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HomeMy WebLinkAboutSERVICE CREDIT PURCHASE ADDENDUM TO THE GEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM DEFINED BENEFIT RETIREMENT PLAN ADOPTION AGREEMENT (4) SERVICE 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 13.0 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. (b) Prior Service With ARCPC - Subject to any conditions specified in Section 13.B or 13.0 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 Augusta GMEBS Plan I(Amended Effective July 1,2018) service with the ARCPC prior to November 1, 2011 which is not otherwise creditable under this Plan (see General Addendum Section 15(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. (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): ® 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. (3) Application to Purchase Service Credit. A Participant who meets the eligibility requirements specified in paragraph (1) above and who wishes to purchase eligible service credit as described in paragraph (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 paragraph (1) above. -2— Augusta GMEBS Plan I(Amended Effective July 1,2018) (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. 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 paragraph (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. (5) Review by Augusta Human Resources Director. Within a reasonable time after the end of the application period, the Augusta Human Resources Director will review the Participant's application to purchase service credit and will determine whether the application should be accepted. Upon approval of an application by the Augusta Human Resources Director, the Augusta Human Resources Director will certify on the application the number of years and months of prior service that are eligible for purchase under paragraph (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) associated with determining the cost to purchase the Participant's eligible service credit. Any portion of the fee that the Participant is not required to pay will be paid by the Employer. (7) Actuarial Study to Determine Cost of Purchase. In the event that a cost study has not been undertaken prior to the Participant's submission of a completed application to purchase service credit, if the Participant's application to purchase is approved by the Pension Committee Secretary, a cost study will be undertaken as soon as reasonably practicable after the application has been approved, in order 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 -3— Augusta GMEBS Plan I(Amended Effective July 1,2018) Resources Director will notify the Participant of the lump sum amount required to purchase prior service credit, as reflected in the cost study. Within 120 days of receiving this notice or of receiving notice of the Augusta Human Resources Director's approval of the Participant's application to purchase service credit, whichever is later, the Participant shall remit said lump sum amount in the form and manner required by Sections (9)-(11) below, to the Augusta Human Resources Director, and GMEBS. The Participant may remit less than the full lump sum 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) and in no event may a Participant make such payment after his or her termination of employment. (9) 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. -4— Augusta GMEBS Plan I(Amended Effective July 1,2018) (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 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 or 18.04 of the Master Plan Document (concerning failure to exhaust or termination of the plan, respectively). Participants (check one): ❑ will not be permitted to withdraw contributions made to purchase prior service credit upon termination of employment (Participants must be vested to purchase prior service credit). ❑ will not be permitted to withdraw contributions made to purchase prior service credit upon termination of employment, unless they are not vested upon termination (Participants are not required to be vested to purchase prior service credit). ® 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 in accordance with Section 19 of the Adoption Agreement and subsections 15(aa) and 15(dd) of the General Addendum, as applicable, subject to any limitations on the crediting of interest in Section 13.03(c) of the Master Plan Document. ❑ will be permitted to withdraw contributions made to purchase service credit upon termination of employment, subject to the following conditions for repayment (must describe): -5— Augusta GMEBS Plan I(Amended Effective July 1,2018) 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. D 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 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 any 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. -6— Augusta GMEBS Plan I(Amended Effective July 1,2018) (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 established for this purpose in the funding policy adopted by the GMEBS Board of Trustees. ® 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. The terms of the foregoing Service Credit Purchase Addendum to the Adoption_Areement a approved by the Augusta, Georgia Commission '`" -Council this da pof s JU re , 20 /R . ...)ACH Mogi, At ,+ ..--44., k,, i.1 AUGUSTA, GEORGIA t JL1164...E Mayo 4 1 14( I,6 AP,E1/4,,,,,::, - *- ®tl , Approved! ' 11, r 1 ty t i rney `_ ] -7— Augusta GMEBS Plan I(Amended Effective July 1,2018) 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 the ignatures of its dul authorized officers to be affixed this day of C� , 2o1g . Board of Trustees f`-, „„„ 0 Georgia Municipal Employees Benefit System (SEAL) , - -4,....,/4-141.0-#0% Secretary -8— Augusta GMEBS Plan I(Amended Effective July 1,2018)