(A) In the event that the retirement benefits of a participant exceed the amount permitted by the Internal Revenue Code Section 415, an excess benefit plan is hereby created. The payment of benefits to such participant shall be as follows:
(1) The participant shall first receive the maximum amount payable by the Retirement Income Plan for General Employees of the City of Pembroke Pines (the Retirement Income Plan); and
(2) Thereafter, benefits shall be paid from the Excess Benefit Plan, funded by the employer and which shall be paid annually, concurrently with the employer's annual contribution to normal pension costs, which may cause the employer to realize a reduction in normal pension costs; and
(3) Which sums are deposited in separate accounts for each respective plan to receive the employer's excess retirement benefit contributions, which accounts shall be separate and apart from the accounts established to receive the employer's normal pension contributions for each retirement fund.
(B) The actuaries for the Retirement Income Plan shall calculate the amounts necessary to fund the defined benefit plans giving effect to the reductions caused by implementation of Section 415 of the Internal Revenue Code.
(C) The excess benefits shall be paid to each eligible participant of the Plan on a monthly basis in an amount equal to the difference between the allowable pension to be paid under the Internal Revenue Code and the amount of the defined benefit granted eligible participants pursuant to the provisions set forth in the Plan.
(D) Should additional retirements occur during the year where the eligible participant's retirement benefit exceeds the Section 415 limits, the actuaries shall calculate the additional excess benefit amount required for the remainder of the fiscal year and should such amount exceed the amount available from the funds provided for the fiscal year, the actuaries shall notify the employer of the additional funds required.
(E) Upon the employer's receipt of notice of additional funds required, the employer shall forward the additional funds required. The requirement for additional funds paid by the employer to fund the Excess Benefit Plan shall be reflected as a reduction in the employer's annual contribution of normal pension costs for the following year where applicable.
(F) No employee hired or rehired on or after October 1, 2013 shall become eligible for this Excess Benefit Plan. (Ord. 1806, passed 1-7-15)