2013-O-18 ORDINANCE NO. 2013-0-18
AN ORDINANCE OF THE CITY OF EDGEWATER
AMENDING THE CITY OF EDGEWATER POLICE
OFFICERS' RETIREMENT PLAN BY AMENDING
SECTION 1.02, DEFINITIONS BY AMENDING THE
DEFINITION OF "YEARS OF SERVICE"; AMENDING
SECTION 4.02, BENEFIT LIMITATION; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EDGEWATER,
FLORIDA;
SECTION 1: That the City of Edgewater Police Officers' Retirement Plan, is hereby
amended by amending Section 1.02, Definitions, by amending the definition of "Years of
Service", to read as follows:
* * *
yam}. .. . . _ . ..
Years of Service means the total number of years and fractional parts of years of service
as a police officer with member contributions, when required, omitting intervening years or
fractional parts of years when such member was not employed by the city as a police officer. A
member may voluntarily leave his accumulated contributions in the fund for a period of five (5)
years after leaving the employ of the city pending the possibility of being reemployed as a police
officer, without losing credit for the time that he was a member of the system. If a vested
member leaves the employ of the city, his accumulated contributions will be returned only upon
his written request. If a member who is not vested is not reemployed as a police officer with the
city within five (5) years, his accumulated contributions, if one thousand dollars ($1,000.00) or
less, shall be returned. If a member who is not vested is not reemployed within five (5) years, his
accumulated contributions, if more than one-thousand dollars ($1,000.00), will be returned only
upon the written request of the member and upon completion of a written election to receive a
cash lump sum or to rollover the lump sum amount on forms designated by the board. Upon
return of a member's accumulated contributions, all of his rights and benefits under the system
are forfeited and terminated.
The years or parts of a year that a member performs "Qualified Military Service"
consisting of voluntary or involuntary "service in the uniformed services" as defined in the
Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353),
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after separation from employment as a police officer to perform training or service, shall be
added to his years of service for all purposes, including vesting, provided that:
The member is entitled to reemployment under the provisions of
USERRA.
(b) The member returns to his employment as a police officer within one (1) year
following the earlier of the date of his military discharge or his release from
service, unless otherwise required by USERRA.
(c) The member deposits into the fund the same sum that the member would have
contributed, if any, if he had remained a police officer during his absence. The
maximum credit for military service pursuant to this subdivision shall be five (5)
years. The member must deposit all missed contributions within a period equal to
three times the period of military service, but not more than five (5) years,
following re-employment or he will forfeit the right to receive service for his
military service pursuant to this paragraph.
(d) This paragraph is intended to satisfy the minimum requirements of USERRA. To
the extent that this paragraph does not meet the minimum standards of USERRA,
as it may be amended from time to time, the minimum standards shall apply.
In the event a member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the member are entitled to any benefits (other
than benefit accruals relating to the period of qualified military service) as if the member had
resumed employment and then died while employed.
Beginning January 1, 2009, to the extent required by section 414(u)(12) of the code, an
individual receiving differential wage payments (as defined under section 3401(h)(2) of the
code) from an employer shall be treated as employed by that employer, and the differential wage
payment shall be treated as compensation for purposes of applying the limits on annual additions
under section 415(c) of the code. This provision shall be applied to all similarly situated
individuals in a reasonably equivalent manner.
* * *
SECTION 2: That the City of Edgewater Police Officers' Retirement Plan, is hereby
amended by amending Section 4.02, Benefit Limitation, to read as follows:
SECTION 4.02-BENEFIT LIMITATION.
in this section, the following terms are defined:
Participant's account for the Limitation Year:
(1) employer contributions;
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(2) employee contributions;
(3) forfeitures; and
(1) allocations under a simplified employee pension.
Annual Benefit means a retirement benefit under the plan which is
payable annually in the form of a Straight Life Annuity. Except as provided
below, a benefit payable in a form other than a Straight Life Annuity must be
adjusted to an actuarially equivalent Straight Life Annuity before applying the
••- . . - - tive for Limitation Years beginning on or after
January 1, 1995, where a Participant's benefit must be adjusted to an actuarially
is equal to the grater of the annuity benefit computed using the interest rate and
mortality table (or other tabular factor) specified in the Plan for adjusting benefits
assumption and the Applicable Mortality Table.
joint and survivor annuity, (ii) benefits that are not directly related to retirement
benefits (such as a qualified disability benefit, pre retirement death benefits, and
post retirement medical benefits), and (iii) the value of post retirement cost of
living increases made in accordance with Code Section 415(d) and section 1.115
any benefits attributable to employee contributions or rollover contributions, or
assets transferred from a qualified plan that was not maintained by the Employer.
Compensation means wages within the meaning of Code Section 3401(a) and all
other payments of compensation to an Employee by the Employer (in the course
of the Employer's trade or business) for which the Employer is required to furnish
the Employee a written statement under Code Sections 6041(d), 6051(a)(3), and
-. - -..•.
Section 3401(a) that limit the remuneration included in wages based on the nature
- _ . . - --
"Wages, •Tips and Other Compensation" box on Form •W 2 satisfies this
definition.
available during such Limitation Year. .. ..
For Limitation Years beginning after December 31, 1997, Compensation paid or
made available during such Limitation Year shall include any elective deferral (as
defined in Code Section 402(g)(3)), and any amount which is contributed or
deferred by the Employer at the election of the Employee and which is not
includible in the gross income of the Employee by reason of Code Section 125 or
157. For Limitation Years beginning on and after January 1, 2001, Compensation
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paid or made available during such Limitation Year shall include elective
amounts that are not includible in the gross income of the Employee by reason of
Code Section 132(f)('1).
. • • • • • •• .. •• •••
effective January 1 of each y ar, under Code Section 415(d) in such manner as the
Secretary shall prescribe, and payable in the form of a Straight Life Annuity. The
new limitation shall apply to Limitation Years ending with or within the
sum of the Participant's Projected Annual Benefits under all the defined benefit
denominator of which is 125 percent of the Defined Benefit Dollar Limitation
applicable to the Participant, adjusted as necessary in accordance with the
definition of Maximum Permissible Benefit.
after December 31,1994, $30,000, as adjusted under Code Section 415(d).
the sum of the Annual Additions to the Participant's account under all the defined
contribution plans (whether or not terminated) maintained by the Employer for
the current and all prior Limitation Years, (including the Annual Additions
:
ployee contributions as defined in Code Section 411(c)(2)(C), to this and all
other defined benefit plans (whether or not terminated) maintained by the
pensions maintained by the Employer), and the denominator of which is the sum
of the maximum aggregate amounts for the current and all prior Limitation Years
of-the Participant's service with the Employer (regardle -
contribution plan was maintained by the Employer).
The maximum aggregate amount for any Limitation Year is the lesser of(i) 125
percent of the Defined Contribution Dollar Limitation, or (ii) 35 percent (1A x 25
percent) of the Participant's Compensation for such year.
The Annual Addition for any Limitation Year beginning before January 1, 1987,
shall not be recomputed to tr at all employee contributions as Annual Additions.
If the Employee was a participant as of the end of the first day of the first
Limitation Y-ar beginning after December , •i o, •- . - . - . - - .
contributions plans maintained by the Employer which were in existence on May
6, 1986, the numerator of this fraction will be adjusted if the sum of this fraction
and the Defined Benefit Plan Fraction would otherwise exceed 1.0 under the
terms of this Plan. Under the adjustment, an amount equal to the product of(i) the
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disregarding any changes in the terms and conditions of the plans made after May
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5, 1986, but using the Code Section 115 limitation applicable to the first
Limitation Year beginning on or after January 1, 1987.
Employer means the employer that adopts this Plan, and all members of a
controlled group of corporations (as defined in Code Section 414(b), as modified
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service groups (as defined in Code Section 414(m)) of which the adopting
employer is a part, and any other entity required to be aggregated with the
employer under Code Section 414(o).
Limitation Year means the 12 consecutive month period ending on each June 30.
If the Limitation Year is other than a calendar year, execution of this Plan (or any
Year is amended to a different 12 consecutive month period, the new Limitation
Year must begin on a date within the Limitation Year in which the amendment is
made
(adjusted where required, as provided below).
(1) If the Participant has less than ten Years of Participation in the Plan, the
numerator of which is the number of Years of Participation (or part
thereof) in the Plan, and the denominator of which is ten. Where a
Defined Benefit Plan Fraction is calculated, the adjustments of this (1)
- . •
based upon Years of Service. .For purposes of computing the Defined
Benefit Fraction only, Years of Service shall include future Years of
.
Retirement Date. Such future Years of Service shall include the year that
contains the earlier of (i) the date the Participant reaches Normal
Retirement Date, only if it can be reasonably anticipated that the
Participant will receive a Year of Service for such year, or (ii) the year in
which the Participant terminates employment.
For Limitation Years beginning on or after January 1, 1995, the
adjustments of this (1) shall not apply to survivor and disability benefits as
provided in Code Section 115(b)(2)(1).
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 that is the actuarial equiv -- -- D- • : •-
Limitation (as reduced in (1) above, if necessary) reduced for each month
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by which the benefits commence before the month in which the
Participant attains age 62. Effective for Limitation Years beginning on or
after January 1, 1995, the Defined Benefit Dollar Limitation applicable at
(or other tabular factor) specified in the Plan for purposes of determining
actuarial equivalence for early retirement benefits, and the actuarial
equivalent of the Defined Benefit Dollar Limitation (as reduced in (1)
above, if necessary) computed using a 5 percent interest rate and the
Applicable Mortality Table. To the extent that the Plan does not specify an
which no tabular factor is specified, a 5 percent interest rate and the
Applicable Mortality Table shall be used to determine actuarial
equivalence.
The reduction under this (2) shall not reduce the Defined Benefit
Dollar Limitation below $75,000 if the benefit commences at or after age
Dollar Limitation below the actuarial equivalent of the $75,000 limitation
for age 55 if the benefit commences before age 55. Effective for
Limitation Years' beginning on or after January 1, 1995, the minimum
• . ..
-
determined as the lesser of the actuarial equivalent of the $75,004
limitation at age 55 computed using the interest rate and mortality table (or
other tabular factor) specified in the Plan for purposes of determining
actuarial equivalence for early retirement benefits, and the actuarial
equivalent of the $75,000 limitation at age 55 computed using a 5 percent
interest rate and the Applicable Mortality Table. To the extent that the
Plan does not specify an interest rate and mortality table (or other tabular
factor) or for ages for which no tabular factor is specified, a 5 percent
. .
actuarial equivalence. -
Any decrease in the Defined Benefit Dollar Limitation determined in
are forfeited upon death, the full mortality decrement is taken into
account.
For Limitation Years beginning on or after January 1, 1997, the
adjustments in this (2) do not apply in the case of a Participant who is a
this (2) do not apply to survivor and disability benefits as provided in
Code Section 415(b)(2)(1).
(3) If The Annual Benefit of the Participant commences after
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
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Annuity commencing at the later age that is actuarially equivalent to the
Defined Benefit Dollar Limitation applicable to the Participant (adjusted
beginning on or after January 1,•1995, the actuarial equivalent of the
the actuarial equivalent of the Defined Benefit Dollar Limitation at age 65
computed using the interest rate and mortality table (or other tabular
equivalence for delayed retirement benefits, and the actuarial equivalent of
the Defined Benefit Dollar Limitation at age 65 computed using a 5
percent interest rate assumption and the Applicable Mortality Table. For
commence must be ignored.
definition to the contrary, the benefit otherwise accrued or payable to a
Participant under this Plan shall be deemed not to exceed the Maximum
Permissible Benefit if:
(i) the retirement benefits payable for a Plan Year under any form of
benefit with respect to such Participant under this Plan and under
all other defined benefit plans (regardless of whether terminated)
over maintained by the Employer do not exceed $1,000 multiplied
by the Participant's number of Years of Service or parts thereof
(not to exceed ten); and
(ii) the Employer has not at any time maintained a defined contribution
plan (for these purposes, employee contributions, whether
voluntary or involuntary, under a defined benefit plan are not
For Limitation Years beginning on or after January 1, 1995, the amount in
permitted for survivor and disability benefits as provided in Code Section
/115{b)(2)(1).
(5) For Limitation Years beginning on or after January 1, 1995, the 100
percent of high three year average compensation limitation provided in
Code Section 415(b)(1)(B) shall not apply.
would be entitled under the terms of the Plan.assuming:
(1) the Participant will continue employment until normal retirement age
under the Plan(current age, if later), and
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(2) all relevant factors used to determine benefits under the Plan will remain
constant for all future Limitation Years.
of the Participant that terminates upon the Participant's death.
Year of Participation means one year (computed to fractional parts of a year) for
each Plan Y r for which the following conditions are met:
(1) The Participant is credited with Continuous Service for benefit accrual
Purfosesr and
•- . . . •
of the Plan for at least one day of the Plan Year.
Participant for such Plan Year. A Participant who is totally and permanently
disabled within the meaning of Code Section 415(c)(3)(C)(i) for a Plan Year shall
receive a Year of Participation with respect to that period. In addition, for a
Participant to receive a Year of Participation (or part thereof) for a Plan Year, the
Plan must be established no later than the last day of such Plan Year. In no event
(b) This (b) applies regardless of whether any Participant is or has ever been a
participant in another qualified plan maintained by the adopting Employer. If any
Participant is or has ever been a participant in another qualified plan maintained
/108(k)) maintained by the Employer, that provides an Annual Addition, (c) below
is also applicable to that Participant's benefits.
(1) The Annual Benefit otherwise payable to a Participant at
the Participant would otherwise accrue in a Limitation Year would
produce an Annual Benefit in excess of the Maximum Permissible
Benefit, the benefit must be limited (or the rate of accrual reduced) to a
benefit that does not exceed the Maximum Permissible Benefit.
(2) If a Participant has made voluntary employee contributions,
or mandatory employee contributions as defined in Code Section
11(c)(2)(C), under the terms of this Plan, the amount of such
contributions is treated as an Annual Addition to a qualified defined
contribution plan for purposes of (b)(1) and (c)(2) of this section. Such
'115(c)(1).
(c) This (c) applies if any Participant is also a participant, or has ever
participated, in another plan maintained by the Employer, including a qualified
plan or a simplified employee pension that provides an Annual Addition.
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(1) If a Participant is, or has ever been, a participant in more
than one defined benefit plan maintained by the Employer, the sum of the
• ' ♦ . • .
Maximum Permissible Benefit. Where the Participant's employer provided
benefits under all defined benefit plans ever maintained by the Employer
(determined as of the same age) would exceed the Maximum Permissible
Benefit applicable at that age, the benefit shall be limited (or the rate of
accrual reduced) in the plan most recently established to the extent
necessary so that the sum of the Participant's Annual Benefits from all
such plan(s) does not exceed the Maximum Permissible Benefit.
(2) For Limitation Years beginning before January 1, 2000, if
the Employer maintains, or ever maintained, one or more qualified defined
contribution plans in which any Participant in this Plan participated,
including a simplified employee pension, the sum of the Participant's
Defined Contribution Plan Fraction and Defined Benefit Plan Fraction will
net-exceed 1.0 in any Limitation Year and, where the sum exceeds 1.0 for
a Participant for a Limitation Y ar, the Projected Annual Benefit shall be
limited first. If the Participant's Annual Benefits equal his Projected
Annual Benefit, as limited, then Annual Additions to the defined
contribution plan(s) shall be limited to amounts that will reduce the sum to
. . . .. . . . . .. . . _ . ..
the requirements of Code Section 415(c)(1).
Benefit increases resulting from the repeal of Code Section 415(e) will be provided to all
. ..
have an Accrued Benefit under the Plan immediately before the first day of the first
Limitation Year beginning in 2000 and have one hour of service with the Employer after
such date.
Basic Limitation.
Notwithstanding any other provisions of this System to the contrary, the Member
contributions paid to, and retirement benefits paid from, the System shall be limited to such
extent as may be necessary to conform to the requirements of Code Section 415 for a qualified
retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that
exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that
section. On and after January 1, 1995, a plan member may not receive an annual benefit that
exceeds the dollar amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the
applicable adjustments in Code Section 415(b) and subject to any additional limits that may be
specified in this System. For purposes of this Section, "limitation year" shall be the calendar
year.
For purposes of Code Section 415(b), the "annual benefit" means a benefit
payable annually in the form of a straight life annuity (with no ancillary benefits) without regard
to the benefit attributable to after-tax employee contributions (except pursuant to Code Section
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415(n) and to rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit
attributable" shall be determined in accordance with Treasury Regulations.
(b) Adjustments to Basic Limitation for Form of Benefit.
If the benefit under the plan is other than the annual benefit described in
subsection (a), then the benefit shall be adjusted so that it is the equivalent of the annual benefit,
using factors prescribed in Treasury Regulations. If the form of the benefit without regard to any
automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor
annuity, then the preceding sentence is applied by either reducing the Code Section 415(b) limit
applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent
amount (determined using the assumptions specified in Treasury Regulation Section 1.415(b)-
1(c)(2)(ii)) that takes into account the additional benefits under the form of benefit as follows:
(1) For a benefit paid in a form to which Section 417(e)(3) of
the Code does not apply (generally, a monthly benefit), the actuarially
equivalent straight life annuity benefit that is the greater of:
The annual amount of the straight life
annuity (if any) payable to the Member under the Plan
commencing at the same annuity starting date as the form of
benefit to the Member, or
(ii) The annual amount of the straight life
annuity commencing at the same annuity starting date that has the
same actuarial present value as the form of benefit payable to the
Member, computed using a five percent (5%) interest assumption
(or the applicable statutory interest assumption) and (i) for years
prior to January 1, 2009, the applicable mortality tables described
in Treasury Regulation Section 1.417(e)-1(d)(2) (Revenue Ruling
2001-62 or any subsequent Revenue Ruling modifying the
applicable provisions of Revenue Rulings 2001-62), and (ii) for
years after December 31, 2008, the applicable mortality tables
described in Section 417(e)(3)(B) of the Code (Notice 2008-85 or
any subsequent Internal Revenue Service guidance implementing
Section 417(e)(3)(B) of the Code); or
(2) For a benefit paid in a form to which Section 417(e)(3) of the Code applies
(generally, a lump sum benefit), the actuarially equivalent straight life
annuity benefit that is the greatest of:
The annual amount of the straight life
annuity commencing at the annuity starting date that has the same
actuarial present value as the particular form of benefit payable,
computed using the interest rate and mortality table, or tabular
factor, specified in the Plan for actuarial experience;
(ii) The annual amount of the straight life
annuity commencing at the annuity starting date that has the same
actuarial present value as the particular form of benefit payable,
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computed using a five and one half percent (5.5%) interest
assumption (or the applicable statutory interest assumption) and (i)
for years prior to January 1, 2009, the applicable mortality tables
for the distribution under Treasury Regulation Section 1.417(e)-
1(d)(2) (the mortality table specified in Revenue Ruling 2001-62
or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and (ii) for years after
December 31, 2008, the applicable mortality tables described in
Section 417(e)(3)(B) of the Code (Notice 2008-85 or any
subsequent Internal Revenue Service guidance implementing
section 417(e)(3)(B) of the Code); or
(iii) The annual amount of the straight life
annuity commencing at the annuity starting date that has the same
actuarial present value as the particular form of benefit payable
(computed using the applicable interest rate for the distribution
under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-year
Treasury rate (prior to January 1, 2007, using the rate in effect for
the month prior to retirement, and on and after January 1, 2007,
using the rate in effect for the first day of the Plan Year with a one-
year stabilization period)) and (i) for years prior to January 1,
2009, the applicable mortality tables for the distribution under
Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table
specified in Revenue Ruling 2001-62 or any subsequent Revenue
Ruling modifying the applicable provisions of Revenue Ruling
2001-62), and (ii) for years after December 31. 2008, the
applicable mortality tables described in Section 417(e)(3)(B) of the
Code (Notice 2008-85 or any subsequent Internal Revenue Service
guidance implementing Section 417(e)(3)(B) of the Code), divided
by 1.05.
(3) The actuary may adjust the 415(b) limit at the annuity
starting date in accordance with subsections (1) and (2) above.
(c) Benefits Not Taken into Account.
For purposes of this Section, the following benefits shall not be taken into account
in applying these limits:
(1) Any ancillary benefit which is not directly related to retirement income
benefits;
(2) Any other benefit not required under §415(b)(2) of the Code and
Regulations thereunder to be taken into account for purposes of the
limitation of Code Section 415(b)(1); and
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(3) That portion of any joint and survivor annuity that
constitutes a qualified joint and survivor annuity.
(d) COLA Effect.
Effective on and after January 1, 2003, for purposes of applying the limits under
Code Section 415(b) (the "Limit"),the following will apply:
(1) A Member's applicable limit will be applied to the
Member's annual benefit in the Member's first limitation year of benefit
payments without regard to any automatic cost of living adjustments;
(2) thereafter, in any subsequent limitation year, a Member's
annual benefit, including any automatic cost of living increases, shall be
tested under the then applicable benefit limit including any adjustment to
the Code Section 415(b)(1)(A) dollar limit under Code Section 415(d),
and the regulations thereunder; but
(3) in no event shall a Member's benefit payable under the
System in any limitation year be greater than the limit applicable at the
annuity starting date, as increased in subsequent years pursuant to Code
Section 415(d) and the regulations thereunder.
Unless otherwise specified in the System, for purposes of applying the limits
under Code Section 415(b), a Member's applicable limit will be applied taking into consideration
cost of living increases as required by Section 415(b) of the Internal Revenue Code and
applicable Treasury Regulations.
Other Adjustments in Limitations_
(1) In the event the Member's retirement benefits become
payable before age sixty-two (62), the limit prescribed by this Section
shall be reduced in accordance with regulations issued by the Secretary of
the Treasury pursuant to the provisions of Code Section 415(b) of the
Code, so that such limit (as so reduced) equals an annual straight life
benefit (when such retirement income benefit begins) which is equivalent
to a one hundred sixty thousand dollar ($160,000) annual benefit
beginning at age sixty-two (62).
(2) In the event the Member's benefit is based on at least
fifteen (15) years of Service as a full-time employee of the police or fire
department of the City, the adjustments provided for in (e)(1) above shall
not apply.
(3) The reductions provided for in (e)(1) above shall not be
applicable to disability benefits pursuant to Section 5.03, or pre-retirement
death benefits paid pursuant to Section 5.01.
(4) In the event the Member's retirement benefit becomes
payable after age sixty-five (65), for purposes of determining whether this
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benefit meets the limit set forth in subsection (a) herein, such benefit shall
be adjusted so that it is actuarially equivalent to the benefit beginning at
age sixty-five (65). This adjustment shall be made in accordance with
regulations promulgated by the Secretary of the Treasury or his delegate.
C.0 Less than Ten(10) Years of Participation or Service.
The maximum retirement benefits payable under this Section to any Member who
has completed less than ten (10) years of Service with the City shall be the amount determined
under subsection (a) of this Section multiplied by a fraction, the numerator of which is the
number of the Member's years of Service and the denominator of which is ten (10). The
reduction provided by this subsection cannot reduce the maximum benefit below 10% of the
limit determined without regard to this subsection. The reduction provided for in this subsection
shall not be applicable to pre-retirement disability benefits paid pursuant to Section 5.03, or pre-
retirement death benefits paid pursuant to Section 5.01.
(g). Participation in Other Defined Benefit Plans.
The limit of this Section with respect to any Member who at any time has been a
member in any other defined benefit plan as defined in Code Section 414(j) maintained by the
City shall apply as if the total benefits payable under all City defined benefit plans in which the
Member has been a member were payable from one plan.
(h) Ten Thousand Dollar ($10,000) Limit; Less Than Ten Years of Service.
Notwithstanding anything in this Section 4.02, the retirement benefit payable with
respect to a Member shall be deemed not to exceed the limit set forth in this subsection (h) of
Section 4.02 if the benefits payable, with respect to such Member under this System and under
all other qualified defined benefit pension plans to which the City contributes, do not exceed ten
thousand dollars ($10,000) for the applicable limitation year and for any prior limitation year and
the City has not any time maintained a qualified defined contribution plan in which the Member
participated; provided, however, that if the Member has completed less than ten (10) years of
Service with the City, the limit under this subsection (h) of Section 4.02 shall be a reduced limit
equal to ten thousand dollars ($10,000) multiplied by a fraction, the numerator of which is the
number of the Member's years of Service and the denominator of which is ten (10).
j Reduction of Benefits_
Reduction of benefits and/or contributions to all plans, where required, shall be
accomplished by first reducing the Member's benefit under any defined benefit plans in which
Member participated, such reduction to be made first with respect to the plan in which Member
most recently accrued benefits and thereafter in such priority as shall be determined by the Board
and the plan administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans in which the Member participated, such reduction to be
made first with respect to the plan in which Member most recently accrued benefits and
thereafter in such priority as shall be established by the Board and the plan administrator for such
other plans provided, however, that necessary reductions may be made in a different manner and
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priority pursuant to the agreement of the Board and the plan administrator of all other plans
covering such Member.
(j) Service Credit Purchase Limits.
(1) Effective for permissive service credit contributions made
in limitation years beginning after December 31, 1997, if a Member makes
one or more contributions to purchase permissive service credit under the
System, then the requirements of this Section will be treated as met only
if:
a) the requirements of Code Section 415(b) are
met, determined by treating the accrued benefit derived from all
such contributions as an annual benefit for purposes of Code
Section 415(b), or
(ii) the requirements of Code Section 415(c) are
met, determined by treating all such contributions as annual
additions for purposes of Code Section 415(c).
For purposes of applying subparagraph (j)(1)(i), the System will not fail to
meet the reduced limit under Code Section 415(b)(2)(c) solely by reason
of this subparagraph, and for purposes of applying subparagraph (j)(1)(ii)
the System will not fail to meet the percentage limitation under Section
415(c)(1)(B) of the Internal Revenue Code solely by reason of this
subparagraph.
(2) For purposes of this subsection the term "permissive
service credit" means service credit-
(i) recognized by the System for purposes of
calculating a Member's benefit under the plan,
(ii) which such Member has not received under
the plan, and
(iii) which such Member may receive only by making a voluntary
additional contribution, in an amount determined under the
System, which does not exceed the amount necessary to fund the
benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, such term may, if otherwise
provided by the System, include service credit for periods for which there
is no performance of service, and, notwithstanding clause (j)(2)(ii), may
include service credited in order to provide an increased benefit for service
credit which a Member is receiving under the System.
(k) Contribution Limits.
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(1) For purposes of applying the Code Section 415(c) limits
which are incorporated by reference and for purposes of this subsection
(k), only and for no other purpose, the definition of compensation where
applicable will be compensation actually paid or made available during a
limitation year, except as noted below and as permitted by Treasury
Regulations Section 1.415(c)-2, or successor regulations. Unless another
definition of compensation that is permitted by Treasury Regulations
Section 1.415(c)-2, or successor regulation, is specified by the System,
compensation will be defined as wages within the meaning of Code
Section 3401(a) and all other payments of compensation to an employee
by an employer for which the employer is required to furnish the
employee a written statement under Code Sections 6041(d), 6051(a)(3)
and 6052 and will be determined without regard to any rules under Code
Section 3401(a) that limit the remuneration included in wages based on
the nature or location of the employment or the services performed (such
as the exception for agricultural labor in Code Section 3401(a)(2).
However, for limitation years beginning
after December 31, 1997, compensation will also include amounts
that would otherwise be included in compensation but for an
election under Code Sections 125(a), 402(e)(3), 402(h)(1)(B),
402(k), or 457(b). For limitation years beginning after December
31, 2000, compensation will also include any elective amounts that
are not includible in the gross income of the employee by reason of
Code Section 132(0(4).
(ii) For limitation years beginning on and after
January 1, 2007, compensation for the limitation year will also
include compensation paid by the later of 2'/2 months after an
employee's severance from employment or the end of the
limitation year that includes the date of the employee's severance
from employment if:
A. the payment is regular
compensation for services during the employee's regular
working hours, or compensation for services outside the
employee's regular working hours (such as overtime or
shift differential), commissions, bonuses or other similar
payments, and, absent a severance from employment, the
payments would have been paid to the employee while the
employee continued in employment with the employer; or
B. the payment is for unused
accrued bona fide sick, vacation or other leave that the
employee would have been able to use if employment had
continued.
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(iii) Back pay, within the meaning of Treasury Regulations Section
1.415(c)-2(g)(8), shall be treated as compensation for the limitation
year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be
included under this definition.
(2) Notwithstanding any other provision of law to the contrary,
the Board may modify a request by a Member to make a contribution to
the System if the amount of the contribution would exceed the limits
provided in Code Section 415 by using the following methods:
If the law requires a lump sum payment for
the purchase of service credit, the Board may establish a periodic
payment deduction plan for the Member to avoid a contribution in
excess of the limits under Code Sections 415(c) or 415(n).
(ii) If payment pursuant to subparagraph
(k)(2)(i) will not avoid a contribution in excess of the limits
imposed by Code Section 415(c), the Board may either reduce the
Member's contribution to an amount within the limits of that
section or refuse the Member's contribution.
(3) If the annual additions for any Member for a limitation year
exceed the limitation under Section 415(c) of the Code, the excess annual
addition will be corrected as permitted under the Employee Plans
Compliance Resolution System (or similar IRS correction program).
(4) For limitation years beginning on or after January 1, 2009, a
Member's compensation for purposes of this subsection (k) shall not
exceed the annual limit under Section 401(a)(17) of the Code.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
SECTION 4: That this Ordinance shall become effective upon its adoption.
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After Motion to approve by Councilwoman Bennington with Second by Councilwoman
Power the vote on the first reading/public hearing of this ordinance held on September 23, 2013,
was as follows:
AYE NAY
Mayor Mike Thomas X
Councilwoman Christine Power X
Councilwoman Gigi Bennington X
Councilman Mike Ignasiak EXCUSED
Councilman Gene Emter X
After Motion to approve by tni av.lrnan e(-r)- with Second by Co eJtuomo.n Zu.)er
the vote on the second reading/public hearing of this ordinance held on CXvber `7 ,
2013, was as follows:
AYE NAY
Mayor Mike Thomas
Councilwoman Christine Power
Councilwoman Gigi Bennington
Councilman Mike Ignasiak X
Councilman Gene Emter �(
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PASSED AND DULY ADOPTED this 74 h day of DO fiber , 2013.
• ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWAT R, FLORIDA
• *I la
• _-' raatiiik■
Bonnie Wenzel • e TI —
City Clerk Mayor
Robin L. Matusick
Paralegal
For the use and reliance only by the City of Approved by the City Council of the City of
Edgewater, Florida. Approved as to form and Edgewater at a meeting held on this `7' day
legality by: Aaron R. Wolfe, Esquire of U' (`fir- , 2013 under Agenda Item No.
City Attorney 8 Y .
Doran, Sims,Wolfe&Kundid
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