286.04  BENEFITS.
   (a)   Normal Retirement Benefit.
      (1)   The amount of monthly retirement benefit to be provided far each participant who retires on his or her normal retirement date (which benefit is herein called his or her normal retirement benefit) shall be equal to:
         A.   Fifty percent of the final monthly average salary at retirement; plus
         B.   One-fortieth of the above pension amount multiplied by each full year of service after 20 years of service but earned prior to age 65 (not to exceed three hundred dollars ($300.00) per month) ("service increment").
   (b)   Normal Form of Benefit. The normal retirement benefit payable to a retired participant pursuant to division (a) of this section shall be a monthly pension commencing on his or her retirement date and continuing after his or her death to the survivor as set forth in Section 286.07(c).
   (c)   Relationship to Social Security. No change in the Social Security Act after the date of a participant's separation from service shall affect the benefits as described under this Plan.
   (d)   Maximum Benefits.
      (1)   Subject to exceptions below, the maximum annual benefit payable to a participant under this Plan in any limitation year shall equal ninety thousand dollars ($90,000).
      (2)   For purposes of this Plan, "annual benefit" means the benefit which would be payable in the form of a straight life annuity with no ancillary benefit or a qualified joint and survivor annuity.
      (3)   Preservation of current accrued benefit under the Plan.
         A.   In general, this division (d)(3) shall apply to defined benefit plans that were in existence on May 6, 1986, and that met the applicable requirements of Code Section 415 as in effect for all limitation years.
         B.   If the current accrued benefit of an individual who is a participant as of the first day of the limitation year beginning on or after January 1, 1987, exceeds the benefit limitations under Code Section 415(6)9 then for purposes of Code Section 415(6) and (e), the defined benefit dollar limitation with respect to such individual shall be equal to such current accrued benefit.
         C.   "Current accrued benefit" shall mean a participant's accrued benefit under the Plan, determined as if the participant had separated from service as of the close of the last limitation year beginning before January 1, 1987, when expressed as an annual benefit within the meaning of Code Section 415(6)(2). In determining the amount of a participant's current accrued benefit, the following shall be disregarded:
            1.   Any change in the terms and conditions of the Plan after May 5, 1986; and
            2.   Any cost-of-living adjustment occurring after May 5, 1986.
      (4)   The dollar limitation under Code Section 415(b)(1)(A) stated in division (a)(1) of this section shall be adjusted annually as provided in Code Section 415(d) pursuant to the Regulations and IRS Pronouncements. The adjusted limitation is effective as of January 1 of each calendar year and is applicable to limitation years ending with or within that calendar year.
      (5)   Applicable limitations above for participants who have separated from service with a nonforfeitable right to an accrued benefit shall be adjusted annually as provided in Code Section 415(d) pursuant to the Regulations prescribed by the Secretary of the Treasury.
      (6)   For purposes of divisions (d) and (e) of this section, all defined benefit plans of the employer, whether or not terminated, are to be treated as one defined benefit plan and all defined contribution plans of the employer, whether or not terminated, are to be treated as one defined contribution plan of the employer.
      (7)   In the case of a group of related employers, all such employers shall be considered a single employer for purposes of applying the limitation of Section 415 of the Code.
      (8)   To the extent applicable, the above provisions and limitations shall be governed by Code Section 415(b)(2)(F) and Code Section 415(b)(2)(G).
   (e)   Adjustments to Annual Benefit and Limitations.
      (1)   If the annual benefit begins before the participant's and new Plan participant's Social Security retirement age, then the ninety thousand dollar ($90,000) limitation shall be reduced in such manner as the Secretary of the Treasury shall prescribe which is consistent with the reduction for old-age insurance benefits commencing before the Social Security retirement age.
      (2)   Notwithstanding division (a) of this section, for limitation years beginning prior to January 1, 1987, the ninety thousand dollar ($90,000) limit shall not be reduced if the annual benefit begins on or after age 62. If the annual benefit begins before age 62, the ninety thousand dollar ($90,000) limitation (but not the 100 percent of compensation limitation) shall be reduced so that it is the actuarial equivalent of the ninety thousand dollar ($90,000) limitation beginning at age 62. However, the ninety thousand dollar ($90,000) limitation shall not be reduced to less than:
         A   Seventy-five thousand dollars ($75,000) if the annual benefit commences on or after age 55; or
         B.   The amount which is the actuarial equivalent of seventy-five thousand dollars ($75,000) at age 55 if the annual benefit commences prior to age 55.
   For purposes of adjusting the ninety thousand dollar ($90,000) limitation applicable prior to age 62 or the seventy-five thousand dollar ($75,000) limitation prior to age 55, the adjustment shall be based on an interest rate assumption of five percent and no mortality decrement. The above adjustment shall not apply in the case of a survivor benefit or a disability benefit.
      (3)   If the annual benefit begins after the participant's and new Plan participant's Social Security retirement age (or for limitation years beginning prior to January 1, 1987, age 65), the ninety thousand dollar ($90,000) limitation shall be increased so that it is the actuarial equivalent of the ninety thousand dollar ($90,000) limitation at the participant's and new Plan participant's Social Security retirement age (or for limitation years beginning prior to January 1, 1987, age 65).  For purposes of adjusting the ninety thousand dollar ($90,000) limitation applicable after the participant's Social Security retirement age (or for limitation years beginning prior to January 1, 1987, age 65), the adjustment shall be based upon an interest rate assumption of five percent and no mortality decrement. In no event, however, shall the aforesaid dollar limitation be reduced to an amount less than that required by the Code and the above limitations shall not apply to survivor or disability pensions paid pursuant to the Plan.
      (4)   For purposes of adjusting any annual benefit under divisions (d)(2), (e)(1), (e)(2) and/or (e)(3) of this section, no adjustments shall be taken into account before the limitation year for which such adjustment first takes effect. For purposes of employing any limitation, a separate limitation may apply to police and firefighters.
      (5)   A.   If a participant who is not receiving a disability benefit under the Plan has less than ten years of participation in the Plan at the time he or she begins to receive benefits under the Plan, the ninety thousand dollar ($90,000) limitation shall be reduced by multiplying such limitation by a fraction:
            1.   The numerator of which is the number of years of participation (or part thereof) in the Plan; and
            2.   The denominator of which is ten, provided that said fraction shall in no event be less than one-tenth.
         B.   Notwithstanding the foregoing, for limitation years beginning prior to January 1, 1987, if a participant has fewer than ten years of service with the employer at the time he or she begins to receive benefits under the Plan, the maximum annual benefit payable to the retired participant shall be reduced by multiplying such maximum annual benefit by a fraction:
            1.   The numerator of which is the number of years of service, or part thereof, with the employer; and
            2.   The denominator of which is ten.
      (6)   Notwithstanding other limitations of this section with respect to a participant included under the prior provisions of this Plan, the maximum benefit computed under this section shall be a participant's accrued benefit payable under the Plan provisions in effect at the close of the last Plan year beginning before January 1, 1983, if such accrued benefit is greater than the maximum annual benefit provided for in Section 286.04 based upon his or her rate of compensation under the Plan in effect as of such date and based on the years of service to the date his or her employment is terminated. For purposes of calculating a participant's accrued benefit under this division, no changes in the terms and conditions of the plan after July 1, 1982, and no cost-of-living adjustments after July 1, 1982, shall be taken into account.
   (f)   Multiple Plan Reduction  The provisions contained in this division (f) shall not apply to Plan limitation years after 1999.
      (1)   A.   If a participant has at any time participated in one or more defined benefit plans and one or more defined contributions plans maintained by the employer, the sum of the defined benefit plan fraction and the defined contribution plan fraction for any limitation year may not exceed 1.0.  In the case of an individual who was a participant in one or more defined benefit plans of the employer as of the first day of the first limitation year beginning after December 31, 1986, the application of the limitations of this section shall not cause the maximum permissible amount for such individual under all such defined benefit plans to be less than the individual's current accrued benefit. The preceding sentence applies only if such defined benefit plans met the requirements of Code Section 415, for all limitation years beginning before January 1, 1987.
         B.   The defined benefit plan fraction for any limitation year is a fraction, the numerator of which is the participant's projected annual benefit under the Plan (determined as of the close of the limitation year pursuant to Regulations 1.415-7(b)(3)), and the denominator of which is the lesser of:
            1.   The product of 1.25 multiplied by the maximum dollar limitation in effect under Code Section 415(b)(1)(A) for such limitation year; or
            2.   The product of 1.4 multiplied by the amount which may be taken into account under Code Section 415(b)(1)(B) for such limitation year.
         C.   The defined contribution plan fraction for any limitation year is a fraction, the numerator of which is the sum of the annual additions to the participant's accounts for such limitation year and for all prior limitation years, and the denominator of which is the sum of the lesser of the following amounts determined for such year and each prior year of service with the employer:
            1.   The product of 1.25 multiplied by the dollar limitation in effect under Code Section 415(c)(1)(A) for such year (determined without regard to Code Section 415(c)(6)); or
            2.   The product of 1.4 multiplied by the amount which may be taken into account under Code Section 415(c)(1)(B) for such year.
         D.   For the purpose of this division, the term "participant's account" shall mean the account established and maintained for each participant with respect to his or her total interest in the defined contribution plan maintained by the employer resulting from annual additions.
         E.   The annual addition allocated to pay any participant's account under this Plan in a limitation year, plus all annual additions allocated to such participant under any other defined contribution plan of the employer for such limitation year, shall not exceed the lesser of (i) thirty thousand dollars ($30,000) (or such greater amount as may be determined by the Commissioner of Internal Revenue Service for Limitation Years ending on or after January 1, 1988, as a cost-of-living adjustment), or (ii) twenty-five percent of such participant's compensation.
         F.   "Annual additions" means the sum credited to a participant's account for any limitation year of:
            1.   Employer contributions;
            2.   Employee contributions;
            3.   Forfeitures;
            4.   Amounts allocated after March 31, 1984, to any individual medical account, as defined in Code Section 4150)(2) which is part of a pension of annuity plan maintained by the employer; and
            5.   Amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to post-retirement medical benefits allocated to a separate account of a key employee (as defined in Code Section 419A(d)(3)) under a welfare benefit plan (as defined in Code Section 419(e)) maintained by the employer.
         G.   Notwithstanding the foregoing, for Plan years beginning prior to January 1, 1987, only that portion of employee contributions equal to the lesser of employee contributions in excess of six percent of compensation or one-half of employee contributions shall be considered an annual addition.
         H.   The annual addition for any limitation year beginning before January 1, 1987, shall not be recomputed to treat all employee contributions as an annual addition.
         I.   If the Plan satisfied Code Section 415 as in effect for all limitation years beginning before January 1, 1987, an amount shall be subtracted from the numerator of the defined contribution plan fraction (not exceeding such numerator) as prescribed by the Secretary of the Treasury so that the sum of the defined benefit plan fraction and defined contribution plan fraction computed under Section 415(e)(1), as amended by the Tax Reform Act of 1986, does not exceed 1.0 for such limitation year.
         J.   For years beginning after December 31, 2001, annual additions shall be calculated in conformance with the Economic Growth and Tax Reconciliation Act of 2001.
      (2)   Except as specifically permitted in the Regulations of the Secretary of the Treasury under Section 415 of the Code, the benefits paid or payable at any time shall not exceed the limitations of division (a) of this section.
      (3)   Special rule for defined contribution fraction for defined contribution plan in effect on or before July 1, 1982.  Council may elect, for any limitation year ending after December 31, 1982, that the amount taken into account in the denominator for every participant and new Plan participant for all limitation years ending before January 1, 1983, shall be an amount equal to the product of:
         A.   The denominator for the limitation year ending in 1982 determined under the law in effect for the limitation year ending in 1982, multiplied by,
         B.   The "transition fraction".  The term "transition fraction" shall mean a fraction:
            1.   The numerator of which is the lesser of:
               a.   Fifty-one thousand eight hundred seventy-five dollars ($51,875); or
               b.   1.4 multiplied by twenty-five percent of the participant's compensation for the limitation year ending in 1981; and
            2.   The denominator of which is the lesser of:
               a.   Forty-one thousand five hundred dollars ($41,500); or
               b.   Twenty-five percent of the participant's compensation for the limitation year ending in 1981.
         C.   Notwithstanding the foregoing, for any limitation year in which the Plan is a top heavy Plan, forty-one thousand five hundred dollars ($41,500) shall be substituted for fifty-one thousand eight hundred seventy-five dollars ($51,875) in determining the "transition fraction" unless the extra minimum benefit is provided pursuant to the Internal Revenue Code. However, for any limitation year in which this Plan is a top heavy plan, forty-one thousand five hundred dollars ($41,500) shall be substituted for fifty-one thousand eight hundred seventy-five dollars ($51,875) in any event.
      (4)   If the sum of the defined benefit plan fraction and the defined contribution plan fraction shall exceed 1.0 in any limitation year for any participant in the Plan, for reasons other than those described in division (f)(5) of this section, Council shall adjust the numerator of the defined benefit plan fraction so that the sum of both fractions shall not exceed 1.0 in any limitation year for such participant.
      (5)   If the substitution of 1.00 for 1.25 and forty-one thousand five hundred dollars ($41,500) for fifty-one thousand eight hundred seventy-five dollars ($51,875) above or the excess benefit accruals or annual additions provided for in Internal Revenue Service Notice 82-19 cause the 1.0 limitation to be exceeded for any participant in any limitation year, such participant shall be subject to the following restrictions for each future limitation year until the 1.0 limitation is satisfied:
         A.   The participant's accrued benefit shall not increase;
         B.   No annual additions may be credited to a participant's account; and
         C.   No employee contributions (voluntary or mandatory) shall be made under any defined benefit plan or any defined contribution plan of the employer.
   (g)   Incorporation of Code Section 415 by Reference. Notwithstanding anything contained in this chapter to the contrary, the limitations, adjustments, and other requirements prescribed in this chapter shall at all times comply with the provisions of Code Section 415 (as such apply to governmental plans) and the Regulations thereunder, the terms of which are specifically incorporated herein by reference. Thus, for the first 415 limitation year beginning after December 31, 1994, the applicable mortality table described in Rev. Ruling 956, 1995-1 C.B. 80 shall be utilized, and effective for Plan years beginning after December 31, 1997, the term compensation for Code Section 415 purposes, in accordance with Section 415(c)(3)(D) of the Code and Treasury Regulation Section 1.415-2(d), shall include (i) an elective deferral (as defined in Code Section 402(g)(3)), and (ii) any amount which is contributed or deferred by the employer at the election of the employee and which is includable in gross income of the employee by reason of Code Sections 125 or 457.
   (h)   Credit for Qualified Military Service.  Notwithstanding any provisions of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code.
(Ord. 01-02.  Passed 4-8-02; Ord. 01-15.  Passed 2-19-15.)