicable provision of Section 3 without regard to any future cost-of-living
adjustments.
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
22
adjustment as provided in Section 3:07; provided, however, that if payments are to be
made to an estate the commuted value of such payment shall be made in lieu of
continuation of monthly payments. Such commuted value shall be equal ta the amount of
the luinp-sum value of tY�e remaining monthly payments �n the amount of the last monthly
' payment, discounted on such actuarial tables as may be adopfed by the Board, ignoring
any future cost-of-living adjustments.
23
5.43 Joint Annuitant or Beneficiarv
A Participant who elects Option A of Section 5.02 shall designate (in accordance with
Section 4.04), on a form provided for that purpose, a person to receive benefits payable in
the event of the Participant's death. Such person(s) shall be the Beneficia�y of the
Participant.
A Participant who elects Option B of Section 5.02 with benefits payable after his death
for another person's lifetime shall, designate, on a"form provided for that purpose a
person to receive the benefits which continue to be payable upon the death of the
Participant. Such person shall be the Joint Annuitant of the Participant.
5.04 Cancellation of Election
The electian by a Participant of Option B of Section 5.02 shall be null and void if either
the Participant or his designated Joint Annuitant should die before benefits commence.
SECTION 6
CONTRIBUTIONS
6.01 County Contributions
Contributions by the County sha11 be paid to the Trustee at such times and in such
amounts as shall be determined by the County, based upon the recommendations of an
actuary. County contributions paid into the Fund shall be used only for the benefit of the
Paxtzcipants and beneficiaries under the Plan.
6:02 Participant Contributions
A. Each Employee who becomes a Participant in the Plan must contribute to the
Fund an amount equal to 4% of his Earnings. The Participant will stop making
Contributions as of the ear�ier of: (1) the date he terminates employment for any
reason, or (2) his actual retirement date. AII Participant Contributions on or after
January l, 1993 will be made on a before-tax basis under Code Section 414(h).
Participants will make their Contributions by payroli deduction. -
B. A Participant who was most recently hired before January 1, 1993 may withdraw
his Participant Contributions after filing a written appl'zcation with the Board, on a
form provided by the Board and subject to the following conditions:
(1) The withdrawal will be effective 60 days after the date when the
Board receives the application.
24
(2) The Participant who withdraws his contributions will discontinue
participation in the Plan as of the date the withdrawal is effective, and he may not
resume participation for a period of 12 months following the withdrawal date.
Any such Employee who elects to reenter the Plan after December 3l, 1992 will
continue to participate until he terminates employment, dies, or retires.
(3) A Participant who withdraws his contributions from the Plan will
forfeit aII Credited Service accrued to the date of withdrawal. No Participant
whose most recent date of hire is after December 31, 1992 may withdraw his
Contributions before he terminates employment.
SECTION 7
ADMINISTRATION OF PLAN
7.01 Administration
A. Powers of Board The Board shall control the administration of the Pian
hereunder, with all powers necessary to enable it properly to carry out its duties in
that respect. Not in limitation, but in amplification of the foregoing, the Board
shall have the power to construe said Plan and to determine all questions that shall
arise thereunder, and shall also have all the powers elsewhere herein conferred
upon it. It sliall decide all questions relating to the eligibility of Employees to
participate in the benefits of the Plan, and shall determine the benefits to which
any Participant, Beneficiary, or Joint Annuitant may, be entitled under the Plan.
The decisions of the Board upon all matters within the scope of its authority shali
be final and binding upon all parties to this instrument, Participants, and
Participants' Beneficiaries and Joint Annuitants.
The Plan shall be interpreted by the Board and aIl Plan fiduciaries in accordance
with the terms of the Plan and their intended meanings. However, the Board and
all Plan fiduciaries shall have the discretion to make any findings of fact needed
in the admiz�istration of the Plan, and sha11 have the discretion to interpret ar
construe ambiguous, unclear or implied (but omitted) terms in any fashion they
deem to be appropriate in their sole judgment. The validity of any such finding of
fact, interpretation, construction or decision sha11 not be given de novo review if
challenged in court, by arbitration or in any other forum, and shall be upheld
unless clearly arbitrary or capricious. To the extent the Board or any Plan
fiduciary has been granted discretionary authority under the Plan, the Board's or
Plan fiduciary's prior exercise of such authority sha11 not obligate it to exercise its
authority in a like fashion thereafter. If, due to errors in drafting, any Plan
provision does not accurately reflect its intended meaning, as demonstrated by
consistent interpretations or other evidence of intent, or as determined by the
Board in its sole and exclusive judgment, the provision shall be considered
ambiguous and shall be interpreted by the Board and a11 Plan fiduciaries in a
fashion consistent with its intent, as determined by the Board in its sole discretion.
25
The Board, acting as a nonfiduciary settlor; may amend the Plan retroactively to
cure any such ambiguity, notwithstanding anything in the Plan to the contrary.
This Section may not be invoked by any person to require the Plan to be
interpreted in a manner which is inconsistent with its interpretation by the Board
or by any Plan fiduciaries. All actions taken and all determinations made in good
faith by the Board or by Plan fiduciaries shall' be final and binding upon all
: persons claiming any interest in or under the Plan.
B. Records of Board. All acts and determination of the Board shall be duly recorded
by the clerk, or under his supervision, and all such records, together with such
other documents as may be necessary far the administration of the Plan shall be
preserved in the custody of such clerk.
C. Exemption from Liability of Board. The members of the Board, and each of
them, shall be free from all liability, joint, and several, for their acts, omissions
and conduct, and for the acts, omissions and conduct of their duly constituted
agents, in the administration of the Plan, and the County shall indemnify and save
each of thern 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 Board shall prepare and distribute to the Employees
information concerning the Plan, at the expense of the County, in such manner as
it shall deem appropriate.
To enable the Board to perform its functions, the County shall supply fizll and
timely information of a11 matters relating to the compensation and length of
service of all Participants, their retirement, death or other cause of termination of
employnnent, and such other pertinent facts as the Board may require.
The Board shall be entitled to rely upon all tables, valuations, certificates, and
reports furnished by an actuary, who shall be a member of the American -
Academy of Actuaries, or an organization which one or more members is a
member of the American Academy of Actuaries and upon all certificates and
reports made by an accountant selected or approved by the Board. The Board
shall be fully protected in respect to any action taken or suffered by it in good
faith in reliance upon the advice or opinion of any actuary, accountant, or
attorney, and all action so taken or suffered shall be conclusive upon each
member of the Board and upon all persons interested in the Plan.
26
SECTION 8 '
TRUST FUND AND TRUSTEES
8.01 Trust Fund
The assets of the Fund shall be held, administered, and invested by the Board. The Fund
shall consist of all payments by the County and Participants to the Fund as provided in
Section 6 and earnings from investments. The assets of the Fund shall be valued as of the
end of each Plan Year, and at any other time required by the Board, at the then existing
book and market value.
The Trustee shall maintain a separate permanent record of the Fund. All decisions of the
Board and the Trustee in regard to the Fund ar any payments or withdrawals therefrom
shall be entered on the permanent record kept by the Trustee and such permanent record
shall be open to inspection by any interested person at all regular business hours.
The Board shall keep the Trustee and clerk of the board bonded at all times in an amount
equal to the total Fund in the possession of or under the control of either; provided,
however, that such bond shall not exceed $200,000 as to each party. The bonds shall also
cover any person acting for the Trustee or clerk who in any manner handles any assets of
the Fund or has any discretionary authority regarding same.
8.02 Amendment of Trust �
'The County shall have the right at any time, by an instrument in writing duly executed by
the Board and to the Trustee, to modify, alter, or amend this Plan and Trust in whole or in
part; provided, however, that the duties, powers, and liability of the Trustee hereunder
shall not be substantially increased without the County's written consent, and provided
further, that no such amendrnent shall have the effect of revesting in the County any part
of the principal or income of the Fund.
8.03 Discontinuance ofTrust and Vestin�
The County expressly reserves the right to terminate this Plan and Trust Agreemenf at
any time. Upon termination of the P1an by the County, or complete discontinuance of
Employee or County contributions thereunder, having the effect of termination, the rights
of each Participant to benefits accrued to the date of such termination or discontinuance,
to the extent then funded, shall be nonforfeitable. In either case the Trustee shall, upon
instructions from the County, continue to administer the Fund as provided in Section
9.02. No part of the Fund shall at'any time revert to the County unless all benefits for
Participants and their Payees have been provided.
8.04 Powers of Trustee
The Trustee shall have the following power and authority in the administration of the
Fund to be exercised in accordance with and subject to the provisions of Section 8.05
hereof:
27
A. Purchase of Property: To purchase, or subscribe for, only securities, stocks,
bonds, or other property specified in Section 8.05 and to retain the same in the
Fund;
B. Sale Exchan�e conveyance and Transfer of Property: To sell, exchange,
convey, transfer, or otherwise dispose of any securities or other property held by
the Fund by private contract or at public auction. No person dealing with the
Trustees shall be bound to see the application of the purchase money or to inquire
into the validity, expediency or propriety of any such sale or other disposition;
C. Exercise of Owner's Rights: To vote upon any stocks, bonds, or other securities;
to give general proxies or powers of attorney with or without power of
substitution; exercise any conversion privileges, subscription rights, or other
options, and to make any payments incidental thereto; to appose or consent to, or
otherwise to participate in, corporate reorganizations or other changes affecting
corporate securities, an to delegate discretionary powers, and to pay any
assessments or charges in connection therewith; and generally to exercise any of
the powers of any owner with respect to stocks, bonds, securities, or other
property held as part of the Fund;
D. Retention of Cash: To keep such portion of the Fund in cash or cash balances as
the Trustee may, from time to time, deem to be in the best interest of the Fund,
without liability far interest thereon;
E. Execution of Instruments: To make, execute, acknowledge, and deliver any and
all documents of transfer and conveyance and any and all other instruments that
may be necessary or appropriate to carry out the powers herein granted;
F. Settlement of Claims and Debts: To settle, compromise, or submit to arbitration
any claims, debts, or damages due or owing to or from the Fund, to commence or
defend suits or legal administrative proceedings, and to represent the Fund in all
suits and legal and administrative proceedings, and any expenses incurred for
such proceedings shall be paid by the County;
G. Employment of A�ents and Counsel: To employ suitable agents and counsel and
pay their reasonable expenses and compensation; and
H. P-ower to do Any Necessarv Act: To do all such acts, take all such proceedings
and exercise all such rights and privileges, although not specifically rnentioned
herein, as the Trustee may deem necessary to administer the Fund, and to carry
out the Purposes of this Trust. To serve without being required to file any returns
or reports of any kind with any court.
8.05 Investment of Fund
The County comptroller shall be the custodian of such fund and shall deposit all
contributions to the Plan in a bank or banks, and, pursuant to the directian of the pension
fund investment committee, which committee shall consist of the members of the
28
Augusta-Richmond County Commission, shall invest and reinvest, from time to time, and
. portion thereof : not immediately needed for the payrnent of pensions, in securities
approved by law for the investment of Trust funds; and, in such securities other than
those specifically approved by law for the investment of Trust funds, as the pension fund
investment committee shall deem proper, from time to time; provided, however, that the
amount of the Fund which may be invested in such securities other than those specifically
approved by law for the investrrient of Trust funds may not exceed fifty percent (50%) of
the total amount of the Fund then outstanding; and in addition thereto, the investment
-comniittee may r�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
Arnerica, ar any state thereof, provided such bonds or debentures are rated at the time of
their purchase, by a nationally recognized securities rating service, as AAA (Aaa); AA
(Aa) or A(a) or in lieu thereof, provided such bonds or debentures are the type in which
domestic life insurance companies are permitted to invest under any applicable
provisions of the Official Code of Georgia Annotated, as amended. The amount of the
pension fund which may be invesfied in the bonds and debentures of any once corporation
may not exceed ten percent (10%) of the total amount of such fund then outstanding.
8.06 Taxation
The Board, in its settlor capacity, is authorized to levy a tax from time to time sufficient
to pay the benefits provided under the terms of tke Plan. Liabilities of the Fund for the
payment of benefits shall be determined by the Board, based upon the recommendations
of an actuary.
8.07 Resignation of Trustee
The Trustee may resign as Trustee of the Trust at any time by giving sixty days written
notice to the County, or with the consent of the County, the Trustee may resign at any
time. At such time as the resignation becomes effective, the Trustee shall render to the
County an account of its administration of the Fund during the period following thaf
covered by its last annual account, and shall perform all acts necessary to transfer and
deliver the assets of the Fund to its successor.
8.08 Successor Trustees
In the event of vacancy of one or more individuals in the trusteeship of this Trust
occurring at any time, the Board shall designate and appoint qualified successor
Trustee(s) until such individuals are elected by the electorate.
29
8.09 Liability of Trustee
The Trustee shall not be liable for the making, retention, or sale of any investment
: authorized hereunder nor for a failure to make, retain, or sell any investment nor shall the
Trustee be liable for any loss to or diminishment of the Fund, except as shall be due to its
own willful misconduct or lack of good faith. The Trustee shall not be required to make
any inventory, appraisal, or report to any court, or to secure any order of court for the
exercise of any power herein contained.
8.10 Disbursements
Upon written direction (which may be a continuing one) from the Board as to the name of
any person to whom money is to be paid from the Fund and the amount thereof, cheeks
shall be drawn by the Trustee in the name of the person designated by the Board and
deliver such checks in such manner and amounts and at such time as the Board shall
direct. In the event the Trustee sha11 deem it necessary to withhold any distribution
pending compliance with legal requirements with respect to probate of wills, appointment
of personal representatives, payment of or provision for estate or inheritance taxes, or for
death duties or otherwise, the Trustee shall withhold payment pending receipt of the
instructions from the County Attorney to make such distribution.
SECTION 9
AMENDMENT AND TERMINATION
9.01 Amendment of the Plan
The County shall have the right at any time pursuant to authorization of the Board, to
amend any or all of the provisions of the Plan; provided, however, that no such
amendment shall authorize or permit any part of the Fund to be diverted to purposes other
than for the exclusive benefit of Participants and their Payees; and further provided, that
no amendment shall have the effect of revesting in the County any portion of such Fund
except such amounts which remain in the Fund after termination of the Plan and after all
liabilities under the Plan have been satisfied.
9.02 Terrnination of the Plan
The County expects this Plan to be continued indefinitely but, of necessity, reserves the
right to terminate the Plan and its contributions thereunder at any time by action of the
Board; provided, however, that should the County terminate the Flan 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 Board shall arrange for the Fund to be apportioned and distributed in
accordance with the following procedure:
30
A. The Board shall determine the date of distribution and asset value of the Fund to
be distributed, taking into account the expenses of distribution.
B. The Board 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 amo�nt, the purchase of an annuity from an
- insurance company, or otherwise.
C. The Board shall apportion the asset value in the priority and manner set forth
below, on the basis that the amount required to provide any, given retirement
benefit shall mean the actuarially computed single-sum value of such benefit,
except that if the method of distribution determined under paragraph B of this
Section involves the purchase of an insured annuity, the amount required to
provide the given retirement benefit shall mean the single premium payable for
such annuity:
(1) An amaunt 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 tfiere 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
31
active Participant on such date who has completed at least 10 years of
Credited Service and each former Participant then entitled to a deferred
benefit under Section 3.05-B hereof who has not, by such date, reached his
Normal Retirement Date, none of whom is entitled to an apportionment
under (2) above, in the amount required to provide the actuarially
determined value of the accrued benefit as of the termination date of the
Plan, less any apportiorunent 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), or (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 (1), (2), (3), (4), and (5) above,
such excess shall revert to the County.
D. The Board shall cause to be distributed, in accordance with the manner of :
distribution determined under paragraph 'B of this Section, the amounts
apportioned under paragraph C of this Section.
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.
This Plan shall be construed in accordance with the laws of the State of Georgia.
32
10.03 Nonalienation
No benefits payable under the Plan will be subject to the claim or legal process of any
creditor of any Participant or Beneficiary, and no Participant or Beneficiary will alienate,
transfer, anticipate, or assign any benefits under the Plan, except that distributions will be
made pursuant to (a) qualified domestic relations orders issued in accordance with Code
Section 414(p), (b) judgments resulting from federal t� assessments, and (c) as
otherwise required by law.
10.04 Legallv Incompetent
If any Participant or Payee is a minor, or, in the judgment of the Board is otherwise
legally incapable of personally receiving and giving a valid receipt for any payment due
him hereunder, the Board may, unless and until claim shall have been made by a duly
appointed guardian or committee of such person, direct that such payment or any part
thereof be made to such person's spouse, child, parent, brother, or sister or other person
deemed by the Board to have incurred expense for or assumed responsibility for the
expenses of such person. Any payment so made shall be a complete discharge of any
liability under this Plan for such payrnent.
10.05 Benefits Su�ported Only Bv Fund
Any person having any claim under the Plan will look solely to the assets of the Fund for
satisfaction. In no event will the County, or any of its officers, members of the Board, or
agents, be liable in their individual capacities to any person whornsoever, under the
provisions of the Plan.
10.46 Discrimination
The County, through the Board, shall administer the Plan in a uniform and consistent
manner with respect to all Participants and shall not permit discrimination in favor of
officers, supervisory, or highly paid Employees.
10.07 Limitation of Liability; Legal Actions
It is expressly understood and agreed by each Employee who becomes a Participant
hereunder, that except for its or their willful negligence or fraud, neither the County, the
Trustee, nor the Board shall be in any way subject to any suit or litigation, or to any legal
liability, for any cause or reason whatsoever, in connection with this Plan or its operation,
and each such Participant hereby releases the County, Trustee, Board, and all its officers
and agents from any and all liability or obligation.
10.08 Claims
Any payment to a Participant, Joint Annuitant, or Beneficiary, or to their legal
representatives, in accordance with the provision of this Plan, shall to the extent thereof
be in full satisfaction of all claims hereunder against the Board, Trustee, and the County,
any of whom may require such Participant, Beneficiary, or legal representative, as a
33
condition precedent to such payment, to execute a receipt and release therefore in such
form as shall be detennined by the Board.
10.09 Forfeitures
Forfeitures arising from any cause whatsoever under this Plan shall not be applied to
increase the benefits any Participant would otherwise receive under the Plan at any time
prior to the termination of the Plan or the complete discontinuance of County
contributions hereunder; forfeitures shall be applied to reduee the County's contributions
under the Plan in the then current or subsequent years.
34
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ORDINANCE N0. J �� � !
AN ORDINANCE TO AMEND THE RETIREMENT PLAN FOR
EMPLOYEES OF RICHMOND COUNTY, GEORGIA
EFFECTIVE JANTJARY 1, 1977, SO AS TO REVISE
THE PROVISIONS REGARDING INVESTMENT OF THE
FUND; TO REPEAL CONFLICTING ORDINANCES; TO
PROVIDE AN EFFECTIVE DATE; AND FOR OTHER
PURPOSES.
BE IT ORDAINED BY THE AUGUSTA-RICHMOND COUNTY,
COMMISSION AND IT IS HEREBY ORDAINED BY AUTHORITY OF SAME AS
FOLLOWS:
Section 1. The Retirement Plan for Employees of
Richmond County, Georgia effective January l; 1977 is hereby
amended by deleting the first paragraph of Section 8.05 of the
Plan, to wit:
The Trustee is authorized to deposit funds held by
it with any bank located in Richmond County,
Georgia, as depository. The Trustee shall have
authority to invest and reinvest assets of the
Fund held for the purpose of paying benefits, but
which is not needed for the immediate payment
thereof, as determined by the Trustee, in
securities of the United States of America,
,:f including securities of agencies of said
` r �J I _
,��;_,� , government; of the State of Georgia; of Richmond
County; or any other county or municipality of the
State of Georgia; or insured savings in savings
and loan associations and State and National
Banks� corporate bonds and debentures or other
evidence of indebtedness assumed or guaranteed by
any solvent institution existing under the laws of
the United States of America or any state thereof,
which are not in default as to principal or
interest and which are secured by collateral worth
at least 50% more than the par value of the entire
issue of such obligations, but only if not more
than one-third of the total value of such required
collateral consists of common stock. The Board
may also invest in corporate stocks which are non-
assessable dividend paying stocks, common or
preferred, of any solvent corporation created or
existing under the laws of the United States or
any state thereof; provided cash dividends of such
common stocks shall have been paid out of current
earnings in at least two of the last three years
preceding the purchase, and provided further, that
the Fund shall not own more than (a) 100 of the
issued and outstanding shares of any one
corporation or (b) an aggregate of more than 250
of the issued and outstanding shares of corporate
stock of any number of corporations.
and substituting therefor the following:
The comptroller shall be the custodian of
such fund and shall deposit the same in a
bank or banks, and, pursuant to the direction
of the pension fund investment committee,
which committee shall consist of the members
of the Augusta-Richmond County Co�mission,
shalI invest and reinvest, from time to time,
any portion thereof not immediately needed
for the payment of pensions, in securities
approved by law for the investment of trust
funds; and, in such securities other than
those specifically approved by law for the
investment of trust funds, as the pension
fund investment committee shall deem proper,
from time to time; provided, however, that
the amount of the pension fund which may be
invested in such securities other than those
specifically approved by law for the
investment of trust funds may not exceed
fifty percent (500) of the total amount of
the fund then outstanding; and in addition
thereto, the investment committee may invest
such funds in bonds and debentures assumed or
guaranteed by any solvent corporation or
institution existing under the laws of the
United States of America, or any state
thereof, provided such bonds or debentures
are rated at the time of their purchase, by a
nationally recognized securities rating
service, as AAA (Aaa) , AA (Aa) or A(a) or in
lieu thereof, provided such bonds or
debentures are the type in which domestic
life insurance companies are permitted to
invest under the provisions of Section 33-11-
20 of the Official Code of Georgia Annotated
(Ga. Code Ann. � 56 as amended. The
amount of the pension fund which may be
invested in the bonds and debentures of any
once corporation may not exceed ten percent
(100) of the total amount of such fund then
outstanding.
Section 2. All laws or ordinances or parts of laws or
ordinances-in conflict with this ordinance are hereby repealed.
Section 3. This Ordinance shall be effective upon
adoption.
ADOPTED the 30th day of December , 1997 and the
6th day ot January , 1998.
AUGUSTA-RICHMOND COUNTY
COMMISSION
BY:
s it ay '
ATTEST:
As i Clerk n " ado �i� e�J�p�;,
7��
I, the undersigned, LENA BONNER, CLERK, do hereby certify
that the foregoing is a true and correct copy of an ordinance
adopted by the said Augusta-Richmond County Commission at two
consecutive meetings, held, on the following dates, to-wit:
December 3� , 1997, and Januar,y 6 , 1998, as the same appear
on the minutes of said Commission.
This 6th day of January , 1998.
rk