Fort Walton Beach Council agenda — 03-25-08 workshop agenda — reading text

value remaining after the apportionment under paragraph 1, 774 apportionment shall next be made in respect of each member in the service of the 775 City on such date who is fully vested and who is not entitled to an apportionment 776 under paragraph 1, in the amount required to provide the actuarial equivalent of 777 the vested portion of the accrued normal retirement benefit (but not less than the 778 member' s accumulated contributions), based on the credited service and final 779 average monthly earnings as of such date, and each vested former member then 780 entitled to a deferred benefit who has not, by such date, begun receiving benefit 1 payments, in the amount required to provide said actuarial equivalent of the 782 vested portion of the accrued normal retirement benefit ( but not less than the 783 members accumulated contributions), provided that, if such remaining asset value 784 be less than the aggregate of the amounts apportioned hereunder, such latter 785 amounts shall be proportionately reduced so that the aggregate of such reduced 786 amounts will be equal to such remaining asset value. 787 ( c) If there be any asset value after the apportionments under paragraphs 1 and 2, 788 apportionment shall be made in respect of each member in the service of the City 789 on such date who is not entitled to an apportionment under paragraphs 1 and 2 in 790 the amount equal to the member' s accumulated contributions, provided' that, if 791 such remaining asset value be less than the aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that the 792 793 aggregate of such reduced amounts will be equal to such remaining asset value. 794 ( d) If there be any asset value remaining after the apportionments under paragraphs 1, 795 2, and 3, apportionment shall lastly be made in respect of each member included 96 in paragraph 3 above to the extent of the actuarial equivalent of an non -vested Page 27  FWB General Employees' Retirement Plan Final Version 9/ 30/ 02 797 accrued normal retirement benefit, less than the amount apportioned in paragraph 798 3, based on the credited service and final average monthly earnings as of such 799 date, provided that, if such remaining asset value be less than the aggregate of the 800 amounts apportioned hereunder, such amounts shall be reduced so that the 801 aggregate of such reduced amounts will be equal to such remaining asset value. 802 ( e) In the event that there be asset value remaining after the full apportionment 803 specified in paragraphs 1, 2, 3, and 4, such excess shall be returned to the City. 804 The allocation of the fund provided in this subsection may, as decided by the trustees, be 805 carried out through the purchase of insurance company contracts to provide the benefits 806 determined in accordance with this subsection. The fund may be distributed in one ( 1) sum to 807 the persons entitled to said benefits or the distribution may be carried out in such other equitable 808 manner as the trustees may direct. The fund may be continued in existence for purposes of 809 subsequent distributions. 810 1 See. 17 -20. 1. Transfer of City employees between plans. 812 ( 1) If a City employee participating as a member of another retirement plan within 813 the City system becomes a general employee under the definitions of this Plan, his membership 814 shall be transferred to this Plan. The years of credited service that he has accrued under the 815 predecessor plan shall be credited to him under this Plan. The entire balance of the employee' s 816 accumulated contributions shall be transferred without delay to the General Employees Pension 817 Trust Fund. In addition, the advisory committee shall request that an actuarial calculation be 818 performed to determine the portion of the predecessor plan' s funds which have been accrued to 819 fund the benefits of the transferring employee. As soon as the amount can be determined, the 820 Plan administrator shall transfer such amount from the predecessor fund to this fund and provide 821 a memorandum to each plan of the results of the transfer. 822 ( 2) If a member of this Plan transfers to another City retirement plan because of a 823 change in employment within the City, the credited, service accrued under this Plan shall be 824 transferred to the other plan, if the other plan accepts the transfer. When the amount of the R25 employee member' s contributions and the portion of this plan' s funds attributable to the Page 28  FWB General Employees' Retirement Plan Final Version 9/ 30/ 02 826 employee member' s participation can be determined by an actuarial calculation, those funds 827 shall be transferred without delay to the employee member' s new plan. 828 829 Sec. 17 -21. Maximum Pension 830 1) Basic Limitation 831 a) Subject to the adjustments hereinafter set forth, the maximum amount of annual 832 retirement income payable with respect to a member under this Plan shall not 833 exceed $ 160,000 adjusted for cost of living increases in accordance with Section 834 415( d) of the Internal Revenue Code. 835 b) For purposes of applying the above limitation, benefits payable in any form other 836 than a straight life annuity with no ancillary benefits shall be adjusted, as provided 837 by the Treasury Regulations, so that such benefits are the actuarial equivalent of a 838 straight life annuity. 939 c) For purposes of this section, the following shall not be taken into account: 0 1. Any ancillary benefit that is not. directly related to retirement income 841 benefits; 842 2. any other benefit not required under § 415( b)( 2) of the Internal Revenue 843 Code and Regulations thereunder to be taken into account for purposes of 844 the limitation of §415( b)( 1) of the Internal Revenue Code. psi d) Participation in Other Defined Benefit Plans. The limitation of this Section with 846 respect to any member who at any time has been a member in any other defined 847 benefit plan (as defined in section 4140) of the Code) maintained by the City shall 848 apply as if the total benefits payable under all defined benefit plans in which the 849 member has been a member were payable from one ( 1) plan. 850 e) Adjustments in Limitations. 851 1. In the event the member' s retirement benefits become payable before age 852 sixty -two ( 62), the limitation of one hundred sixty thousand dollars 853 160, 000) prescribed by this Section shall be reduced in accordance with 054 regulations issued by the Secretary of the Treasury pursuant to the 5 provisions of section 415( b) of the Code, but not less than seventy -five Page 29  Final Version 9/ 30/ 02 FWB General Employees' Retirement Plan I t;a 856 thousand dollars ($ 75, 000. 00), if the benefit begins at or after age fifty - five ( 55). In the event the member' s retirement benefit becomes payable before age fifty -five ( 55), the limitation of seventy -five thousand dollars 75, 000. 00) shall be reduced from age fifty -five ( 55) in accordance with pursuant to the Ob regulations issued by the Secretary of the Treasury. provisions of section 415( b) of the Code. 2. In the event member' s retirement benefit becomes payable after age sixty - five ( 65), for purposes of determining whether this benefit meets the limitation set forth in subsection a. of this section, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 6 sixty -five ( 65). This adjustment shall be made using an assumed interest rate of five percent ( 5 %) and shall be made in accordance with regulations 6 promulgated by the Secretary of the Treasury or his delegate. 869 ( f) Less than Ten ( 10) Years of Service. The maximum retirement benefits payable o under this Section to any member who has completed less than ten ( 10) years of Credited Service with the City shall be the amount determined under subsection a. 872 of this Section multiplied by a fraction, the numerator of which is the number of 873 the Member' s years of Credited Service and the denominator of which is ten ( 10). 874 The reductions provided for in this subsection shall not be applicable to disability 875 benefits paid pursuant to Section 9 or pre- retirement death benefits pursuant to 876 Section 8. 877 g) Ten Thousand Dollar ($ 10, 000.00) Limit. Notwithstanding the foregoing, the