2013-O-17 ORDINANCE NO. 2013-0-17
AN ORDINANCE OF THE CITY OF EDGEWATER
AMENDING THE CITY OF EDGEWATER GENERAL
EMPLOYEES' 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 General Employees' Retirement Plan, is hereby
amended by amending Section 1.02, Definitions by amending the definition of "Years of
Service", to read as follows:
* * *
Years of Service means, except for purposes of the BENEFIT LIMITATION SECTION
of Article IV, the total of an Employee's service, expressed as whole years and fractional parts of
a year(counting a complete month as a fractional part of a yeas).
However, Years of Service is modified as follows:
Period of Military Duty included:
A Period of Military Duty shall be included as service with the Employer to the extent it
has not already been credited.
Years of Service means the total number of years and fractional parts of years of service
as a general employee with member contributions, when required, omitting intervening years or
fractional parts of years when such member was not employed by the city as a general employee.
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
general employee, 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 general
employee 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.
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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),
after separation from employment as a general employee to perform training or service, shall be
added to his years of service for all purposes, including vesting, provided that:
Cal The member is entitled to reemployment under the provisions of
USERRA.
(b) The member returns to his employment as a general employee 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 general employee 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 General Employees' Retirement Plan, is hereby
amended by amending Section 4.02, Benefit Limitation, to read as follows:
SECTION 4.02-BENEFIT LIMITATION.
Benefits under the Plan shall be limited in accordance with Code Section 415 and the
regulations thereunder. The limitations of this section shall apply in Limitation Years beginning
on or after July 1, 2007, except as otherwise provided herein.
- •..• -
in this section, the following terms are defined:
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Life Annuity. Except as provided below, where a benefit is payable in a form
other than a Straight Life Annuity, the benefi . .. . . . . .. •.
of benefit and is payable on the first day of each month, before applying the
limitations of this section. For a Participant who has or will have distributions
commencing at more than one Annuity Starting Date, the Annual Benefit shall be
determined as of-ach such Annuity Starting Date (and shall satisfy the limitations
of this section as of each such date), actuarially adjusting for past and future
• . .•
made without regard to section 1.401(a) 20, Q&A 10(d), and with regard to
section 1./15(b) 1(bXl)(iii)(B) and (C)of the regulations.
No actuarial adjustment to the benefit shall be made for (i) survivor benefits
extent such benefits would not be payable if the Participant's benefit were paid in
another form; (ii) benefits that are not directly related to retirement benefits (such
as a qualified disability benefit, preretirement incidental death benefits, and post
retirement medical benefits); or (iii) the inclusion in the form of benefit of an
automatic benefit increase feature, provided the form of benefit is not subject to
and the Plan provides that the amount payable under the form of benefit in any
Annuity Starting Date, as increased in subsequent years pursuant to Code Section
form of benefit if the form of benefit provides for automatic periodic increases to
the benefits paid in that form.
The determination of the Annual Benefit shall take into account Social Security
supplements described in Code Section 411(a)(9) and benefits transferred from
another defined benefit plan, other than transfers of distributable benefits pursuant
to section 1.111(d) 4, Q&A 3(c), of the regulations, but shall disregard benefits
attributable to employee contributions or rollover contributions.
Effective for distributions in Plan Years beginning after December 31, 2003, the
determination of actuarial equivalence of forms of benefit other than a Straight
Life Annuity shall be made in accordance with (1) or(2) below:
(1) Benefit Forms Not Subject to Code Section 417(W3V: The
form of benefit shall be•determined under this (1) if th
-
Straight Life Annuity) payable for a period of not less than the life of the
the life of the surviving spouse), or (ii) an annuity that decreases during
the life of the Participant merely because of(a) the death of the survivor
annuitant (but only if the reduction is not below 50% of the benefit
reduction of Social Security supplements or qualified disability payments
(as defined in Code Section 101(a)(11)).
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(i) Limitation Years beginning before July 1. 2007. For Limitation
Years beginning before July 1, 2007, the actuarially equivalent
Straight Life Annuity is equal to the annual amount of the Straight
Life Annuity commencing at the same Annuity Starting Date that
has the same actuarial present value as the Participant's form of
benefit computed using whichever of the following produces the
greater annual amount:
A. the interest rate and the mortality table (or other
tabular factor) specified in the Plan for adjusting benefits in
the same form; and
B. a 5 percent interest rate assumption and the
Applicable Mortality Table for that Annuity Starting Date.
(ii) Limitation Years be innin, on and after Jul
2007. For Limitation Years beginning on and after July 1,' 2007,
the actuarially equivalent Straight Life Annuity is equal to the
greater of:
A the annual amount of the
Straight Life Annuity (if any) payable to the Participant
under the Plan commencing at the same Annuity Starting
Date as the Participant's form of benefit; and
p .
Straight Life Annuity commencing at the same Annuity
Starting Date that has the same .. •. . -- - • . . .
the Participant's form of benefit, computed using a 5
percent interest rate assumption and the Applicable
Mortality Table for that Annuity Starting Date.
(2) Benefit Forms Subject to Code Section 1117(e)(3). The
form of benefit shall be determined under this (2) if the fin
Participant's benefit is other than a benefit form described in (1) above.
(i) Limitation Years beginning before July 1, 2007. For Limitation
Years beginning before July 1, 2007, the actuarially equivalent
Straight Life Annuity is equal to the annual amount of the Straight
has the same actuarial present value as the Participant's form of
benefit computed using whichever of the following produces the
A. the interest rate and the
mortality table (or other tabular factor) specified in the Plan
for adjusting benefits in the same form; and
B. a 5 percent interest rate
assumption and the Applicable Mortality Table for that
Annuity Starting Date.
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(ii) Limitation Years beginning on and after July
1. 2007. For Limitation Years beginning on and after July 1, 2007,
the actuarially equivalent Straight Life Annuity is equal to the
annual amount of the Straight Life Annuity commencing at the
same Annuity Starting Date that has the same actuarial present
value as the Participant's form of benefit, computed using
whichever of the following produces the greater annual amount:
A. the interest rate and the
mortality table (or other tabular factor) specified in the Plan
for adjusting benefits in the same form; and
B. the Applicable Interest Rate
and the Applicable Mortality Table.
Defined Benefit Dollar Limitation means, effective for Limitation Years
Revenue Bulletin, and payable in the form of a Straight Life Annuity. The new
limitation shall apply to Limitation Years ending with or within the calendar year
of the date of the adjustment, but a Participant's benefits shall not reflect the
adjusted limit prior to January 1 of that calendar year. The automatic annual
adjustment of the Defined Benefit Dollar Limitation under Code Section 415(d)
shall not apply to Participants who have had a Severance from Employment.
Employer m-ans the employer that adopts this Plan, and all members of a
controlled group of corporations (as defined in Code Section 414(b), as modified
defined in Code Section 414(c), as modified, except in the case of a brother sister
affiliated service groups (as defined in Code . . - . -• -
adopting employer is a part, and any other entity required to be aggregated with
the employer pursuant to Code Section 414(o).
Formerly Affiliated Plan m ans a plan that, immediately prior to the
cessation of affiliation, was actually maintained by the Employer and immediately
after the cessation of affiliation, is not actually maintained by the Employer. For
longer be considered the Employer, such as the sale of a member of a eon-tro l d
controlled group.
last day of each Plan Year, including corresponding consecutive 12 month
periods before November 14, 1971. if the Limitation Year is other than a calendar
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within the Limitation Year in which the amendment is made.
Maximum Permissible Benefit means the Defined Benefit Dollar
Limitation(adjusted where required, as provided below).
• --
Participant has less than ten Years of Participation in the Plan, the Defined
Benefit Dollar Limitation shall be multiplied by a fraction, 0) the
numerator of which is the number of Y-ars of Participation (or part
thereof, but not less than one year) in the Plan,and (ii) the denominator of
which is ten.
The adjustments of this (1) shall not apply to survivor and
disability benefits as provided in Code Section 415(b)(2)(1).
(2) Adjustment of Defined Benefit Dollar Limitation for
Benefit Commencement Before Age 62 or After Aae 65: Effective for
benefits commencing in Limitation Years ending after December 31,
2001, the Defined Benefit Dollar Limitation shall be adjusted if the
Annuity Starting Date of the Participant's benefit is before age 62 or after
age 65. If the Annuity Starting Date is before age 62, the Defined Benefit
•..
(2)(iii) below. If the Annuity Starting Date Is afte • , -- !-
Benefit Dollar Limitation shall be adjusted under(2)(li)below, as modified
by(2)(iii) below.
(i) Adjustment of Defined Benefit Dollar
Limitation for Benefit Commencement Before Age 62:
A. Limitation Years Beginning
Before July 1. 2007. If the Annuity Starting Date for the
Participant's benefit is prior to age 62 and occurs in a
Limitation Year beginning before July1, 2007, the Defined
Benefit Dollar Limitation for the Participant's Annuity
Starting Date is the annual amount of a benefit payable in
the form of a Straight Life Annuity commencing at the
Participant's Annuity Starting Date that is the actuarial
equivalent of the Defined Benefit Dollar Limitation
(adjusted under (1) above for Years of Participation less
than ten, if required) with actuarial equivalence computed
using whichever of the following produces the smaller
annual amount (i) the interest rate and the mortality table
(or other tabular factor) specified in the Plan for purposes
of determining actuarial equivalence for early retirement
Applicable Mortality Table. To the extent 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 interest rate and the Applicable Mortality Table
shall be used to determine actuarial equivalence.
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B. Limitation Years Beginning
On or After July 1.2007.
Plan Does Not
• - • . •
Benefit Commencement. If the Annuity Starting
- - _ . ,
and occurs in a Limitation Year beginning.on or
after July 1, 2007, and the Plan does not have an
immediately commencing Straight Life Annuity
payable at both age 62 and the age of benefit
commencement, the Defined Benefit Dollar
Limitation for the Participant's Annuity Starting
Date is the annual amount of a benefit payable in
the form of a Straight Life Annuity commencing at
the Participant's Annuity Starting Date that is the
actuarial equivalent of the Defined Benefit Dollar
Limitation (adjusted under (1) above for Years of
Participation less than ten, if required) with
actuarial equivalence computed using a 5 percent
interest rate assumption and the Applicable
expressing the Participant's age based on completed
II. Plan Has
. •
Commencement. If the Annuity Starting Date for
the Participant's benefit is prior to age 62 and occurs
in a Limitation Year beginning on or after July 1,
2007, and the Plan has an Immediately commencing
Straight Life Annuity payable at both age 62 and
Benefit Dollar Limitation for the Participant's
Annuity Starting Date is the lesser of the limitation
determined under (2)(i)B.I. above and the Defined
Benefit Dollar Limitation (adjusted under (1) above
for Years of Participation less than ten, if required)
multiplied by the ratio of the annual amount of the
immediately commencing Straight Life Annuity
under the Plan at the Participant's Annuity Starting
Date to the annual amount of the immediately
commencing Straight Life Annuity under the Plan
at age 62, both determined without applying the
limitations of this section.
C. The adjustments in this (i) do
not apply in the case of a Participant who is a qualified
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adjustments in this (i) do not apply to survivor and
disability benefits as provided in Code Section 415(b)(2)(1).
D. Notwithstanding any other
provision of this (i), the age adjusted Defined Benefit
Dollar Limitation applicable to a Participant does not
decrease on account of an incr se in age or the
performance of additional service.
(ii) Adjustment of Defined Benefit Dollar
Limitation for Benefit Commencement After Age 65:
A. Limitation Years Beginning
II
Participant's benefit is after age 65 and occurs in a
Benefit Dollar Limitation for the Participant's Annuity
Starting Date is the annual amount of a benefit payable in
the form of a Straight Life Annuity commencing at the
Participant's Annuity Starting Date that is the actuarial
equivalent of the Defined Benefit Dollar Limitation
(adjusted under (1) above for Years of Participation less
than ten, if required) with actuarial equivalence computed
using whichever of the following produces the smaller
annual amount: (i) the interest rate and the mortality table
(or other tabular factor) specified in the Ran for purposes of
determining actuarial equivalence for late retirement
benefits; or (ii) a 5 percent interest r . . . . .
Applicable Mortality Table.
B. Limitation Years Beginning
On-of-After July 1. 2007.
I. Plan Does Not Have Immediately
Age 65 and the Age of Benefit Commencement. If
the Annuity Starting Date for the Participant's
benefit is after age 65 and occurs in a Limitation
Plan does not have an immediately commencing
Straight Life Annuity . payable at both age 65 and
the age of benefit commencement, the Defined
Benefit Dollar Limitation at the Participant's
Annuity Starting Date is the annual amount of a
benefit payable in the form of a Straight Life
Annuity commencing at the Participant's Annuity
Starting Date that is the actuarial equivalent of the
.
(1) above for Years of Participation less than ten, if
required) with actuarial equivalence computed
using a 5 percent interest rate assumption and the
Applicable Mortality Table for that Annuity
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Starting Date (and expressing the Participant's age
based on completed .calendar months as of the
Annuity Starting Date).
II. Plan Has
• • - •
Commencement. If the Annuity Starting Date for
the Participant's benefit is after age 65 and occurs in
a Limitation Year beginning on or after July 1,
2007, and the Plan has an immediately commencing
Straight Life Annuity payable at both age 65 and
the age of benefit commencement, the Defined
Benefit Dollar Limitation at the Participant's
Annuity Starting Date is the lesser of the limitation
determined under (2)(il)B.L above and the Defined
Benefit Dollar Limitation (adjusted under (1) above
for Years of Participation less than ten, if required)
multiplied by the ratio of the annual amount of the
adjusted immediatefy commencing Straight Life
Annuity under the Plan at the Participant's Annuity
Starting Date to the annual amount of the adjusted
immediately commencing Straight Life Annuity
under the Plan at age 65, both determined without
purpose, the adjusted immediately commencing
Straight Life Annuity under the Plan at the
Participant's Annuity Starting Date is the annual
computed disregarding the Participant's accruals
after age 65 but including actuarial adjustments
even if those actuarial adjustments are used to offset
accruals; and the adjusted immediately commencing
Straight Life Annuity under the Plan at age 65 is the
annual amount of such annuity that would be
payable under the Plan to a hypothetical Participant
who is age 65 and has the same accrued benefit as
the Participant.
(iii) Notwithstanding the other requirements of
this (2), no adjustment shall be made to the Defined Benefit Dollar
Limitation to reflect the probability of a Participant's death
and the Annuity Starting Date, as applicable, if benefits are not
forfeited upon the death of the Participant prior to the Annuity
Starting Date. To the extent benefits are forfeited upon death
before the Annuity Starting Date, such an adjustment shall be
made. For this purpose, no forfeiture shall be treated as occurring
upon the Participant's death if the Plan does not charge Participants
Code Section 417(c), upon the Participant's death.
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(3) Minimum, benefits permitted: Notwithstanding anything
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
Limitation Year under any form of benefit with respect to such
(without regard to whether a plan has been terminated) ever
maintained by the Employer do not exceed $10,000 multiplied by a
fraction, (1) the numerator of which is the Participant's number of
Years of Service (or part thereof, but not less than one year) with
the Employer(not to exceed ten), and (2) the denominator of which
is 10: and
(ii) the Employer (or a Predecessor Employer)
has not at any time maintained a defined contribution plan in
employee contributions under a defined benefit plan are not
considered a separate defined contribution plan). The amount In (I)
above shall be equal to $10,000 when determining the minimum
benefit for survivor and disability benefits as provided in Code
Section 415(b)(2)(1).
Predecessor Employer means, with respect to a Participant, a former
employer if the Employer maintains a plan that provides a benefit which the
Participant accrued while performing services for the former employer.
Predecessor Employer also means, with respect to a Participant, a former entity
that antedates the Employer if, under the facts and circumstances, the Employer
constitutes a continuation of all or a portion of the trade or business of the former
entity.
Severance from Employment m-ans an employee has ceased to be an
. ; e of the Employer maintaining the plan. An employee does not have a
Severance from Employment If. in connection with a change of employment, the
employee's new employer maintains the plan with respect to the employee.
Straight Life Annuity means an annuity payable in equal installments for
the life of the Participant that terminates upon the Participant's death.
Year of Participation m ans one year (computed to fractional parts of a
year) for each Plan Year for which the following conditions are met:
(1) the Participant is credited with Credited Service for benefit
accrual purposes, and
(2) the Participant is included as a Participant under the
eligibility provisions of the Plan for at 1 ast one day of the Plan Year.
If these two conditions arc met, the portion of a Year of Participation
credited to the Participant shall equal the amount of Credited Service credited to
-- '• - . - . - -ar. A Participant who is totally and permanently
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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
will more than one Year of Participation be credited for any 12 month period.
Year of Service means, for purposes of the definition of Maximum
Plan Year for which the Participant is credited with Credited Service for benefit
accrual purposes, taking into account only service with the Employer or a
Predecessor Employer.
(b) The Annual Benefit otherwise payable to a Participant at any time will not
exceed the Maximum Permissible Benefit.
(c) If the Participant is, or has ever been, a participant in another qualified
defined benefit plan (without regard to whether the plan has been terminated)
maintained by the Employer or a Predecessor Employer, the sum of the
Participant's Annual Benefits from all such plans may not exceed the Maximum
Permissible Benefit Where the Participant's employer provided benefits under all
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 alt such
plan(s) does not exceed the Maximum Permissible Benefit.
(d) The application of the provisions of this section shall not cause the
Maximum Permissible Benefit for any Participant to be less than the Participant's
accrued benefit under alt the defined benefit plans of the Employer or a
Predecessor Employer as of the end of the last Limitation Year beginning before
July 1, 2007 under the provisions of the plans that were both adopted and in effect
before April 5, 2007. The preceding sentence applies-only if the provisions of
such defined benefit plans that were both adopted and In effect before April 5,
2007 satisfied the applicable requirements of statutory provisions, regulations,
and other published guidance relating to Code Section 415 in effect as of the end
of the last Limitation Year beginning before July 1, 2007, as described in section
1.415(a) 1 (g)(4) of the regulations.
(e) The limitations of this section shall be determined and applied taking into
account the rules in(f)below.
(f) Other Rules.
(1) Benefits under Terminated Plans. If a defined benefit plan
maintained by the Employer has terminated with sufficient assets for the
the plan has not yet commenced benefits under the plan, the benefits
provided pursuant to the annuities purchased to provide the participant's
benefits under the terminated plan at each possible annuity starting date
shall be taken into account in applying the limitations of this section. If
there are not sufficient assets for the payment of all participants' benefit
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liabilities, the benefits taken into account shall be the benefits that are
(2) Benefits Transferred From the Plan. a participant's
transferred to another defined benefit plan maintained by the Employer
and the transfer is not a transfer of distributable benefits pursuant to
- e : • -- - transferred benefits
into account as benefits provided under the transferee plan). If a
participant's benefits under a defined benefit plan maintained by the
Employer are transferred to another defined benefit plan that is not
maintained by the Employer and the transfer is not a transfer of
distributable benefits pursuant to section 1.411(d) 1, Q&A 3(c), of the
regulations, the transferred benefits are treated by the Employer's plan as
if such benefits were provided under annuities purchased to provide
benefits under a plan maintained by the Employer that terminated
immediately prior to the transfer with sufficient assets to pay all
another defined benefit plan in a transfer of distributable benefits pursuant
to section 1.111(d) 4. Q&A 3(c), of the regulations, the amount
(3) Formerl Affiliated Plans of the Em•lo er. A Formerly
Affiliated Plan of the Employer shall be treated as a plan maintained by
the Employer, but the Formerly Affiliated Plan shall be treated as if it had
terminated immediately prior to the cessation of affiliation with sufficient
assets to pay participants' benefit liabilities under the plan and had
purchased annuities to provide benefits.
(4) Plans of a Predecessor Employer. If the Employer
participant while performing services for a Predecessor Employer, the
participant's benefits under a plan maintained by a Predecessor Employer
shall be treated as provided under a plan maintained by the Employer.
However, for this purpose, the plan of the Predecessor Employer shall be
treated as if it had terminated immediately prior to the event giving rise to
the Predecessor Employer relationship with sufficient assets to pay
to provide benefits; the Employer and the Predecessor Employer shall be
treated as if they were a single employer Immediately prior to such event
giving rise to the predecessor relationship is a benefit transfer, the
transferred benefits shall be excluded in determining the benefits provided
under the plan of the Predecessor Employer.
determined and applied taking into account the rules in section 1.115(f)
- . -_ .
(6) Aggregation with Multiemployer Plans.
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(i) If the Employer maintains a multiemployer
plan, as defined in Code Sectio , . . •- . - • . .
plan so provides, only the benefits under the multiemployer plan
that are provided by the Employer shall be treated as benefits
provided under a plan maintained by the Employer for purposes of
this section.
(ii) Effective for Limitation Years ending after
- II .
purposes of item (1) of the Maximum Permissible Benefit
(a) 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(2(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
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:
fp 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
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(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:
(i) 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,
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
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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.
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
(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.
(e) Other Adjustments in Limitations.
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(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
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.
(f) 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
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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).
(i) 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
priority pursuant to the agreement of the Board and the plan administrator of all other plans
covering such Member.
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:
ti) 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—
(.1_) 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
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(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.
(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).
CO 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(f)(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
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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.
(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:
(i) 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 Councilman Emter 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 talho�; , - with Second by l.Qur)eiuounan"l cujc r
the vote on the second reading/public hearing of this ordinance held on 00tober
2013, was as follows:
AYE NAY
Mayor Mike Thomas X
Councilwoman Christine Power X
Councilwoman Gigi Bennington X
Councilman Mike Ignasiak �(
Councilman Gene Emter X
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PASSED AND DULY ADOPTED this `7+h day of V ber , 2013.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGE • ' , FLORIDA
- AL Y . fk■
Bonnie Wenzel ke Th
City Clerk Ma or
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 rim day
legality by: Aaron R. Wolfe, Esquire of[ rJ-j- , 2013 under Agenda Item No.
City Attorney 8 e .
Doran, Sims, Wolfe&Kundid
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