HomeMy WebLinkAboutAn Ordinance and Adoption Agreement for City of Milton Georgia Municipal Employees Benefit System Defined Benefit Retirement PlanGEORGIA MUNICIPAL EMPLOYEES
BENEFIT SYSTEM
DEFINED BENEFIT RETIREMENT PLAN
AN ORDINANCE
and
ADOPTION AGREEMENT
for
Citv of Milton
Form Volume Submitter Adoption Agreement
Amended and Restated as of January 1, 2007
(With Amendments Effective Through July 1, 2015)
City of Milton (Amended Effective May 3, 2016)
TABLE OF CONTENTS
PAGE
I. AN ORDINANCE.........................................................................................................
II. GMEBS DEFINED BENEFIT RETIREMENT PLAN ADOPTION AGREEMENT..............2
1.
ADMINISTRATOR................................................................................................2
2.
ADOPTING EMPLOYER.......................................................................................2
3.
GOVERNING AUTHORITY.................................................................................2
4.
PLAN REPRESENTATIVE....................................................................................2
5.
PENSION COMMITTEE........................................................................................3
6.
TYPE OF ADOPTION............................................................................................3
7.
EFFECTIVE DATE.................................................................................................3
8.
PLAN YEAR...........................................................................................................5
9.
CLASSES OF ELIGIBLE EMPLOYEES...............................................................5
A. Eligible Regular Employees........................................................................5
B. Elected or Appointed Members of the Governing Authority ......................5
10.
ELIGIBILITY CONDITIONS.................................................................................6
A. Hours Per Week (Regular Employees)........................................................6
B. Months Per Year (Regular Employees).......................................................6
11.
WAITING PERIOD.................................................................................................7
12.
ESTABLISHING PARTICIPATION IN THE PLAN............................................7
13.
CREDITED SERVICE............................................................................................8
A. Credited Past Service with Adopting Employer..........................................8
B. Prior Military Service..................................................................................9
C. Prior Governmental Service.......................................................................10
D. Leave Conversion for Unused Paid Time Off (e.g., Sick,
Vacation, or Personal Leave).....................................................................12
14.
RETIREMENT ELIGIBILITY..............................................................................13
A. Early Retirement Qualifications................................................................13
B. Normal Retirement Qualifications.............................................................14
C. Alternative Normal Retirement Qualifications..........................................16
D. Disability Benefit Qualifications...............................................................19
15.
RETIREMENT BENEFIT COMPUTATION.......................................................20
A. Maximum Total Credited Service..............................................................20
B. Monthly Normal Retirement Benefit Amount...........................................20
C. Monthly Early Retirement Benefit Amount..............................................23
D. Monthly Late Retirement Benefit Amount (check one): ...........................
24
E. Monthly Disability Benefit Amount..........................................................24
F. Minimum/Maximum Benefit For Elected Officials..................................25
16.
SUSPENSION OF BENEFITS; COLA................................................................25
A. Re -Employment After Normal or Early Retirement (see
Master Plan Section 6.06(h) Regarding Re -Employment
After Disability Retirement)......................................................................25
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City of Milton (Amended Effective May 3, 2016)
City of Milton (Amended Effective May 3, 2016)
B. Cost Of Living Adjustment........................................................................27
17.
TERMINATION OF EMPLOYMENT BEFORE RETIREMENT;
VESTING..............................................................................................................27
A. Eligible Regular Employees......................................................................27
B. Elected or Appointed Members of the Governing Authority ....................28
18.
PRE -RETIREMENT DEATH BENEFITS...........................................................29
A. In -Service Death Benefit............................................................................29
B. Terminated Vested Death Benefit..............................................................30
19.
EMPLOYEE CONTRIBUTIONS.........................................................................31
20.
MODIFICATION OF THE TERMS OF THE ADOPTION
AGREEMENT.......................................................................................................32
21.
TERMINATION OF THE ADOPTION AGREEMENT......................................32
22.
EMPLOYER ADOPTION AND AUTHORIZATION FOR
AMENDMENTS...................................................................................................32
City of Milton (Amended Effective May 3, 2016)
1. AN ORDINANCE
An Ordinance to amend and restate the Retirement Plan for the Employees of the City of
Milton, Georgia in accordance with and subject to the terms and conditions set forth in the
attached Adoption Agreement, any Addendum to the Adoption Agreement, the Georgia
Municipal Employees Benefit System (GMEBS) Master Plan Document, and the GMEBS Trust
Agreement. When accepted by the authorized officers of the City and GMEBS, the foregoing
shall constitute a Contract between the City and GMEBS, all as authorized and provided by
O.C.G.A. § 47-5-1 et seq.
BE IT ORDAINED by the Mayor and Council of the City of Milton, Georgia, and it is
hereby ordained by the authority thereof:
Section 1. The Retirement Plan for the Employees of the City of Milton, Georgia is
hereby amended and restated as set forth in and subject to the terms and conditions stated in the
following Adoption Agreement, any Addendum to the Adoption Agreement, the Georgia
Municipal Employees Benefit System (GMEBS) Master Plan Document, and the GMEBS Trust
Agreement.
Ordinance continued on page 35
City of Milton (Amended EffectiN a May 3, 2016)
II. GMEBS DEFINED BENEFIT RETIREMENT PLAN
ADOPTION AGREEMENT
1. ADMINISTRATOR
Georgia Municipal Employees Benefit System
201 Pryor Street, SW
Atlanta, Georgia 30303
Telephone: 404-688-0472
Facsimile: 404-577-6663
2. ADOPTING EMPLOYER
Name: City of Milton, Georgia
3. GOVERNING AUTHORITY
Name: Mayor and Council
Address: 13000 Deerfield Parkway, Suite 107-A, Milton, Georgia 30004-6119
Phone: (678) 242-2500
Facsimile: (678) 242-2499
4. PLAN REPRESENTATIVE
[To represent Governing Authority in all communications with GMEBS and Employees]
(See Section 2.49 of Master Plan)
Name: Director of Operations
Address: 13000 Deerfield Parkway, Suite 107-A, Milton, Georgia 30004-6119
Phone: (678) 242-2500
Facsimile: (678) 242-2499
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CitN of Milton (Amended Effective May 3, 2016)
5. PENSION COMMITTEE
[Please designate members by position. If not, members of Pension Committee shall be
determined in accordance with Article XIV of Master Plan]
Position:
Position:
Position:
Position:
Position:
Position:
Position:
Pension Committee Secretary: Director of Human Resources
Address: 13000 Deerfield Parkway, Suite 107-A, Milton, Georgia 30004-6119
Phone: (678) 242-2500
Facsimile: (678) 242-2499
6. TYPE OF ADOPTION
This Adoption Agreement is for the following purpose (check one):
❑ This is a new defined benefit plan adopted by the Adopting Employer for its Employees.
This plan does not replace or restate an existing defined benefit plan.
❑ This is an amendment and restatement of the Adopting Employer's preexisting
non-GMEBS defined benefit plan.
® This is an amendment and restatement of the Adoption Agreement previously adopted by
the Employer, as follows (check one or more as applicable):
® To update the Plan to comply with PPA, HEART, WRERA, and other applicable
federal laws and guidance.
® To make the following amendments to the Adoption Agreement (must specify
below revisions made in this Adoption Agreement): This is an amendment to
change the qualifications for Normal Retirement from attainment of age 65
and completion of seven (7) years of Total Credited Service to attainment of
age 65 and completion of five (5) years of Total Credited Service (see
Adoption Agreement, P. 14); provided, however, that this amendments shall
not apply with respect to City Managers employed by the City on or after
April 1, 2007 and prior to July 1, 2014.
7. EFFECTIVE DATE
NOTE: This Adoption Agreement and any Addendum, with the accompanying Master Plan
Document, is designed to comply with Internal Revenue Code Section 401(a), as applicable to a
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City of Milton (Amended EffectiN a May 3, 2016)
governmental qualified defined benefit plan, and is part of the GMEBS Defined Benefit
Retirement Plan. Plan provisions designed to comply with certain provisions of the Pension
Protection Act of 2006 ("PPA"); the Heroes Earnings Assistance and Relief Tax Act of 2008
("HEART"); and the Worker, Retiree, and Employer Recovery Act of 2008 ("WRERA"); and
Plan provisions designed to comply with certain provisions of additional changes in federal law
and guidance from the Internal Revenue Service under Internal Revenue Service Notice 2012-76
(the 2012 Cumulative List) are effective as of the applicable effective dates set forth in the
Adoption Agreement and Master Plan Document. By adopting this Adoption Agreement, with
its accompanying Master Plan Document, the Adopting Employer is adopting a plan document
intended to comply with Internal Revenue Code Section 401(a), as updated by PPA, HEART,
WRERA, and the 2012 Cumulative List with the applicable effective dates.
(1) Complete this item (1) only if this is a new defined benefit plan which does not replace
or restate an existing defined benefit plan.
The effective date of this Plan is
(insert effective date of this Adoption Agreement not earlier than January 1, 2013).
(2) Complete this item (2) only if this Plan is being adopted to replace a non-GMEBS
defined benefit plan.
Except as otherwise specifically provided in the Master Document or in this Adoption
Agreement, the effective date of this restatement shall be (insert effective date of
this Adoption Agreement not earlier than January 1, 2013). This Plan is intended to
replace and serve as an amendment and restatement of the Employer's preexisting plan,
which became effective on (insert original effective date of preexisting plan).
(3) Complete this item (3) only if this is an amendment and complete restatement of the
Adopting Employer's existing GMEBS defined benefit plan.
Except as otherwise specifically provided in the Master Document or in this Adoption
Agreement, the effective date of this restatement shall be May 3, 2016 (insert effective
date of this Adoption Agreement not earlier than January 1, 2013).
This Plan is adopted as an amendment and restatement of the Employer's preexisting
GMEBS Adoption Agreement, which became effective on July 1, 2014 (insert effective
date of most recent Adoption Agreement preceding this Adoption Agreement).
The Employer's first Adoption Agreement became effective April 1, 2007 (insert effective
date of Employer's first GMEBS Adoption Agreement). The Employer's GMEBS Plan
was originally effective April 1, 2007 (insert effective date of Employer's original
GMEBS Plan). (If the Employer's Plan was originally a non-GMEBS Plan, then the
Employer's non-GMEBS Plan was originally effective (if applicable, insert
effective date of Employer's original non-GMEBS Plan).)
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City of Milton (Amended Effective May 3, 2016)
8. PLAN YEAR
Plan Year means (check one):
❑ Calendar Year
❑ Employer Fiscal Year commencing
19 Other (must specify month and day commencing): January 1— December 31.
9. CLASSES OF ELIGIBLE EMPLOYEES
Only Employees of the Adopting Employer who meet the Master Plan's definition of
"Employee" may be covered under the Adoption Agreement. Eligible Employees shall not
include non-governmental employees, independent contractors, leased employees, nonresident
aliens, or any other ineligible individuals, and this Section 9 must not be completed in a manner
that violates the "exclusive benefit rule" of Internal Revenue Code Section 401(a)(2).
A. Eligible Reaular Employees
Regular Employees include Employees, other than elected or appointed members of the
Governing Authority or Municipal Legal Officers, who are regularly employed in the services of
the Adopting Employer. Subject to the other conditions of the Master Plan and the Adoption
Agreement, the following Regular Employees are eligible to participate in the Plan (check one):
❑ ALL - All Regular Employees, provided they satisfy the minimum hour and other
requirements specified under "Eligibility Conditions" below.
® ALL REGULAR EMPLOYEES EXCEPT for the following employees (must specify):
(1) Employees who are initially employed by the City on or after July 1, 2014; and (2)
Employees who are reemployed by the City on or after July 1, 2014 (see General
Addendum Sections 2 and 14 for additional provisions concerning effect of
reemployment on or after July 1, 2014).
B. Elected or Appointed Members of the Governing Authority
An Adopting Employer may elect to permit participation in the Plan by elected or appointed
members of the Governing Authority and/or Municipal Legal Officers, provided they otherwise
meet the Master Plan's definition of "Employee" and provided they satisfy any other
requirements specified by the Adopting Employer. Municipal Legal Officers to be covered must
be specifically identified by position. Subject to the above conditions, the Employer hereby
elects the following treatment for elected and appointed officials:
(1) Elected or Appointed Members of the Governing Authority (check one):
® ARE NOT eligible to participate in the Plan.
❑ ARE eligible to participate in the Plan.
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City of Milton (Amended Effective May 3, 2016)
Please specify any limitations on eligibility to participate here (e.g., service on or after certain
date, or special waiting period provision):
(2) Municipal Legal Officers (check one):
® ARE NOT eligible to participate in the Plan.
❑ ARE eligible to participate in the Plan. The term "Municipal Legal Officer" shall include
only the following positions (must specify):
Please specify any limitations on eligibility to participate here (e.g., service on or after certain
date):
10. ELIGIBILITY CONDITIONS
A. Hours Per Week (Regular Employees)
The Adopting Employer may specify a minimum number of work hours per week which
are required to be scheduled by Regular Employees in order for them to become and remain
"Eligible Regular Employees" under the Plan. It is the responsibility of the Adopting
Employer to determine whether these requirements are and continue to be satisfied. The
Employer hereby elects the following minimum hour requirement for Regular Employees:
❑ No minimum
❑ 20 hours/week (regularly scheduled)
❑ 30 hours/week (regularly scheduled)
® Other: 35 hours/week (must not exceed 40 hours/week regularly scheduled)
Exceptions: If a different minimum hour requirement applies to a particular class or classes of
Regular Employees, please specify below the classes to whom the different requirement applies
and indicate the minimum hour requirement applicable to them.
Class(es) of Regular Employees to whom exception applies (must specify):
Minimum hour requirement applicable to excepted Regular Employees:
No minimum
20 hours/week (regularly scheduled)
30 hours/week (regularly scheduled)
Other:
(must not exceed 40 hours/week regularly scheduled)
B. Months Per Year (Regular Employees)
The Adopting Employer may specify a minimum number of work months per year which
are required to be scheduled by Regular Employees in order for them to become and remain
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City of Milton (Amended Effective May 3, 2016)
"Eligible Employees" under the Plan. It is the responsibility of the Adopting Employer to
determine whether these requirements are and continue to be satisfied. The Employer
hereby elects the following minimum requirement for Regular Employees:
❑ No minimum
® At least 6 months per year (regularly scheduled)
❑ Other:
Exceptions: If different months per year requirements apply to a particular class or classes of
Regular Employees, the Employer must specify below the classes to whom the different
requirements apply and indicate below the requirements applicable to them.
Regular Employees to whom exception applies (must specify):
The months to year requirement for excepted class(es) are:
❑ No minimum
❑ At least months per year (regularly scheduled)
❑ Other:
11. WAITING PERIOD
Except as otherwise provided in Section 4.02(b) of the Master Plan, Eligible Regular Employees
shall not have a waiting period before participating in the Plan. Likewise, elected or appointed
members of the Governing Authority and Municipal Legal Officers, if eligible to participate in
the Plan, shall not have a waiting period before participating in the Plan.
12. ESTABLISHING PARTICIPATION IN THE PLAN
Participation in the Plan is considered mandatory for all Eligible Employees who satisfy
the eligibility conditions specified in the Adoption Agreement, except as provided in
Section 4.03(e) of the Master Plan. However, the Employer may specify below that participation
is optional for certain classes of Eligible Employees, including Regular Employees, elected or
appointed members of the Governing Authority, Municipal Legal Officers, City Managers,
and/or Department Heads. If participation is optional for an Eligible Employee, then in order to
become a Participant, he must make a written election to participate within 120 days after
employment, election or appointment to office, or if later, the date he first becomes eligible to
participate in the Plan. The election is irrevocable, and the failure to make the election within
the 120 day time limit shall be deemed an irrevocable election not to participate in the Plan.
Classes for whom participation is optional (check one):
® None (Participation is mandatory for all Eligible Employees except as provided in
Section 4.03(e) of the Master Plan).
❑ Participation is optional for the following Eligible Employees (must specify; all
individuals or classes specified must be Eligible Employees):
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City of Milton (Amended Effective May 3, 2016)
13. CREDITED SERVICE
In addition to Current Credited Service the Adopting Employer may include as Credited
Service the following types of service:
A. Credited Past Service with Adopting Employer
Credited Past Service means the number of years and complete months of Service with the
Adopting Employer prior to the date an Eligible Employee becomes a Participant which are
treated as credited service under the Plan.
(1) Eligible Employees Employed on Original Effective Date of GMEBS Plan.
With respect to Eligible Employees who are employed by the Adopting Employer on the original
Effective Date of the Employer's GMEBS Plan, Service with the Adopting Employer prior to the
date the Eligible Employee becomes a Participant (including any Service prior to the Effective
Date of the Plan) shall be treated as follows (check one):
® All Service prior to the date the Eligible Employee becomes a Participant shall be
credited (as Credited Past Service).
❑ All Service prior to the date the Eligible Employee becomes a Participant shall be
credited (as Credited Past Service), except for Service rendered prior to
(insert date).
❑ All Service prior to the date the Eligible Employee becomes a Participant shall be
credited (as Credited Past Service), except as follows (must specify other
limitation):
❑ No Service prior to the date the Eligible Employee becomes a Participant shall be
credited (as Credited Past Service).
(2) Previously Employed, Returning to Service after Original Effective Date. If
an Eligible Employee is not employed on the original Effective Date of the Employer's GMEBS
Plan, but he returns to Service with the Adopting Employer sometime after the Effective Date,
his Service prior to the date he becomes a Participant (including any Service prior the Effective
Date) shall be treated as follows (check one):
❑ All Service prior to the date the Eligible Employee becomes a Participant shall be
credited (as Credited Past Service), subject to any limitations imposed above with
respect to Eligible Employees employed on the Effective Date.
® All Service prior to the date the Eligible Employee becomes a Participant shall be
credited (as Credited Past Service), provided that after his return to employment,
the Eligible Employee performs Service equal to the period of the break in
Service or one (1) year, whichever is less. Any limitations imposed above with
respect to Eligible Employees employed on the Effective Date shall also apply.
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City of Milton (Amended Effective May 3, 2016)
❑ No Service prior to the date the Eligible Employee becomes a Participant shall be
credited (as Credited Past Service).
Other limitation(s) on Recognition of Credited Past Service (must specify): Notwithstanding
any provision herein to the contrary, if an Employee who was not employed on the original
Effective Date of the City's GMEBS Plan (April 1, 2007) first becomes reemployed by the
City on or after July 1, 2014, the Employee will not be eligible to participate in this Plan
and his/her service with the City prior to the original Effective Date of the Plan will not be
taken into account under this Plan for any purpose.
(3) Eligible Employees Initially Employed After Effective Date. If an Eligible
Employee's initial employment date is after the original Effective Date of the Employer's
GMEBS Plan, his Credited Past Service shall include only the number of years and complete
months of Service from his initial employment date to the date he becomes a Participant in the
Plan.
(4) Newly Eligible Classes of Employees. If a previously ineligible class of
Employees becomes eligible to participate in the Plan, the Employer must specify in an
addendum to this Adoption Agreement whether and to what extent said Employees' prior service
with the Employer shall be treated as Credited Past Service under the Plan.
B. Prior Military Service
Note: This Section does not concern military service required to be credited under
USERRA — See Section 3.02 of the Master Plan for rules on the crediting of USERRA
Military Service.
(1) Credit for Prior Military Service.
The Adopting Employer may elect to treat military service rendered prior to a Participant's initial
employment date or reemployment date as Credited Service under the Plan. Unless otherwise
specified by the Employer under "Other Conditions" below, the term "Military Service" shall be
as defined in the Master Plan. Except as otherwise required by federal or state law or under
"Other Conditions" below, Military Service shall not include service which is credited under any
other local, state, or federal retirement or pension plan.
Military Service credited under this Section shall not include any service which is otherwise
required to be credited under the Plan by federal or state law. Prior Military Service shall be
treated as follows (check one):
® Prior Military Service is not creditable under the Plan (if checked, skip to
Section B.C. — Prior Governmental Service).
❑ Prior Military Service shall be counted as Credited Service for the following
purposes (check one or more as applicable):
❑ Computing amount of benefits payable.
❑ Meeting minimum service requirements for vesting.
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City of Milton (Amended Effective May 3, 2016)
❑ Meeting minimum service requirements for benefit eligibility.
(2) Maximum Credit for Prior Military Service.
Credit for Prior Military Service shall be limited to a maximum of years (insert number).
(3) Rate of Accrual for Prior Military Service.
Credit for Prior Military Service shall accrue at the following rate (check one):
❑ One month of military service credit for every month(s) (insert
number) of Credited Service with the Adopting Employer.
❑ One year of military service credit for every year(s) (insert number) of
Credited Service with the Adopting Employer.
❑ All military service shall be creditable (subject to any caps imposed above) after
the Participant has completed years (insert number) of Credited Service
with the Employer.
❑ Other requirement (must specify):
(4) Payment for Prior Military Service Credit(check one):
❑ Participants shall not be required to pay for military service credit.
❑ Participants shall be required to pay for military service credit as follows:
❑ The Participant must pay % of the actuarial cost of the service credit
(as defined below).
❑ The Participant must pay an amount equal to (must specify):
Other Conditions for Award of Prior Military Service Credit (must specify):
(5) Limitations on Service Credit Purchases. Unless otherwise specified in an
Addendum to the Adoption Agreement, for purposes of this Section and Section D.C.
concerning prior governmental service credit, the term "actuarial cost of service credit" is
defined as set forth in the Service Credit Purchase Addendum. In the case of a service credit
purchase, the Participant shall be required to comply with any rules and regulations established
by the GMEBS Board of Trustees concerning said purchases.
C. Prior Governmental Service
Note: A Participant's prior service with other GMEBS employers shall be credited for
purposes of satisfying the minimum service requirements for Vesting and eligibility for
Retirement and pre -retirement death benefits as provided under Section 9.05 of the Master
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City of Milton (Amended Effective May 3, 2016)
Plan, relating to portability service. This Section 13(C) does not need to be completed in
order for Participants to receive this portability service credit pursuant to Section 9.05 of
the Master Plan.
(1) Credit for Prior Governmental Service.
The Adopting Employer may elect to treat governmental service rendered prior to a Participant's
initial employment date or reemployment date as creditable service under the Plan. Subject to
any limitations imposed by law, the term "prior governmental service" shall be as defined by the
Adopting Employer below. The Employer elects to treat prior governmental service as follows
(check one):
® Prior governmental service is not creditable under the Plan (if checked, skip to
Section B.D. — Unused SickNacation Leave).
❑ Prior governmental service shall be counted as Credited Service for the following
purposes under the Plan (check one or more as applicable):
❑ Computing amount of benefits payable.
❑ Meeting minimum service requirements for vesting.
❑ Meeting minimum service requirements for benefit eligibility.
(2) Definition of Prior Governmental Service.
Prior governmental service shall be defined as follows: (must specify):
Unless otherwise specified above, prior governmental service shall include only full-time service
(minimum hour requirement same as that applicable to Eligible Regular Employees).
(3) Maximum Credit for Prior Governmental Service.
Credit for prior governmental service shall be limited to a maximum of years (insert
number).
(4) Rate of Accrual for Prior Governmental Service Credit.
Credit for prior governmental service shall accrue at the following rate (check one):
❑ One month of prior governmental service credit for every month(s) (insert
number) of Credited Service with the Adopting Employer.
❑ One year of prior governmental service credit for every year(s) (insert
number) of Credited Service with the Adopting Employer.
❑ All prior governmental service shall be creditable (subject to any caps imposed
above) after the Participant has completed years (insert number) of
Credited Service with the Adopting Employer.
City of Milton (Amended Effective May 3, 2016)
❑ Other requirement (must specify):
(5) Payment for Prior Governmental Service Credit.
❑ Participants shall not be required to pay for governmental service credit.
❑ Participants shall be required to pay for governmental service credit as follows:
❑ The Participant must pay % of the actuarial cost of the service credit.
❑ The Participant must pay an amount equal to (must specify):
Other Conditions for Award of Prior Governmental Service Credit (must specify):
D. Leave Conversion for Unused Paid Time Off (e.z., Sick, Vacation, or Personal
Leave
(1) Credit for Unused Paid Time Off.
Subject to the limitations in Section 3.01 of the Master Plan, an Adopting Employer may elect to
treat accumulated days of unused paid time off for a terminated Participant, for which the
Participant is not paid, as Credited Service. The only type of leave permitted to be credited
under this provision is leave from a paid time off plan which qualifies as a bona fide sick and
vacation leave plan (which may include sick, vacation or personal leave) and which the
Participant may take as paid leave without regard to whether the leave is due to illness or
incapacity. The Credited Service resulting from the conversion of unused paid time off must not
be the only Credited Service applied toward the accrual of a normal retirement benefit under the
Plan. The Pension Committee shall be responsible to certify to GMEBS the total amount of
unused paid time off that is creditable hereunder.
Important Note: Leave cannot be converted to Credited Service in lieu of receiving a cash
payment. If the Employer elects treating unused paid time off as Credited Service, the
conversion to Credited Service will be automatic, and the Participant cannot request a cash
payment for the unused paid time off.
The Employer elects the following treatment of unused paid time off:
® Unused paid time off shall not be treated as Credited Service (if checked, skip to
Section 14 — Retirement Eligibility).
❑ The following types of unused paid time off for which the Participant is not paid
shall be treated as Credited Service under the Plan (check one or more as
applicable):
❑ Unused sick leave
❑ Unused vacation leave
❑ Unused personal leave
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City of Milton (Amended Effective May 3, 2016)
❑ Other paid time off (must specify, subject to limitations in Section 3.01 of
Master Plan):
(2) Minimum Service Requirement.
In order to receive credit for unused paid time off, a Participant must meet the following
requirement at termination (check one):
❑ The Participant must be 100% vested in a normal retirement benefit.
❑ The Participant must have at least years (insert number) of Total
Credited Service (not including leave otherwise creditable under this Section).
❑ Other (must specify, subject to limitations in Section 3.01 of Master Plan):
(3) Use of Unused Paid Time Off Credit. Unused paid time off for which the
Participant is not paid shall count as Credited Service for the following purposes under the Plan
(check one or more as applicable):
❑ Computing amount of benefits payable.
❑ Meeting minimum service requirements for vesting.
❑ Meeting minimum service requirements for benefit eligibility.
(4) Maximum Credit for Unused Paid Time Off.
Credit for unused paid time off for which the Participant is not paid shall be limited to a
maximum of months (insert number).
(5) Computation of Unused Paid Time Off.
Unless otherwise specified by the Adopting Employer under "Other Conditions" below, each
twenty (20) days of creditable unused paid time off shall constitute one (1) complete month of
Credited Service under the Plan. Partial months shall not be credited.
(6) Other Conditions (please specify, subject to limitations in Section 3.01 of
Master Plan):
14. RETIREMENT ELIGIBILITY
A. Early Retirement Qualifications
Early retirement qualifications are (check one or more as applicable):
® Attainment of age 55 (insert number)
® Completion of 10 years (insert number) of Total Credited Service
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City of Milton (Amended Effective May 3, 2016)
Exceptions: If different early retirement eligibility requirements apply to a particular class or
classes of Eligible Employees, the Employer must specify below the classes to whom the
different requirements apply and indicate below the requirements applicable to them.
Eligible Employees to whom exception applies (must specify):
Early retirement qualifications for excepted class(es) are (check one or more as applicable):
❑ Attainment of age (insert number)
❑ Completion of years (insert number) of Total Credited Service
B. Normal Retirement Qualifications
Note: Please complete this Section and also list "Alternative" Normal Retirement
Qualifications, if any, in Section 14.C.
(1) Regular Employees
Normal retirement qualifications for Regular Employees are (check one or more as applicable):
® Attainment of age 65 (insert number)
® Completion of 5 years (insert number) of Total Credited Service
❑ In -Service Distribution to Eligible Employees permittedi.e., a qualifying
Participant may commence receiving retirement benefits while in service without
first incurring a Bona Fide Separation from Service), if Participant meets
minimum age and service requirements specified immediately above and is at
least age 62 (unless a lower safe -harbor age is permitted under applicable federal
law), subject to applicable Plan provisions concerning recalculation and offset
applied at re -retirement to account for the value of benefits received prior to re -
retirement. This rule shall apply to (check one): ❑ all Participants ❑ only the
following class(es) of Participants (must specify):
Exceptions: If different normal retirement qualifications apply to a particular class or classes of
Regular Employees, the Employer must specify below the classes to whom the different
requirements apply and indicate below the requirements applicable to them.
Class(es) of Regular Employees to whom exception applies (must specify): City Managers
employed by the City on or after April 1, 2007 and prior to July 1, 2014 (Employees
initially employed or reemployed on or after Julv 1, 2014 are not eligible to participate in
the Plan — see Section 9 above and Sections 2 and 13 of General Addendum).
Normal retirement qualifications for excepted class(es) are (check one or more as applicable):
® Attainment of age 65 (insert number)
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City of Milton (Amended Effective May 3, 2016)
❑ Completion of years (insert number) of Total Credited Service
❑ In -Service Distribution to Eligible Employees permitted i.e., a qualifying
Participant may commence receiving retirement benefits while in service without
first incurring a Bona Fide Separation from Service), if Participant meets
minimum age and service requirements specified immediately above and is at
least age 62 (unless a lower safe -harbor age is permitted under applicable federal
law), subject to applicable Plan provisions concerning recalculation and offset
applied at re -retirement to account for the value of benefits received prior to re -
retirement. This rule shall apply to (check one): ❑ all Participants ❑ only the
following class(es) of Participants (must specify):
(2) Elected or Appointed Members of Governing Authority
Complete this Section only if elected or appointed members of the Governing Authority or
Municipal Legal Officers are permitted to participate in the Plan. Normal retirement
qualifications for this class are (check one or more as applicable):
❑ Attainment of age (insert number)
❑ Completion of years (insert number) of Total Credited Service
❑ In -Service Distribution to Eligible Employees permitted i.e., a qualifying
Participant may commence receiving retirement benefits while in service without
first incurring a Bona Fide Separation from Service), if Participant meets
minimum age and service requirements specified immediately above and is at
least age 62 (unless a lower safe -harbor age is permitted under applicable federal
law), subject to applicable Plan provisions concerning recalculation and offset
applied at re -retirement to account for the value of benefits received prior to re -
retirement. This rule shall apply to (check one): ❑ all Participants ❑ only the
following class(es) of Participants (must specify):
Exceptions: If different normal retirement qualifications apply to particular elected or appointed
members of the Governing Authority or Municipal Legal Officers, the Employer must specify
below to whom the different requirements apply and indicate below the requirements applicable
to them.
Particular elected or appointed members of the Governing Authority or Municipal Legal Officers
to whom exception applies (must specify):
Normal retirement qualifications for excepted elected or appointed members of the Governing
Authority or Municipal Legal Officers are (check one or more as applicable):
❑ Attainment of age (insert number)
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City of Milton (Amended Effective May 3, 2016)
❑ Completion of years (insert number) of Total Credited Service
❑ In -Service Distribution to Eligible Employees permitted i.e., a qualifying
Participant may commence receiving retirement benefits while in service without
first incurring a Bona Fide Separation from Service), if Participant meets
minimum age and service requirements specified immediately above and is at
least age 62 (unless a lower safe -harbor age is permitted under applicable federal
law), subject to applicable Plan provisions concerning recalculation and offset
applied at re -retirement to account for the value of benefits received prior to re -
retirement. This rule shall apply to (check one): ❑ all Participants ❑ only the
following class(es) of Participants (must specify):
C. Alternative Normal Retirement Oualifications
The Employer may elect to permit Participants to retire with unreduced benefits after they satisfy
service and/or age requirements other than the regular normal retirement qualifications specified
above. The Employer hereby adopts the following alternative normal retirement qualifications:
Alternative Normal Retirement Qualifications (check one or more, as applicable):
(1) ® Not applicable (the Adopting Employer does not offer alternative normal
retirement benefits under the Plan).
(2) ❑ Alternative Minimum Age & Service Qualifications (if checked, please
complete one or more items below, as applicable):
❑ Attainment of age _ (insert number)
❑ Completion of _ years (insert number) of Total Credited Service
❑ In -Service Distribution to Eligible Employees permitted i.e., a qualifying
Participant may commence receiving retirement benefits while in service
without first incurring a Bona Fide Separation from Service), if Participant
meets minimum age and service requirements specified immediately
above and is at least age 62 (unless a lower safe -harbor age is permitted
under applicable federal law), subject to applicable Plan provisions
concerning recalculation and offset applied at re -retirement to account for
the value of benefits received prior to re -retirement. This rule shall apply
to (check one): ❑ all Participants ❑ only the following class(es) of
Participants (must specify):
This alternative normal retirement benefit is available to:
® All Participants who qualify.
- 16—
City of Milton (Amended Effective May 3, 2016)
❑ Only the following Participants (must specify):
A Participant (check one): ❑ is required ❑ is not required to be in the service of
the Employer at the time he satisfies the above qualifications in order to qualify
for this alternative normal retirement benefit.
Other eligibility requirement (must specify):
(3) ❑ Rule of (insert number). The Participant's combined Total Credited
Service and age must equal or exceed this number. Please complete additional
items below:
To qualify for this alternative normal retirement benefit, the Participant (check
one or more items below, as applicable):
❑ Must have attained at least age (insert number)
❑ Must not satisfy any minimum age requirement
❑ In -Service Distribution to Eligible Employees permitted i.e., a qualifying
Participant may commence receiving retirement benefits while in service
without first incurring a Bona Fide Separation from Service), if the
Participant meets the minimum age and service requirements specified
immediately above and is at least age 62 (unless a lower safe -harbor age is
permitted under applicable federal law), subject to applicable Plan
provisions concerning recalculation and offset applied at re -retirement to
account for the value of benefits received prior to re -retirement. This rule
shall apply to (check one): ❑ all Participants ❑ only the following
class(es) of Participants (must specify):
This alternative normal retirement benefit is available to:
❑ All Participants who qualify.
❑ Only the following Participants (must specify):
A Participant (check one): ❑ is required
the Employer at the time he satisfies
alternative normal retirement benefit.
❑ is not required to be in the service of
the Rule in order to qualify for this
Other eligibility requirement (must specify):
(4) ❑ Alternative Minimum Service. A Participant is eligible for an alternative
normal retirement benefit if he has at least years (insert number) of
Total Credited Service, regardless of the Participant's age.
-17—
City of Milton (Amended Effective May 3, 2016)
❑ In -Service Distribution to Eligible Employees permitted i.e., a qualifying
Participant may commence receiving retirement benefits while in service
without first incurring a Bona Fide Separation from Service), if the
Participant meets the minimum service requirement specified immediately
above and is at least age 62 (unless a lower safe -harbor age is permitted
under applicable federal law), subject to applicable Plan provisions
concerning recalculation and offset applied at re -retirement to account for
the value of benefits received prior to re -retirement. This rule shall apply
to (check one): ❑ all Participants ❑ only the following class(es) of
Participants (must specify):
This alternative normal retirement benefit is available to:
❑ All Participants who qualify.
❑ Only the following Participants (must specify):
A Participant (check one): ❑ is required ❑ is not required to be in the service of
the Employer at the time he satisfies the qualifications for this alternative normal
retirement benefit.
Other eligibility requirement (must specify):
(5) ❑ Other Alternative Normal Retirement Benefit.
Must specify qualifications:
❑ In -Service Distribution to Eligible Employees permitted i.e. a qualifying
Participant may commence receiving retirement benefits while in service
without first incurring a Bona Fide Separation from Service), if the
Participant meets minimum age and service requirements specified
immediately above and is at least age 62 (unless a lower safe -harbor age is
permitted under applicable federal law), subject to applicable Plan
provisions concerning recalculation and offset applied at re -retirement to
account for the value of benefits received prior to re -retirement. This rule
shall apply to (check one): ❑ all Participants ❑ only the following
class(es) of Participants (must specify):
This alternative normal retirement benefit is available to:
❑ All Participants who qualify.
❑ Only the following Participants (must specify):
- 18—
City of Milton (Amended Effective May 3, 2016)
A Participant (check one): ❑ is required ❑ is not required to be in the service of
the Employer at the time he satisfies the qualifications for this alternative normal
retirement benefit.
Other eligibility requirement (must specify):
(6) ❑ Other Alternative Normal Retirement Benefit for Public Safety Employees
Only.
Must specify qualifications:
❑ In -Service Distribution to Eligible Employees who are Public Safety
Employees permitted (i.e., a qualifying Participant may commence
receiving retirement benefits while in service without first incurring a
Bona Fide Separation from Service), if the Participant meets minimum age
and service requirements specified immediately above and is at least age
50 (unless a lower safe -harbor age is permitted under applicable federal
law), subject to applicable Plan provisions concerning recalculation and
offset applied at re -retirement to account for the value of benefits received
prior to re -retirement. This rule shall apply to (check one): ❑ all
Participants ❑ only the following class(es) of Participants (must specify):
This alternative normal retirement benefit is available to:
❑ All public safety employee Participants who qualify.
❑ Only the following public safety employee Participants (must specify): _
A public safety employee Participant (check one): ❑ is required ❑ is not
required to be in the service of the Employer at the time he satisfies the
qualifications for this alternative normal retirement benefit.
Other eligibility requirement (must specify):
Note: "Public safety employees" are defined under the Internal Revenue Code for this
purpose as employees of a State or political subdivision of a State who provide police
protection, firefighting services, or emergency medical services for any area within the
jurisdiction of such State or political subdivision.
D. Disabilitv Benefit Qualifications
Subject to the other terms and conditions of the Master Plan and except as otherwise provided in
an Addendum to this Adoption Agreement, disability retirement qualifications are based upon
Social Security Administration award criteria or as otherwise provided under Section 2.23 of the
- 19—
City of Milton (Amended Effective May 3, 2016)
Master Plan. The Disability Retirement benefit shall commence as of the Participant's Disability
Retirement Date under Section 2.24 of the Master Plan.
To qualify for a disability benefit, a Participant must have the following minimum number of
years of Total Credited Service (check one):
❑ Not applicable (the Adopting Employer does not offer disability retirement
benefits under the Plan).
® No minimum.
❑ years (insert number) of Total Credited Service.
Other eligibility requirement (must specify):
15. RETIREMENT BENEFIT COMPUTATION
A. Maximum Total Credited Service
The number of years of Total Credited Service which may be used to calculate a benefit is
(check one or all that apply):
® not limited.
❑ limited to years for all Participants.
❑ limited to years for the following classes of Eligible Regular
Employees:
❑ All Eligible Regular Employees.
❑ Only the following Eligible Regular Employees:
❑ limited to years as an elected or appointed member of the Governing
Authority.
❑ limited to years as a Municipal Legal Officer.
❑ Other (must specify):
B. Monthly Normal Retirement Benefit Amount
(1) Regular Employee Formula
The monthly normal retirement benefit for Eligible Regular Employees shall be 1/12 of (check
and complete one or more as applicable):
® (a) Flat Percentage Formula. 2.75% (insert percentage) of Final Average
Earnings multiplied by years of Total Credited Service as an Eligible
Regular Employee. -
-20—
City of Milton (Amended Effective May 3, 2016)
This formula applies to:
® All Participants who are Regular Employees.
❑ Only the following Participants (must specify):
❑ (b) Alternative Flat Percentage Formula. % (insert percentage) of
Final Average Earnings multiplied by years of Total Credited Service as
an Eligible Regular Employee. This formula applies to the following
Participants (must specify):
❑ (c) Split Final Average Earnings Formula. % (insert percentage) of
Final Average Earnings up to the amount of Covered Compensation (see
subsection (2) below for definition of Covered Compensation), plus
(insert percentage) of Final Average Earnings in excess of said
Covered Compensation, multiplied by years of Total Credited Service as
an Eligible Regular Employee.
This formula applies to:
❑ All Participants who are Regular Employees.
❑ Only the following Participants (must specify):
❑ (d) Alternative Split Final Average Earnings Formula. % (insert
percentage) of Final Average Earnings up to the amount of Covered
Compensation (see subsection (2) below for definition of Covered
Compensation), plus % (insert percentage) of Final Average
Earnings in excess of said Covered Compensation, multiplied by years of
Total Credited Service as an Eligible Regular Employee.
This formula applies to:
❑ All Participants.
❑ Only the following Participants (must specify):
[Repeat above subsections as necessary for each applicable benefit formula and Participant
class covered under the Plan.]
(2) Covered Compensation (complete only if Split Formula(s) is checked above):
Covered Compensation is defined as (check one or more as applicable):
❑ (a) A.I.M.E. Covered Compensation as defined in Section 2.18 of the
Master Plan. This definition of Covered Compensation shall apply to
(check one):
-21—
City of Milton (Amended Effecth-e May 3, 2016)
❑ All Participants who are Regular Employees.
❑ Only the following Participants (must specify):
❑ (b) Dynamic Break Point Covered Compensation as defined in Section 2.19
of the Master Plan. This definition of Covered Compensation shall apply
to (check one):
❑ All Participants who are Regular Employees.
❑ Only the following Participants (must specify):
❑ (c) Table Break Point Covered Compensation as defined in Section 2.20 of
the Master Plan. This definition of Covered Compensation shall apply to
(check one):
❑ All Participants who are Regular Employees.
❑ Only the following class(es) of Participants (must specify):
❑ (d) Covered Compensation shall mean a Participant's annual Earnings that
do not exceed $ (specify amount). This definition shall
apply to (check one):
❑ All Participants who are Regular Employees.
❑ Only the following Participants (must specify):
(3) Final Average Earnings
Unless otherwise specified in an Addendum to the Adoption Agreement, Final Average Earnings
is defined as the monthly average of Earnings paid to a Participant by the Adopting Employer for
the 60 (insert number not to exceed 60) consecutive months of Credited Service preceding the
Participant's most recent Termination in which the Participant's Earnings were the highest,
multiplied by 12. Note: GMEBS has prescribed forms for calculation of Final Average Earnings
that must be used for this purpose.
This definition of Final Average Earnings applies to:
® All Participants who are Regular Employees.
❑ Only the following Participants (must specify):
[Repeat above subsection as necessary for each applicable definition and Participant class
covered under the Plan.]
(4) Formula for Elected or Appointed Members of the Governing Authority
The monthly normal retirement benefit for members of this class shall be as follows (check one):
® Not applicable (elected or appointed members of the Governing Authority or Municipal
Legal Officers are not permitted to participate in the Plan).
-22—
City of Milton (Amended Effective May 3, 2016)
❑ $ (insert dollar amount) per month for each year of Total Credited Service
as an elected or appointed member of the Governing Authority or Municipal Legal
Officer or major fraction thereof (6 months and 1 day).
This formula applies to:
❑ All elected or appointed members of the Governing Authority or Municipal Legal
Officers eligible to participate.
❑ Only the following elected or appointed members of the Governing Authority or
Municipal Legal Officers eligible to participate (must specify):
[Repeat above subsection as necessary for each applicable formula for classes of elected or
appointed members covered under the Plan.]
C. Monthly Early Retirement Benefit Amount
Check and complete one or more as applicable:
❑ (1) Standard Early Retirement Reduction Table. The monthly Early
Retirement benefit shall be computed in the same manner as the monthly
Normal Retirement benefit, but the benefit shall be reduced on an
Actuarially Equivalent basis in accordance with Section 12.01 of the
Master Plan to account for early commencement of benefits. This
provision shall apply to:
❑ All Participants.
❑ Only the following Participants (must specify):
® (2) Alternative Early Retirement Reduction Table. The monthly Early
Retirement benefit shall be computed in the same manner as the monthly
Normal Retirement benefit, but the benefit shall be reduced to account for
early commencement of benefits based on the following table. This table
shall apply to:
❑ All Participants.
® Only the following Participants (must specify): Those who are
emploved with the Citv as of June 30. 2014, arovided thev do
not become reemployed by the City on or after July 1, 2014.
The standard early retirement reduction table in Master Plan
Section 12.01 will apply to all other Participants.
-23—
City of Milton (Amended Effective May 3, 2016)
Alternative Early Retirement Reduction Table
Number of Years Before Percentage of
Age 65 Normal Retirement Benefit*
(check as applicable) (complete as applicable)
® 0
1.000
® 1
0.97
® 2
0.94
® 3
0.91
® 4
0.88
® 5
0.85
® 6
0.82
® 7
0.79
® 8
0.76
® 9
0.73
® 10
0.70
❑ 11
0.
❑ 12
0.
❑ 13
0.
❑ 14
0.
❑ 15
0.
*Interpolate for whole months
D. Monthly Late Retirement Benefit Amount (clicck one):
® (1) The monthly Late Retirement benefit shall be computed in the same
manner as the Normal Retirement Benefit, based upon the Participant's
Accrued Benefit as of his Late Retirement Date.
❑ (2) The monthly Late Retirement benefit shall be the greater of. (1) the
monthly retirement benefit accrued as of the Participant's Normal
Retirement Date, actuarially increased in accordance with the actuarial
table contained in Section 12.05 of the Master Plan; or (2) the monthly
retirement benefit accrued as of the Participant's Late Retirement Date,
without further actuarial adjustment under Section 12.06 of the Master
Plan.
E. Monthly Disability Benefit Amount
The amount of the monthly Disability Benefit shall be computed in the same manner as the
Normal Retirement benefit, based upon the Participant's Accrued Benefit as of his Disability
Retirement Date.
Minimum Disability Benefit. The Adopting Employer may set a minimum Disability Benefit.
The Employer elects the following minimum Disability benefit (check one):
-24—
City of Milton (Amended Effective May 3, 2016)
❑ Not applicable (the Adopting Employer does not offer disability retirement
benefits under the Plan).
❑ No minimum is established.
® No less than (check one): ® 20% ❑ 10% ❑ % (if other than 20% or 10%
insert percentage amount) of the Participant's average monthly Earnings for the
12 calendar month period (excluding any period of unpaid leave of absence)
immediately preceding his Termination of Employment as a result of a Disability.
(Unless otherwise specified in an Addendum to the Adoption Agreement, no
minimum will apply to elected or appointed members of the Governing Authority
or Municipal Legal Officers.)
❑ No less than (check one): ❑ 66 2/3 % ❑ % (if other than 66 2/3%,
insert percentage amount) of the Participant's average monthly Earnings for the
12 calendar month period (excluding any period of unpaid leave of absence)
immediately preceding his Termination of Employment as a result of a Disability,
less any monthly benefits paid from federal Social Security benefits as a result of
disability as reported by the Employer. (Unless otherwise specified in an
Addendum to the Adoption Agreement, no minimum will apply to elected or
appointed members of the Governing Authority or Municipal Legal Officers.)
Note: The Adopting Employer is responsible for reporting to GMEBS any amounts to be
used in an offset.
F. Minimum/Maximum Benefit For Elected Officials
In addition to any other limitations imposed by federal or state law, the Employer may impose a
cap on the monthly benefit amount that may be received by elected or appointed members of the
Governing Authority. The Employer elects (check one):
® Not applicable (elected or appointed members of the Governing Authority do not
participate in the Plan).
❑ No minimum or maximum applies.
❑ Monthly benefit for Service as an elected or appointed member of the Governing
Authority may not exceed 100% of the Participant's final salary as an elected or
appointed member of the Governing Authority.
❑ Other minimum or maximum (must specify):
16. SUSPENSION OF BENEFITS FOLLOWING BONA FIDE
SEPARATION OF SERVICE; COLA
A. Re -Employment as Elizible Employee After Normal, Alternative Normal, or Early
Retirement and Following Bona Fide Separation of Service (see Master Plan Section
-25—
City of Milton (Amended Effective May 3, 2016)
6.06(c) Regarding Re -Employment as an Ineligible Employee and Master Plan
Section 6.06(e) and (f) Regarding Re -Employment After Disability Retirement)
(1) Reemployment After Normal or Alternative Normal Retirement. In the event
that a Retired Participant 1) is reemployed with the Employer as an Eligible Employee (as
defined in the Plan) after his Normal or Alternative Normal Retirement Date and after a Bona
Fide Separation from Service, or 2) is reemployed with the Employer in an Ineligible Employee
class, and subsequently again becomes an Eligible Employee (as defined in the Plan) due to the
addition of such class to the Plan after his Normal or Alternative Normal Retirement Date, the
following rule shall apply (check one):
® (a) The Participant's benefit shall be suspended in accordance with
Section 6.06(a)(1) of the Master Plan for as long as the Participant
remains employed.
❑ (b) The Participant may continue to receive his retirement benefit in
accordance with Section 6.06(b) of the Master Plan. This rule
shall apply to (check one): ❑ all Retired Participants ❑ only the
following classes of Retired Participants (must specify - benefits
of those Retired Participants not listed shall be suspended in
accordance with Section 6.06(a) of the Master Plan if they
return to work with the Employer):
(2) Reemployment After Early Retirement. In the event a Participant Retires with
an Early Retirement benefit after a Bona Fide Separation from Service 1) is reemployed with the
Employer as an Eligible Employee before his Normal Retirement Date; or 2) is reemployed with
the Employer in an Ineligible Employee class, and subsequently again becomes an Eligible
Employee (as defined in the Plan) before his Normal Retirement Date due to the addition of such
class to the Plan, the following rule shall apply (check one or more as applicable):
(a) ® The Participant's Early Retirement benefit shall be suspended in
accordance with Section 6.06(a)(1) of the Master Plan for as long as the
Participant remains employed.
This rule shall apply to (check one): ® all Retired Participants; ❑ only
the following classes of Retired Participants (must specify):
(b) ❑ The Participant's Early Retirement benefit shall be suspended in
accordance with Section 6.06(a)(1) of the Master Plan. However, the
Participant may begin receiving benefits after he satisfies the
qualifications for Normal Retirement or Alternative Normal Retirement,
as applicable, and after satisfying the minimum age parameters of Section
6.06(a)(3) of the Master Plan, in accordance with Section 6.06(b)(2)(B)(i)
of the Master Plan.
-26—
City of Milton (Amended Effective May 3, 2016)
This rule shall apply to (check one): ❑ all Retired Participants; ❑ only
the following classes of Retired Participants (must specify):
(c) ❑ The Participant's Early Retirement benefit shall continue in
accordance with Section 6.06(b)(2)(B)(ii) of the Master Plan.
This rule shall apply to (check one): ❑ all Retired Participants; ❑ only
the following classes of Retired Participants (must specify):
B. Cost Of Living Adiustment
The Employer may elect to provide for an annual cost -of -living adjustment (COLA) in the
amount of benefits being received by Retired Participants and Beneficiaries, which shall be
calculated and paid in accordance with the terms of the Master Plan. The Employer hereby
elects the following (check one):
® (1) No cost -of -living adjustment.
❑ (2) Variable Annual cost -of -living adjustment not to exceed % (insert
percentage).
❑ (3) Fixed annual cost -of -living adjustment equal to % (insert
percentage).
The above cost -of -living adjustment shall apply with respect to the following Participants (and
their Beneficiaries) (check one):
® All Participants (and their Beneficiaries).
❑ Participants (and their Beneficiaries) who terminate employment
on or after (insert date).
❑ Other (must specify):
The Adjustment Date for the above cost -of -living adjustment shall be (if not specified, the
Adjustment Date shall be January 1):
17. TERMINATION OF EMPLOYMENT BEFORE RETIREMENT;
VESTING
A. Elizible Regular Employees
Subject to the terms and conditions of the Master Plan, a Participant who is an Eligible Regular
Employee and whose employment is terminated for any reason other than death or retirement
shall earn a vested right in his accrued retirement benefit in accordance with the following
schedule (check one):
-27—
City of Milton (Amended Effective May 3, 2016)
❑ No vesting schedule (immediate vesting).
® Cliff Vesting Schedule. Benefits shall be 100% vested after the Participant has a
minimum of 7 years (insert number not to exceed 10) of Total Credited Service.
Benefits remain 0% vested until the Participant satisfies this minimum.
❑ Graduated Vesting Schedule. Benefits shall become vested in accordance with
the following schedule (insert percentages):
COMPLETED YEARS
OF TOTAL CREDITED SERVICE
VESTED PERCENTAGE
1
%
2
%
3
%
4
%
5
%
6
%
7
%
8
%
9
%
10
%
Exceptions: If a vesting schedule other than that specified above applies to a special class(es) of
Regular Employees, the Employer must specify the different vesting schedule below and the
class(es) to whom the different vesting schedule applies.
Regular Employees to whom exception applies (must specify): City Manager.
Vesting Schedule for excepted class (must specify): Immediate Vesting (no vesting
requirement).
B. Elected or Appointed Members of the Governing Authority
Subject to the terms and conditions of the Master Plan, a Participant who is an elected or
appointed member of the Governing Authority or a Municipal Legal Officer shall earn a vested
right in his accrued retirement benefit for Credited Service in such capacity in accordance with
the following schedule (check one):
® Not applicable (elected or appointed members of the Governing Authority are not
permitted to participate in the Plan).
❑ No vesting schedule (immediate vesting).
❑ Other vesting schedule (must specify):
-28—
City of Milton (Amended Effective May 3, 2016)
18. PRE -RETIREMENT DEATH BENEFITS
A. In -Service Death Benefit
Subject to the terms and conditions of the Master Plan, the Employer hereby elects the following
in-service death benefit, to be payable in the event that an eligible Participant's employment with
the Employer is terminated by reason of the Participant's death prior to Retirement (check and
complete one):
(1) ® Auto A Death Benefit. A monthly benefit payable to the Participant's
Pre -Retirement Beneficiary, equal to the decreased monthly retirement benefit
that would have otherwise been payable to the Participant, had he elected a 100%
joint and survivor benefit under Section 7.03 of the Master Plan. In order to be
eligible for this benefit, a Participant must meet the following requirements
(check one):
® The Participant must be vested in a normal retirement benefit.
❑ The Participant must have years (insert number) of Total
Credited Service.
❑ The Participant must be eligible for Early or Normal Retirement.
❑ Other eligibility requirement (must specify):
(2) ❑ Actuarial Reserve Death Benefit. A monthly benefit payable to the Participant's
Pre -Retirement Beneficiary, actuarially equivalent to the reserve required for the
Participant's anticipated Normal Retirement benefit, provided the Participant
meets the following eligibility conditions (check one):
❑ The Participant shall be eligible upon satisfying the eligibility
requirements of Section 8.02(c) of the Master Plan.
❑ The Participant must have years (insert number) of Total Credited
Service.
❑ Other eligibility requirement (must specify):
Imputed Service. For purposes of computing the actuarial reserve death benefit,
the Participant's Total Credited Service shall include (check one):
❑ Total Credited Service accrued prior to the date of the Participant's death.
❑ Total Credited Service accrued prior to the date of the Participant's death,
plus (check one): ❑ one-half ('/2) ❑ (insert other
fraction) of the Service between such date of death and what would
-29—
City of Milton (Amended Effective May 3, 2016)
otherwise have been the Participant's Normal Retirement Date. (See
Master Plan Section 8.02(b) regarding 10 -year cap on additional
Credited Service.)
Minimum In -Service Death Benefit for Vested Employees Equal to Terminated Vested Death
Benefit. Unless otherwise specified under "Exceptions" below, if a Participant's employment is
terminated by reason of the Participant's death prior to Retirement, and if as of the date of death
the Participant is vested but he does not qualify for the in-service death benefit, then the Auto A
Death Benefit will be payable, provided the Auto A Death Benefit is made available to
terminated vested employees under the Adoption Agreement (see "Terminated Vested Death
Benefit" below).
(3) Exceptions: If an in-service death benefit other than that specified above applies
to one or more classes of Participants, the Employer must specify below the death benefit
payable, the class(es) to whom the different death benefit applies, and the eligibility conditions
for said death benefit.
Alternative Death Benefit (must specify formula that complies with definitely determinable
requirements of Treasury Regulations Section 1.401-1(b)(1)(i) and does not violate limits
applicable to governmental plans under Code Sections 401(a)(17) and 415):
Participants to whom alternative death benefit applies (must specify):
Eligibility conditions for alternative death benefit (must specify):
B. Terminated Vested Death Benefit
(1) Complete this Section only if the Employer offers a terminated vested death
benefit. The Employer may elect to provide a terminated vested death benefit, to be payable in
the event that a Participant who is vested dies after termination of employment but before
Retirement benefits commence. Subject to the terms and conditions of the Master Plan, the
Employer hereby elects the following terminated vested death benefit (check one):
® Auto A Death Benefit. A monthly benefit payable to the Participant's
Pre -Retirement Beneficiary, equal to the decreased monthly retirement benefit
that would have otherwise been payable to the Participant had he elected a 100%
joint and survivor benefit under Section 7.03 of the Master Plan.
❑ Accrued Retirement Benefit. A monthly benefit payable to the Participant's
Pre -Retirement Beneficiary which shall be actuarially equivalent to the
Participant's Accrued Normal Retirement Benefit determined as of the date of
death.
(2) Exceptions: If a terminated vested death benefit other than that specified above
applies to one or more classes of Participants, the Employer must specify below the death benefit
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payable, the class(es) to whom the different death benefit applies, and the eligibility conditions
for said death benefit.
Alternative Death Benefit (must specify formula that complies with definitely determinable
requirements of Treasury Regulations Section 1.401-1(b)(1)(i) and does not violate limits
applicable to governmental plans under Code Sections 401(a)(17) and 415):
Participants to whom alternative death benefit applies (must specify):
Eligibility conditions for alternative death benefit (must specify):
19. EMPLOYEE CONTRIBUTIONS
(1) Employee contributions (check one):
❑ Are not required.
❑ Are required in the amount of % (insert percentage) of Earnings for all
Participants.
® Are required in the amount of 3_0 % (insert percentage) of Earnings for
Participants in the following classes (must specify): Eligible Regular Employees
employed on or after April 1, 2007, commencing with the first payroll period
beginning on or after April 1, 2007.
[Repeat above subsection as necessary if more than one contribution rate applies.]
(2) Pre -Tax Treatment of Employee Contributions. If Employee Contributions
are required in Subsection (1) above, an Adopting Employer may elect to "pick up" Employee
Contributions to the Plan in accordance with IRC Section 414(h). In such case, Employee
Contributions shall be made on a pre-tax rather than a post -tax basis, provided the requirements
of IRC Section 414(h) are met. If the Employer elects to pick up Employee Contributions, it is
the Employer's responsibility to ensure that Employee Contributions are paid and reported in
accordance with IRC Section 414(h). The Adopting Employer must not report picked up
contributions as wages subject to federal income tax withholding.
The Employer hereby elects (check one):
® To pick up Employee Contributions. By electing to pick up Employee
Contributions, the Adopting Employer specifies that the contributions, although
designated as Employee Contributions, are being paid by the Employer in lieu of
Employee Contributions. The Adopting Employer confirms that the executor of
this Adoption Agreement is duly authorized to take this action as required to pick
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up contributions. This pick-up of contributions applies prospectively, and it is
evidenced by this contemporaneous written document. On and after the date of
the pick-up of contributions, a Participant does not have a cash or deferred
election right (within the meaning of Treasury Regulation
Section 1.401(k) -1(a)(3)) with respect to the designated Employee Contributions,
which includes not having the option of receiving the amounts directly instead of
having them paid to the Plan.
❑ Not to pick up Employee Contributions.
(3) Interest on Employee Contributions. The Adopting Employer may elect to pay
interest on any refund of Employee Contributions.
❑ Interest shall not be paid.
® Interest shall be paid on a refund of Employee Contributions at a rate established
by GMEBS from time to time.
❑ Other rate of interest (must specify rate, subject to the provisions of
Section 13.06 of the Master Plan Document):
20. MODIFICATION OF THE TERMS OF THE ADOPTION
AGREEMENT
If an Adopting Employer desires to amend any of its elections contained in this Adoption
Agreement (or any Addendum), the Governing Authority by official action must adopt an
amendment of the Adoption Agreement (or any Addendum) or a new Adoption Agreement (or
Addendum) must be adopted and forwarded to the Board for approval. The amendment of the
new Adoption Agreement (or Addendum) is not effective until approved by the Board and other
procedures required by the Plan have been implemented.
The Administrator will timely inform the Adopting Employer of any amendments made by the
Board to the Plan.
21. TERMINATION OF THE ADOPTION AGREEMENT
This Adoption Agreement (and any Addendum) may be terminated only in accordance with the
Plan. The Administrator will inform the Adopting Employer in the event the Board should
decide to discontinue this volume submitter program.
22. EMPLOYER ADOPTION AND AUTHORIZATION FOR
AMENDMENTS
Adoption. The Adopting Employer hereby adopts the terms of the Adoption Agreement and any
Addendum, which is attached hereto and made a part of this ordinance. The Adoption
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Agreement (and, if applicable, the Addendum) sets forth the Employees to be covered by the
Plan, the benefits to be provided by the Adopting Employer under the Plan, and any conditions
imposed by the Adopting Employer with respect to, but not inconsistent with, the Plan. The
Adopting Employer reserves the right to amend its elections under the Adoption Agreement and
any Addendum, so long as the amendment is not inconsistent with the Plan or the Internal
Revenue Code or other applicable law and is approved by the Board of Trustees of GMEBS.
The Adopting Employer acknowledges that it may not be able to rely on the volume submitter
advisory letter if it makes certain elections under the Adoption Agreement or the Addendum.
The Adopting Employer hereby agrees to abide by the Master Plan, Trust Agreement, and rules
and regulations adopted by the Board of Trustees of GMEBS, as each may be amended from
time to time, in all matters pertaining to the operation and administration of the Plan. It is
intended that the Act creating the Board of Trustees of GMEBS, this Plan, and the rules and
regulations of the Board are to be construed in harmony with each other. In the event of a
conflict between the provisions of any of the foregoing, they shall govern in the following order:
(1) The Act creating the Board of Trustees of The Georgia Municipal Employees'
Benefit System, O.C.G.A. Section 47-5-1 et seq. (a copy of which is included in
the Appendix to the Master Defined Benefit Plan Document) and any other
applicable provisions of O.C.G.A. Title 47;
(2) The Master Defined Benefit Plan Document and Trust Agreement;
(3) This Ordinance and Adoption Agreement (and any Addendum); and
(4) The rules and regulations of the Board.
In the event that any section, subsection, sentence, clause or phrase of this Plan shall be declared
or adjudged invalid or unconstitutional, such adjudication shall in no manner affect the
previously existing provisions or the other section or sections, subsections, sentences, clauses or
phrases of this Plan, which shall remain in full force and effect, as if the section, subsection,
sentence, clause or phrase so declared or adjudicated invalid or unconstitutional were not
originally a part hereof. The Governing Authority hereby declares that it would have passed the
remaining parts of this Plan or retained the previously existing provisions if it had known that
such part or parts hereof would be declared or adjudicated invalid or unconstitutional.
This Adoption Agreement (and any Addendum) may only be used in conjunction with Georgia
Municipal Employees Benefit System Master Defined Benefit Retirement Plan Document
approved by the Internal Revenue Service under advisory letter dated
, 20_. The Adopting Employer understands that failure to properly complete
this Adoption Agreement (or any Addendum), or to operate and maintain the Plan and Trust in
accordance with the terms of the completed Adoption Agreement (and any Addendum), Master
Plan Document and Trust, may result in disqualification of the Adopting Employer's Plan under
the Internal Revenue Code. Inquiries regarding the adoption of the Plan, the meaning of Plan
provisions, or the effect of the IRS advisory letter should be directed to the Administrator. The
Administrator is Georgia Municipal Employees Benefit System, with its primary business offices
located at: 201 Pryor Street, SW, Atlanta, Georgia, 30303. The business telephone number is:
(404) 688-0472. The primary person to contact is: GMEBS Legal Counsel.
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City of Milton (Amended Effective May 3, 2016)
Authorization for Amendments. Effective on and after February 17, 2005, the Adopting
Employer hereby authorizes Ice Miller LLP, Legal Counsel, the volume submitter practitioner
who sponsors the Plan on behalf of GMEBS, to prepare amendments to the Plan, for approval by
the Board, on its behalf as provided under Revenue Procedure 2005-16, as superseded by
Revenue Procedure 2011-49, and Announcement 2005-37. Employer notice and signature
requirements were met for the Adopting Employer before the effective date of February 17,
2005. The Adopting Employer understands that the implementing amendment reads as follows:
On and after February 17, 2005, the Board delegates to the Practitioner the
authority to advise and prepare amendments to the Plan, for approval by the
Board, on behalf of all Adopting Employers, including those Adopting Employers
who have adopted the Plan prior to the January 1, 2013, restatement of the Plan,
for changes in the Code, the regulations thereunder, revenue rulings, other
statements published by Internal Revenue Service, including model, sample, or
other required good faith amendments (but only if their adoption will not cause
such Plan to be individually designed), and for corrections of prior approved
plans. These amendments shall be applied to all Adopting Employers. Employer
notice and signature requirements have been met for all Adopting Employers
before the effective date of February 17, 2005. In any event, any amendment
prepared by the Practitioner and approved by the Board will be provided by the
Administrator to Adopting Employers.
Notwithstanding the foregoing paragraph, no amendment to the Plan shall
be prepared on behalf of any Adopting Employer as of either:
the date the Internal Revenue Service requires the Adopting
Employer to file Form 5300 as an individually designed plan as a
result of an amendment by the Adopting Employer to incorporate a
type of Plan not allowable in a volume submitter plan as described
in Revenue Procedure 2011-49; or
as of the date the Plan is otherwise considered an individually
designed plan due to the nature and extent of the amendments.
If the Adopting Employer is required to obtain a determination letter for
any reason in order to maintain reliance on the advisory letter, the Practitioner's
authority to amend the Plan on behalf of the Adopting Employer is conditioned on
the Plan receiving a favorable determination letter.
The Adopting Employer further understands that, if it does not give its authorization
hereunder or, in the alternative, adopt another pre -approved plan, its Plan will become an
individually designed plan and will not be able to rely on the volume submitter advisory letter.
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City of Milton (Amended Effective May 3, 2016)
AN ORDINANCE (continued from page 1)
Section 2. Except as otherwise specifically required by law or by the terms of the Master
Plan or Adoption Agreement (or any Addendum), the rights and obligations under the Plan with
respect to persons whose employment with the City was terminated or who vacated his office
with the City for any reason whatsoever prior to the effective date of this Ordinance are fixed
and shall be governed by such Plan, if any, as it existed and was in effect at the time of such
termination.
Section 3. The effective date of this Ordinance shall be May 3, 2016.
Section 4. All Ordinances and parts of ordinances in conflict herewith are expressly
repealed.
Approved by the Mayor and Council of the City of Milton, Georgia this Xnd day of
M #,y , 201.Lo__.
Attest:
'�� /'?
City Clerk
(SEAL)
Approved:
City Attorney
The terms of the foregoing Adoption Agreement are approved by the Board of Trustees
of Georgia Municipal Employees Benefit System.
IN WITNESS WHEREOF, the Board of Trustees of Georgia Municipal Employees
Bene tem has caus its Seal and the signatures of its duly authorized officers to be affixed
this day of , 20].
(SEAL)
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City of Milton (Amended Effective May 3, 2016)
Board of Trustees
Georgia Municipal Employees
B nefit System
Secretary