(1) General. Any member who is eligible to purchase service for prior City Service, service as an F.P.T.F. employee, for time spent as a disabled member or in allowable other governmental service may pay for any such service through a direct transfer from the member's account under an eligible deferred compensation plan under Section 457(b) of the Tax Code, an annuity contract or custodial account under Section 403(b) of the Tax Code, a qualified pension or profit-sharing plan under Section 401(a) of the Tax Code (including a cash or deferred arrangement under Section 401(k) of the Tax Code) (excluding amounts attributable to Roth or after-tax contributions) or an individual retirement account ("IRA") under Section 408 of the Tax Code (excluding amounts attributable to Roth contributions). Such a deferred compensation plan, annuity contract, cash or deferred arrangement or IRA shall be known as "the transferor plan". To the extent applicable, such transfer payment shall be made in compliance with the provisions of Sections 457(e)(17) and 403(b)(13) of the Tax Code, respectively.
(2) Authorization. The member shall provide authorization for such transfer as may be required by the transferor plan.
(3) Refund of transfers; partial credit. If transfer payments are not sufficient to pay for the full cost of service to be purchased, and necessary payments are not completed within ninety (90) days of a member's separation from service, the member or the member's beneficiary may elect either (i) a refund of the total transfer payments made; or (ii) credit for that portion of service for which payment has been made (expressed in years and specified to the day), provided that in order to receive partial credit for prior City Service, pursuant to Section 22-803, the member must have made arrangements to pay for all prior City Service.
(4) Limitation on amount of transfer payments. A member shall not transfer amounts under this Section 22-808 which exceed the amount necessary to purchase prior City and other governmental Service available for purchase. Any portion of the transfer payment which exceeds that amount required to purchase such service shall be refunded to the member.
(5) Limitation on use of transfer payments. Transfer payments shall be used exclusively for the purpose of purchasing credited service as provided in Section 22-201 (membership in certain plans); Section 22-204 (regarding disabled members); Section 22-802 (purchase of governmental service); Section 22-803 (purchase of prior City Service); Section 22-809 (Pension Credit for Former F.P.T.F. Employees); and Section 22-810 (Pension Credit for Former PIDC Employees). 160
Notes
| 159 | |
| 160 | Amended, Bill No. 190132 (approved May 1, 2019). |