HomeMy WebLinkAboutORD 6656 1949 GENERAL RETIREMENT FUND ( CITY of AUGUSTA) ; �
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ORDINANCE NO. 6656
CITY OF AUGUSTA
19��l����}+i�R�L RETIREMEN'T FUND`
As Amended and Restated Effective January 1, 1997
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TABLE OF CONTENTS
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SECTION 1 DEFINITIONS ................................................................................................. 3
1.01 Accrued Benefit .........................................:....... ............................................... 3
1.02 Actuarial Equivalent ............................................................................................. 3
1.03 Average Earnings ................................................................................................... 3
1.04 Beneficiary ....................................................................................:....................... 3
1.OS City ......................................................................................:..............:...................3
1.06 Code ...................................................................................................................... 3
1.07 Commission ........................................................................................................... 3
1.08 Committee ..............................................................................................................3
1.09 Comptroller ............................................................................................................3
1.10 Contributions ....................................................:...................................................3
1.11 Credited Service ..............................................................................:...................... 3
1.12 Deputy Comptroller ............................................................................................... 4
1.13 Earnings .............................. ............................................................................... 4
1.14 Effective Date ...........................................................................:........................... 4
I. I S Employee ............................................................................................................... 4
1.16 Employer or County ............................................................................................ 5
1.17 Fund ....................................................................................................................... 5
1.18 Interest .................................................:................................................................5
1.19 Joint Annuitant ...................................................................................................... 5
1 .20 Mayor .....................................................................................................................5
1.21 Participant ............................................................................................................. 5
1.22 Payee .................................................................... ...... 5
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1.23 Pension Fund Investment Committee ................................................... ............ 5
1 .24 Plan ....................................................................................................................... 5
1 .25 Plan Year ............................................................................................................... 5
1.26 Secretary ......................................................................................................:......... 5
1.27 Total and Permanent Disability ......:.................................................................. 5
1.28 Trust Agreement or Tz ............................................................................:......... 6
1 .29 Trustee ..................................................................................................................: 6
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TABLE OF CONTENTS
(continued)
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SECTION 2 ELIGIBILITY AND PARTICIPATION ......................................................... 6
2.01 Eligibility ...............................................................................................................
SECTION 3 RETIREMENT DATES AND BENEFITS ..................................................... 6
3.01 Normal Retirement ................................................................................................ 6
3.02 Early Retirement .................................................................................................... 7
3.03 Disability Retirement ............................................................................................. 8
3.04 Delayed Retirement ............................................................................................... 9
3.05 Termination of Employrnent ........................ •••• 9
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3.06 Cost-of-Living Adjustmenf of Benefits ............................................................... 10
3.07 Required Distribution Rules ................................................................................ 11
3.08 Code Section 415 Limit ....................................................................................... 12
3.09 Enhanced Early Retirement for 1996 ................................................................... 14
3.10 Special Unreduced Early Retirement ................................................................... 15
3.11 Rollover Distributions .......................................................................................... 15
3.12 Normal Forms of Benefits for Married Participants . ................................,........... 16
3.13 Supplernental Retirement Benefit ........................................................................ 20
SECTION4 DEATH BENEFITS ...................................................................................... 21
4.01 Death Prior to Retirement .................................................................................... 21
4.02 Death After Retirement ................................................................:....................... 22
4.03 Adjusted Benefit .................................................................................................. 22
4.04 Designation of Beneficiaries ................................................................................ 22
SECTION5 CONTRIBUTIONS ....................................................................................... 23
5.01 City Contributions ..... ......................................... . ........................................... 23
5.02 Participant Contributions ..................................................................................... 23
SECTION 6 OPTIONAL FORMS OF RETIREMENT INCOME .................................... 24
6.O1 Election of Optional Retirement Benefits ............................................................ 24
6.02 Description of Options ......................................................................................... 24
6.03 Joint Annuitant or Beneficiary ............................................................................. 25
6.04 Cancellation of Election ....................................................................................... 25
SECTION 7 ADMINISTRATION OF PLAN ................................................................... 25
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TABLE OF CONTENTS
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7.01 Administration ..................................................................................................... 25 '
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 ................................................................... 27
8.04 Powers of the Commission .................................................................................. 27 '
8.05 Investment of Fund ..........:................................................................................... 27 '
8.06 Taxation ............................................................................................................... 28
8.07 Resignation of Trustee ......................................................................................... 28 '
8.08 Successor Trustees ............................................................................................... 29
8.09 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 .......................................................................................................31
10.04 Benefits Supported Only By Fund ........................................:.............................. 32
10.05 Discrimination .........:........................................................................................... 32
10.06 Limitation of Liability; Legal Actions ................................................................. 32
10.07 Claims .................................................................................................................. 32
10.08 Forfeitures .............................::............................................................................. 32 '
10.09 Applications ................:........................................................................................ 32
10.10 Effect of Extension of the Federal Social Security Act ....................................... 33
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1949 GENERAL RETIREMENT FUND
INTRODUCTION
Effective March 1, 1949, the General Assembly of Augusta, Georgia established the "City
Council of Augusta 1949 Georgia Retirement Fund," hereinafter referred to as the Plan. The
Plan covers Employees hired on or before December 31, 1986, meaning no one hired after that
date is eligible to participate in the Plan.
On February20, 2002, the Augusta-Richmond County Commission, as successor to the City
Council of Augusta 1949 General Retirement Fund approved this restatement of the Plan
effective January 1, 1997 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 certa.in 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,
whether before or after this restatement, and to otherwise restate the Plan in accordance with past
practices relating to Plan sections required under the Code to maintain the Plan's tax-qualified
status. The restatement includes a few other charges designed to facilitate its administration. The
EGTRRA amendments set forth in Sections 3.08 and 3.09 sha11 cease to be effective as of
December 31, 2010 unless they have been otherwise extended by law.
It is the City's intention to fully honor all benefits and rights that Plan Participants have accrued
under the Plan prior to this restatement. The Plan shall be administered and construed
accordingly, and the Plan's administrator shall construe and interpret every provision of the
Plan's restatement as effective January 1, 1997 in a ma.nner that preserves each Plan Participant's
benefits or rights that accrued prior to February 20, 2002.
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Specifically, the restated Plan honors the following pre-2002 Plan provisions in the following
manner:
Plan Provision Prior Plan Section 2002 Plan Section
Continued Participation for those 1,2 2.01
employed on 12/31/$7
Age 35 limit on participation 2 Superseded and
inapplicable
Funding: Creation and Administration 3 g
City Contribution 4 5.01
Employee Contributions 4 5.02
Normal Retirement Benefits 5(1) 3.01
Delayed Retirement Benefits 5(2) 3.04
Early Retirement Benefits 5(6) 3.02
Special Unreduced Early Retirement 5(7) 3.10
(20+ years)
Enhanced Early Retirement Benefits SA 3.09
Disability Retirement Benefits 5(5), 7 3.03
Continuity of Service 6 1. ll
Amount of Retirement Allowance 7 3.01
Cost ofLiving Adjustrnents 76(1) 3.06
Alternative Form of Retirement 8 6
Allowance
Surviving Spouse Benefits; Benefits 8A, 9 3.12A, 4.01, and 4.02
for widows of Employees Killed in
Line of Duty
Withdrawal of Contributions 9 5.02(B)
TerminationofEm lo ent 9(1) 3.05
Assi nment Prohibited 10 10.03
Effect of Extension of Federal Social ll 10.10
Security Act
Plan Construcrion 12 10.02
The Plan will be administered by the Commission as described in Section 6. All benefits to be
provided under the Plan will be funded under a trust established in accordance with Section 7
hereof.
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SECTION 1
DEFINITIONS
As used herein, unless otherwise defined or required by the context, the following words and
phrases shall have the meanings indicated:
1.01 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 Credit Service, which is payable as of his Normal Retirement Date in the
form of a life annuity, with a guarantee of the refund of Employee Contributions with
interest for the Participant who dies before receiving an amount of benefit payrnents that
at least equal his Employee Contributions with interest.
1.02 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 in which the benefit is calculated.
1.03 Average Earnin�s - The monthly average of the Participant's Earnings for the thirty six
(36) consecutive calendar months, immediately preceding the earlier to occur of (a) the
date on which the Participant's employment with the employer terminates for any reason
or (b) the Participant's actual retirement date. Average earnings shall be determined by
dividing the total earnings received by the Participant during the appropriate three (3)
year period, or lesser number of years if applicable, by the number of months for which
he received earnings in such period.
1.04 Beneficiarv - The person(s) designated by the Participant in accordance with Section 4.04
who is entitled to receive benefits at the death of a Participant under Section 4.
1.05 Citv — The city of Augusta, Georgia, successor by consolidation to The City Council of
Augusta and Richmond County, created by 1995 Ga. Laws p. 3648, as amended.
1.06 Code - The Internal Revenue Code of 1986 as amended from time to time, and
regulations or rulings issued thereunder.
1.07 Commission - Augusta-Richmond County Commission, as successor to The City Council
of Augusta, Georgia, which Augusta-Richmond County Commission shall act in the dual
capacity of administrator of the Plan and Trustee of the Fund.
1.08 Committee — the pension committee consisting of the Augusta-Richmond County
Commission.
1.09 Comptroller — The elected comptroller of Augusta, Georgia.
1.10 Contributions - The payments made by the Participants to the Fund in accordance with
Section 5.
1.11 Credited Service - The number of years of uninterrupted and continuous employment
(completed months expressed as a fractional year) of the Employee with the Employer
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from (a) the date he last entered the employment of the Employer, to (b) the earlier of his
date of termination of employment for any reason or his actual retirement date.
Credited Service will not be interrupted by:
(a) vacation, or approved leave of absence authorized by the Employer of not more
than ninety days in one calendar year;
(b) voluntary or involuntary service in the Armed Forces of the United States in the
time of war;
(c) reelection or reappointment at the end of a term; or
(d) periods of approved leaves of absence during which the Participant incurs a Total
and Permanent Disability within the meaning of Section 3.03, provided that he
recovers from a Total and Permanent Disability and is reemployed by the
Employer as required under Section 3.03(a)(7) or (b)(4).
For benefit purposes, no Participant will receive any credit for any period of inactive
employrnent. For vesting purposes, the Employee who has one or more breaks in
employment will receive credit only from his most recent date of reemployment.
Effective December 12, 1994, notwithstanding anything in the Plan to the contrary,
contributions, benefits, and service credit with respect to qualified military service shall
be provided in accordance with Section 414(u) of the Code.
1.12 Deputv Comptroller — The duly commissioned deputy comptroller of the City.
1.13 Earnings - The total salary, wages, or remuneration paid to the Participant by the
Employer during any period of 12 consecutive months. Effective as of January l, 1998,
the term "Earnings" shall also include any elective deferral (within the meaning of Code
Section 402(g)(3)) and any amounts that axe deferred by the Employer at the election of
the Employee that are not included in the Employee's gross income pursuant to Code :
Section 125 or 457. Effective January 1, 2001, Earnings shall also include elective
amounts that are not includable in the Employee's gross income by reason of Code
Section 132(�(4).
The Participant's Earnings taken into account for purposes of the Plan shall be limited to
such amount as in effect pursuant to Code Section 401(a)(17)(A) for the Plan Year, as
adjusted under Code Section 401(a)(17)(B).
1.14 Effective Date - Januazy 1, 1997:
1.15 Employee - Any employee, officer, appointee or electee of the Commission as now
constituted or hereafter constituted, and any employee, officer, appointee or electee under
any official of the City as now constituted or hereafter constituted, who is elected by the
vote of the electorate, but excluding:
(a) employees of the University Hospital;
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(b) the Recorder;
(c) the Assistant Recorder;
(d) employees of the Sinking Fund Commission; and
(e) other officers elected by vote of the electorate.
1.16 Employer or Countv - Augusta, Georgia, successor by consolidation to The City Council
of Augusta and Richmond County, created by 1995 Ga. Laws p. 3648, as amended.
1.17 Fund - The Fund trust fund created in accordance with the Plan and Trust.
1.18 Interest - Interest credited on Participant Contributions from the January 1 next following '
the date of which such Contributions are made to the earlier of (a) the date of the
Participant's termination of employment for any reason and (b) the Participant's Normal
Retirement Date, with such interest compounded annually at the rate of 5% per annum.
1.19 Joint Annuitant - The person designated by the Participant to receive payments after the
death of the Participant as provided in accordance with Section 3.
1.20 Mayor — The mayor of Augusta, Georgia.
1.21 Participant - An Employee who had become eligible to participate in the Plan as provided
in Section 2.
1.22 Pa - The Beneficiary or Joint Annuitant designated by the Participant in accordance
with Section 1.04 or 1.19 above to receive benefits under the Plan after his death.
1.23 Pension Fund Investment Committee — The pension fund investment committee '
consisting of the members of the Augusta-Richmond County Commission, which
committee shall invest the Fund in accordance with Section 7.05.
1.24 Plan - The City of Augusta 1949 General Retirement Fund as contained herein, all
amendments thereto which may hereafter be made, and any existing acts of the General
Assembly of Georgia, or ordinances adopted under the Home Rule provisions of Georgia
law, pertaining to the City of Augusta 1949 General Retirement Fund. The Plan shall '
include the Trust as hereinafter defined.
1.25 Plan Year - The twelve month period ending December 31 of each year.
1.26 Secretarv — The Mayor acting in his capacity as secretary of the Committee.
1.27 Total and Permanent Disabilitv - The Commi'ssion shall determine whether a Participant
shall be considered Totally and Permanently Disabled and the Commission shall declare
in its findings whether or not such disability is permanent and total. The Commission
shall base its determination as to whether a Participant is Totally and Permanently
Disabled on whether the Participant is not able, on account of disability received in the
discharge of his employment duties. ,
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Upon a Participant's application to the Comptroller stating that he is Totally and
Permanently Disabled, the chief executive of Augusta or other official as designated by
the Augusta-Richmond County Commission shall immediately designate a physician to
examine the applicant and no such retirement shall be allowed under Section 3.03 unless
the physician so appointed files with the Mayor as the chief executive of Augusta such
physician's affidavit that he has examined the applicant and found him totally and
permanently incapable of pursuing any gainful occupation; provided, that the applicant if
aggrieved by the decision of Augusta's physician may designate a physician on his own
part who together with Augusta's physician shall designate a third physician and the
deci�ion of the majority of said three (3) physicians sha11 be the final decision regarding
whether the Participant has incurred a Total and Permanent Disability recommended to
the Commission for its determination, which shall be final and binding.
Notwithstanding anything in this Section to the contrary, whether a Participant is Totally
and Permanently Disabled shall be subject to the exclusions set forth in Section 3.03.
1.28 Trust A�reement ar Trust - The agreement of trust between the Commission, in its
capacity as the governing body of the Employer and the Commission, in its capacity as
Trustee, which shall govern the continuation and maintenance of the trust fund, and all
amendments thereta
1.29 Trustee - The Commission in its capacity as trustee.
SECTION 2
ELIGIBILITY AND PARTICIPATION
2.01 Eligibility.
Each Participant in the Plan on December 31, 1996 (according to the Plan terms then in
effect) shall continue to be a Participant, and no other Employee is eligible to become a
Participant in this Plan, and no other Employee shall be eligible to participate (because
Ordinance 5399 provides that no Employee hired after February 28, 1987 is eligible to
become a Participant in this Plan).
SECTION 3'
RETIREMENT DATES AND BENEFITS
3.01 Normal Retirement
Normal retirement under the Plan is retirement from the employ of the City on the
Normal Retirement Date. In the event of normal retirement, payment of the retirement
benefit shall be governed by the following provisions of this Section.
A. Normal Retirement Date The Normal Retirement Date of a Participant shall be
the first day of the month coincident with or next following the date he reaches:
(a) Age fifty-five (55) if he is a firefighter or police officer; or
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(b) Age sixty (60) if he is employed in a capacity other than as a
firefighter or police offer and has at least twenty-five (25) years of
Credited Service.
B. Amount of Retirement Benefit: If the Participant retires on his Normal
Retirement Date and such Normal Retirement Date is on or after January 1, 1995,
the Participant shall receive a monthly retirement benefit of an amount equal to
(a) 2.15% of the Participant's Average Earnings multiplied by the number of
months of such Credited Service (up to a limit of 360 months), plus (b) 1.5% of
the Participant's Average Earnings multiplied by the number of months of such
Credited Service in excess of the 360 month limit.
C. 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 Sections 3.12 and 4.02.
3 A2 Earlv Retirement
Early retirement under the Plan is retirement from the employ of the City prior to the
Normal Retirement Date. Early retirement shall be authorized only within five (5) years
of the Participant's Normal Retirement Date, and only if by such time, the Participant has
at least twenty (20) years of Credited Service. In the event of early retirement under
these conditions, payment of the retirement benefit shall be governed by the following
provisions of this Section. Notwithstanding the foregoing, if a Participant receives
special early retirement benefits under Section 3.09 or 3.10, the Participant shall be
ineligible for benefits under Section 3.02.
A. Early Retirement Date: The Early Retirement Date of a Participant shall be the
first day of the month coincident with or immediately following the date he retires
from the employ of the City under the provision of this Section.
B. Amount of Retirement Benefit: A Participant at retirement 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; ar
(2) an immediate monthly retirement commencing on his Early Retirement
Date equal to the benefit determined in Section 3.02-B above, reduced by
.05 % for each complete month by which the Early Retirement Date of a
Participant precedes his Normal Retirement Date.
C. Pavment of Retirement Benefit: The monthly retirement benefit payable in the
event of early retirement shall be payable on the first day of each month. The first
payment shall be made on the optional date elected by the Participant under
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Section 3.02-B above and the last payment shall be the payment due next
preceding his date of death, subject to the provision of Sections 3.12 and 4.02.
3.03 Disability Retirement
A. A Participant may retire under the Plan if he becomes Totally and Permanently
Disabled and the Participant:
(1) has incurred the Total and Permanent Disability as a result of injury or
illness incurred in the performance of his employment duties; or
(2) has incurred the Total and Permanent Disability as a result of injury ar
illness from any cause; provided that the Participant has ten (10) years of
Credited Service at the time of the Total and Permanent Disability.
B. Notwithstanding anything in this Section to the contrary, a Participant shall not be
entitled to receive any disability retirement benefit if the Participant's Disability is
a result of any of the following:
(1) the Participant's willful misconduct, or
(2) the Participant intoxication.
C. Disability Retirement Date: The Disability Retirement Date of a Participant shall
be the first day of the month which coincides with or next follows the date the
Commission approves payment of the disability benefit.
D. Disability Retirement Benefit: The monthly retirement benefit payable to a
Participant on his Disability Retirement Date shall be equal to one half of the
Participant's Average Earnings; provided however, that should such Participanf
receive any Workmen's Compensation while so disabled, such Workmen's
Compensation so received, excluding, medical, doctor, nursing and
hospitalization, shall be subtracted from any pension voucher paid to the
Participant, and he shall receive only the excess of any pension due him after the
subtraction of the amount of Workmen's Compensation received by him, less any
other indebtedness due the City by the Participant. Such retirement shall herein
be referred to as disability retirement and payment of the disability retirement
benefit shall be governed by the following provisions of this Section.
E. Payment of Disability Retirement Benefit: The retirement benefit to which a
Participant is entitled in the event of his Total and Permanent Disability shall be
payable on the first day of each month. the first payment shall be made on the
Participant's Disability Retirement Date and the last payment shall be the
payment due next preceding the earlier of (a) his date of death, subject to the
provisions of Sections 3.12 and 4.02 ar(b) the cessation of his Total and
Permanent Disability prior to his Normal Retirement Date.
F. Termination of Disabilitv Retirement Benefit: The continuance of any Disability
may be inquired into by medical examination, as provided in Section 1.27, upon
the application of any interested party and for good cause shown. If the
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Participant's Disability is discontinued because of the findings of a medical
examination or otherwise, the Commission is hereby authorized to terminate any
retirement payments payable under this Section, to reemploy any rehabilitated
Participant, continue retirement benefits in lieu of reinstatement, or make such
other disposition of the claim for retirement benefits as may be necessary and
proper.
3.04 Delaved Retirement
Delayed retirement under the Plan is retirement from the employ of the City after the
Normal Retirement Date but in no event later than:
(a) Age sixty (60) if he is a firefighter ar police officer; ar
(b) Age seventy (70) if he is employed in a capacity other than as a
firefighter or police offer and has at least twenty-five (25) years of
Credited Service.
Notwithstanding anything to the contrary, the Plan's administrator shall not interpretthis
Section in manner that would violate the Age Discrimination in Employrnent
Amendments of 1986, as amended. In the event of delayed retirement, payment of the
retirement benefit shall be governed by the following provisions of this Section.
B. Dela�ed Retirement Date: The Delayed Retirement Date of a Participant shall be
the first day of the month coincident with or immediately following the date he
actually retires from the employ of the City after his Normal Retirement Date in
accordance with this subsection (A) of this Section.
C. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Delayed Retirement Date shall be an amount
computed in the same manner as for normal retirement in accordance with Section
3.01-B, but based on Credited Service and Average Earnings as of his actual
retirement date; provided, however, such amount shall not be less than the '
monthly benefit the Participant would have received had he retired on His Normal
Retirement Date.
D. Payment of Retirement Benefit; The retirement benefit payable in the event of
delayed retirement shall be payable on the first day of each month. The first
payment shall be made on the Participant's Delayed Retirement Date and the last '
payment shall be the payment due next preceding his date of death, subject to the
provision of Sections 3.12 and 4.02.
3.05 Termination of Employment
A. A Participant who terminates employment with the City before otherwise
becoming eligible far retirement benefits under this Section 3, but after having
completed at least fifteen (15) years of Credited Service and attaining the age of
forly five (45) shall have a right to the "Vested Percentage" of his pension benefit,
as defined in subsection (B) of this Section in lieu of withdrawal of his
Contributions, if any, under Section 5.02(B). Provided that the Participant is alive
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at such date, such benefits will be payable at the Participant's Normal Retirement
Date and in such amount as provided in Section 3.01(B) without reduction, or at
the Participant's Early Retirement Date but subject to such reduction as provided
in Section 3.02(B)(2).
B. For purposes of this Section, "Vested Percentage" shall mean 50% of the
Participant's Accrued Benefit (as determined as of the date of the Participant's
termination of employment) plus an additional 10% of his Accrued Benefit for '
each year of Credited Service in excess of 15 years up to a maximum Vested
Percentage of 100%. Far purposes of this Section, Accrued Benefit shall be
determined as of the Participant's date of terrnination of employment, and shall
otherwise be determined in the same manner as for normal retirement benefits but
reflecting the Participant's Credited Service and Average Earnings determined as
of the date of the Participant's employment termination.
3.06 Cost-of-Living Adjushnent of Benefits: All retirement and disability benefits received
under this Section 3 shall be adjusted annually pursuant to this Section.
A. For purposes of this Section, "Index Ratio" means the ratio attained by dividing
the "Consumer Price Index" (as determined by the Bureau of Labor Statistics of
the United States Department of Labor) for the current calendar year by the
Consumer Price Index for the calendar year immediately preceding the current
calendar year.'
(1) Index Ratio of 1.02 or More — If the Index Ratio is 1.02 or greater, the
retired Participant's monthly retirement benefit will be increased in
accordance with subsection (B) of this Section.
(2) Index Ratio of Between .96 and 1.01 — If the Index Ratio is between .96 ',
and 1.01, the retired Participant's monthly retirement benefit will not be
adjusted pursuant to subsection (B) of this Section, and the Consumer
Price Index for the current year ending on December 31 st shall be replaced
by the Consumer Price Index for the year ending on December 31 st when
the Participant's retirement benefits were last adjusted.
(3) Index Ratio of .95 or Less- If the Index Ratio is .95 or less, the retired
Participant's monthly retirement benefit will be decreased in accordance
with subsection (B) of this Section.
B. On the December 31 st coinciding with or next following the date of the
Participant's date of actual retirement under this Section 3(the "December 31
Following Retirement"), the Consumer Price Index for the year ending on such
December 31 Following Retirement_shall be posted to the retired Participant's
retirement record. Subject to Subsection (A) of this Section, on each anniversary
of the December 31 Following Retirement while the retired Participant is ,
receiving monthly retirement benefits under this Section 3, the monthly retirement ,
benefits shall be adjusted on April 1 of each year by multiplying the amount of ,
the annual retirement benefit received during the previous calendar year by the '
Index Ratio.
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3.07 Required Distribution Rules
The following provisions will be effective beginning as of the first day of the 1989
calendar year:
(a) Payment to the Partici�ant: 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 calendax year in which he
retires, or the later calendar year in which he reaches age 70-1/2.
The Plan will pay the Accrued Benefit over a period not extending beyond the
Participant's lifetime or life expectancy, or over a period not extending beyond
the joint and last survivor life expectancies of the Participant and his Spouse or
other beneficiary, using age(s) attained as of the end of the calendar year in which
" the Participant retires (or reaches age 70-1/2 if later), and the Accrued Benefit as
of that date. However, if the beneficiary of a joint an survivor annuity form of
payment is not the Spouse and is more than 10 years younger than the Participant,
payments to the beneficiary will not exceed the applicable percentage of the
Participant's benefit payments required by the incidental benefit rule. The
Commission will not recalculate the life expectancy(s).
(b) Participant's Death After Benefits Be�in: If the Participant dies after his
payments have begun in a survivor annuity form, the Commission will pay the
survivor benefits at least as rapidly as under the form of annuity in effect before
his death.
(c) Participant's Death Before Benefits Be�: If the Participant dies before his
payments have begun, the Commission will pay his entire Accrued Benefit no
later than December 31 of the calendar year which contains the fifth anniversary
of his death. However, this five-year rule will not apply if the primary beneficiary
is an individual and circumstances permit the Commission to use the exception
described below.
(1) Surviving Spouse as Primary Beneficiary: If the surviving Spouse is the
beneficiary, the Commission will begin payrnents not later than the end of
the calendar year during which the Participant would have reached age 70-
1/2, and will continue payments over a period not extending beyond the
Spouse's life expectancy, using age attained as of that date and not
recalculated.
(2) Non-S�ouse Primary Beneficiarv: If the beneficiary is an individual other
than the Spouse, the Commission will begin payments not later than the
last day of the calendar year following the year in which the Participant's
death occurs, and will continue payments over a period not extending
beyond the beneficiary's life, or life expectancy determined as of that date
and not recalculated. If the beneficiary dies before receiving 120
payments under the ten years certain and life annuity described in Section
5.02, the Commission will continue to use the primary beneficiary's life
11
♦
i
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 there is any discrepancy between this Section and Code Section 401(a) (9),
that Code Section will prevail. With respect to distributions under the Plan on or
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.
3.08 Code Section 415 Limit
In no event will be annual benefits payable to any Participant exceed the limitations
contained in Code Section 415.
A. Limitation on Benefits The remainder 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 adjushnents 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
Labor shall prescribe, and payable in the form of a straight life annuity. A
limitation as adjusted under Section 415(d) will apply to limitation years
ending with or within the calendar year for which the adjustment applies.
(ii) Maximum permissible benefit: for purposes of this Section 3.08, 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 3.08(b)(ii)
and, if applicable; in paragraphs (b) or (c) of this Section 3.08(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 numerator 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.
12
� .
r
(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
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 1.16 of the Plan and (ii) the
actuarial equivalent (at such age) of the defined benefit dallar
limitation computed using a 5 percent interest rate and the
applicable mortality table as defined in Section 1.16 of the Plan.
Any decrease in the defined benefit dollar limitation determined in
accordance with this Section 3.08(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 deerement 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
3.08(B)(ii)(a), if required). The actuarial equivalent of 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 1.16 of the Plan and (ii) the actua�ial equivalent (at such
age) of the defined benefit dollar limitation computed using a 5
percent interest rate assumption and the applicable mortality table
as defined in Section 1.16 of the Plan. For these purposes,
mortality between age 65 and the age at which benefits commence
shall be ignored.
C. Notwithstanding anything in this Section 3.08 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, 2001.
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 City shall, to the
extent required by the Act and in accordance with the Code, apply the limitations
contained in Section Code 415, as in effect at the time the distribution
13
�
� � �� �
commenced; subject to the disregard of Section 415(e) for distributions occurring
after January l, 2000.
E. In accordance with Code Section 415(b)(10), notwithstanding anything in this
Section 3.08 to the contrary, for purposes of Employees who became Participants
before January l, 1990, the benefit limitations contained in this Section 3.08 sha11
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). •
3.09 Enhanced Early Retirement for 1996.
Participants who have attained, or who will have attained, the age of 50 on or before
December 31, 1996, and who have completed 5 years of Credited Service as of July 1,
1996, and who are employed by Augusta on September 3, 1996, may elect to receive
retirement benefits under this Section. Such election must be made on a form designated
by Augusta between October 1, 1996 and 4:00 p.m. on December 23, 1996. Any
Participant electing to retire early pursuant to this Section shall have unti14:00 p.m. on
the seventh (7th) day following such election to revoke same.
A. Enhanced Early Retirement Date: The Enhanced Early Retirement Date of a
Participant shall be the first day of the month immediately following the date he
retires from the employ of the City under the provisions of this Section. .
B. Amount of Retirement Benefit: The monthly retirement benefit payable to a
Participant who retires on his Enhanced Early Retirement Date shall be an amount
equal to 2.15% of his Average Earnings for the last three years of his Credited
Service, multiplied by the total number of years of Credited Service, plus an
additional ten (10) years of Credited Service to be added to the years of Credited
Service for purposes of computing the amount of the retirement benefit, up to 30
years plus 1.5% of his Average Earnings multiplied by the number of years of
Credited Service in excess of thirty (30) years, up to a maximum of one hundred
(100) per centum of average Earnings for the Participant's high three (3) years of
Earnings, any contrary provision of this Plan notwithstanding. The amount of the
monthly enhanced retirement benefit shall not be reduced for any month or time
period by which the Early Retirement Date of a Participant precedes his Normal
Retirement Date, notwithstanding any other provision of this Plan to the contrary.
C. Prerequisite for Electing Early Retirement: Any Participant`electing Enhanced
Early Retirement shall be required to execute a covenant not to sue in favor of
Richmond County, Georgia and Augusta, Georgia and their officials, agents, and
employees for any and all claims arising out of such employee's employment by
Richmond County, Georgia and/or Augusta, Georgia, and agreeing not to seek or
accept any further employment by Augusta, or its constitutional and elected
officials. This provision shall not be construed as prohibiting any such person .
from seeking any elective position by the State of Georgia or Augusta.
14
3.10 Special Unreduced Earl�Retirement.
If a Participant with at least twenty (20) years of Credited Service is permanently '
separated from the service involuntarily by action of the Commission without any fault
on the Participant's part, as determined by the Commission in its sole discretion, the
Participant may elect to collect Plan benefits under this Section in lieu of any other '
Section of this Plan; provided, however, no Participant shall draw any benefits under this
Section, and such benefits shall be forfeited, if the Participant is offered another position
with Augusta with no reduction in Earnings.
(1) Special Retirement Date. The Special Retirement Date of a Participant
shall be the first day of the month which coincides with or next follows the ,
date the Participant elects to retire under the provision of this Section.
(2) Amount of Special Unreduced Retirement Benefit. A Participant at
retirement under this Section shall receive a monthly retirement benefit,
commencing on his Special Retirement Date, provided he is then alive,
equal to the amount computed in the same manner as for normal
retirement in accordance with Section 3.01-B, but based on Credited
Service and Earnings as of the Special Retirement Date.
(3) Payment of Special Retirement Benefit. The monthly retirement benefit '
payable in the event of special retirement shall be payable on the first day
of each month. 'The first payrnent shall be made on the Special Retirement
Date and the last payment shall be the payment due next preceding his '
date of death, subject to the provision of Sections 3.12 or 4.02, '
3.11 Rollover Distributions
Except where otherwise provided, Section 3.11 shall apply to benefits payable on or after
January 1, 1993, but only to the extent required by the plan qualification rules of Section ,
401(a) 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 City, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by the
Distributee in a Direct Rollover.
B. The special capitalized terms used only in this Section 3.11 shall have the
meanings specified below: '
"Direct Rollover" means a payrnent 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
15
. , •
domestic relations order, as defined in Section 414(p) of the Code, are
Distributees with regard to the interest of the spouse or former spouse.
"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 surviving spouse, an
Eligible Retirement Plan shall mean only an individual retirement account or
individual retirement annuity. Effective as of January l, 2002, the definition of
"Eligible Retirement Plan" shail 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 a surviving spouse, or to a spouse or former spouse
who is the alternate payee under a qualified domestic relations order, as defined in
Section 414(p) of the Code.
'Bligible Rollover Distribution" means any distribution of all or any portion of the
Accrued Benefit to the credit of the Distributee, except that an Eligible Rollover
Distribution does not include: (1) any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) 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 distribution to the extent such
distribution is required under Section 401(a)(9) of the Code; and (3) the portion of
any distribution that is not includible in gross income. Effective as of January 1,
2002, notwithstanding the foregoing, any amount that is distributed on account of
hardship shall not constitute an Eligible Rollover Distribution.
3.12 Normal Forms of Benefits for Married Participants.
The provisions of this Section 3.12 shall apply to Participants who have completed at
least one hour of Credited Service on or after August 23, 1984 (with special definitions
set forth herein for terms that' begin with initial capital letters and are not elsewhere
defined):
A. Unless an optional form of benefit has been selected pursuant to Section 5 within
the applicable election period pursuant to a Qualified Election, if a Participant
dies after the Participant's Early Retirement Date, the Participant's Eligible
Spouse, if any, will receive the same benefit that would be payable if the
Participant had retired with an immediate Qualified Joint and Survivor Annuity
on the day before the Participant's date of death. The Eligible Spouse may elect
to commence payment under such death benefit within a reasonable period after
the Participant's death. The Actuarial Equivalent of a Participant's Accrued
Benefits which commence later than the date on which payments would have
16
been made to the Eligible Spouse under a Qualified Joint and Survivor Annuity in
accordance with this provision shall be adjusted to reflect the delayed payment.
B. Unless the Qualified Preretirement Survivor Annuity has been waived within the
election period pursuant to a Qualified Election, if a Participant dies on or before
the Early Retirement Date, the Participant's Eligible Spouse, if any, will receive
the same benefit that would be payable if the Participant had:
(i) separated from service on the date of death (or date of separation of
service, if earlier),
(ii) survived to the Early Retirement Date,
(iii) retired with an immediate Qualified Joint and Survivor Annuity at the
Early Retirement Date, and
(iv) died on the day after the Early Retirement Date.
Notwithstanding any provision herein to the contrary, any Participant
whose retirement date is after December 31, 1992 may not waive a
Qualified Preretirement Survivor Annuity.
C. For purposes of this Section 3.12, Accrued Benefits under this Section 3.12 will
be payable to a surviving Eligible Spouse commencing on the later of: (i) the date
on which the Participant would have reached Early Retirement Date, or (ii) the
date the Participant dies. Benefits commencing after the Early Retirement Date
will �e the Actuarial Equivalent of the Accrued Benefits to which the Eligible
Spouse would have been entitled if Accrued Benefits had commenced at the Early
Retirement Date under an immediate Qualified Joint and Survivor Annuity in
accordance with Section 3.12(B).
D. A former Participant who has not performed any service after August 22 1984
but who had completed 10 years of Credited Service before terminating service
and has reached the Early Retirement Date may elect Qualified Preretirement
Survivor Annuity protection by filing a written election with the City. Such
election shall remain in effect until revoked by the Participant.
E. A Participant's retirement benefit shall not be reduced to ta.ke account of Survivor
Annuity protection which is in effect during his or her service and before the first
date which could have been such Participant's Early Retirement Date. However,
with respect to any other period before the Participant's Normal Retirement Date
but either on or after the Participant's termination of service or the Participant's
Early Retirement Date in which Qualified Preretirement Survivor Annuity '
protection is in effect, such Participant's Accrued Benefit shall be reduced
pursuant to Section 3.02(b)(2). In applying the formula in this Section 3.12(E), the
period for which Qualified Preretirement Survivor Annuity protection is in effect
shall be computed to years and full months, and a Participant's Retirement Benefit
shall be reduced proportionately for each month. Notwithstanding the foregoing,
17
_ ___ _
however, reductions shall not be made to Accrued Benefits for Participants who
retire on or after December 31, 1992 for any period in which Qualified
Preretirement Survivor Annuity Protection is in effect.
F. The Employer shall provide each Participant a written explanation of: (1) the
terms and conditions of a Qualified Preretirement Survivor Annuity; (2) the
Participant's right to make and the effect of an election to waive the Qualified
Preretirement Survivor Annuity; (3) the rights of a Participant's Eligible Spouse;
and (4) the right to make, and the effect of, a revocation of a previous election to
waive the Qualified Preretirement Survivor Annuity. Such notice shall be
provided within the applicable period with respect to such Participant as defined
in Code Section 417(a)(3)(B). A Participant may elect (with spousal consent) to
waive the requirement that the written explanation be provided at least 30 days
prior to the Annuity Starting Date if the distribution commences more than seven
days after such explanation is provided.
G. Certain Definitions
(i) "Annuity Starting Date" means the Participant's date of �
retirement on either the Normal Retirement Date, Early
Retirement Date, or Delayed Retirement Date, as the case may
be.
(ii) "Eligible Spouse" means the spouse or surviving spouse of a
Participant, provided that: (I) a former spouse will be treated as
the Eligible Spouse and a current spouse will not be treated as
the Eligible Spouse to the extent provided under a qualified
domestic relations order as described in Section 414(p) of the
Code, and (II) Accrued Benefits will not be payable to the
Surviving Spouse of the Participant unless the Participant and
such spouse had been married throughout the one-year period
ending on the earlier of the Annuity Starting Date or the date of
the Participant's death.
(iii) "Qualified Election" means a waiver of a Qualified Joint and
Survivor Annuity or a Qualified Preretirement Survivor
Annuity provided under this Section 3.12. Any waiver of a
Qualified Joint and Survivor Annuity or a Qualified
Preretirement Survivor Annuity shall not be effective unless:
(a) the Participant's Eligible Spouse consents in writing to the
election; (b) the election designates a specific alternative
Beneficiary, including any class of beneficiaries or any
contingent beneficiaries, which may not be changed without
spousal consent (or the Eligible Spouse expressly permits
designations by the Participant without any further spousal
consent; (c) the Eligible Spouse's consent acknowledges the
effect of the election; (d) the Eligible Spouse's consent is
witnessed by a Plan representative or notary public; and (e) if
18
the election is to waive the Qualified Preretirement Survi�or
Annuity provided under this Section 3.12, the Participant has
either terminated service ar completed service through the
Early Retirement Date. Additionally, a Participant's waiver of
the Qualified Joint and Survivor Annuity will not be effective
unless such waiver designates a form of benefit payment which
may riot be changed without spousal consent (or the Eligible
Spouse expressly permits designations by the Participant
without any further spousal �onsent). If it is established to the
Employer's satisfaction that such written consent may not be
obtained because there is no Eligible Spouse or the Eligible
Spouse cannot be located, a waiver will be deemed a Qualified
election. Any consent by an Eligible Spouse obtained under
this provision (or establishment that the consent of an Eligible
Spouse may not be obtained) shall be effective only with
respect to such Eligible Spouse. A consent that permits
designations by the Participant without any requirement of
further consent by the Eligible Spouse must acknowledge that
the Eligible Spouse has the right to limit consent to a specific
Beneficiary, and a specific form of benefit where applicable, :
and that the Eligible Spouse voluntarily elects to relinquish
either or both of such rights. A revocation of a prior waiver
may be made by a Participant without the consent of the
Eligible Spouse at any time prior to commencement of
benefits. The number of revocations shall not be limited. No
consent obtained under this provision shall be valid unIess the
Participant has received notice as provided in Section 3.12(H),
and Section 3.12(I).
(iv) "Qualified Joint and Survivor Annuity" means an immediate
annuity for the life of the Participant with a survivor annuity
for the life of the Eligible Spouse which is 50 percent of the
amount of the annuity which is payable during the joint lives of :
the Participant and the Eligible Spouse and which is the
actuarial equivalent of a straight life annuity for the life of the
Participant at his or her Normal Retirement Date.
(v) "Qualified Preretirement Survivor Annuity" means the survivor
annuity provided in Section 3.12(B).
(vi) "Survivor Annuity" means a Qualified Joint and Survivor
Annuity or Qualified Pre-retirement Survivor Annuity.
H. The Employer shall provide each Participant no less than 30 days and no more
than 90 days prior to Annuity Starting Date, a written explanation of (1) the
terms and conditions of a Qualified Joint and Survivor Annuity; (2) the
Participant's right to make, and the effect of, an election to waive the Qualified
Joint and Survivor Annuity form of benefit; (3) the rights of a Participant's
19
Eligible Spouse; (4) the rigl�t to make, and the effect of, a revocation of a previous
election to waive the Qualified Joint and Survivor Annuity; and (5) the relative
values of the various optional forms of benefit under the Plan.
(i) Notwithstanding the foregoing, the City, to the extent permitted by
applicable Treasury regulations, may provide the written explanation after
the Annuity Starting Date, in which case the election period shall end on
the 30th day after the date on which such explanation is provided.
(ii) A Participant may elect (with spousal consent) to waive the
requirement that the written explanation be provided at least 30 days prior
to the Annuity Starting Date (or the 30-day election period described
above in subparagraph (a)) if the distribution commences more than seven '
days after such explanation is provided.
(iii) Notwithstanding the foregoing, effective as of January 1, 1997, in
� accordance with Code Sections 417(a)(7)(A) and��417(a)(7)(B), a � �
Participant may elect an Annuity Starting Date which is less than tY�irty
(30) days after the written explanation, as required by Code Section
417(a)(3), is furnished to the Participant and his or her spouse, provided
the following requirements are met: (i) the Employer provides information
to the Participant clearly indicating that the Participant has a right to at
least a 30-day period in which to consider whether to waive the automatic '
form of distribution and consent to another form of distribution; (ii) the
Participant is permitted to revoke an affirmative distribution election at
least until the Annuity Starting Date or, if later, at any time prior to the '
expiration of the seven day period beginning with the day after such
explanation is provided to the Participant; (iii) the Annuity Starting Date
must be a date after the date that the explanation is provided to the
Participant, but may be a date before the date that an affirmative
distribution election is made by the Participant; and (iv) the distribution
must not actually commence before the expiration of the foregoing seven
day period.
I. The Employer sha11 furnish or cause to be furnished to the Participant information
concerning elections under Section 3.12 under procedures developed by the
Employer in accordance with the Code and the regulations. Any election under
Section 3.12 ar any modification or revocation of such election must be made by
the Participant prior to the date that payrnents to the Participant commence
pursuant to the provisions of the Plan; provided, however, that under such rules
and procedures as may be adopted by the Employer and provided the Participant
supplies such additional information as the Employer may request (including '
evidence of the Participant's or his or her Beneficiary's good health), a Participant
may modify or revoke an election, subject to Sections 3.12(H) and 3.12(I), after
the date payments are to commence. ,
3.13 Su�plemental Retirement Benefit: Beginning as of January 6, 1998, Participants who
retired pursuant to Section 3 prior to January 1, 1995 shall receive, in addition to their
20 '
�
monthly retirement benefits, a payment of two thousand dollars ($2;000) per annum until
their death or termination of their participation; provided however, should any court of
competent jurisdiction determine that such supplemental retirement benefits are illegal or
invalid for any reason, this Section shall be repealed immediately upon such order
becoming final.
SECTION 4
DEATH BENEFITS
4.01 Death Prior to Retirement
A. Non-dutv Connected Death
This paragraph shall only apply if any Plan benefits are paid pursuant to Section
3.12. If an Employee who became a Participant on or after March 18, 1985 dies
before retirement, or after retirement, or after retirement without having made the
election provided in Section 6, or in case of the death of the survivor of a
Participant who has made such election and his spouse after his retirement, his
Contributions to the fund, plus interest compounded annually at a rate equal to
that average rate of interest earned on investments of the City's pension fund for
the twelve (12) month period immediately preceding his actual date of retirement
under Section 3, less any retirement allowance paid to him or his spouse, shall be
paid from the Fund on the order of the pension commission to the Beneficiary or
Beneficiaries, if any, named by such Participant.
B. Duty Connected Death
(i) This paragraph shall only apply if any Plan benefits are paid pursuant to
Section 3.12, the Participant has not made an election pursuant to Section
6, and the Participant's widow is not receiving benefits under subsection
' (B)(ii) of this Section. The surviving spouse of any Participant shall be
entitled to a survivor pension, provided that the Participant dies while
employed by the City, and at the time of death, shall have attained at least
age fifty-five (55), with a minimum of ten (10) years of Credited Service.
The amount of the survivor pension shall equal 100% of the pension
calculated under Section 3.01(B). For purposes of calculating the
retirement benefit under Section 3.01(B) to determine the amount of the
. survivor pension, the Participant shall be considered to have retired on his
date of death.
Notwithstanding anything in this Section to the contrary, subject to
Section 3.12, in the event of the death or divorce from the Participant's
designated Beneficiary, the Participant may change the Participant's
designated Beneficiary.
(ii) This paragraph shall only apply if any Plan benefits are paid pursuant to
Section 3.12, the Participant has not made an election pursuant to Section
6, and the widow is not-receiving benefits under subsection (B)(i) of this
Section. The widow of a Participant who is killed in line of duty, as
21
,
hereinafter defined, may elect, in lieu of receiving a refund of pension
contributions under the provisions of the Plan, to receive a pension
computed at 25% of the Participant's monthly salary or wages at the time
of his death, which shall be payable monthly to the widow, until her death
or remarriage, or in the event of her death leaving a child or children of the
Participant surviving her, who have not reached their 18th birthday,
pension shall be continued to be paid for the benefit of such child or
children as long as they remain unmarried and until they reach their 18th
birthday; and if there be no widow living at the time of the death of such
Participant killed is herein defined, but there be a child or children of
Participant living as of date who have not reached their 18th birthday, the
guardian of children may make a similar election as that provided for a
widow and, in the event such election is made, a pension in amount shall
be paid for the benefit of such child or children as long as they remain
unmarried and until they reach their 18th birthday.
As used herein, "killed in line of duty" shall mean killed while actively
performing the prescribed duties of the Participant's job and not resulting from
any misconduct or negligence of such Participant; provided, however, that no
payments shall be made under the provisions of this section until such date as any
monthly benefits provided under the Workmen's Compensation Laws of Georgia
shall have ceased.
4.02 Death After Retirement
If a Participant dies subsequent to his retirement and had not elected an optional form of
payrnent in accordance with Section 6, or had elected to receive a deferred benefit under
Section 3.02-B(1) or Section 3.05-B but such benefit had not commenced, his Beneficiary
shall receive a lump-sum cash amount equal to one-half of the benefits of the deceased '
Employee, under the provisions of this Plan; provided that no benefits shall payable
hereunder if Plan benefits are paid under Section 3.12 ar 4.01.
4.03 Adjusted Benefit
The amount of monthly retirement benefit provided under this Section 4 shall be adjusted
by the cost-of-living adjustment as provided in Section 3.06 upon commencement of such
benefit.
4.04 Designation of Beneficiaries
A. Each Participant shall designate a Beneficiary to receive the benefits, if any,
which may be payable in the event of his death pursuant to the provision of
Section 3 or 4. Such designation shall be made in writing on a form provided by
the Commission and shall be signed and filed with the Commission. The
Participant may change his designation from time to time by filing the proper
form with the Commission, and each change shall revoke all prior designations by
the Participant. In each such designation the Participant may name one or more
primary Beneficiaries and one or more contingent Beneficiaries. If no
Beneficiary designated by the Participant survives him, the Commission may
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direct the payment of such benefits to (a) the spouse of the deceased, if living;
otherwise, to (b) the descendents of the deceased Participant per stirpes or on their
behalf as provided in Section 10.04; or if none, to (c) the legal representative of
the estate of the deceased Participant.
B. In the event of the death of a Beneficiary who survives the Participant and who, at
his or her death, is receiving benefits as described in A immediately above, the
remaining benefits, if any, shall be payable to a person designated by the
Participant to receive the remaining benefits, or, if no person was so designated,
then to a person designated by the Beneficiary of the deceased Participant;
provided, however, that if no person so designated be living upon the occurrence
of such contingency, the remaining benefits, if any, shall be payable to (a) the
spouse of the deceased Participant, if living; otherwise to (b) the descendents of
the deceased Beneficiary per stirpes or on their behalf as provided in Section
10.04; or if none, to (c) the legal representative of the estate of the deceased
Beneficiary, as the Commission in its sole discretion rnay determine.
C. In the event the Commission does not direct the paytnents as specified in A or B
imrnediately above, the Commission may elect to have a court of applicable
jurisdiction determine to whom payments should be made, and shall follow such
instructions as the court may give.
SECTION 5
CONTRIBUTIONS
5.01 Contributions
The City shall contribute sufficient amounts annually to the Fund. The Comptroller shall
certify to the Commission such amounts are necessary to be appropriated each year upon
the basis of the actuarial survey and valuation. City contributions shall be paid to the
Fund and shall be used only for the benefit of the Participants and beneficiaries of the
Plan.
5.02 Participant Contributions
A. Each Participant hired after June 30, 1980 shall contribute to the Fund at each pay
period an amount equal to eight percent (8%) of his Earnings. Contributions by
the Participant shall cease at the earlier of (a) his date of termination of
employment for any reason, and (b) his actual retirement date.
B. Withdrawals of Participant Contributions: Any Employee who became a
Participant on or after March l, 1949 who terminates employrnent before
becoming eligible for retirement in accordance with Section 3 may, upon
receiving approval from the Comptroller, withdraw the total of all of his
Contributions, without interest; provided that if the Participant does not make a
request to withdraw his Contributions within four (4) years of his date of
employment termination, his Contributions shall revert to the Fund and may not
be withdrawn by the Participant.
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SECTION 6
OPTIONAL FORMS OF RETIREMENT INCOME
6.01 Election of Optional Retirement Benefits
An Employee who became a Participant as of March l, 1949 may elect, or may revoke a
previous election and make a new election, at any time 30 days or more prior to his
Normal Retirement Date, Early Retirement Date or Delayed Retirement Date, whichever
is applicable, to have his retirement benefit payable under one of the options hereinafter
set forth in lieu of the retirement benefit he is otherwise entitled to receive under Section
3. The benefit shall be paid in aecordance with the terms of such option elected.
Election of any option under this Section shall be made by the Participant in writing and
shall be subject to approval by the Commission. No optional election is available for
Disability Retirement (Section 3.03).
Notwithstanding anything in this Section to the contrary, unless the Participant files a
written notice of his election of this option with the Comptroller at least three (3) years
before he becomes eligible to retire, he shall be required to pass a physical examination to
the satisfaction of the Commission.
6.02 Descri�tion of Options
The amount of any optional retirement benefit set forth below shall be the Actuarial
Equivalent, as determined by the Commission, of the amount of benefit that would
otherwise be payable to the Participant under the applicable provision of Section 3
without regard to any future cost-of-living adjustments.
Option A- Ten Years Certain and Life Option: An adjusted monthly retirement benefit
payable to the Participant during his lifetime and, in the event of his death within a period
of ten years after his retirement, the same monthly amount shall be payable for the
remainder of such ten year period to his Beneficiary.
Option B- Joint and Last Survivor Option: An adjusted monthly retirement benefit
which shall be payable during the joint lifetime of the Participant and his Joint Annuitant,
with a previously designated percentage (100%, 75%, or 50%) of the benefit amount
continuing after the death of either during the lifetime of the survivor.
The amount of monthly retirement benefit payable under any option selected in
accordance with the provisions of this Section shall be adjusted by the cost-of-living
adjustment as provided in Section 3.06; provided, however, that if payments are to be
made to an estate the commuted value of such payment shall be made in lieu of
continuation of monthly payments. Such commuted value shall be equal to the amount of
the lump-sum value of the remaining monthly payments in the amount of the last monthly
payment, discounted on such actuarial tables as may be adopted by the Commission,
ignoring any future cost-of-living adjustments.
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6.03 Joint Annuitant or Beneficiary
A Participant who elects Option A shall, on a form provided for that purpose, designate
(in accordance with Section 4.04) a person to receive benefiis payable in the event of his
death. Such person(s) shall be the Beneficiary of the Participant. '
A Participant who elects Option B with benefits payable after his death far another
person's lifetime shall, on a form provided for that purpose, designate a person to receive
the benefits which continue to be payable upon the death of the Participant. Such person
shall be the Joint Annuitant of the Participant.
6.04 Cancellation of Election :
The election by a Participant of Option B shall be null and void if either the Participant or .
his designated Joint Annuitant should die before benefits comrnence.
SECTION 7
ADMiNISTRATION OF PLAN
7.01 Administration
A. Powers of the Commission The Commission shall control the administration of
the Plan hereunder, with all powers necessary to enable it properly to carry out its
duties in that respect. Not in limitation, but in amplification of the foregoing, the
Commission shall have the power to construe the Plan and to determine all '
questions that shall arise thereunder, and shall also have all the powers elsewhere
herein conferred upon it. It shall decide all questions relating to the eligibility of ;
Employees to participate in the benefits of the Plan, and shall determine the
benefits to which any Participant, Beneficiary, or Joint Annuitant may be entitled '
under the Plan. The decisions of the Commission upon all matters within the '
scope of its authority shall be final and binding upon all parties to this instrument,
Participants, and their Beneficiaries and Joint Annuitants. ;
B. Records of the Commission All acts and determinatian of the Commission shall
be duly recorded by the Clerk, or under his supervision, and a11 such records,
together with such other documerits as may be necessary for the administration of
the Plan sha11 be preserved in the custody of such Clerk.
C. Exemption from Liability of the Commission. The members of the Commission,
and each of them, shall be free from all liability, joint, and several, for their acts,
omissions and conduct, and for the acts, omissions and conduct of their duly ;
constituted agents, in the administration of the Plan, and the City shall indemnify
and save each of them harmless from the effects and consequences of their acts,
omissions, and conduct in their official capacity, except ta the extent that such
effects and consequences shall result from their own willful misconduct.
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D. Miscellaneous: The Commission shall prepare and distribute to the Employees
information concerning the Plan, at the expense of the City, in such manner as it
shall deem appropriate.
To enable the Commission to perform its functions, the City shall supply full and
timely information of all matters relating to the compensation and length of
service of all Participants, their retirement, death or other cause of termination of
employrnent, and such other pertinent facts as the Commission may require.
The Commission shall be entitled to rely upon all tables, valuations, certificates,
and reports furnished by an actuary, who shall be a member of the American
Academy of Actuaries, or an organization which one or more members is a
member of the American Academy of Actuaries and upon all certificates and
reports made by an accountant selected or approved by the Commission. The
Commission shall be fully protected in respect to any action taken or suffered by
it in good faith in reliance upon the advice or opinion of any actuary, accountant,
or attorney, and all action so taken or suffered shall be conclusive upon each
member of the Commission and upon all persons interested in the Plan.
SECTION 8
TRUST FUND AND TRUSTEES
8.01 Trust Fund
There is created a permanent pension Fund for the benefit of each Participant covered by
this Plan, and shall be kept in a separate account specifically delineated as the Plan's
funds, with a separate, permanent record thereof to be kept by the Comptroller. The
assets of the Fund shall be held and administered by the Commission. The Fund shall
consist of all payments by the County and Participants to the Fund and earnings from
investments. The assets of the Fund shall be valued as of the end of each plan year, and
at any other time required by the Commission, and at the then existing book and market
value. The Fund is hereby declared not to be the property of the Commission orthe City,
and this includes any sum paid in or directed to be paid in by the Commission and it shall
reserve no property in any sum raised or due by virtue of the Plan.
The Comptroller shall maintain a separate and permanent record of the Fund. All
decisions of the Commission in regard to the Fund or any payrnents or withdrawals
therefrom shall be recorded in the minutes of the Commission and also entered on the
permanent record kept by the Commission and such permanent record shall be open to
inspection by any interested person at all regular business hours.
No warrant shall be drawn upon the Fund except as otherwise provided in the Plan.
8A2 Amendment of Trust
The City shall have the right at any time, by an instrument in writing duly executed by
the Cotnmission and to the Trustee, to modify, alter, or amend this Plan and Trust in
whole or in part; provided, however, that the duties, powers, and liability of the Trustee
hereunder shall not be substantially increased without its written consent, and provided
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further, that no such amendment shall have the effect of revesting in the City any part of
the principal or income of the Fund.
8.03 Discontinuance of Trust and Vesting
The City expressly reserves the right to terminate this Plan and Trust Agreement at any
time. Upon termination of the Plan by the City, or complete discontinuance of
Contributions thereunder, having the effect of termination, the rights of each Participant
to benefits accrued to the date of such termination or discontinuance, to the extent then
funded, shall be nonforfeitable. In either case the Commission shall, upon instructions
from the City, continue to administerthe Fund as provided in Section 7. No part of the
Fund shall at any time revert to the City unless all benefits for Participants and their
Payees have been provided.
8.04 Powers of the Commission
The Commission shall have the following power and authority in the administration of
the Fund to be exercised in accordance with and subject to the provisions of Section 7.05
hereof:
The Commission shall control the administration of the Plan hereunder, with all powers
necessary to enable it to properly carry out its duties in that respect. Not in limitation,
bur in amplification of the foregoing, the Commission shall have the power to construe
the Plan and to determine all questions that shall arise thereunder, and shall also have all
the powers elsewhere herein conferred upon it. It shall decide all questions relating to the
eligibility of Employees to participate in the benefits of the Plan, and shall determine the
benefits to which any Participant or beneficiary may be entitled under the Plan. The
decisions of the Commission upon all matters within the scope of this authority shall be
final and binding upon all paxties to this instrument, Participants and their Beneficiaries.
All acts and determinations of the Commission shall be duly recorded by the Clerk, ar
under his supervision and all such records, together with such other documents as may be
necessary for the administration of the Plan, shall be preserved in the custody of such
Clerk.
The Commission shall prepare and distribute to the Employees information concerning
the Plan at the expense of the City, in such manner as it shall deem appropriate.
To enable the Commission to perform its functions, the City shall supply full and timely
information of all matters relating to the compensation and length of service of all
Participants, their retirement, death or other cause of termination of employrnent, and
such other pertinent facts as the Commission may require.
8.05 Investment of Fund
The Comptroller shall be the Trustee of the Fund and shall deposit the same in a bank or
banks, and, pursuant to the direction of the Pension Fund Investment Committee, shall
invest and reinvest, from time to time, any portion thereof not immediately needed for the
payment of pensions, in securities approved by law for the investment of trust funds, as
the Pension Fund Investment Committee shall deem proper, from time to time; provided, �
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however, that the amount of the Fund which may be invested in such securities other than
those specifically approved by law for the investment of trust funds may not exceed fifty
percent (50%) of the total amount of such fund then outstanding; and in addition thereto,
the Pension Fund Investment Committee may invest such funds in bonds and debentures
assumed or guaranteed by any solvent corporation or institution existing under the laws
of the United States of America, or any state thereof, provided such bonds or debentures
are rated at the time of their purchase, by a nationally recognized securities rating service,
as AAA (Aaa), AA (Aa), or A(a) or in lieu thereof, provided 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 , as amended.
The amount of th� Fund which may be invested in the bonds and debentures of anyone
corporation may not exceed ten percent (10%) of the total amount of the Fund then
outstanding.
Withdrawals from the Fund for investment purposes shall only be made by vouchers
signed by the Comptroller or Deputy Comptroller and countersigned by the Mayor as
chief executive officer of Augusta-Richmond County. The Comptroller shall maintain a
record of the age, length of service, and contributions of each Participant.
8.0� T�ation
The Commission is hereby authorized to levy a tax from time to time to raise a sufficient
surn to meet the requirements of the Plan for paying into the Fund an amount equal to the
amount contributed by Participants to the Fund; and in the event such amount contributed
by the Participants should be increased to five per centum of Earnings and the five per
centum contributed by the Commission, shall be insuffieient to pay the pensions provided
for in the Plan, then and in that event the Commission shall levy a sufficient tax to meet
all payrnents as required by the Plan, and from time to time to continue to do sa
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, may resign at any time. At such
time as the resignation becomes effective, the Trustee shall render to the County an
account of its administration of the Fund during the period following that covered by its
last annual account, and shall perform all acts necessary to transfer and deliver the assets
of the Fund to its successor.
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8.08 Successor Trustees
In the event of vacancy of one or more individuals in the trusteeship of this Trust
occurring at any time, the Commission shall designate and appoint qualified successor
trustee(s) until such individuals are elected by the electorate.
8.09 Disbursements
Upon written direction (which may be a continuing one) from the Commission as to the
name of any person to whom money is to be paid from the Fund and the amount thereof,
checks shall be drawn by the Trustee in the name of the person designated by the
Commission and deliver such checks in such manner and amounts and at such time as the
Commission shall direct. In the event the Trustee shall deem it necessary to withhold any
distribution pending compliance with legal requirements with respect to probate of wills, ;
appointment of personal representatives, payment of or provision for estate or inheritance
taxes, or for death duties or otherwise, the Trustee shall withhold payment pending
receipt of the instructions from the City Attorney to ma.ke such distribution.
SECTION 9
AMENDMENT AND TERMINATION
9.01 Amendment of the Plan
The City shall have the right at any time pursuant to authorization of the Commission, to
amend any or all of the provisions of the Plan; provided, however, that no such
amendment shall authorize or permit any part of the Fund to be diverted to purposes other
than for the exclusive benefit of Participants and their Payees; and further provided, that
no amendment shall have the effect of revesting in the City any portion of such Fund
except such amounts which remain in the Fund after termination of the Plan and after all
liabilities under the Plan have been satisfied.
9.02 Termination of the Plan
The City expects this Plan to be continued indefinitely but of necessity, reserves the right
to terminate the Plan and its Contributions thereunder at any time by action of the
Commission; provided, however, that should the City terminate the Plan or completely
discontinue Contributions hereunder so as the amount to a Plan termination, the accrued
benefit of each Participant, to the extent then funded, shall become fully vested and
nonforfeitable as the date of termination.
In the event of termination of the Plan and upon receipt of written notice of such
termination, the Commission shall arrange for the Fund to be apportioned and distributed
in accordance with the following procedure:
A. The Commission sha11 determine the date of distribution and asset value of the
Fund to be distributed, taking into account the expenses of distribution.
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B. The Commission shall determine the method of distribution of the asset value --
that is, whether distribution to each Participant or Payee entitled to benefits shall
be by payment in a lump-sum cash amount, the purchase of an annuity from an
insurance company, ar otherwise.
C. The Commission shall apportion the asset value in the priority and manner set
forth below, on the basis that the amount requirec� to provide any given retirement
benefit shall mean the actuarially computed single-sum value of such benefit,
except that if the method of distribution determined under B above involves the
purchase of an insured annuity, the amount required to provide the given '
retirement benefit shall mean the single premium payable for such annuity:
(1) An amount equal to each Participant's Contributions under the Plan with '
interest, less the aggregate amount of any benefit payments previously
made with respect to such Paxticipant, will be determined and such amount
apportioned from the asset value. Such asset value, if insufficient to
provide such amounts in fu11 will be apportioned among such Participants
in proportion to the amounts determined with respect to them.
(2) If there be any asset value remaining after the apportionment under (1)
above, apportionment shall next be made with respect to each retired
Participant receiving a retirement benefit hereunder an such date, each
person receiving a retirement benefit on such date on account of a retired
(but since deceased) Participant, each Participant who has, by such date,
reached his Normal Retirement Date but has not yet retired, in the amount
required to provide such retirement benefit as of the date of termination of '
the Plan, less any apportionment made in (1) above, provided that, if such
remaining asset value be less than the aggregate of such amounts, such
amounts shall be proportionately reduced so that the aggregate of such
reduced amounts will be equal to such asset value.
(3) If there be any asset value remaining after the apportionments under (1) ,
and (2) above, apportionment shall next be made with respect to each
active Participant on such date who has reached his Early Retirement Date
but has not yet retired, in the amount required to provide such retirement
benefit as of the termination date of the Plan, less any apportionment in (1)
above, provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder, such latter amounts shall
be proportionately reduced so that the aggregate of such reduced values
will be equal to such remaining asset value.
(4) If there be any asset value remaining after the apportionments under (1),
(2), and (3) above, apportionment shall nextbe made with respect to each ;
active Participant on such date who has completed at lease 10 years of ,'
Credited Service and each former Participant then entitled to a deferred
benefit under Section 3.OSB hereof who has not, by such date, reached his
Normal Retirement Date, none of whom is entitled to an apportionment
under (2) above, in the amount required to provide the actuarially
determined value of the accrued benefit as of the termination date of the
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Plan, less any apportionment in (1) above; provided that, if such remaining
asset value be less than the aggregate of the amounts apportioned
hereunder, such latter amounts shall be proportionately reduced so that the
aggregate of such reduced values will be equal to such remaining asset
value.
(5) If there be any asset value remaining after apportionments under{1), (2),
(3), and (4) above, apportionment shall lastly be made with respect to each
active Participant on such date who is not entitled to an apportionment
under (2), (3), 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; pravided
that, if such remaining asset value be less than the aggregate of the
amounts apportioned hereunder, such latter amounts shall be
proportionately. reduced so that the aggregate of such reduced values will
be equal to such remaining asset value.
(6) In the event that any asset value remains after the full apportionments
specified in paragraphs C(1), (2), (3), (4) and (5) above, such excess shall
revert to the City.
D. The Commission shall cause to be distributed, in accordance with the manner of
distribution determined under B above, the amounts apportioned under C above.
SECTION 10
MISCELLANEOUS
10.01 Headin�s
The headings and subheadings in this Plan have been inserted for convenience of
reference only and are to be ignored in any construction of the provisions hereof.
10.02 Construction
In the construction of this Plan the masculine shall include the feminine and the singular
the plural in all cases where such meanings would be appropriate.
If any provisions of this Plan, or the applicability thereof to any person or circumstance,
is held invalid, the remainder of this Plan and the applicability thereof and of such
provision to other persons or circumstances shall not be affected thereby.
This Plan shall be construed in accordance with the laws of the State of Georgia.
10.03 Nonalienation
No benefits payable under the Plan will be subject to the claim or legal process of any
creditor of any Participant or beneficiary, and no Farticipant 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
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Section 414 (p), (b) judgments resulting from federal tax assessments, and (c) as
otherwise required by law.
10.04 Benefits Supported Onl�y Fund
Any person having any claim under the Plan will look solely to the assets of the Fund for
satisfaction. In no event will the City, or any of its officers, members of the Commission,
ar agents, be liable in their individual capacities to any person whomsoever, under the
provisions of the Plan.
10.05 Discrimination
The City, through the Commission, shall administer the plan in a uniform and consistent
manner with respect to all Employees and shall not permit discrimination in favor of
officers, supervisory or highly-paid employees.
10.06 Limitation of Liabilitv; Le�al Actions
It is expressly understood and agreed by each Employee who becomes a Participant
hereunder, that except for its or their willful negligence or fraud, neither the City, the
Trustee, nor the Commission shall be in any way subject to any suit or litigation, or to
any legal liability, for any cause or reason whatsoever, in connection with this Plan or its
operation, and each such Participant hereby releases the City, Trustee, Commission, and
all its officers and agents from any and all liability or obligation.
10.07 Claims
Any payment to a Participant, Joint Annuitant or Beneficiary, or to their legal
representatives, in accordance with the provision of this Plan, shall to the extent thereof
be in full satisfaction of all claims hereunder against the Commission, Trustee, and the
City, any of whom may require such Participant, Beneficiary, or legal representative, as a
condition precedent to such payment, to execute a receipt and release therefore in such
form as shall be determined by the Commission.
10.08 Forfeitures
Forfeitures arising from any cause whatsoever under this Plan shall not be applied to
increase tke benefits any Participant would otherwise receive under the Plan at any time
prior to the termination of the Plan or the complete discontinuance of City Contributions
hereunder; forfeitures shall be applied to reduce the City's Contributions under the Plan
in the then current or subsequent years.
10.09 Applications
All applications for retirement or the withdrawal of Contributions shall be made in
writing on forms prescribed by the Comptroller and filed in his office.
All applications for retirement shall be acted upon by the Committee. The Secretary shall
keep a careful record of all Committee proceedings. Upon certification by the Secretary
that a majority of the Committee has determined that the applicant is entitled to
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retirement of a given amount, which decision shall not be unreasonably or unlawfully
made, and subject to the procedure regarding disability applications described in Section
3.03, the Comptroller shall include his name on the pension list and shall draw monthly .
vouchers for the payment of his retirement benefits. The Augusta-Richmond County
Commission may adopt further reasonable rules and regulations for the purpose of
carrying outthe purposes of this Section.
10.10 Effect of Extension of the Federal Social Securitv Act
If the Federal Social Security Act is extended to include municipal employees, the
Commission shall have power to reduce pro tanto the Contributions of Participants and
the amounts of the retirement benefits to which they may become entitled under the Plan;
provided that no reduction shall be made in the amount of the retirement benefits paid to
any such Participant already retired prior to the effective date that the Federal Social
Security Act is extended to include municipal employees.
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_ a _ _ r___ . __
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'�'HJW DRAFT
IN WITNESS WHEREOF, the County ha.s caused this amended Plan to be duly executed
as of the ��'� day of �.�„�.a.�,, 2002, but effective as of January 1, 199'7.
AUGUSTA-RICHMOND COUNTY
COMILIISSION, AS SUCCESSOR TO TI-�
ATTES : RI DUNTY BOARD OF
S 5, AS EMPLOYER
� B y'
� � M�yo
Clerk
AUGUSTA-RICHMOND COUNTY
COMIVIISSION, AS SUCCESSOR TO TI�
RIC ND COUNTY BOARD OF
C I RS, AS TRUSTEE
��
Ma.yor
This Ordinance sha11 be effective as of Januaty l, 1997, All ordinances and parts of Ordinances
in conflict with the provisions of this Ordinance are hereby repealed.
APPROVED AND ENACTED by the Augusta-Richmond County Commission, on the
�� da.y of February, 2002. .
Mayor
AT ST:
Cler
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WDG200580.9 .
DRAFT 02/28/02 00480.00002