Loading...
(A) Amount of regular pension.
(1) The monthly regular pension for guardian employee members employed by the town as an eligible employee on and after July 1, 1998 shall, except as otherwise provided in division (A)(4), be equal to the following:
(a) One-twelfth (1/12) of 2.5% of a guardian employee member's average annual compensation multiplied by the guardian employee member's years of credited service to a maximum of 20 years; plus
(b) One-twelfth (1/12) of 3% of a guardian employee member's average annual compensation multiplied by the guardian employee member's years of credited service from 21 to 25 years; plus
(c) One-twelfth (1/12) of 2% of a guardian employee member's average annual compensation multiplied by the guardian employee member's years of credited service in excess of 25, to a maximum of 35 years.
(d) A guardian employee member's retirement pension shall not exceed 80% of his/her average annual compensation, subject to the provisions of division (A)(2), below.
(2) The maximum retirement pension for guardian employee members hired on or after July 1, 1981 shall be limited to 80% of his/her average annual compensation. For guardian employee members hired before July 1, 1981, the maximum retirement pension payable may exceed 80% of average annual compensation, provided that a guardian employee member with more than 80% of average annual compensation as of June 30, 2006 who continues to work shall have his/her benefit frozen as of June 30, 2006, based on the guardian employee member's average annual compensation on such date and benefit accrued as of such date.
(3) The monthly regular pension for a guardian employee member who terminated service or retired prior to July 1, 1998 shall be equal to the following, unless the provisions of the plan in effect when the guardian employee member terminated set forth a different pension benefit:
(a) One-twelfth (1/12) of 2% of a guardian employee member's average annual compensation multiplied by the number of years of credited service up to a maximum of 25 years; plus
(b) An additional one-twelfth (1/12) of 3% of a guardian employee member's average annual compensation multiplied by the number of years of credited service rendered in excess of 25.
(c) For guardian employees first hired after July 1, 1981, not more than a total of 35 years of credited service shall be counted.
(4) In the event a guardian employee member has service as both a guardian employee and a service employee, his/her regular pension attributable to his/her service as a service employee shall be calculated separately, in accordance with the provisions of § 31.37, and based upon his/her compensation and years of credited service accrued while as a service employee.
(B) Minimum retirement benefit.
(1) For guardian employee members who terminate employment on or after July 1, 1985, the monthly regular pension benefit under division (A) of this section shall not be less than sixty-hundredths (60/100) of 1% of the guardian employee member's average annual compensation, divided by 12, for each year of credited service, or $3.25, whichever is greater.
(2) For guardian employee members who terminated with a vested benefit before July 1, 1985, their minimum benefit shall be calculated using the applicable provisions of the plan in effect prior to July 1, 2000.
(C) Amount of disability pension.
(1) Service related disability pension. A guardian employee member retiring on a service related disability pension as defined in § 31.36(D) shall receive a monthly benefit equal to the greater of:
(a) 50% of the guardian employee member's average annual compensation; or
(b) The guardian employee member's monthly regular pension calculated in accordance with division (A) of this section as of his/her date of disability.
(2) Non-service related disability pension. A guardian employee member retiring on a non-service related disability pension as defined in § 31.36(E) shall receive a non-service related disability pension equal to the greater of:
(a) For guardian employee employees hired on and after July 1, 1981, 30% of the guardian employee member's average annual compensation determined as of the date of disability. For guardian employee members hired on or after July 1, 1987, 25% of the guardian employee member's average annual compensation determined as of the date of disability; or
(b) The guardian employee member's monthly regular pension calculated in accordance with division (A) of this section as of his/her date of disability.
(D) Amount of early retirement pension benefit. The amount of the early retirement pension benefit shall be calculated in the same manner as the monthly regular pension in division (A) of this section. The early retirement pension shall not be actuarially reduced to take into account such early retirement.
(E) Vested pension.
(1) A guardian employee member shall be entitled to a vested pension after completion of at least ten years of credited service or ten years of vesting service. The amount of the vested pension shall be calculated in the same manner as a regular pension, in accordance with the provisions of the plan and benefit formula in effect on the date the guardian employee member terminated employment. The amount of a vested pension shall then be multiplied by the following percentages if the guardian employee member has less than 15 years of credited service or vesting service:
Years of Credited Service Percent of Vested Pension
1-9 0%
10 50%
11 60%
12 70%
13 80%
14 90%
15 100%
(2) Entitlement to a vested pension provided by this division (E) shall be in lieu of all other benefits provided by the plan for such guardian employee member, his/her spouse and his/her dependent children, except for the return of the guardian employee member's accumulated contributions.
(F) Maximum benefit limitation.
(1) (a) Notwithstanding any provision of the plan to the contrary, for plan years beginning prior to July 1, 2007, the annual benefit of a guardian employee member hereunder (adjusted to an actuarially equivalent straight life annuity based upon the interest rate as determined by the PBGC on January 1 each year) shall not at any time within the limitation year exceed the lesser of $140,000 (the "dollar limitation") or 100% of the guardian employee member's average compensation for his/her high three years.
(b) For plan years beginning on or after July 1, 2007, notwithstanding any provision of the plan to the contrary, in no event shall the maximum annual retirement benefit attributable to town contributions and payable to a guardian employee member who has not yet retired under the terms of the plan, exceed $160,000 (the "defined benefit dollar limitation").
(2) The annual retirement benefit payable to a guardian employee member under the plan shall be deemed not to exceed the applicable maximum limitation of division (F)(l) if:
(a) The annual retirement benefit payable with respect to such guardian employee member under the plan and under all defined benefit plans of the town does not exceed $10,000 for the limitation year, or for any prior limitation year; and
(b) The town has not at any time maintained a defined contribution plan in which the guardian employee member participated.
(3) In the event that a guardian employee member has been a member in the plan less than ten years, the dollar limitation and the defined benefit dollar limitation, as applicable, shall be multiplied by a fraction, the numerator of which is his years of participation in the plan (or part thereof) and the denominator of which is ten. In the event that a member has less than ten years of vesting service, the $10,000 benefit above, shall be reduced by multiplication by a fraction, the numerator of which is his years of service (or part thereof) and the denominator of which is ten.
(G) Maximum benefit limitation definitions. For purposes of divisions (F) through (K) of this section:
(1) The term "ANNUAL BENEFIT" shall mean the benefit the guardian employee member would be entitled to at his/her or her normal retirement date, assuming he or she continues employment until such date, and that all other relevant facts used to determine benefits under the plan remain constant as of the current limitation year for all future limitation years.
(2) "ANNUAL RETIREMENT BENEFIT" means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) under a plan to which employees do not contribute and under which no rollover contributions (as defined in Sections 402(a)(5), 403(a)(4), and 408(d)(3) of the Internal Revenue Code) are made. A benefit payable in any other form shall be converted to the actuarial equivalent of a straight life annuity for purposes of applying these limits, based on a 5% interest assumption. Other required adjustments are provided for in this division. In the event that a guardian employee member's annual retirement benefit is payable in a form other than a straight life annuity, or if the member's contribute to the plan or make rollover contributions (as defined in Sections 402(a)(5), 403(a)(4), and 408(d)(3) of the Internal Revenue Code), the determinations as to whether the limitation described in division (F)(1) has been satisfied shall be made, in accordance with the regulations prescribed by the Secretary, by adjusting such benefit so that it is the actuarial equivalent of a straight life annuity (with no ancillary benefits). For purposes of this division (G)(2), any ancillary benefit which is not directly related to retirement income benefits shall not be taken into account; and that portion of any joint and survivor annuity which constitutes a qualified joint and survivor annuity (as defined in Code Section 417) shall not be taken into account. For purposes of adjusting any benefit, the interest rate assumption shall not be less than the greater of 5% or the rate specified for an actuarial equivalent benefit.
(3) "COMPENSATION" for purposes of the maximum benefit limitations under Section 415 of the Internal Revenue Code, shall mean any and all earnings reported on W-2 forms completed by the town in respect to the plan year specified. Notwithstanding anything herein to the contrary, for plan years commencing after December 31, 1997, "Compensation" for this section shall include (1) any elective deferral (as defined in Section 402(g)(3) of the Internal Revenue Code), (2) any amount which is contributed or deferred by the town at the election of the member and which is not includable in the gross income of the member by reason of Sections 125 (cafeteria plan) or 457 (nonqualified deferred compensation plan) of the Internal Revenue Code. For plan years commencing on and after January 1, 2001, "Compensation" shall also include elective amounts that are not includable in the gross income of the participant by reason of Section 132(f)(4) (qualified transportation fringes) of the Internal Revenue Code. Effective for plan years commencing on or after July 1, 2007, "Compensation" under this code section for any plan year shall not be greater than the limit under Section 401(a)(17) of the Internal Revenue Code that applies for that year.
(4) "LIMITATION YEAR" shall mean a plan year.
(H) Adjustment for early or late commencement of benefits.
(1) (a) For plan years commencing on or after July 1, 2002 and prior to July 1, 2007, if the annual pension benefit of a member begins before age 62, as described in Section 415(b)(8) of the Internal Revenue Code, the $140,000 limitation set forth in division (F)(1)(a) of this section shall be reduced so that it is equivalent to such benefit beginning at the Social Security retirement age as described in Section 415(b)(8) of the Internal Revenue Code, the $140,000 limitation set forth in division (F)(1)(a) of this section shall be reduced so that it is equivalent to such a benefit beginning at the Social Security retirement age as described in Section 415(b)(8) of the Internal Revenue Code. The reduction of this division shall not reduce the limitation of division (F) of this section below $75,000 if the benefit begins at or after age 55, or, if the benefit begins before age 55, the equivalent of the $75,000 limitation for age 55. Notwithstanding the foregoing, effective for plan years commencing on July 1, 1997 any guardian employee member who has been a full time employee of the Town Police or Fire Department for at least 15 years shall not have his or her retirement benefit adjusted under this division (H)(1)(a).
(b) Effective for plan years commencing after June 30, 2007, if the annual benefit of a guardian employee member begins prior to age 62, the defined benefit dollar limitation applicable to the guardian employee member at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the defined benefit dollar limitation applicable to the guardian employee member at age 62 (adjusted under division (H)(3) below, if required). The defined benefit dollar limitation applicable at an age prior to age 62 is determined as the lesser of (i) the actuarial equivalent (at such age) of the defined benefit dollar limitation computed using a 5% interest rate assumption and the applicable mortality table and expressing the guardian employee member's age based on completed calendar months as of the annuity starting date; or (ii) the product of the defined benefit dollar limitation multiplied by the ratio of the annual amount of the immediately commencing straight life annuity under the plan at the guardian employee member's annuity starting date to the annual amount of the immediately commencing straight life annuity under the plan at age 62, both determined without applying the limitations of Section 415 of the Internal Revenue Code. Notwithstanding the foregoing, any guardian employee member with at least 15 years of Guardian as a full time employee of the Police or Fire Department shall not have their retirement benefit adjusted under this division (H)(1)(b).
(2) In the event that a guardian employee member's annual benefit commences after age 65, the dollar limitation and defined benefit dollar limitation, as applicable, shall be increased for the guardian employee member's age such that it is the actuarial equivalent of defined benefit dollar limitation commencing at age 65. For purposes of adjusting the defined benefit dollar Limitation (adjusted under division (H)(3) below, if required), the interest rate assumption shall not be greater than the lesser of 5% or the rate specified for an actuarial equivalent benefit.
(3) Actuarial equivalence under this division (H) shall be determined using a 5% interest assumption. The defined benefit dollar Limitation shall be adjusted annually as provided in Section 415(d) of the Internal Revenue Code pursuant to the regulations prescribed by the Secretary of the Treasury. The adjusted limitation is effective as of January 1st of each calendar year and is applicable to "limitation years" ending with or within that calendar year. The dollar limitation shall not be adjusted except as provided in this division (H).
(4) In the case of disability or survivor benefits provided under the plan, the limitations of division (F)(3) and (H)(1)(a) and (b) of this section shall not apply to:
(a) Income received from the plan as a pension, annuity, or similar pension as the result of the recipient becoming disabled by reason of personal injuries or sickness; or
(b) Amounts received from a governmental plan by the beneficiaries, survivors or the estate of a guardian employee member as the result of the death of the guardian employee Member.
(5) For purposes of adjusting any benefit or limitation no adjustment for cost of living increases shall be taken into account before the year for which such adjustment first takes place.
(I) Protection of prior benefits. For any year before 1986, the limitations prescribed by Section 415 of the Internal Revenue Code as in effect before enactment of the Tax Reform Act of 1986 and all subsequent legislation shall apply, and no pension earned under this plan prior to 1986 shall be reduced on account of the provisions of divisions (F) through (K) of this section if it would have satisfied those limitations under that prior law.
(J) Application of maximum limitations.
(1) The benefit paid under this plan shall not exceed the limitations set forth in division (F) of this section.
(2) If a member on the annuity starting date is not eligible for full monthly benefits under this plan because of the operation of division (F) of this section, the monthly benefit shall thereafter be recalculated annually until the member is receiving a full monthly benefit under the plan's terms without the operation of this division (J). Each such recalculation shall be based on this division, with any applicable adjustment to reflect cost of living increases as permitted by the Treasury Regulations.
(K) For plan benefits subject to Section 417(e)(3) of the Internal Revenue Code, the actuarial equivalent of the annual retirement benefit is equal to the greater of actuarial equivalent for the particular form of benefit payable and the equivalent annual benefit computed using the applicable interest rate and applicable mortality table described below, determined in accordance with regulations prescribed by the Secretary.
(1) The applicable mortality table means the table prescribed by the Secretary of the Treasury. Such table shall be based on the prevailing Commissioner's standard table (described in Section 807(d)(5)(A) of the Internal Revenue Code) used to determine reserves for group annuity contracts issued on the date as of which present value is being determined (without regard to any other subparagraph of Section 807(d)(5)(A) of the Internal Revenue Code). The prevailing Commissioner's standard table for these purposes currently is the GAM '83 mortality table, blended equally between male and female mortality rates. Effective for distributions occurring after December 31, 2002 the applicable mortality table shall be the table prescribed in Rev. Rul. 2001-62. Effective for plan years commencing on or after January 1, 2008, the applicable mortality table shall mean the applicable Section 417(e)(3) of the Internal Revenue Code mortality table as adjusted in accordance with the provisions of Rev. Rul. 2007-67.
(2) The applicable interest rate is the rate of interest set forth in § 31.38(H)((3).
(L) For purposes of applying the foregoing limitations of divisions (F) through (K):
(1) All defined benefit plans of the town, whether or not terminated, are to be treated as one defined benefit plan and all defined contribution plans of the town, whether or not terminated, are to be treated as one defined contribution plan;
(2) For purposes of divisions (F) through (K), the term "town" shall include all departments and agencies of the Town of Hamden, Connecticut.
(Ord. 435, passed 3-12-01; Am. Ord. 571, passed 3-2-09; Am. Ord. 666, passed 12-7-15)
(A) Lifetime benefit. The normal form of retirement pension whether regular, early, disability or vested pension is the lifetime benefit with a modified cash refund as set forth in §§ 31.40(F) or 31.41(E). Payments shall be made in monthly installments, commencing on the date of retirement and ceasing with the last monthly payment prior to death. In any case, upon direction of the Retirement Board, an actuarial equivalent lump-sum payment shall be made in lieu of all benefits if any retirement pension is less than $120 per annum or has a present value of $5,000 or less. Notwithstanding the foregoing, effective March 28, 2005, the member's written consent shall be required for distributions with a present value of $1,000 or more.
(B) Husband and wife benefit. At or before retirement, a member or terminated vested member may elect to convert his or her lifetime benefit to an actuarial equivalent husband and wife benefit, which will pay a reduced retirement amount during the pensioner's life, with the provision that after his or her death either 100%, 66-2/3% or 50% of his or her retirement pension will be paid to the person designated by him, by written designation and duly acknowledged by the Retirement Board. Should both husband and wife die before the member's accumulated contributions have been paid out, then §§ 31.40(F) or 31.41(E) shall apply.
(C) Ten-year certain and life benefit. At or before retirement, a member may elect to convert his or her life benefit into an actuarial equivalent ten-year certain and life benefit, which will pay a reduced retirement amount during the pensioner's life, with a guarantee of 120 payments. Should a member die prior to receiving 120 payments, the payments shall continue to his or her designated beneficiary until a combined total of 120 payments have been made. Should both the member and designated beneficiary die before the member's accumulated contributions have been paid out, then §§ 31.40(F) or 31.41(E) shall apply.
(D) Beneficiary election. A member's beneficiary must have been designated by the member by written designation received by the Retirement Board prior to the member's death. A member may change his or her beneficiary by similar written designation received by the Retirement Board prior to receipt of written notification of the member's death.
(E) Required minimum distributions.
(1) Notwithstanding any provisions in this plan to the contrary, a member's benefits shall not commence later than the member's required beginning date which is April 1 of the calendar year following the later of:
(a) The calendar year in which the member attains age 70-1/2; or
(b) The calendar year in which the member terminates employment. In any case where a lump sum death benefit is payable to a deceased member's beneficiary, such benefit shall be paid no later than 60 days following the member's date of death.
(c) Requirements of Treasury Regulations Incorporated. All distributions required under this division will be determined and made in accordance with the Treasury regulations under Section 401(a)(9) of the Internal Revenue Code.
(2) The member's entire interest in the plan must be distributed over the life of the member or the lives of the member and a designated beneficiary, over a period not extending beyond the life expectancy of the member or the life expectancy of the member and designated beneficiary.
(3) When a member dies after distribution of benefits has begun, the remaining portion of the member's interest shall be distributed at least as rapidly as under the method of distribution prior to the member's death.
(4) When a member dies before distribution of benefits has begun, the entire interest of the member shall be distributed within five years of the member's death. The five-year payment rule does not apply to any portion of the member's interest which is payable to a surviving spouse payable over the life or life expectancy of the spouse, and which begins no later than the date the member would have reached 70-1/2.
(5) The benefits payable must meet the minimum distribution incidental benefit requirements of Section 401(a)(9)(G) of the Internal Revenue Code.
(6) If there is no designated beneficiary as of September 30 of the year following the year of the member's death, the member's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death.
(7) If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this division other than division (E)(1) will apply as if the surviving spouse were the member.
(8) Form of distribution. Unless the member's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with divisions (E)(9), (E)(10) and (E)(ll). If the member's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations. Any part of the member's interest which is in the form of an individual account described in Section 414(k) of the Internal Revenue Code will be distributed in a manner satisfying the requirements of Section 401(a)(9) of the Internal Revenue Code and the Treasury regulations that apply to individual accounts.
(9) Determination of amount to be distributed each year.
(a) General annuity requirements. If the member's interest is paid in the form of annuity distributions under the plan, payments under the annuity will satisfy the following requirements:
1. The annuity distributions will be paid in periodic payments made at intervals not longer than one year;
2. The distribution period will be over a life (or lives) or over a period certain not longer than the period described in division (E)(10) or (E)(11).
3. Once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted;
4. Payments will either be non-increasing or increase only as follows:
a. By an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics;
b. To the extent of the reduction in the amount of the member's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in division (E)(10) dies or is no longer the member's beneficiary pursuant to a qualified Domestic Relations Order within the meaning of Section 414(p) of the Internal Revenue Code;
c. To provide cash refunds of employee contributions upon the member's death; or
d. To pay increased benefits that result from a plan amendment.
(b) Amount required to be distributed by required beginning date. The amount that must be distributed on or before the member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under divisions (E)(1) or (E)(4) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bimonthly, monthly, semi-annually, or annually. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member's required beginning date.
(c) Additional accruals after first distribution calendar year. Any additional benefits accruing to the member in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.
(10) Requirements for annuity distributions that commence during member lifetime.
(a) Joint life annuities where the beneficiary is not the member's spouse. If the member's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the member and a non-spouse beneficiary, annuity payments to be made on or after the member's required beginning date to the designated beneficiary after the member's death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the member using the table set forth in Q&A-2 of Section 1.401(a)(9)-6 of the Treasury regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the member and a non-spouse beneficiary and a period certain annuity, the requirement in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain.
(b) Period certain annuities. Unless the member's spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the member's lifetime may not exceed the applicable distribution period for the member under the uniform lifetime table set forth in Section 1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity starting date if the annuity starting date precedes the member is the distribution period for age 70 under the uniform lifetime table set forth in Section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age of the member as of the member's birthday in the year that contains the annuity starting date if the member's spouse is the member's sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the member's applicable distribution period, as determined under this division (E)(10)(b), or the joint life and last survivor expectancy of the member and the member's spouse as determined under the joint and last survivor table set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the member's and spouse's attained ages as of the member's and spouse's birthdays in the calendar year that contains the annuity starting date.
(11) Requirements for minimum distributions where member dies before date distributions begin.
(a) Member survived by designated beneficiary. If the member dies before the date distribution of his or her interest begins and there is a designated beneficiary, the member's entire interest will be distributed, beginning no later than the time described in divisions (E)(1) or (E)(4) and except as otherwise provided in division (E)(4) over the life of the designated beneficiary or over a period certain not exceeding:
1. Unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary age as of the beneficiary birthday in the calendar year immediately following the calendar year of the member's death; or
2. If the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year that contains the annuity starting date.
(b) No designated beneficiary. If the member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the member's death, distribution of the member's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the member's death.
(c) Death of surviving spouse before distributions to surviving spouse begin. If the member dies before the date distribution of his or her interest begins, the member's surviving spouse is the member's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, division (E)(ll) will apply as if the surviving spouse were the member, except that the time by which distributions must begin will be determined without regard to division (E)(1).
(12) Definitions.
(a) Designated Beneficiary. The individual who is designated as the beneficiary under § 31.39(D) and is the designated beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401 (a)(9)-1, Q&A-4, of the Treasury regulations.
(b) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the member's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the member's required beginning date. For distributions beginning after the member's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to division (E)(4).
(c) Life expectancy. Life expectancy as computed by use of the single life table in Section 1.401(a)(9)-9 of the Treasury regulations.
(F) Return to employment after commencement of benefits.
(1) A retired member who returns to employment with the town after benefits have commenced shall have his or her benefit suspended for each month he or she is in the employ of the town, unless the member meets the following conditions:
(a) The member's application for active employment is approved by the Retirement Board; or
(b) In the case of a service employee, the member is regularly scheduled to work less than 20 hours per week; or
(c) The member is a guardian employee who is rehired as a service employee or the member is a service employee who is rehired as a guardian employee.
(2) A retired member whose benefits are suspended in accordance with this division shall have his or her pension amount recalculated to recognize the additional credited service earned during his or her period of re-employment.
(Ord. 435, passed 3-12-01; Am. Ord. 458, passed 6-3-02; Am. Ord. 538, passed 7-5-06; Am. Ord. 666, passed 12-7-15)
(A) Lump sum death benefit.
(1) A lump sum death benefit of $5,000 shall be payable to the surviving spouse of a service employee member, or if there is no surviving spouse, to the surviving dependent child(ren) in equal shares, upon the death of such service employee member; provided, however that the service employee member's death:
(a) Occurs due to bodily injury arising out of the course of the service employee member's employment with the town within the meaning of the worker's compensation laws of the State of Connecticut; and
(b) Was sustained by an injury solely through external, violent or accidental means; and
(c) Occurs within one year of the date injury was sustained and such death is the direct result of such injury.
(2) The Retirement Board shall maintain sole discretion in the determination of eligibility for a lump sum death benefit. The lump sum death benefit described herein shall be in addition to all other benefits provided under this section.
(B) Pre-retirement surviving spouse pension.
(1) Effective on and after July 1, 1991, the surviving spouse of an active service employee member who has earned at least five years of credited service, and who dies prior to retirement shall receive a monthly surviving spouse pension equal to the greater of:
(a) 50% of the service employee member's accrued monthly benefit calculated as if the service employee member retired with a regular pension and died the next day; or
(b) 50% of the service employee member's compensation at the time of death and divided by 12.
(2) For periods prior to July 1, 1991, the monthly surviving spouse pension payable to the surviving spouse of a service employee member was equal to 25% of the average annual compensation of the service employee member, divided by 12 and determined in accordance with the provisions of the plan in effect at the time the service employee member died.
(3) The surviving spouse of a terminated, vested service employee member who dies prior to retirement shall not be entitled to receive a monthly surviving spouse pension but shall receive a return of the service employee member's accumulated contributions in accordance with division (F) of this section.
(4) The former spouse of an active service employee member shall not be entitled to a pre-retirement surviving spouse pension unless a Domestic Relations Order determined to be approved by the Retirement Board requires the payment of such a benefit.
(5) The pre-retirement surviving spouse pension shall be payable until the death or remarriage of the surviving spouse. In the event the surviving spouse does not notify the Retirement Board within 30 days of her remarriage, the Retirement Board shall have the right to seek a return of the benefits paid to her in error after the date of her remarriage.
(C) Post-retirement surviving spouse pension.
(1) The surviving spouse of any service employee member who retires on or after July 1, 1991 with a life annuity shall receive, until his/her death or remarriage, a monthly benefit equal to 50% of the monthly benefit that the retired service employee member was receiving at the time of death.
(2) In the event the service employee member elected a husband and wife benefit or a ten-year certain and life benefit, death benefits shall not be payable under this division (C) but shall be payable in accordance with the terms of the form of benefit elected by the member.
(D) Surviving children's pension.
(1) Upon the death of an active service employee member, a monthly benefit shall be payable to the surviving dependent child(ren) of the service employee member in an amount equal to one-twelfth (1/12) of 25% of the service employee member's average annual compensation in addition to all other benefits hereunder. Such monthly benefit shall be divided equally in the case of more than one dependent child and shall be payable until the dependent child attains age 18. In the event the benefit is divided between multiple dependent children, the monthly benefit to such dependent children shall be increased proportionately to each remaining dependent child when the payment to a child who has reached the age of 18 ceases.
(2) The Retirement Board shall direct payment of this benefit on behalf of the dependent child(ren) at its discretion, to the surviving spouse of the service employee member or to the guardian of the person of such surviving dependent child(ren) or to the person with whom such child or children reside. In no event shall the benefit be paid to a state or governmental agency with custody of the dependent child(ren) unless the benefits shall be held in trust for the child until the child reaches the age of 18.
(3) The benefit provided under this division shall terminate upon the attainment of age 18 by the last dependent child.
(E) Social security offset. The death benefits provided for in divisions (B) through (D) of this section shall be offset by a percentage of social security, if applicable, determined pursuant to § 31.37(A)(4).
(F) Modified cash refund. If a service employee member dies and the death benefits and/or pension payments payable do not exceed the service employee member's accumulated contributions, then the amount by which the accumulated contributions exceed the death benefits and/or pension payments payable shall be paid to the member's surviving spouse, surviving dependent children equally, duly designated beneficiary, or other executor or administrator of the service employee member's estate as designated by the Retirement Board.
(G) Non-duplication of benefits. If a service employee member has elected a husband and wife benefit or a ten-year certain and life benefit and has retired, the election of such benefit shall be in lieu of any post-retirement survivor amounts as described in division (C) of this section.
(H) Burial allowance. Upon the death of an active or retired service employee member, whether before or after retirement, there shall be paid a burial allowance of $5,000, to be paid to the service employee member's executors or administrators, if any, or, if none, to such person or persons as the Retirement Board may find to have paid or assumed financial responsibility for such expenses.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15)
(A) Lump sum death benefit.
(1) A lump sum death benefit of $5,000 shall be payable to the surviving spouse of a guardian employee member, or if there is no surviving spouse, to the surviving dependent child(ren) in equal shares, upon the death of such guardian employee member; provided, however that the guardian employee member's death:
(a) Occurs due to bodily injury arising out of the course of the guardian employee member's employment with the town within the meaning of the worker's compensation laws of the State of Connecticut; and
(b) Was sustained by an injury solely through external, violent or accidental means; and
(c) Occurs within one year of the date injury was sustained and such death is the direct result of such injury.
(2) The Retirement Board shall maintain sole discretion in the determination of eligibility for a lump sum death benefit. The lump sum death benefit described herein shall be in addition to all other benefits provided under this section.
(B) Pre-retirement surviving spouse pension.
(1) Effective on and after July 1, 1991, the surviving spouse of an active guardian employee member who dies prior to retirement shall receive a monthly surviving spouse pension equal to the greater of the following:
(a) Fifty percent of the guardian employee member's accrued monthly benefit calculated as if the guardian employee member retired with a regular pension and died the next day; or
(b) Fifty percent of the guardian employee member's compensation at the time of death and divided by 12.
(2) For periods prior to July 1, 1991, the monthly surviving spouse pension payable to the surviving spouse of a guardian employee member was equal to 25% of the average annual compensation of the guardian employee member, divided by 12 and determined in accordance with the provisions of the plan in effect at the time the guardian employee member died.
(3) The surviving spouse of a terminated vested guardian employee member who dies prior to retirement shall not be entitled to receive a monthly surviving spouse pension but shall receive a return of the guardian employee member's accumulated contributions in accordance with division (E) of this section.
(4) The former spouse of an active guardian employee member shall not be entitled to a pre-retirement surviving spouse pension unless a Domestic Relations Order determined to be approved by the Retirement Board requires the payment of such a benefit.
(5) The pre-retirement surviving spouse pension shall be payable until the death or remarriage of the surviving spouse. In the event the surviving spouse does not notify the Retirement Board within 30 days of her remarriage, the Retirement Board shall have the right to seek a return of the benefits paid to her in error after the date of her remarriage.
(6) Effective on and after July 1, 2022, the surviving spouse of a former Active Member who passes away after the last day of employment, but prior to the Member’s finalizing the employee’s Application For Benefits inclusive of designating the form of benefit to be provided under § 31.39 and prior to the Member receiving the first monthly pension benefit, will be entitled to a monthly benefit based on the 100% husband and wife benefit (including the actuarial adjustment for such payment) payable over the same time period as noted in item (5) above, provided that the following criteria are met:
(a) The Member was required to retire by the terms of the ordinance based on age and retired on or not more than 30 days prior to the mandatory retirement date, and
(b) The noted Annuity Starting Date is the first of the month following the last day of employment.
(C) Post-retirement surviving spouse pension.
(1) The surviving spouse of any active guardian employee member who retires on or after July 1, 1991 with a life annuity shall receive, until her death or remarriage, a monthly benefit equal to 50% of the monthly benefit that the retired guardian employee member was receiving at the time of death. The spouse of a terminated vested guardian employee member shall not be eligible for a benefit under this division (C).
(2) In the event the guardian employee member elected a husband and wife benefit or a ten-year certain and life benefit, death benefits shall not be payable under this division but shall be payable in accordance with the terms of the form of benefit elected by the guardian employee member.
(D) Surviving children's pension.
(1) Upon the death of an active guardian employee member, a monthly benefit shall be payable to the surviving dependent child(ren) of the guardian employee member in an amount equal to one-twelfth (1/12) of 25% of the guardian employee member's average annual compensation in addition to all other benefits hereunder. Such monthly benefit shall be divided equally in the case of more than one dependent child and shall be payable until the dependent child attains age 18. In the event the benefit is divided between multiple dependent children, the monthly benefit to such dependent children shall be increased proportionately to each remaining dependent child when the payment to a child who has reached the age of 18 ceases.
(2) The Retirement Board shall direct payment of this benefit on behalf of the dependent child(ren) at its discretion, to the surviving spouse of the guardian employee member or to the guardian of the person of such surviving dependent child(ren) or to the person with whom such child or children reside. In no event shall the benefit be paid to a state or governmental agency with custody of the dependent child(ren) unless the benefits shall be held in trust for the child until the child reaches the age of 18.
(3) The benefit provided under this division shall terminate upon the attainment of age 18 by the last dependent child.
(E) Modified cash refund. If a guardian employee member dies and the death benefits and/or pension payments payable do not exceed the guardian employee member's accumulated contributions, then the amount by which the accumulated contributions exceed the death benefits and/or pension payments payable shall be paid to the guardian employee member's surviving spouse, surviving dependent children equally, duly designated beneficiary, or other executor or administrator of the guardian employee member's estate as designated by the Retirement Board.
(F) Non-duplication of benefits. If a guardian employee member has elected a husband and wife benefit or a ten-year certain and life benefit and has retired, the election of such benefit shall be in lieu of any post-retirement survivor amounts as described in division (C) of this section.
(G) Burial allowance. Upon the death of an active or retired guardian employee member, whether before or after retirement, there shall be paid a burial allowance of $5,000, to be paid to the guardian employee member's executors or administrators, if any, or, if none, to such person or persons as the Retirement Board may find to have paid or assumed financial responsibility for such expenses.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15; Am. Ord. 731, passed 9-19-22)
(A) Cost of living benefit. On each May 1, subsequent to the date retirement benefits become payable to any pensioner or beneficiary, an adjustment shall be made in the yearly amount of the benefit payable to the retired member, as described in division (B) of this section.
(B) Determination of cost of living adjustment.
(1) For the purposes of determining the cost of living benefit, the following terms are defined:
(a) "ANNUITANT." Each pensioner, contingent annuitant or beneficiary who is receiving retirement benefits under this plan.
(b) "BASE INDEX."
1. Shall mean the Consumer Price Index for the month of January in the calendar year in which the pensioner or beneficiary's benefit first became payable.
2. If the Bureau of Labor Statistics subsequently adjusts the basis upon which the Consumer Price Index is determined, then the base index will be adjusted, as of the next January, by multiplying the base index by the ratio of that Consumer Price Index for said January on the new basis bears to the Consumer Price Index for the said January on the prior January.
(c) "BASE PENSION." The monthly pension benefit which first became payable to the pensioner or Beneficiary, whichever is applicable.
(d) "CONSUMER PRICE INDEX." The Consumer Price Index (U.S. All Items Index) published by the U.S. Department of Labor, Bureau of Labor Statistics.
(2) On each May 1, the cost of living benefit shall be determined. The adjustment with respect to each pensioner or beneficiary shall be equal to the excess of (a) over (b) below, if any, where:
(a) Is equal to the amount obtained by dividing the Consumer Price Index, as of the immediately preceding January, by the pensioner's base index. This quotient shall be multiplied by the pensioner's base pension. In no event may the amount determined in this division be greater than 3% of the last amount determined in accordance with this division (B)(2)(a); and
(b) Is equal to the annuitant's base pension.
(3) Such cost of living benefit will be applicable to such annuitant only if division (B)(2)(a) above exceeds division (B)(2)(b). Any excesses over 3% described in division (B)(2)(a) will be carried over to succeeding years, to be utilized in the event that the maximum rate is not achieved in succeeding years.
(4) On the May 1 on which a cost of living benefit is first applicable to an annuitant and on the first day of each month thereafter on which such individual continues to receive retirement benefits under this plan, he/she will be eligible for a cost of living benefit in an amount equal to one-twelfth (1/12) of the yearly cost of living benefit most recently determined for him, if applicable, in accordance with this division (B).
(5) Notwithstanding divisions (B)(2) and (B)(3) above, the cost of living benefit applied as of each May 1 in certain years prior to 2014, up to and including May 1, 2013 inclusive was 3% (the “3% Presumption”) regardless of whether the formula in division (B)(2) would have yielded a lower percentage cost of living benefit. This division (B)(5), effective as of the date of enactment and retroactively as necessary, confirms and ratifies all pension payments made to Members or their Beneficiaries prior to September 1, 2020, to the extent such payments were higher than would otherwise have been the case because of the application of the 3% Presumption. This division (B)(5) shall have no effect on pension payments made on or after September 1, 2020, which shall be calculated and paid under the regular provisions of the Plan without regard to the 3% Presumption.
(C) Adjustment for former retired members. A member who retired prior to July 1, 1986 shall be entitled to an increase in his/her retirement benefit as effective July 1, 1986, of 1% of his/her retirement benefit for each full year from his/her annuity starting date to the effective date of this provision.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15; Am. Ord. 732, passed 11-9-22)
(A) Member contributions.
(1) As a condition of employment, a member shall make member contributions to the plan in accordance with the provisions of the plan or such other previous or subsequent agreement that sets forth the requirement of member contributions to the plan.
(2) A member shall be 100% vested in his/her member contributions at all times.
(B) Contributions by the town. It is the intention of the town to continue the plan and to make regular contributions thereto each year.
(1) The contributions of the town shall consist of the following:
(a) A normal contribution each year equal to the percentage of the compensation of all members computed to be required to cover the cost of benefits currently accruing under the plan not provided by member contributions and the administrative expenses of the plan.
(b) Until the cost (not covered by normal contributions) of the credits of members for service prior to the date of adoption of the plan with regular interest on any unpaid amounts of such cost has been liquidated, the contribution of the town each year shall include a prior service contribution towards the payment thereof, in such amount, as determined by the actuary, as shall be sufficient to liquidate such prior service cost (including regular interest on the unpaid portion thereof) in full within 40 years from the date of adoption of plan changes.
(c) The full amount of all accidental death benefits payable under the plan, to be paid to the trustee within 90 days after the payment of such benefit from the fund.
(2) The percentage normal contribution rate shall be computed at the time of each actuarial valuation as the percent of the compensation of all members required each year to cover the cost of all benefits to be provided by contributions of the town not covered by the sum of the funds in hand held therefor plus any prior service contributions remaining to be paid. Following each actuarial valuation, the actuary shall certify to the Retirement Board his/her recommendation as to the percentage normal contribution rate.
(3) As of the date of the effective date of the plan, the actuary shall determine the present value of all benefits to be provided by contributions of the town on account of members as of said date, and shall subtract therefrom the sum of the funds in hand as of the date of adoption held therefor and the present value of future normal contributions on account of such members at the rate required to provide the membership service benefits under the plan to be provided by contributions of the town for the average member. The difference shall be known as the "initial prior service cost."
(C) Forfeitures. No part of any forfeitures resulting from the application of any provision of this plan shall be applied to increase the benefits any member would otherwise receive under this plan. Forfeitures shall be used to reduce contributions of the town.
(D) Management of assets.
(1) Until and unless otherwise determined by the Retirement Board, all the funds of the plan shall be held by a trustee, which shall be the Retirement Board itself, for use in providing the benefits of the plan and paying the expenses of the plan.
(2) The Retirement Board, with the prior approval of the Mayor of the town, may at any time and to any extent use the funds of the plan in whole or in part to fund the retirement pensions and other benefits provided by the plan by means of one or more annuity or life insurance contracts issued by any insurer selected by the Retirement Board.
(3) No part of the corpus or income of the trust shall be used for or diverted to purposes other than for the exclusive benefit of members or their beneficiaries and contingent annuitants under the plan, prior to the satisfaction of all liabilities with respect to them; and no person shall have any interest in or right to any part of the earnings of the trust, or any rights in, or to, or under the trust or any part of the assets thereof, except as and to the extent expressly provided for in the plan and in the trust instrument. The town shall have no liability for the payment of benefits under the plan nor for the administration of the funds paid over to the trustee.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15)
(A) Retirement Board. The general administration of the plan and the responsibility for carrying out the provisions of the plan shall be placed in a Board of 11 persons consisting of the following:
(1) Two guardian employee members of the plan who are members of a guardian bargaining unit who shall be elected by guardian employee members of the plan of the same category, as of July 1 each year for a term of two years, but in 1982 one shall be appointed for a one-year term, so that one membership of this category shall thereafter become vacant each year;
(2) Two service employee members of the plan who are members of a service bargaining unit, who shall be elected by service employee members of the plan of the same category as of July 1 of each year for a term of two years, whose terms shall expire in rotation as of June 30 so that one new member of this category is elected each year;
(3) One member of the plan, who is not a member of a bargaining unit, who shall be elected by the members of the plan of the same category, as of July 1 for a term of two years;
(4) Four persons who are not members of the plan, whose terms and manner of appointment shall be such as provided for by legislative action of the town;
(5) The Mayor; and
(6) The Finance Director.
(B) Resignation. Any member of the Retirement Board may resign by delivering his/her written resignation to the Mayor of the town, who shall have the power to fill for the unexpired term any vacancy occurring by resignation or death.
(C) Powers and duties.
(1) The members of the Retirement Board shall have the power to:
(a) Elect a Secretary who may be but need not be one of the members of the Retirement Board;
(b) Appoint from its members such Boards with such powers as it shall determine;
(c) Authorize one or more of its members or any agent to execute or deliver any instrument or make a payment on its behalf; and
(d) Retain counsel, employ agents and provide for such clerical, accounting and actuarial services as it may require in carrying out the provisions of the plan.
(2) The Retirement Board shall hold meetings upon such notice, at such place or places, and at such time or times as it may determine.
(3) Any act which the plan authorizes or requires the Retirement Board to do may be done by a majority of its members. The action of such majority expressed from time to time by a vote at a meeting or in writing without a meeting, provided that reasonable notice thereof is given to the entire Retirement Board, shall constitute the action of the Retirement Board and shall have the same effect for all purposes as if assented to by all members of the Retirement Board at the time in office.
(4) No member of the Retirement Board who is an employee of the town shall receive any compensation for his/her services as such, and no bond or other security shall be required of him/her in such capacity in any jurisdiction.
(5) Subject to the limitations of the plan, the Retirement Board from time to time may establish rules for the administration of the plan and the transaction of its business. The determination of the Retirement Board shall be conclusive as to any disputed question within its jurisdiction.
(6) The Retirement Board shall adopt from time-to-time tables and the rate of regular interest, compounded annually, which shall be used in all actuarial calculations required in connection with the plan. As an aid to the Retirement Board in adopting tables and in fixing the rates of contributions payable by the town to the plan, the actuary designated by the Retirement Board shall make annual actuarial valuations of the contingent assets and liabilities of the plan and shall recommend to the Retirement Board tables and rates of contribution for use by the Retirement Board. The Retirement Board shall maintain accounts showing the fiscal transactions of the plan, and shall keep in convenient form such data as may be necessary for actuarial valuations of the plan. The Retirement Board shall submit a report each year to the Mayor of the town giving a brief account of the operation of the plan during the past year, a copy of which shall be filed in the office of the Mayor, where it shall be open to inspection by any member of the plan.
(7) The Retirement Board shall prepare and submit to the Director of Finance of the town on or before July 15 of each year a budget of the estimated receipts and expenses of the plan for the following fiscal year of the town.
(8) The members of the Retirement Board shall use ordinary care and diligence in the performance of their duties, but no member thereof shall be personally liable by virtue of any contract, agreement, bond, or other instrument made or executed by him/her or on his/her behalf as a member of the Retirement Board, nor for any loss unless resulting from his/her own bad faith or willful misconduct.
(D) Trust agreement for the plan. The town employees' retirement plan shall utilize the separate trust agreement ("Trust Agreement") between the town and the Retirement Board of the employees retirement plan of the town adopted by Ord. 399, setting forth the duties and responsibility of said Retirement Board in connection with the management of assets of the employees retirement plan.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15)
Loading...