HomeMy WebLinkAboutSERVICE CREDIT PURCHASE ADDENDUMTO GMEBS PLAN 1 ADOPTION AGREEMENT COMPLETED BY AUGUSTA GASERVICE CREDIT PURCHASE
ADDENDUM TO THE
GEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM
DEFINED BENEFIT RETIREMENT PLAN
ADOPTION AGREEMENT
This is an Addendum to the Augusta GMEBS Plan I Adoption Agreement
completed by Augusta, Georgia. It modifies the Adoption Agreement to
provide for service credit purchases for eligible Participants in the Retirement
Plan for Certain Employees of Augusta, Georgia (Augusta GMEBS Plan I), in
accordance with and subject to the following requirements:
(1) Service Credit Purchase; Eligibility Requirements.
(a) Prior Service With Augusta - Subject to any conditions specified
in Section 13(B) or 13(C) of the Adoption Agreement and in this
Service Credit Purchase Addendum, Participants in Augusta
GMEBS Plan I (this Plan) who are actively employed on or after
January 1, 2008, and who have any period of full -time service
with Augusta, Georgia prior to January 1, 2008 (as defined in the
Augusta personnel policies and procedures), provided the Service
is not otherwise creditable under this Plan or any other Augusta
retirement plan (i.e., the Participant has not received and has no
potential to receive a retirement benefit or distribution under any
Augusta retirement plan, including this Plan, that is attributable
to such service or attributable to employer contributions made
during such service), and provided the other requirements of this
Service Credit Purchase Addendum are satisfied, may purchase
credit under this Plan for such service. The purchase of prior
service credit is permitted but not required under this Plan.
Participants may purchase all of their prior service that is eligible
for purchase, or only a portion of such service on a pro rata basis.
Such purchases will be allowed to the extent permitted by law,
subject to any conditions, proofs, or acceptance that the Augusta
Human Resources Director and GMEBS deem appropriate.
Prior Service With ARCPC - Subject to any conditions specified
in Section 13(B) or 13(C) of the Adoption Agreement and in this
Service Credit Purchase Addendum, Participants in this Plan
who: 1) were employed with the Augusta - Richmond County
Planning Commission ( "ARCPC ") on or before October 31, 2011,
2) who become Eligible Regular Employees under this Plan on or
after November 1, 2011; and 3) have any period of full-time
(b)
Augusta GMEBS Plan 1
Service Credit Purchase Addendum (Adopted March 6, 2012)
(2) Use of Purchased Service Credit. Subject to any conditions or
limitations provided in this Addendum, service credit purchased
hereunder will be counted as Credited Service for purposes of (check all
that apply):
(3)
service with the ARCPC prior to November 1, 2011 which is not
otherwise creditable under this Plan (see General Addendum
Section 14(oo)), Augusta GMEBS Plan II, or any other Augusta
retirement plan (i.e., the Participant has not received and has no
potential to receive a retirement benefit or distribution under any
Augusta retirement plan, including this Plan, that is attributable
to such service or attributable to employer contributions made
during such service), may purchase credit under this Plan for
such service, provided the other requirements of this Service
Credit Purchase Addendum are satisfied. The purchase of prior
service credit is permitted but not required under this Plan.
Participants may purchase all of their prior service that is eligible
for purchase, or only a portion of such service on a pro rata basis.
Such purchases will be allowed to the extent permitted by law,
subject to any conditions, proofs, or acceptance that the Augusta
Human Resources Director and GMEBS deem appropriate.
computing the amount of benefits payable under the Plan;
® meeting the minimum service requirements for vesting under the
Plan;
® meeting the minimum service requirements for benefit eligibility
under the Plan.
Application to Purchase Service Credit. A Participant who meets the
eligibility requirements specified in Section (1) above and who wishes to
purchase eligible service credit as described in Section (1) above may
apply for such purchase by completing and submitting to the Augusta
Human Resources Director an application form provided for that
purpose. Participants will be responsible for providing the Augusta
Human Resources Director with any information or documentation that
the Augusta Human Resources Director deems necessary to establish
that the Participant's service is eligible for purchase under Section (1)
above.
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Augusta GMEBS Plan 1
Service Credit Purchase Addendum (Adopted March 6, 2012)
(4) Annual Window Period for Application: July 1— August 31. In order to
purchase service credit, eligible Participants must submit the service
credit purchase application within the two -month period beginning each
July 1 and ending August 31. If a Participant does not submit a
completed application to purchase service credit within the designated
window period, the Participant will not be permitted to purchase
service credit until the next year's window period for application. As a
precondition for approval of his or her application, the Participant will
be responsible for providing the Augusta Human Resources Director
with any additional information or documentation that the Augusta
Human Resources Director deems necessary to establish that the
Participant's service is eligible for purchase under Section (1) above.
Notwithstanding any provision herein to the contrary, no Participant
may apply for or purchase prior service credit after his or her
termination of employment.
Review by Augusta Human Resources Director. The Augusta Human
Resources Director will certify on the Participant's application the
number of years and months of prior service that are eligible for
purchase under Section (1) above.
(6) Fee for Cost Study. As a precondition for approval of the application to
purchase service credit, and prior to the commencement of any cost
study, Participants may be required by the Employer to pay all or a
portion of the cost study fee(s) (to be set by Augusta, Georgia)
associated with determining the cost to purchase the Participant's
eligible service credit. This fee must be submitted with the Participant's
application before the end of the annual window period referred to in
Section (4) above.
Actuarial Study to Determine Cost of Purchase. If the Participant's
application to purchase prior service credit (and the cost study fee) are
submitted within the two -month window period for application, and if
the Participant's application to purchase is approved by the Augusta
Human Resources Director, a cost study will be undertaken as soon as
reasonably practicable after the close of the application window period
to determine the actuarial cost relating to the Participant's prior service
that is eligible for purchase.
(8) Lump Sum Payment Required Within 120 Days After Receipt of Cost
Study Results. Upon completion of the cost study, the Augusta Human
Resources Director will notify the Participant of the lump sum amount
(5)
(7)
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Augusta GMEBS Plan 1
Service Credit Purchase Addendum (Adopted March 6, 2012)
required to purchase prior service credit, as reflected in the cost study.
Within 120 days after receipt of said notice, the Participant shall remit
said lump sum amount in the form and manner required by Sections
(9) -(11) below, the Augusta Human Resources Director, and GMEBS.
The Participant may remit less than the full lump amount necessary to
purchase all of the prior service credit which is eligible for purchase, in
which case the percentage of service credit awarded will be equal to the
percentage of the full amount remitted. The Augusta Human Resources
Director shall have the authority to extend the 120- day time period for
payment of lump sum amounts required to purchase service credit if,
for reasons outside the control of the Participant, payment cannot be
made within the 120 -day period. However, the time limit for payment
will not be extended any later than the start of the next annual two -
month window period for application (see Section (4) above).
Method of Payment. To the extent permitted by the Internal Revenue
Code and regulations issued thereunder, the lump sum amount referred
to in Section (8) above may be paid via one or more of the following
sources: (1) a direct trustee -to- trustee transfer from a 401(a) qualified
retirement plan, governmental 457(b) deferred compensation plan or a
403(b) tax sheltered annuity; (2) a qualified rollover from a
governmental 457(b) plan, 403(b) tax- sheltered annuity plan, 401(a)
qualified plan, 403(a) annuity plan, or a 408(a) or 408(b) individual
retirement account or annuity (traditional IRA); or (3) a lump sum
contribution of after -tax funds. Participants shall be solely responsible
for effecting the payment referred to herein. Participants will not be
permitted to purchase credit via payroll deduction.
(10) Limitation on Amount of Lump Sum Payment. If the lump sum
amount referred to in Section (8) is paid via any method other than as
described under Section (9)(1) or (9)(2) above, then the Participant shall
not be permitted to contribute to the Plan in any calendar year an
amount which exceeds any applicable limit specified in Internal
Revenue Code Section 415.
(
(11) IRC 415, Other Limitations. Notwithstanding any other provision of
the Adoption Agreement or this Addendum to the contrary, the Plan
will not accept and shall return without interest any contribution or
portion of a contribution made to purchase service credit if such
contribution would result in a violation of the applicable limitations
established under Internal Revenue Code Section 415(b), (c), or (n) or
any other provision of law or the Plan, or if it is later determined that
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Augusta GMEBS Plan 1
Service Credit Purchase Addendum (Adopted March 6, 2012)
the Participant's prior service is not eligible for purchase, and any prior
service credit attributable to said contribution or portion of a
contribution will be forfeited.
(12) Return of Contributions. Contributions made to purchase prior service
credit shall be used to fund retirement and death benefits payable under
the Plan relating to such credit. Contributions shall not otherwise be
refundable to the Participant or any other person, except as otherwise
provided in this Section (12) or in Section 13.06 of the Master Plan
Document (concerning failure to exhaust). Participants (check one):
❑ will not be permitted to withdraw contributions made to purchase
prior service credit upon termination of employment, unless they
are not vested upon termination.
• will be permitted to withdraw contributions made to purchase
service credit upon termination of employment, subject to the
provisions of Section 13.03(c) of the Master Plan Document
concerning the effect of withdrawal. For purposes of determining
the amount of any refund of contributions made to purchase
service credit, said contributions shall be credited with interest
thereon, subject to any limitations on the crediting of interest in
Section 13.03(c) of the Master Plan Document.
Note: Partial withdrawal of employee contributions is not
permitted. If the Participant withdraws contributions made to
purchase service credit, the Participant will forfeit any and all
service credit and /or benefits attributable to such purchase for all
purposes.
(13) Repayment Upon Reemployment. If the Participant returns to
employment with the Employer after having withdrawn his
contributions made to purchase prior service credit, the Participant
(check one):
❑ not applicable (withdrawal not permitted).
❑ will not be permitted to re- purchase said service credit upon
reemployment.
❑ will be permitted to re- purchase said service credit upon
reemployment, based on the actuarial cost of such service
credit, taking into account the additional actuarial cost of
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Augusta GMEBS Plan I
Service Credit Purchase Addendum (Adopted March 6, 2012)
any benefit enhancements adopted prior to reemployment
pursuant to Section (14) below, provided that the
Participant makes application for such re- purchase within
[insert time limit] after reemployment and provided the
Participant effects payment for such re- purchase in
accordance with and subject to the provisions of this
Addendum within [insert time limit] after the application is
approved.
will be permitted to re- purchase said service credit upon
reemployment, subject to the following conditions for
repayment (must describe other repayment method): The
Participant must repay to the Plan, within six (6) months
after his reemployment date (or prior to his termination
date following reemployment, if earlier), in a lump sum any
and all amounts previously withdrawn or refunded, plus
interest calculated at the rate of 8% per annum. Partial
repayment is not permitted. In no event will the time the
Participant was absent be taken into account in calculating
the amount of anv benefit payable under this Plan. Said
Participants will also be required to satisfy the break in
service requirements of Section 4.06 of the Master Plan, if
applicable.
(14) Definition of Actuarial Cost. The cost to purchase qualifying prior
service credit shall be determined based upon the actuarial cost of said
prior service credit. In applying the provisions of the Adoption
Agreement and this Service Credit Purchase Addendum, the term
" actuarial cost of prior service credit" means (check one):
❑ the actuarial accrued liability relating to such prior service as
determined by the GMEBS actuary and calculated using the
actuarial assumptions and methods employed in performing
GMEBS member plan valuations.
Other (must specify other method of determining actuarial cost
for this purpose): the present value of projected additional
benefits relating to such prior service credit, as determined based
on factors supplied by the GMEBS actuary and calculated using
the actuarial assumptions and methods employed in performing
the Employer's annual plan valuation.
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Augusta GMEBS Plan 1
Service Credit Purchase Addendum (Adopted March 6, 2012)
(15) Additional Payment for Future Benefit Enhancements. Following
adoption by Augusta, Georgia of a future benefit enhancement (e.g., an
increase in the benefit formula), Participants who have previously
purchased credit for prior service and who wish to be covered by any
such future benefit enhancement under the Plan may be required by
Augusta, Georgia to pay an additional amount equal to the additional
actuarial cost attributable to the benefit enhancement as applied to
service credit which has previously been purchased by the Participant.
The Participant must pay such additional amount necessary to fund
future benefit enhancements within 120 days after the Participant
receives notice of the required payment from Augusta, Georgia and
prior to termination of employment. If the required amount is not paid
by the Participant in accordance with this provision, the benefit
enhancement will not apply with respect to any period of service credit
previously purchased by the Participant.
The terms of the foregoing Service Credit Purchase Addendum to the
Adoption Agree Ile t are app v d by the Augyta, Georgia Commission
Council this ii / day of 1 20
Attest:
'lCl1 M0j
ttorney
Augusta GMEBS Plan I
Service Credit Purchase Addendum (Adopted March 6, 2012)
hey
3/1/0,
-7—
AUGUSTA, GEORGIA
C(Zi-4('
Mayor
The terms of the foregoing Service Credit Purchase Addendum are
approved by the Board of Trustees of the Georgia Municipal Employees
Benefit System.
IN WITNESS WHEREOF, the Board of Trustees of the Georgia
Municipal Employees Benefit System has caused its Seal and ignatures of
its duly authorized officers to be affixed this /f day of
(SEAL)
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Augusta GMEBS Plan I
Service Credit Purchase Addendum (Adopted March 6, 2012)
Board of Trustees
G�prgia Municipal Employees
enefit Syste