Fort Walton Beach Ordinance — 1686 Amend General Employees Pension - Election to Participate — reading text

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 792 hereunder such latter amount shall be proportionately reduced so that the 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 6 in paragraph 3 above to the extent of the actuarial equivalent of an non- vested Page 27  FWB General Employees' Retirement Plan Pinal Version 9/ 30/ 02 797 accrued nonnal 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 detennined 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 11 Sec. 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 predecessor plan shall be credited to him under this Plan. The entire balance of the employee' s 815 816 accumulated contributions shall be transferred without delay to the General Employees Pension 81 7 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 detennined, 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 be 823 change in employment within the City, the credited service accrued under this Plan shall 824 transferred to the other plan, if the other plan accepts the transfer. When the amount of the attributable to the 825 employee member' s contributions and the portion of this plan' s funds Page 28  PWB General Employees' Retirement Plan Final Version 9/ 30/ 02 826 employee member' s participation can be detennined 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. 839 ( c) For purposes of this section, the following shall not be taken into account: O 1. Any ancillary benefit that is not directly related to retirement income 841 benefits; 842 2. any other benefit not required under 9415(b)( 2) of the Internal Revenue 843 Code and Regulations thereunder to be taken into account for purposes of 844 the limitation of 9415( b)( I) of the Internal Revenue Code. 845 ( 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 defmed 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 854 regulations issued by the Secretary of the Treasury pursuant to the 55 provisions of section 415( b) of the Code, but not less than seventy- five Page 29  FWB General Employees' Retirement Plan Final Version 9/ 30/ 02 856 thousand dollars ($ 75, 000. 00), if the benefit begins at or after age fifty- 857 five ( 55). In the event the member' s retirement benefit becomes payable 858 before age fifty-five ( 55), the limitation of seventy- five thousand dollars 859 75, 000. 00) shall be reduced from age fifty-five ( 55) in accordance with 860 regulations issued by the Secretary of the Treasury pursuant to the 861 provisions of section 415( b) of the Code. 862 2. In the event member' s retirement benefit becomes payable after age sixty- 863 five ( 65), for purposes of detennining whether this benefit meets the 864 limitation set forth in subsection a. of this section, such benefit shall be 865 adjusted so that it is actuarially equivalent to the benefit beginning at age 866 sixty-five ( 65). This adjustment shall be made using an assumed interest 867 rate of five percent ( 5%) and shall be made in accordance with regulations 868 promulgated by the Secretary of the Treasury or his delegate. 869 f) Less than Ten ( 1 0) Years of Service. The maximum retirement benefits payable 70 under this Section to any member who has completed less than ten ( 10) years of 871 Credited Service with the City shall be the amount detennined 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 878 retirement benefit payable with respect to a member shall be deemed not to 879 exceed the limitations set forth in this Section if the benefits payable, with respect 880 to such member under this system and under all other qualified defined benefit 881 pension plans to which the City contributes, do not exceed ten thousand dollars 882 10, 000. 00) for the applicable plan year and for any prior plan year and the City 883 has not at any time maintained a qualified defined contribution plan in which the 884 member participated. Page 30  FWB General Employees' Retirement Plan Final Version 9/ 30/ 02 885 h) Reduction of Benefits. Reduction of benefits and/or contributions to all plans, 886 where required, shall be accomplished by first reducing the Member' s benefit 887 under any defined benefit plans in which the member participated, such reduction 888 to be made fITst with respect to the plan in which member most recently accrued 889 benefits and thereafter in such priority as shall be determined by the Board and 890 the plan administrator of such other plans, and next, by reducing or allocating 891 excess forfeitures for defined contribution in which the plans member 892 participated, such reduction to be made first with respect to the plan in which 893 member most recently accrued benefits and thereafter in such