(a) It is intended that DROP shall not jeopardize in any way the tax qualified status of the Fire and Police Pension Plan under the rules and regulations of the Internal Revenue Service. The Board shall have the authority pursuant to Section 4.2109 to adopt rules and regulations to the extent necessary or appropriate for DROP to maintain compliance with applicable Federal laws and regulations. These rules shall be adopted upon the advice and with the concurrence of the City Attorney.
(b) Notwithstanding any other provision in this chapter, benefits provided pursuant to this chapter shall be subject to the requirements of the Internal Revenue Code (Code) and regulations issued thereunder as necessary for the Retirement System to remain a tax qualified retirement plan, including, but not limited to, the following:
(1) The limitations of Section 415 of the Code relating to the amount of benefits that can be paid.
(2) The limitations of Section 401(a)(17) of the Code relating to the amount of compensation that can be taken into account for benefit accrual.
(3) The limitations of Section 401(a)(9) relating to the time that benefit payments must begin.
(4) The limitations of Section 401(a)(31) relating to the rollover of benefits.
(5) The limitations of Section 401(a)(25) relating to “definitely determinable” benefits.
SECTION HISTORY
Added by Ord. No. 174,540, Eff. 5-8-02.