(1) General Limitation. Except as otherwise provided in this Section, the annual retirement benefit payable to any member shall not exceed one hundred sixty thousand dollars ($160,000) or such other limit as may be the maximum permissible amount for the Retirement System year pursuant to Section 415(b) of the Tax Code.
(2) Adjustment of Limitations.
(a) To the extent the limitations set forth herein may be from time to time adjusted by statutes, regulations or other publications issued by the Internal Revenue Service or successor agency or department, such adjusted amounts shall be substituted for the amounts set forth in this Section, provided that no such adjustment shall reduce a member's accrued benefit unless such adjustment is required to preserve the qualified status of the Retirement System. To the extent that the limitations under this Section become unnecessary by amendment of law, the limitations shall be deemed inoperative under this Title.
(b) If a benefit is to be distributed in a form other than a single or straight life annuity or joint and survivor annuity (including any death benefit payable as a survivor's annuity), the actuarial equivalent (using an interest rate, however, not less than the greater of five percent (5%) or the valuation rate adopted by the Board upon recommendation by the Board's actuary) of a single life annuity of such benefit must satisfy the limitations set forth in this Section. With respect to Retirement System years beginning on and after January 1, 1995, the actuarial equivalent for purposes of this Section shall be greater of: (1) the amount determined using the valuation rate adopted by the Board; or (2) the amount determined using the five percent (5%) interest rate. Further adjustments may be made by the Board, as permitted by Section 415 of the Tax Code and the regulations promulgated thereunder, under the appropriate circumstances including, if authorized by ordinance of Council, receipt by the Retirement System of rollover contributions or assets or liabilities transferred from another qualified plan. If the annuity starting date of the member's form of benefit is in a Retirement System year beginning after 2005, the actuarially equivalent straight life annuity pursuant to this Section shall be equal to the greatest of: (1) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the member's form of benefit, computed using the interest rate and mortality table referenced in the definition of Actuarial equivalent and subsection 22-305(2)(g); (2) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the member's form of benefit, computed using a five and one-half percent (5.5%) interest rate assumption and the applicable mortality table as defined in subsection 22-305(2)(g); and (3) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the member's form of benefit, computed using the applicable interest rate under Section 417(e)(3) of the Tax Code and the applicable mortality table as defined in subsection 22-305(2)(g), divided by 1.05. 84
(c) In the event that a member's benefit is to be distributed prior to age 62, the currently effective dollar amount in subsection (1) of this Section shall be actuarially reduced to the actuarial equivalent (using an interest rate, however not less than the greater of five percent (5%) or the valuation rate adopted by the Board upon recommendation of the Board's actuary) of an annual benefit equal to the dollar amount commencing at age 62, in the manner prescribed by Section 415 of the Tax Code.
(d) In the event that a member's benefit is to be distributed after age 65, the currently effective dollar amount in subsection (1) of this Section shall be actuarially increased to the actuarial equivalent (using an interest rate, however, not greater than the lesser of five percent (5%) or the valuation rate adopted by the Board upon recommendation by the Board's actuary) of an annual benefit equal to such dollar amount commencing at age 65 in the manner as prescribed by Section 415 of the Tax Code.
(e) With regard to any Police Employee, Fire Employee or Sheriff's Department Employee, subsection (c) above shall not serve to reduce the limitation set forth in subsection (1).
(f) Any purchase of service on or after August 5, 1997 must satisfy one of the following requirements: (1) the purchase of additional credited service cannot cause the annual retirement benefit payable to the member to exceed the limitation set forth in subsection 22-305(1); or (2) the total contribution made in any plan year for the purchase of service, when combined with other amounts contributed by or on behalf of the member, cannot exceed forty thousand dollars ($40,000) or any other limitation set forth in Section 415(c)(1)(A) of the Tax Code.
(g) For purposes of determining any adjustment to limitations as required under this subsection 22-305(2) for Retirement System years beginning on and after January 1, 1997, the mortality table shall be the "applicable mortality table". The applicable mortality table shall be the table prescribed by Section 415(b)(2)(E)(v) of the Tax Code and Rev. Rul. 95-6 and any subsequent statutory or regulatory provisions.
Notes
| 83 | Amended, Bill No. 030827 (approved December 31, 2003). |
| 84 | Amended, Bill No. 150235 (approved May 20, 2015), effective July 1, 2006. |
| 85 |