2016-O-34 ORDINANCE #2016-0-34
AN ORDINANCE OF THE CITY OF EDGEWATER REPEALING
ORDINANCE NUMBERS 99-0-08 and 2000-0-14, IN THEIR ENTIRETY
AND AMENDING, RESTATING AND ADOPTING THE CITY OF
EDGEWATER, FLORIDA, POLICE OFFICERS PENSION PLAN;
PROVIDING FOR FILING WITH THE DIVISION OF RETIREMENT OF
THE FLORIDA DEPARTMENT OF MANAGEMENT SERVICES;
PROVIDING FOR CONFLICTING PROVISIONS, SEVERABILITY,
APPLICABILITY; PROVIDING FOR AN EFFECTIVE DATE AND FOR
ADOPTION.
WHEREAS, the City Council of the City of Edgewater, Florida has made the following
determinations:
1. On September 13, 1999, City Council adopted Ordinance No. 99-0-08, which
amended and restated the City of Edgewater, Police Officers Pension Fund.
2. On September 11, 2000, City Council adopted Ordinance No. 2000-0-14 which
modified sections of Ordinance No. 99-0-08.
3. On March 14, 2016, the Trustees of the City of Edgewater Police Officers
Pension Plan approved such amendment/restatement as being in the best interests of the
participants and beneficiaries as well as improving the administration of the Plan.
4. The City Council has received and reviewed an actuarial impact statement related
to this change and has determined there is no actuarial impact to the Plan.
5. In an effort to comply with this objective it is necessary to modify our Police
Officers Pension Plan accordingly and thereby repeal Ordinance #99-0-08 and #2000-0-14 and
restate the Plan.
NOW, THEREFORE, BE IT ENACTED BY THE CITY
COUNCIL OF THE CITY OF EDGEWATER, FLORIDA
PART A. REPEAL OF ORDINANCE NOS. 99-0-08 and 2000-0-14 IN THEIR
ENTIRETY
Ordinance Nos. 99-0-08 and 2000-0-14 are hereby repealed.
PART B. RESTATEMENT OF CITY OF EDGEWATER, FLORIDA,
POLICE OFFICERS PENSION PLAN
The restatement of City of Edgewater, Florida, Police Officers Pension Plan, attached
hereto and incorporated herein by reference as Exhibit"A" is hereby adopted.
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PART C. FILING WITH THE DIVISION OF RETIREMENT
Upon adoption, a copy of this Ordinance shall be filed with the Division of Retirement of
the Florida Department of Management Services.
PART D. CONFLICTING PROVISIONS
All conflicting ordinances and resolutions, or parts thereof in conflict with this ordinance,
are hereby superseded by this ordinance to the extent of such conflict.
PART E. SEVERABILITY AND APPLICABILITY
If any portion of this ordinance is for any reason held or declared to be unconstitutional,
inoperative, or void, such holding shall not affect the remaining portions of this ordinance. If
this ordinance or any provisions thereof shall be held to be inapplicable to any person, property,
or circumstances, such holding shall not affect its applicability to any other person, property, or
circumstance.
PART F. EFFECTIVE DATE
This Ordinance shall take effect upon adoption.
PART G. ADOPTION
After Motion by Councilwoman Power with Second by Councilman Blazi the vote on
first reading of this ordinance held on May 2, 2016 was as follows:
AYE NAY
Mayor Mike Ignasiak X
Councilwoman Christine Power X
Councilwoman Gigi Bennington ABSENT
Councilman Dan Blazi X
Councilman Gary T. Conroy X
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After Motion by CCIL,Y►d_r r - ���r � with Second by
the vote on second
reading/public hearing of this ordinance held on rpAoz- r-. ILL , 2016 was as
follows:
AYE NAY
Mayor Mike Ignasiak N
Councilwoman Christine Power
Councilwoman Gigi Bennington
Councilman Dan Blazi
Councilman Gary T. Conroy N
PASSED AND DULY ADOPTED this 1'4-1 day of / r ;`,) ,2016.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
By:Ae
/ ��
Robin Matusick Mike Ignasia
City Clerk/l'aralegal Mayor
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 1A day
legality by: Aaron R. Wolfe, Esquire of —.doe;.-,& ; , 2016 under
City Attorney AgendCa Item No. 8 h4 .
Doran, Sims, Wolfe&Ciocchetti
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Underlined passages are added.
EXHIBIT"A"
CITY OF EDGEWATER, FLORIDA
POLICE OFFICERS PENSION PLAN
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Underlined passages are added.
CITY OF EDGEWATER, FLORIDA
POLICE OFFICERS' PENSION PLAN
Restated effective January 1, 2016
TABLE OF CONTENTS
INTRODUCTION
ARTICLE I FORMAT AND DEFINITIONS
Section 1 .01 --
Format 1
Section 1.02 --
Definitions 1
ARTICLE II PARTICIPATION
Section 2.01 -- Active
Participant 13
Section 2.02 -- Inactive
Participant 14
Section 2.03 -- Cessation of
Participation 14
ARTICLE III CONTRIBUTIONS
Section 3.01 -- Employee
Contributions 15
Section 3.01A -- Required Contributions by
Participants 15
Section 3.01 B -- State Contributions
15
Section 3.01C -- Other
Contributions 16
Section 3.02 -- Investment of Contributions
16
ARTICLE IV RETIREMENT BENEFITS
Section 4.01 -- Accrued
Benefits 19
Section 4.02 -- Benefit
Limitation 19
Section 4.03 -- Amount of Benefit at Retirement
38
Section 4.04 -- Temporary Limitation of
Benefits 40
Section 4.05 -- Benefits upon Reemployment after Retirement
Date 43
Section 4.06 -- Supplemental
Benefit 43
ARTICLE V OTHER BENEFITS
Section 5.01 -- Death
Benefits 45
Section 5.02 -- Vested
Benefits 47
Section 5.03 -- Disability
Benefits 49
ARTICLE VI WHEN BENEFITS START AND DISTRIBUTIONS OF BENEFITS
Section 6.01 -- When Benefits
Start 51
Section 6.02 -- Automatic Forms of Distribution
51
Section 6.03 -- Optional forms of Distribution and Distribution
Requirements
51
Section 6.04 -- Election Procedures
62
ARTICLE VII TERMINATION OF PLAN
65
ARTICLE VIII ADMINISTRATION OF THE PLAN
Section 8.01 -- Board of
Trustees 66
Section 8.02 --
Records 69
Section 8.03 -- Information Available
70
Section 8.04 -- Delegation of
Authority 70
ARTICLE XI GENERAL PROVISIONS
Section 9.01 --
Amendments 71
Section 9.02 -- Direct
Rollovers 71
Section 9.03 -- Provisions relating to the Insurer
71
Section 9.04 -- Employment
Status 72
Section 9.05 -- Rights to Plan
Assets 72
Section 9.06 -- Beneficiary
72
Section 9.07 -- No alienation of Benefits
73
Section 9.08 -- Construction
73
Section 9.09 -- Legal Actions
73
Section 9.10 -- Small Amounts
73
Section 9.11 -- Word Usage
74
ADOPTION OF PLAN (Signature
Page) 75
INTRODUCTION
The Employer previously established a defined benefit retirement plan on
February 1, 1978. On September 13, 1999, the Employer restated the plan in
ordinance 99-0-08. The Employer has since passed several substantial
amendments to the plan restatement.
The Employer is of the opinion that the plan should be again restated to
promote clarity and the efficient operation of the plan. This restatement removes
several anachronisms that no longer apply to any current or future plan participants
and corrects various scriveners' errors. It incorporates all amendments that the
City Council passed after the 1999 restatement. including amendments that
implemented the provisions of Chapter 185, Florida Statutes, created a DROP
benefit, allowed for the purchase of credited service for certain past military and
police service. updated Section 415 limitation language, among others. This
restatement also incorporates recent changes to state law, such as the limitation
on the definition of compensation.
The restated plan continues to exist for the exclusive benefit of employees
of the Employer. All persons covered under the plan on the effective date of the
restatement shall continue to be covered under the restated plan with no loss of
benefits.
It is intended that the plan. as restated. shall continue to meet the
requirements for a qualified governmental retirement plan under section 414(d)
and 401(a) of the Internal Revenue Code of 1986, including any later amendments
to the Code.
ARTICLE I
ARTICLE I
FORMAT AND DEFINITIONS
SECTION 1.01—FORMAT
Words and phrases defined in the DEFINITIONS SECTION of Article I shall have
that defined meaning when used in this Plan, unless the context clearly indicates
otherwise.
These words and phrases will have an initial capital letter to aid in identifying them
as defined terms.
SECTION 1.02—DEFINITIONS
The provisions of Chapter 185. Florida Statutes, shall be effective and constitute
the City of Edgewater, Florida Police Officers' Pension Fund except as specifically
set forth herein. Accordingly, Chapter 185, Florida Statutes (1997) are attached
hereto and incorporated by reference. This Pension Fund may be amended at any
time by the city council enacting an appropriate ordinance. provided that such
amendment complies with the Internal Revenue Code, Florida Statutes, and other
applicable laws. The Board of Trustees may make recommendations by a majority
vote to the city council concerning proposed pension plan amendments.
ACCRUAL SERVICE means the total of an Employee's Continuous Service as a
Law Enforcement Officer, expressed as whole years and fractional parts of a year
(to two decimal places) on the basis that 365 days equal one year. Such total shall
equal one year. Such total shall be equal to the period from his the Employee's
Employment Commencement Date to the date of determination.
However, Accrual 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.
Prior service purchase:
A police officer may purchase up to a combined total of five (5) years of
Accrual Service for service in the Armed Forces of the United States or
service as a police officer for some other employer prior to employment with
the Employer, provided:
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ARTICLE I
L). the police officer is not entitled to receive a retirement benefit
for such other prior service in another governmental pension
plan, and
ii the police officer purchases such prior military or prior other
police officer service at the full actuarial cost of such Accrual
Service.
Voluntary nonparticipation service excluded: Service when an Employee elected
not to participate in the Plan is excluded.
ACCRUED BENEFIT means the amount of monthly retirement benefit on the
Normal Form accrued by an Active Participant as of any date. See the ACCRUED
BENEFIT SECTION of Article IV.
ACTIVE PARTICIPANT means an Eligible Employee who is actively participating
in the Plan according to the provisions of the ACTIVE PARTICIPANT SECTION of
Article II.
ACTUARIAL EQUIVALENT means equality in the values of the aggregate
rates determined below. The amount of each payment under an optional form shall
- - - . •. . •
Form. to (b) the purchase rate available under such Group Contract for the optional
form at the time benefits are determined. The benefit from a single sum on an
optional form shall be the Actuarial Equivalent of the benefit payable on the Normal
Form based on the purchase rates available under such Group Contract. This is a
except as provided in the AMENDMENTS SECTION of Article IX. On and after
March 1. 1992, these applicable rates will be determined using the rates of interest
and mortality (weighted .65 male and .35 female) used (as of the Annuity Starting
Date) by the Pension Benefit Guaranty Corporation for a trusteed single employer
plan to value a benefit upon termination of an insufficient trusteed single employer
plan. In the event the basis for determining Actuarial Equivalence is changed,
Actuarial Equivalent of the Participant's Accrued Benefit on and after the date of
the change shall be determined as the gr ater of(a) the Actuarial Equivalent of the
Actuarial Equivalent of the Total Accrued Benefit computed on the new basis..
Actuarial Equivalent means a benefit or amount of equal value. based upon the
RP2000 Combined Healthy Mortality Table and an interest rate equal to the
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ARTICLE I
investment return assumption adopted by the Board of Trustees with the latest
approved actuarial valuation.
ANNUITY STARTING DATE means, for a Participant. the first day of the first
period for which an amount is paid as an annuity or any other form.
AVERAGE COMPENSATION means, on any given date, the average of an
Employee's Monthly Compensation for those three Compensation Years (all
Compensation Years, if less than three) which give the highest average out of the
five latest Compensation Years (all Compensation Years, if less than five) before
the earlier of such given date, or his Normal Retirement Date.
In computing Average Compensation on any given date before the first Yearly Date
in 1994, the Plan will include only Compensation Years ending before such given
date. In computing Average Compensation on any given date on or after the first
Yearly Date in 1994, the Plan will exclude Compensation Years in which the
Employee terminates employment with the Employer.
BENEFICIARY means the person or persons named by a Participant to receive
any benefits under the Plan upon the Participant's death. See the BENEFICIARY
SECTION of Article IX.
CITY means the City of Edgewater, Florida.
CODE means the Internal Revenue Code of 1986, as amended.
COMPENSATION means. except as modified in this definition. the total earnings
paid or made available to an Employee by the Employer during any specified
period. For service earned on or after July 1 , 2011 , Salary shall not include more
than three hundred (300) hours of overtime per calendar year. Provided however,
in any event, payments for overtime in excess of three hundred (300) hours per
year accrued as of October 1, 2012 and attributable to service earned prior to the
October 1 , 2012, may still be included in Salary for pension purposes even if the
payment is not actually made until on or after October 1 . 2012. In any event. with
respect to unused sick leave and unused annual leave accrued prior to October 1 ,
2012, Salary will include the lesser of the amount of sick or annual leave time
accrued on October 1 . 2012 or the actual amount of sick or annual leave time for
which the retiree receives payment at the time of retirement. but in no case may
such time be replenished for purposes of pensionable salary if the time was
reduced below the level as determined on October 1 , 2012.
Except as otherwise provided herein, "€earnings" in this definition means all wages
as reported in the wages, tips and other compensation box on form W-2 for Federal
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ARTICLE I
income tax withholding purposes, as defined under Code Section 3401(a) (for
purposes of income tax withholding at the source), disregarding any rules limiting
the remuneration included as wages based on the nature or location of the
employment or the services performed. Earnings also include all other payments
to an Employee in the course of the Employer's trade or business, for which the
Employer must furnish the Employee a written statement under Code Sections
6041(d) and 6051(a)(3).
Compensation shall also include elective contributions. Elective contributions are
amounts excludable from the Employee's gross income under Code Sections 125,
402(a)(8), 402(h), or 403(b), and contributed by the Employer. at the Employee's
election, to a Code Section 401(k) arrangement, a simplified employee pension,
cafeteria plan or tax-sheltered annuity. Elective contributions also include
Compensation deferred under a Code Section 457 plan maintained by the
Employer and Employee contributions 'picked up" by a governmental entity and,
pursuant to Code Section 414(h)(2), treated as Employer contributions.
COMPENSATION YEAR means a consecutive one-year (twelve-month) period
ending on June 30. Before the first Yearly Date in 1994, Compensation Year
means a one-year period ending on the June 30 immediately before an
Employee's Entry Date and ending on the same date of each following year on
which he is an Active Participant. After 1994, Compensation Year means a
consecutive one-year (twelve-month) period immediately preceding a Participant's
Retirement Date.
CONTINGENT ANNUITANT means an individual named by the Participant to
receive a lifetime benefit after the Participant's death according to a survivorship
life annuity form of distribution.
CONTINUOUS SERVICE means, for a Participant, any period of uninterrupted
service with the Employer.
For purposes of this definition, no interruption in service will occur because of
approved periods of absence from the Employer due to temporary layoff. leave of
absence (not to exceed one year), or a temporary absence due to illness or injury.
CONTRIBUTIONS means
Employer Contributions
Required Contributions
State Contributions
Other Contributions
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ARTICLE I
As set out in Article III, unless the context clearly indicates otherwise.
DIRECT ROLLOVER means a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.
DISTRIBUTEE means the Employee or former Employee. In addition, the
Employees or former Employees surviving spouse and the Employee's or former
Employees spouse or former spouse who is the alternative payee under a
qualified domestic relations order, as defined in Code Section 114(p) an Income
Deduction Order, are Distributees with regard to the interest of the spouse or
former spouse.
DROP (Deferred Retirement Option Program) means that a police officer may
retire for all purposes of the plan and defer receipt of retirement benefits into a
DROP account while continuing employment with the City.
EARLY RETIREMENT DATE means the earliest first day of the month on or after
the Participant reaches the age of fifty (50) and attains five (5) years of service with
the Employer.
ELIGIBLE RETIREMENT PLAN means an individual retirement account
described in Code Section 408(a), an individual retirement annuity described in
Code Section 408(b), an annuity plan described in Code Section 403(a) or a
qualified trust as described in Code Section 401(a) that accepts the Distributee's
Eligible Rollover Distribution.
However, in the case of an Eligible Rollover Distribution to the surviving spouse,
an Eligible Retirement Plan is an individual retirement account or individual
retirement annuity.
ELIGIBLE ROLLOVER DISTRIBUTION means any distribution of all or any
portion of the balance to the credit of the Distributee, except that an Eligible
Rollover Distribution does not include:
(a) Any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life
expectancy) of the Distributee or the joint lives (or joint life expectancies)
of the Distributee and the Distributee's designated Beneficiary. or for a
specified period of ten years or more.
(b) Any distribution to the extent such distribution is required under Code
Section 401(a)(9).
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ARTICLE I
EMPLOYER means the City Council of the City of Edgewater, Florida.
FUND means the trust fund created as part of this Plan which shall receive, hold,
and invest all contributions and assets attributable to the Plan, and from which
benefits and expenses shall be paid.
MONTHLY DATE means each Yearly Date and the same day of each following
month during the Plan Year beginning on such Yearly Date.
NORMAL FORM means a straight ten (10) year certain and life annuity.
NORMAL RETIREMENT DATE means the earliest first day of the month on or
after the date e4 the Participant reaches the earlier of (ti) age 55 and the date he
completes 5 years of credited service with the Employer, or (ii) the date he
completes 20 years of credited service with the Employer. Unless otherwise
provided in this Plan, a Participant's retirement benefits shall begin on his Normal
Retirement Date if he has ceased to be an Employee on such date. See the WHEN
BENEFITS START SECTION of Article VI.
OTHER CONTRIBUTIONS means contributions from persons or entities other
than the State of Florida, City of Edgewater, or Plan Participants.
PARTICIPANT means either an Active Participant or an Inactive Participant.
PARTICIPANT CONTRIBUTIONS means with Required Contributions as set out
in Article Ill.
PERIOD OF MILITARY DUTY means, for an Employee,
(a) who served as a member of the armed forces of the United States, and
(b) who was reemployed by the Employer at the time when the Employee
had a right to reemployment in accordance with seniority rights as
protected under Section 2021 through 2026 of Title 38 of the U.S. Code,
the Uniformed Services Employment and Reemployment Act
(USERRA) Section 4301 through 4333 of Title 38 of the U.S. Code and
Chapter 185 of the Florida Statutes.
the period of time from the date the Employee was first absent from active work
for the Employer because of such military duty to the date the Employee was
reemployed.
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ARTICLE I
A police officer may purchase Accrual Service for service with the Armed Forces
of the United States or prior service as a police officer for some other employer
prior to employment provided: (i) the police officer is not entitled to receive a
retirement benefit for such other prior service as a police officer, and (ii) the police
officer purchases such prior military or prior other police officer service at the full
actuarial cost of such Accrual Service. Payment for such purchase of prior service
shall be made. at the option of the police officer, as a lump sum payment or
installments that shall be paid over a period of time up to retirement. Installment
payments shall be subject to interest in an amount to be established by the Board
of Trustees, not to exceed the annual actuarial assumption rate for the Plan. Full
payment for such prior service purchase shall be made before crediting the
service.
PLAN means the defined benefit retirement plan of the Employer set forth in this
document, including any later amendments to it.
PLAN ADMINISTRATOR means the person or persons who administer the Plan.
The Plan Administrator is the City of Edgewater. Florida Police Officers' Pension
Fund Board of Trustees. See the BOARD OF TRUSTEES SECTION of Article VIII.
PLAN PARTICIPATION means the period of time during which a Participant has
been an Active Participant.
PLAN YEAR means a period beginning on a Yearly Date and ending on the day
before the next Yearly Date.
PRESENT VALUE means the current value of a benefit payable on a specified
form and on a specified date. The Present Value of any benefit under the terms of
this Plan will be the actuarial equivalent of the benefit payable on the Normal Form.
Actuarial equivalence shall be determined on the basis of the mortality rates
specified in the definition of Actuarial Equivalent, and either the interest rate(s)
specified in the definition of Actuarial Equivalent or the Code Section 417 interest
rate(s), whichever produces the greater benefit.
In addition, the amount of any distribution under the terms of this Plan will be
determined in accordance with the preceding paragraph.
The two preceding paragraphs shall not apply to the extent they would cause the
Plan to fail to satisfy the requirements of the BENEFIT LIMITATION SECTION of
Article IV.
The Code Section 417 interest rate(s) are:
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ARTICLE I
(a) the applicable interest rate if the Present Value of the benefit (using such
rate(s)) is not in excess of $25,000; or
(b) 120 percent of the applicable interest rate if the Present Value of the
benefit exceeds $25,000 (as determined under (a) above). In no event
shall the Present Value determined under this (b) be less than $25,000.
The applicable interest rate is the interest rate(s) which would be used (as of the
Annuity Starting Date) by the Pension Benefit Guaranty Corporation for a trusteed
single-employer plan to value a benefit upon termination of an insufficient trusteed
single-employer plan.
Before March 1. 192, Present Value is determined in accordance with the
provisions of the Plan as in effect on September 30. 1889.
PRIMARY EMPLOYER means City of Edgewater. Florida.
QUALIFIED JOINT AND SURVIVOR FORM means, for a Participant who has a
spouse designated a beneficiary, an immediate survivorship life annuity, where the
survivorship percentage is 50% and the Contingent Annuitant is the Participant's
spouse of the accrued benefit of the Participant. If a Participant does not have a
spouse designated beneficiary or a contingent beneficiary, the Qualified Joint and
Survivor Form mains the Normal Form shall become part of the Participant's
estate.
This Qualified Joint and Survivor Form shall be at least the Actuarial Equivalent of
any form of benefit offered under the Plan.
QUALIFIED PRERETIREMENT SURVIVOR ANNUITY means a straight life
annuity payable to the surviving spouse beneficiary of a Participant who dies
• before his Annuity Starting Date. Benefits shall be determined as if the Participant
had ceased to be an Employee on the date of his death (date he last ceased to be
an Employee, if earlier) and survived to the date benefits become payable to the
spouse beneficiary and retired on that date. The monthly benefit payable to the
spouse beneficiary shall be equal to the survivorship percentage of the retirement
benefit that would have been payable to the Participant if his Retirement Date had
occurred on the date benefits start to the spouse beneficiary and he had retired
under the Qualified Joint and Survivor Form. If the Participant elects a survivorship
annuity (where the survivorship percentage is at least 50% and the Contingent
Annuitant is the Participant's spouse beneficiary) and which is at least the Actuarial
Equivalent of the Qualified Joint and Survivor Form for purposes of determining
the Qualified Preretirement Survivor Annuity.
Page 18
ARTICLE I
REENTRY DATE means the date a former Active Participant reenters the Plan.
See the ACTIVE PARTICIPANT SECTION of Article II.
REQUIRED CONTRIBUTIONS means nondeductible contributions required from
a Participant in order to participant in this Plan. See the REQUIRED
CONTRIBUTIONS BY PARTICIPANTS SECTION of Article III.
REQUIRED CONTRIBUTION ACCOUNT means. on any date, the total of a
Participant's Required Contributions. A Participant's Required Contribution
Account shall be reduced by the amount of any distribution of his Required
Contribution Account.
RETIREMENT DATE means the date a retirement benefit will begin and is a
Participant's Early. Normal or Late Retirement Date. as the case may be.
SOCIAL SECURITY RETIREMENT AGE means age 65 in the case of a
Participant attaining age 62 before January 1 , 2000 (i.e., born before January 1,
1-9-38), age 66 for a Participant attaining age 62 after December 31 , 1991, and
before January 1 . 2017 (i.e., born after December 31 . 2016 (i.e., born after
December 31, 1954).
STATE CONTRIBUTIONS means the net proceeds as mutually agreed by the City
of Edgewater and the Police Officers' employee organization of the one percent
excise tax imposed by the City of Edgewater, Florida upon certain
casualty insurance companies on their gross receipts of premiums from holders of
policies, which policies cover property within the corporate limits of the City of
Edgewater, Florida.
TEFRA means the Tax Equity and Fiscal Responsibility Act of 1982.
TEFRA COMPLIANCE DATE means the date a plan is to comply with the
provisions of TEFRA. The TEFRA Compliance Date as used in this Plan is,
(a) for purposes of benefit limitations, Code Section 415,
(1) if the plan was in effect on July 1 , 1982. the first day of the first
limitation year which begins after December 31 . 1982. or
(2) if the plan was not in effect on July 1 , 1982, the first day of the
first limitations year which ends after December 31, 1982, or
(b) for all other purposes, the first Yearly Date after December 31 . 1983.
Page I 9
ARTICLE I
TOTALLY AND PERMANENTLY DISABLED means that A a Police Officer that
is considered Disabled when he or she bccomec; totally and permanently unable
to perform useful and efficient service as a Police Officer. A written application is
made to the Board of Trustees for a Disability Pension and the Board decides
whether or not the pension is to be granted.
VESTING PERCENTAGE means the percentage used to determine that portion
of a Participant's Accrued Benefit resulting from Employer Contributions which is
nonforfeitable (cannot be lost since it is vested).
A Participant's Vesting Percentage is shown in the following schedule opposite the
number of whole years of his Plan Participation.
PLAN PARTICIPATION VESTING
(whole years) PERCENTAGE
Less than 5 0
5 or more 100
However, the Vesting Percentage for a Participant who is an Employee on or after
the earlier of (i) the date he reaches his Normal Retirement Date or (ii) the date he
meets the requirement(s) for an Early Retirement Date. shall be 100% on such
date.
VOLUNTARY DISCONTINUANCE DATE means the date a Participant fails or
refuses to make a Required Contribution.
YEARLY DATE means February 1 , 1978, and each following October 1.
YEARS OF SERVICE means - - - - - -- --- - • - - -- - - -
modification which exclude service. the total number of years and fractional parts
of years of service as a police officer with Participant contributions. when required.
omitting intervening years or fractional parts of years when such Participant was
not employed by the city as a police officer. A Participant 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 Participant of the Plan. If a vested
Participant leaves the employ of the city, his accumulated contributions will be
returned only upon his written request. If a Participant who is not vested is not
reemployed as a police officer with the city within five (5) years, his accumulated
contributions, if more than one thousand dollars (S1,000.00), will be returned only
upon the written request of the Participant and upon completion of a written
Page 110
ARTICLE I
election to receive a cash lump sum or to rollover the lump sum amount on forms
designated by the Board. Upon return of a Participant's accumulated contributions.
all of his rights and benefits under the Plan are forfeited and terminated.
The years or parts of a year that a Participant 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 police officer to perform
training or service, shall be added to his years of service for all purposes, including
vesting, provided that:
(a) The Participant is entitled to reemployment under the provisions of
USER RA.
(b) The Participant 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.
Lt The Participant deposits into the fund the same sum that the
Participant 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
Participant 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 Participant dies on or after January 1. 2007, while performing
USERRA Qualified Military Service. the beneficiaries of the Participant are entitled
to any benefits (other than benefit accruals relating to the period of qualified military
service) as if the Participant 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
Page 111
ARTICLE I
Code. This provision shall be applied to all similarly situated individuals in a
reasonably equivalent manner.
Page 1 12
ARTICLE II
ARTICLE II
PARTICIPATION
SECTION 2.01—ACTIVE PARTICIPANT
(a) An Employee shall first become an Active Participant (begin active
participation in the Plan) on the earliest Monthly Date on or after October 1 . 1989.
on which he is an Eligible Employee and has met the eligibility requirements below
becomes an Employee of the City (becomes an Eligible Employee). This date is
his Entry Date.
(2) He is age 18 or older.
Each Employee who was an Active Participant under the Plan on
September 30. 1989. shall continue to be an Active Participant if he is still an
Eligible Employee on October 1, 1989, and his Entry Date will not change.
(b) An Inactive Participant shall again become an Active Participant
(resume active participation in the Plan) on the date he again becomes an Eligible
Employee. This date is his Reentry Date.
Upon again becoming an Active Participant. he shall cease to be an Inactive
Participant.
(c) A former Participant shall again become an Active Participant
(resume active participation in the Plan) on the date he again becomes an Eligible
Employee. This date is his Reentry Date.
An Active Participant or an Eligible Employee who is promoted to or
employed by the Employer as police chief may elect not to be an Active Participant
in the event he has elected to participate in another pension program offered by
the Employer. The election shall be irrevocable and must be made within the first
365 days of employment as police chief: the election shall be submitted to the
Employer and Plan Administrator specifying that he will not be an Active Participant
in this plan. Provided that the police chief at the time of enactment of this provision
shall have up to 365 days from enactment of this provision to execute such
decision.
There shall be no duplication of benefits for a Participant under this Plan
because of more than one period as an Active Participant.
Page 13
ARTICLE II
SECTION 2.02—INACTIVE PARTICIPANT
An Active Participant shall become an Inactive Participant (stop accruing
benefits under the Plan) on the earliest of the following:
(a) The date on which he ceases to be an Eligible Employee (on his
Retirement Date if he ceases to be an Eligible Employee within one
month of his Retirement Date).
(b) The effective date of complete termination of the Plan.
An Employee or former Employee who was an Inactive Participant under
the Plan on September 30. 1989, shall continue to be an Inactive Participant on
October 1 , 1989. Eligibility for any benefits payable to him or on his behalf and the
amount of the benefits shall be determined according to the provisions of the prior
document, unless otherwise stated in this Plan.
SECTION 2.03—CESSATION OF PARTICIPATION
A Participant, whether active or inactive, shall cease to be a Participant on
the earliest of the following:
(a) The date of his death.
(b) His Voluntary Discontinuance Date.
(c) The date he receives a single sum distribution which is in lieu of all
his benefits under the Plan if his Vesting Percentage is 100%.
An Inactive Participant shall also cease to be a Participant on the earliest
date on which he is not entitled to a deferred monthly income under the VESTED
BENEFITS SECTION OF of Article V.
Page 14
ARTICLE III
ARTICLE III
CONTRIBUTIONS
SECTION 3.01—EMPLOYER CONTRIBUTIONS
The amount and time of Employer Contributions shall be determined based
on actuarial valuations and applicable law as to the amounts required to fund
benefits under this Plan. Dividends declared under the Group Contract and
A portion of the Plan assets resulting from Employer Contributions (but not
more than the original amount of those Contributions) may be returned if the
Employer Contributions are made because of a mistake of fact. The amount
involved must be returned to the Employer within one year after the date the
Employer Contributions are made by mistake of fact. Except as provided under
this paragraph and in Article VII, the assets of the Plan shall never be used for the
benefit of the Employer and are held for the exclusive purpose of providing benefits
to Participants and their Beneficiaries and for defraying reasonable expenses of
administering the Plan.
SECTION 3.01A—REQUIRED CONTRIBUTIONS BY PARTICIPANTS
Each Eligible Employee shall make Required Contributions as of the date
he enters the Plan. These Contributions shall be made for each pay period in which
he is an Eligible Employee.
The amount of each Contribution shall be equal to 4% 63/0 of hi-s
Compensation for the pay period.
A Participant shall not make Required Contributions during any period he is
receiving disability payments under the DISABILITY BENEFITS SECTION of
Article V or, on or after his Normal Retirement Date.
The Participant's Required Contribution Account is fully (100%) vested and
nonforfeitable at all times.
SECTION 3.01 B—STATE CONTRIBUTIONS.
Any monies received or receivable by reason of laws of the State of Florida.
for the express purpose of funding and paying for retirement benefits for Police
Officers of the City of Edgewater shall be deposited in the Fund comprising part of
this Plan immediately and under no circumstances more than five (5) days after
receipt by the City.
Page 115
ARTICLE III
SECTION 3.01 C—OTHER CONTRIBUTIONS
Private donations, gifts and contributions may be deposited to the Fund, but
such deposits must be accounted for separately and kept on a segregated
bookkeeping basis. Funds arising from these sources may be used only for
additional benefits for Participants, as determined by the Board and may not be
used to reduce what would have otherwise been required City contributions.
SECTION 3.02—INVESTMENT OF CONTRIBUTIONS
A. As part of the Plan, there is hereby established the Fund, into which
shall be deposited all of the contributions and assets whatsoever attributable to the
Plan.
B. The actual custody and supervisions of the Fund (and assets thereof)
shall be vested in the Board of Trustees. Payment of benefits and disbursements
from the Fund shall be made by the disbursing agent but only upon written
authorization from the Board.
C. All funds and securities of the Plan may be deposited by the Board
with the - -- `• . - - -- - _ .- - - , - - - - .. . - •. -
only, who shall be liable in the same manner and to the same extent as he is liable
for the safekeeping of funds of the City. However, any funds and securities so
funds and securities of the Police Officer's Retirement Plan. Plan's custodian.
D. In order to fulfill its investment responsibilities as set forth herein, the
Board may retain the services of a custodian bank, an investment advisor
registered under the Investment Advisors Act of 1940 or otherwise exempt from
such required registration, an insurance company, or a combination of these, for
the purposes of investment decisions and management. Such investment
manager shall have discretion, subject to any guidelines as prescribed by the
Board, in the investment of all Fund assets.
E. All funds and securities of the Plan may be commingled in the Fund,
provided that accurate records are maintained at all times reflecting the financial
composition of the Fund. including accurate current accounts and entries as
regards the following:
1. Current amounts of Accumulated Contributions of Participants on
both an individual and aggregate account basis. and
2. Receipts and disbursements, and
Page 1 16
ARTICLE III
3. Benefit payments, and
4. Current amounts clearly reflecting all monies, funds and assets
whatsoever attributable to contributions and deposits from the
City, and
5. All interest, dividends and gains (or losses) whatsoever. and
6. Such other entries as may be properly required so as to reflect a
clear and complete financial report of the Fund.
F. The Board shall be vested with full legal title to said Fund. subject
however, and in an event to the authority and power of the City of Edgewater City
Council to amend or terminate this Fund. provided that no amendment or Fund
termination shall ever result in the use of any assets of this Fund except for the
payment of regular expenses and benefits under this Plan, except as otherwise
provided herein. All contributions from time to time paid into the Fund, and the
income thereof, without distinction between principal and income. shall be held and
administered by the Board or its agent in the Fund and the Board shall not be
required to segregate or invest separately any portion of the Fund.
G. All monies paid into or held in the Fund shall be invested and
reinvested by the Board in accordance with the Board's duly adopted Investment
Policy, which shall comply with the provisions of Sections 112.661 and 185.06 of
the Florida Statutes., __ • - . ••-- _ _ _ _ • . ._ _• _ __• - •_
be limited to the following and those provisions of Section 185.06 of the Florida
Statutes:
1. Annuity and life insurance contracts with life insurance
the benefits to which all of the Participants in the Fund shall be
entitled under the provisions of this Plan and pay the initial and
subsequent premium thereon.
2. Time or savings accounts of a national bank. a state bank or a
Deposit Insurance Corporation.
3. Obligations of the United States or obligations guaranteed as to
44. Bonds issued by the State of Israel.
Page 117
ARTICLE III
5. Bonds, stocks, commingled funds administered by National or
State Banks or evidences of indebtedness rued or guaranteed
by a corporation organized under the laws of the United States,
any state or organized territory of the United States, or the District
of Columbia, provided that the security of the corporation is
rating service.
6. Real Estate.
7. The Board of Trustees shall not invest more than five (5) percent
of its assets in the common stock or capital stock of any one
i;suing company. nor shall the aggregate investment in any one
capital stock of the company nor the aggregate of its investment
under this subparagraph at cost exceeding thirty (30) percent of
the Fund's assets.
H. The Board may retain in cash and keep unproductive of income such
amounts of the Fund as it may deem advisable, having regard for the cash
requirements of the Plan.
The Board may cause any investment in securities held by it to be
registered in or transferred into its name as Trustee or into the name of such
nominee as it may direct, or it may retain them unregistered and in a form
permitting transferability. but the books and records shall at all times show that all
investments are part of the #Fund.
J. The Board is empowered to exercise any of the powers of an owner
with respect to stocks, bonds. or other investments comprising the fund which it
may deem to be to in the best interest of the Fund to exercise.
K. The Board shall not be required to make any inventory or appraisal
or report to any court. nor to secure any order of a court for the exercise of any
power contained herein.
Page 118
ARTICLE IV
ARTICLE IV
RETIREMENT BENEFITS
SECTION 4.01—ACCRUED BENEFIT
An Active Participant's monthly Accrued Benefit as of any date. subject to
the modifications below. will be equal to the product of (a) and (b) below:
(a) An amount equal to 3% of his Average Compensation 2% of average
compensation multiplied by accrued service up to 10/01/1987.
(b) His Accrual Service on such date 3% of average compensation
multiplied by accrued service after 10/01/1987.
Adjusted Accrued Benefit:
An Active Participant's monthly Accrued Benefit shall be reduced by the
amount of deferred monthly retirement benefit on the Normal Form beginning on
his Normal Retirement Date in lieu of which he has received a single sum payment
under the Plan or prior plan.
SECTION 4.02—BENEFIT LIMITATION
(a) To determine the benefit limitation set forth in this section, the following
terms are defined:
Aggregate Annual Addition means, for a Participant with respect to any Limitation
employer, as defined in this section. The nondeductible participant contributions
which the Participant makes to a defined benefit plan shall be treated as Annual
Additions to a defined contribution plan. The Contributions the Employer, as
._ . .
this section, shall be treated as Annual Additions to a defined contribution plan.
. . _ _ .
contributions made to an individual medical account, as defined in Code Section
Page 119
ARTICLE IV
/115(1)(2), or to aAnnual Additions resulting from contributions for medical benefits.
Limitation Year under this Plan or another retirement plan maintained by the
Employer, as defined in this section, which may not exceed a maximum
permissible amount of the lesser of (1) or (2) below:
applies to defined benefit plans. (Before the TEGRA Compliance Date,
$25,000 multiplied by the cost of living adjustment factor permitted by
Federal regulations.)
o
Year.
The amount in (1) above shall not be adjusted before January 1, 1988.
Year, shall be equal to the sum of (3) and (4) below:
(3) Employer contributions and forfeitures credited to his account for the
Limitation Year.
fel) Participant contributions made by him for the Limitation Year.
Before the first Limitation Year beginning after December 31. 1986, the amount
under(4) above is the lesser of(i) 1/2 of his nondeductible participant contributions
made for the Limitation Year, or (ii) the amount, if any. of his nondeductible
participant contributions made for the Limitation Year which is in excess of six
Annual Benefit means a retirement benefit under the Plan payable annually in the
form of a straight ten (10) year certain and life annuity or a survivor annuity. Except
Actuarial Equivalent straight ten (10) year certain and life annuity before applying
Page 120
ARTICLE IV
For purposes of applying the limitations of this section, Compensation for a
Limitation Year.
Current Accrued Benefit means a Part+c.e_ • ' • __ . _ :- •- _ --
determined as if the Participant had separated from service as of the close of the
last Limitation Year beginning before January 1. 1987, when expres✓ed as an
annual benefit within the m aning of Code Section 415(b)(2). In determining the
amount of a Participant's Current Accrued Benefit, the following shall be
disregarded:
(1) any change in the terms and conditions of the plan after May 5. 1986: and
(2) any cost of living adjustments occurring after May 5, 1986.
D- -- ' •- ••. -. •. .ss - - --
Date. 875,000 adjusted by the cost of living adjustment factor permitted by Federal
regulations). Effective on January 1, 1988, and each January 1 ther after, the
:.•!,!!! .. _ . -- - - - - - .-- -- - - - ' - - - - - --the cost of living adjustment factor prescribed by the Secretary of the Treasury
under Code Section 415(d) in such manner as the Secretary shall prescribe. The
date of the new adjustment.
Year, the quotient, expressed as a decimal, of
-- °. - - -_ • ' e -- -: • - -ual Benefit as of the close of such Limitation
defined in this section, divided by
- • - a -- - - e
.. .
{i) 1.25 multiplied by the dollar limitation determined for the
Limitation Year under Code Sections 415(b) and (d) and in
accordance with (3) in the definition of Maximum Permissible
Anlauntar
(ii) 1.4 multiplied by the Participant's Highest Average
C.Gompansatian,
including any adjustments under Code Section 415(b).
Page 21
ARTICLE IV
Before the TEFRA Compliance Date this denominator is the Participant's
Projected Annual Benefit as of the close of the Limitation Year if the plan(s)
provided the maximum benefit allowable.
The Defined Benefit Plan Fraction shall be modified as follows:
beginning after December 31, 1986, in one or more defined benefit plans
May 6, 1986. the denominator of this fraction will not be less than 125 percent of
the sum of the Annual Benefit and the annual benefits from such plan(s) which the
January 1 . 1987, disregarding any changes in the terms and conditions of the plans
after May 5, 1986. The preceding sentence applies only if the defined benefit plans
individually and in the aggregate satisfied the requirements of Code Section 415
•
Defined Contribution Plan Fraction means, with respect to a Limitation Year for a
a decimal, of
Aggregate Annual Additions attributable to nondeductible accounts under
defined benefit plans and attributable to ail welfare benefit funds, as defined
defined in this section, divided by
(2) on or after the TEFRA Compliance Date, the sum of the amount determined
for the Limitation Year under (i) or (ii) below. whichever is lc:-s, and the
amounts determined in the same manner for all prior Limitation Years during
employer:
(i) 1.25 multiplied by the gr ater of $30,000 or one fourth of the
plans determined under Code Sections 415(b) and (d), or
(ii) 1.4 multiplied by 25% of the Participant's Compensation. as
defined in this section, for each such Limitation Year.
Page l 22
ARTICLE IV
Before the TEFRA Compliance Date. this denominator is the sum of the
plan(s) of the Employer, as defined in this section, for each such Limitation
Year.
The Defined Contribution Plan Fraction shall be modified as follows:
If the Participant was a participant as of the first day of the first Limitation Year
maintained by the Employer, as defined in this section, which were in existence on
May 6. 1986. the numerator of this fraction shall be adjusted if the sum of the
•- •• • • •- •- p---
this fraction. The dollar amount is equal to the ex= of the sum of the two
Contribution Plan Fraction. The adjustment is calculated using his Defined
Contribution Plan Fraction and Defined Benefit Plan Fraction as they would be
computed as of the end of the last Limitation Year beginning before January 1,
1987, and disregarding any changes in the terms and conditions of the plans made
Limitation Year beginning on and after January 1, 1987.
shall not be recomputed to treat all employee contributions as Annual Additions.
- - • - 4,1 - - ••••••: •-
31, 1982, the Plan Administrator may elect in accordance with the provision of
Cede-Section 415 that the denominator for each Participant, for all Limitation Yclars
ending before January 1, 1983, will be equal to
(1) the Defined Contribution Plan Fraction denominator which would apply for
were no made, multiplied by
{2) a fraction, equal to (i) and (ii) below:
(I) the lesser of (A) $51,875. or (B) 1.4, multiplied by 25% of the
Limitation Year ending in 1981;
Page 123
ARTICLE IV
(ii) the lesser of (A) 541,500, or (B) 25% of the Participant's
Compensation. as defined in this section, for the Limitation
Year ending in 1981.
Em•lo er means any employer that adopts this Plan.
Highest Average Compensation means 100% of the average of a Participant's
the highest average.
determined whether or not the limitations of Code Section 415 arc exceeded.
the Limitation Year is other than the calendar year, execution of this Plan {or any
amendment to this Plan changing the Limitation Year) constitutes the Employer's
Maximum Permissible Amount means, for a Participant with respect to any
Limitation Year. the lesser of
(1) the Defined Benefit Dollar Limitation, or
The Maximum Permi'sible Amount shall be adjusted as follows:
{3) If the Participant has less than ten Y ars of Participation. the Defined
Benefit Dollar Limitation is reduced by one tenth for each Year of
ten Years of Service, the compensation limitation is reduced by one tenth
for each Year of Service (or part thereof) less than ten. The adjustments of
. .- .
that the Participant will receive a Year of Service for such year.
Page24
ARTICLE IV
Secial Security Retirement Age, but on or after age 62. the Defined Benefit
Dollar Limitation as reduced above, shall be determined as follows:
(i) If a Participant's Social Security Retirement Age is 65, the dollar
by reducing the Defined Benefit Dollar Limitation by 5/0 of one
(ii) If a Participant's Social Security Retirement Age is greater than 65,
the dollar limitation for benefits commencing on or after age 62 is
determined by reducing the Defined Benefit Dollar Limitation by 5/4
for each of the additional months (up to 24 months) by which benefits
commence before the month of the Participant's Social Security
Retirement Age.
Annual Benefit beginning at age 62, as determined above, reduced for each
month by which benefits commence before the month in which the
rate assumption is five percent. Any decrease in the defined benefit Dollar
Limitation determined in accordance with this provision (5) shall not reflect
the death of the Participant.
Social Security Retirement Age, the Defined Benefit Dollar Limitation as
reduced in (3)above, if necessary, shall be adjusted so that it is the actuarial
Participant's Social Security Retirement Age. To determine actuarial
equivalence, the interest rate assumption used is five percent.
(7) The provisions of this definition shall be modified as provided in:
(i) Code Section 415(b)(2)(F) for governmental plans (within the
meaning of Section 414(d)), plans maintained by
tax under Subtitle A of the Code, and qualified merchant
marine plans; and
Page 125
ARTICLE IV
(ii) Section 415(b)(2)(G) and 415(b)(2)(H) of the Code for Plan
(iii) Code Section 415(b)(9) for Plan Participants who are
commercial airline pilots.
Projected Annual Benefit means a Participant's expected Annual Benefit under
any defined benefit plan(s) ever maintained by the Employer, as defined in this
section. The Projected Annual Benefit shall be determined assuming that the
Participant will continue employment until the later of current age or normal
Year of Participation means one year (computed to fractional parts of years) for
ach Plan Y ar for which the following conditions are met:
(1) The Participa; -- - - --• -- -- - ---- • - - - - -- -- - , -
(2) the Participant is included as a Participant under the eligibility provisions of
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
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 will more than
(b) The Annual Benefit otherwise payable to a Participant at any time will not
exceed the Maximum Permissible Amount.
produce an Annual Benefit in excess of the limits above, the rate of accrual will be
reduced so that the Annual Benefit equals those limits.
(c) If a Participant is, or has ever been, covered under more than one defined
._._ ._
not exceed the Maximum Permissible Amount. If such plans do not otherwise limit
Page 26
ARTICLE IV
at any time under such plan(s)does not exceed the Maximum Permissible Amount.
In the case of an individual who was a participant in one or more defined benefit
plans of the Employer, as defined in this section, as of the first day of the first
limitation year beginning after December 31, 1986. the application of the limitations
of this section shall not cause the Maximum Permissible Amount for such individual
Accrued Benefit. The preceding sentence applies only if such defined benefit plans
before January 1, 1987.
If some of the Employer's defined benefit plans were not in existence on July 1,
which is based on a dollar amount may differ for a Limitation Year. The sum of the
Participant's Annual Benefits from all such plans for the Limitation Year in which
Compensation. (2)$136,425. or(3)the greater of$90.000 or the sum of the annual
amount applies.
(d) The limitations imposed by subsections (b) and (c) above shall not apply if,
for the current or any prior Limitation Year. the sum of the Annual Benefit payable
benefit plans ever maintained by the Employer, as defined in this section, does not
exceed the product of(1) and (2) below:
(1) $1,000
years).
.. -
. _ .. _ .--e
section, the sum of the Defined Benefit Plan Fraction and the Defined
Page 127
ARTICLE IV
• .. _ _
before the TEFRA Compliance Date).
_ _ •-•• - . . -at the s na of the Participant's Defined Benefit
Plan Fraction and Defined Contribution Plan Fraction shall not exceed 1.0 (1.4
before the TEFRA Compliance Date). The Projected Annual Benefit shall be
limited first. If the Participant's annual benefit(s) equal his Projected Annual
contributions the Participant may make for the Limitation Year shall be limited.
reallocated or limited for the Limitation Year. If employer contributions are
such employer contributions were geared shall be reduced in proportion.
benefit funds and individual medical accounts do not limit the aggregate Annual
first to the profit sharing plans. then to all other such plans and welfare benefit
that were most recently allocated. However, elective deferral contributions shall be
account is reduced. The annual addition to the welfare benefit fund and individual
medical accounts shall be limited last.
(f) If a Participant's annual amount of retirement benefit is reduced because
he received an earlier distribution under the Plan which is derived from Employer
reduced by the excess of(1) over (2) below:
(1) The Annual Benefit that would have been payable if he had not
received an earlier distribution provided by Employer
(2) The reduced Annual Benefit payable.
(g) If, for the Limitation Year, a Participant has an Annual Addition, the
Participant's Aggregate Annual Addition may not exceed the maximum permissible
amour
Page28
ARTICLE IV
Contributions and forfeitures which would otherwise be credited to the Participant's
accounts shall be limited to the extent necesary to meet the maximum permissible
amount of Aggregate Annual Addition. Any nondeductible voluntary contributions
under this Plan and any other retirement plans shall be limited first. Next.
If, due to (II) an error in estimating the Participant's Compensation as defined in
the forfeitures to be used to offset employer contributions under such plan(s) is
greater than the amount of the employer contributions due for the remaining
Annual Addition is greater than the maximum permissible amount, such excess
amount shall be applied as follows. Nondeductible voluntary contributions will be
returned to the Participant. If after the return of nondeductible voluntary
participant under the other plan(s) as of the end of the Limitation Year. the excess
amount shall be used to offset employer contributions under such plan(s) for him
in the next Limitation Year. If after the return of nondeductible voluntary
amount will be held in a suspense account under the other retirement plans which
will be used to offset employer contributions for all participants in the next
Limitation Year. No employer contributions or participant contributions that would
be included in the next Limitation Year's annual addition may be made before the
total that would be included in the next Limitation Year's Annual Addition may be
made before the total suspense account has been used or reallocated.
(a) Basic Limitation.
Notwithstanding any other provisions of this Plan to the contrary, the
Participant contributions paid to. and retirement benefits paid from. the Plan 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
Participant 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 Participant 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
additional limits that may be specified in this Plan. For purposes of this Section,
"limitation year- shall be the calendar year.
Page 129
ARTICLE IV
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.
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:
(i) 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 form of benefit
to the Participant. 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 Participant. 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 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
Page 130
ARTICLE IV
guidance implementing Section 417(e)(3)(B) of the
Code): or
(2) For a benefit paid in a form to which Section 417(e)(#) 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
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ARTICLE IV
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.
Benefits Not Taken into Account.
For purposes of this Section, the following benefits shall not be taken into
account in applying these limits:
11) Any ancillary benefit which is not directly related to retirement
income benefits:
(2) Any other benefit not required under Section 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:
jJ A Participant's applicable limit will be applied to the
Participant's annual benefit in the Participant's first limitation
year of benefit payments without regard to any automatic cost
of living adjustments;
(2) thereafter. in any subsequent limitation year, a Participant'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
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ARTICLE IV
(3) in no event shall a Participant's benefit payable under the Plan
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 Plan, for purposes of applying the limits
under Code Section 415(b), a Participant'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.
(1) In the event the Participant'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 Participant'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.
al 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 Participant'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.
ff Less than Ten (10) Years of Participation or Service.
The maximum retirement benefits payable under this Section to any
Participant who has completed less than ten (10) years of Service with the City
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ARTICLE IV
shall be the amount determined under subsection (a) of this Section multiplied by
a fraction, the numerator of which is the number of the Participant'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.
(q) Participation in Other Defined Benefit Plans.
The limit of this Section with respect to any Participant who at any time has
been a participant 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 Participant has been a participant were
payable from one plan.
u 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 Participant 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 Participant under this Plan and under all other qualified defined benefit
pension plans to which the City contributes, do not exceed ten thousand dollars
(S10,000) 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
Participant participated; provided, however, that if the Participant 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 Participant's
years of Service and the denominator of which is ten (10).
111 Reduction of Benefits.
Reduction of benefits and/or contributions to all plans, where required. shall
be accomplished by first reducing the Participant's benefit under any defined
benefit plans in which the Participant participated, such reduction to be made first
with respect to the plan in which Participant 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 Participant participated, such
reduction to be made first with respect to the plan in which Participant 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
Page I 34
ARTICLE IV
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 Participant.
Service Credit Purchase Limits.
(1) Effective for permissive service credit contributions made in
limitation years beginning after December 31 , 1997, if a
Participant makes one or more contributions to purchase
permissive service credit under the Plan. then the
requirements of this Section will be treated as met only if:
(i) 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 Plan 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 (i)(1)(ii) the Plan 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 Plan for purposes of calculating a
Participant's benefit under the Plan,
(ii) which such Participant has not received under the
Plan, and
(iii) which such Participant may receive only by making a
voluntary additional contribution, in an amount
determined under the Plan, 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
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ARTICLE IV
Plan. include service credit for periods for which there is no performance of service.
and, notwithstanding clause (i)(2)(ii), may include service credited in order to
provide an increased benefit for service credit which a Participant is receiving
under the Plan.
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 Plan, 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).
(i) 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 or after January 1 ,
2007. compensation for the limitation year will also
include compensation paid by the later of 2 1/2 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:
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ARTICLE IV
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
qualifying 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 qualified 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(q)(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 Participant to make a
contribution to the Plan 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 Participant to
avoid a contribution in excess of the limits under Code
Section 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
Participant's contribution to an amount within the limits
of that section or refuse the Participant's contribution.
(3) If the annual additions for any Participant for a limitation year
exceed the limitation under Section 415(c) of the Code, the
excess annual addition will be corrected as permitted under
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ARTICLE IV
the Employee Plans Compliance Resolution System (or
similar IRS correction program).
(4) For limitation years beginning on or after January 1, 2009, a
Participant's compensation for purposes of this subsection (k)
shall not exceed the annual limit under Section 401(a)(17) of
the Code.
SECTION 4.03—AMOUNT OF BENEFIT AT RETIREMENT
The amount of retirement benefit to be provided on the Normal Form for an
Active Participant on his Retirement Date shall be determined according to the
provisions of this section. The monthly retirement benefit shall not decrease after
the Participant's Retirement Date due to any increase in social security benefits
that occurs after he ceased to be an Employee.
An Active Participant's retirement benefit on his Early Retirement Date shall
be equal to his Accrued Benefit on his Early Retirement Date, actuarially reduced
by no more than three percent (3%) each year prior to his NORMAL RETIREMENT
DATE.
An Active Participants retirement benefit on his Normal Retirement Date
will be equal to his Accrued Benefit on such date.
An Active Participant's retirement benefit on his Retirement Date shall be
equal to his Accrued Benefit on such specified date.
An Active Participant's retirement benefit on his Late Retirement Date shall
be equal to the greater of (a) or (b) below:
(a) His Accrued Benefit on his Late Retirement Date.
(b) His Accrued Benefit on his Normal Retirement Date. multiplied by the
factor shown below corresponding to the number of years his Late
Retirement Date follows his Normal Retirement Date.
NUMBER OF YEARS
LATE RETIREMENT DATE
PRECEDES NORMAL
RETIREMENT DATE FACTOR
1 1.0600
2 1 .1200
3 1 .1900
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ARTICLE IV
4 1 .2600
5 1.3400
6 1.4200
7 1.5000
8 1.5900
9 1.6900
10 1.7900
The above factors shall be prorated for a partial year (counting a partial
month as a complete month). Factors for numbers of years beyond ten shall be
determined using a consistently applied reasonable actuarially equivalent method.
An Active Participant's retirement benefit on the Normal Form shall not be
less than the greatest amount of benefit that would have been provided for him
had he retired on any earlier Retirement Date.
In any event, an Active Participant's retirement benefit on the Normal Form
on his Retirement Date will not be less thatn the monthly benefit on the Normal
Form which is the Actuarial Equivalent of his Required Contribution Account on
such date.
The Participant's retirement benefits shall be distributed to the Participant
according to the distribution of benefits provisions of Article VI and the small
amounts provision of the SMALL AMOUNTS SECTION of Article IX. The amount
of payment under any form (other than the Normal Form) shall be determined as
provided under the OPTIONAL FORMS OF DISTRIBUTION AND
DISTRIBUTIONS RETIREMENTS SECTION of Article VI.
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ARTICLE IV
SECTION 4.04—TEMPORARY LIMITATION OF BENEFITS
(a) For Plan Years beginning before January 1, 1994. the limitations set
forth in this (a) apply.
(1) The amount of Employer contributions used to provide a
Participant's retirement benefit on the Normal Form shall be
limited as provided in (2) below if the Participant is one of the
Employer's 25 most highly paid Employees on the original
effective date of the Plan, the retirement benefit is over $125
($1,500 annually). and one of the following conditions occurs:
(i) The Plan is terminated within ten years of the effective
date of the Plan.
(ii) The monthly retirement benefit of such highly paid
Participant becomes payable within ten years of the
effective date of the Plan, or
(iii) If Code Section 412 (without regard to Code Section
412(h)(2)) does not apply to this Plan, the monthly
retirement benefit of such highly paid Participant
becomes payable more than ten years after the
effective date of the Plan, and the full current costs of
the Plan for the first ten years have not been met.
(2) If one of the conditions in (1) above does occur. the amount
of Employer contributions used to provide retirement benefits
on the Normal Form for such a highly paid Participant shall
not exceed the amount provided by the greater of (I) or (ii)
below:
(i) $20,000
(ii) 20% of the first $50,000 of the average of his annual
compensation for the five latest Compensation Years
multiplied by the number of years between the effective
date of the Plan and the earlier of (A) the date the
benefit becomes payable, or (B) the date the Plan
terminates. If on the earlier of (A) or (B) the full current
costs have not been met, then the date on which the
full current costs have not been met shall be
substituted for such earlier date.
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ARTICLE IV
(3) If the Plan is amended to increase the retirement benefits on
the Normal Form provided by Employer Contributions, the
amount of such Contributions used to provide that benefit may
be limited. Such amounts shall be limited if the Participant is
one of the employer's 25 most highly paid employees on the
effective date of the amendment and the retirement benefit
provided by eEmployer Contributions made before the
effective date of the amendment and during the following ten
years (Assuming his rate of pay remains unchanged) is over
$125 ($1,500 annually).
The provisions of (1) and (2) above shall continue to apply to the original
group of Participants who are highly paid Employees as if the Plan had not been
amended. The amount of Employer Contributions which may be used for the
benefit of the new group of Participants who are highly paid Employees shall be
limited as provided in (2) above, except that. in lieu of (2)(i) and (ii), the following
(i) and (ii) shall be substituted:
(i) The amount of Employer Contributions which would
have been applied to provide benefits for the
Participant if the Plan had continued without change or
$20.000, if greater.
(ii) The sum of (A) the amount of Employer Contributions
which would have been applied to provide benefits for
the Participant if the Plan had terminated on the day
before the effective date of the amendment, and (B)the
product of the number of years for which the current
costs of the Plan after the effective date of the
amendment are met multiplied by the lesser of (a) 20
percent of the average of his annual pay for the five
latest Compensation Years, or (b) S10,000.
(4) The limitations described above may be exceeded for the
purpose of making current monthly retirement benefit
payments to retired Participants who would otherwise be
subject to such limitations. The limitations may be exceeded
only if all of the following conditions are met:
(i) The Employer Contributions which may be used for
such retired Participant according to the preceding
provisions of this section are applied to provide either
a level amount of monthly retirement benefit on the
Normal Form or a level amount of monthly retirement
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ARTICLE IV
benefit on an optional form of retirement benefit not
greater in amount than the amount of monthly benefit
on the Normal Form.
(ii) The monthly retirement benefit provided is
supplemented by monthly payments to the extent
necessary to provide the full monthly retirement benefit
on the Normal Form.
(iii) The full current costs of the Plan have been met or the
total of such supplemental payments for all such retired
Participants does not exceed the total Employer
Contributions already made under the Plan in the year
then current.
A highly paid Participant may receive a single sum distribution only if he
enters into an agreement to repay to the Plan all amounts he receives in excess
of the limitations of this section. The requirement of repayment shall apply if the
Plan terminates, if the full current costs of the Plan are not met during a period
when the limitations of this section are in effect, or benefits are paid when the Plan
is less than ten years old. In order to guarantee the repayment, the Participant
must deposit the amount which would be repayable in a guaranteed account or
with an acceptable depository property having a fair market value equal to 125
percent of the amount which would be repayable had the Plan terminated on the
date of the single sum distribution. If the market value of the property held by the
depository falls below 110 percent of the amount which would be repayable if the
Plan were then to terminate. additional property necessary to bring the value of the
property held by the depository up to 125 percent of such amount will be deposited.
(b) For Plan Years beginning on or after January 1 , 1994, the limitations
set forth in this (b) apply.
In the event of Plan termination. the benefit of any active or former Highly
Compensated Employee is limited to a benefit that is nondiscriminatory under
Code Section 401(a)(4).
For Plan Years beginning on or after January 1, 1999, benefits distributed
to any of the 25 most highly compensated active and former Highly Compensated
Employees are restricted such that the annual payments are no greater than an
amount equal to the payment that would be made on behalf of the Employee under
a single life annuity that is the Actuarial Equivalent of the sum of the Employee's
Accrued Benefit and the Employee's other benefits under the Plan.
The preceding paragraph shall not apply if:
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ARTICLE IV
(1) after payment of the benefit to an Employee described in the
preceding paragraph. the value of plan assets equals or exceeds 110
percent of the value of current liabilities, as defined in Code Section
412(1)(7), or
(2) the value of the benefits for an Employee described above is less
than one percent of the value of current liabilities.
For purposes of this (b), benefit includes loans in excess of the amount set
forth in Code Section 72(p)(2)(A). any periodic income, any withdrawal values
payable to a living Employee. and any death benefits not provided by insurance
on the Employee's life.
SECTION 4.05—BENEFITS UPON REEMPLOYMENT AFTER RETIREMENT
DATE
If the Employer rehires a Participant after his Retirement Date, any monthly
retirement benefit he is receiving shall continue stopped. If he also becomes an
Active Participant. there shall be no duplication of benefits for him under this Plan.
Any death benefit from the Accrued Benefit he accrued during this latest period of
participation shall be determined as provided in the DEATH BENEFITS SECTION
of Article V. The retirement benefit from such Accrued Benefit shall be payable
according to the provisions of Article IV and Article VI.
SECTION 4.06—SUPPLEMENTAL BENEFIT
Supplemental Retirement Benefit: In addition to all other benefits provided
in this section, there is hereby provided for eligible police officers an annual
supplemental retirement benefit. For purposes of this subsection only. "eligible
police officer" shall be defined as an active police officer that has attained Credited
Service of five (5) or more years and that terminates service or retires under the
Pension Plan. Entitlement to such supplemental retirement benefit shall be
determined annually based upon the receipt by the Fund of any "additional
premium tax revenues," as defined in sub-section 185.02(1), Florida Statutes.
Payment of such supplemental retirement benefit shall be made annually to each
eligible police officer no later than the 1 of December after receipt of the
"additional premium tax revenues" from the state, provided that it has been
confirmed in writing that the eligible police officer was alive on September 30th of
such year, beginning with fiscal year 2007. The amount of such supplemental
retirement benefit shall be equal to the quotient of: the total amount of all
"additional premium tax revenues" received by the Fund during that calendar year
(regardless of the year to which the revenues relate). multiplied by each eligible
police officer's percentage of the total number of combined years of service for all
Page '' 43
ARTICLE IV
eligible police officers. Such supplemental benefit for each eligible police officer
shall be credited to an account to be maintained by the Pension Plan, which shall
be credited or debited with the actual rate of investment return (less expenses) of
the Pension Plan and shall be rolled over to a designated qualified Plan on
retirement or termination or in the event of death prior to retirement paid to a
designated beneficiary.
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ARTICLE V
ARTICLE V
OTHER BENEFITS
SECTION 5.01—DEATH BENEFITS
If a Participant dies before his Annuity Starting Date, death benefits shall be
determined under subsections (a) and (b) below.
(a) Qualified Preretirement Survivor Annuity:
A qualified Preretirement Survivor Annuity shall be payable if the
following requirements are met:
(1) The Participant is survived by a spouse to whom he was
continuously married throughout the one year period ending
designated beneficiary on the date he dies.
(2) The Participant's Vesting Percentage or Required
Contribution Account on the date of his death was greater
than zero.
If the requirements above are met on the date the Participant dies, a
Qualified Preretirement Survivor Annuity shall be payable. The spouse
designated beneficiary may elect to start benefits on any first day of the
month on or after the earliest date retirement benefits could have been paid
to the Participant if he had ceased to be an Employee on the date of his
death and survived to retire. Benefits must start by the date of the
Participant would have been age 70 1/2. If the spouse designated
beneficiary dies before the Qualified Preretirement Survivor Annuity starts,
the only death benefit payable from his Accrued Benefit is that provided in
(b) below.
If a single-sum death benefit would otherwise be payable in (b)
below, the monthly benefit payable to the spouse designated beneficiary
under the Qualified Preretirement Survivor Annuity shall not be less than
the monthly benefit which is the Actuarial Equivalent of the single-sum death
benefit at the date benefits start.
If the Participant elects to have the single-sum death benefit in (b)
below paid to his Designated Beneficiary after the requirements above are
met or if the spouse designated beneficiary waives the Qualified
Preretirement Survivor Annuity by electing to have the single-sum death
benefit in (b) below paid to himself as Beneficiary after the requirements
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ARTICLE V
above are met, the Qualified Preretirement Survivor Annuity shall be
reduced. The amount of the reduction shall be equal to the monthly benefit
which is the Actuarial Equivalent of what would have been the single-sum
death benefit at the date benefits start.
(b) Single sum death benefit:
If the requirements of subsection (a) above have not been met on
the date a Participant dies, a single-sum death benefit equal to his
Requirement Contribution Account on the date he died shall be payable to
the Participant's Designated Beneficiary. If the requirements of subsection
(a) above have been met on the date such Participant dies and the Qualified
Retirement Survivor Annuity has not been waived, but the Participant's
spouse designated beneficiary dies before the Qualified Preretirement
Survivor Annuity starts, this single-sum death benefit, determined as of the
date of the spouse designated beneficiary's death, shall be paid to the
spouses Designated Beneficiary.
Before a single-sum death benefit will be paid on account of the
death of a Participant who would have met all the requirements in (a) above
if he had had a spouse designated beneficiary on the date of his death, it
must be established to the satisfaction of a plan representative that there is
no spouse designated beneficiary.
If a Participant dies on or after his Normal Retirement Date and before his
Annuity Starting Date and such Participant is survived by a spouse to whom he
was continuously married throughout the one year period ending designated
beneficiary on the date of his death. the death benefit shall be payable in like
manner as provided under (a) and (b) above.
If a Participant dies on or after his Normal Retirement Date and before his
Annuity Starting Date and such Participant is not survived by a spouse to whom
he was continuously married throughout the one year period ending designated
beneficiary on the date of his death. the provisions of subsections (a) and (b) shall
not apply. Instead, the death benefit shall be the preservation of retirement option
death benefit. This death benefit is the death benefit which would have been
payable to the Participant's Beneficiary or Contingent Annuitant if the Participant's
Retirement would have been payable to the Participant's Beneficiary or Contingent
Annuitant if the Participant's Retirement Date had occurred on the date he died.
The optional form of distribution elected according to the provisions of the
ELECTION PROCEDURES SECTION of Article VI before the Participant's death
is the form in effect for determining the death benefit. For purposes of this death
benefit only, an election of an optional form of distribution shall be a qualified
election even if it is not made within 90 days of the date retirement benefits would
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ARTICLE V
have begun if it meets all of the other requirements for a qualified election. The
automatic form of distribution for retirement benefits under the AUTOMATIC
FORMS OF DISTRIBUTION SECTION of Article VI shall be in effect if an election
has not been made or an election is revoked without a subsequent election
according to the provisions of the ELECTION PROCEDURES SECTION of Article
VI. Any death benefit payable shall be subject to the distribution limitations of the
OPTIONAL FORMS OF DISTRIBUTIONS AND DISTRIBUTION
REQUIREMENTS SECTION of Article VI.
If. after any death benefit above is distributed in a single sum, the Present
Value of the remaining Qualified Preretirement Survivor Annuity payable under (a)
above is $3,508 $5,000 or less, the spouse designated beneficiary may receive
such Present Value in a single-sum payment in lieu of the Qualified Preretirement
Survivor Annuity. It will be distributed only if the spouse designated beneficiary so
elects.
Any death benefit after Annuity Starting Date will be determined by the form
of retirement benefit in effect on a Participant's Annuity Starting Date.
SECTION 5.02—VESTED BENEFITS
A Participant who becomes an Inactive Participant before retirement or
death (and. if applicable, before the date a disability payment begins under the
DISABILITY BENEFITS SECTION of Article V) will be entitled to one of the
following vested benefits whichever is applicable. Any distribution of vested
benefits shall be a retirement benefit and shall be a retirement benefit and shall be
subject to the distribution of benefits provisions of Article VI and the provisions of
the SMALL AMOUNTS SECTION of Article IX.
(a) A deferred monthly retirement benefit on the Normal Form to begin
on his Normal Retirement Date. The deferred retirement benefit will
be equal to the product of (1) and (2):
(1) The Participant's Accrued Benefit on the day before he
became an Inactive Participant.
(2) The Participant's Vesting Percentage on the date he ceases
to be an Employee.
(b) A deferred monthly retirement benefit on the Normal Form to begin
on his Early Retirement Date. The deferred retirement benefit shall
be equal to the amount under (a) above multiplied by the applicable
early retirement factor in the AMOUNT OF BENEFIT AT
RETIREMENT SECTION of Article IV.
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ARTICLE V
(c) A deferred monthly retirement benefit on the Normal Form to begin
on his Late Retirement Date. The deferred retirement benefit shall
be determined as follows:
(1) For a Participant who became an Inactive Participant on or
before his Normal Retirement Date. an amount equal to the
amount under (a) above multiplied by the late retirement
factor in the AMOUNT OF BENEFIT AT RETIREMENT
SECTION of Article IV which corresponds to the number of
years his Late Retirement Date follows his Normal Retirement
Date.
(2) For a Participant who became an Inactive Participant after his
Normal Retirement Date, an amount equal to the greater of(i)
or (ii) below:
(i) The Participant's Accrued Benefit on the day before the
date he became an Inactive Participant.
(ii) His Accrued Benefit on his Normal Retirement Date
multiplied by the late retirement factor in the AMOUNT
OF BENEFIT AT RETIREMENT SECTION of Article IV
which corresponds to the number of years his Late
Retirement Date follows his Normal Retirement Date.
The deferred retirement benefit for the Participant on his Retirement Date
shall not be less than the monthly benefit which is the Actuarial Equivalent of his
Required Contribution Account on such date.
The amount of payment under any form (other than the Normal Form) shall
be determined as provided under the OPTIONAL FORMS OF DISTRIBUTION
AND DISTRIBUTION REQUIREMENTS SECTION of Article VI. After the
Participant ceases to be an Employee, the deferred retirement benefit shall not
decrease because of any post-separation social security benefit increases. If he
again becomes nan Active Participant. such a decrease shall also not apply to any
deferred retirement benefit to which he was entitled before his Reentry Date.
The Participant may receive his Required Contribution Account in a single-
sum payment at any time after he ceases to be an Employee and before his
Retirement Date, provided he has not again become an Employee. If such amount
is not payable under the provisions of the SMALL AMOUNTS SECTION of Article
IX, it will be distributed only if the Participant so elects. Such payment shall result
in all or a portion of his Accrued Benefit being disregarded.
Page 48
ARTICLE V
If, after any single-sum distribution above which occurs before a
Participant's Retirement Date, the Present Value of the Participant's remaining
vested Accrued Benefit payable at Norma Retirement Date is $3,500 $5,000 or
less, the Participant may receive the entire Present Value in a single-sum payment,
provided he has not again become an Employee. Such amount will be distributed
only if the Participant so elects. Such payment shall result in all of the Participant's
Accrued Benefit being disregarded and shall be in full settlement of all benefits
otherwise payable.
SECTION 5.03—DISABILITY BENEFITS
A Police Officer is considered Disabled when he or she becomes totally and
permanently unable to perform useful and efficient service as a Police Officer.
Members are covered for service incurred Disability from date of hire. Members
are covered for non-service incurred disability following the completion of five (5)
years of service.
A written application is made to the Board of Trustees for a Disability
Pension and decides whether or not the pension is to be granted. The Board of
Trustees shall require Petitioner to submit to an evaluation by a medical doctor. all
expenses being paid by the Board of Trustees.
If the Pension is granted and it is determined the Disability is Service
Incurred, the benefit amount will be the Accrued Benefit as of the Date of
Determination, but not less than 42% of the Police Officer's average final
compensation, for ten (10) years certain and life thereafter. If it is determined the
Disability is non-service incurred, the benefit will be the Accrued Benefit as of the
Date of Determination, but not less than 25% of the Police Officer's average final
compensation, for ten (10) years certain and life thereafter. This benefit will be
supplemented by a disability insurance paid for by the City which will insure the
individual no less than 60% of their compensation.
Any condition or impairment of a Police Officer caused by Heart Disease
resulting in death or Total Disability is presumed to have been suffered in the line
of duty unless the contrary is shown by competent evidence.
Each Police Officer who is claiming disability benefits will establish. to the
satisfaction of the Board, that such disability was not the result of:
A. Excess or habitual use of drugs, intoxicants, alcohol, or tobacco
products
B. Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections;
Page i 49
ARTICLE V
C. Injury or disease while committing a crime;
D. Injury or disease while serving in the Armed Forces;
E. Injury or disease after his employment as a Police Officer with the
City of Edgewater has terminated or while working for an employer
other than the City of Edgewater.
F. Failure to maintain minimum physical standard conditions
A Retired Disabled Police Officer is subject to periodic medical
examinations as directed by the Board to determine whether a disability continues.
Page 50
ARTICLE VI
ARTICLE VI
WHEN BENEFITS START AND DISTRIBUTION OF BENEFITS
SECTION 6.01—WHEN BENEFITS START
Benefits under the Plan begin when a Participant retires, dies. ceases to be
an Employee, or becomes Totally and Permanently Disabled, whoever applies. as
provided in Article IV and Article V. Benefits may begin on an earlier date to the
extent necessary to avoid a violation of Code Section 415 or 411(b).
Benefits shall begin by the Participant's Required Beginning Date, as
defined in the OPTIONAL FORMS OF DISTRIBUTION AND DISTRIBUTION
REQUIREMENTS SECTION of Article VI.
SECTION 6.02—AUTOMATIC FORMS OF DISTRIBUTION
The automatic form of retirement benefit for a Participant who does not die
before his Annuity Starting Date shall be the Qualified Joint and Survivor Form.
The amount of payment under the Qualified Joint and Survivor Form shall be
determined as provided in the OPTIONAL FORMS OF DISTRIBUTION AND
DISTRIBUTION REQUIREMENTS SECTION of Article VI.
The automatic form of death benefit for a Participant who dies before his
Annuity Starting Date is determined according to the provisions of the DEATH
BENEFITS SECTION of Article VI.
SECTION 6.03—OPTIONAL FORMS OF DISTRIBUTION AND DISTRIBUTION
REQUIREMENTS
(a) For purposes of this section. the following terms are defined:
Designated Beneficiary means the individual who is designated as the
beneficiary under the Plan in accordance with Code Section 401(a)(9) and the
proposed regulations thereunder.
Distribution Calendar Year means a calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's death,
the first Distribution Calendar Year is the calendar year immediately preceding the
calendar year which contains the Participant's Required Beginning Date. For
distributions beginning after the Participant's death. the first Distribution Calendar
Year is the calendar year in which distributions are required to begin pursuant to
(h) below.
Page 51
ARTICLE VI
Joint and Last Survivor Expectancy means the joint and last survivor
expectancy calculated using the attained age of the Participant (or Designated
Beneficiary) as of the Participant's (or Designated Beneficiary's) birthday in the
applicable calendar year. If annuity payments commence before the Required
Beginning Date. the applicable calendar year is the year such payments
commence. Joint and Last Survivor Expectancy is computed by use of the
expected return multiples in Table VI of section 1 .72-9 of the Income Tax
Regulations.
Life Expectancy means the life expectancy calculated using the attained
age of the Participant (or Designated Beneficiary) as of the Participant's (or
Designated Beneficiary's) birthday in the applicable calendar year. The applicable
calendar year shall be the Distribution Calendar Year. If annuity payments
commence before the Required Beginning Date. the applicable calendar year is
the year such payments commence. Life Expectancy is computed by use of the
expected return multiples in Table V of section 1.72-9 of the Income Tax
Regulations.
Required Beginning Date means, for a Participant. the later of the April 1
following the calendar year in which a Participant attains age 70 1/2 or the April 1
of the year following the calendar year in which retirement occurs.
(b) The optional forms of retirement benefit shall be the following: a
straight life annuity; single life annuities with certain periods of five, ten or fifteen
years; and survivorship life annuities with survivorship percentages of 50, 66 2/3.
75 or 100 and a Deferred Retirement Option Program (DROP), described herein.
The benefit payable on any optional annuity form available above (other than the
Normal Form) shall be the Actuarial Equivalent of the benefit that would otherwise
be payable on the Normal Form.
Election of an optional form is subject to the qualified election provisions of
Article VI.
Any annuity contract distributed shall be nontransferable. The terms of any
annuity contract purchased and distributed by the Plan to a Participant or spouse
shall comply with the requirements of this Plan.
The DROP shall be as follows: a police officer may retire for all purposes of
the Plan and defer receipt of retirement benefits into a DROP account while
continuing employment with the City as follows:
1 . Eligibility. An "eligible police officer.' of the City of Edgewater, Florida
Police Officers' Pension Fund, defined as a police officer in Section
185.02(11) of the Florida Statutes, who has attained age fifty-five
Page 52
ARTICLE VI
(55) and completed five (5) years of Accrual Service or who has
completed twenty (20) years of Accrual Service shall have a five (5)
year period to elect participation in the DROP. On such election,
participation in the DROP shall commence on the first day of the
month coincident with or next following such election. which date
shall constitute the `initial date of eligibility."
2. Written Election. An eligible police officer electing to participate in
DROP must complete and execute such forms as may be required
by the Board of Trustees not less than thirty (30) days prior to
entering into the DROP. The forms shall include, but not be limited
to, an irrevocable letter of resignation effective no later than the
conclusion of the maximum period of DROP participation. Election
into DROP is irrevocable provided, however, there is no minimum
period of participation.
3. Limitation/Disqualification for Other Benefits. An eligible police officer
may elect to participate in the DROP only once. After
commencement of participation in DROP, a police officer shall no
longer earn, accrue, or purchase additional Accrual Service toward
retirement benefits and shall not be eligible for pre-retirement death
benefits or later enhancements to the City of Edgewater Police
Officers' Pension Plan, however shall remain eligible for disability
benefits provided herein.
On election to participate in the DROP, an eligible police officer shall be
given a thirty (30) day period to elect one of the following options
concerning the liquidation of accrued leave:
(i) Convert total accrued leave to compensation:
(ii) Convert part of accrued leave to compensation and
retain an accrued leave balance;
(iii) Maintain total accrued leave balances.
4. Cessation or Reduction of Contributions. Upon the effective date of
an eligible police officers' participation in DROP. all contributions by
and on behalf of the police officer to the Plan shall be discontinued.
5. Benefit Calculation. For all plan purposes, service and vesting credits
of an eligible police officer electing DROP shall be fixed as of the
effective date of commencement of DROP participation. Any service
as a police officer after entry into DROP shall not be used for
calculation or determination of benefits payable by the Plan. The
Page 53
ARTICLE VI
average final compensation of a participant, as defined in this Plan,
shall be determined as of the effective date of commencement of
DROP participation and any subsequent earnings shall not be used
for calculation or determination of benefits payable by the Plan.
6. Benefit Credits to DROP Account.
(a) Upon entry into DROP, the monthly retirement benefit which
would have been payable had the police officer ceased
employment and commenced receiving a normal retirement
benefit shall be credited to the police officer's DROP account
on a monthly basis. No benefit credits from the Plan shall be
made to a DROP account for more than the maximum period
of DROP participation.
1121 No police officer shall receive a credit to the police officer's
DROP account until the required DROP forms have been
submitted including the police officer's irrevocable letter of
resignation and the City has actually discontinued the police
officer's contributions to the plan.
7. DROP Account Earnings. Each DROP account shall be eligible to
earn interest in accordance with the following method. which may be
amended by the Board of Trustees periodically:
The DROP Account shall earn interest equal to the actual earnings
of the investments of the City of Edgewater Police Officers' Pension
Plan, net of fees as determined by the actuary using the standard
IRS formula for purposes of reporting the annual investment return
on Schedule B (Form 5500), whether or not such form is actually
required for this plan and less an administrative fee, (not to exceed
one-quarter of one percent (.25%)) to be established annually on
October 1st of each fiscal year by the Board of Trustees.
8. Maximum Period of Participation. An eligible police officer may elect
to participate in DROP for a maximum of sixty (60) months. At the
conclusion of the maximum period of DROP participation. retirement
benefit payments to the DROP account shall cease and the police
officer's termination from employment with the City shall become
effective pursuant to the irrevocable letter of resignation.
9. Administrative Fee for DROP Account. An annual administrative fee,
of not more than one-quarter of one percent (.25%), shall be charged
on each October 1st for the administration and operation of a police
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ARTICLE VI
officer's DROP account at a rate established by the Board of
Trustees. In the case of a participant who separates from service
after October 1st, the administrative fee shall be paid on a prorated
basis for the partial year of participation.
10. Distribution of DROP Account
a. Upon termination of a police officer's City employment,
whether by retirement. resignation, discharge or death. no
further benefit credits shall be made to the DROP account.
b. All retirement benefits paid after termination of employment
shall be made directly to the police officer, or in the case of
death, in accordance with any survivorship option which the
police officer elected.
c. Within sixty (60) days following the end of the month in which
the police officer terminated employment, the balance of the
police officer's DROP account shall be paid to the police
officer as a lump sum or by rollover to another qualified
retirement plan. The police officer must elect the method of
payment within thirty (30) days following the end of DROP
participation and the election shall be irrevocable. Failure to
elect a payment within the prescribed time shall be deemed
an election to receive payment of the entire DRPO account
balance in cash, less required income tax withholding.
d. Notwithstanding the option selected by the police officer. the
Board of Trustees reserves the right to accelerate payments
to comply with the minimum distribution provisions of the
Internal Revenue Code or to defer payments to comply with
the maximum benefit provisions of the Internal Revenue
Code.
11. Disability of a DROP Participant. If the City determines as provided
under the worker compensation statutes of the State of Florida and
the current collective bargaining agreement. that a police officer has
become unable to perform the duties of an Edgewater police officer
due to service or non-service related disability and terminates the
employment of the police officer for this reason, the police officer
shall be deemed to have retired on a disability retirement and shall
be entitled to benefits provided in the Disability Benefits of this plan,
DROP participation shall end effective on the date of such
determination by the City. Distribution of the DROP account balance
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ARTICLE VI
shall be made in accordance with the provisions and requirements
of this section in the manner elected by the police officer.
12. Death of a DROP Participant. If a DROP participant dies, the police
officer shall be deemed to have retired upon entry into DROP and
the balance in the DROP account shall be distributed in accordance
with the distribution methodology (Paragraph 10 above) elected by
the police officer, or if no such election has been made. the police
officer's designated beneficiary may elect the method of payment in
accordance with the time and election requirements of Paragraph 10
above. Survivorship benefits, if any, shall be paid in accordance with
the police officer's benefit elections upon entry into DROP.
13. Forms. All forms and notices used in the administration of the DROP
shall be prepared through ioint cooperation between the City of
Edgewater and the Board of Trustees.
Back DROP
1 . Eligibility; Duration of Back-DROP Election. The Back-DROP shall
be defined as a partial lump sum distribution with a forward annuity
for the remainder of the lifetime of the participant available only to
participants who have passed the initial DROP eligibility date as of
the effective date of this ordinance. This subsection sets forth rights
for participation in the Back-DROP.
2. Participation in Back-DROP. Participants who have attained Normal
Retirement Date, as of the effective date of the ordinance shall be
eligible to elect to participate in the Back-DROP. Back-DROP
benefits shall be up to twenty-four (24) months of accumulated
pension payments utilizing service accrued and average final
compensation based on what would have been the participant's
selected date of eligibility then in existence. Any contributions paid
by the eligible participant during the Back-DROP period, not to
exceed twenty-four (24) months. shall be transferred to the
participant's Back-DROP account. The Back-DROP account shall be
credited with interest equal to actual earnings of the investments of
the City of Edgewater Police Officers' Pension Plan from the selected
date of Back-DROP initiation to the date of the participant's
retirement or resignation from employment with the City. In the case
of a partial year's participation. interest shall be prorated to achieve
that applicable rate of interest set forth in this section on an
annualized basis. Interest shall be compounded annually. As part of
the application process for Back-DROP, participants shall submit an
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ARTICLE VI
irrevocable letter of retirement or resignation to take effect
immediately upon completion of the Back-DROP application
process. Participants electing the Back-DROP shall also elect a
distribution methodology of the Back-DROP account on the same
basis as a DROP participant as provided in section (d)(1) herein
(c) The optional forms of death benefit are any annuity that is an optional
form of retirement benefit.
(d) Subject to the AUTOMATIC FORMS OF DISTRIBUTION SECTION
of Article VI, joint and survivor annuity requirements. the requirements of this
section shall apply to any distribution of a Participant's interest and will take
precedence over any inconsistent provisions of this Plan. Unless otherwise
specified, the provisions of this section apply to calendar years beginning after
December 31, 1984.
All distributions required under this section shall be determined and made
in accordance with the proposed regulations under Code Section 401(a)(9),
including the minimum distribution incidental benefit requirement of section
1.401(a)(9)-2 of the proposed regulations.
(e) Required Beginning Date. The entire interest of a Participant must
be distributed or begin to be distributed no later than the Participant's Required
Beginning Date.
(f) Limits on Distribution Periods. As of the first Distribution Calendar
Year, distributions, if not made in a single sum, may only be made over one of the
following periods (or combination thereof):
(1) the life of the Participant,
(2) the life of the Participant and a Designated Beneficiary
(3) a period certain not extending beyond the Life Expectancy of
the Participant, or
(4) a period certain not extending beyond the Joint and Last
Survivor Expectancy of the Participant and a Designated
Beneficiary.
(g) Determination of amount to be distributed each year.
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ARTICLE VI
(1) If the Participant's interest is to be paid in the form of annuity
distributions under the Plan, payment under the annuity shall
satisfy the following requirements:
(i) the annuity distributions must be paid in periodic
payments made at intervals not longer than one year;
(ii) the distribution period must be over a life (or lives) or
over a period certain not longer than a Life Expectancy
(or Joint and Last Survivor Expectancy) described in
Code Section 401(a)(9)(A)(ii) or Code Section
401(a)(9)(A)(iii), whichever is applicable;
(iii) the Life Expectancy (or Joint and Last Survivor
Expectancy) for purposes of determining the period
certain shall be determined without recalculation of Life
Expectancy;
(iv) once payments have begun over a period certain, the
period certain may not be lengthened even if the period
certain is shorter than the maximum permitted;
(v) payments must either be nonincreasing or increase
only as follows:
(a) with any percentage increase in a specified and
generally recognized cost-of-living index;
(b) to the extent of the reduction to the amount of
the Participant's payments to provide for a
survivor benefit upon death, but only if the
Beneficiary whose life was being used to
determine the distribution period described in (f)
above dies and the payments continue
otherwise in accordance with (f) above over the
life of the Participant:
(c) to provide cash refunds of employees
contributions upon the Participant's death; or
(d) because of an increase in benefits under the
Plan.
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ARTICLE VI
(vi) If the annuity is a life annuity (or a life annuity with a period
certain not exceeding 20 years), the amount which
must be distributed on or before the Participant's
Required Beginning Date (or, in the case of
distributions after the death of the Participant, the date
distributions are required to begin pursuant to (h)
below) shall be the payment which is required for one
payment interval. The second payment need not be
made until the end of the next payment interval even if
that payment interval ends in the next calendar year.
Payment intervals are the period for which payments
are received, e.g.. bimonthly, monthly, semi-annually,
or annually.
If the annuity is a period certain annuity without a life
contingency (or if a life annuity with a period certain
exceeding 20 years) periodic payments for each
Distribution Calendar Year shall be combined and
treated as an annual amount. The amount which must
be distributed by the Participant's Required Beginning
Date (or, in the case of distributions after the death of
the Participant, the date distributions are required to
begin pursuant to (h) below) is the annual amount for
the first Distribution Calendar Year. The annual amount
for other Distribution Calendar Years, including the
annual amount for the calendar year in which the
Participant's Required Beginning Date (or the date
distributions are required to begin pursuant to (h)
below) occurs. must be distributed on or before
December 31 of the calendar year for which the
distribution is required.
(2) Annuities purchased after December 31 , 1988, are subject to
the following additional conditions:
(i) Unless the Participant's spouse is the Designated
Beneficiary. if the Participant's interest is being
distributed in the form of a period certain annuity
without a life contingency, the period certain as of the
beginning of the first Distribution Calendar Year may
not exceed the applicable period determined using the
table set forth in Q&A A-5 of section 1 .401(a)(9)-2 of
the proposed r Treasury Regulations.
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ARTICLE VI
(ii) If the Participant's interest is being distributed in the
form of a joint and survivor annuity for the joint lives of
the Participant and a nonspouse Beneficiary. annuity
payments to be made on or after the Participant's
Required Beginning Date to the Designated
Beneficiary after the Participant's death must not at any
time exceed the applicable percentage of the annuity
payment for such period that would have been payable
to the Participant using the table set forth in Q&A A-6
of section 4.01(a)(9)-2 of the proposed regulations.
(iii) Transitional rules. If payment under an annuity which
complies with (1) above begins prior to January 1 ,
1989, the minimum distribution requirements in effect
as of July 27, 1987. shall apply to distributions from this
Plan, regardless of whether the annuity form of
payment is irrevocable. This transitional rule also
applies to deferred annuity contracts distributed to or
owned by the employee prior to January 1, 1989,
unless additional contributions are made under the
Plan by the Employer with respect to such contract.
(iv) If the form of distribution is an annuity made in
accordance with this (g). any additional benefits
accruing to the Participant after his Required Beginning
Date shall be distributed as a separate and identifiable
component of the annuity beginning with the first
payment interval ending in the calendar year in which
such amount accrues.
(v) Any part of the Participant's interest which is in the form
of an individual account shall be distributed in a
manner satisfying the requirements of Code Section
401(a)(9) and the proposed regulations thereunder.
(h) Death Distribution Provisions.
(1) Distribution beginning before death. If the Participant dies
after distribution of his interest has begun, the remaining
portion of such interest will continue to be distributed at least
as rapidly as under the method of distribution being used prior
to the Participant's death.
Page 60
ARTICLE VI
(2) Distribution beginning after death. If the Participant dies
before the distribution of his interest begins. distribution of the
Participant's entire interest shall be completed by December
31 of the calendar year containing the fifth anniversary of the
Participant's death except to the extent that an election is
made to receive distributions in accordance with (i) or (ii)
below:
(i) If any portion of the Participant's interest is payable to
a Designated Beneficiary, distributions may be made
over the life or over a period certain not greater than
the Life Expectancy of the Designated Beneficiary
commencing on or before December 31 of the calendar
year immediately following the calendar year in which
the Participant died;
(ii) If the Designated Beneficiary is the Participant's
surviving spouse, the date distributions are required to
begin in accordance with (i) above shall not be earlier
than the later of (a) December 31 of the calendar year
immediately following the calendar year in which the
Participant died and (b) December 31 of the calendar
year in which the Participant would have attained age
70 1/2.
If the Participant has not made an election pursuant to
this (2) by the time of his death, the Participant's
Designated Beneficiary must elect the method of
distribution no later than the earlier of(a) December 31
of the calendar year in which distributions would be
required to begin under this (h), or (b) December 31 of
the calendar year which contains the fifth anniversary
of the date of death of the Participant. If the Participant
has no Designated Beneficiary, or if the Designated
Beneficiary does not elect a method of distribution,
distribution of the Participant's entire interest must be
completed by December 31 of the calendar year
containing the fifth anniversary of the Participant's
death.
(3) For purposes of (2) above, if the surviving spouse dies after
the Participant. but before payments to such spouse begin,
the provisions of (2) above, with the exception of (ii) therein,
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ARTICLE VI
shall be applied as if the surviving spouse were the
Participant.
(4) For purposes of this (h), any amount paid to a child of the
Participant will be treated as if it had been paid to the surviving
spouse if the amount becomes payable to the surviving
spouse when the child reaches the age of majority.
(5) For the purpose of this (h), distribution of a Participant's
interest is considered to begin on the Participant's Required
Beginning Date (or, if (3) above is applicable, the date
distribution is required to begin to the surviving spouse
pursuant to (s) above). If distribution in the form of an annuity
described in (g) above irrevocably commences to the
Participant before the Required Beginning Date. the date
distribution is considered to begin is the date distribution
actually commences.
SECTION 6.04—ELECTION PROCEDURES
The Participant, Beneficiary. or spouse shall make any election under this
section in writing. The Plan Administrator may require such individual to complete
and sign any necessary documents as to the provisions to be made.
(a) Retirement Benefits. A Participant may elect his Beneficiary or
Contingent Annuitant and may elect to have retirement benefits
distributed under any of the optional forms of retirement benefit
described in the OPTIONAL FORMS OF DISTRIBUTION AND
DISTRIBUTION REQUIREMENTS SECTION of Article VI.
(b) Death Benefits. A Participant may elect his Beneficiary for any single-
sum death benefits and may elect to have such death benefits
distributed under any of the optional forms of death benefit described
in the OPTIONAL FORMS OF DISTRIBUTION AND DISTRIBUTION
REQUIREMENTS SECTION of Article VI.
The Participant may waive the Qualified Preretirement Survivor
Annuity by electing not to have the single-sum death benefit used to
provide a minimum Qualified Preretirement Survivor Annuity as
described in the DEATH BENEFITS SECTION of Article V. If the
Participant makes this election. the single-sum death benefit shall be
paid as if the requirements of subsection (a) of the DEATH
BENEFITS SECTION of Article V have not been met.
Page 62
ARTICLE VI
If the Participant has not elected an optional form of distribution for
the death benefit payable to his Beneficiary, the Beneficiary may. for
his own benefit, elect the form of distribution, in like manner as a
Participant.
The spouse may waive the Qualified Preretirement Survivor Annuity
by electing not to have the single-sum death benefit use to provide a
minimum Qualified Preretirement Survivor Annuity as described in
the DEATH BENEFITS SECTION of Article V. If the spouse makes
this election, the single-sum death benefit shall be paid as if the
requirements of subsection (a) of the DEATH BENEFITS SECTION
of Article V had not been met and the Participant had named his
spouse as Beneficiary.
In lieu of the Qualified Preretirement Survivor Annuity described in
the DEATH BENEFITS SECTION of Article V, the spouse may. for
his own benefit, waive the Qualified Preretirement Survivor Annuity
by electing to have the benefit distributed under any of the optional
forms of death benefit described in the OPTIONAL FORMS OF
DISTRIBUTION AND DISTRIBUTION REQUIREMENTS SECTION
of Article VI.
(c) Qualified Election. The Participant, Beneficiary, or spouse may make
an election at any time during the election period. The Participant,
Beneficiary, or spouse may revoke the election made (or make a new
election) at any time and any number of times during the election
period.
The Participant may make an election as to death benefits at any
time before he dies. The spouse's election period begins on the date
the Participant dies and ends on the date benefits begin. The
Beneficiary's election period begins on the date the Participant dies
and ends on the date benefits begin.
SECTION 6.05 TRANSITIONAL RULES
..
Section 401(a)(9) as in effect before the TEFRA Compliance Date. The form must
be elected by the Participant or, if the Participant has died, by the Beneficiary. The
election will only be applicable if the Participant as an Accrued Benefit as of
December 31, 1983. The Participant's or Beneficiary's election must specify when
the distribution is to begin. the form of distribution and the Contingent Annuitant
death will not be covered by this transitional rule unles, the election contains the
Page 163
ARTICLE VI
required information described above with respect to the distribution to be made
1984, are deemed to meet the above requirements if the form of distribution was
is revoked any subsequent distribution must meet the requirements of Code
- - - - .- e. - - • --- -- - ' e - ' _ --
proposed regulations thereunder. but for the TEFRA Section 242(b)(2) election.
For calendar years beginning after December 31. 1988. such distribution must
meet the minimum distribution incidental benefit requirements in section
1.401(a)(9) 2 of the proposed regulations. any changes in the election will be
considered a revocation of the election. However, the mere substitution or addition
addition does not alter the period over which distributions arc to be made under
the election. directly or indirectly (for example, by altering the relevant measuring
life).
Page 64
ARTICLE VII
ARTICLE VII
TERMINATION OF PLAN
The Employer expects to continue the Plan indefinitely but reserves the right
to terminate the Plan in whole or in part at any time upon giving written notice to
all parties concerned and in compliance with the requirements of Section 185.361
of the Florida Statutes.
A Participant shall be fully (100%) vested in his Accrued Benefit upon
termination of the Plan. Upon complete termination of Plan. no further Employees
shall become Participants, and no further Contributions shall be made except as
may be required by any governmental agency to which the Plan's termination is
subject.
This Plan is not subject to Title IV of the Employee Retirement Income
Security Act of 1974 (ERISA). benefits are not insured by the Pension Benefit
Guaranty Corporation. and the Participant's recourse will be limited to plan assets.
However, the assets of the Plan that are available to provide benefits shall be
allocated and applied as of the effective date of termination of Plan according to
any rules, regulations, interpretations, or opinions implementing said Title IV or any
other equitable method as determined by the Plan Administrator and agreed upon
by the Insurer.
No part of the Plan assets shall be paid to the employer at any time, except
that, after the satisfaction of all liabilities under the Plan. any assets remaining will
be paid to the Employer. The payment may not be made if it would contravene any
provision of law.
Page 65
ARTICLE VIII
ARTICLE VIII
ADMINISTRATION OF PLAN
SECTION 8.01—BOARD OF TRUSTEES
A. The sole and exclusive administration of and the responsibility for the
proper operation of the Plan and for making effective the provisions of this
resolution are hereby vested in a Board of Trustees. The Board of Trustees is
hereby designated as the Plan Administrator.
B. The Board of Trustees shall consist of five (5) Trustees. two of whom,
unless otherwise prohibited by law, shall be legal residents of the City, who shall
be appointed by The City of Edgewater City Council and two of whom shall be
Members of the City of Edgewater Police Department who shall be elected by a
majority of the Police Officers who are Participants of the Plan. The fifth Trustee.
who shall also be a legal resident of the City of Edgewater, shall be chosen by a
majority of the previous four Trustees as provided for herein and such person's
name shall be submitted to the City of Edgewater City Council. Upon receipt of the
fifth person's name, the City of Edgewater City Council shall, as a ministerial duty.
appoint such person to the Board of Trustees as its fifth Trustee. The fifth Trustee
shall have the same rights as each of the other four Trustees appointed or elected
as herein provided and shall serve a two (2) year term unless he sooner vacates
the office. Each City Council appointed Trustee shall serve as Trustee for a period
of two (2) years unless he sooner vacates the office or is sooner replaced by the
City of Edgewater City Council at whose pleasure he shall service. Each Police
Officer Trustee shall serve as Trustee for a period of two (2) years, unless he
sooner leaves the employment of the City as a Police Officer or otherwise vacates
his office as Trustee. whereupon a successor shall be chosen in the same manner
as the departing Police Officer Trustee. Each Trustee may succeed himself in
office. The Board shall establish and administer the nominating and election
procedures for electing the fifth Trustee and Officers of the Board of Trustee.
C. The Board shall meet at least quarterly each year.
D. The Board shall be a legal entity with, in addition to other powers and
responsibilities contained herein, the power to bring and defend lawsuits of every
kind, nature, and disposition.
E. The City Attorney shall give advice to said Board of Trustees in all
matters pertaining to their duties in the administration of the Plan whenever
requested: and shall represent and defend said board as its attorney in all suits
and actions at law or in equity that may be brought against it and bring all suits and
actions in its behalf that may be required or determined upon by said Board.
Page • 66
ARTICLE VIII
However, if the Board of Trustees so elects, it may employ independent legal
counsel at the pension fund's expense for the purposes contained herein, together
with such other professional, technical. or other advisers as the Board deems
necessary.
F. The Trustees shall annually, by a majority vote, elect a Chairman and
a Secretary from among their members. The Secretary of the Board shall keep a
complete minute book of the actions. proceedings, or hearings of the Board and
shall comply with all Secretary duties provided in Section 185.06(3) of the Florida
Statutes.
G. The Trustees shall not receive any compensation as such, but may
receive expenses and per diem as provided by Florida law.
H. Each Trustee shall be entitled to one vote on the Board. Three (3)
affirmative votes shall be necessary for any decision by the Trustees at any
meeting of the Board. A Trustee shall have the right to abstain from voting as the
result of a conflict of interest provided that Trustee complies with the provisions of
Section 112.3143, Florida Statutes.
The Board of Trustees shall engage such actuarial, accounting,
legal, and other services as shall be required to transact the business of the Plan.
The compensation of all persons engaged by the Board and all other expenses of
the Board necessary for the operation of the Plan shall be paid from the Pension
Fund at such rates and in such amounts as the Board shall agree.
J. The duties and responsibilities of the Board shall include, but not
necessarily be limited to the following:
1 . To construe the provisions of the Plan and determine all
questions arising thereunder.
2. To determine all questions relating to eligibility and
participation.
3. To determine and certify the amount of all retirement
allowances and other benefits hereunder.
4. To establish uniform rules and procedures to be followed for
administrative purposes. benefit applications and all matters
required to administer the Plan.
5. To distribute to Participants, at regular intervals, information
concerning the Plan.
Page 167
ARTICLE VIII
6. To receive and process all applications for benefits.
7. To authorize all payments whatsoever from the Plan, and to
notify the disbursing agent, in writing, of approved benefit
payments and other expenditures arising through operation of
the Plan.
8. To have performed actuarial duties, independent consultant
duties (as found in Section 185.06 of the Florida Statutes) and
valuations. at least as often as required by law, and make
recommendations regarding any and all changes in the
provisions of the Plan.
9. Annually on or before March 15th the Trustees must submit
the following information on the State of Florida Division of
Retirement:
(a) A certified copy of each and every instrument
constituting or evidencing the Plan.
(b) An independent audit by a Certified Public Accountant
for the most recent fiscal year of the City of Edgewater
showing a detailed listing of the assets and a statement
of all income and disbursements during the year. Such
income and disbursements must be reconciled with the
assets at the beginning and end of the year.
(c) A certified statement listing the investments of the plan
and a description of the methods used in valuing the
instruments.
(d) A statistical exhibit showing the total number of
policemen, the number included in the plan, and the
number of ineligible classified according to the reasons
for their being ineligible.
(e) A statement of the amount the municipality and other
income sources have contributed toward the plan or
will contributed toward the plan for the current calendar
year.
When any of these items would be identical with the
corresponding item submitted for a previous year, it is
Page 168
ARTICLE VIII
not necessary for the Trustees to submit duplicate
information if they make reference to the item in such
previous year's report.
These duties and responsibilities shall not be
interpreted to authorize the Board to amend the Plan.
The Plan shall only be amended upon approval of the
City Council.
K. Where any action which the Board is required to take or any duty or
function which it is required to perform either under the terms herein or under the
general law applicable to it as Trustee under this resolution can reasonably be
taken or performed only after receipt by it from a Participant, the City, or any other
entity. of specific information, certification, direction or instructions, the Board shall
be free of liability in failing to take such action or perform such duty or function until
such information. certification. direction or instruction has been received by it.
L. The Board shall sustain no liability whatsoever for the sufficiency of
the Fund to meet the payments and benefits herein provided for.
M. In any application to or proceeding or action in the courts, only the
Board shall be a necessary party. and no Participant or other person having an
interest in the Fund shall be entitled to any notice or service of process. Any
judgment entered in such a proceeding or action shall be conclusive upon all
persons.
N. Any of the foregoing powers and functions reposed in the Board may
be performed or carried out by the Board through duly authorized agents provided
that the Board at all times maintains continuous supervision over the acts of any
such agent: provided further. that legal title to said Fund shall always remain in the
Board.
SECTION 8.02—RECORDS
All acts and determinations of the Plan Administrator shall be duly recorded.
All these records, together with other documents necessary for the administration
of the Plan. shall be preserved in the Plan Administrator's custody and remain in
compliance with Florida State Statute 119.
Writing (handwriting, typing, and printing) Photostatting, photographing,
microfilming, magnetic impulse, mechanical or electoral recording or other forms
of data compilation shall be acceptable means of keeping records.
SECTION 8.03—INFORMATION AVAILABLE
Page 169
ARTICLE VIII
Any Participant in the Plan or any Beneficiary may examine copies of the
Plan description, latest annual report, any bargaining agreement. this Plan, the
Group Contract or any other instrument under which the Plan was established or
is operated. The Plan Administrator shall maintain all of the items listed in this
section in its office, or in such other place or places as it may designate in order to
comply with governmental regulations and remain in compliance with Florida State
Statute 119. These items may be examined during reasonable business hours.
Upon the written request of a Participant or Beneficiary receiving benefits under
the Plan, the Plan Administrator will furnish him with a copy of any of these items.
The Plan Administrator may make a reasonable charge to the requesting person
for the copy.
SECTION 8.04—DELEGATION OF AUTHORITY
All or any part of the administrative duties and responsibilities under this
article may be delegated by the Plan Administrator to a retirement committee. The
duties and responsibilities of the retirement committee shall be set out in a
separate written agreement.
Page 70
ARTICLE IX
ARTICLE IX
GENERAL PROVISIONS
SECTION 9.01—AMENDMENTS
The EmployerCity Council may amend this Plan at any time. including any
remedial retroactive changes (within the specified period of time as may be
determined by Internal Revenue Service regulations) to comply with the
requirements of any law or regulation issued by any governmental agency to which
the Plan is subject. An amendment (including a change in the actuarial basis for
determining optional retirement benefits) may not diminish or adversely affect any
accrued interest or benefit of Participants or their beneficiaries nor allow reversion
or diversion of Plan assets to the Employer at any time. except ast may be
necessary to comply with the requirements of any law or regulation issued by any
governmental agency to which the Plan is subject.
If the Group Contract is amended to change the actuarial basis used to
determine benefits payable under the Plan and the amendment is subject to the
contract holder's discretion. terminated. any benefit payable on or after the
effective date of such amendment which is attributable to a Participant's Accrued
Benefit as of such effective date, shall not be less than the amount of benefit the
Participant would have received if the actuarial basis had not been changed.
SECTION 9.02—DIRECT ROLLOVERS
This section applies to distributions made on or after January 1 , 1993.
Notwithstanding any provision of the Plan to the contrary that would otherwise limit
a Distributees election under this section. a Distributee may elect, at the time and
in the manner prescribed by the Plan Administrator, to have any portion of an
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan, specified
by the Distributee, in a Direct Rollover.
SECTION 9.03—PROVISIONS RELATING TO THE INSURER
The obligations of the Insurer shall be governed solely by the provisions of
this Article.
Page 171
ARTICLE IX
Until notice of any amendment or termination of this Plan has been received
by the Insurer at its home office, the Insurer is and shall be fully protected in
assuming that the Plan has not been amended or terminated according to the
latest information which it has received at its home office.
SECTION 9.04—EMPLOYMENT STATUS
Nothing contained in this Plan gives an Employee the right to be retained in
the Employer's employ or to interfere with the Employer's right to discharge any
Employee.
SECTION 9.05—RIGHTS TO PLAN ASSETS
No Employee shall have any right to or interest in any assets of the Plan
upon termination of his employment or otherwise except as specifically provided
under this Plan, and then only to the extent of the benefits payable to such
Employee in accordance with Plan provisions.
Any final payment or distribution to a Participant or his legal representative
or to any Beneficiaries, spouse or Contingent Annuitant of such Participant under
the Plan provisions shall be in full satisfaction of all claims against the Plan, the
Plan Administrator, the Insurer, and the Employer arising under or by virtue of the
Plan.
SECTION 9.06—BENEFICIARY
Each Participant may name a Beneficiary to receive any death benefit(other
than any income payable to a Contingent Annuitant) that may arise out of his
participation in the Plan. The Participant may change his Beneficiary from time to
time. Unless an election has been made, for purposes of distributing any death
benefits before Retirement Date, the Beneficiary of a Participant who has a spouse
who is entitled to a Qualified Preretirement Survivor Annuity shall be the
Participant's spouse. tThe Participant's Beneficiary designation and any change of
Beneficiary shall be subject to the provisions of the ELECTION PROCEDURES
SECTION of Article VI. It is the responsibility of the Participant to give written notice
to the Insurer of the name of the Beneficiary on a form furnished for that purpose.
With the Employer's consent, the Plan Administrator may maintain records
of Beneficiary designations for Participants before their Retirement Dates. In that
event. the written designations made by Participants shall certify to the Insurer the
Beneficiary designation on its records for the Participant.
Page 172
ARTICLE IX
If. at the death of a Participant, there is no Beneficiary named or surviving,
any death benefit under the Group Contract shall be paid under the applicable
provisions of the Group Contract this Article.
SECTION 9.07—NONALIENATION OF BENEFITS
Benefits payable under the Plan are not subject to the claims of any creditor
of any Participant. Beneficiary. spouse or Contingent Annuitant. A Participant,
Beneficiary. spouse or Contingent Annuitant does not have any rights to alienate,
anticipate, commute, pledge, encumber or assign any of such benefits.
SECTION 9.08—CONSTRUCTION
The validity of the Plan or any of its provisions is determined under and
construed according to Florida state law. In case any provision of this Plan is held
illegal or invalid for any reason, such determination shall not affect the remaining
provisions of this Plan, and the Plan shall be construed and enforced as if the
illegal or invalid provisions had never been included.
In the event of any conflict between the provisions of the Plan and the terms
of any contract or policy issued hereunder, the provisions of the Plan control the
operation and administration of the Plan.
SECTION 9.09—LEGAL ACTIONS
The Plan and the Plan Administrator are the necessary parties to any action
or proceeding involving the assets held with respect to the Plan or administration
of the Plan. No person employed by the Employer, no Participant. former
Participant or their Beneficiaries or any other person having or claiming to have an
interest in the Plan is entitled to any notice of process. A final judgment entered in
any such action or proceeding shall be binding and conclusive on all persons
having or claiming to have an interest in the Plan.
SECTION 9.10—SMALL AMOUNTS
If the monthly retirement income payable to a Participant is less than
5100.00 or if the Present Value of the Participant's vested Accrued Benefit has
is less than $3,540 $5,000. such Present Value shall be payable
in a single sum as of the Participant's Retirement Date or the date he ceases to be
an Employee for any reason other than death. If the Participant's vested Accrued
Benefit is zero on the date he ceases to be an Employee for any reason other than
death, he shall be deemed to have received a single sum payment of the Present
Value of his vested Accrued Benefit on such date. This is a small amounts
payment. Such small amounts payment shall be made to the Participant or the
Page 173
ARTICLE IX
Participant's designated beneficiary. Such small amounts payment shall result in
all of a Participant's Accrued Benefit being disregarded and is in full settlement of
all benefits otherwise payable. If the Present Value of the Qualified Preretirement
Survivor Annuity derived from the Participant's Accrued Benefit and the
Participant's Account has never exceeded $3,580 $5,000. the Present Value of
any death benefit shall be payable in a single sum as of the date the Participant
dies if such Present Value is not more than S3,500$5,000. This is a small amounts
payment. Such small amounts payment shall be made to the Participant's
Beneficiary (spouse if the death benefit is payable to the spouse). Such small
amounts payment is in full settlement of the death benefit otherwise payable.
No other small amounts payments shall be made.
SECTION 9.11—WORD USAGE
The masculine gender. where used in this Plan, shall include the feminine
gender and the singular words as used in this Plan may include the plural, unless
the context indicates otherwise.
Page 174
ADOPTION OF PLAN
ADOPTION OF PLAN
By executing this Plan, the Employer acknowledges having counseled to the extent
necessary with selected legal and tax advisors regarding the Plan's legal and tax
implications.
Executed this /<41''day of 1)a.,c7 ,,a . 201(4..
ATTEST: CITY OF EDGEWATER, FLORIDA
,e-141 - c,,,pas-
CITY CLERK MICHAEL IGNASIA
MAYOR
APPROVED FOR FORM AND
CORRECTNESS:
AARON R. WO
CITY ATTORNEY
Page 175