(a) Normal Retirement. Each participant shall be entitled to normal retirement benefits after retirement on or after the participant has attained normal retirement age.
(b) (1) Normal retirement benefit. Except as otherwise provided in paragraph (b)(2) hereof, each participant who becomes entitled to a benefit pursuant to subsection (a) hereof shall receive a benefit paid monthly in an amount equal to fifty percent of the participant's final monthly average salary, as determined herein. In addition, each such participant shall receive a single sum distribution, in an amount equal to fifty percent of the amount of participant contributions which the participant has paid into the Fund, plus interest credited at three percent per annum. Interest shall be credited, in the form of a simple interest rate, from the midpoint of the Plan year during which the contributions were paid to the date of distribution hereunder. (Ord. 2139. Passed 3-15-93.)
(2) Retirement benefit for participants retiring on or after December 28, 1999, and before January 7, 2000. Each participant who becomes entitled to a benefit pursuant to subsection (a) hereof shall receive a benefit paid monthly in an amount equal to sixty-three percent of the participant's final monthly average salary, as determined herein. In addition, each such participant shall receive a single sum distribution, in an amount equal to fifty percent of the amount of participant contributions which the participant has paid into the Fund, plus interest credited at three percent per annum. Interest shall be credited, in the form of a simple interest rate, from the midpoint of the Plan year during which the contributions were paid to the date of distribution hereunder.
Any participant wishing to retire in accordance with this paragraph must set his or her effective date of retirement on or after December 28, 1999, and before January 7, 2000.
This paragraph shall become null and void as of January 31, 2000.
(Ord. 2258. Passed 12-29-99.)
(c) Late Retirement. A participant may continue to work beyond the attainment of normal retirement age, subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of subsection (a) hereof continues to work beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and retirement begins. The retirement benefit of a participant who retires after the attainment of normal retirement age shall be calculated in accordance with subsection (b) hereof on the basis of the final monthly average salary as of such participant's actual retirement date.
(d) Payment of Benefits. Retirement benefit payments shall be payable as of the first day of the month coincident with or next following the participant's retirement date and the first day of each month thereafter during the participant's lifetime. A participant must complete an application for benefit, in the manner prescribed by the Plan Administrator, and deliver such application to the Plan Administrator at least thirty days prior to the date on which benefit payments shall commence. Notwithstanding anything contained herein to the contrary, no retirement benefit payments nor any other payments shall be due or payable on or before the first day of the month coincident with or next following the date that is thirty days after the date the Plan Administrator receives the application for benefits. Payment of benefits hereunder shall cease as of the date of death of the participant.
(e) Maximum Benefit Limitations.
(1) Notwithstanding any provision of this Plan to the contrary, no benefit provided under this Plan attributable to contributions of the employer shall exceed, as an annual amount, the lesser of:
A. The amount specified in Code Section 415(b)(1)(A), as adjusted pursuant to Code Section 415(d), which amount shall be one hundred twelve thousand, two hundred twenty-one dollars ($112,221) as of the restatement date of this Plan, assuming the form of benefit shall be a straight life annuity (with no ancillary benefits); or
B. One hundred percent of the participant's average compensation for the participant's high three years.
(2) The limitations described in paragraph (e)(1) hereof shall be governed by the following conditions and definitions:
A. "Compensation" shall include the participant's wages, salaries and fees for personal services actually rendered in employment, to the extent the amounts are includable in gross income, and shall exclude contributions made by the employer to a plan of deferred compensation, to the extent that, before the application of Code Section 415 limitations to that plan, the contributions are not includable in the gross income of the employee for the taxable year in which contributed; exclude distributions from a qualified plan of deferred compensation; and exclude other amounts which receive special tax benefits, such as premiums for group term life insurance, to the extent not includable in the gross income of the employee, or contributions made by the employer (whether made under a salary reduction agreement or not) to the purchase of an annuity contract pursuant to Code Section 403(b).
B. Benefits paid or payable in a form other than a straight life annuity (with no ancillary benefits), or where the employee contributes to the Plan or makes rollover contributions, shall be adjusted on an actuarially equivalent basis to determine the limitation contained herein.
C. In the case of a benefit which commences prior to the attainment of age sixty-two by the participant, the limitation set forth in paragraph (e)(1)A. hereof shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to paragraph (e)(1)A. hereof commencing at age sixty-two. However, the reduction shall not reduce the limitation below seventy-five thousand dollars ($75,000) for a benefit commencing at or after age fifty-five, or if the benefit commences prior to the attainment of age fifty-five, the amount which is actuarially equivalent to a benefit of seventy-five thousand dollars ($75,000) commencing at age fifty-five. However, in the case of a qualified participant (a participant with respect to whom a period of at least fifteen years of service, including applicable military service, as a full-time employee of a police or fire department is taken into account in determining the amount of benefit), the limitation contained herein shall not reduce the limitation set forth in paragraph (e)(1)A. hereof to an amount less than sixty-two thousand, three hundred forty-five dollars ($62,345) as of the restatement date of this Plan, and such amount shall be adjusted pursuant to Code Section 415(d).
D. In the case of a benefit which commences after the attainment of age sixty-five by the participant, the limitation set forth in paragraph (e)(1)A. hereof shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to paragraph (e)(1)A. hereof commencing at age sixty-five.
E. Benefits paid to a participant which total less than ten thousand dollars ($10,000) from all defined benefit plans maintained by the employer, expressed as an annual benefit, shall be deemed not to exceed the limitation of this paragraph, provided that the employer has not, at any time, maintained a defined contribution plan in which the participant has participated. However, in the case of a participant with fewer than ten years of participation, the limitation expressed in this paragraph shall be reduced by one-tenth for each year of participation less than ten, but in no event shall this limitation be less than one thousand dollars ($1,000).
F. The limitations expressed herein shall be based upon Plan years for calculation purposes, shall be applied to all defined benefit plans maintained by the employer as one defined benefit plan and to all defined contribution plans maintained by the employer as one defined contribution plan, and shall be applied and interpreted, consistent with Code Section 415 and regulations thereunder, as applicable to government plans in general and this Plan in particular.
(f) Required Distributions.
(1) Notwithstanding any other provision of this Plan, the entire benefit of any participant who becomes entitled to benefits prior to his or her death shall be distributed either:
A. Not later than the required beginning date; or
B. Over a period beginning not later than the required beginning date and extending over the life of such participant or over the lives of such participant and a designated beneficiary (or over a period not extending beyond the life expectancy of such participant, or the joint life expectancies of such participant and a designated beneficiary).
If a participant who is entitled to benefits under this Plan dies prior to the date when his or her entire interest has been distributed to him or her after distribution of his or her benefits has begun in accordance with paragraph (f)(1)B. hereof, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under paragraph (f)(1)B. hereof, as of the date of his or her death.
(2) If a participant who is entitled to benefits under this Plan dies before distribution of his or her benefit has begun, the entire interest of such employee shall be distributed within five years of the death of such employee, unless the following sentence is applicable: If any portion of the employee's interest is payable to (or for the benefit of) a designated beneficiary, such portion shall be distributed over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), and such distributions begin not later than one year after the date of the employee's death or such later date as provided by regulations issued by the Secretary of the Treasury, then for purposes of the five-year rule set forth in the preceding sentence, the benefit payable to the beneficiary shall be treated as distributed on the date on which such distributions begin. However, notwithstanding the preceding sentence, if the designated beneficiary is the surviving spouse of the participant, then the date on which distributions are required to begin shall not be earlier than the date upon which the employee would have attained age seventy and one-half. Further, if the surviving spouse dies before the distributions to such spouse begin, this paragraph shall be applied as if the surviving spouse were the employee.
(3) For purposes of this subsection, the following definitions and procedures shall apply:
A. "Required beginning date" means April 1 of the calendar year following the later of the calendar year in which the employee attains age seventy and one-half or the calendar year in which the employee retires.
B. "Designated beneficiary" means any individual designated by the employee under this Plan according to its rules.
C. Any amount paid to a child shall be treated as if it had been paid to the surviving spouse if such amount will be payable to the surviving spouse upon such child's reaching majority (or other designated event permitted under regulations issued by the Secretary of the Treasury).
D. The life expectancy of an employee and/or an employee's spouse (other than in the case of a life annuity) may be redetermined, but not more frequently than annually.
(g) Assignment of Benefits. The pension benefit payments prescribed herein shall not be subject to attachment, execution, levy, garnishment or other legal process, shall be payable only to the participant or designated beneficiary and shall not be subject to assignment or transfer.
(h) Retired Participants. Any participant who has retired prior to the restatement date shall not have the benefit altered in any way by the provisions of this amended and restated Plan, except where otherwise expressly provided herein. Such retired participants shall continue to have their benefits governed by the terms of the Plan in effect on the day preceding the restatement date.
(Ord. 2139. Passed 3-15-93.)
(i) Act 64 of 2002 - Ad Hoc Benefit Adjustment. Act 64 of 2002, which amends Act 147 of 1988, was signed into law June 19, 2002. This law requires that pension plans covering firefighters provide an ad hoc benefit adjustment for retirees whose benefits began before January 1, 1996. The increase is the sum of the following:
(1) Base adjustment of fifteen cents ($0.15) time number of whole years of active service times number of whole years retired (as of January 1, 2001); and
(2) Longevity adjustment equal to the base adjustment times the longevity factor. The longevity factor is .025 times the number of whole years retired (as of January 1, 2001), plus .05 times the number of whole years retired (as of January 1, 2001).
(Ord. 2305. Passed 9-16-02.)