(A) Due to changes in federal law, and in order to comply with certain requirements of the Internal Revenue Service regarding the tax qualified status of the Employee Retirement System and Plan of the city, it is necessary to amend the definition of compensation contained in the Employee Retirement System and Plan as hereinafter set forth.
(B) (1) The Employee Retirement System and Plan of the city, as adopted, is hereby amended only by adding the following language to the definition of compensation in the State Municipal Retirement System Master Defined Benefit Plan and Trust, as amended and restated July 1, 1992, which is attached to Ordinance No. 2969 as Exhibit “A” thereto and expressly incorporated therein and adopted by reference. In addition to other applicable limitations set forth in the plan, and notwithstanding any other provision of the plan to the contrary, for plan years beginning on or after January 1, 1994, the annual compensation of each employee taken into account under the plan shall not exceed the Omnibus Budget Reconciliation Act of 1993 (OBRA'93) annual compensation limit. The OBRA'93 annual compensation limit is $150,000, as adjusted by the Commissioner for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months over which compensation is determined (determination period) beginning in the calendar year. If a determination period consists of fewer than 12 months, the OBRA'93 annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. For plan years beginning on or after January 1, 1994, any reference in this plan to the limitation under Section 401(x)(17) of the code shall mean the OBRA '93 annual compensation limit in effect for that prior determination period.
(2) For this purpose, for determination periods beginning before the first day of the first plan year beginning on or after January 1, 1994, the OBRA'93 annual compensation limit is $150,000.
(Ord. 3009, passed 5-7-96)