Loading...
An eligible employee shall automatically become a participant in the Plan on the later of (i) the effective date of the Plan or (ii) the date of commencement of employment status which causes the employee to become eligible for participation in the Plan. An agreement for participation shall be executed for each participant as a condition of employment. An eligible employee shall cease to be a participant upon termination from City service or on the commencement of participation in one of the City’s other retirement or pension plans. An eligible employee shall cease to be a participant upon the distribution of the participant’s interest in the investment account.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
(a) Each eligible employee who becomes a participant shall defer 4.5% of their compensation for each plan year, and the City shall credit such participant contribution to the participant’s investment account. The City shall further credit to the investment account of each participant an amount equal to 3.0% of such participant’s compensation for the plan year. The 4.5% of compensation deferred by the participant and the 3% of compensation credited by the City shall total 7.5% of the participant’s compensation for the plan year.
(b) For any calendar year, total participant contributions plus City contributions credited to the participant’s investment account shall not exceed the lesser of (1) $7,500, as adjusted for the cost-of-living in accordance with Internal Revenue Code section 457(e)(15) for taxable years beginning after December 31, 1996, or (2) 33-1/3 percent of the participant’s compensation.
(c) The Controller shall cause such deferrals and City contributions to be made for each payroll period during which the employee is a participant in the Plan.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Amended by: Subsec. (b) Ord. No. 172,105, Eff. 7-14-98.
The City shall establish a separate City fund (the “Pension Savings Investment Fund”) as a method of setting aside a portion of its assets to meet the City’s obligations under the Pensions Savings Plan. All participant and City contributions shall be invested in this fund and shall be held by the City in trust for the exclusive benefit of participants and their beneficiaries in accordance with the terms and conditions of the Plan, and for defraying reasonable expenses of administration of the Plan. Neither the existence of the Plan, nor of the trust nor of the Investment Fund shall entitle any participant, beneficiary or other person to a claim or lien against the assets of the Investment Fund, the Plan or the trust. The participants and their beneficiaries shall have only the right to receive the benefits payable under the Plan as provided in this chapter.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Amended by: In Entirety, Ord. No. 172,105, Eff. 7-14-98.
The City shall cause to be established for each participant a book account to provide a method of measuring the City’s obligation to the participant under the Pension Savings Plan. All participant and City contributions as well as earnings thereon, any applicable fees and any losses shall be credited or debited, as appropriate, to such investment account. The assets of the account shall be invested in such investments as the law may allow.
The City shall not be liable to participants in the Pension Savings Plan for any losses on any investment credited to any account. The interest of each participant in contributions and any earnings thereon, credited to the investment account will be immediately 100% vested and nonforfeitable at all times.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Amended by: First Unnumbered Para., Ord. No. 172,105, Eff. 7-14-98.
(a) The City shall distribute benefits under the Pension Savings Plan to a participant or the participant’s beneficiary only upon termination of the participant’s employment with the City or the participant’s retirement, disability or death.
(b) If a participant retires or terminates from City service, the full amount credited to the participant’s account plus or minus subsequent investment gains or losses, less any income taxes required to be withheld, shall be distributed to the Participant in a single cash payment sixty (60) days from the time of the Participant’s retirement or separation from City service. Provided however, a Participant may instead irrevocably elect, on a form provided by the City or its duly authorized agent: (i) to transfer such amount to another Eligible State Deferred Compensation Plan, (ii) defer distribution of such amount for up to 24 months pending rehire, or (iii) if such amount exceeds $3500, leave the accumulated funds in the Plan. A request to withdraw funds left in the Plan may be made at any time after retirement or separation from City service.
(c) The Participant may elect the payment option under subsection (b) only prior to the commencement of any distribution of any distribution under the Plan.
(d) No financial hardship withdrawals shall be allowed under the Plan while a Participant remains an active City employee.
(e) Distributions shall commence not later than the later of: (1) sixty (60) days after the close of the plan year in which the participant attains normal retirement age, or (2) sixty (60) days after the close of the plan year in which the participant separates from City service.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
(a) In the event of total disability of a participant while an employee of the City, the City shall distribute the entire balance of the participant’s account in accordance with Sec. 4.1606. For purposes of this section, a participant shall be considered totally disabled if the participant is unable to engage in any substantial employment by reason of any medically determinable physical or mental impairment. Any determination of a participant’s total disability shall be at the discretion of the City.
(b) In the event of the death of the participant while the participant is an employee of the City, the City shall cause to be paid to the participant’s beneficiary or beneficiaries the full amount of compensation credited to the participant’s Investment Account less fees plus or minus subsequent gains or losses, but less any income taxes required to be withheld, in one or more of the following methods to be selected at the discretion of the City: (i) consecutive monthly payments for a number of months not less than six (6) and not more than one hundred and eighty (180), (ii) consecutive monthly payments for the life of the participant’s beneficiary or beneficiaries except that this option shall be available for spouses only, or (iii) a single payment. Total benefits distributed shall not exceed the sum of the amounts deferred by the participant plus or minus gains or losses, but less any income taxes required to be withheld.
(c) In the event of the death of the participant subsequent to termination of employment but prior to receipt of all amounts due under the Plan, the City shall cause to be paid to the participant’s beneficiary or beneficiaries the balance, if any, in the participant’s Investment Account which would have been paid to the participant in one or more of the methods provided in Subsection (b) of this section. The method of disbursement shall be at the discretion of the City.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
In the event the participant’s interest in the Plan is of a community property nature, in whole or part, and such community property interest is awarded, in whole or part, to the participant’s spouse pursuant to proceedings for legal separation, dissolution, nullity, or other proceedings to terminate the marriage, then that portion of the participant’s interest in the Plan awarded to the participant’s spouse shall be paid to the participant’s spouse, but less nay income taxes required to be withheld, provided that the amount so paid shall not exceed the full amount of compensation credited to the participant’s account plus or minus subsequent gains or losses, less any income taxes required to be withheld, and further provided that the participant’s account shall be reduced accordingly. Distribution of such community property interest may not be made until distribution commences for the participant.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Notwithstanding any other provisions of this section, the City may change the time or methods of distribution of benefits available under the Plan provided such changes comply with Internal Revenue Service rules and regulations.
SECTION HISTORY
Added by Ord. No. 169,047, Eff. 10-23-93.
Loading...