Fort Walton Beach Council agenda — 02-08-11 regular — reading text

b), a Member's applicable limit will be applied taking into consideration cost of living E increases as required by Section 415( b) of the Code and applicable Treasury Regulations. M 0 5. Other Adjustments in Limitations. M CO T a A. In the event the Member's retirement benefits become payable before age c sixty -two ( 62), the limit prescribed by this Section shall be reduced in accordance with regulations issued by the Secretary ofthe Treasury pursuant to the provisions of Code Section 415( b) of the Code, so that such limit (as L O 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). ti B. In the event the Member's benefit is based on at least fifteen ( 15) years of M CO Credited Service as a full -time employee of the police or fire department of the City, the adjustments provided for in A. above shall not apply. O i.: C. The reductions provided for in A. above shall not be applicable to disability C 0 benefits pursuant to Section 8, or pre- retirement death benefits paid pursuant E s 0 M 4a D. In the event the Member's retirement benefit becomes payable after age sixty- Q five (65), for purposes of determining whether this benefit meets the limit set forth in subsection 1 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. Page 24 of53 Pages  6. Less than Ten ( 10)_Years of Service. The maximum retirement benefits payable 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 1 of this Section multiplied by a fraction, the numerator ofwhich is the number of the Member's years of Credited Service and the denominator of which is ten ( 10). The reduction provided by this subsection cannot reduce the maximum benefit below 10 %. The reduction provided for in this subsection shall not be applicable to disability benefits paid pursuant to Section 8. or tire- retirement death benefits paid pursuant to Section 7. 7. Participation in Other Defined Benefit Plans. The limit of this Section with respect to any Member who at any time has been a Member in any other defined benefit plan as defined in Code Section 414( j) maintained by the City shall apply as if the total benefits payable under all City defined benefit plans in which the Member has been a Member were payable from one plan. 8. Ten Thousand Dollar ($ 10, 000) Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limit set forth in this Section if the benefits payable, with respect to such Member under this Plan and under all other qualified defined benefit pension plans to which the City contributes, do not exceed ten thousand dollars ($ 10, 000) for the applicable Plan Year and for any prior Plan Year and the City has not any time maintained a qualified defined contribution plan in which the Member participated. 9. Reduction of Benefits. Reduction of benefits and/ or contributions to all plans, where required, shall be accomplished by first reducing the Member's benefit under any defined benefit plans in which Memberparticipated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution l ans in which the Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such Member. 10. Service Credit Purchase Limits. A. Effective for permissive service credit contributions made in limitation vears beginning after December 31, 1997, if a Member makes one or more contributions to purchase permissive service credit under the Plan, as allowed in Section 23. 3. and 23. 4., then the requirements of this Section will be treated as met only if. the requirements of Code ion 415( b) are determined treating the accrued benefit tributions as annual benefit for purpose of Code Section 415 or Page 25 of 53 Pages  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 ( 1), the Plan will not fail to meet the reduced limit under Code Section 415( b)( 2)( c) solely by reason of this subparagraph ( 3), and for purposes of applying subparagraph ( 2) the Plan will not fail to meet the percentage limitation under Section 415( c)( 1)( B) of the Code solely by reason of this subparagraph (3). For purposes of this subsection the term " permissive service credit" means_ C a recognized by the Plan for purposes of calculating a Member's benefit C under the plan, 0 N 0 which such Member has not received under the plan, and a U. U. which such Member may receive only by making a voluntary additional contribution, in an amount determined under the Plan, 0 which does not exceed the amount necessary to fund the benefit E m attributable to such service credit. 0 ti Effective for permissive service credit contributions made in limitation years M CO beginning after December 31, 1997, such term may, if otherwise provided by as the Plan, include service credit for periods for which there is no performance v c of service, and, notwithstanding clause B.( 2), may include service credited in order to provide an increased benefit for service credit which a Member is receiving under the Plan. L O C. For purposes of applying the limits in this subsection 10., only and for no r other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a calendar year, except ti as noted below and as permitted by Treasury Regulations Section 1. 415( c)- 2, M CO or successor regulations. Unless another definition of compensation that is permitted by Treasury Regulations Section 1. 415( c) -2, or successor L O 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 C 0 compensation to an employee by an employer for which the employer is E s required to fuinish the employee a written statement under Code Sections v a 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 a wages based on the nature or location of the employment or the services performed (