HomeMy WebLinkAboutOrdinances 24-11-569 - 11/18/2024 - Milton AA Addendum SCP Add GMEBS Defined Benefit Retirement Plan (Restated Eff 11-18-2024)City of Milton (2023 - 2025 Restatement)
I.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) Basic 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) Basic Plan Document, and the GMEBS Trust
Agreement.
Ordinance continued on page 38
STATE OF GEORGIACOUNTY OF FULTON ORDINANCE NO._______________24-11-569
GEORGIA MUNICIPAL EMPLOYEES
BENEFIT SYSTEM
BASIC DEFINED BENEFIT RETIREMENT PLAN
DOCUMENT
AMENDED AND RESTATED
Third Six-Year Cycle, 2020 Cumulative List
Administered by:
Georgia Municipal Employees Benefit System
201 Pryor Street, SW
Atlanta, Georgia 30303
Telephone: 404-688-0472
Facsimile: 678-686-6289
- i -
TABLE OF CONTENTS
Page
ARTICLE I. PURPOSE OF PLAN .......................................................................................1
ARTICLE II. DEFINITIONS .................................................................................................2
Section 2.01. "Accrued Benefit" .............................................................................................3
Section 2.02. "Actuarial Equivalent" ......................................................................................3
Section 2.03. "Actuary" ..........................................................................................................3
Section 2.04. "Addendum" .....................................................................................................3
Section 2.05. "Adjustment Date" ............................................................................................3
Section 2.06. "Administrator" .................................................................................................3
Section 2.07. "Adopting Employer" .......................................................................................3
Section 2.08. "Adoption Agreement" .....................................................................................3
Section 2.09. "Applicable Form" ............................................................................................4
Section 2.10. "Board of Trustees" or "Board" ........................................................................4
Section 2.11. "Bona Fide Separation from Service" ...............................................................4
Section 2.12. "Child" or "Children" ........................................................................................4
Section 2.13. "Code" ...............................................................................................................5
Section 2.14. "Code Section 415(d) Cost of Living Adjustment" ..........................................5
Section 2.15. "Contract" .........................................................................................................5
Section 2.16. "Contributions" .................................................................................................5
Section 2.17. "Cost of Living Base Figure" ...........................................................................5
Section 2.18. "Covered Compensation AIME ........................................................................6
Section 2.19. "Covered Compensation Dynamic Break Point" ..............................................6
Section 2.20. "Covered Compensation Table Break Point" ...................................................6
Section 2.21. "Current Average Cost-of-Living Index Figure" ..............................................7
Section 2.22. "Default Beneficiary" .......................................................................................7
Section 2.23. "Disability" .......................................................................................................7
Section 2.24. "Disability Retirement Date" ............................................................................9
Section 2.25. "Early Retirement Date" .................................................................................10
Section 2.26. "Earnings" .......................................................................................................10
Section 2.27. "Effective Date" ..............................................................................................11
Section 2.28. "Eligible Employee" .......................................................................................11
Section 2.29. "Eligible Regular Employee" .........................................................................11
Section 2.30. "Employee" .....................................................................................................11
Section 2.31. "Employer" .....................................................................................................11
Section 2.32. "Enrollment Date"...........................................................................................12
Section 2.33. "FMLA" ..........................................................................................................12
Section 2.34. "Firefighter" ....................................................................................................12
Section 2.35. "Final Average Earnings" ...............................................................................12
Section 2.36. "Governing Authority" ...................................................................................13
Section 2.37. "In-Service Distribution" ................................................................................13
Section 2.38. "Ineligible Employee".....................................................................................13
Section 2.39. "Interest" .........................................................................................................13
-ii -
Section 2.40. "Investment Fund" or "GMEBS Retirement Trust Fund" ..............................14
Section 2.41. "Late Retirement Date" ...................................................................................14
Section 2.42. "Military Service" ...........................................................................................14
Section 2.43. "Monthly Retirement Benefit" ........................................................................14
Section 2.44. "Municipal Legal Officer" ..............................................................................14
Section 2.45. "Normal Retirement Date" or "Alternative Normal Retirement Date" ..........14
Section 2.46. "Participant" or "Participating Employee" .....................................................15
Section 2.47. "Pension Committee" ......................................................................................15
Section 2.48. "Plan" ..............................................................................................................15
Section 2.49. "Plan Representative" .....................................................................................15
Section 2.50. "Plan Year" .....................................................................................................15
Section 2.51. "Police Officer"...............................................................................................15
Section 2.52. "Post-Retirement Beneficiary" .......................................................................16
Section 2.53. "Primary Pre-Retirement Beneficiary" ..........................................................16
Section 2.54. "Provider" ....................................................................................................... 16
Section 2.55. "Regular Employee" .......................................................................................16
Section 2.56. "Resolution" ....................................................................................................16
Section 2.57. "Retired Participant" .......................................................................................16
Section 2.58. "Retirement" or "Retires" ...............................................................................16
Section 2.59. "Retirement System," "System," or "GMEBS" ..............................................16
Section 2.60. "Secondary Pre-Retirement Beneficiary" ....................................................,,.16
Section 2.61. "Section" .........................................................................................................17
Section 2.62. "Spouse" .........................................................................................................17
Section 2.63. "Terminated Vested Participant" ....................................................................17
Section 2.64. "Termination," "Terminate Employment," "Termination of
Employment," or "Terminated" ......................................................................17
Section 2.65. "Trust Fund" ...................................................................................................18
Section 2.66. "Vested," "Vesting," "Vested Right," or "Vested Benefit" ............................18
ARTICLE III. SERVICE ........................................................................................................18
Section 3.01. "Current Credited Service" .............................................................................18
Section 3.02. "USERRA Military Service Credit .................................................................19
Section 3.03. "Credited Past Service" ...................................................................................22
Section 3.04. "Prior Governmental Service" ........................................................................22
Section 3.05. "Prior Military Service" ..................................................................................22
Section 3.06. "Service" .........................................................................................................22
Section 3.07. "Total Credited Service" .................................................................................23
ARTICLE IV. ELIGIBILITY, QUALIFICATION AND PARTICIPATION ....................,,,.24
Section 4.01. Classes of Eligible Employees........................................................................24
Section 4.02. Qualifications for Participation .......................................................................24
Section 4.03. Establishing Participation in the Plan .............................................................29
Section 4.04. Change in Employment Status........................................................................31
Section 4.05. Participant Leaves of Absence ........................................................................32
Section 4.06. Non-Vested Participant Breaks in Service .....................................................33
-iii -
ARTICLE V. RETIREMENT ELIGIBILITY ......................................................................36
ARTICLE VI. RETIREMENT BENEFITS ...........................................................................37
Section 6.01. Normal Retirement Benefit .............................................................................37
Section 6.02. Early Retirement Benefit ................................................................................38
Section 6.03. Late Retirement Benefit ..................................................................................39
Section 6.04. Disability Benefit ............................................................................................40
Section 6.05. Cost of Living Adjustment .............................................................................44
Section 6.06. In-Service Distribution; Suspension of Benefits Following Return to
Service ............................................................................................................45
ARTICLE VII. OPTIONAL FORMS OF RETIREMENT INCOME.....................................59
Section 7.01. Standard Benefit Payment Form; Other Payment Options .............................59
Section 7.02. Designation of Post-Retirement Beneficiary ..................................................60
Section 7.03. Description of Options ....................................................................................60
Section 7.04. Cancellation of Election .................................................................................64
Section 7.05. Rule for Small Benefits ..................................................................................64
Section 7.06. Distributions ...................................................................................................65
Section 7.07. Compliance with Internal Revenue Section 401(a)(9) ...................................65
Section 7.08. Compliance with Internal Revenue Section 415 ............................................65
ARTICLE VIII. DEATH BENEFITS .......................................................................................66
Section 8.01. Death in Service Prior to Retirement ..............................................................66
Section 8.02. Actuarial Reserve In-Service Death Benefit ...................................................66
Section 8.03. Auto A In-Service Death Benefit ...................................................................67
Section 8.04. Designation of Beneficiary .............................................................................70
Section 8.05. Change of Beneficiary ....................................................................................71
Section 8.06. Auto A In-Service Pre-Retirement Death Benefit; Default
Beneficiary; Payment to Surviving Spouse or to Estate Where Benefit
Not Payable to Designated Primary or Secondary Pre-Retirement
Beneficiary ......................................................................................................71
Section 8.07. Actuarial Reserve In-Service Pre-Retirement Death Benefit; Payment
to Surviving Spouse or to Estate Where Benefit Not Payable to
Designated Primary or Secondary Pre-Retirement Beneficiary .....................72
Section 8.08. Terminated Vested Death Benefits .................................................................73
Section 8.09. Terminated Vested Auto A Death Benefit ......................................................74
Section 8.10. Accrued Retirement Benefit ...........................................................................77
Section 8.11. Designation of Terminated Vested Pre-Retirement Beneficiary ....................79
Section 8.12. Participant Death After Retirement Benefit Commencement ........................79
ARTICLE IX. TERMINATION BEFORE RETIREMENT; VESTING ...............................81
Section 9.01. Vesting Requirement for Deferred Retirement Benefit ..................................81
Section 9.02. Termination of Tenure of Office Before Retirement ......................................82
Section 9.03. Immediate Vesting in Disability Retirement.. .................................................83
Section 9.04. Involuntary Termination Without Cause...... ..................................................83
Section 9.05. Portability between Adopting Employers .......................................................84
.
-iv -
Section 9.06. Forfeiture of Benefits for Certain Crimes .......................................................85
Section 9.07. Forfeitures .......................................................................................................86
ARTICLE X. DISTRIBUTION AND ROLLOVER RULES ...............................................89
Section 10.01. Distribution Rules Imposed by Federal Law ..................................................89
Section 10.02. Rollover of Distributions ................................................................................93
Section 10.03. Acceptance of Eligible Rollover Distributions ...............................................95
Section 10.04. Acceptance of Trustee-to-Trustee Transfers ..................................................96
ARTICLE XI. LIMITATIONS ON BENEFITS ....................................................................96
Section 11.01. Effective Date .................................................................................................96
Section 11.02. Limitation on Annual Benefit .........................................................................96
Section 11.03. Limitation on Annual Additions ...................................................................106
Section 11.04. Code Section 415(e) Limits ..........................................................................109
Section 11.05. Limitations on Service Credit Purchases ......................................................109
Section 11.06. Interpretation of this Article .........................................................................113
ARTICLE XII. ACTUARIAL EQUIVALENT CONVERSION TABLES ..........................113
Section 12.01. Early Retirement Reduction Table ...............................................................113
Section 12.02. Option B Tables ............................................................................................114
Section 12.03. Option C Table .............................................................................................117
Section 12.04. Life Annuity Factors to be Used in Computing Actuarial Reserve
Death Benefit ................................................................................................118
Section 12.05. Late Retirement Actuarial Increase Factors .................................................119
Section 12.06. "Offset Calculations"; Other Annuity Forms................................................120
Section 12.07. Lump Sum Payments ....................................................................................122
ARTICLE XIII. CONTRIBUTIONS ......................................................................................122
Section 13.01. Adopting Employer Contributions ...............................................................122
Section 13.02. Employee Contributions ...............................................................................123
Section 13.03. Withdrawal of Employee Contributions .......................................................123
Section 13.04. Cessation of Contributions Without Penalty ................................................126
Section 13.05. Continued Contributions During Leave of Absence ....................................126
Section 13.06. Return of Contributions Upon Failure to Exhaust ........................................126
ARTICLE XIV. PENSION COMMITTEE .............................................................................129
Section 14.01. Creation and Composition ............................................................................129
Section 14.02. Responsibilities .............................................................................................129
Section 14.03. Secretary .......................................................................................................132
Section 14.04. Legal Assistance ...........................................................................................132
Section 14.05. Plan Representative ......................................................................................132
ARTICLE XV. BOARD OF TRUSTEES .............................................................................133
Section 15.01. Definitions ....................................................................................................133
Section 15.02. Powers ...........................................................................................................133
Section 15.03. Composition and Election .............................................................................133
-v -
Section 15.04. Officers .........................................................................................................133
Section 15.05. Notice of Elections .......................................................................................133
Section 15.06. Voting ...........................................................................................................134
Section 15.07. Voting Representative for the Adopting Employer ......................................134
Section 15.08. Qualified Public Accountant .........................................................................134
Section 15.09. Fiduciary Insurance ......................................................................................135
ARTICLE XVI. GMEBS TRUST AGREEMENT .................................................................135
Section 16.01. General Provisions ........................................................................................135
Section 16.02. Group Trust Participation .............................................................................135
ARTICLE XVII. CLAIMS AND LITIGATION ......................................................................136
Section 17.01. Disputes ........................................................................................................136
Section 17.02. Disputes involving Federal or State Law Compliance .................................137
Section 17.03. Failure to Act ................................................................................................137
ARTICLE XVIII. AMENDMENT AND TERMINATION ......................................................137
Section 18.01. Amendment of the Plan by an Adopting Employer ......................................137
Section 18.02. Amendment of Plan by GMEBS ..................................................................138
Section 18.03. Termination by Adopting Employer .............................................................140
Section 18.04. Amendment of the Plan to Transfer Assets; Termination of Contract .........143
Section 18.05. Involuntary Termination ...............................................................................147
Section 18.06. Termination of the Basic Plan Document by the Board ..............................151
ARTICLE XIX. NON-ALIENATION OF BENEFITS ..........................................................151
ARTICLE XX. MISCELLANEOUS .....................................................................................152
Section 20.01. Construction ..................................................................................................152
Section 20.02. Non-Diversion ..............................................................................................154
Section 20.03. Legally Incompetent; Power of Attorney .....................................................154
Section 20.04. Benefits Supported Only by Trust Fund .......................................................155
Section 20.05. Non-Discrimination ......................................................................................155
Section 20.06. Limitation of Liability; Legal Actions ..........................................................155
Section 20.07. Claims ...........................................................................................................156
Section 20.08. Errors in Benefits ..........................................................................................156
Section 20.09. Notice ............................................................................................................161
Section 20.10. Right of Recovery .........................................................................................161
Section 20.11. Evidence of Action .......................................................................................161
Section 20.12. Reliance ........................................................................................................162
Section 20.13. Information to Administrator ........................................................................162
Section 20.14. Participant Data to Administrator .................................................................162
Section 20.15. Treatment of Vacated Court Orders .............................................................162
Section 20.16. Entire Plan ....................................................................................................163
APPENDIX – REFERENCED SECTIONS OF O.C.G.A.
BASIC PLAN DOCUMENT
ARTICLE I.
PURPOSE OF PLAN
The Georgia Municipal Employees Retirement System Plan ("Plan") is hereby amended
and restated for the Third Six-Year Cycle, in compliance with the 2020 Cumulative List,
pursuant to a resolution of the Board of Trustees of the Georgia Municipal Employees Benefit
System. The Plan is a governmental qualified defined benefit plan under Internal Revenue Code
Sections 401(a) and 414(d) and is intended to be adopted by Employers in Georgia.
The Plan is intended to comply with certain provisions of the Protecting Americans from
Tax Hikes Act of 2015 ("PATH Act"); as well as the additional guidance included in the 2020
Cumulative List under Internal Revenue Service ("IRS") Notice 2020-14 to the extent applicable
to the Plan. Except as otherwise specifically provided herein, the Plan establishes the rights and
obligations with respect to individuals who are Employees on and after such dates, as applicable,
and to transactions under the Plan on and after such dates, as applicable. Except as otherwise
specifically provided herein, the rights and benefits, if any, of individuals who are not
Employees on or after such dates, as applicable, shall be determined in accordance with the
terms and provisions of the Plan that were in effect on the date that their employment terminated.
Any Municipal Corporation accepted by the Board as an Adopting Employer may
become a party to the Plan as of the first day of any Plan Year, or such other date specified by
the Adopting Employer, by delivering to the Administrator an appropriate Ordinance of the
Governing Authority adopting the Plan. Any other Employer accepted by the Board as an
Adopting Employer may become a party to the Plan as of the first day of any Plan Year, or such
other date specified by the Adopting Employer, by delivering to the Administrator an appropriate
resolution or ordinance (as applicable) of the Governing Authority adopting the Plan. With the
- 2 -
consent of the Board, such organization shall become an Adopting Employer hereunder, as of the
specified date, and shall be subject to the terms and provisions of the Plan as then in effect and
thereafter amended.
The Plan document consists of this Basic Plan Document, the Adoption Agreement, and
any Addendum of each Employer and any amendments to the Basic Plan Document, the
Adoption Agreement, and any Addendum. The Plan, generally effective as of the date set forth
in the Adoption Agreement for each Employer, except as otherwise specifically provided herein,
is established for the purpose of providing retirement and other benefits to Participants.
This Plan is intended to be a pre-approved plan, to be used with a completed Adoption
Agreement.
ARTICLE II.
DEFINITIONS
This Article covers all generally applicable definitions used in this Plan, except for
definitions related to service, which are in Article III. Except as otherwise provided in the
Employer's Adoption Agreement or any Addendum, the definition of terms contained in this
Article II and Article III shall govern the meaning of such terms used in the Adoption Agreement.
When the initial letter of a word or phrase is capitalized herein, the meaning of such word or
phrase shall be as follows, unless a different meaning is plainly required by the content:
- 3 -
Section 2.01. "Accrued Benefit" shall mean, as of any date, the Normal Retirement
benefit payable to a Participant at the Participant's Normal Retirement Date computed in
accordance with the provisions of Article VI and the Adoption Agreement, based upon the
Participant's Total Credited Service and Final Average Earnings (if applicable) as of the date that
the Participant's Accrued Benefit is being determined.
Section 2.02. "Actuarial Equivalent" shall mean a benefit of approximately equal
value when computed on the basis of the actuarial assumptions contained in Article XII.
Section 2.03. "Actuary" shall mean an individual, or firm, appointed or approved by
the Board of Trustees to perform actuarial calculations necessary in the funding of the Plan.
Section 2.04. "Addendum" means any Addendum to an Adoption Agreement
submitted to the IRS for review under the pre-approved program and entered into by an
Adopting Employer.
Section 2.05. "Adjustment Date" means January 1 or such other date in a calendar
year on which a Cost of Living Adjustment is applied to a Retired Participant's or Post-
Retirement Beneficiary's benefit pursuant to an Adopting Employer's Adoption Agreement or
any Addendum thereto.
Section 2.06. "Administrator" shall mean the Georgia Municipal Employees Benefit
System or its designee.
Section 2.07. "Adopting Employer" shall mean an Employer who adopts this Plan
through the adoption of the Adoption Agreement.
Section 2.08. "Adoption Agreement" shall mean the Adoption Agreement adopted
by an Adopting Employer, which Adoption Agreement contains certain terms of the Plan, and
- 4 -
whenever applicable shall include any Addendum amending provisions of the Adoption
Agreement.
Section 2.09. "Applicable Form" shall mean the appropriate form as designated and
furnished by the Administrator to make the election or provide the notice required by the Plan.
In those circumstances where a written election or consent is not required by the Plan or the
Code, the Administrator may prescribe an oral, electronic, or telephonic form in lieu of or in
addition to a written form.
Section 2.10. "Board of Trustees" or "Board" shall mean the Board of Trustees of
the Georgia Municipal Employees Benefit System.
Section 2.11. "Bona Fide Separation from Service" shall mean, with respect to a
Participant who Terminates employment on or after September 26, 2014, the Participant
Terminated Employment with the Participant's Adopting Employer without an agreement for re-
employment and did not return to service with the Adopting Employer as an Eligible Employee,
Ineligible Employee, or independent contractor or in any other capacity, except as described
below, for at least six (6) calendar months after the date of said Termination of Employment,
provided that the Employer shall be required to provide any information to GMEBS necessary to
verify an Employee's Bona Fide Separation from Service. A Bona Fide Separation from Service
shall alternatively mean that an Eligible Employee Terminated Employment with the Adopting
Employer and returned to service with the Adopting Employer as an elected or appointed
member of the Governing Authority, even if such Employee did not incur a six (6) month break
in service prior to becoming an elected or appointed member of the Governing Authority.
Section 2.12. "Child" or "Children" shall mean any natural or adopted child of the
Participant or Terminated Vested Participant, as applicable, who is younger than age twenty-two
- 5 -
(22) as of the date of the Participant's or Terminated Vested Participant's death. The term
"adopted child" shall include any child who is legally adopted by the Participant and any child
who is a member of the Participant's household if placed with the Participant by an authorized
placement agency for legal adoption by the Participant. The term "child" does not include a
foster child.
Section 2.13. "Code" shall mean the Internal Revenue Code of 1986, as applicable to
governmental plans, as amended from time to time, and the Internal Revenue Code of 1954, as
applicable to governmental plans.
Section 2.14. "Code Section 415(d) Cost of Living Adjustment" shall mean the cost
of living adjustment prescribed by the Secretary of the Treasury under Code Section 415(d) for
any applicable year.
Section 2.15. "Contract" shall mean the entire contents of the Ordinance or
Resolution adopting this Plan, the Employer's Adoption Agreement and any Addendum thereto,
the Basic Plan Document, the GMEBS Trust Agreement, and any amendments made hereafter.
Section 2.16. "Contributions" shall mean payments made by Employers (and
Employees, if applicable) to GMEBS to provide the benefits specified in the Plan.
Section 2.17. "Cost of Living Base Figure" shall mean, with respect to Employers
who elect in the Adoption Agreement to provide cost-of-living adjustments in benefits received
under the Plan, the Consumer Price Index figure (All Urban Consumers Table – All Items,
1982-1984 Base Period) issued by the Bureau of Labor Statistics of the United States
Department of Labor for the month that is 14 months prior to the month of the Adjustment Date
used to determine the Current Cost-of-Living Index Figure. However, if a Participant or
Beneficiary has been drawing benefits for less than twelve (12) months, the Cost-of-Living Base
- 6 -
Figure shall mean the Consumer Price Index figure (All Urban Consumers Table – All Items,
1982-1984 Base Period) issued by the Bureau of Labor Statistics of the United States
Department of Labor for the month that is two (2) months prior to the month when benefit
payments commenced.
Section 2.18. "Covered Compensation AIME." shall mean the portion of the
Average Indexed Monthly Earnings (A.I.M.E.), annualized, as defined by the December 1977
amendments to the federal Old-Age, Survivors, and Disability Insurance (O.A.S.D.I.), not
subject to the fifteen percent (15%) benefit rate as defined in the amendments and as adjusted to
the year of termination of employment as provided for in said amendments.
Section 2.19. "Covered Compensation Dynamic Break Point" shall mean, for any
calendar year, the average of the maximum amount of earnings for which taxes are payable
under the Social Security Act during the period of calendar years: (1) beginning with the later of
1959 or the calendar year thirty-five (35) years before the year for which Social Security
Covered Compensation is being computed, and (2) ending with the calendar year preceding the
year for which Social Security Compensation is being computed. The amount of Covered
Compensation for a Participant shall be determined as of the date of the Participant's most recent
Termination or the Participant's date of death, whichever is applicable.
Section 2.20. "Covered Compensation Table Break Point" shall mean the amount
listed in the table below, opposite the year of birth of the Participant:
Year of
Birth
Covered
Compensation
Amount
Year of
Birth
Covered
Compensation
Amount
Year of Birth
Covered
Compensation
Amount
1903
or earlier $4,944 1916 $6,432 1929 $6,900
1904 5,160 1917 6,480 1930 6,984
- 7 -
1905 5,352 1918 6,528 1931 7,080
1906 5,520 1919 6,576 1932 7,176
1907 5,652 1920 6,612 1933 7,260
1908 5,784 1921 6,660 1934 7,332
1909 5,892 1922 6,696 1935 7,416
1910 6,000 1923 6,720 1936 7,500
1911 6,084 1924 6,756 1937 7,572
1912 6,168 1925 6,792 1938 7,656
1913 6,240 1926 6,816 1939 7,728
1914 6,312 1927 6,840 1940 7,764
1915 6,372 1928 6,864 1941
or later
7,800
Section 2.21. "Current Average Cost-of-Living Index Figure" shall mean, with
respect to Employers who elect in the Adoption Agreement to provide cost-of-living adjustments
in benefits received under the Plan, the Consumer Price Index figure (All Urban Consumers
Table – All Items, 1982-1984 Base Period) that was most recently issued by the Bureau of Labor
Statistics of the United States Department of Labor for the month that is two months prior to the
month of the Adjustment Date.
Section 2.22. "Default Beneficiary" shall mean, with respect to a Participant who
dies prior to July 1, 2015, the person(s) or entity to whom a pre-retirement death benefit is
payable in the absence of a beneficiary designation by the Participant or in the event there is no
designated Primary or Secondary Pre-Retirement Beneficiary to whom a pre-retirement death
benefit is payable, determined in accordance with and subject to Section 8.06.
Section 2.23. "Disability" shall mean, with respect to those Adopting Employers who
elect in the Adoption Agreement to provide disability retirement benefits and unless otherwise
provided in an Addendum to the Adoption Agreement, the following:
(a)A physical or mental disability of a Participant who because of such disability
becomes entitled to receive disability insurance benefits under the Federal Social Security Act, as
amended, provided that the following conditions are satisfied:
- 8 -
(1)Such disability commenced on a specified date during the period of the
Participant's employment with the Adopting Employer, as evidenced by a Social Security
Administration (SSA) disability award submitted with the Participant's disability
retirement application, reflecting a disability onset date on or before the Participant's
Termination date; provided, however, that in the event a Participant has filed more than
one disability application with the SSA and the SSA disability award reflects a disability
onset date after the Participant's Termination date, and where due to SSA administrative
res judicata rules the disability onset date reflected in the SSA disability award
immediately follows the date that a prior SSA disability award was denied, then the
Administrator may consider other documents submitted with the Participant's application
for a SSA disability award to determine the disability onset date if the Participant
provides such documents to the Administrator and the Administrator deems such
documents sufficient to establish that the disability onset date is on or before the
Participant's Termination date;
(2)In no event will the disability onset date be earlier than the latest disability
onset date alleged by the Participant in the Participant's SSA disability application(s); and
(3)The Participant's disability was not intentionally self-inflicted, incurred in
the commission of a felonious enterprise, or the result of the abuse or illegal use of
narcotics or drugs; or
(b)A Participant who is not disabled in accordance with the definition under
subsection (a) above solely because the Participant lacks the quarters of Social Security
coverage required under the Federal Social Security Act, as amended, shall qualify for Disability
if the Pension Committee determines that the Participant is permanently disabled on the basis of
- 9 -
a certificate signed by at least two (2) physicians, (one physician selected and paid by the
disabled Participant and one selected and paid by the Employer) stating that:
(1)The Participant is permanently disabled as defined in Internal Revenue
Code Section 72(m); and
(2)Such disability commenced on a specified date during the period of the
Participant's employment with the Adopting Employer; and
(3)Such disability was not intentionally self-inflicted, incurred in the
commission of a felonious enterprise, or the result of the abuse or illegal use of narcotics
or drugs.
(c)Neither the Adopting Employer nor the Administrator is required to
independently investigate or confirm the cause(es) of a Participant's disability.
Section 2.24. "Disability Retirement Date" shall mean, with respect to those
Adopting Employers who elect to provide Disability retirement benefits in the Adoption
Agreement and with respect to Participants who Terminate Employment due to Disability, the
first day of the first calendar month coinciding with or next following: (a) the date on which a
Participant becomes entitled to receive a monthly disability insurance benefit under the Federal
Social Security Act, as amended; (b) the date on which the Participant's Disability is determined
by the Pension Committee to have commenced, in the case of Disability determinations made by
the Pension Committee pursuant to Section 2.23(b); or (c) the date determined in accordance
with the provisions of an Employer's General Addendum, as applicable. However, in no event
will the Disability Retirement Date be earlier than the first day of the calendar month coinciding
with or next following the date of the Participant's Termination of Employment as a result of
Disability.
- 10 -
Section 2.25. "Early Retirement Date" shall mean the first day of the month
coinciding with or next following the day a Participant qualifies for Early Retirement as
specified in the Adoption Agreement, as of which the Participant actually Retires.
Section 2.26. "Earnings" shall mean, unless otherwise specified by the Employer in
an Addendum to the Adoption Agreement, the total gross earnings paid to a Participant by the
Employer, as reflected in the Employer's payroll records and shall include salary, wages, bonuses,
overtime, and compensation for unused sick, vacation, paid-time-off, personal, or any other paid
leave. Earnings shall not be reduced for compensation deferred pursuant to Code Sections
401(k), 403(b) or 457, compensation redirected pursuant to Code Section 125 or 132(f)(4), or
contributions picked-up under Code Section 414(h) during the Plan Year. Unless otherwise
specified in an Addendum to the Adoption Agreement, Earnings shall not include perquisites or
allowances for a car or house rent, or compensation for severance pay.
For any Plan Year beginning after December 31, 2001, the annual earnings of a
Participant for any year taken into account under the Plan shall not exceed Two Hundred
Thousand Dollars ($200,000) (as increased by the Cost of Living Adjustment for the year,
pursuant to Code Section 401(a)(17)(B)). Notwithstanding the provisions of this paragraph, in
determining benefit accruals in Plan Years beginning after December 31, 2001, the limit
hereunder for determination periods beginning before January 1, 2002, shall be Two Hundred
Thousand Dollars ($200,000).
Annual earnings means Earnings during the Plan Year or such other consecutive twelve
(12) month period over which Earnings are otherwise determined under the Plan (the
determination period). The Cost of Living Adjustment for a calendar year applies to annual
earnings for the determination period that begins with or within such a calendar year. If a short
- 11 -
Plan Year occurs, the annual earnings limit is an amount equal to the otherwise applicable annual
earnings limit multiplied by a fraction, the numerator of which is the number of months in the
short Plan Year, and the denominator of which is twelve (12).
Section 2.27. "Effective Date" shall mean the original effective date of the Adopting
Employer's GMEBS-administered defined benefit plan as specified in the Adoption Agreement.
Section 2.28. "Eligible Employee" shall mean any Employee who is designated as an
Eligible Employee in the Adoption Agreement and who satisfies any eligibility conditions
applicable to the class of Eligible Employees to which the Employee belongs.
Section 2.29. "Eligible Regular Employee" shall mean any Regular Employee who
satisfies the minimum hour and other eligibility conditions applicable to Regular Employees in
the Employer's Adoption Agreement.
Section 2.30. "Employee" shall mean any person who is regularly employed in the
services of the Employer as an employee and shall include elected or appointed members of the
Governing Authority and Municipal Legal Officers if they are included as Eligible Employees in
the Adoption Agreement. However, notwithstanding any other provision of the Plan to the
contrary, the term "Employee" does not include: (a) an individual who is a nonresident alien and
who receives no earned income (within the meaning of Code Section 911(d)(2)) from an
Employer which constitutes income from sources within the United States within the meaning of
Code Section 861(a)(3); (b) a leased employee; or (c) any person treated in good faith by an
Employer as an independent contractor, regardless of whether such person is later determined to
be a common law employee for tax purposes.
Section 2.31. "Employer" shall mean an Employer as defined in O.C.G.A.
§ 47-5-2(9) (a copy of which is included in the Appendix hereto). No employer which is not
- 12 -
permitted to participate in a qualified governmental pension plan as defined in Code Section
401(a) and 414(d) shall be permitted to participate in this Plan.
Section 2.32. "Enrollment Date" shall mean the date that an Eligible Employee first
becomes a Participant under this Plan.
Section 2.33. "FMLA" shall mean the Family and Medical Leave Act of 1993, as
amended from time to time.
Section 2.34. "Firefighter" shall mean an Eligible Regular Employee of the Adopting
Employer who is either certified as a firefighter pursuant to O.C.G.A. § 25-4-2(4) (a copy of
which is included in the Appendix hereto) or who would otherwise be required to be certified as
a firefighter but who is exempt pursuant to O.C.G.A. § 25-4-12 (a copy of which is included in
the Appendix hereto).
Section 2.35. "Final Average Earnings" shall mean, unless otherwise elected in an
Addendum to the Adoption Agreement, the arithmetic monthly average of the Earnings paid to a
Participant by the Adopting Employer for a specified number of consecutive months of Credited
Service preceding the Participant's most recent Termination in which the Participant's Earnings
were the highest, multiplied by twelve (12). In computing Final Average Earnings, Earnings
shall include, if applicable and authorized by the Adopting Employer in an Addendum to the
Adoption Agreement, severance payments made prior to, on or after the Participant's
Termination Date. The number of months to be used in determining Final Average Earnings
shall be designated by the Adopting Employer in the Adoption Agreement or an Addendum
thereto. The Administrator shall prescribe a formula for the determination of Final Average
Earnings. Calculation of Final Average Earnings shall be subject to the following:
- 13 -
(a)If a Participant terminates employment or is on an unpaid leave of absence and
later returns to employment with the Employer, the period(s) prior to and following such absence
from employment shall be considered consecutive.
(b)If a Participant has not completed the number of consecutive months of Credited
Service necessary to compute Final Average Earnings under this Section as of the date of such
Participant's most recent Termination preceding Retirement, then Final Average Earnings shall
be determined by dividing total Earnings for the Participant's entire period of Credited Service
by such Participant's total number of months of Credited Service and multiplying the quotient by
twelve (12). In computing the number of months of Credited Service for this purpose,
incomplete months of Credited Service shall be converted to fractional equivalents of months
and included in the computation.
Section 2.36. "Governing Authority" shall mean the entity named in the Adoption
Agreement which is authorized to act for the Adopting Employer.
Section 2.37. "In-Service Distribution" shall mean commencement of benefits to a
Participant who has satisfied the requirements for Retirement prior to the Participant's
Termination of Employment or continuation of benefits to a Retired Participant who returns to
service without first completing a Bona Fide Separation from Service.
Section 2.38. "Ineligible Employee" shall mean an Employee of the Adopting
Employer who is not an Eligible Employee.
Section 2.39. "Interest" shall mean a pro rata share of any and all interest, dividends,
and capital gains or losses earned on the invested or reinvested funds of the GMEBS Investment
Fund.
- 14 -
Section 2.40. "Investment Fund" or "GMEBS Retirement Trust Fund" shall
mean the total amounts of all Contributions plus Interest, invested or uninvested, held by the
Board of Trustees in the GMEBS Retirement Trust Fund for all GMEBS Employers and their
Employees where applicable.
Section 2.41. "Late Retirement Date" shall mean the first day of the month
coinciding with or next following the day the Participant qualifies for Late Retirement, as
specified in Section 6.03, as of which the Participant actually retires. The Plan shall not provide
for a maximum retirement age.
Section 2.42. "Military Service" shall mean, unless otherwise specified in the
Adoption Agreement, service performed while on active duty in the Armed Forces of the United
States if the Participant was granted an honorable discharge. Except as otherwise required by
federal or state law, Military Service shall not include service which is credited toward
retirement under any other local, state, or federal retirement or pension plan.
Section 2.43. "Monthly Retirement Benefit" shall mean the monthly benefit as
provided in Article VI or any optional benefit payable in lieu thereof as provided in Article VII.
Section 2.44. "Municipal Legal Officer" shall mean, with respect to those
Employers who elect to include municipal legal officers as Eligible Employees, only those
municipal legal officers specifically designated in the Adoption Agreement for inclusion as
Eligible Employees, provided that such officer otherwise meets the Basic Plan Document's
definition of Employee.
Section 2.45. "Normal Retirement Date" or "Alternative Normal Retirement
Date" shall mean the first day of the month coinciding with or next following the date the
Participant qualifies for Normal Retirement as specified in the Employer's Adoption Agreement.
- 15 -
An Employer may also establish alternative Normal Retirement qualifications in the Adoption
Agreement. In such case, the Participant's Alternative Normal Retirement Date shall mean the
first day of the month coinciding with or next following the date the Participant meets the
alternative Normal Retirement qualifications.
Section 2.46. "Participant" or "Participating Employee" shall mean any Eligible
Employee who is or may become eligible to receive a benefit of any type from the Plan and who
has commenced participation in the Plan under Article IV.
Section 2.47. "Pension Committee" shall mean the committee named in the
Adoption Agreement to represent the Adopting Employer in the administration of the Plan.
Section 2.48. "Plan" shall mean the provisions of this Basic Plan Document, along
with the Employer's Adoption Agreement (including any Addendum to the Adoption Agreement,
if applicable), setting forth the Employees to be covered, the benefits to be provided, and the
conditions of retirement, and all amendments thereto which may hereafter be made.
Section 2.49. "Plan Representative" shall mean the Plan Representative designated
in the Employer's Adoption Agreement. The Plan Representative must have full authority to
represent the Governing Authority in all communications with GMEBS and the Adopting
Employer's Employees. The Pension Committee Secretary may serve as the Plan Representative.
Section 2.50. "Plan Year" shall mean a twelve (12) consecutive month period
specified as such in the Adoption Agreement.
Section 2.51. "Police Officer" shall mean an Eligible Regular Employee employed
by the Adopting Employer's Police Department who is either certified or registered as a peace
officer pursuant to O.C.G.A. § 35-8-2(8) (a copy of which is included in the Appendix hereto).
- 16 -
Section 2.52. "Post-Retirement Beneficiary" shall mean the person designated by
the Participant, in writing and on the Applicable Form, to receive a post-retirement survivor
benefit in accordance with and subject to the provisions of Article VII and Section 8.12.
Section 2.53. "Primary Pre-Retirement Beneficiary" shall mean the person
designated by the Participant, in writing and on an Applicable Form, to receive a pre-retirement
death benefit, in accordance with and subject to the provisions of Article VIII.
Section 2.54. "Provider" means the Georgia Municipal Association, Inc. who is the
pre-approved plan provider sponsoring the Plan on behalf of GMEBS.
Section 2.55. "Regular Employee" shall mean any Employee, other than an elected
or appointed member of the Governing Authority or Municipal Legal Officer, who is regularly
employed in the services of the Adopting Employer.
Section 2.56. "Resolution" shall mean a resolution duly adopted by an Employer.
Section 2.57. "Retired Participant" shall mean any Participant who has Terminated
Employment with the Employer and who is receiving a benefit provided under the Plan.
Section 2.58. "Retirement" or "Retires" shall mean withdrawal from Service with a
retirement allowance granted under the provisions of the Plan.
Section 2.59. "Retirement System," "System," or "GMEBS" shall mean the
Georgia Municipal Employees Benefit System created by O.C.G.A. Section 47-5-1 et seq. (a
copy of which is included in the Appendix hereto).
Section 2.60. "Secondary Pre-Retirement Beneficiary" shall mean the person
designated by the Participant, in writing and on the Applicable Form, to receive a pre-retirement
death benefit in the event the Primary Pre-Retirement Beneficiary does not survive the
Participant, in accordance with and subject to the provisions of Article VIII.
- 17 -
Section 2.61. "Section" shall mean, when not preceded by the word Code or ERISA,
a section of the Basic Plan Document.
Section 2.62. "Spouse" shall mean, notwithstanding any other provision in an
Adopting Employer's Adoption Agreement or Addendum to the contrary, (i) effective on or after
September 16, 2013, to the extent required by federal law, and (ii) effective on or after
September 26, 2014, for all purposes, a person who, as of the date of the Participant's, Retired
Participant's or Terminated Vested Participant's death, as applicable, is lawfully joined with the
Participant or Terminated Vested Participant in a marriage which is recognized under the laws of
any state or foreign jurisdiction, whether opposite-sex or same-sex and regardless of whether or
not the spouse resides in the state or foreign jurisdiction in which such marriage occurred.
Section 2.63. "Terminated Vested Participant" shall mean any Participant who has
Terminated Employment with the Adopting Employer and who has a Vested Benefit under any
provision of the Adopting Employer's Plan but is not yet a Retired Participant.
Section 2.64. "Termination," "Terminate Employment," "Termination of
Employment," or "Terminated" shall mean a severance of employment with the Employer,
including Retirement, resignation or discharge, lapse of recall rights after layoff, death, or
vacation of office by a Regular Employee, an elected or appointed member of the Governing
Authority or a Municipal Legal Officer. Provided, however, that Termination shall not include:
(i)absence from active employment which is not treated by the Adopting Employer as a
Termination of Employment; (ii) absence due to military service to the extent required under
USERRA and Code Section 414(u)(8)(A), (iii) absence due to leave which qualifies as family or
medical leave under the FMLA, to the extent required under the FMLA; or (iv) absence due to an
authorized leave of absence for any reason if approved by the Adopting Employer. Unless
- 18 -
otherwise required by law or unless the terms of the leave otherwise specify, if an Employee on
an authorized leave of absence fails to return to active employment upon expiration of the leave
of absence, the Employee will be considered terminated as of the date immediately preceding the
approved leave period.
Section 2.65. "Trust Fund" mean the total amounts, invested or uninvested, held at
any time by the Board in trust for the Employer under the GMEBS Trust Agreement, a separate
document for the establishment and administration of the Trust Fund.
Section 2.66. "Vested," "Vesting," "Vested Right," or "Vested Benefit" shall
mean the rights of a Terminated Vested Participant as specified in Article IX.
ARTICLE III.
SERVICE
Section 3.01. "Current Credited Service" shall mean the number of years and
complete months of Service of a Participant with the Adopting Employer from the Participant's
Enrollment Date to the Participant's Termination, which are credited as Current Credited Service
for purposes of meeting the Plan's requirements for vesting, retirement and death benefit
eligibility, and/or for purposes of computing the amount of benefits payable under the Plan,
determined in accordance with and subject to any limitations established in the Basic Plan
Document and the Employer's Adoption Agreement or Addendum. Current Credited Service
shall include unused paid time off which the Employer elects to treat as Current Credited Service
for a Terminated Vested Participant for certain purposes, as provided and subject to any
limitations contained in the Adoption Agreement; provided, however, that leave conversions will
be permitted only if (i) the leave is for unused accrued paid time off for vacation and/or sick
leave or for comparable paid-time-off under an established leave policy without regard to
whether the leave is due to illness or incapacity, (ii) the leave policy qualifies as a bona fide sick
- 19 -
and/or vacation leave plan for purposes of Code Section 409A and Treasury Regulation §
1.409A-1(a)(5), (iii) the Plan provides for service credit for an Employee's unused paid time off,
provided that the eligibility requirements for participation in the Plan do not permit an Employee
to become a Participant only in the Plan Year in which the Employee terminates employment,
(iv)the conversion is automatic, the employee has no right to request a cash payment for the
leave, and no such payment is made, (v) the unused paid time off is converted to service credit
under a formula specified in the Adoption Agreement and which satisfies the definitely
determinable standard of Treasury Regulation § 1.401-1(b)(1)(i), (vi) the Adopting Employer's
Plan otherwise provides for service credit unrelated to the conversion of any Employee's unused
paid time off, and (vii) the Participant's annual benefit, as adjusted by the leave conversion, does
not exceed the limit under Code Section 415(b).
Section 3.02. "USERRA Military Service Credit."
(a)USERRA Military Service Credit. Notwithstanding any provision of this Plan to
the contrary, contributions, benefits, and service credit with respect to qualified military service
shall be provided in accordance with Code Section 414(u). Code Section 414(u) provides that:
(i)individuals reemployed under the Uniform Services Employment and Reemployment Rights
Act of 1994 ("USERRA") must be treated as not having incurred a break in Service because of
qualified military service, (ii) periods of qualified military service must be counted for vesting
and benefit accrual purposes, except that periods of qualified military service must not be
counted for benefit accrual purposes where the individual would have been required to make
Employee Contributions under the Adopting Employer's Plan if the individual had remained
continuously employed by the Adopting Employer during said period of qualified military
service and the individual fails to make-up said Employee Contributions as provided herein,
- 20 -
(iii)make-up of Employee Contributions up to the maximum the individual would have been
required to make if continuously employed must be allowed, in one lump sum payment or in
installments, during the period beginning on reemployment and lasting for the lesser of three (3)
times the period of qualified military service or five (5) years, (iv) any Employer Contributions
contingent on make-up Employee Contributions must be made by the Employer, if and to the
extent the individual contributes make-up Employee Contributions as provided herein,
(v)earnings are not required to be credited unless and until the Employee contributes make-up
contributions, (vi) make-up Contributions are based on compensation the individual would have
received during the period of qualified military service (if not reasonably certain, compensation
for the 12 month period (or, if shorter, the period of employment) immediately preceding
qualified military service can be used), and (vii) make-up Contributions are subject to the
limitations of Code Sections 402(g), 415, and 404(a) for the year to which the contribution
relates, not the year in which the contribution is made.
(b)Ordered Military Leave under Georgia Law. To the extent not provided under
subsection (a), the Plan will grant Credited Service for a period of "ordered" military service in
accordance with and subject to the requirements of O.C.G.A. § 38-2-279(f) (a copy of which is
included in the Appendix hereto) to a Participant who was an Eligible Employee when such
ordered military service commenced, if and to the extent that the Participant (or in case of the
Participant's death during the period of military service, the Participant's Pre-Retirement
Beneficiary or the legal representative of the Participant's estate) makes up any required
Employee Contributions as provided herein. To obtain Credited Service for the period of
ordered military service, the Participant must make-up the required Employee Contributions in
one lump sum payment or in installments during a period that begins upon commencement of
- 21 -
such ordered military service and ends no later than five (5) years after the period of military
service ends. If the Participant dies during the period of military service, the Participant's Pre-
Retirement Beneficiary or the legal representative of the Participant's estate must make up the
required Employee Contributions no later than one (1) year following proof of the Participant's
death. The amount of Employee Contributions required to be made to receive Credited Service
for a period of military service shall be determined in the same manner as provided under
USERRA and HEART and subsection (a) above.
(c)Effective with respect to deaths occurring on or after January 1, 2007, while a
Participant is performing qualified military service (as defined in chapter 43 of title 38, United
States Code), to the extent required by Code Section 401(a)(37), survivors of the Participant are
entitled to any additional benefits that the Plan would provide if the Participant had resumed
employment and then died, such as accelerated vesting or survivor benefits that are contingent on
the Participant's death while employed. In any event, a deceased Participant's period of qualified
military service must be counted for vesting purposes.
(d)Beginning January 1, 2009, to the extent required by Code Sections 3401(h) and
414(u)(2), an individual receiving differential wage payments (while the individual is performing
qualified military service (as defined in chapter 43 of title 38, United States Code)) from an
Employer shall be treated as employed by that Employer, and the differential wage payment
shall be treated as compensation for purposes of applying the limits on annual additions under
Code Section 415(c). This provision shall be applied to all similarly situated individuals in a
reasonably equivalent manner.
(e)Effective with respect to deaths occurring on or after January 1, 2009, while a
Participant is performing qualified military service (as defined in chapter 43 of title 38, United
- 22 -
States Code), to the extent permitted by Code Section 414(u)(8), for benefit accrual and vesting
purposes, the Participant will be treated as having returned to employment on the day before the
death and as having terminated on the date of death. This provision shall be applied to all
similarly situated individuals in a reasonably equivalent manner.
Section 3.03. "Credited Past Service" shall mean the number of years and complete
months of Service of a Participant with the Adopting Employer prior to the Participant's
Enrollment Date which are treated as Credited Past Service under the Employer's Adoption
Agreement for purposes of meeting the Plan's requirements for participation, vesting, retirement
and death benefit eligibility, and/or or for purposes of computing the amount of benefits payable
under the Plan, subject to any limitations established in the Basic Plan Document, Adoption
Agreement or Addendum.
Section 3.04. "Prior Governmental Service" shall mean government service
preceding the Eligible Employee's employment or reemployment date with the Adopting
Employer, usually for an entity other than the Adopting Employer, which the Employer elects to
treat as Credited Service for certain purposes, as provided and subject to any limitations
contained in the Adoption Agreement
Section 3.05. "Prior Military Service" shall mean Military Service not covered by
Section 3.02 which the Employer elects to treat as Credited Service for certain purposes, as
provided and subject to any limitations contained in the Adoption Agreement.
Section 3.06. "Service" shall mean regular service rendered as an Eligible Employee
of the Adopting Employer. Service may include absence from active employment with the
Adopting Employer under conditions which are not treated by the Employer as a Termination of
Employment, subject to Article IV concerning leaves of absence and any other conditions or
- 23 -
limitations specified in the Basic Plan Document, Adoption Agreement or Addendum. For those
Employers who elect in the Adoption Agreement to include elected or appointed members of the
Governing Authority or Municipal Legal Officers as Eligible Employees, Service also means any
tenure of office held by an elected or appointed member of the Governing Authority or a
Municipal Legal Officer, provided that such tenure of office does not include any calendar
period during which any elected or appointed member of the Governing Authority or Municipal
Legal Officer is also in the regular service of the Employer as an Eligible Employee in another
capacity. No Participant may receive credit for more than one (1) year of Service in any twelve
(12) month period.
Section 3.07. "Total Credited Service" shall mean the sum of the Participant's
Current Credited Service, Credited Past Service, Prior Military Service, and Prior Governmental
Service, as specified in this Article and covered per the Employer's Adoption Agreement, subject
to any limitations imposed under the Basic Plan Document or the Employer's Adoption
Agreement or Addendum. The term Total Credited Service includes any Service required to be
included in Total Credited Service by USERRA, or any other applicable federal or state law.
Full months of Total Credited Service shall be treated as fractions of one (1) year. Partial
months shall not be included in the calculation. The Employer may specify in the Adoption
Agreement a maximum number of years that may be included as Total Credited Service. If an
Employer elects in its Adoption Agreement to require Employee Contributions, Total Credited
Service shall not include any period of time for which the Employee is required but fails to make
such Employee Contributions to the Plan. If a Participant has received a cash single sum
payment of the present value of the Participant's Plan benefit pursuant to Section 7.05 of the
Basic Plan Document upon or following termination with an Adopting Employer and
- 24 -
subsequently returns to Service with such Adopting Employer, the Participant's prior Credited
Service with the Adopting Employer for which the cash single sum payment was paid shall be
counted for purposes of meeting the Plan's requirements for participation, vesting, and retirement
and death benefit eligibility but shall not be counted as Credited Service for purposes of benefit
computation.
An Employee excluded from participation because of age shall receive credit for all
Service as required by law.
ARTICLE IV.
ELIGIBILITY, QUALIFICATION AND PARTICIPATION
Section 4.01. Classes of Eligible Employees. The Employer shall designate in the
Adoption Agreement the class(es) of Employees which are eligible to participate in the Plan.
Provided, however, that if a person does not meet the definition of "Employee" contained in
Article II, such person may not be included in any Eligible Employee class.
Section 4.02. Qualifications for Participation.
(a)Minimum Service Requirement. With respect to each class of Eligible Regular
Employees, the Employer may specify in the Adoption Agreement a minimum number of work
hours per week and/or a minimum number of work months per year which are required to be
scheduled in order to establish and maintain the Employee's status as an Eligible Regular
Employee. It shall be the responsibility of the Adopting Employer to determine whether these
requirements are and continue to be satisfied. In determining whether said requirements are
satisfied, the following rules shall apply:
(1)If an Employee is otherwise includable in an Eligible Regular Employee
class but does not meet the minimum service requirements established by the Employer
for said class pursuant to subsection (a) above, the Employee shall not be considered an
- 25 -
Eligible Employee, unless and until such requirements are satisfied. If an Eligible
Regular Employee who has not yet become a Participant no longer meets said minimum
service requirement but remains an Employee of the Employer, such Employee shall no
longer be considered an Eligible Regular Employee, unless and until the Employee again
satisfies the minimum requirement.
(2)No period of employment during which an Employee fails to satisfy the
Employer's minimum service requirement and no leave of absence granted to such
Employee shall be counted in determining whether any waiting period for participation
established by the Employer pursuant to subsection (b) below has been satisfied.
However, provided the Employee remains continuously employed by the Employer, such
periods shall not be considered a break in Service under subsection (c)(1) below for
purposes of satisfying said waiting period.
(b)Waiting Period. Effective January 1, 2015 with respect to Eligible Regular
Employees in service with the Adopting Employer on or after said date, Eligible Regular
Employees shall not have a waiting period before participating in the Plan. Likewise, effective
January 1, 2015, 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. Notwithstanding subsection 20.01(f) of the Basic Plan Document, in the event that
an Adopting Employer has specified in an Addendum to the Adoption Agreement in effect
immediately prior to January 1, 2015 that any class or classes of Eligible Employees shall be
subject to a waiting period before participating in the Plan, such provision shall no longer be
effective on or after January 1, 2015.
- 26 -
(c)Prior to January 1, 2015, unless otherwise specified by the Adopting Employer in
an Addendum to the Adoption Agreement, Eligible Regular Employees were required to
complete one (1) year of continuous, uninterrupted service with the Adopting Employer in order
to commence participation in the Plan. In determining whether an applicable waiting period was
satisfied, the following rules shall apply:
(1)Breaks in Service. If an Eligible Regular Employee has a break in service
prior to satisfying the waiting period for participation and later becomes reemployed by
the Adopting Employer, such Employee shall be required to again satisfy the waiting
period in order to be eligible to participate in the Plan. Service rendered prior to said
break in service shall not be taken into account in determining whether the waiting period
has been satisfied.
(2)Employed on Effective Date; Waiting Period Satisfied. If an Eligible
Regular Employee is employed by the Adopting Employer on the Effective Date of the
Plan and has completed a period of continuous, uninterrupted service as an Eligible
Employee immediately prior to the Effective Date equal to or exceeding the length of the
required waiting period, then the Employee shall be considered to have satisfied the
waiting period and shall be eligible to commence participation in the Plan on the first day
of the month immediately following or coinciding with the Effective Date of the Plan.
(3)Employed on Effective Date; Waiting Period Not Satisfied. If an Eligible
Regular Employee is employed by the Adopting Employer on the Effective Date of the
Plan but has not completed a period of continuous, uninterrupted service as an Eligible
Regular Employee immediately prior to the Effective Date equal to or exceeding the
length of the required waiting period, then the Employee shall be eligible to commence
- 27 -
participation in the Plan on the first day of the month immediately following or
coinciding with the date that the Employee completes the minimum period of continuous,
uninterrupted service as an Eligible Regular Employee necessary to satisfy the required
waiting period.
(4)Employed After the Effective Date. If an Eligible Regular Employee is
initially employed by the Adopting Employer after the Effective Date of the Plan, said
Employee shall be eligible to commence participation in the Plan on the first day of the
month immediately following or coinciding with the date that the Employee completes
the minimum period of continuous, uninterrupted service as an Eligible Regular
Employee necessary to satisfy the required waiting period.
(5)Treatment of Leaves of Absence. For purposes of determining whether
the waiting period for participation has been satisfied, service shall include any period of
absence from employment which is required to be taken into account for such purpose
under USERRA, the FMLA, or any other applicable federal or state law. Unless
otherwise required by law or unless the terms of the leave otherwise specify, an
authorized leave of absence granted to an Eligible Regular Employee by the Adopting
Employer shall be counted as Credited Service for purposes of determining whether the
waiting period for participation has been satisfied. However, unless otherwise required by
law or unless the terms of the leave otherwise specify, if an Eligible Regular Employee
on an authorized leave of absence fails to return to active employment or office upon
expiration of the leave of absence, the Eligible Regular Employee shall be considered to
have incurred a break in service for purposes of meeting the waiting period for
participation as of the date preceding the approved leave period.
- 28 -
(6)Treatment of Service as an Ineligible Employee. If an Employee of the
Adopting Employer who is not an Eligible Employee becomes an Eligible Regular
Employee while remaining continuously employed by the Adopting Employer, said
Eligible Employee shall become eligible to commence participation on the first day of the
month immediately following or coinciding with the date the Employee meets the
eligibility requirements for participation under this Article. For purposes of satisfying
any waiting period imposed by the Adopting Employer, and unless otherwise specified in
the Adoption Agreement, the Eligible Regular Employee's prior period of employment as
an Ineligible Employee shall be credited in the same manner as service as an Eligible
Regular Employee provided that during said prior period of service as an Ineligible
Employee, the Employee satisfied any minimum service requirement established by the
Employer pursuant to Section 4.02(a). Unless otherwise specified in the Adoption
Agreement, if an Eligible Regular Employee becomes an Ineligible Employee prior to
satisfying the waiting period for participation in the Plan, said Employee's service as an
Ineligible Employee shall be credited in the same manner as service as an Eligible
Regular Employee for purposes of satisfying said waiting period, provided that the
Ineligible Employee satisfies the applicable minimum service requirements established
for Eligible Employees pursuant to Section 4.02(a). However, in no event will an
Ineligible Employee be permitted to become a Participant in the Plan unless and until said
Employee has satisfied the waiting period and has again become an Eligible Employee.
For purposes of satisfying the waiting period, leaves of absence granted to an Ineligible
Employee shall be treated in the same manner as leaves of absence for Eligible Regular
Employees under paragraph (5) above.
- 29 -
(7)Prior Participation in Another GMEBS Plan. An Eligible Regular
Employee who is hired after the Effective Date of the Plan shall be eligible to become a
Participant on the first day of the month immediately following or coinciding with the
date on which the Employee is employed by the Adopting Employer, regardless of any
waiting period requirement established by the Employer, provided that: (i) said
Employee's immediate prior employment was with another Adopting Employer in the
GMEBS; (ii) said Employee was a Participant in the previous Adopting Employer's
GMEBS retirement plan; and (iii) said Employee satisfies any minimum service
requirement established by the Adopting Employer pursuant to Section 4.02(a) for the
Employee's class.
Section 4.03. Establishing Participation in the Plan.
(a)Mandatory vs. Optional Participation. Participation in the Plan shall be
considered mandatory for all classes of Eligible Employees unless, with respect to a particular
class, the Employer specifies in the Adoption Agreement that participation is optional for
members of said class.
(b)Mandatory Participation. If participation is mandatory for a class of Eligible
Employees, then, except as otherwise provided in subsection (e) below, all Eligible Employees in
the class shall become Participants in the Plan as of the date they are employed, provided that
they satisfy the Adopting Employer's eligibility requirements for participation. With respect to
Eligible Employees initially employed or reemployed prior to January 1, 2015, if participation is
mandatory for a class of Eligible Employees, then except as provided in subsection (e) below, all
Eligible Employees in the class shall become Participants in the Plan on the first day of the
month immediately following or coinciding with the date they satisfy the applicable waiting
- 30 -
period and any other eligibility requirements for participation; provided, however, that any
Eligible Employee who was employed prior to January 1, 2015, was subject to a waiting period
before participating in the Plan, and had not satisfied such waiting period prior to January 1,
2015 shall commence participation in the Plan effective January 1, 2015. Eligible Employees
shall provide to the Pension Committee on an Applicable Form such participation enrollment
information as shall be required by the Pension Committee, which shall include the Eligible
Employee's acceptance of the terms and conditions of the Plan. Notwithstanding an Eligible
Employee's failure to complete the Applicable Form, the Eligible Employee shall become a
Participant as specified in the Adoption Agreement.
(c)Optional Participation. The Employer may specify in the Adoption Agreement
that participation is optional for certain classes of Eligible Employees, including but not limited
to Employees in the following categories: elected or appointed members of the Governing
Authority, Municipal Legal Officers, City Manager, and Department Heads. If participation is
optional for an Eligible Employee, then the Eligible Employee may elect to become a Participant
at the Eligible Employee's option by filing with the Pension Committee, on an Applicable Form,
such information as shall be required to enroll in the Plan, which shall include the Eligible
Employee's acceptance of the terms and conditions of the Plan. The election to participate must
be made within 120 days after the later of: the date the Eligible Employee commences
employment with the Adopting Employer, the date the Eligible Employee is elected or appointed
to office, or the date participation in the Plan is first permitted for members of a class to which
the Eligible Employee belongs. The election to participate shall be irrevocable, and the failure to
make an election within the 120-day time limit specified above shall be deemed an irrevocable
election not to participate in the Plan. If Employee contributions are required under the
- 31 -
Adopting Employer's Plan, then Eligible Employees who apply for participation within the 120
day period may be required to make retroactive contributions in order to receive credit under the
Plan for creditable Service prior the date they apply to participate in the Plan.
(d)Participation in the Plan shall not give any Eligible Employee the right to be
retained in the employ of the Adopting Employer nor, upon dismissal, to have any right or
interest in the Trust Fund other than as herein provided.
(e)Notwithstanding anything in this Section 4.03 to the contrary, if within 120 days
following the date on which an Employee is first employed or first takes office with an Adopting
Employer, the Employee enters into a written agreement or employment contract with the
Adopting Employer pursuant to which the Employee agrees that the Employee will not
participate in the Plan, the Employee shall be ineligible to participate in the Plan regardless of
whether the Employee otherwise satisfies the eligibility requirements for participation in the Plan.
The Employer shall notify the Administrator if and when an Employee has entered into such an
agreement with the Employer and provide such information to the Administrator as necessary to
confirm the existence of said agreement. A subsequent change in the terms of said agreement
will not make the Employee eligible to participate in the Plan unless the Adopting Employer
amends its Adoption Agreement to specifically require participation by said Employee.
Section 4.04. Change in Employment Status.
(a)Transfer to Ineligible Status. Unless otherwise specified by the Employer in the
Adoption Agreement, if a Participant's employment status changes such that the Participant
becomes an Ineligible Employee, said Employee shall cease to accrue benefits under the Plan for
any purpose and the Employee's interest under the Plan, if any, shall be only such as existed
immediately before the Employee became an Ineligible Employee, unless and until the
- 32 -
Employee again becomes a Participant. In no event will the Employee's service or earnings as an
Ineligible Employee be taken into account for purposes of meeting the Plan's minimum service
requirements for vesting, retirement eligibility, death benefit eligibility, or for purposes of
computing the amount of any benefit payable under the Plan. However, said period of service as
an Ineligible Employee shall not be considered a break in Service under Section 4.06, provided
the Ineligible Employee remains continuously employed by the Adopting Employer. If the
Ineligible Employee does not again become a Participant prior to Retirement or Termination of
Employment, the Employee's Vested Benefit, if any, shall be paid as provided in Article IX.
(b)Transfer Back to Eligible Status. If an Ineligible Employee described in
subsection (a) above remains continuously employed by the Adopting Employer and has another
change in employment status such that the Employee again becomes a Participant, the Employee
shall thereafter be entitled to accrue benefits in accordance with the terms of the Plan as in effect
as of the date of the subsequent change in employment status. In no event, however, shall such a
Participant receive a greater benefit under the Plan than that which the Participant would have
received had the Participant not had a change in employment status.
Section 4.05. Participant Leaves of Absence.
(a)USERRA, FMLA Leave – Notwithstanding any provision of this Plan to the
contrary, if any period of absence is required to be counted under USERRA, the FMLA or any
other applicable federal or state law as Current Credited Service for the purpose of computing
the amount of any benefit payable under the Plan, or for purposes of meeting the Plan's minimum
service requirements for vesting, retirement or death benefit eligibility, then said period of
absence shall be counted as such in accordance with and subject to the requirements of such law.
- 33 -
(b)Other Leaves of Absence. Unless otherwise required by law or unless the terms
of the leave otherwise specify, an authorized leave of absence granted to a Participant by the
Adopting Employer will be counted as Current Credited Service for the purpose of computing
the amount of any benefit payable under the Plan, and for purposes of meeting the Plan's
minimum service requirements for vesting and benefit eligibility. However, if the Participant
does not return to active employment upon expiration of the authorized leave period, then
subsection (c) shall apply.
(c)Failure to Return to Service. Unless otherwise required by law or unless the
terms of the leave otherwise specify, if a Participant does not return to active employment with
the Employer upon expiration of a leave of absence, the Participant's interest under the Plan, if
any, including the Participant's Current Credited Service for the purpose of computing the
amount of any benefit payable under the Plan, and for purposes of meeting the Plan's minimum
service requirements for vesting and any minimum service requirements for retirement or death
benefit eligibility, will be limited to that accrued as of the date preceding the approved leave
period.
(d)Unused Leave. The Adopting Employer may elect in the Adoption Agreement to
credit certain unused leave at termination or retirement for which the Participant is not paid as
Credited Service, subject to the terms and limits specified in the Basic Plan Document, Adoption
Agreement or Addendum.
Section 4.06. Non-Vested Participant Breaks in Service.
Except as otherwise provided in the Adoption Agreement, this Section shall apply only to
Participants who are Eligible Regular Employees. If a non-vested Participant experiences a
break in service, the Participant's Current Credited Service shall not include any Service rendered
- 34 -
prior to the break in service, unless the Participant returns to employment with the Adopting
Employer and performs the lesser of: service equal to the break in service, or service equal to one
(1) year. The following limitations shall apply in administering the break in service rule:
(a) Absence of Less Than One (1) Year. If a Participant terminates employment with
the Adopting Employer and returns to employment with the Adopting Employer within one (1)
year after said termination, the Participant shall not be deemed to have incurred a break in
service. Except as otherwise required under this Section, however, the time the Participant was
absent shall not be taken into account for any purpose under the Plan.
(b)Interim Employment with Another GMEBS Employer. If a Participant terminates
employment with the Adopting Employer and returns to employment with the Adopting
Employer after having spent the interim period in the continuous employment of another
Employer in the GMEBS, the Participant shall not be deemed to have incurred a break in Service.
The time the Participant was absent may be taken into account for purposes of determining
whether the Participant has met the minimum service requirements for vesting and retirement
eligibility under the Adopting Employer's Plan, as provided by and subject to the provisions of
Section 9.05 concerning portability. However, in no event shall the time the Participant was
absent from the Adopting Employer be taken into account for the purpose of computing the
amount of any benefit payable under the Adopting Employer's Plan.
(c) Treatment of Leaves of Absence. No leave of absence or other period of absence
from employment shall be considered a break in Service if it is not permitted to be treated as
such under USERRA, the FMLA, or any other applicable federal or state law. Unless otherwise
required by law or unless the terms of the leave otherwise specify, any other authorized leave of
absence granted to a Participant shall not be deemed a break in Service, provided the Participant
- 35 -
was regularly employed by the Employer immediately prior to the Participant's leave of absence
and the Participant is reemployed by the Employer upon expiration of the leave of absence.
Unless otherwise required by law or unless the terms of the leave otherwise specify, if a
Participant does not return to active employment upon expiration of the approved leave period,
the Participant will be considered to have incurred a break in Service under this Section as of the
date immediately preceding the approved leave period.
(d)Transfer to Ineligible Employee Status. Unless otherwise specified by the
Employer in the Adoption Agreement, if a Participant's employment status changes such that the
Participant becomes an Ineligible Employee pursuant to Section 4.04, the period of time spent as
an Ineligible Employee shall not be considered a break in Service under this Section, provided
the Participant remains employed by the Adopting Employer. Unless otherwise specified by the
Adopting Employer, leaves of absence granted to an Ineligible Employee will not be considered
a break in Service under this Section, provided the Ineligible Employee returns to active
employment with the Employer upon expiration of the approved leave period and the
requirements of subsection (c) are otherwise satisfied with respect to such leave of absence.
(e)Graduated Vesting. If the Adopting Employer has established a graduated vesting
schedule in the Adoption Agreement, and a Participant who is partially vested Terminates
Employment with the Adopting Employer and subsequently returns to employment with the
Adopting Employer, the Participant shall not be deemed to have incurred a break in service.
Except as otherwise required under this Section, however, the time the Participant was absent
shall not be taken into account for any purpose under the Plan.
(f)Repeated Breaks in Service. If a non-vested Participant has a break in Service,
returns to employment with the Adopting Employer, and experiences one or more additional
- 36 -
breaks in Service prior to satisfying the one (1) year Service requirement necessary to work off
the initial break, then the Participant's Current Credited Service shall not include any Service
rendered prior to the most recent break in Service, unless upon the Participant's return to
employment with the Employer following the most recent break in Service the Participant
performs Service for a period of at least one (1) year.
ARTICLE V.
RETIREMENT ELIGIBILITY
(a)The Retirement prerequisites of a Participant under this Plan are contingent upon
the type of Retirement offered by the Employer in the Adoption Agreement and selected by the
Participant: that is, Normal Retirement, Alternative Normal Retirement, Early Retirement, Late
Retirement, or Disability Retirement, as applicable. The provision of an Alternative Normal
Retirement benefit or the designation of an Alternative Normal Retirement Date in the Adoption
Agreement shall not be construed to establish an Alternative Normal Retirement Age or
Alternative Normal Retirement Date for purposes of the definition of Accrued Benefit under
Section 2.01, for purposes of computing death benefits under Article VIII, or for purposes of
applying the actuarial equivalent conversion provisions of Article XII. The minimum age and
service requirements and other prerequisites associated with each type of Retirement for each
class of Eligible Employees shall be as specified in the pertinent sections of the Adoption
Agreement. Except as otherwise provided in the Basic Plan Document, Adoption Agreement or
Addendum with respect to In-Service Distributions for those who remain in service after they
qualify for Normal Retirement or Alternative Normal Retirement, receipt of Retirement benefits
shall also be contingent upon Termination of Employment.
- 37 -
(b)Provided a Participant is otherwise eligible to receive a Retirement benefit under
the Plan, Retirement is contingent upon the satisfactory completion of the Applicable Form
provided for such purpose and the acceptance of the Applicable Form by the Pension Committee.
(c)Retirement applications shall be prepared and submitted at such time as to reach
the office of GMEBS no earlier than ninety (90) days and no later than thirty (30) days prior to a
Participant's effective Retirement Date. A Participant's effective Retirement date shall be the
first day of the month coinciding with or following the date the Participant has satisfied all of the
prerequisites for Retirement as specified in this Article V, and actually Retires.
ARTICLE VI.
RETIREMENT BENEFITS
Section 6.01. Normal Retirement Benefit.
(a)A Participant, upon Retirement on or after the Participant's Normal Retirement
Date (or Alternative Normal Retirement Date, as applicable), shall receive a Monthly Retirement
Benefit under which payments shall commence on the first day of the month in which the
Participant's effective Retirement Date occurs and shall be payable on the first day of each month
thereafter during the Participant's lifetime. Normal Retirement benefits (not including
Alternative Normal Retirement benefits or the In-Service Distribution of Normal or Alternative
Normal Retirement benefits) shall be paid retroactively to the first day of the month following
the month in which the Participant's Termination occurs (or, if the Participant's Termination
occurs on the first of the month, the first day of the month in which the Participant's Termination
occurs) or if later, the first day of the month in which the Participant's Normal Retirement Date
occurs. The amount of the Monthly Retirement Benefit shall be determined based upon the
applicable benefit formula specified in the Adoption Agreement and in effect at the Participant's
Termination. If the Participant elects a form of benefit payment other than the standard form, the
- 38 -
amount of the Monthly Retirement Benefit will be adjusted in accordance with and subject to the
terms of the option elected (see Section 7.01).
(b)No interest shall be paid on the retroactive payment of Normal Retirement
benefits.
Section 6.02. Early Retirement Benefit.
(a)A Participant, upon Retirement on or after the Participant's Early Retirement Date
and before the Participant's Normal Retirement Date or Alternative Normal Retirement Date,
may receive a Monthly Retirement Benefit under which payments shall commence on the first
day of the month in which the Participant's effective Retirement Date occurs and shall be payable
on the first day of each month thereafter during the lifetime of the Participant. The amount of
such Monthly Retirement Benefit shall be computed in the same manner as for a Normal
Retirement benefit, but reduced on an Actuarially Equivalent basis in accordance with the
actuarial table contained in Section 12.01. An Adopting Employer may adopt in the Adoption
Agreement an alternative early retirement actuarial reduction table for one or more classes of
Eligible Employees, provided the adoption of such table satisfies the requirements of Code
Section 401(a)(25).
(b)Provided the Employer has elected in the Adoption Agreement to provide
Disability benefits, a Participant who is otherwise eligible for an Early Retirement benefit may
apply for and receive an Early Retirement benefit (i) while a Disability Retirement benefit
determination is pending, or (ii) while waiting for an approved Disability Retirement benefit to
commence. Upon a determination that the Participant is entitled to receive a Disability
Retirement benefit, the Participant's benefit will be changed to a Disability Retirement benefit (if
greater), retroactive to the Disability Retirement Date, provided that the requirements of Section
- 39 -
6.04(b) relating to making application for retroactive payments of Disability Retirement benefits
are met. If said requirements are not met but the Participant otherwise qualifies for a Disability
Retirement benefit, the Participant's benefit will be changed to a Disability Retirement benefit as
of the first day of the month coinciding with or following the date that the Participant submits
documentation sufficient to confirm the Participant's eligibility for a Disability Retirement
benefit, as described in Section 6.04(c). However, no change in the form of benefit payment or
designation of the Post-Retirement Beneficiary may be made, and no Post-Retirement
Beneficiary may be named if one had not been previously named.
(c)Early Retirement benefits shall be paid retroactively to a date (first day of the
month) designated on the Participant's retirement application, provided that such date may be no
earlier than the later of: 1) four (4) full calendar months prior to the date of the Pension
Committee Secretary's execution of the Participant's retirement application; or 2) the
Participant's Early Retirement Date. No interest shall be paid on the retroactive payment of
Early Retirement benefits.
Section 6.03. Late Retirement Benefit.
(a)A Participant may Retire from the active Service of the Adopting Employer on
the first day of any month after the Participant's Normal Retirement Date, in which case the
Participant shall receive a Late Retirement benefit. For purposes of this provision and except as
otherwise provided in an Employer's Adoption Agreement or Addendum, a Participant will be
treated as having Retired from the active service of the Adopting Employer if the Participant
submits a GMEBS retirement application no later than thirty-one (31) days after the Participant's
Termination of Employment and said application is approved by GMEBS. The Late Retirement
benefit shall be calculated in the same manner as the Normal Retirement benefit. However, the
- 40 -
Employer may elect in the Adoption Agreement or Addendum thereto to provide for an
increased Late Retirement benefit, in which case the Late Retirement Benefit shall be calculated
in the same manner as the Normal Retirement Benefit, but increased as provided in the Adoption
Agreement or Addendum, as applicable.
Section 6.04. Disability Benefit.
(a) Where the Employer has elected in the Adoption Agreement to provide Disability
benefits, a Participant who becomes Disabled and Terminates Employment due to Disability and
is otherwise entitled to receive a Disability Retirement benefit, shall receive such benefit in
accordance with and subject to the requirements of this Section.
(b)Requirements for Payment as of Disability Retirement Date - Disability
Retirement benefit payments shall be payable during a Participant's Disability as of the first day
of the month coinciding with or next following, and may be paid retroactively to, the
Participant's Disability Retirement Date, provided the following requirements are satisfied:
(1)Application for Disability Award Must Be Filed Within 1 Year After
Termination — No later than one (1) year after the Participant's Termination of
Employment due to Disability, the Participant must file an application for a federal Social
Security Administration (SSA) disability award or, if applicable under Section 2.23, an
application for determination of Disability by the Pension Committee; and
(2)GMEBS Retirement Application Form and Disability Award Must Be
Submitted Within 1 Year of Termination, or if Later, Within 6 Months After Date of
Disability Award; Proof of Application for Disability Award Before Expiration of 1 Year
Following Termination Due to Disability —The Participant must submit the following to
the Pension Committee Secretary within one (1) year after the Participant's Termination
- 41 -
of Employment due to Disability or within six (6) months after the date of such award or
determination, whichever is later:
(i)the Participant's GMEBS Retirement Application Form;
(ii)the SSA Disability Award (or, if applicable under Section 2.23, the
Pension Committee determination of Disability) reflecting a disability onset date
on or before the Participant's Termination date; and
(iii)documentation the Administrator deems sufficient to establish that
the Participant filed an application for a federal SSA disability award (or, if
applicable under Section 2.23, an application for determination of Disability by
the Pension Committee) before the expiration of one (1) year following
Termination of employment due to Disability. Such documentation may include a
copy of such application, a copy of the Disability award or determination received
in response to such application, or an affidavit completed by the Participant (on
the GMEBS retirement application or another Applicable Form provided for such
purpose) in which the Participant affirms that such application has been filed.
(3)Special Rule in Case of Disability Award on Subsequent SSA Disability
Application - In the event that a Participant's application for a SSA disability award is
denied, the Participant must make any subsequent application for a SSA disability award
within six (6) months following such denial becoming final, must allege in the
subsequent SSA application a disability onset date that is on or before the Participant's
Termination date, and where the Participant is subsequently granted a SSA disability
award, the Participant must submit the following to the Pension Committee Secretary
- 42 -
within six (6) months after the date of such favorable award, or if later, one (1) year after
the Participant's Termination of Employment:
(i)a GMEBS retirement application form;
(ii)the Participant's SSA disability award reflecting a disability onset
date on or before the Participant's Termination date or reflecting a disability onset
date that immediately follows the date of denial of the Participant's prior SSA
disability application (due to application of Social Security Administration res
judicata rules) but the Participant's actual Disability onset date was on or before
the Participant's Termination date as provided under Section 2.23; and
(iii) documentation the Administrator deems sufficient to establish that
within six (6) months after the SSA's denial of the Participant's initial application
for a disability award, the Participant filed a subsequent application for a SSA
disability award in accordance with this subsection 6.04(b)(3). Such
documentation may include a copy of such application, a copy of the Disability
award or determination received in response to such application, or an affidavit
completed by the Participant (on the GMEBS retirement application or another
Applicable Form provided for such purpose) in which the Participant affirms that
such application has been filed.
(c) Prospective Payment Following Retirement Application — If the Participant who
has Terminated Employment due to Disability is otherwise eligible to receive a Disability
Retirement benefit and except as otherwise permitted under subsection 6.04(b) above with
respect to payment of Disability Retirement benefits retroactive to the Participant's Disability
Retirement Date, Disability Retirement benefits shall be payable as of the first day of the month
- 43 -
following or coinciding with the date of acceptance of the Participant's completed GMEBS
retirement application form by the Pension Committee, provided such application includes: (1) a
Social Security Administration (SSA) disability award reflecting a disability onset date on or
before the Participant's Termination date; or (2) if applicable under Section 2.23, a Pension
Committee determination of Disability reflecting a Disability onset date on or before the
Participant's Termination date; or (3) where the Participant has received a SSA disability award
in response to a subsequent SSA disability application as provided under Section 2.23,
documentation which the Administrator deems sufficient to establish that the disability onset
date reflected in the SSA disability award immediately follows the date of denial of the
Participant's prior SSA disability application (due to application of Social Security
Administration res judicata rules) and that the Participant's actual Disability onset date was on or
before the Participant's Termination date. In no event shall Disability Retirement benefits be
payable before the Participant's Disability Retirement Date.
(d)Amount of Disability Retirement Benefit - The amount of the monthly Disability
Retirement benefit shall be determined as provided in the Adoption Agreement. The Adopting
Employer may elect in the Adoption Agreement to specify another method for calculation of the
benefit, and require an offset against the monthly Disability Retirement benefit for other types of
payments received by the Participant. The Participant shall receive the monthly Disability
Retirement benefit provided in this Section, or any other Monthly Retirement Benefit granted
under the Plan for which the Participant is eligible if such benefit is greater than the aforesaid
monthly Disability Retirement benefit. However, under no circumstances shall any Retired
Participant be entitled at one time to more than one type of Retirement benefit granted under the
Plan.
- 44 -
(e)No interest shall be paid on the retroactive payment of Disability benefits.
(f)Where an Employer has executed or executes a General Addendum to the
Employer's Adoption Agreement which contains provisions on payment of Disability Retirement
benefits that conflict with the procedures or time limitations established in this Section 6.04, said
provisions of the General Addendum shall govern to the extent they conflict with this Section
6.04.
Section 6.05. Cost of Living Adjustment.
(a)An Employer may elect in the Adoption Agreement to provide for a variable
annual cost-of-living adjustment in the amount of Monthly Retirement Benefits payable under
the Plan to Participants or their Beneficiaries. In such event, the amount of benefits payable
under the Plan shall be adjusted as provided in this Section, except as otherwise provided in the
Employer's Adoption Agreement.
(b)The Current Average Cost-of-Living Index Figure as defined in Section 2.21 shall
be ascertained as of the Adopting Employer's Adjustment Date in each year.
(c)Each Monthly Retirement Benefit then being received by Participants who
terminate after the date specified in the Adoption Agreement and their Beneficiaries shall
thereupon be adjusted as follows:
(1)Each Monthly Retirement Benefit shall be increased by the percentage that
the Current Average Cost-of-Living Index Figure increased over each recipient's Cost-of-
Living Base Figure, as defined in Section 2.17. If the Current Average Cost-of-Living
Index Figure is less than the Cost-of-Living Base Figure, no reduction in the Monthly
Retirement Benefit, shall be effected. Increased benefits are payable on the Adjustment
Date.
- 45 -
(2)Notwithstanding the foregoing provisions, no increase in the amount of a
Monthly Retirement Benefit due to changes in the Current Average Cost-of-Living Index
Figure effective at any annual Adjustment Date shall be in excess of a certain percentage
of the amount of the Monthly Retirement Benefit payable immediately prior to each
Participant's or Beneficiary's applicable adjustment date. Said percentage limit shall be
designated by the Employer in the Adoption Agreement.
(d)An Adopting Employer may implement one-time or ad-hoc cost-of-living
adjustments by adopting an Addendum to the Adoption Agreement to effect said increase.
(e)In lieu of the variable cost-of-living adjustment referred to in subsections (a)-(c)
above, the Employer may elect in the Adoption Agreement to provide for a fixed annual
cost-of-living adjustment, subject to any limitations imposed by the Internal Revenue Code or
regulations issued thereunder.
Section 6.06. In-Service Distribution; Suspension of Benefits Following Return to
Service.
(a) General Rules.
(1)Unless otherwise provided in this Section and in the Adoption Agreement
or any Addendum thereto, a Participant shall be required to Terminate Employment with
an Adopting Employer prior to commencing Early, Normal or Alternative Normal
Retirement benefits under such Employer's GMEBS Plan. Likewise, unless otherwise
provided in this Section and in the Adoption Agreement or any Addendum thereto, if a
Retired Participant returns to service as an Eligible Employee with an Adopting
Employer from whose Trust Fund the Retired Participant is receiving a Monthly
- 46 -
Retirement Benefit, said Monthly Retirement Benefit shall be suspended as of the date of
said return to service.
(2)Re-Computation of Benefit in Case of Suspension. In any case where the
payment of a Participant's Retirement benefit shall have been suspended, the Retirement
benefit payable on the Participant's re-retirement (whether before or after the Participant's
Normal Retirement Date) shall be the benefit computed in accordance with this Article
on the basis of the Participant's aggregate Total Credited Service and Final Average
Earnings, if applicable, at the time of the Participant's subsequent re-retirement, but
reduced by the Actuarial Equivalent of any Retirement benefits received by the
Participant prior to said suspension, and by any actuarial factors used in calculating the
benefit payable at the time of the Participant's previous Retirement. For purposes of this
subsection, the term "Actuarial Equivalent" shall mean an amount equal to the value of
Retirement benefits received, determined as of the date of the Participant's Re-retirement
and computed on the basis of the actuarial assumptions contained in Section 12.06. In no
event shall the resulting benefit be less than the benefit payable immediately prior to the
Participant's return to service with the Adopting Employer. A Retired Participant who is
reemployed as an Eligible Employee shall not be authorized to change the form of benefit
payment on the Participant's subsequent re-retirement, or to change the Post-Retirement
Beneficiary, or to name a Post-Retirement Beneficiary if one had not been previously
named. For the purposes of this Section, any such Participant's Credited Service
subsequent to reemployment by the Employer as an Eligible Employee shall commence
as of the date of the Participant's reemployment as an Eligible Employee.
- 47 -
(3)Minimum Age Parameters for In-Service Distribution. In order to
commence or continue receiving Normal or Alternative Normal Retirement benefits
without a Bona Fide Separation from Service, if permitted under the Employer's Plan, a
Participant shall be required to satisfy the following minimum age and other
requirements:
(A)For a Participant who is not a "public safety employee" at the time
the Participant applies for Normal or Alternative Normal Retirement benefits (and
a Participant who is a public safety employee at the time the Participant applies
for Normal or Alternative Normal Retirement benefits unless subparagraph
6.06(a)(3)(B) below applies), the Participant must be at least age sixty-two (62)
(or such lower age specified under applicable federal law as a safe-harbor age for
distributions during working retirement) to receive an In-Service Distribution.
(B)For a Participant who is a "public safety employee" in the service
of the Employer at the time the Participant applies for Normal or Alternative
Normal Retirement benefits, the Participant must be at least age sixty-two (62) (or
such lower age specified under applicable federal law as a safe-harbor age for
distributions during working retirement) to receive an In-Service Distribution;
provided, however, that if the Adopting Employer's Plan provides for a Normal
Retirement Age or Alternative Normal Retirement Age which applies only to
public safety employees and which is at least age fifty (50) (or such lower age
specified under applicable federal law as a safe-harbor age for distributions during
working retirement), the Participant may receive an In-Service Distribution as
long as the Participant is at least such age. For purposes of this subparagraph (B),
- 48 -
"public safety employees" are employees of the Adopting Employer who provide
police protection, firefighting services, or emergency medical services for any
area within the jurisdiction of the Adopting Employer.
(C)Notwithstanding any provision to the contrary, effective for
Employees hired during Plan Years beginning on or after the later of: January 1,
2017; or the close of the first regular legislative session of the legislative body
with the authority to amend the plan that begins on or after the date that is 3
months after the final regulations are published in the Federal Register, the Plan
will comply with the final Normal Retirement age regulations applicable to
governmental plans established in Treas. Reg. 1.401(a) – 1, as amended.
(b)Exception to General Rule; In-Service Distribution for Eligible Employees;
Continuation of Retirement Benefits Following Return to Service as an Eligible Employee After
a Bona Fide Separation from Service.
(1)In-Service Distribution Absent Termination or Bona Fide Separation from
Service Upon Qualifying for Normal Retirement. Notwithstanding the general rules
described in subsection 6.06(a)(1), an Adopting Employer may elect in the Adoption
Agreement or any Addendum thereto to permit In-Service Distribution to Participants (or
certain classes of Participants) who have satisfied the eligibility requirements for Normal
Retirement or Alternative Normal Retirement, as applicable, under the Adopting
Employer's Plan while remaining Eligible Employees under the Plan, in accordance with
and subject to the requirements of this paragraph. An Employer may elect in the
Adoption Agreement or any Addendum thereto to permit Participants or certain classes of
Participants who have (i) satisfied the qualifications for Normal Retirement or
- 49 -
Alternative Normal Retirement, as applicable, (ii) satisfied the minimum age parameters
set forth in subparagraph 6.06(a)(3), and (iii) applied for such Retirement benefits on the
Applicable Form to apply for and begin receiving their Retirement benefit as an In-
Service Distribution while in service as an Eligible Employee even though they have not
yet Terminated Employment with the Employer or to continue receiving Normal or
Alternative Normal Retirement benefits following a return to Service as an Eligible
Employee without first incurring a Bona Fide Separation from Service.
(2)Exception to General Rule; Continuing to Draw Early, Normal or
Alternative Normal Retirement Benefits After Returning to Service as Eligible Employee
Following a Bona Fide Separation from Service. Notwithstanding the requirement for
suspension of benefits upon reemployment under subsection 6.06(a)(1) above, an
Adopting Employer may elect in the Adoption Agreement or any addendum thereto to
permit Retired Participants or certain classes of Retired Participants who return to service
as Eligible Employees following a Bona Fide Separation from Service to continue
receiving Early, Normal or Alternative Normal Retirement benefits following such return
to service, regardless of the Participant's age, in accordance with and subject to the
following requirements:
(A)Reemployment as Eligible Employee after Normal Retirement
Date. An Adopting Employer may elect (notwithstanding required suspension
under Section 6.06(a)(1)) in the Adoption Agreement or any Addendum thereto to
permit Retired Participants or certain classes of Retired Participants to continue
receiving Retirement benefits if they return to service with the Adopting
Employer as an Eligible Employee on or after their Normal Retirement Date or
- 50 -
Alternative Normal Retirement Date, as applicable, and after a Bona Fide
Separation from Service. If the Employer has made such an election in the
Adoption Agreement or Addendum, then Retired Participants who are designated
in the Adoption Agreement or Addendum as eligible to continue receiving
Retirement benefits following their return to service as an Eligible Employee may
continue to receive their Monthly Retirement Benefit if they return to service with
the Adopting Employer as an Eligible Employee after a Bona Fide Separation
from Service and on or after their Normal Retirement Date or Alternative Normal
Retirement Date, as applicable.
(B)Reemployment as Eligible Employee Before Normal Retirement
Date.
(i)Suspension of Early Retirement Benefits until Normal
Retirement Date; Recommencement of Benefits upon Attainment of
Normal Retirement Date. An Adopting Employer may elect
(notwithstanding required suspension under Section 6.06(a)(1)) in the
Adoption Agreement or any Addendum thereto to provide that, with
respect to Retired Participants or certain classes of Retired Participants, if
such a Retired Participant returns to Service as an Eligible Employee
before the Normal Retirement Date (or Alternative Normal Retirement
Date, as applicable), and after a Bona Fide Separation from Service, and
remains employed until the Normal Retirement Date (or Alternative
Normal Retirement Date, as applicable), the Participant may apply for and
receive a Monthly Retirement Benefit on or after the Normal Retirement
- 51 -
Date (or Alternative Normal Retirement Date, as applicable),
notwithstanding continued service with the Employer, provided that the
Participant satisfies the minimum age parameters for an In-Service
Distribution pursuant to Section 6.06(a)(3). Said Monthly Retirement
Benefit shall be computed in accordance with this Article, based upon the
Participant's Total Credited Service and Final Average Earnings, if
applicable, through the date the Participant recommences receipt of a
Monthly Retirement Benefit pursuant to this subsection. However, except
as otherwise provided in the Adoption Agreement or in an Addendum
thereto, said Monthly Retirement Benefit shall be reduced by the Actuarial
Equivalent of any Retirement benefits received by the Participant prior to
said suspension, and by any actuarial factors used in calculating the
benefit payable at the time of the previous Retirement. For purposes of
this subsection, the term "Actuarial Equivalent" shall mean an amount
equal to the value of Retirement benefit payments received, determined as
of the date the Participant recommences receipt of a Monthly Retirement
Benefit, and computed on the basis of the actuarial assumptions contained
in Section 12.06. In no event shall the resulting Monthly Retirement
Benefit be less than the Participant's benefit payable immediately prior to
said suspension.
(ii)Exception to General Rule; Continuation of Early
Retirement Benefits Upon Return to Service as Eligible Employee
Following Bona Fide Separation from Service. Notwithstanding the
- 52 -
requirement for suspension of benefits upon reemployment under
subsection 6.06(a)(1) above, an Adopting Employer may elect in the
Adoption Agreement or any Addendum thereto to permit Retired
Participants or certain classes of Retired Participants who are receiving an
Early Retirement benefit to continue receiving said benefit if they return to
Service with the Employer after a Bona Fide Separation from Service as
an Eligible Employee at any time on or after their Early Retirement Date
but before their Normal Retirement Date (or Alternative Normal
Retirement Date, as applicable). If the Employer has made such an
election, and if a Retired Participant belongs to a class for which such
continuation of benefit payments is permitted, then upon the Retired
Participant's return to service with the Employer as an Eligible Employee
after the Early Retirement Date and after a Bona Fide Separation from
Service (or at least a six-month separation from Service, as applicable),
the Retired Participant may continue to receive a Monthly Retirement
Benefit during the period of reemployment.
(3)A Participant who receives an In-Service Distribution of Retirement
benefits while serving as an Eligible Employee or who receives Retirement Benefits
following a return to service as an Eligible Employee shall not be authorized to change
the form of benefit payment, or to change the Post-Retirement Beneficiary on the
Participant's subsequent termination of employment, or to name a Post-Retirement
Beneficiary if one had not been previously named.
- 53 -
(4)With respect to Participants described in Section 6.06(b)(1) and (2) above,
except as otherwise provided in the Adoption Agreement or in an Addendum thereto,
upon said Participants' subsequent termination of employment or vacation of office, as
applicable, their Monthly Retirement Benefit shall be computed in accordance with this
Article on the basis of their aggregate Total Credited Service and Final Average Earnings,
if applicable, at the time of such termination of employment or vacation of office, but it
shall be reduced by the Actuarial Equivalent of any Retirement benefits received prior to
re-retirement, and by any actuarial factors used in calculating the benefit payable at the
previous Retirement. For purposes of this subsection, the term "Actuarial Equivalent"
shall mean an amount equal to the value of Retirement benefits received, determined as
of the date of the Participant's re-retirement and computed on the basis of the actuarial
assumptions contained in Section 12.06. In no event shall the resulting benefit be less
than the benefit payable immediately prior to the Participant's re-retirement.
(c) Exception to General Rule; In-Service Distribution for Individuals Who Are Not
Eligible Employees; Continuation of Retirement Benefits Following Return to Service in a
Capacity Other Than as an Eligible Employee After a Bona Fide Separation from Service.
(1)In-Service Distribution Prior to Termination. Notwithstanding the general
rule in Section 6.06(a)(1) and except as may be otherwise provided in the Adoption
Agreement or an Addendum thereto, regardless of whether an Employer elects to permit
active Participants to receive In-Service Distributions while serving as Eligible
Employees under the Plan pursuant to paragraph 6.06(b)(1) above, an individual who is
in service with the Adopting Employer, who previously accrued a benefit as an Eligible
Employee under the Plan but who is not currently an Eligible Employee under the Plan,
- 54 -
4873-6268-0344.5
may commence receipt of Retirement benefits while still in service with the Adopting
Employer provided that such individual (i) has satisfied the Adopting Employer's
qualifications for Early Retirement, Normal Retirement or Alternative Normal
Retirement; (ii) has satisfied the minimum age and other applicable requirements
established in subparagraph 6.06(a)(3) above; and (iii) applies for such Retirement
benefit on the Applicable Form.
(2)Continued Receipt of Retirement Benefits Upon Return to Service in a
Capacity Other Than as an Eligible Employee. Except as may be otherwise provided in
the Adoption Agreement or an Addendum thereto, an Adopting Employer may engage
any Retired Participant receiving benefits hereunder in a capacity other than as an
Eligible Employee and such engagement shall not terminate or suspend such benefits.
Effective with respect to Retired Participants who return to service in a capacity other
than as an Eligible Employee, in order to continue receiving benefits after returning to
service, the Retired Participant (i) must have had a Bona Fide Separation from Service
prior to returning to service in a capacity other than as an Eligible Employee under the
Plan; or (ii) must satisfy the minimum age parameters established in subparagraph
6.06(a)(3) above.
(3)An individual who receives Retirement benefits while in the service of the
Adopting Employer pursuant to paragraphs 6.06(c)(1) and (2) above shall not be
authorized to change the form of benefit payment, or to change the Post-Retirement
Beneficiary on the Participant's subsequent Termination of Employment, or to name a
Post-Retirement Beneficiary if one had not been previously named. An individual who
commences or continues receiving benefits while in the service of the Adopting
- 55 -
Employer in a capacity other than as an Eligible Employee pursuant to paragraph
6.06(c)(1) or 6.06(c)(2) shall not accrue benefits or service credit for any purpose under
the Plan during the individual's period of continued service with the Adopting Employer
during which the individual is not an Eligible Employee.
(4)In the event that an individual described in paragraph 6.06(c)(1) or (2)
subsequently becomes an Eligible Employee under the Plan, the provisions applicable to
In-Service Distribution to Eligible Employees or to Retired Participants who return to
Service with the Adopting Employer as an Eligible Employee, as applicable, under
subsection 6.06(b) above and the Adopting Employer's Adoption Agreement or
Addendum shall apply with respect to such individual. Except as otherwise provided in
the Adoption Agreement or in an Addendum thereto, upon such a Participant's
subsequent Termination of Employment or vacation of office, as applicable, the
Participant's Monthly Retirement Benefit shall be computed in accordance with this
Article on the basis of the Participant's aggregate Total Credited Service and Final
Average Earnings, if applicable, at the time of such Termination of Employment or
vacation of office. However, this Monthly Retirement Benefit shall be reduced by the
Actuarial Equivalent of any Retirement benefits received prior to re-retirement, and by
any actuarial factors used in calculating the benefit payable at the previous Retirement.
For purposes of this subsection, the term "Actuarial Equivalent" shall mean an amount
equal to the value of Retirement benefits received, determined as of the date of the
Participant's re-retirement and computed on the basis of the actuarial assumptions
contained in Section 12.06. In no event shall the resulting benefit be less than the benefit
payable immediately prior to the Participant's re-retirement.
- 56 -
(d)Death in Service After Retirement. If a Retired Participant who returns to service
with an Adopting Employer as an Eligible Employee or an active Participant commences
Retirement benefits while remaining in service as an Eligible Employee and dies during the
period of continuous employment or during the period of reemployment, as applicable, and
before re-retirement, then the Participant's Post-Retirement Beneficiary, if any, shall be entitled
to receive the monthly post-retirement survivor benefit payable, if any, taking into account any
additional Credited Service accrued prior to the date of the Participant's death in-service. Such
post-retirement survivor benefit shall be reduced by the Actuarial Equivalent of any Retirement
benefits received by the Participant prior to said Participant's death. In no event shall the
resulting post-retirement survivor benefit (after any actuarial reduction provided for in the
preceding sentence) be less than the benefit that would have been payable to such Post-
Retirement Beneficiary had the Participant not been employed as an Eligible Employee on or
after the Participant's Retirement Date. This provision shall not be interpreted to permit payment
to a Pre-Retirement Beneficiary in the event of a Retired Participant's death during
reemployment.
(e)Suspension of Disability Benefits.
(1)Any Disability Retirement Benefit payable under the Plan to any
Participant shall be suspended as of the first day of the month coinciding with or
following the date the Participant's Disability ceases. A Participant's Disability shall be
considered to have ceased upon the earliest of the following dates: (1) with respect to
Participants whose entitlement to a Disability benefit is based upon receipt of disability
insurance benefits under the Federal Social Security Act, the date as of which the Social
Security Administration determines that the Participant is no longer disabled; or (2) with
- 57 -
respect to Participants whose entitlement to a Disability benefit is based upon a
determination by the Pension Committee, the date as of which the Pension Committee
determines that the Participant is no longer disabled as defined under Code Section 72(m),
based upon an examination by a physician chosen by the Pension Committee. With
respect to those Participants whose entitlement to a Disability benefit is based upon
receipt of disability insurance benefits under the Federal Social Security Act, the
Participant shall be required to notify the Pension Committee Secretary within sixty (60)
days after the Participant receives notice that the Social Security Administration has
determined that the Participant is no longer disabled. With respect to those Participants
whose entitlement to a Disability benefit is based upon receipt of disability insurance
benefits under the Federal Social Security Act, the Pension Committee shall have the
right to require the Participant to prove at any time, as a condition for continued receipt
of Disability benefits under the Plan, continued eligibility for receipt of disability
insurance benefits under the Federal Social Security Act, as amended. With respect to
Participants whose entitlement to a Disability benefit is based upon a determination of
Disability by the Pension Committee, the Pension Committee shall have the right to
require, as a condition for continued receipt of Disability benefits, that the Participant be
examined at any time by a physician chosen by the Pension Committee. In the event that
any Participant fails or refuses to submit to a physical examination or to obtain and
provide other information requested by the Pension Committee to confirm continuation
of a Disability, then the Participant's Disability benefits shall be suspended as of the first
day of the month following expiration of the ninety (90) day period following the Pension
Committee's request for such examination or information, unless the Pension Committee
- 58 -
determines in its discretion that the failure to comply within ninety (90) days was due to
circumstances beyond the Participant's control, in which case the ninety (90) day time
limit may be extended by the Pension Committee and suspension may be deferred as
determined by the Pension Committee.
(2)Notwithstanding any provision of this subsection 6.06(e) to the contrary,
and except as otherwise provided in an Employer's Adoption Agreement or Addendum
thereto, in the event that a Participant, who shall have retired or been retired for
Disability, returns to service as an Eligible Regular Employee or becomes an Eligible
Regular Employee of said Employer, the Participant's Disability Retirement benefit shall
be suspended as of the date of such return to or commencement of service as an Eligible
Regular Employee.
(3)Nothing in paragraph 6.06(e)(2) shall be construed to require the
suspension of a Participant's Disability Retirement benefit upon the Participant's return to
service as an elected or appointed member of the Governing Authority after the
commencement of such benefit unless and until the Participant is determined to no longer
have a Disability, or unless suspension of a Participant's Disability Retirement benefits is
otherwise required under subparagraph 6.06(e)(1).
(f)Suspension of Disability Benefit; Right to Other Benefits.
(1)In any case where the payment of a Participant's Disability Retirement
benefit is suspended, regardless of whether the Participant returns to service with the
Employer, the period of absence from employment due to such Disability shall not be
counted as Credited Service. Any Participant who shall have Retired or been Retired for
Disability and who has been or shall be subsequently declared ineligible for a Disability
- 59 -
Retirement benefit because of the cessation of said Disability, or as otherwise provided
pursuant to subsection 6.06(e) above, shall have a right to any benefit afforded under any
other provision of this Plan to which the Participant or the Participant's beneficiary might
otherwise be entitled. In such case, any Disability Retirement payments made prior to the
required suspension date shall be retained by the Retiree and disregarded in computing
any other benefit payable under the Plan.
(2)Notwithstanding the foregoing, nothing herein shall be construed to allow
a Retired Participant who shall have Retired or been Retired due to Disability, who
returns to service with the Employer, and who subsequently re-retires to elect a different
benefit payment form or name a new post-retirement beneficiary upon re-retirement.
(3)Unless otherwise provided in an Employer's Adoption Agreement or in an
Addendum thereto, in the event that a Retired Participant who is receiving a Disability
Retirement benefit returns to service as an elected or appointed member of the Governing
Authority, and the Participant's Disability Retirement benefit is not suspended, any
Disability Retirement payments made prior to the Participant's return to service or during
such period(s) of service as an elected or appointed member of the Governing Authority
following such return shall be retained by the Participant and disregarded in computing
any other benefit payable under the Plan upon the Participant's subsequent vacation of
office.
ARTICLE VII.
OPTIONAL FORMS OF RETIREMENT INCOME
Section 7.01. Standard Benefit Payment Form; Other Payment Options. With
respect to retirement applications received by GMEBS on or after July 1, 2011, a Participant may
elect, or may revoke a previous election and make a new election, at any time prior to the
- 60 -
Participant's effective Retirement Date, to have Retirement benefits payable under the standard
benefit payment option or under one of the other benefit payment options set forth in Section
7.03. The standard benefit payment option is a monthly retirement benefit payable to the
Participant during the Participant's lifetime only. At the death of the Participant all payments
will cease and no further benefits will be payable to the estate of the Participant or other persons,
except as otherwise provided in Subsection 8.12(b). The standard benefit payment form is
referred to in the Basic Plan Document as Option A. The benefit shall be paid in accordance
with and subject to the terms of the benefit payment option elected. Election of any option shall
be made by the Participant in writing on the Applicable Form, and shall be subject to approval by
GMEBS.
Section 7.02. Designation of Post-Retirement Beneficiary. With respect to
retirement applications received by GMEBS on or after July 1, 2011, if the Participant elects
Option B (Joint and Survivor Option with Pop-Up) or Option C (Period Certain and Life
Option.) in Section 7.03, the Participant shall designate a Post-Retirement Beneficiary to receive
a survivor benefit in accordance with and subject to the terms of such Option. Designation of a
Post-Retirement Beneficiary may be revoked or changed by the Participant by submitting a new
completed Retirement Application at any time prior to the Participant's effective Retirement date.
Only the last such designation of a Post-Retirement Beneficiary shall have effect, and any new
designation of a Post-Retirement Beneficiary shall invalidate, supersede, and revoke any prior
designation.
Section 7.03. Description of Options. With respect to retirement applications
received by GMEBS on or after July 1, 2011, the amount of any optional benefit set forth below
shall be the Actuarial Equivalent of the amount of the standard benefit that would otherwise be
- 61 -
payable to the Participant under Section 7.01 (monthly retirement benefit payable to the
Participant during the Participant's lifetime only, referred to as "OPTION A").
(a)OPTION B: Joint and Survivor Option with Pop-Up. A retirement benefit
computed and paid in the same manner as Option A above, but with a decrease in the retirement
benefit to account for the survivor benefit and the pop-up benefit provided under this Option B.
If the Participant elects Option B, then the Participant will receive a decreased retirement benefit
which shall be payable during the lifetime of the Participant. If the Participant's designated Post-
Retirement Beneficiary should survive the Participant (except as provided in subsections (1) and
(2)below with respect to the Post-Retirement Beneficiary's death before the Participant or the
divorce of the Participant and Post-Retirement Beneficiary) the benefit shall continue to be paid
to the Post-Retirement Beneficiary after the Participant's death during the lifetime of the Post-
Retirement Beneficiary in the same amount (100%) or in such smaller amount (75%, 50%, or
25%), as the Participant has designated on the retirement application. This option shall be
known as Option B. The Participant's retirement benefit under Option B shall be calculated in
accordance with Section 12.02(a) or Section 12.02(b), whichever is applicable.
(1)Death of Post-Retirement Beneficiary Before Participant — In the event
that the Participant's Post-Retirement Beneficiary dies before the Participant and after
Retirement benefit payments have commenced, and provided the Participant furnishes
GMEBS with proper proof of the Beneficiary's death within one (1) year after such death,
the requirement for a reduction in the Participant's monthly retirement benefit on account
of the Participant's election of Option B shall no longer apply (resulting in an increase, or
"pop-up", in the Participant's monthly retirement benefit), effective as of the first day of
the month following the Post-Retirement Beneficiary's death. Effective with respect to
- 62 -
monthly payments made on and after such date, the amount of the Participant's monthly
retirement benefit shall be equal to the monthly amount that would have otherwise been
payable to the Participant under Article VI, had the Participant elected Option A.
However, if the Participant fails to furnish the Plan with proper proof of the Post-
Retirement Beneficiary's death within the one (1) year period referred to above, then said
change in monthly retirement benefit shall not become effective until the first day of the
month following the date such proof is submitted to GMEBS. If the Post-Retirement
Beneficiary does not survive the Participant, all payments shall cease at the death of the
Participant and no further benefits will accrue to the Participant's estate or to other
persons.
(2)Divorce of Participant and Post-Retirement Beneficiary—If the Participant
designates the Participant's Spouse as Post-Retirement Beneficiary and provides GMEBS
with proof that GMEBS in its sole discretion deems sufficient to establish that the Post-
Retirement Beneficiary is the Participant's Spouse as of the Participant's effective
retirement date, and if the Participant and the Post-Retirement Beneficiary become
divorced after retirement benefit payments have commenced, then the Participant is
permitted but not required to request a "pop-up" in the Participant's monthly retirement
benefit, in accordance with and subject to the requirements of this subsection (2). A
Participant who requests a pop-up pursuant to this subsection (2) will be bound by the
provisions of this subsection and any other terms and conditions for receipt of said pop-
up as set forth in an Applicable Form provided by GMEBS for such purpose. Such
Participant shall furnish proof to GMEBS which GMEBS in its sole discretion deems
sufficient to confirm the Participant's divorce from the Post-Retirement Beneficiary and
- 63 -
the Participant's eligibility for the pop-up benefit provided herein, which may include but
may not be limited to a court-certified copy of a valid divorce decree. In the event that
the conditions of this subsection (2) are satisfied, the requirement for a reduction in the
Participant's monthly retirement benefit on account of the election of Option B will no
longer apply; provided, however, that GMEBS may deny the Participant's application for
the pop-up in the event that GMEBS, in its sole discretion, determines that such denial is
prudent or necessary based on the terms of the applicable divorce decree. Any change in
the monthly retirement benefit resulting from the pop-up, if approved by GMEBS, will be
effective as of the first day of the month following GMEBS' receipt of said Applicable
Form completed by the Participant, and after GMEBS' receipt of said proof evidencing
divorce. Effective with respect to monthly payments made on and after such date, the
amount of the Participant's monthly retirement benefit will be equal to the monthly
amount that would have otherwise been payable to the Participant under Article VI had
the Participant elected Option A. On and after said date, the Participant's Post-
Retirement Beneficiary will not be eligible to receive any survivor benefits following the
Participant's death, notwithstanding any prior designation made by the Participant or the
later remarriage of the Participant and the Post-Retirement Beneficiary. All payments
shall cease at the death of the Participant and no further benefits will accrue to the
Participant's estate or to other persons. This provision shall not be construed to permit a
Participant to change the form of benefit payment, to change the Post-Retirement
Beneficiary after the Participant's effective Retirement date, or to name a new Post-
Retirement Beneficiary following the Participant's divorce from the Post-Retirement
Beneficiary. Nor shall this provision be construed to require or permit payment of all or
- 64 -
a portion of a Participant's retirement benefit to a former spouse pursuant to a domestic
relations order.
(b)OPTION C: Period Certain and Life Option. A decreased benefit payable
monthly to the Participant during the Participant's lifetime and, in the event of the Participant's
death within a period of specified years, either five (5), ten (10), fifteen (15), or twenty (20)
years after benefit commencement, the same monthly amount shall be payable for the balance of
such period to the Post-Retirement Beneficiary designated by the Participant. If the Post-
Retirement Beneficiary survives the Participant but dies before the end of such period, any
unpaid monthly amounts that would have otherwise been payable to the Post-Retirement
Beneficiary for the remainder of said period following the Post-Retirement Beneficiary's death
shall be paid to the Post-Retirement Beneficiary's estate. If the Post-Retirement Beneficiary does
not survive the Participant, all payments shall cease at the death of the Participant and no further
benefits will accrue to the Participant's estate or to other persons except as provided in Article
VIII. This option shall be known as Option C. The Retirement benefit under Option C shall be
calculated in accordance with Section 12.03.
Section 7.04. Cancellation of Election. The election by a Participant of any option in
this Article VII shall be null and void if either the Participant or the Participant's designated Post-
Retirement Beneficiary dies before the Participant's effective Retirement date.
Section 7.05. Rule for Small Benefits.
(a)Effective January 1, 2002, the present value of a Plan benefit shall be distributed
in a cash single sum payment to the Participant, Terminated Vested Participant, or Pre-
Retirement Beneficiary, as applicable, if the present value of said Plan benefit payable to the
- 65 -
recipient does not exceed Five Thousand Dollars ($5,000) on the date of distribution. The
present value of said Plan benefit shall be determined in accordance with Article XII.
(b)Effective for distributions commencing on or after March 28, 2005, if a
distribution to be made under subsection (a) is greater than One Thousand Dollars ($1,000), is an
eligible rollover distribution, and the recipient of the distribution does not elect to have the
distribution paid directly to an eligible retirement plan specified by the recipient in a direct
rollover or does not elect to receive the distribution directly, the Administrator will pay the
distribution in a direct rollover to an individual retirement plan designated by the Administrator.
(c)Notwithstanding the provisions of subsections (a) and (b), effective on and after
July 1, 2007, no distribution will be made under this Section unless and until the recipient of the
distribution makes an election to either have the distribution paid directly to an eligible
retirement plan specified by the recipient in a direct rollover or to receive the distribution directly
in cash.
Section 7.06. Distributions.
(a)Distributions payable as of any date shall be made on or as soon as
administratively feasible after that date.
(b)In a contributory plan, interest shall be paid on any refund of employee
contributions only as specified in the Adoption Agreement.
Section 7.07. Compliance with Internal Revenue Section 401(a)(9). All
distributions shall be made in compliance with Article X.
Section 7.08. Compliance with Internal Revenue Section 415. All benefit options
must comply with the limitations of Code Section 415, pursuant to Article XI and as applicable
to governmental plans.
- 66 -
ARTICLE VIII.
DEATH BENEFITS
Section 8.01. Death in Service Prior to Retirement. In the event a Participant's
employment or term of office is Terminated by reason of death prior to Retirement, there shall be
paid to the Pre-Retirement Beneficiary the in-service death benefit elected by the Employer in
the Adoption Agreement, provided the requirements of this Article are satisfied and except as
otherwise provided under this Article.
Section 8.02. Actuarial Reserve In-Service Death Benefit. An Employer may elect
in the Adoption Agreement to provide the Actuarial Reserve In-Service Death Benefit for one or
more classes of Eligible Employees. In such case, the Employer shall designate in the Adoption
Agreement the minimum service and other eligibility requirements a Participant must satisfy in
order to be entitled to receive such benefit. Provided a Participant satisfies such requirements,
then in the event the Participant's employment with the Adopting Employer is terminated by
reason of the Participant's death prior to Retirement, and except as otherwise provided in Section
8.07(b), there shall be paid to the Participant's Pre-Retirement Beneficiary a lifetime monthly
death benefit actuarially equivalent to the reserve required for the Participant's anticipated
Normal Retirement benefit. In calculating the Normal Retirement benefit under the provisions of
this Section, the following assumptions shall be used:
(a)The Participant's age at the time of death is equal to the Normal Retirement Age
as specified by the Employer in the Adoption Agreement, or the Participant's attained age if said
attained age is greater than the Normal Retirement Age; and
(b)The Participant's Total Credited Service shall include the amount of Total
Credited Service accrued prior to the date of the Participant's death. The Employer may elect in
the Adoption Agreement to include additional imputed Credited Service in the calculation, but in
- 67 -
no event shall the amount of Total Credited Service used in the calculation exceed the sum of
actual service performed plus ten (10) calendar years. The death benefit under this Section shall
be calculated using the factors contained in Section 12.04.
(c)With respect to those Adopting Employers who have elected in their Adoption
Agreement to provide the Actuarial Reserve In-Service Death Benefit, an Eligible Regular
Employee must have at least one (1) year of Credited Service with the Adopting Employer to be
eligible for the Actuarial Reserve In-Service Death Benefit; provided, however, that this one (1)
year minimum shall not apply with respect to an Eligible Regular Employee whose immediate
prior employment was with another GMEBS Adopting Employer and who had at least one (1)
year of Credited Service with such prior GMEBS Adopting Employer. The one (1) year
minimum and the exceptions thereto described in this subsection 8.02(c) shall not supersede
eligibility conditions specified in an Adopting Employer's Adoption Agreement or Addendum
thereto which specify a requirement of more or less than one (1) year of Credited Service with
the Adopting Employer and/or other minimum age or service requirements that are inconsistent
with this Section 8.02 to be eligible for the Actuarial Reserve In-Service Death Benefit. Except
as otherwise provided in an Adopting Employer’s Adoption Agreement or Addendum thereto,
elected or appointed members of the Governing Authority shall not be subject to a minimum
Service requirement to be eligible for the Actuarial Reserve In-Service Death Benefit.
Section 8.03. Auto A In-Service Death Benefit. An Employer may elect in the
Adoption Agreement to provide the Auto A in-service death benefit for one or more classes of
Eligible Employees. In such case, the Employer shall designate in the Adoption Agreement the
minimum Service and other eligibility requirements a Participant must satisfy in order to be
entitled to such benefit. Provided a Participant satisfies such requirements, then in the event that
- 68 -
the Participant's employment with the Adopting Employer is terminated by reason of the
Participant's death prior to Retirement, and except as otherwise provided in Section 8.06(b),
there shall be paid to the Participant's Pre-Retirement Beneficiary a lifetime monthly death
benefit, as follows:
(a)Monthly Death Benefit Payable to Spouse. If the Pre-Retirement Beneficiary to
whom the in-service death benefit is payable under this Section is the Participant's Spouse, then
the lifetime monthly death benefit payable to said Spouse shall commence on the first day of the
month coinciding with or immediately following the date of the Participant's death.
Alternatively, the Spouse may elect to defer benefit payment commencement until the first day
of any month up to and including the date the Participant would have attained Normal
Retirement Age as defined in the Employer's Adoption Agreement. A Spouse shall be
considered to have deferred benefit payment commencement until the first day of the month
following the date the Spouse makes application for payment of death benefits. If the Pre-
Retirement Beneficiary to whom the in-service death benefit is payable under this Section is not
the Spouse of the Participant, then the lifetime monthly death benefit payable to said Beneficiary
shall commence on the first day of the month coinciding with or immediately following the date
of the Participant's death.
(b)Computation of Monthly Death Benefits. Benefits under this Section shall be
computed as of the date of the Participant's death, based upon the applicable benefit formula in
effect on said date, as follows:
(1)Participant Death Before Early Retirement Age; Payment Before Early
Retirement Age. If a Participant dies before attaining Early Retirement Age as defined in
the Employer's Adoption Agreement, and if benefit payments commence to a Pre-
- 69 -
Retirement Beneficiary before the Participant would have attained Early Retirement Age,
then the monthly death benefit payable to said beneficiary shall be the Actuarial
Equivalent of the monthly Retirement benefit amount that would have otherwise been
payable to the Participant, assuming the Participant: (i) terminated employment on the
Participant's date of death; (ii) survived until Normal Retirement Age as defined in the
Adoption Agreement; and (iii) elected to retire upon attaining Normal Retirement Age
with the optional form of Retirement payment designated in Section 7.03 as Option B at
one hundred percent (100%), and then died. Said benefit shall be calculated in
accordance with the actuarial assumptions specified in Section 12.06.
(2)Participant Death Before Early Retirement Age; Deferred Payment by
Spouse Until After Early Retirement Age. If the Participant dies before attaining Early
Retirement Age as defined in the Employer's Adoption Agreement and a Spouse who is
eligible to receive the in-service death benefit hereunder defers payment until a date
which is on or after the date the Participant would have attained Early Retirement Age,
then the monthly death benefit payable to the Spouse Beneficiary shall be the monthly
Retirement benefit that would have otherwise been payable to the Participant, assuming
that the Participant: (i) terminated employment on the date of death; (ii) survived until the
date upon which the deferred benefit payments commence in accordance with the Spouse
Beneficiary's selected benefit commencement date; and, (iii) elected to retire on the
benefit commencement date with the optional form of Retirement payment designated in
Section 7.03 as Option B at one hundred percent (100%), and then died.
(3)Participant Death After Early Retirement Age; Payment Upon Death. If
the Participant dies after attaining Early Retirement Age as defined in the Employer's
- 70 -
Adoption Agreement, and if benefit payments commence to a Pre-Retirement Beneficiary
on the first day of the month coinciding with or immediately following the date of the
Participant's death, then the monthly death benefit payable to said Pre-Retirement
Beneficiary shall be the monthly benefit that would have otherwise been payable to the
Participant, assuming the Participant: (i) retired on the date of death, and (ii) elected the
optional form of Retirement payment designated in Section 7.03 as Option B at one
hundred percent (100%), and then died.
(4)Participant Death After Early Retirement Age; Deferred Payment by
Spouse. If the Participant dies after attaining Early Retirement Age as defined in the
Employer's Adoption Agreement, and if a Spouse who is eligible to receive the Auto A
in-service death benefit hereunder defers payment in accordance with this Section, then
the monthly benefit payable to the Spouse Beneficiary shall be the monthly Retirement
benefit that would have otherwise been payable to the Participant, assuming that the
Participant: (i) terminated employment on the Participant's date of death; (ii) survived
until the date upon which the deferred benefit payments commence in accordance with
the Spouse beneficiary's selected commencement date, and (ii) elected to retire on the
benefit commencement date with the optional form of Retirement payment designated in
Section 7.03 as Option B at one hundred percent (100%), and then died.
Section 8.04. Designation of Beneficiary. Unless otherwise provided in the Adoption
Agreement or an Addendum thereto, a Participant may designate, on an Applicable Form
provided for that purpose, one person as Primary Pre-Retirement Beneficiary. If the Participant's
employment with the Employer is terminated by reason of the Participant's death prior to the
Participant's Retirement and if as of the date of the Participant's death the Participant has
- 71 -
satisfied the minimum service and other eligibility requirements to be entitled to an in-service
pre-retirement death benefit, said Primary Pre-Retirement Beneficiary shall receive the monthly
pre-retirement death benefit elected by the Employer in the Adoption Agreement, provided the
Primary Pre-Retirement Beneficiary survives the Participant by at least thirty-two (32) days in
accordance with O.C.G.A. § 47-1-15 (a copy of which is included in the Appendix hereto). The
Participant may additionally designate, on an Applicable Form provided for that purpose, one
person as Secondary Pre-Retirement Beneficiary. The monthly death benefit otherwise payable
to the Primary Pre-Retirement Beneficiary hereunder shall be payable to the Participant's
designated Secondary Pre-Retirement Beneficiary in the event that: (1) the Participant's
employment with the Employer is terminated by reason of the Participant's death prior to the
Participant's Retirement; (2) the Primary Pre-Retirement Beneficiary does not survive the
Participant by at least thirty-two (32) days; and (3) the Secondary Pre-Retirement Beneficiary
survives the Participant by at least thirty-two (32) days.
Section 8.05. Change of Beneficiary. Designation of a Primary or Secondary Pre-
Retirement Beneficiary may be changed by the Participant in writing on an Applicable Form
provided for that purpose at any time prior to Retirement. Only the last such designation prior to
Retirement shall have effect and any new designation of a Primary or Secondary Pre-Retirement
Beneficiary invalidates, supersedes, and revokes any prior designation.
Section 8.06. Auto A In-Service Pre-Retirement Death Benefit; Default
Beneficiary; Payment to Surviving Spouse or to Estate Where Benefit Not Payable to
Designated Primary or Secondary Pre-Retirement Beneficiary.
(a)Except as otherwise provided in an Adopting Employer's Adoption Agreement or
Addendum, in the absence of a designation by the Participant, or if there is no Primary or
- 72 -
Secondary Pre-Retirement Beneficiary to whom the Auto A in-service pre-retirement death
benefit is payable under this Article, then the Auto A in-service pre-retirement death benefit shall
be paid to the Participant's surviving Spouse in accordance with this subsection. In such case,
the Participant's surviving Spouse shall be considered the Pre-Retirement Beneficiary under the
Plan. For purposes of this subsection, the term "surviving" shall mean surviving the Participant
by at least thirty-two (32) days.
(b)Except as otherwise provided in an Adopting Employer's Adoption Agreement or
Addendum, if there is no Pre-Retirement Beneficiary (i.e., a designated Pre-Retirement
Beneficiary or surviving Spouse) to whom the Auto A in-service death benefit is payable, then a
lump sum payment equal to fifty percent (50%) of the Actuarial Equivalent of the Participant's
Vested Accrued Benefit, if any, shall be paid to the Participant's estate in lieu of the lifetime
monthly benefit which would otherwise be payable to the Pre-Retirement Beneficiary. Such
lump sum Actuarial Equivalent shall be determined as if the Participant had Terminated
Employment on the date immediately preceding the Participant's date of death and received a
lump sum distribution of said benefit under Section 7.05, determined without reference to the
maximum cash-out limits of said Section, and using the assumptions set forth in Section 12.06.
Section 8.07. Actuarial Reserve In-Service Pre-Retirement Death Benefit;
Payment to Surviving Spouse or to Estate Where Benefit Not Payable to Designated
Primary or Secondary Pre-Retirement Beneficiary.
(a)Except as otherwise provided in an Adopting Employer's Adoption Agreement or
Addendum, with respect to the Actuarial Reserve in-service death benefit only, if there is no
Primary or Secondary Pre-Retirement Beneficiary to whom the death benefit is payable, then the
Actuarial Reserve in-service pre-retirement death benefit shall be paid to the Participant's
- 73 -
surviving Spouse in accordance with this Section, in which case the Participant's surviving
Spouse shall be considered the Pre-Retirement Beneficiary under the Plan. For purposes of this
Section, the term "surviving" shall mean surviving the Participant by at least thirty-two (32) days.
(b)If there is no Pre-Retirement Beneficiary (i.e., a designated Pre-Retirement
Beneficiary or surviving Spouse) to whom the death benefit is payable, then the Actuarial
Equivalent of the Participant's vested Accrued Retirement Benefit shall be paid to the
Participant's estate in lieu of the lifetime monthly benefit which would otherwise be payable to a
Pre-Retirement Beneficiary. Such Actuarial Equivalent shall be determined as if the Participant
had terminated employment on the date immediately preceding the Participant's date of death
and received a lump sum distribution of benefits under Section 7.05, determined without
reference to the maximum cash-out limits of said Section, and using the assumptions set forth in
Section 12.06.
Section 8.08. Terminated Vested Death Benefits. If the Employer elects in the
Adoption Agreement to provide a death benefit for Terminated Vested Participants or for certain
classes of Terminated Vested Participants, then in the event such a Terminated Vested
Participant dies before the effective Retirement Date, there shall be paid to the Pre-Retirement
Beneficiary the terminated vested death benefit specified in the Adoption Agreement, provided
the requirements of this Article are satisfied and except as otherwise provided in this Article.
Notwithstanding any provision to the contrary, effective October 1, 2016, an Adopting Employer
that had not previously elected in its Adoption Agreement or Addendum thereto to provide a
Terminated Vested death benefit to one or more classes of Participants shall be deemed to have
elected by default to provide the Terminated Vested Auto A Death Benefit to such class or
classes of Participants who terminate employment on or after such date.
- 74 -
Section 8.09. Terminated Vested Auto A Death Benefit. The Employer may elect
in the Adoption Agreement to provide the Auto A Death Benefit for one or more classes of
Terminated Vested Participants. In such case, the Employer shall designate in the Adoption
Agreement the minimum Service and other eligibility requirements a Terminated Vested
Participant must satisfy in order to be entitled to such benefit. Provided a Terminated Vested
Participant satisfies such requirements, then in the event that the Terminated Vested Participant
dies prior to said Participant's effective Retirement date, the Participant's Pre-Retirement
Beneficiary may apply to receive a lifetime monthly death benefit subject to the provisions of
this Section. If the Terminated Vested Participant's Pre-Retirement Beneficiary is the
Terminated Vested Participant's Spouse, then the lifetime monthly death benefit payable to the
Spouse Beneficiary under this Section shall commence on the first day of the month coinciding
with or immediately following the date of the Terminated Vested Participant's death.
Alternatively, the Spouse Beneficiary may elect to defer benefit payment commencement until
the first day of any month up to and including the date the Participant would have attained
Normal Retirement Age as determined under the Employer's Adoption Agreement. A Spouse
designated as beneficiary shall be considered to have deferred benefit payment commencement
until the first day of the month following the date the Spouse makes application for payment of
death benefits. If the Pre-Retirement Beneficiary is not the Spouse of the Terminated Vested
Participant, then the lifetime monthly death benefit payable to the beneficiary under this Section
shall commence on the first day of the month coinciding with or immediately following the date
of the Terminated Vested Participant's death. Benefits under this Section shall be computed as
follows:
- 75 -
(a)Terminated Vested Participant Death Before Early Retirement Age; Payment
Before Early Retirement Age. If a Terminated Vested Participant dies before attaining Early
Retirement Age as defined in the Adoption Agreement, and if benefit payments commence to a
beneficiary before the Terminated Vested Participant would have attained Early Retirement Age,
then the monthly death benefit payable to the beneficiary shall be the Actuarial Equivalent of the
monthly Retirement benefit amount that would have otherwise been payable to the Terminated
Vested Participant, assuming: (i) the Terminated Vested Participant survived until Normal
Retirement Age; and (ii) the Terminated Vested Participant elected the optional form of
Retirement payment designated herein as Option B at one hundred percent (100%), and then died.
Said benefit shall be calculated in accordance with the actuarial assumptions specified in Section
12.06.
(b)Terminated Vested Participant Death Before Early Retirement Age; Deferred
Payment by Spouse Until After Early Retirement Age. If the Terminated Vested Participant dies
before attaining Early Retirement Age as defined in the Adoption Agreement and a Spouse
designated as beneficiary defers payment until a date which is on or after the date the Terminated
Vested Participant would have attained Early Retirement Age, then the monthly death benefit
payable to the Spouse shall be the monthly Retirement benefit that would have otherwise been
payable to the Terminated Vested Participant, assuming that: (i) the Terminated Vested
Participant survived until the date upon which the deferred benefit payments commence in
accordance with the Spouse's selected benefit commencement date; and, (ii) the Terminated
Vested Participant elected on such date to retire with the optional form of Retirement payment
designated herein as Option B at one hundred percent (100%), and then died.
- 76 -
(c)Terminated Vested Participant Death After Early Retirement Age; Payment Upon
Death. If the Terminated Vested Participant dies after attaining Early Retirement Age as defined
in the Adoption Agreement, and if benefit payments commence to a beneficiary on the first day
of the month coinciding with or immediately following the date of the Terminated Vested
Participant's death, then the monthly death benefit payable to the beneficiary shall be the
monthly benefit that would have otherwise been payable to the Terminated Vested Participant,
assuming: (i) the Terminated Vested Participant retired on the date of death, and (ii) the
Terminated Vested Participant elected the optional form of Retirement payment designated
herein as Option B at one hundred percent (100%), and then died.
(d)Terminated Vested Participant Death After Early Retirement Age; Deferred
Payment by Spouse. If the Terminated Vested Participant dies after attaining Early Retirement
Age, and if a Spouse designated as beneficiary defers payment in accordance with this Section,
then the monthly benefit payable to the Spouse shall be the monthly Retirement benefit that
would have otherwise been payable to the Terminated Vested Participant, assuming that: (i) the
Terminated Vested Participant survived until the date upon which the deferred benefit payments
commence in accordance with the Spouse's selected commencement date, and (ii) the
Terminated Vested Participant elected to retire on such date with the optional form of Retirement
payment designated herein as Option B at one hundred percent (100%), and then died.
(e)Auto A Terminated Vested Death Benefit; Payment to Surviving Spouse or to
Estate Where Benefit Not Payable to Designated Primary or Secondary Pre-Retirement
Beneficiary. Effective with respect to deaths occurring on or after July 1, 2015, and except as
otherwise provided in an Adopting Employer's Adoption Agreement or Addendum, in the
absence of a designation by the Participant, or if there is no Primary or Secondary Pre-
- 77 -
Retirement Beneficiary to whom the terminated vested Auto A death benefit is payable under
this Article, then said pre-retirement death benefit shall be paid to the Participant's surviving
Spouse in accordance with this Section, in which case the surviving Spouse will be considered
the Pre-Retirement Beneficiary under the Plan. For purposes of this Section 8.09(e), the term
"surviving" shall mean surviving the Participant by at least thirty-two (32) days. If there is no
Pre-Retirement Beneficiary (i.e., a designated Pre-Retirement Beneficiary or surviving Spouse)
to whom the terminated vested Auto A death benefit is payable, then a lump sum payment equal
to fifty percent (50%) of the Actuarial Equivalent of the Participant's vested Accrued Benefit, if
any, shall be paid to the Participant's estate in lieu of the lifetime monthly benefit which would
otherwise be payable to a Pre-Retirement Beneficiary. Such lump sum Actuarial Equivalent
shall be determined as if the Participant had received a lump sum distribution of said benefit
under Section 7.05, calculated as of the date on which the payment is made, without reference to
the maximum cash-out limits of said Section, and using the assumptions set forth in Section
12.06.
(f)Calculation of Benefits. Benefits under this Section shall be calculated taking
into account only the Participant's Total Credited Service and Final Average Earnings (where
applicable) as of the date of the Participant's Termination of Employment with Adopting
Employer, and the applicable benefit formula in effect on the date of said Termination.
Section 8.10. Accrued Retirement Benefit.
An Employer may elect in the Adoption Agreement to provide a death benefit consisting of the
Accrued Benefit for one or more classes of Terminated Vested Participants. In such case, the
Employer shall designate the minimum service and other eligibility requirements a Terminated
Vested Participant must satisfy in order to be entitled to such benefit. Provided a Terminated
- 78 -
Vested Participant satisfies such requirements, then in the event that the Terminated Vested
Participant dies prior to the effective Retirement date, the Pre-Retirement Beneficiary may apply
to receive a lifetime monthly death benefit subject to the provisions of this subsection. Said
benefit shall commence on the first day of the month coinciding with or immediately following
the date of the Terminated Vested Participant's death. The monthly death benefit payable to the
Participant's Pre-Retirement Beneficiary shall be the Actuarial Equivalent of the Terminated
Vested Participant's Accrued Benefit, determined as of the date of the Participant's death, taking
into account the Participant's Total Credited Service, Final Average Earnings, and the benefit
formula in effect as of the date of the Participant's Termination. Except as otherwise provided in
an Adopting Employer's Adoption Agreement or Addendum, if there is no Primary or Secondary
Pre-Retirement Beneficiary to whom said pre-retirement death benefit is payable, said pre-
retirement death benefit shall be paid to the Participant's surviving Spouse in accordance with
this subsection, in which case the surviving Spouse will be considered the Pre-Retirement
Beneficiary under the Plan. For purposes of this subsection, the term "surviving" shall mean
surviving the Participant by at least thirty-two (32) days. If there is no Pre-Retirement
Beneficiary to whom the benefit is payable, then a lump sum payment equal to fifty percent
(50%) of the Actuarial Equivalent of the Participant's vested Accrued Benefit, if any, shall be
paid to the Participant's estate in lieu of the lifetime monthly benefit which would otherwise be
payable to a Pre-Retirement Beneficiary. Such lump sum Actuarial Equivalent shall be
determined as if the Participant had received a lump sum distribution of said benefits under
Section 7.05, calculated as of the date on which the payment is made, without reference to the
maximum cash-out limits of said Section, and using the assumptions set forth in Section 12.06.
- 79 -
Section 8.11. Designation of Terminated Vested Pre-Retirement Beneficiary. The
Primary and Secondary Pre-Retirement Beneficiary designated by the Participant to receive in-
service death benefits under Section 8.04 shall automatically be considered the Participant's
Primary and Secondary Pre-Retirement Beneficiary for purposes of payment of terminated
vested pre-retirement death benefits, if any, under the Employer's Plan. If the Participant
changes said beneficiary designation in accordance with Section 8.05, the Participant's
designation under this Section shall be considered changed as well to reflect the new designation.
In the absence of a designation by the Participant, or if there is no Primary or Secondary Pre-
Retirement Beneficiary to whom a terminated vested pre-retirement death benefit is payable
upon the Participant's death, then the terminated vested pre-retirement death benefit otherwise
payable, if any, shall be paid to the Participant's surviving Spouse in accordance with and subject
to the applicable provisions of this Article, in which case the surviving Spouse will be considered
the Pre-Retirement Beneficiary under the Plan. For purposes of this Section, the term
"surviving" shall mean surviving the Participant by at least thirty-two (32) days. If there is no
Pre-Retirement Beneficiary to whom a death benefit is payable, the death benefit shall be
payable to the Participant's estate in accordance with and subject to the applicable provisions of
this Article.
Section 8.12. Participant Death After Retirement Benefit Commencement. With
respect to retirement applications received by GMEBS on or after July 1, 2011, upon the death of
a Retired Participant subsequent to Retirement, there shall be payable to the Participant's
designated Post-Retirement Beneficiary, a benefit to be determined as follows:
(a)If the Participant has elected a form of payment that does not permit designation
of a Post-Retirement Beneficiary (Option A), as provided in Article VII, or if the Participant has
- 80 -
elected a form of payment that does permit such designation (Option B or C) and the
Participant's designated Post-Retirement Beneficiary does not survive the Participant, no further
payment of any kind whatsoever shall be made at the death of the Participant, except as provided
in subsection (b) below.
(b)Except as otherwise provided in an Addendum to the Adopting Employer's
Adoption Agreement, in the event that a Retired Participant who has elected a form of payment
that does not permit designation of a Post-Retirement Beneficiary (Option A), as provided in
Article VII, dies after Retirement benefit payments have commenced but before the Retired
Participant has received at least thirty-six (36) monthly Retirement benefit payments, a one-time
lump sum death benefit shall become payable which shall be equal to the amount of the
Participant's initial Retirement benefit (determined as of the date such monthly Retirement
benefit commenced) multiplied by thirty-six (36); provided, however, that the total amount of
such lump-sum death benefit shall be reduced by the aggregate amount of Retirement benefits
paid to such Retired Participant. The one-time lump sum death benefit shall be payable to the
Retired Participant's surviving Spouse. In such case, the Participant's surviving Spouse shall be
considered the designated beneficiary under the Plan for purposes of this subsection (b). In the
event that: (1) such Retired Participant does not have a Spouse at the time of the Retired
Participant's death; or (2) such Retired Participant does have a Spouse at the time of the Retired
Participant's death but such Spouse does not survive the Retired Participant by at least thirty-two
(32)days; or (3) such Retired Participant does have a Spouse at the time of the Retired
Participant's death but such Spouse does not within six (6) months following the Retired
Participant's death provide the Administrator with documentation which the Administrator
deems sufficient to verify that she said individual was the Retired Participant's Spouse at the time
- 81 -
of the Retired Participant's death, the lump-sum death benefit described in this subsection 8.12(b)
shall be paid to the estate of the Retired Participant. The lump sum death benefit described in
this subsection 8.12(b) shall not be considered part of the standard benefit payment form (Option
A) for purposes of determining actuarial equivalence. The lump sum death benefit paid pursuant
to this subsection 8.12(b) shall be included in determining the sum of all benefits paid to the
Participant for purposes of determining the amount of any refund of Employee Contributions
payable under Section 13.06. For purposes of this subsection, the term "surviving" shall mean
surviving the Retired Participant by at least thirty-two (32) days.
(c)If the Participant has elected a form of payment that permits designation of a Post-
Retirement Beneficiary (Option B or C) as provided in Article VII, and the Participant's
designated Post-Retirement Beneficiary survives him, benefits shall be payable to the Post-
Retirement Beneficiary as provided by the option elected, commencing the month following the
Participant's last benefit payment month.
ARTICLE IX.
TERMINATION BEFORE RETIREMENT; VESTING
Section 9.01. Vesting Requirement for Deferred Retirement Benefit. An Employer
may establish different vesting requirements for different classes of Eligible Employees in the
Adoption Agreement. A Participant whose employment is terminated for any reason other than
death or Retirement shall be entitled to a Vested right in the Accrued Benefit only if the
Participant meets the Qualifications for a deferred Vested Retirement benefit specified in the
Adoption Agreement. Payment of such Vested Retirement Benefit shall commence on the first
day of the month in which the effective Retirement Date occurs and shall be payable on the first
day of each month thereafter during the lifetime of the Participant, unless the Participant elects
an optional form of benefit payment under Article VII. The amount of such Monthly Retirement
- 82 -
Benefit shall be computed in the manner prescribed for Normal or Early Retirement in Article VI,
as applicable, but based upon the Participant's Final Average Earnings (if applicable) and Total
Credited Service up to the Participant's date of Termination of Employment with the Adopting
Employer. Unless otherwise provided in the Adoption Agreement or in an Addendum thereto, in
the event that an Eligible Regular Employee terminates employment with an Adopting Employer
and returns to service with such Adopting Employer as an elected or appointed member of the
Governing Authority, the portion of the monthly benefit attributable to Credited Service as an
Eligible Regular Employee shall be computed based upon Credited Service as an Eligible
Regular Employee and the benefit formula in effect as of the latest termination of employment as
an Eligible Regular Employee. Likewise, in the event that an elected or appointed member of
the Governing Authority vacates such office and returns to service with the Adopting Employer
as an Eligible Regular Employee, the portion of the monthly benefit attributable to Credited
Service as an elected or appointed member of the Governing Authority shall be computed based
upon Credited Service as an elected or appointed member of the Governing Authority and the
benefit formula in effect as of such individual's latest vacation of such office. Notwithstanding
any other provision of the Plan to the contrary, if a Participant has satisfied the requirements for
Normal Retirement as of the Participant's date of Termination, the Participant shall be one
hundred percent (100%) Vested in the Normal Retirement benefit.
Section 9.02. Termination of Tenure of Office Before Retirement. Unless
otherwise specified by the Employer in the Adoption Agreement, a Participant who is an elected
or appointed member of the Governing Authority or a Municipal Legal Officer, and who vacates
office for any reason other than death or Retirement shall be entitled to a Vested right in the
portion of said Participant's Accrued Benefit attributable to the Participant's Credited Service as
- 83 -
an elected or appointed member of the Governing Authority only if said Participant meets the
qualifications for a deferred Vested benefit applicable to elected or appointed members of the
Governing Authority and Municipal Legal Officers as specified in the Adoption Agreement.
Unless otherwise specified in the Employer's Adoption Agreement or Addendum thereto, if a
Participant has Credited Service both as an elected or appointed member of the Governing
Authority or a Municipal Legal Officer and as an Eligible Regular Employee of the Adopting
Employer, the Participant's combined Total Credited Service shall be taken into account in
determining whether the Participant has satisfied the minimum service requirements for vesting
under the Plan and the minimum service requirements for benefit eligibility under the Plan that
are applicable to Eligible Regular Employees, Municipal Legal Officers, and/or elected or
appointed members of the Governing Authority, as applicable.
Section 9.03. Immediate Vesting in Disability Retirement Benefit. If the Employer
elects in the Adoption Agreement to provide Disability benefits, and unless otherwise specified
in the Adoption Agreement, a Participant who is Disabled and otherwise meets the Plan's
eligibility requirements for payment of a Disability Retirement Benefit shall be considered 100%
Vested in such benefit.
Section 9.04. Involuntary Termination Without Cause. Notwithstanding any more
restrictive vesting requirement imposed by the Employer in the Adoption Agreement, a
Participant whose employment is terminated involuntarily and without cause shall be entitled to
a one hundred percent (100%) Vested Benefit if said Participant has completed five (5) years of
Total Credited Service. For the purpose of this condition, "cause" for dismissal shall mean
negligence or inefficiency in performing the duties of the position held, unfitness to perform
- 84 -
assigned duties, insubordination, or misconduct reflecting discredit on the Adopting Employer or
upon the Governing Authority.
Section 9.05. Portability between Adopting Employers.
(a)This Section applies to a Participant, other than an elected or appointed member
of the Governing Authority or Municipal Legal Officer, whose employment is terminated either
voluntarily or involuntarily after participation in the Plan, provided that with respect to a
Participant who terminates employment on or after January 1, 2015, such Participant has at least
one (1) year of Credited Service with the Employer. This one (1) year minimum shall not apply
with respect to a Participant,
(1)whose immediate prior employment was with another GMEBS Employer,
and under whose Plan in effect prior to January 1, 2015, the Participant was subject to a
waiting period and the Participant had satisfied such waiting period prior to the
Participant's Termination of Employment with such prior GMEBS Employer, or
(2) (A) who is not described in paragraph 9.05(a)(1) above, and whose
Employer's Plan contained an Addendum provision which was in effect prior to January 1,
2015, which provided for a waiting period of less than one (1) year to commence
participation in the Plan, and (B) who was employed with said Employer prior to
January 1, 2015 and satisfied such time limitation prior to Termination. With respect to
an Employee described in this paragraph 9.05(a)(2), this Section shall become applicable
to such Employee once the Employee has satisfied such waiting period.
(b)Subject to any limitations or conditions contained in the Employer's Adoption
Agreement, in determining whether a Participant has satisfied the minimum service requirements
for Vesting and the minimum service requirements for Retirement and, for Participants who
- 85 -
terminate on or after September 26, 2014, pre-retirement death benefit eligibility, under the
Adoption Agreement of any GMEBS Adopting Employer, the Participant's Total Credited
Service with all other of the Participant's past and future Adopting Employers shall be taken into
account. In no event, however, shall service with one GMEBS Employer be used to calculate the
benefit amount due the Participant from another GMEBS Employer. Prior to January 1, 2015,
except as otherwise provided in Section 4.02(c)(7) concerning immediate participation for
Participants who transfer from one GMEBS Adopting Employer to another, service with one
GMEBS Adopting Employer may not be used to establish participation in another Adopting
Employer's plan.
Section 9.06. Forfeiture of Benefits for Certain Crimes.
(a)Survivor benefits or refunds otherwise payable to a person upon the death of a
Participant, Terminated Vested Participant, Retired Participant, or beneficiary shall be forfeited
if the person commits or conspires to commit murder or involuntary manslaughter against a
Participant, Terminated Vested Participant, Retired Participant, or beneficiary, in accordance
with and subject to the applicable provisions of O.C.G.A. § 47-1-24 (a copy of which is included
in the Appendix hereto). The terms of said code section are incorporated herein by reference,
including any future amendments thereto.
(b)If the Adopting Employer receives information that a beneficiary has been
convicted of any crime referenced in this Section which could potentially result in reduction or
forfeiture of benefits, the Adopting Employer shall notify the Administrator when it receives
notice of such conviction.
- 86 -
Section 9.07. Forfeitures.
(a)If the Adopting Employer is unable to determine the whereabouts of and payment
information for any Participant, beneficiary or surviving Spouse to whom a payment (e.g., a
payment of Retirement, Disability or Death benefits) is due and provide such information to the
Administrator within a period of six (6) months from the later of: 1) the date on which the
Administrator became aware that such payment became due and payable, or 2) the date on which
the Administrator became unable to continue processing payments to the Participant, beneficiary
or surviving Spouse due to changes in such individual's bank account, address, or other
necessary information, the Administrator shall direct that the payment and all remaining
payments, if any, otherwise due to the Participant, beneficiary or surviving Spouse be cancelled
on the records of the Plan and the amount thereof be treated as a forfeiture. Likewise, if the
Adopting Employer is unable to determine the whereabouts of and payment information for any
Participant, surviving Spouse or estate, as applicable, to whom a return of Employee
Contributions due pursuant to Section 13.03 or Section 13.06 of this Basic Plan Document or
pursuant to the Adopting Employer's Adoption Agreement or an Addendum thereto and provide
such information to the Administrator within a period of six (6) months from such Participant's
Termination of Employment (for non-vested Participants and for vested Participants whose
Employee Contributions are required to be refunded following termination provided a refund to
vested Participants does not result in forfeiture of Credited Service under the Plan), a vested
Participant's request for a return of contributions, or, in a case of failure to exhaust, the date of a
Participant's death, the Administrator shall direct that the return of Employee Contributions
otherwise due to the Participant, surviving Spouse or estate, as applicable, be cancelled on the
- 87 -
records of the Plan and the amount thereof be treated as a forfeiture and placed in the Employer's
GMEBS Trust Fund.
(b)In the event that a payment (e.g., a return of Employee Contributions, or a
payment of Retirement, Disability or Death benefits) is due to the estate of a Participant or
beneficiary but the Administrator is unable to process such payment due to the absence of said
estate or lack of information needed to process payment to said estate, or, following the
expiration of six (6) months after the date on which the payment is issued the payment remains
outstanding, the Administrator shall so notify the Adopting Employer. The Adopting Employer
shall attempt to locate documents establishing such estate, a correct address or bank account or
other necessary information to process such payment. If the Adopting Employer is unable to
ascertain such documentation or information within six (6) months after receiving notice from
the Administrator of the outstanding payment, the Administrator shall direct that the payment be
cancelled on the records of the Plan and the amount thereof be treated as a forfeiture.
(c)Notwithstanding the foregoing provisions of this Section, if a Participant,
beneficiary or surviving Spouse whose whereabouts or payment information is unknown and
whose benefits are forfeited pursuant to this Section subsequently claims such benefits on the
Applicable Form, such forfeited benefit shall be reinstated and shall be paid retroactively,
without interest, to the date of the first cancelled payment. Likewise, if the executor of an estate
to which a payment was forfeited pursuant to paragraph (b) above subsequently claims such
benefits on the Applicable Form, the forfeited benefit shall be reinstated and shall be paid,
without interest, to the estate.
(d)Forfeitures arising from the inability to determine the whereabouts of or payment
information for a Participant, beneficiary or surviving Spouse, or arising from Termination of
- 88 -
Employment, withdrawal or any other reason may not be applied to increase the benefits any
individual would otherwise receive under the Plan. Forfeitures will remain Trust assets, and as
such, may be used to reduce an Adopting Employer's contribution.
(e)Notwithstanding any provision to the contrary, in the event that a return of
Employee Contributions otherwise due to a Participant, to a surviving Spouse, to the estate of a
Participant or of a Pre-Retirement or Post-Retirement Beneficiary, or to another individual or
estate, as applicable, is cancelled on the records of the Plan and the amount thereof is treated as a
forfeiture pursuant to this Section 9.07, including subsection (c), interest on such Employee
Contributions shall cease to accrue as of the date on which the Administrator directs that the
return of Employee Contributions be cancelled.
(f)An Adopting Employer shall take the following actions to locate any Participant,
beneficiary or surviving Spouse to whom benefits are owed, consistent with IRS Revenue
Procedure 2021-30 (or subsequent updated guidance):
(1)Search Plan and related Plan, Adopting Employer, and publicly-available
records or directories for alternative contact information.
(2)A mailing via U. S. Postal Service certified mail to the last known mailing
address, and contact through appropriate means for any address or contact information
(including email addresses and telephone numbers) available to the Adopting Employer.
(3)Use of at least one of the following search methods: (i) a commercial
locator service, (ii) a credit reporting agency, or (iii) internet search tools for locating
individuals.
- 89 -
ARTICLE X.
DISTRIBUTION AND ROLLOVER RULES
Section 10.01. Distribution Rules Imposed by Federal Law. Notwithstanding any
provision of this Plan to the contrary, any distribution under the Plan shall be made in
accordance with Code Section 401(a)(9) and the Treasury regulations promulgated thereunder,
including the incidental benefit rules under Code Section 401(a)(9)(G), and shall comply with
the following rules:
(a)With respect to distributions under the Plan made for calendar years beginning on
or after January 1, 2002, the Plan shall apply the minimum distribution requirements of Code
Section 401(a)(9) in accordance with the Final Regulations under Code Section 401(a)(9) that
were issued on April 17, 2002, and June 15, 2004, notwithstanding any provision of the Plan to
the contrary. GMEBS is coordinating the compliance with the Final Regulations to comply with
the good faith reasonable standard of Pension Protection Act of 2006 Section 823.
(b)A Participant's entire interest will be distributed, or begin to be distributed, to the
Participant no later than the Participant's required beginning date. For purposes of this Section,
"required beginning date" means April 1 of the calendar year following the later of (i) the
calendar year in which the Participant reaches age seventy and one-half (70½), or (ii) the
calendar year in which the Participant Retires.
(c)If the Participant dies before distributions begin, the Participant's entire interest
will be distributed, or begin to be distributed, no later than as follows:
(1)If the Participant's surviving spouse is the Participant's sole designated
beneficiary, then distributions to the surviving spouse will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant died, or
- 90 -
by December 31 of the calendar year in which the Participant would have attained age
seventy and one-half (70½), if later.
(2)If the Participant's surviving spouse is not the Participant's sole designated
beneficiary, then distributions to the designated beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the Participant died,
over the life of the designated beneficiary or over a period certain not exceeding:
(A)unless the annuity starting date is before the first distribution
calendar year, the life expectancy of the designated beneficiary determined using
the beneficiary's age as of the beneficiary's birthday in the calendar year
immediately following the calendar year of the Participant's death; or
(B)if the annuity starting date is before the first distribution calendar
year, the life expectancy of the designated beneficiary determined using the
beneficiary's age as of the beneficiary's birthday in the calendar year that contains
the annuity starting date.
(3)If there is no designated beneficiary as of September 30 of the year
following the year of the Participant's death, the Participant's entire interest will be
distributed by December 31 of the calendar year containing the fifth anniversary of the
Participant's death.
(4)If the Participant's surviving spouse is the Participant's sole designated
beneficiary and the surviving spouse dies after the Participant but before distributions to
the surviving spouse begin, this subsection (c), other than (c)(1), will apply as if the
surviving spouse were the Participant.
- 91 -
If annuity payments irrevocably commence to the Participant before the Participant's
required beginning date (or to the Participant's surviving spouse before the date distributions are
required to begin to the surviving spouse under this subsection (c)), the date distributions are
considered to begin is the date distributions actually commence.
(d)The amount that must be distributed on or before the Participant's required
beginning date (or, if the Participant dies before distributions begin, the date distributions are
required to begin under subsection (c)) is the payment that is required for one payment interval.
The second payment need not be made until the end of the next payment interval even if that
payment interval ends in the next calendar year. Payment intervals are the periods for which
payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the
Participant's benefit accruals as of the last day of the first distribution calendar year will be
included in the calculation of the amount of the annuity payments for payment intervals ending
on or after the Participant's required beginning date.
(e)Any additional benefits accruing to the Participant in a calendar year after the first
distribution year will be distributed beginning with the first payment interval ending in the
calendar year immediately following the calendar year in which such amount accrues.
(f) If the Participant's interest is being distributed in the form of a joint and survivor
annuity for the joint lives of the Participant and a non-spouse beneficiary, annuity payments to be
made on or after the Participant's required beginning date to the designated beneficiary after the
Participant's death must not at any time exceed the applicable percentage of the annuity payment
for such period that would have been payable to the Participant using the applicable table set
forth in the Treasury Regulations. If the form of distribution combines a joint and survivor
annuity for the joint lives of the Participant and a non-spouse beneficiary and a period certain
- 92 -
annuity, the requirement in the preceding sentence will apply to annuity payments to be made to
the designated beneficiary after the expiration of the period certain.
(g)Unless the Participant's spouse is the sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain for an annuity distribution
commencing during the Participant's lifetime may not exceed the applicable distribution period
for the Participant under applicable simple life table set forth in the Treasury Regulations for the
calendar year that contains the annuity starting date. If the annuity starting date precedes the
year in which the Participant reaches age seventy (70), the applicable distribution period for the
Participant is the distribution period for age seventy (70) under the applicable single life table as
set forth in the Treasury Regulations plus the excess of seventy (70) over the age of the
Participant as of the Participant's birthday in the year that contains the annuity starting date. If
the Participant's spouse is the Participant's sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain may not exceed the longer
of the Participant's applicable distribution period, as determined under this Section, or the joint
life and last survivor expectancy of the Participant and the Participant's spouse as determined
under the applicable joint life table set forth in the Treasury Regulations, using the Participant's
and spouse's attained ages as of the Participant's and spouse's birthdays in the calendar year that
contains the annuity starting date.
(h)A Participant or beneficiary eligible for benefits from an Adopting Employer's
Plan must complete and return the Applicable Form provided for such purpose in order to
commence distribution of benefits. Any excise tax under Code Section 4974 that results from a
failure to timely apply for distribution of benefits under the Plan shall be the responsibility of the
Participant or beneficiary, as applicable.
- 93 -
Section 10.02. Rollover of Distributions. Notwithstanding any provision of the Plan
to the contrary that would otherwise limit a Distributee's election under this Section, a
Distributee may elect, at the time and in the manner prescribed by the Administrator, to have any
portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified
by the Distributee in a Direct Rollover. The following definitions shall apply to this Section:
(a)An "Eligible Rollover Distribution" is any distribution of all or any portion of the
balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not
include: (i) any distribution that is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint
lives (or joint life expectancies) of the Distributee and the Distributee's designated beneficiary, or
for a specified period of ten (10) years or more; (ii) any distribution to the extent such
distribution is required under Code Section 401(a)(9); (iii) the portion of any distribution that is
not includible in gross income; or (iv) any other distributions which the Internal Revenue Service
does not consider eligible for rollover treatment, such as certain corrective distributions
necessary to comply with the provisions of Code Section 402(g) or 415. Effective January 1,
2002, an Eligible Rollover Distribution also includes a distribution to a surviving spouse.
Effective January 1, 2002, a portion of a distribution will not fail to be an Eligible Rollover
Distribution merely because the portion consists of after-tax Employee Contributions that are not
includible in gross income. However, such portion may be transferred only to a (1) traditional
individual retirement account or annuity described in IRC 408(a) or (b) (a “traditional IRA”) or a
Roth individual retirement account or annuity described in IRC 408(A) (a “Roth IRA”), or (2) to
a qualified defined contribution defined benefit or annuity plan described in IRC 401(a) or
403(a) or to an annuity contract described in IRC 403(b), if such plan or contract provides for
- 94 -
separate accounting for amounts so transferred (including interest thereon), including separately
accounting for the portion of such distribution which is includible in gross income and the
portion of such distribution which is not so includible.
(b)An "Eligible Retirement Plan" is any one of the following that accepts the
Distributee's Eligible Rollover Distribution: (i) a traditional IRA; (ii) a Roth IRA; (iii) an annuity
plan described in Code Section 403(a); or (iv) a qualified defined benefit or defined contribution
plan described in Code Section 401(a). Effective for distributions made after December 31, 2001,
an Eligible Retirement Plan will also include an eligible deferred compensation plan described in
Code Section 457(b) which is maintained by an eligible employer described in Code Section
457(e)(1)(A) that agrees to separately account for amounts transferred into that plan; or an
annuity plan described in Code Section 403(b); effective for distributions made after December
31, 2007, an Eligible Retirement Plan will also include a Roth IRA described in Code Section
408A; and effective for distributions made after December 18, 2015, an Eligible Retirement Plan
will also include a SIMPLE IRA as described in Code Section 408(p), provided that the rollover
contribution is made after the two-year period beginning on the date the Distributee first
participated in any qualified salary reduction arrangement maintained by the Distributee's
employer under Code Section 408(p)(2), as described in Code Section 72(t)(6). The portion of
an Eligible Rollover Distribution that is not includible in gross income may be transferred only
to an individual retirement account or individual retirement annuity described in Code Sections
408(a) or 408(b), a qualified defined contribution plan described in Code Section 401(a), a
qualified plan described in Code Section 403(a), or on or after January 1, 2007, to a qualified
defined benefit plan described in Code Section 401(a) or an annuity contract described in Code
Section 403(b), that agrees to separately account for amounts so transferred, including separately
- 95 -
accounting for the portion of such distribution which is includible in gross income and the
portion of such distribution which is not so includible.
(c)A "Distributee" includes an employee or former employee. A Distributee also
includes the employee's or former employee's surviving spouse. A Distributee also includes a
nonspouse beneficiary who is a designated beneficiary as defined by Code Section 401(a)(9)(E).
However, a nonspouse beneficiary may only make a direct rollover of the distribution to an
individual retirement account or individual retirement annuity established for the purpose of
receiving the distribution, and the account or annuity will be treated as an "inherited" individual
retirement account or annuity.
(d)A "Direct Rollover" is a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.
(e)Notwithstanding subsection (a), if an Eligible Rollover Distribution is expected to
total less than Two Hundred Dollars ($200) during a year, such payment may not be directly
rolled over.
Section 10.03. Acceptance of Eligible Rollover Distributions. To the extent
permitted by the applicable provisions of the Code and regulations issued thereunder, for the
purpose of purchasing Credited Service or repaying withdrawn Employee Contributions
(including any Contributions made to purchase prior service credit, as applicable) as permitted
under the Plan and the Employer's Adoption Agreement (i) a Participant may contribute to the
Plan as a rollover contribution a qualified rollover amount from a qualified plan under Code
Section 401(a), an annuity plan under Code Section 403(a), an individual retirement account or
annuity under Code Sections 408(a) or (b), a governmental deferred compensation plan under
Code Section 457(b), or a tax-sheltered annuity under Code Section 403(b), that is includible in
- 96 -
taxable income; or (ii) a Participant may make a direct rollover to the Plan of a qualified rollover
amount from a qualified plan under Code Section 401(a) consisting of after-tax employee
contributions that is not includible in taxable income provided that such amount will be
separately accounted for under the Plan; provided, further, that the Administrator, in its
discretion, determines that the contribution satisfies all applicable requirements of the Code.
Such rollovers will be allowed to the extent permitted by law, subject to any conditions, proofs,
or acceptance the Administrator deems appropriate.
Section 10.04. Acceptance of Trustee-to-Trustee Transfers. A Participant may make
a direct trustee-to-trustee transfer from another Code Section 401(a) qualified retirement plan, a
governmental deferred compensation plan under Code Section 457(b), or a tax-sheltered annuity
under Code Section 403(b) for the purchase of permissive service credit, as defined in Code
Section 415(n)(3)(A) and as permitted under the Plan and the Employer's Adoption Agreement,
or for a repayment to which Code Section 415 does not apply by reason of Code Section
415(k)(3), as permitted under the Plan and the Employer's Adoption Agreement. Such transfers
will be allowed to the extent permitted by law, subject to any conditions, proofs, or acceptance
the Administrator deems appropriate.
ARTICLE XI.
LIMITATIONS ON BENEFITS
Section 11.01. Effective Date. The Plan shall be administered so as to comply with
this Article for limitation years beginning on or after July 1, 2007, except as otherwise provided
herein.
Section 11.02. Limitation on Annual Benefit.
(a)In no event shall the aggregate annual benefit for a calendar year (the "limitation
year") provided under this Plan and all other defined benefit plans (without regard to whether the
- 97 -
plan has terminated) of the Employer for any Participant exceed an amount equal to One
Hundred Sixty Thousand Dollars ($160,000) as adjusted pursuant to Code Section 415(d)(1)(A).
(b)Adjustment for Benefits Commencing Before Age 62.
(1)If the retirement income benefit under the Plan begins before age sixty-
two (62) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan
does not have an immediately commencing straight life annuity payable at both age sixty-
two (62) and the age of benefit commencement, the One Hundred Sixty Thousand Dollar
($160,000) limitation for the Participant's retirement income benefit commencement date
is the annual amount of a benefit payable in the form of a straight life annuity
commencing at the Participant's retirement income benefit commencement date that is the
actuarial equivalent of the One Hundred Sixty Thousand Dollar ($160,000) limitation
(adjusted under subsection (h) for years of participation less than ten (10), if required)
with actuarial equivalence computed using a five percent (5%) interest rate assumption
and the applicable mortality table for the retirement income benefit commencement date
(expressing the Participant's age based on completed calendar months as of the retirement
income benefit commencement date).
(2)If the retirement income benefit under the Plan begins before age sixty-
two (62) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan
has an immediately commencing straight life annuity payable at both age sixty-two (62)
and the age of benefit commencement, the One Hundred Sixty Thousand Dollar
($160,000) limitation for the Participant's retirement income benefit commencement date
is the lesser of the limitation determined under paragraph (1) and the One Hundred Sixty
Thousand Dollar ($160,000) limitation (adjusted under subsection (h) for years of
- 98 -
participation less than ten (10), if required) multiplied by the ratio of the annual amount
of the immediately commencing straight life annuity under the Plan at the Participant's
retirement income benefit commencement date to the annual amount of the immediately
commencing straight life annuity under the Plan at age sixty-two (62), both determined
without applying the limitations of this Article.
(3) If the retirement income benefit under the Plan begins before age sixty-
two (62) and occurs in a limitation year that begins on or after January 1, 2002, but prior
to July 1, 2007, the determination as to whether the One Hundred Sixty Thousand Dollars
($160,000) limitation has been satisfied shall be made by reducing the One Hundred
Sixty Thousand Dollars ($160,000) limitation so that such limitation (as so reduced)
equals an annual benefit (beginning when such retirement income benefit begins) which
is equivalent to a One Hundred Sixty Thousand Dollars ($160,000) annual benefit
beginning at age sixty-two (62). The age reduced dollar limit shall be the lesser of the
equivalent amount computed using the actuarial table in Section 12.01 of the Plan for
actuarial equivalence for early retirement benefits, and the amount computed using five
percent (5%) interest and the applicable mortality table (to the extent that the mortality
decrement is used prior to age sixty-two (62)).
(c)Adjustment for Benefits Commencing After Age 65.
(1)If the retirement income benefit under the Plan begins after age sixty-five
(65) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan does
not have an immediately commencing straight life annuity payable at both age sixty-five
(65) and the age of benefit commencement, the One Hundred Sixty Thousand Dollar
($160,000) limitation at the Participant's retirement income benefit commencement date
- 99 -
is the annual amount of a benefit payable in the form of a straight life annuity
commencing at the Participant's retirement income benefit commencement date that is the
actuarial equivalent of the One Hundred Sixty Thousand Dollar ($160,000) limitation
(adjusted under subsection (h) for years of participation less than ten (10), if required),
with actuarial equivalence computed using a five percent (5%) interest rate assumption
and the applicable mortality table for that retirement income benefit commencement date
as specified in Section 11.02(e)(2)(B) of the Plan (expressing the Participant's age based
on completed calendar months as of the retirement income benefit commencement date).
(2) If the retirement income benefit under the Plan begins after age sixty-five
(65) and occurs in a limitation year beginning on or after July 1, 2007, and the Plan has
an immediately commencing straight life annuity payable at both age sixty-five (65) and
the age of benefit commencement, the One Hundred Sixty Thousand Dollar ($160,000)
limitation at the Participant's retirement income benefit commencement date is the lesser
of the limitation determined under paragraph (1) and the One Hundred Sixty Thousand
Dollar ($160,000) limitation (adjusted under subsection (h) for years of participation less
than ten (10), if required) multiplied by the ratio of the annual amount of the adjusted
immediately commencing straight life annuity under the Plan at the Participant's
retirement income benefit commencement date to the annual amount of the adjusted
immediately commencing straight life annuity under the Plan at age sixty-five (65), both
determined without applying the limitations of this Article. For this purpose, the adjusted
immediately commencing straight life annuity under the Plan at the Participant's
retirement income benefit commencement date is the annual amount of such annuity
payable to the Participant, computed disregarding the Participant's accruals after age
- 100 -
sixty-five (65) but including actuarial adjustments even if those actuarial adjustments are
used to offset accruals; and the adjusted immediately commencing straight life annuity
under the Plan at age sixty-five (65) is the annual amount of such annuity that would be
payable under the Plan to a hypothetical Participant who is age sixty-five (65) and has the
same accrued benefit as the Participant.
(3) If the retirement income benefit under the Plan begins after age sixty-five
(65) and occurs in a limitation year that begins on or after January 1, 2002, but prior to
July 1, 2007, the One Hundred Sixty Thousand Dollar ($160,000) limitation for the
Participant's retirement income benefit commencement date is the annual amount of a
benefit payable in the form of a straight life annuity commencing at the Participant's
retirement income benefit commencement date that is the actuarial equivalent of the One
Hundred Sixty Thousand Dollar ($160,000) limitation (adjusted under subsection (h) for
years of participation less than ten (10), if required) with actuarial equivalence computed
using whichever of the following produces the smaller annual amount: (i) the actuarial
increase factors specified in Section 12.05 of the Plan; or (ii) a five percent (5%) interest
rate assumption and the applicable mortality table as specified in Section 11.02(e)(2)(B)
of the Plan.
(d)Notwithstanding the other requirements of this section, in adjusting the dollar
limitation for the Participant's retirement income benefit commencement date under subsection
(b) or (c), as applicable, no adjustment shall be made to the One Hundred Sixty Thousand Dollar
($160,000) limitation to reflect the probability of a Participant's death between the retirement
income benefit commencement date and age sixty-two (62), or between age sixty-five (65) and
the retirement income benefit commencement date, as applicable, if benefits are not forfeited
- 101 -
upon the death of the Participant prior to the retirement income benefit commencement. To the
extent benefits are forfeited upon death before the retirement income benefit commencement
date, such an adjustment shall be made. Furthermore, notwithstanding the requirements of this
section, the adjustments provided for in subsections (b) and (c) shall not apply (i) in the event the
Participant's benefit is based on at least fifteen (15) years of service as a full-time employee of
any police or fire department or on fifteen (15) years of military service, or (ii) in the case of pre-
retirement disability benefits or pre-retirement death benefits.
(e)Adjustment for Form Not Subject to Code Section 417(e)(3). For distributions
made in any form other than a straight life annuity or a qualified joint and survivor annuity to
which Code Section 417(e)(3) does not apply [generally, a monthly benefit], such benefit shall
be adjusted to a straight life annuity, beginning at the same age, which is the actuarial equivalent
of such benefit.
(1)For limitation years beginning before July 1, 2007, the actuarially
equivalent straight life annuity for purposes of applying the limitations under Code
Section 415(b) to benefits is equal to the greater of (or the reduced limitation applicable
at the retirement income benefit commencement date which is the "lesser of" when
adjusted in accordance with the following assumptions):
(A)the equivalent annual benefit computed using the interest rate and
mortality table, or tabular factor, specified in Article XII of the Plan for actuarial
equivalence for the particular form of benefit payable, and
(B)the equivalent annual benefit computed using a five percent (5%)
interest rate assumption and the applicable mortality table described in Internal
- 102 -
Revenue Service guidance (the mortality table specified in Revenue Ruling 98-1
prior to 2003 or Revenue Ruling 2001-62 on or after January 1, 2003).
(2)For limitation years beginning on or after July 1, 2007, the actuarially
equivalent straight life annuity is equal to the greater of (or the reduced limitation
applicable at the retirement income benefit commencement date which is the "lesser of"
when adjusted in accordance with the following assumptions):
(A)the annual amount of the straight life annuity (if any) payable to
the Participant under the Plan commencing at the same retirement income benefit
commencement date as the Participant's form of benefit; and
(B)the annual amount of the straight life annuity commencing at the
same retirement income benefit commencement date that has the same actuarial
present value as the Participant's form of benefit, computed using a five percent
(5%) interest rate assumption and the applicable mortality table described in
Internal Revenue Service guidance (the mortality table specified in Revenue
Ruling 2001-62 on or after January 1, 2003) and, for years after December 31,
2008, the applicable mortality tables described in Code Section 417(e)(3)(B)
(Internal Revenue Service Notice 2008-85 or any subsequent Internal Revenue
Service guidance implementing Code Section 417(e)(3)(B)).
(f)Adjustment for Form Subject to Code Section 417(e)(3). As required by final
Treasury Regulations, for distributions made in any form to which Code Section 417(e)(3)
applies [generally, a lump sum benefit], such benefit shall be adjusted to a straight life annuity,
beginning at the same age, which is the actuarially equivalent straight life annuity benefit which
is the greatest of (or the reduced limitation applicable at the retirement income benefit
- 103 -
commencement date which is the "least of" when adjusted in accordance with the following
assumptions):
(1)The annual amount of the straight life annuity commencing at the
retirement income benefit commencement date that has the same actuarial present value
as the particular form of benefit payable, computed using the interest rate and mortality
table, or tabular factor, specified in Article XII of the Plan for actuarial experience;
(2)The annual amount of the straight life annuity commencing at the
retirement income benefit commencement date that has the same actuarial present value
as the particular form of benefit payable, computed using a five and five-tenths percent
(5.5%) interest assumption (or the applicable statutory interest assumption) and (i) for
years prior to January 1, 2009, the applicable mortality tables for the distribution under
Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in Revenue
Ruling 98-1 prior to 2003 and Revenue Ruling 2001-62 or any subsequent Revenue
Ruling modifying the applicable provisions of Revenue Ruling 2001-62) and (ii) for
years after December 31, 2008, the applicable mortality tables described in Code Section
417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing Code Section 417(e)(3)(B)); or
(3)the annual amount of the straight life annuity commencing at the
retirement income benefit commencement date that has the same actuarial present value
as the particular form of benefit payable computed using the applicable interest rate for
the distribution under Internal Revenue Service guidance (the 30-year Treasury rate prior
to January 1, 2008, using the rate in effect for the month prior to retirement; on and after
January 1, 2008, using the rate in effect for the first day of the plan year with a one-year
- 104 -
stabilization period; and on and after January 1, 2015, using the rate in effect for the
September prior to the plan year of distribution with a one-year stabilization period) and
(i) for years prior to January 1, 2009, the applicable mortality tables for the distribution
under Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in
Revenue Ruling 98-1 prior to 2003 and Revenue Ruling 2001-62 or any subsequent
Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62), and
(ii) for years after December 31, 2008, the applicable mortality tables described in Code
Section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service
guidance implementing Code Section 417(e)(3)(B)), divided by one and five-one-
hundredths (1.05). However, effective for benefits commencing during limitation years
beginning after December 31, 2008, this paragraph (3) does not apply to a Plan
maintained by an eligible employer as defined under Code Section
408(p)(2)(C)(i) (generally, an Employer that had no more than one hundred (100)
employees who received at least Five Thousand Dollars ($5,000) of compensation from
the Employer during the preceding year).
(g)Limitations on benefits under this Article shall not apply where the total annual
benefits payable to a Participant under this Plan and all other qualified defined benefit plans
(whether or not terminated) of the Employer do not exceed Ten Thousand Dollars ($10,000) in
the aggregate. This minimum limitation is not applicable for a Participant whose Employer
maintains or has maintained a defined contribution plan in which such Participant participated.
(h)The Ten Thousand Dollars ($10,000) minimum limitation, if provided, must be
reduced where a Participant has less than ten (10) years of service with the Employer at the time
the Participant begins to receive retirement benefits under the Plan, and the maximum dollar
- 105 -
limitation must be reduced where a Participant has less than ten (10) years of participation when
retirement benefits under the Plan commence. These adjustments are made by multiplying the
applicable limitations by the appropriate fraction:
(A)For the Ten Thousand Dollars ($10,000) minimum limitation –
Years of service with the employer as of and including, the current limitation year
divided by ten (10); or
(B)For the maximum dollar limitation – Years of participation with
the employer as of and including, the current limitation year divided by ten (10).
(i)For purposes of applying the limits under Code Section 415(b) (Limit), the
following will apply:
(1)prior to any limitation year beginning on or after July 1, 2007, adjustments
under Section 6.05, will be taken into consideration when determining a Participant's
applicable Limit;
(2)for any limitation year beginning on or after July 1, 2007:
(A)a Participant's applicable Limit will be applied to the Participant's
annual benefit in the Participant's first limitation year without regard to any
automatic cost of living adjustments under Section 6.05;
(B)to the extent the Participant's benefit equals or exceeds the Limit,
the Participant will no longer be eligible for cost of living adjustments under
Section 6.05 until such time as the benefit plus the accumulated adjustments
under Section 6.05 are less than the Limit;
(C)thereafter, in any subsequent limitation year, a Participant's annual
benefit, including any automatic cost of living increases under Section 6.05, shall
- 106 -
be tested under the then applicable benefit Limit including any adjustment to the
Code Section 415(b)(1)(A) dollar limit under Code Section 415(d), and the
regulations thereunder; but
(D)in no event shall a Participant's benefit payable under the Plan in
any limitation year be greater than the Limit applicable at the annuity starting date,
as increased in subsequent years pursuant to Code Section 415(d) and the
regulations thereunder. If the form of benefit without regard to the automatic
benefit increase feature is not a straight life annuity, then the preceding provisions
are applied by reducing the Code Section 415(b) limit applicable at the annuity
starting date to an actuarially equivalent amount (determined using the
assumptions specified in Treasury Regulation Section 1.415(b)-1(c)(2)(ii)) that
takes into account the death benefits under the form of benefit.
Section 11.03. Limitation on Annual Additions.
(a)Effective beginning on and after January 1, 2002, to the extent required under
Code Section 415(c), in no event shall the "annual addition" for a Participant for any calendar
year (the "limitation year"), exceed the lesser of:
(1)Forty Thousand Dollars ($40,000)), as adjusted for increases in the cost of
living under Code Section 415(d); or
(2)One hundred percent (100%)) of the "compensation" of such Participant
received from an Adopting Employer during the limitation year.
(b)For purposes of this Section, "compensation" means all of a Participant's wages as
defined in Code Section 3401(a) for the purposes of income tax withholding at the source but
determined without regard to any rules that limit the remuneration included in wages based on
- 107 -
the nature or location of the employment or the services performed (such as the exception for
agricultural labor in Code Section 3401(a)(2)); provided, however, for limitation years beginning
after December 31, 1997, compensation shall also include the amount of any elective deferrals,
as defined in Code Section 402(g)(3), and any amount contributed or deferred by the Adopting
Employer at the election of the Employee and which is not includable in the gross income of the
Employee by reason of Code Section 125 or 457, but shall exclude Employee contributions
picked up under Code Section 414(h)(2). For limitations years beginning after December 31,
2000, compensation shall also include any amount deferred by the Adopting Employer at the
election of the Employee which is not includable in the gross income of the Employee by reason
of Code Section 132(f)(4). For limitation years beginning on or after July 1, 2007, the following
types of payments, if paid by the later of (i) two and one-half (2½) months following a
Participant's Termination of Employment, or (ii) the last day of the limitation year that includes
the Participant's Termination of Employment, will be included as compensation for purposes of
this Section: payments that, absent a Termination of Employment, would have been paid to the
Participant while the Participant continued in employment and that are regular compensation for
services rendered, and payments of accrued bona fide sick, vacation, or other leave, but only if
the Participant would have been able to use the leave if employment had continued. Any
payments not described in the preceding sentence are not considered compensation if paid after
severance from employment, even if they are paid within two and one-half (2½) months
following severance from employment, except for payments to the individual who does not
currently perform services for the Employer by reason of qualified military service (within the
meaning of Code Section 414(u)(1)) to the extent these payments do not exceed the amounts the
individual would have received if the individual had continued to perform services for the
- 108 -
Employer rather than entering qualified military service. An Employee who is in qualified
military service (within the meaning of Code Section 414(u)(1)) shall be treated as receiving
compensation from the Employer during such period of qualified military service equal to (i) the
compensation the Employee would have received during such period if the Employee were not in
qualified military service, determined based on the rate of pay the Employee would have
received from the Employer but for the absence during the period of qualified military service, or
(ii)if the compensation the Employee would have received during such period was not
reasonably certain, the Employee's average compensation from the Employer during the twelve
(12) month period immediately preceding the qualified military service (or, if shorter, the period
of employment immediately preceding the qualified military service). For limitation years
beginning on or after July 1, 2007, a Participant's compensation for purposes of this Section shall
not exceed the annual limit under Code Section 401(a)(17).
(c)For purposes of this Section, "annual addition" means the sum of the following
amounts credited to a Participant's accounts for the limitation year under this Plan and any other
plan maintained by an Employer: (i) employer contributions; (ii) employee contributions;
(iii)forfeitures; and (iv) allocations under a simplified employee pension plan. Amounts
allocated after March 31, 1984, to an individual medical account, as defined in Code Section
415(l)(2), which is part of a pension or annuity plan maintained by an Employer are treated as
annual additions to a defined contribution plan. Also, 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 the separate account of a key
employee, as defined in Code Section 419A(d)(3), under a welfare benefit fund, as defined in
- 109 -
Code Section 419(e), maintained by an Employer are treated as annual additions to a defined
contribution plan.
(d) If the annual addition for a Participant under the Plan would be greater than the
annual addition for such Participant as limited by subsection (a), then the excess shall be
corrected as permitted under the IRS Employee Plans Compliance Resolution System (currently
set forth in Revenue Procedure 2008-50).
Section 11.04. Code Section 415(e) Limits. For limitation years beginning on and
after January 1, 2000, any benefit limitations applied pursuant to Code Section 415(e) shall no
longer apply for employees or former employees who are Participants with an accrued benefit
under the Plan on or after January 1, 2000.
Section 11.05. Limitations on Service Credit Purchases.
(a)Notwithstanding any other provision of law to the contrary, if an Adopting
Employer adopts an Addendum to the Adoption Agreement that provides for service credit
purchases, the Administrator may modify a request by a Participant to make an Employee
Contribution if the amount of the Contribution would exceed the limits provided in Code Section
415 by using the following methods:
(1) If the law requires a lump sum payment for the purchase of service credit,
the Administrator may establish a periodic payment plan for the Participant to avoid a
contribution in excess of the limits under Code Sections 415(c) or 415(n).
(2)If payment pursuant to paragraph (1) will not avoid a contribution in
excess of the limits imposed by Code Section 415(c), the Administrator may either
reduce the Employee Contribution to an amount within the limits of that section or refuse
the Participant's Contribution.
- 110 -
(b) Effective for any permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a Participant makes one (1) or more contributions to
purchase permissive service credit under an Adopting Employer's Plan, then the requirements of
this Section will be treated as met only if:
(1)the requirements of Code Section 415(b) are met, determined by treating
the accrued benefit derived from all such Contributions as an annual benefit for purposes
of Code Section 415(b), or
(2)the requirements of Code Section 415(c) are met, determined by treating
all such Contributions as annual additions for purposes of Code Section 415(c).
(3)For purposes of applying paragraph (1), the Plan will not fail to meet the
reduced limit under Code Section 415(b)(2)(C) solely by reason of this paragraph (3), and
for purposes of applying paragraph (2), the Plan will not fail to meet the percentage
limitation under Code Section 415(c)(1)(B) solely by reason of this subsection (b).
(4)For purposes of this subsection (b) the term "permissive service credit"
means service credit—
(A)recognized by the Plan for purposes of calculating a Participant's
benefit under the Plan,
(B)which such Participant has not received under the Plan, and
(C)which such Participant may receive only by making a voluntary
additional contribution, in an amount determined under the Plan, which does not
exceed the amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation years beginning
after December 31, 1997, such term may include service credit for periods for which there is no
- 111 -
performance of service, and, notwithstanding subparagraph (B), may include service credited in
order to provide an increased benefit for service credit which a Participant is receiving under the
Plan.
(5)The Plan will fail to meet the requirements of this subsection (b) if—
(A)more than five (5) years of nonqualified service credit are taken
into account for purposes of this paragraph (5), or
(B)any nonqualified service credit is taken into account under this
subsection (b) before the Participant has at least five (5) years of participation
under the Plan.
(6)For purposes of paragraph (5), effective for permissive service credit
contributions made in limitation years beginning after December 31, 1997, the term
"nonqualified service credit" means permissive service credit other than that allowed with
respect to—
(A)service (including parental, medical, sabbatical, and similar leave)
as an employee of the Government of the United States, any State or political
subdivision thereof, or any agency or instrumentality of any of the foregoing
(other than military service or service for credit which was obtained as a result of
a repayment described in Code Section 415(k)(3)),
(B)service (including parental, medical, sabbatical, and similar leave)
as an employee (other than as an employee described in subparagraph (A)) of an
education organization described in Code Section 170(b)(1)(A)(ii) which is a
public, private, or sectarian school which provides elementary or secondary
- 112 -
education (through grade 12), or a comparable level of education, as determined
under the applicable law of the jurisdiction in which the service was performed,
(C)service as an employee of an association of employees who are
described in subparagraph (A), or
(D)military service (other than qualified military service under Code
Section 414(u)) recognized by such governmental plan.
In the case of service described in subparagraph (A), (B), or (C), such service will be
nonqualified service if recognition of such service would cause a Participant to receive a
retirement benefit for the same service under more than one Plan.
(7)In the case of a trustee-to-trustee transfer after December 31, 2001, to
which Code Section 403(b)(13)(A) or 457(e)(17)(A) applies (without regard to whether
the transfer is made between plans maintained by the same employer)—
(A)the limitations of paragraph (6) will not apply in determining
whether the transfer is for the purchase of permissive service credit, and
(B)the distribution rules applicable under federal law to the Plan will
apply to such amounts and any benefits attributable to such amounts.
(8)For an eligible Participant, the limitation of Code Section 415(c)(1) shall
not be applied to reduce the amount of permissive service credit which may be purchased
to an amount less than the amount which was allowed to be purchased under the terms of
the Plan as in effect on August 5, 1997. For purposes of this paragraph (8), an eligible
Participant is an individual who first became a Participant in the Plan before January 1,
1998.
- 113 -
Section 11.06. Interpretation of this Article.
(a)The annual additions and annual benefit of a Participant shall be adjusted pursuant
to this Article so as to produce the maximum annual benefit and maximum annual additions
permissible for such Participant.
(b)For purposes of this Section and subject to Code Section 415(f), all defined
benefit plans of an Adopting Employer, whether or not terminated, are to be treated as a single
defined benefit plan, and all defined contribution plans of an Adopting Employer are to be
treated as a single defined contribution plan. However, Adopting Employers shall be considered
as separate Employers in accordance with State law. The ability of an Adopting Employer to
amend the Adoption Agreement to the extent necessary to satisfy Code Section 415 is provided
by and subject to Section 18.01.
ARTICLE XII.
ACTUARIAL EQUIVALENT CONVERSION TABLES
Section 12.01. Early Retirement Reduction Table. Unless otherwise elected in the
Adoption Agreement or an Addendum thereto, the following early retirement reduction table is
to be used:
Number of Years Before
Normal Retirement*
Percentage of
Normal Retirement Benefit
0 1.000
1 .933
2 .867
3 .800
4 .733
5 .667
6 .633
7 .600
8 .567
9 .533
10
11
.500
.467
- 114 -
12
13
14
15
.433
.400
.367
.333
*Interpolate for whole months.
Section 12.02. Option B Tables.
(a) Participant Same Age Or Older –
(1)The following table is to be used for Participants who begin drawing
Retirement benefits on or after April 1, 2021, with respect to a Participant who is the
same age as or older than the Participant's Beneficiary:
Participant Age -
Beneficiary Age Contingent Annuity Factor
100% 75% 50% 25%
0 0.848 0.881 0.918 0.957
1 0.841 0.876 0.913 0.955
2 0.834 0.870 0.909 0.952
3 0.827 0.864 0.905 0.950
4 0.820 0.859 0.901 0.948
5 0.814 0.853 0.897 0.946
6 0.807 0.848 0.893 0.944
7 0.801 0.843 0.890 0.942
8 0.795 0.838 0.886 0.940
9 0.790 0.833 0.882 0.938
10 0.784 0.829 0.879 0.936
11 0.779 0.824 0.876 0.934
12 0.774 0.820 0.872 0.932
13 0.769 0.816 0.869 0.930
14 0.764 0.812 0.866 0.928
15 0.760 0.808 0.864 0.927
16 0.756 0.805 0.861 0.925
17 0.752 0.801 0.858 0.924
18 0.748 0.798 0.856 0.922
19 0.744 0.795 0.854 0.921
20 0.741 0.792 0.851 0.920
21 or more * * * *
*Factor for twenty (20) year age difference minus extrapolation factor below times number of
years in excess of twenty (20) that Participant's age exceeds the Participant's Beneficiary's age.
- 115 -
Contingent
Annuity
Percentage
Extrapolation
Factor
100% .004
75% .003
50% .002
25% .001
(2)The following table is to be used for Participants who begin drawing
Retirement benefits on or after January 1, 2013 and prior to April 1, 2021, with respect to
a Participant who is the same age or older than the Participant's Beneficiary:
Participant Age –
Beneficiary Age Contingent Annuity Factor
100% 75% 50% 25%
0 .833 .870 .909 .952
1 .826 .864 .905 .950
2 .819 .857 .900 .947
3 .811 .851 .896 .945
4 .804 .845 .891 .943
5 .797 .839 .887 .940
6 .790 .833 .882 .938
7 .783 .828 .878 .935
8 .776 .822 .874 .933
9 .769 .816 .870 .930
10 .763 .811 .866 .928
11 .757 .806 .861 .926
12 .751 .800 .858 .923
13 .745 .795 .854 .921
14 .739 .791 .850 .919
15 .733 .786 .846 .917
16 .728 .781 .843 .915
17 .723 .777 .839 .913
18 .718 .772 .836 .911
19 .713 .768 .833 .909
20 .708 .764 .830 .907
21 or more * * * *
*Factor for twenty (20) year age difference minus extrapolation factor below times number of
years in excess of twenty (20) that Participant's age exceeds the Participant's Beneficiary's age.
Contingent
- 116 -
Annuity
Percentage
Extrapolation
Factor
100% .005
75% .004
50% .003
25% .002
(b)Participant Younger –
(1)The following table is to be used for Participants who begin drawing
Retirement benefits on or after April 1, 2021, with respect to a Participant who is younger
than the Participant's Beneficiary:
Beneficiary Age -
Participant Age Contingent Annuity Factor
100% 75% 50% 25%
1 0.855 0.887 0.922 0.959
2 0.863 0.893 0.926 0.962
3 0.870 0.899 0.930 0.964
4 0.877 0.905 0.935 0.966
5 0.885 0.911 0.939 0.968
6 0.892 0.917 0.943 0.971
7 0.899 0.922 0.947 0.973
8 0.906 0.928 0.951 0.975
9 0.913 0.933 0.955 0.977
10 0.920 0.939 0.958 0.979
11 0.926 0.944 0.962 0.980
12 0.932 0.948 0.965 0.982
13 0.938 0.953 0.968 0.984
14 0.944 0.957 0.971 0.985
15 0.949 0.961 0.974 0.987
16 0.954 0.965 0.977 0.988
17 0.959 0.969 0.979 0.989
18 0.963 0.972 0.981 0.990
19 0.967 0.975 0.983 0.992
20 0.971 0.978 0.985 0.992
21 or more 0.974 0.980 0.987 0.993
- 117 -
(2)The following table is to be used for Participants who begin drawing
Retirement benefits on or after January 1, 2013 and prior to April 1, 2021, with respect to
a Participant who is younger than the Participant's Beneficiary:
Beneficiary Age –
Participant Age Contingent Annuity Factor
100% 75% 50% 25%
1 .841 .876 .914 .955
2 .848 .882 .918 .957
3 .856 .888 .922 .960
4 .863 .894 .926 .962
5 .870 .899 .931 .964
6 .877 .905 .935 .966
7 .885 .911 .939 .968
8 .892 .916 .943 .970
9 .898 .922 .947 .973
10 .905 .927 .950 .974
11 .912 .932 .954 .976
12 .918 .937 .957 .978
13 .924 .942 .960 .980
14 .930 .946 .964 .981
15 .935 .951 .967 .983
16 .941 .955 .969 .984
17 .945 .959 .972 .986
18 .950 .962 .974 .987
19 .955 .966 .977 .988
20 .959 .969 .979 .989
21 or more .960 .970 .980 .990
Section 12.03. Option C Table.
(a)The following table is to be used for Participants who begin drawing Retirement
benefits on or after April 1, 2021:
Period Factor
5 Years .985
10 Years .947
15 Years .898
20 Years .846
- 118 -
(b)The following table is to be used for Participants who begin drawing Retirement
benefits on or after January 1, 2013 and prior to April 1, 2021:
Period Factor
5 Years .973
10 Years .911
15 Years .842
20 Years .780
Section 12.04. Life Annuity Factors to be Used in Computing Actuarial Reserve
Death Benefit.
(a)The following table is to be used for to calculate actuarial reserve death benefits,
if any, payable on behalf of a Participant who dies on or after April 1, 2021:
Age Factor Age Factor
21 12.7738 43 12.2346
22 12.7581 44 12.1725
23 12.7424 45 12.1045
24 12.7268 46 12.0302
25 12.7112 47 11.9493
26 12.6959 48 11.8616
27 12.6805 49 11.7667
28 12.6653 50 11.6643
29 12.6500 51 11.5536
30 12.6344 52 11.4383
31 12.6184 53 11.3184
32 12.6017 54 11.1942
33 12.5838 55 11.0658
34 12.5644 56 10.9331
35 12.5427 57 10.7963
36 12.5187 58 10.6551
37 12.4917 59 10.5088
38 12.4613 60 10.3561
39 12.4263 61 10.1959
40 12.3865 62 10.0267
41 12.3414 63 9.8470
42 12.2908 64 9.6560
65 9.4536
- 119 -
(b)The following table is to be used for to calculate actuarial reserve death benefits,
if any, payable on behalf of a Participant who dies on or after January 1, 2013 and prior to April
1, 2021:
Age Factor Age Factor
21 12.5773 43 11.4236
22 12.5567 44 11.3274
23 12.5337 45 11.2264
24 12.5082 46 11.1207
25 12.4804 47 11.0102
26 12.4501 48 10.8952
27 12.4170 49 10.7755
28 12.3809 50 10.6509
29 12.3416 51 10.5213
30 12.2994 52 10.3869
31 12.2541 53 10.2479
32 12.2056 54 10.1041
33 12.1535 55 9.9552
34 12.0976 56 9.8010
35 12.0383 57 9.6415
36 11.9754 58 9.4769
37 11.9088 59 9.3076
38 11.8384 60 9.1331
39 11.7640 61 8.9537
40 11.6855 62 8.7698
41 11.6026 63 8.5818
42 11.5154 64 8.3903
65 8.1958
Section 12.05. Late Retirement Actuarial Increase Factors.
(a)The following table is to be used with respect to Participants who begin drawing
Retirement benefits on or after April 1, 2021:
Current Age* Factor
65 1.0000
66 1.1133
67 1.2425
68 1.3904
69 1.5603
70 1.7566
- 120 -
71 1.9843
72 2.2498
73 2.5613
74 2.9285
75 3.3646
*Assumes Normal Retirement at Age 65
(b)The following table is to be used with respect to Participants who begin drawing
Retirement benefits on or after January 1, 2013 and prior to April 1, 2021:
Current Age* Factor
65 1.0000
66 1.1317
67 1.2850
68 1.4645
69 1.6755
70 1.9246
71 2.2204
72 2.5734
73 2.9967
74 3.5073
75 4.1274
*Assumes Normal Retirement at Age 65
Figure factor using years and months. Divide difference between next highest age factor and age
factor lower, by twelve (12), then multiply by number of months. Add this onto age for years
factor to arrive at correct factor. (Round off to 4 decimals). Note: If normal retirement age
differs from sixty-five (65), factors must be supplied by Actuary.
Section 12.06. Offset Calculations; Other Annuity Forms. Actuarial equivalence
factors and conversion factors for other annuity forms shall be computed by an enrolled Actuary
on an actuarially equivalent basis. Actual Participant and Beneficiary ages are used for purposes
of Section 6.06. Conversion factors for other annuity forms assume the Participant is retiring at
age sixty-five (65).
Effective on or after April 1, 2021, the actuarial equivalence factors for Participants for
purposes of Section 6.06 and the conversion factors for purposes of other annuity forms are
computed using 75% of the Pri-2012 head-count weighted Healthy Retiree Mortality Table for
- 121 -
males with rates multiplied by 1.25 and projected generationally from 2012 using 60% of the
male improvement rates under the 2019 OASDI Trustees Report for the intermediate alternative
with maturity values calculated as of 2023, plus 25% of the Pri-2012 head-count weighted
Healthy Retiree Mortality Table for females with rates multiplied by 1.25 and projected
generationally from 2012 using 60% of the female improvement rates under the 2019 OASDI
Trustees Report for the intermediate alternative with maturity values calculated as of 2023 and
with interest of seven and three-eighths percent (7.375%). Likewise, effective on or after April 1,
2021, the actuarial equivalence factors for Beneficiaries for purposes of Section 6.06 and the
conversion factors for purposes of other annuity forms are computed using 25% of the Pri-2012
head-count weighted Healthy Retiree Mortality Table for males with rates multiplied by 1.25 and
projected generationally from 2012 using 60% of the male improvement rates under the 2019
OASDI Trustees Report for the intermediate alternative with maturity values calculated as of
2023, plus 75% of the Pri-2012 head-count weighted Healthy Retiree Mortality Table for
females with rates multiplied by 1.25 and projected generationally from 2012 using 60% of the
female improvement rates under the 2019 OASDI Trustees Report for the intermediate
alternative with maturity values calculated as of 2023 and with interest of seven and three-
eighths percent (7.375%).
Effective January 1, 2018 through March 31, 2021, the actuarial equivalence factors for
purposes of Section 6.06 shall be computed using the male RP 2000 Mortality Table set forward
two (2) years for Participants and the female RP 2000 Mortality Table set forward one (1) year
for Beneficiaries and with interest of seven and one-half percent (7.5%).
- 122 -
Effective January 1, 2018 through March 31, 2021, the conversion factors for other
annuity forms are based on the UP 1984 Mortality Table without age setback and with interest of
eight percent (8.0%).
Section 12.07. Lump Sum Payments. Effective January 1, 2001, a single sum
distribution of benefits payable under Section 7.05, or upon plan termination, or if required for
compliance with Code Section 401(a)(9), shall be computed on the basis of the actual age of the
Participant and/or Beneficiary at the time of distribution and under the following actuarial
assumptions:
(a)Interest: The applicable interest rate established by the Internal Revenue Service
under Code Section 417(e)(3) and accompanying regulations, without regard to updates under
the Pension Protection Act of 2006, as in effect for the month of September preceding the
calendar year during which the distribution is paid.
(b)Mortality: The applicable mortality table established by the Internal Revenue
Service pursuant to IRC Section 417(e)(3) and accompanying regulations, without regard to
updates under the Pension Protection Act of 2006.
(c) Age at Which Payments Begin: The greater of the Normal Retirement Date or the
age at the time of distribution to the Participant and/or Beneficiary.
ARTICLE XIII.
CONTRIBUTIONS
Section 13.01. Adopting Employer Contributions. The Adopting Employer shall
make the necessary Contributions to fund the Plan. The amount of these Contributions shall be
based upon the actuarial assumptions adopted by the Board of Trustees, the benefits provided in
the Plan, and the number of Participants and their respective ages, Earnings, and lengths of
Creditable Service and such other factors as the Board of Trustees shall deem appropriate to
- 123 -
assure proper funding of the Plan. Contributions by the Adopting Employer shall be applied as
necessary to assure the payment of Accrued Benefits to Participants and Beneficiaries.
Employer Contributions received by GMEBS by the last day of any month shall accrue Interest
from the first day of the following month.
Section 13.02. Employee Contributions. Participants or certain classes of Participants
may be required to make Contributions to the Plan as specified in the Adoption Agreement.
Unless otherwise specified by the Adopting Employer, Employee Contributions shall accrue
interest at the same rate and in the same manner as Employer Contributions. When elected by
the Adopting Employer to be picked up, the Adopting Employer shall pick up and pay
contributions in accordance with Code Section 414(h)(2) as follows:
(1)The contributions, although designated as Employee contributions, shall
be paid by that Adopting Employer in lieu of contributions by the Employee as elected by
the Adopting Employer in the Adoption Agreement, which shall be effective on a
prospective basis and constitute written formal action to implement the pick-up, and
(2)The Employee must not be given the option, on or after the effective date
of the pick-up, to have a cash or deferred election right (within the meaning of Treasury
Regulation Section 1.401(k)-1(a)(3)) with respect to designated Employee contributions,
which includes not having the option of receiving the amounts directly instead of having
them paid to the Plan.
Section 13.03. Withdrawal of Employee Contributions.
(a)Unless otherwise specified in the Adoption Agreement, if a non-vested
Participant's employment is terminated for any reason other than death, the Participant shall
request a withdrawal of the Participant's Employee Contributions plus interest, if any.
- 124 -
(b)Unless otherwise specified in the Adoption Agreement, if a vested Participant's
employment is terminated for any reason other than death or Retirement, the Participant may
request a withdrawal of the Participant's Employee Contributions (including any Contributions
made to purchase prior service credit) plus interest, unless the Participant chooses to claim the
Participant's vested benefit, in which case the Participant's Employee Contributions shall not be
withdrawn.
(c)Upon the Participant's termination, the Pension Committee shall provide notice to
the Participant of the opportunity to withdraw Employee Contributions (including any
Contributions made to purchase prior service credit, if permitted under the Adoption Agreement
or any Addendum thereto), and the Participant shall have sixty (60) days after receipt of such
notice to submit a request for withdrawal on an Applicable Form provided for that purpose.
Failure to make such a request within this sixty (60) day period shall result in the forfeiture of a
vested Participant's right to request withdrawal upon termination and shall result in forfeiture of
a non-vested Participant's right to the accrual of further interest. Unless otherwise specified in
the Adoption Agreement or any Addendum thereto, upon withdrawal of Employee Contributions
(including any Contributions made to purchase prior service credit, if permitted under the
Adoption Agreement or any Addendum thereto) pursuant to this Section, the Participant shall
forfeit for the Participant, the Participant's heirs and assigns all the Participant's rights, title, and
interest in the Plan, except as provided in subsection (d) below. Employee Contributions shall be
returned to the Participant within ninety (90) days of the receipt of the Participant's request. A
Participant may not withdraw Employee Contributions (including any Contributions made to
purchase prior service credit, if permitted under the Adoption Agreement or any Addendum
thereto) as long as the Participant remains in the employment of the Adopting Employer and the
- 125 -
Participant may not borrow against Employee Contributions (including any Contributions made
to purchase prior service credit, if permitted under the Adoption Agreement or any Addendum
thereto) at any time. A partial withdrawal of Employee Contributions is not permitted. Unless
otherwise provided in the Adoption Agreement or any Addendum thereto, if a Participant who
has made both mandatory Employee Contributions and Contributions to purchase prior service
credit withdraws any of such Contributions, all mandatory Employee Contributions and
Contributions to purchase prior service credit shall be withdrawn.
(d)Except as otherwise provided in the Employer's Adoption Agreement or any
Addendum thereto, if a Participant withdraws Employee Contributions (including any
Contributions made to purchase prior service credit, if permitted under the Adoption Agreement
or any Addendum thereto) in accordance with this Section, and if such Participant later resumes
employment with the Adopting Employer in an Eligible Employee class, then any service credit
or benefit amount forfeited by virtue of the withdrawal may be reinstated upon the Participant's
reemployment with the Adopting Employer, provided: (1) the Participant repays within six (6)
months following the reemployment date and prior to Termination of Employment with the
Adopting Employer all amounts previously withdrawn plus interest at the assumed actuarial rate
of return for the GMEBS Retirement Fund established by the Board as of date of repayment,
compounded annually from the date of return of contributions through the date of repayment;
and (2) provided the Participant satisfied the break in service rules, as applicable. Repayment of
Employee Contributions (including any Contributions made to purchase prior service credit)
under this subsection shall be made in a single lump sum, by a rollover or transfer of pre-tax
funds described in Sections 10.03 and 10.04 of this Plan, a lump sum payment of after-tax funds,
- 126 -
4873-6268-0344.5
after-tax payroll deductions, or any other method established by the Board, subject to any
limitations included in the Adoption Agreement or any Addendum thereto.
(e)For purposes of this Section, the amount of "interest" shall be determined as of
the date that the withdrawal under this Section is made, and the amount of interest shall comply
with any applicable provisions of Section 4(i)(10)(B)(i) of the Age Discrimination in
Employment Act ("ADEA").
Section 13.04. Cessation of Contributions Without Penalty. The Employer may
provide in the Adoption Agreement that Participants who have met certain retirement benefit
eligibility requirements shall no longer be required to make contributions to the Plan. Effective
on or after October 1, 2016, Participants who are receiving an In-Service Distribution or who are
otherwise receiving Retirement benefits while employed with the Adopting Employer shall not
be required to make contributions to the Plan.
Section 13.05. Continued Contributions During Leave of Absence. Subject to the
applicable limits of Code Section 415, if the terms of an authorized leave of absence permit the
Participant to continue accumulating Credited Service during said leave of absence, the
Participant shall be required to continue making Employee Contributions in the same amount
and at the same rate as immediately prior to the commencement of the leave of absence.
Section 13.06. Return of Contributions Upon Failure to Exhaust.
(a) Death of a Retired Participant. If a Retired Participant elects the Option A form
of benefit payment, and if upon the death of the Participant the sum of all benefits paid to the
Participant does not equal or exceed the amount of the Participant's Employee Contributions plus
interest posted thereon, then a lump sum payment in the amount of the difference, less any
amounts paid to the Retired Participant's surviving Spouse or to the Retired Participant's estate
- 127 -
pursuant to Section 8.12, shall be paid to the Retired Participant's designated beneficiary as
defined in this subsection (a), or if there is no such designated beneficiary, to the Retired
Participant's estate. In the event that 1) a Retired Participant elects retirement benefit payment
Option B or C, 2) the Post-Retirement Beneficiary predeceases the Participant, and 3) upon the
death of the Retired Participant, the sum of all benefits paid does not equal or exceed the amount
of the Participant's Employee Contributions plus interest posted thereon, then a lump sum
payment in the amount of the difference shall be paid to the Retired Participant's designated
beneficiary as defined in this subsection (a), or if there is no such designated beneficiary, to the
Participant's estate. In the event that 1) a Retired Participant elects retirement benefit payment
Option B or C, 2) the Post-Retirement Beneficiary survives the Retired Participant and dies after
such Beneficiary has begun receiving survivor benefit payments, and 3) the sum of all benefits
paid does not equal or exceed the amount of the Participant's Employee contributions plus
interest posted thereon, said lump sum payment shall be paid to the Post-Retirement
Beneficiary's designated beneficiary as defined in this subsection (a) or, if there is no such
designated beneficiary, to the Post-Retirement Beneficiary’s estate. For purposes of this
subsection, the term "designated beneficiary" shall mean the surviving Spouse of the Retired
Participant or Post-Retirement Beneficiary, as applicable, and the term "surviving" shall mean
surviving the Retired Participant or Post-Retirement Beneficiary, as applicable, by at least thirty-
two (32) days.
(b)In-Service Death of Participant Before Satisfying Pre-Retirement Death Benefit
Eligibility Requirements; Death of Terminated Vested Participant Where No Terminated Vested
Death Benefit Is Payable. If a Participant dies in the Service of an Adopting Employer before
satisfying the eligibility requirements for an in-service death benefit, the Participant's Employee
- 128 -
Contributions plus interest posted thereon, if any, shall be paid to the Participant's designated
beneficiary as defined in this subsection (b), or if there is no such designated beneficiary, to the
Participant's estate. If a Terminated Vested Participant dies before Retirement and the Plan does
not provide for Terminated Vested death benefits to be payable upon the death of such
Participant, the Participant's Employee Contributions plus interest posted thereon, if any, shall be
paid to the Participant's designated beneficiary as defined in this subsection (b), or if there is no
such designated beneficiary, to the Participant's estate. For purposes of this subsection, the term
"designated beneficiary" shall mean the surviving Spouse of the Participant and the term
"surviving" shall mean surviving the Participant by at least thirty-two (32) days.
(c) Death of a Participant or Terminated Vested Participant After Satisfying Pre-
Retirement Death Benefit Eligibility Requirements. The following provision shall apply in the
event that a Participant or Terminated Vested Participant who has satisfied the eligibility
requirements for a pre-retirement death benefit dies before Retirement, and payments are made
to a Pre-Retirement Beneficiary under the Plan. In the event the sum of all pre-retirement
benefits paid to a Pre-Retirement Beneficiary(ies) by virtue of the death of a Participant or
Terminated Participant, as applicable, does not equal or exceed the amount of the Participant's or
Terminated Participant's Employee Contributions plus interest posted thereon, a lump sum
payment in the amount of the difference shall be paid to the Pre-Retirement Beneficiary's
designated beneficiary as defined in this subsection (c), or if there is no such designated
beneficiary, to the estate of the Pre-Retirement Beneficiary (or the designated beneficiary or
estate of the last Pre-Retirement Beneficiary receiving payment, as applicable with respect to
Plans that permit payment to multiple Pre-Retirement Beneficiaries). For purposes of this
subsection, the term "designated beneficiary" shall mean the surviving Spouse of the Pre-
- 129 -
Retirement Beneficiary and the term "surviving" shall mean surviving the Pre-Retirement
Beneficiary by at least thirty-two (32) days.
(d)For purposes of this Section, the amount of "interest posted" shall be determined
as of the date that the lump sum payment payable under this Section is distributed, and the
amount of interest posted shall comply with any applicable provisions of
Section 4(i)(10)(B)(i) of the Age Discrimination in Employment Act ("ADEA").
ARTICLE XIV.
PENSION COMMITTEE
Section 14.01. Creation and Composition. There shall be a Pension Committee for
each Adopting Employer. Unless otherwise specified in the Adoption Agreement, the Pension
Committee shall be composed of the following:
For Municipal Corporations:
(a)City Clerk and City Manager.
(b)Two (2) Employee representatives appointed by the Governing Authority.
(c) Three (3) appointed members of the Governing Authority.
For Other Adopting Employers:
(a)Executive Director.
(b) Two (2) Employee representatives appointed by the Governing Authority.
(c)Four (4) appointed members of the Governing Authority.
Section 14.02. Responsibilities. The Pension Committee shall have the following
responsibilities:
(a)In its dealings with GMEBS or its duly appointed representatives, the Pension
Committee shall:
- 130 -
(1)Assure that accurate and complete information is furnished to GMEBS
with respect to eligibility for participation, Total Credited Service, Earnings, and Final
Average Earnings of Eligible Employees, including elected or appointed members of the
Governing Authority and Municipal Legal Officers if they are designated as Eligible
Employees in the Adoption Agreement.
(2)Assure the collection and remittance to GMEBS of all required
Contributions (including Employee Contributions, if applicable).
(3)Collect, and furnish to GMEBS, in accordance with its rules and
regulations, all reports, forms, and other records required or necessary to administer the
Plan, including but not limited to completed applications for participation (if applicable),
employee elections to participate (if participation is optional for a particular class),
employee census reports reflecting information necessary to complete the annual plan
valuation, completed pre-retirement beneficiary designation forms, completed leave of
absence reports, and completed retirement applications (including disability retirement
applications, if the Adopting Employer has elected in its Adoption Agreement to provide
disability retirement benefits).
(4)Provide reasonable prior notice to GMEBS of any amendments that the
Adopting Employer intends to make to the Adoption Agreement.
(5)Notify GMEBS of the termination of Participating Employees, and, if they
are permitted in the Adoption Agreement to participate in the Plan, the vacation of office
by elected or appointed members of the Governing Authority and Municipal Legal
Officers. Said notification should indicate whether the Employee has been involuntarily
- 131 -
terminated without cause (see Section 9.04 concerning 5-year vesting for Employees
involuntarily terminated without cause).
(6)Notify GMEBS when the Adopting Employer learns that an Eligible
Employee, Participant, Terminated Vested Participant, Retired Participant or Beneficiary
has been convicted of a public employment-related crime or other crime which could
result in a reduction or forfeiture of benefits (see Section 9.06).
(7)If the Adopting Employer has elected in the Adoption Agreement to
provide disability retirement benefits, notify GMEBS of determinations made by the
Pension Committee with respect to disability (see Section 2.23(b)) or continuation of
disability (see Section 6.06(e)).
(8)Notify GMEBS when the Adopting Employer learns of the death of an
Eligible Employee, Participant, Terminated Vested Participant, Retired Participant, or
Beneficiary.
(b)In dealing with those persons participating or eligible to participate in the Plan,
the Pension Committee shall:
(1)Be responsible for the enrollment of Eligible Employees, including elected
or appointed members of the Governing Authority and Municipal Legal Officers if they
are included as Eligible Employees in the Adoption Agreement.
(2)Handle distribution of all reports, forms, or other plan-related materials to
Participants, including but not limited to plan summary booklets and annual participant
statements.
(3)Handle disputes between the Adopting Employer and Participants in all
matters regarding the Plan and notify GMEBS of same.
- 132 -
(4)Handle and distribute as necessary any notices of eligibility, benefits,
available options, and any other notices required by this Plan, Contract, or rules and
regulations of GMEBS.
(5)Address Employee inquiries concerning eligibility for participation in the
Plan, enrollment, eligibility for retirement, disability, and/or death benefits, benefit
payment options, and other terms, conditions, and features of the Plan.
(c) The Pension Committee is not authorized to interpret the Basic Plan Document, or
matters of State and federal law as they relate to interpretation of the Basic Plan Document.
These matters are reserved for the sole discretion of the Board.
Section 14.03. Secretary. The Adopting Employer shall designate in the Adoption
Agreement a Pension Committee Secretary who shall have full authority to represent the Pension
Committee in all communications with GMEBS and the Adopting Employer's Employees,
including elected or appointed members of the Governing Authority and Municipal Legal
Officers.
Section 14.04. Legal Assistance. The City Attorney or other attorney appointed by the
Governing Authority shall furnish legal advice to the Pension Committee with respect to the Plan
and the Committee's assigned responsibilities hereunder.
Section 14.05. Plan Representative. The Adopting Employer shall designate in the
Adoption Agreement an individual to serve as Plan Representative. The Plan Representative
shall have full authority to represent the Governing Authority in all communications with
GMEBS and the Adopting Employer's Employees. The Pension Committee Secretary may serve
as the Plan Representative.
- 133 -
ARTICLE XV.
BOARD OF TRUSTEES
Section 15.01. Definitions. As used in this Article, "Act" refers to the Act of the
General Assembly creating the Board of Trustees of the Georgia Municipal Employees Benefit
System (O.C.G.A. § 47-5-1 et seq., a copy of which is included in the Appendix hereto), as
amended.
Section 15.02. Powers. The powers of the Board of Trustees as fixed by the Act are
hereby incorporated as part of the Plan. The Adopting Employer agrees that, in the
administration of the Plan, it will comply with all rules and regulations adopted by the Board of
Trustees under its authority as granted by the Act.
Section 15.03. Composition and Election. The composition of the Board of Trustees
and the election of its members shall be as provided by the Act and as may be provided in the
bylaws of the Board of Trustees.
Section 15.04. Officers. The election of officers by the Board of Trustees shall be
conducted as may be prescribed by the Act and as may be provided in the bylaws of the Board of
Trustees.
Section 15.05. Notice of Elections. The Board of Trustees shall provide through its
bylaws for the giving of notice of elections, notice of any vacancy on the Board, the method or
manner in which votes may be cast, and any other matter necessary or incident to the election of
members of the Board. The Board may also provide for a proxy vote, and may determine how,
when, and in what manner voting by proxy may be had in accordance with the Act and as may be
provided in the bylaws of the Board of Trustees.
- 134 -
Section 15.06. Voting. Each Adopting Employer shall be entitled to vote in any
election or other matter placed before the membership as provided in the bylaws of the Board of
Trustees.
Section 15.07. Voting Representative for the Adopting Employer. Unless
otherwise indicated in writing by an Adopting Employer’s chief executive or chief administrative
officer, for the purpose of casting the Adopting Employer’s vote in any election of members of
the Board of Trustees and in any other matters which the membership has the authority and
responsibility for resolving, each trustee shall be considered the official representative for the
Employer for which the trustee serves as an elected or appointed member of the Governing
Authority or Employee. For each other Adopting Employer, unless otherwise indicated in writing
by an Adopting Employer’s chief executive or chief administrative officer, the chief executive or
chief administrative officer shall be the Adopting Employer’s official representative for the
purpose of casting its vote in any election of members of the Board of Trustees and in any other
matters which the membership has the authority and responsibility for resolving.
Section 15.08. Qualified Public Accountant. The Administrator may engage on
behalf of all Participants an independent qualified public accountant to conduct such an
examination of any financial statements of the Plan, and of other books and records of the Plan,
as the qualified public accountant may deem necessary to enable said accountant to form an
opinion as to whether the financial statements and schedules required to be included in the
annual report of the Plan are presented fairly in conformity with generally accepted accounting
principles as applicable to a governmental plan, applied on a basis consistent with that of the
preceding Plan Year and who shall perform such other services for the Plan as the Administrator
may require.
- 135 -
Section 15.09. Fiduciary Insurance. The Board of Trustees may purchase fiduciary
liability insurance for any of its fiduciaries, or for itself, to cover liability or losses occurring by
reason of the act or omission of a fiduciary.
ARTICLE XVI.
GMEBS TRUST AGREEMENT
Section 16.01. General Provisions. The GMEBS Trust Agreement is the separate
document for the establishment and administration of the Trust Fund. All contributions under the
Plan shall be transferred to the Trust Fund to be held, managed, invested, and distributed as part
of the Trust Fund by the Board in accordance with the provisions of the Plan and separate
GMEBS Trust Agreement. At no time prior to the satisfaction of all liabilities with respect to
Participants and their Beneficiaries shall any part of the corpus or income be used for, or diverted
to, purposes other than the exclusive benefit of the Participants and their beneficiaries, including
the payment of reasonable fees, taxes (if applicable) and expenses of the Plan and Trust, subject
to the provisions in Article XVIII of this Basic Plan Document relating to the distribution of
excess assets in the event of a plan termination. In resolving any conflict between provisions of
the Plan and provisions of the Trust, the provisions of the Plan shall control.
Section 16.02. Group Trust Participation.
(a)If the investment is otherwise a permitted investment under Chapters 5 and 20 of
Title 47 of the O.C.G.A., the Board may, unless otherwise restricted by law, transfer all or any
portion of the assets of the Trust to a collective or common group trust, as permitted under
Revenue Ruling 81-100, as modified by Revenue Rulings 2004-67 and 2011-1 (or subsequent
guidance), that is operated or maintained exclusively for the commingling and collective
investment of monies, and in such case the group trust agreement shall be deemed adopted as
- 136 -
part of the GMEBS Defined Benefit Retirement Plan Trust Agreement without further action by
the Board.
(b)The separate account maintained by the group trust for an Adopting Employer's
Plan pursuant to subsection (a) above shall not be used for, or diverted to, any purpose other than
for the exclusive benefit of the Participants and beneficiaries of the Adopting Employer's Plan,
including the payment of reasonable fees, taxes (if applicable) and expenses of the Plan and
Trust, subject to the provisions in Article XVIII of this Basic Plan Document relating to the
distribution of excess assets in the event of a plan termination.
(c)For purposes of valuation, the value of the separate account maintained by the
group trust for an Adopting Employer's Plan shall be the fair market value of the portion of the
group trust held for the Adopting Employer's Plan, determined in accordance with generally
recognized valuation procedures.
ARTICLE XVII.
CLAIMS AND LITIGATION
Section 17.01. Disputes. In the event of disagreement between a Participant and the
Adopting Employer with respect to any rights, claims, or responsibilities under the Plan which
cannot be resolved by the Pension Committee as provided under Article XV, the Participant may
make an appeal regarding such rights, claims, or responsibilities to the Governing Authority. In
the event that any such rights, claims, or responsibilities result in a suit or other legal action by a
Participant or Beneficiary, such action shall be defended in the same manner as other suits
against the Adopting Employer. Any legal action on behalf of the Adopting Employer with
regard to the Plan shall be first authorized by the Governing Authority and shall be conducted in
the manner prescribed by the Governing Authority. GMEBS shall have no responsibility to
defend or pursue legal action arising under the Plan.
- 137 -
Section 17.02. Disputes involving Federal or State Law Compliance. In the event
there is a dispute involving federal or state law compliance, between a Participant or Beneficiary
and the Governing Authority or the Trustees, or between an Adopting Employer and the Trustees,
GMEBS is a necessary party to any such dispute, or suit, settlement, or release arising therefrom.
Section 17.03. Failure to Act. GMEBS shall not be responsible for the failure of the
Adopting Employers to perform any of their obligations under the Plan, including the duty to
remit payments to GMEBS, to provide necessary records concerning Participants and their
Earnings to GMEBS, or to perform any other functions required of the Adopting Employers by
applicable law, the Basic Plan Document, the Adoption Agreement (including any Addendum to
the Adoption Agreement, if applicable), the separate GMEBS Trust Agreement, or by the rules
and regulations of GMEBS. To the extent permitted under state and federal law, each Adopting
Employer shall indemnify and hold GMEBS harmless for any failure to pay, delay in payment or
other errors in processing benefits pursuant to this Plan due to the Adopting Employer's failure to
perform its obligations under the Plan or provide accurate data to GMEBS for the purpose of
administering the Plan.
ARTICLE XVIII.
AMENDMENT AND TERMINATION
Section 18.01. Amendment of the Plan by an Adopting Employer. The Governing
Authority shall have the right at any time, and from time to time, to amend, in whole or in part,
any or all of its elections in the Adoption Agreement; provided, however, that no such
amendment shall:
(a) Reduce the previously Accrued Benefit of any Participant or Beneficiary; or,
(b)Authorize or permit any part of the Trust Fund held by the Board to be diverted to
purposes other than for the exclusive benefit of Participants and their Beneficiaries; or,
- 138 -
(c)Operate to deprive any Participant or Beneficiary of any rights or benefits
irrevocably Vested in said Participant or Beneficiary under the Plan prior to such amendment,
except that the Governing Authority may make any and all changes or modifications to the
Adoption Agreement necessary to qualify the Plan or to keep the Plan qualified under the
Internal Revenue Code and the regulations thereunder, or any amendment thereto.
Notwithstanding the foregoing, the Adopting Employer may amend the Adoption
Agreement to the extent necessary to satisfy Code Section 415.
(d)No amendment to an Adoption Agreement shall become effective until approved by the
Administrator. In order to be approved by the Administrator, any amendment must comply with
all applicable state and federal laws and the Basic Plan Document. If the Administrator does not
approve an amendment, the Administrator shall continue to administer the Plan as if such
amendment had not been made.
In no event may an Adopting Employer amend the Basic Plan Document or the GMEBS
Trust Agreement separate document.
Section 18.02. Amendment of Plan by GMEBS.
(a)It is the intent of the Board that the Basic Plan Document, Adoption Agreement
form and Addendum form (collectively referred to for purposes of this Section 18.02 as "Plan")
shall be and remain qualified for tax purposes under the Code. The Administrator shall timely
submit the Plan for approval under the Code as necessary, and all expenses incident thereto shall
be borne by the GMEBS Investment Fund.
(b)GMEBS will maintain a record of the Participating Employers, and GMEBS will
make reasonable and diligent efforts to ensure that Adopting Employers have actually received
and are aware of all Plan amendments and that such Adopting Employers adopt new documents
- 139 -
when necessary. The provisions of this subsection shall supersede other provisions of the Plan to
the extent those other provisions are inconsistent.
(c)The Board or the Provider, as directed by the Board, hereby reserves the right to
amend the Plan without the consent of the Adopting Employers or of Participants (or any
Beneficiaries thereof) to make desired changes in the design of the Plan. A true copy of the
resolution of the Board approving such amendment shall be delivered to the Administrator and
the Adopting Employers. The Plan shall be amended in the manner and effective as of the date
set forth in such resolution, and the Adopting Employers, Employees, Participants, Beneficiaries,
the Administrator, and all others having any interest under the Plan shall be bound thereby.
(d)The Provider shall have the authority to advise and prepare amendments to the
Plan, for approval by the Board, on behalf of all Adopting Employers 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. In any event,
any amendment prepared by the Provider and approved by the Board will be provided by the
Administrator to Adopting Employers.
(e)Notwithstanding the foregoing paragraphs (c) and (d), effective on or after
January 1, 2016, for any Adopting Employer as of either:
(1)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 pre-approved plan, or
- 140 -
(2)as of the date the Plan is otherwise considered an individually designed
plan due to the nature and extent of the amendments,
such Adopting Employer shall execute a resolution to adopt any amendments that are approved
by the Board after the date under subparagraph (1) or (2) above, as applicable, within the earlier
of (i) ninety (90) days after such Board approval, or (ii) if applicable, the remedial amendment
period under Code Section 401(b) as applicable to governmental plans. If the Adopting
Employer is required to obtain a determination letter for any reason in order to maintain reliance
on the opinion letter, the Provider's authority to amend the Plan on behalf of the Adopting
Employer is conditioned on the Plan receiving a favorable determination letter.
Section 18.03. Termination by Adopting Employer.
(a)The Adopting Employer expects the Plan to be continued indefinitely but, of
necessity, reserves the right to terminate its Plan and Contributions thereunder at any time by
action of the Governing Authority, subject to the Administrator's approval. Such termination
shall be accomplished by the adoption of an ordinance or resolution (as applicable) by the
Governing Authority terminating the Plan. Such ordinance or resolution (as applicable) shall
conform to the rules and regulations of the Board governing Plan termination to the extent they
are consistent with this provision.
(b)Upon full or partial termination or a complete discontinuance of Employer
contributions, all affected Eligible Employees shall be deemed to be Participants, and the
Accrued Benefits of such Participants shall be Vested to the extent funded required by federal
law. The Pension Committee shall notify Participants, Terminated Vested Participants, Retired
Participants, and Beneficiaries of the full termination of the Plan, and shall provide a copy of
such notice and the names and addresses of the persons notified to the Administrator.
- 141 -
(c)Upon termination, the Adopting Employer shall provide to the Administrator
current Participant information necessary to calculate Accrued Benefits. Upon receipt of such
information, the Administrator shall prepare a list of all the Adopting Employer's Participants,
Retired Participants, Terminated Vested Participants, and Beneficiaries, showing for each the
present value of each individual's Accrued Benefit, as determined by the GMEBS Actuary as of
the date of termination.
(d)The Administrator, in accordance with the Board's current rules and regulations,
and with generally accepted accounting practices, shall determine the value of the Adopting
Employer's Trust Fund as of the termination date. All mandatory Employee Contributions, if
any, plus interest, and all Contributions made to purchase service credit, if any, plus any
applicable interest, shall be paid from the Trust Fund to the Participants, to the extent of
available Trust Fund assets. The Administrator shall then deduct from the Trust Fund a
termination fee established by GMEBS for services provided in terminating the Plan. The
Administrator, pursuant to the Board's rules and regulations, shall then allocate the remaining
assets for distribution of the present value of Accrued Benefits in lump sums to the classes listed
below. The benefits of each class shall be satisfied before proceeding to the next class. If at any
time the remaining Plan assets would be insufficient to provide the present value of Accrued
Benefits for the class in question, the remaining assets shall be applied on a pro rata basis within
that class, and all subsequent classes shall receive no benefit. The pro rata allocation referred to
above will be determined based upon the comparative value of each class member's Accrued
Benefit (present value expressed in a lump sum) when measured against the lump sum present
value of Accrued Benefits for the class as a whole.
- 142 -
CLASS A – Retired Participants or Beneficiaries who are receiving payments as of the
termination date.
CLASS B – Participants delaying Retirement beyond the Normal Retirement Date.
CLASS C – Participants eligible for Early Retirement.
CLASS D – Other Participants, terminated or active, who have met the requirements
for vesting as of the termination date.
CLASS E – All other Participants on a pro rata basis. Payment of benefits to Retired
Participants, Beneficiaries, and Participants by the Administrator as a
result of a Plan termination shall be limited solely to the assets available in
the Trust Fund.
(e)Any reversion of excess assets is only permitted if the excess assets resulted from
an erroneous actuarial computation, following the use of acceptable actuarial procedures using
reasonable assumptions as to interest and mortality pursuant to Treasury Regulation § 1.401-
2(b)(1). In its termination ordinance, the Governing Authority shall instruct the Administrator as
to the distribution of excess assets, if any, remaining after the satisfaction of Accrued Benefits
for the classes enumerated herein. In the absence of such instructions, any excess assets shall be
distributed to the Adopting Employer.
(f)Upon distribution of the assets as specified above, the Adoption Agreement, Basic
Plan Document, and the separate GMEBS Trust Agreement shall be regarded as terminated as to
that Adopting Employer and no Participant or Beneficiary shall have any further rights or claim
herein.
- 143 -
Section 18.04. Amendment of the Plan to Transfer Assets; Termination of
Contract.
(a)The Adopting Employer may amend the Adoption Agreement by ordinance or
resolution (as applicable) so as to provide for the transfer of assets to a successor trustee and to
terminate the existing Contract between the Adopting Employer and the Board. Any such
ordinance or resolution shall comply with Section 18.01 and with the requirements of the rules
and regulations of the Board regarding amendment and transfer of Plan assets, to the extent they
are consistent with this Section.
(b)In addition to other requirements, such ordinance or resolution shall:
(1)Designate a new trustee or trustees to replace the Board;
(2)Establish a month-end termination date, which shall be used for purposes
of valuing the Adopting Employer's Trust Fund assets and which shall be fixed by the
Administrator, taking into account the time reasonably required to liquidate GMEBS
Retirement Trust Fund assets (if necessary) for purposes of the termination and transfer,
the impact of the termination on the financial integrity of the Retirement System, and the
time reasonably required for GMEBS and the terminating Employer to complete
necessary administrative tasks associated with the termination. The termination date will
be no earlier than forty-five (45) days after the Adopting Employer provides written
notice to the Administrator of its intent to terminate;
(3) Provide that after the established termination date, GMEBS shall have no
further responsibility or obligation to administer the terminating Employer's retirement
plan, except as otherwise agreed and provided for by GMEBS and the terminating
Employer in the ordinance or resolution;
- 144 -
(4)Provide that the value of assets of the Adopting Employer's Trust Fund as
of the established termination date shall be determined based upon the value of the
Adopting Employer's Trust Fund as reflected in the unaudited financial statements for the
GMEBS Retirement Trust Fund as of the established termination date, subject to
verification and reconciliation against the most recent GMEBS Retirement Trust Fund
audit coinciding with or following the termination date.
(5)Provide for the transfer of assets held in the Adopting Employer's Trust
Fund to the successor trustee as follows:
(A)that no transfer shall take place until a successor Code Section
401(a) retirement plan and trust document have been adopted by the Adopting
Employer and furnished to GMEBS, together with a current IRS determination
letter or an opinion letter from an attorney confirming that the successor
retirement plan is tax qualified under Code Section 401(a);
(B)that as soon as reasonably practicable after the established
termination date, the Administrator will make an initial transfer to the successor
trustee of an amount to be determined by the Administrator in its sole discretion,
but in no event more than eighty-five percent (85%) of the value of the Adopting
Employer's Trust Fund, as reflected in the then most recently completed
unaudited monthly financial statement for the GMEBS Retirement Trust Fund;
and that prior to the completion of the initial transfer, the Administrator shall
deduct from the Adopting Employer's Trust Fund a termination fee established by
GMEBS for services provided in effecting the termination of the Adopting
- 145 -
Employer's participation in GMEBS and the transfer of assets to the successor
trustee;
(C)that as soon as reasonably practicable after completion of the
GMEBS Retirement Fund unaudited financial statement for the month including
the established termination date, the Administrator will make a second transfer to
the successor trustee in an amount equal to the remainder of the Adopting
Employer's Trust Fund assets, if any; and that in any event distribution of assets to
the successor trustee shall be completed within the time limits specified in the
separate GMEBS Trust Agreement;
(D)that after the established termination date, any funds remaining in
the Adopting Employer's Trust Fund shall not share in the gains or losses of the
GMEBS Retirement Trust Fund, notwithstanding any provision of the GMEBS
Basic Plan Document or separate GMEBS Trust Agreement to the contrary; and
that any investment gains or losses that would otherwise be credited to or debited
from the Adopting Employer's Trust Fund after the established termination date
shall not be taken into account. Rather, after the established termination date
through completion of the transfer of assets, any amount remaining in the
Adopting Employer's Trust Fund shall earn interest at the same rate as the
GMEBS active cash management account which shall be credited monthly until
the transfer of assets is completed; and,
(E)that if the audit of the GMEBS Retirement Trust Fund for the year
including the established termination date reflects that the value of the Adopting
Employer's Trust Fund on the termination date was understated or overstated in
- 146 -
the unaudited financial statement relied upon, then GMEBS or the Adopting
Employer shall remit to the other the amount of any overpayment or
underpayment, unless said amount is less than One Thousand Dollars ($1,000).
Such remittance shall be made in a lump sum with interest. Said interest shall be
calculated at the same rate as the GMEBS active cash management account and
credited monthly as of the last day of each month following the established
termination date up until the date of the remittance.
(6)Provide that the assets of the Plan will continue to be held by the successor
trustee for the exclusive benefit of Participants and Beneficiaries.
(7)State that the existing retirement rights of Employees, Participants, and
Beneficiaries shall not be impaired.
(8)Provide that upon completion of the transfer of assets, the GMEBS Board
of Trustees shall have no further fiduciary responsibility for investment of the Adopting
Employer's Trust Fund assets or payment of liabilities, and the Adopting Employer's
Contract and participation under the separate GMEBS Trust Agreement and Trust Fund
shall be considered terminated.
(9)Provide that, to the extent permitted by federal, state or local law, the
Adopting Employer agrees to indemnify the Board of Trustees and the Administrator
from and against any loss, liability or claim arising out of the Employer's maintenance of
the Plan from and after the date of the final transfer of assets.
(10) Provide that the surviving plan must provide each Participant on whose
behalf Plan assets are transferred a benefit equal to or greater than the benefit the
Participant had accrued, if any, immediately before transfer of assets.
- 147 -
Section 18.05. Involuntary Termination.
(a)The Board may involuntarily terminate the Plan as to an Adopting Employer in
the event of any of the following occurrences:
(1)Failure of the Employer to comply with the terms of the Basic Plan
Document, Adoption Agreement (or Addendum), or separate GMEBS Trust Agreement
including, but not limited to, failure to pay required Contributions in a timely manner;
(2)Failure of the Adopting Employer to provide to GMEBS or respond to
requests from GMEBS for information necessary for GMEBS to administer the Plan;
(3)Failure of the Adopting Employer to adequately fund the Plan in
accordance with the GMEBS funding policy, or to adopt or abide by a funding action
plan approved by the Board;
(4)Receipt of written notice from an Adopting Employer's Governing
Authority of its intent to discontinue further Contributions;
(5)Insistence by the Employer on enforcing an amendment to the Adoption
Agreement which the Board has disapproved; or
(6)Failure of the Adopting Employer to maintain qualification status under
Code Sections 401(a) and 414(d).
(b)The rights, benefits, and entitlements under the Plan of any Participant, including
those of the Participant's Beneficiary, any other provision of the Plan notwithstanding, before or
after Retirement, death, or other termination of employment shall, upon the failure of the
Adopting Employer to pay and to continue to pay its required Contributions, be limited as
specified in this Article.
- 148 -
(c)In the event of an involuntary termination, the GMEBS Board may in its sole
discretion adopt a resolution providing for: (i) designation of the members of the Employer's
Governing Authority as successor trustees for the Plan; (ii) designation of a person or entity
other than the Employer's Governing Authority as successor trustee for the Plan; or (iii) outright
termination of the Plan and distribution of assets to Participants and Beneficiaries. The specific
terms and conditions associated with involuntary termination shall be as provided in the Board
resolution. Neither the Administrator nor the GMEBS Board shall be subject to lawsuit or
liability arising from the exercise of its discretion as provided herein.
(d)The Administrator shall notify the Governing Authority, Participants, and
Beneficiaries in writing of an involuntary termination and the reasons therefor. Said notice shall
also fix a termination date. Upon the request of the Administrator, the Employer shall within a
reasonable period provide the Administrator with the last known addresses of Participants and
Beneficiaries for this purpose. Neither the Administrator nor the GMEBS Board shall be subject
to lawsuit or liability for non-compliance with this paragraph arising from the failure of the
Employer to provide such information to the Administrator.
(e)The Administrator shall determine the value of the Adopting Employer's Trust
Fund as of the termination date in accordance with the procedures described in Section
18.05(b)(4) of this Article. The Board shall deduct from the Trust Fund a termination fee
established by GMEBS for services provided in effecting termination of the Adopting
Employer's participation in GMEBS.
(f)Successor Trustee.
(1)Governing Authority as Successor Trustee. If upon involuntary
termination, the GMEBS Board by resolution designates the members of the Employer's
- 149 -
Governing Authority as successor trustees, the Adopting Employer shall be obligated to
furnish GMEBS with a successor retirement plan and related documents as provided in
Section 18.04(b)(5)(A). Distribution of assets to the Governing Authority or to a
designee specified by the Governing Authority in writing, as successor trustee, shall then
occur in accordance with the transfer procedures described in Section 18.04(b)(5).
Payment of benefits to Retired Participants and Beneficiaries shall become the
responsibility of the Governing Authority, as successor trustees, as of the termination
date, except as otherwise provided in the Board's termination resolution.
(2)Other Entity as Successor Trustee. If upon involuntary termination, the
GMEBS Board by resolution designates a successor trustee other than the members of the
Employer's Governing Authority, distribution of assets to the successor trustee shall
occur in accordance with the transfer procedures described in Section 18.04(b)(5) upon
the Board's receipt of retirement plan and related documents as described in Section
18.04(b)(5)(A), and any other information reasonably requested by the Board. Payment
of benefits to the Retired Participants and Beneficiaries shall become the responsibility of
the successor trustee as of the termination date, except as otherwise provided in the
Board's termination resolution.
(3)Termination without Successor Trustee. If upon involuntary termination,
the GMEBS Board by resolution terminates the Employer's Plan outright, the assets of
the Employer's Trust Fund will not be transferred to a successor trustee, but will be
distributed to Participants and Beneficiaries in accordance with and subject to the
termination provisions of Section 18.03(b)-(f), except as otherwise provided in this
subsection. The Employer shall provide current Participant information necessary to
- 150 -
calculate Accrued Benefits as required under Section 18.03(c), within a reasonable period
after the Administrator's request for such information. Any excess assets remaining after
satisfaction of Accrued Benefits and payment of the termination fee shall be distributed
to the Employer.
(g)Freezing of Benefit Accruals. In the event of an Employer's failure to pay
required Contributions, the GMEBS Board may by resolution freeze benefit accruals under the
Employer's Plan, as an alternative to involuntary termination. If the Board adopts such a
resolution, the Employer's Plan must continue to be maintained as a qualified plan and the
Employer will be responsible for funding benefits as determined under the frozen Plan's
provisions. The Board's resolution to freeze benefit accruals shall specify the extent to which
Service and Earnings after the freeze date will or will not be counted for purposes of computing
the amount of benefits payable under the Plan, and for purposes of meeting the minimum service
requirements for vesting and benefit eligibility under the Plan. The resolution shall also specify
the conditions for recommencing benefit accruals under the Plan. The resolution may also
provide that, in the event of an Employer's continued failure to pay required Contributions, the
Employer's Plan will be terminated outright as of a date certain or upon the Board's adoption of a
resolution providing for outright termination, consistent with the provisions of subsection (f)(3).
(h)The Board in its discretion may require an Employer to obtain appropriate IRS
approval of the qualified status of the terminating Plan or a successor plan.
(i)In the event that an Adopting Employer fails to comply with the terms of the
Basic Plan Document, Adoption Agreement (or Addendum), or the separate GMEBS Trust
Agreement including, but not limited to, failure to pay required Contributions in a timely manner,
- 151 -
the Board may in its sole discretion pursue any other legal or equitable means that it deems
appropriate, including the filing of a writ of mandamus, to facilitate such compliance.
Section 18.06. Termination of the Basic Plan Document by the Board. The Board
reserves the right to completely terminate the Basic Plan Document and the separate GMEBS
Trust Agreement. In such an event, the provisions of Section 18.03 shall be applied to each
Adopting Employer.
ARTICLE XIX.
NON-ALIENATION OF BENEFITS
(a)None of the benefits, payments, proceeds, or distributions payable under the Plan
shall be subject to the claim of any creditor of any Participant or to the claim of any creditor of
any Beneficiary hereunder, or to any legal process of levy or attachment by any creditor of any
such Participant or Beneficiary; and no such benefits shall be in any manner liable for or subject
to the debts, liabilities, engagements, or torts of any Participant or Beneficiary; and neither shall
any such Participant or Beneficiary have any right to alienate, commute, anticipate, transfer,
encumber, pledge, or assign any of the benefits, payments, proceeds, or distributions under this
Plan.
(b)Nothing in subsection (a) shall be construed to preclude the Administrator, subject
to any terms and conditions set by the Administrator, from making a deduction and direct
payment to the Adopting Employer or GMEBS on behalf of a Retired Participant for the limited
purpose of paying for a contribution or premium for a post retirement benefit offered by the
Adopting Employer or GMEBS, if the Retired Participant elects to have such deduction and
direct payment made. An election by the Retired Participant for such deduction and direct
payment may be revoked at any time.
- 152 -
(c)Nothing in subsection (a) shall be construed to preclude the Administrator, subject
to any terms and conditions set by the Administrator, from making a deduction and direct
payment on behalf of a Retired Participant as provided under Section 845(a)(4)(D) of the
Pension Protection Act of 2006 in its current form or as amended, and as interpreted by the
Internal Revenue Service, for the limited purpose of paying premiums for coverage for an
eligible retired public safety officer, the Participant's spouse, and dependents, by an accident or
health insurance plan or qualified long-term care insurance contract as defined in Section
7702B(b) of Title 26 of the United States Code, if the Retired Participant elects to have such
deduction and direct payment made. An election by a Retired Participant for such deduction and
direct payment may be revoked at any time.
ARTICLE XX.
MISCELLANEOUS
Section 20.01. Construction.
(a)Words used in this Plan in the singular or plural shall be construed as being in the
plural or singular where appropriate.
(b)The Plan shall be construed, enforced, and administered and the validity thereof
determined in accordance with the Code, and, when not inconsistent with the Code, the laws of
the State of Georgia and the bylaws of the Board.
(c)In resolving any conflict between provisions of the Plan and in resolving any
other uncertainty as to the meaning or intention of any provision of the Plan, the interpretation
that (i) causes the Plan to constitute a qualified governmental retirement plan under the
provisions of Code Sections 401 and 414(d) and the Trust as exempt from tax under Code
Sections 501 and 115, and (ii) causes the Plan to comply with all applicable requirements of the
Code and federal law shall prevail over any different interpretation.
- 153 -
(d)In resolving any conflict between the Plan and any policy or contract issued under
the Plan, the provisions of the Plan shall prevail.
(e)The headings and subheadings in the Plan are inserted for convenience of
reference only and are not to be considered in the construction of any provision of the Plan.
(f)The terms of this Basic Plan Document shall control except as otherwise provided
in an Adopting Employer's Adoption Agreement (including any Addendum to the Adoption
Agreement, if applicable), as accepted by or on behalf of the GMEBS Board, in which case the
terms of the Adopting Employer's Adoption Agreement (including any Addendum to the
Adoption Agreement) shall control.
(g)Neither the establishment nor maintenance of the Plan nor any amendment thereof,
nor any act or omission under the Plan or resulting from the operation of the Plan shall be
construed:
(1)as conferring upon any Participant, beneficiary, or any other person a right
or claim against the GMEBS Investment Fund, the Trust Fund, the Trustees, the
Adopting Employer, or the Administrator, except to the extent that such right or claim
shall be specifically expressed and provided in the Plan;
(2)as a contract or Agreement between the Adopting Employer and any
Participant or other person;
(3)as being consideration for, or an inducement or condition of, employment
of any Participant or other person, or as affecting or restricting in any manner or to any
extent whatsoever the rights or obligations of the Adopting Employer or any Participant
or other person to continue or terminate the employment relationship at any time; or
- 154 -
(4)as giving any Participant the right to be retained in the service of the
Adopting Employer or to interfere with the right of the Adopting Employer to discharge
any Participant or other person at any time.
Section 20.02. Non-Diversion.
(a)The assets of the Plan shall never inure to the benefit of an Adopting Employer
and shall be held for the exclusive purposes of providing benefits to Participants in the Plan and
their beneficiaries and defraying reasonable fees, taxes (if applicable) and expenses of the Plan
and Trust, except in the case of a contribution which is made by an Adopting Employer under a
mistake of fact as determined solely by the Administrator. Such contribution shall be returned to
the Adopting Employer, upon demand, and shall be reduced for any loss incurred but unadjusted
for any gains earned during the time the mistaken contribution was part of the Trust Fund.
(b)Trust assets shall be managed in compliance with Code Section 503(b).
Section 20.03. Legally Incompetent; Power of Attorney. Any Participant, Retired
Participant, Terminated Vested Participant, or Beneficiary receiving or claiming benefits under
the Plan shall be conclusively presumed to be mentally competent and of age until the
Administrator receives a written notice, in a form and manner acceptable to it, that such person is
incompetent or a minor, and that a guardian or other person legally vested with the care of such
person's estate has been appointed. In the event a guardian of the estate of any person receiving
or claiming benefits under the Plan shall be appointed by a court of competent jurisdiction,
payments shall be made to such guardian and the guardian may take any and all actions with
respect to the person's interest under the Plan in accordance with the terms of the appointment,
provided that proper proof of appointment is furnished in a form and manner suitable to the
Administrator. Any payment so made shall be a complete discharge of liability therefor under
- 155 -
the Plan. No person may act as an attorney-in-fact for an Employee, Participant, Terminated
Vested Participant, Retired Participant or Beneficiary with respect to a matter involving the Plan
unless a valid power of attorney document appointing such person and authorizing such action is
submitted in a form and manner acceptable to the Administrator. The Administrator shall be
entitled to rely upon a power of attorney document which it reasonably determines to be valid,
without liability for actions taken by the Administrator at the request of the designated
attorney-in-fact, unless and until the Administrator receives notice that the power of attorney is
no longer effective.
Section 20.04. Benefits Supported Only by Trust Fund. Any person having any
claim under the Plan shall look solely to the assets of the Trust Fund for satisfaction. In no event
shall the Adopting Employer, or any of its employees or agents, be liable in their individual
capacities to any person whomsoever, under the provisions of the Plan or of the separate
GMEBS Trust Agreement.
Section 20.05. Non-Discrimination. The Adopting Employer, through the Pension
Committee, shall administer the Plan in a uniform and consistent manner with respect to all
Participants.
Section 20.06. Limitation of Liability; Legal Actions.
(a)It is expressly understood and agreed by each Employee who becomes a
Participant hereunder that, except for willful neglect or fraud, neither the Adopting Employer,
the Plan Representative, nor the Board of Trustees shall be in any way subject to any suit or
litigation, or to any legal liability, for any cause or reason or thing whatsoever, in connection
with the Plan or its operation, and each such Participant hereby releases the Adopting Employer,
- 156 -
all its employees and agents, the Plan Representative, and the Board of Trustees from any and all
liability or obligation.
(b)The Adopting Employer and the Plan Representative shall be the only necessary
parties to any action or proceeding involving any rights under the Plan or the proper
administration thereof, and no Participant, Beneficiary, or other persons having or claiming to
have an interest in the Plan shall be entitled to any notice of process. Any final judgment which
is not appealed or appealable that may be entered in any such action or proceeding shall be
binding and conclusive on the parties hereto and all persons having or claiming to have an
interest in the Plan.
Each fiduciary under the Plan shall be responsible only for the specific duties assigned
under the Plan and shall not be directly or indirectly responsible for the duties assigned to
another fiduciary. Any person or a group of persons may serve in more than one (1) fiduciary
capacity with respect to the Plan.
Section 20.07. Claims. Any payment to a Participant or Beneficiary, or to their legal
representatives, in accordance with the provisions of the Plan, shall to the extent thereof be in
full satisfaction of all claims hereunder against the Plan Representative or the Adopting
Employer, either of which may require such Participant, Beneficiary, or legal representative, as a
condition precedent to such payment, to execute a receipt and release therefor in such form as
shall be determined by the Plan Representative or the Adopting Employer.
Section 20.08. Errors in Benefits.
(a)Effective upon issuance of an Internal Revenue Service favorable opinion letter
which covers this provision, notwithstanding any provision in this Section 20.08 to the contrary,
any action upon an underpayment or overpayment shall be brought within six (6) years after the
- 157 -
same becomes due and payable. Likewise, GMEBS shall not be required to correct any
underpayment or overpayment more than six (6) years after said underpayment or overpayment
occurred.
(b)Underpayments. Any underpayments from the Trust Fund to a Retired Participant
or to a Beneficiary caused by administrative errors shall be corrected with interest compounded
annually from the date of the miscalculated payment. The rate applied shall be the actuarially
assumed rate utilized by the plan actuary for estimating future plan investment earnings or such
other rate established by the Board that is permissible under federal and state law and applicable
guidance as of the date of the correction. Underpayments shall be made up from the Adopting
Employer's Trust Fund. Effective with respect to underpayments corrected on or after January 1,
2017, in the event a Retired Participant, Pre-Retirement Beneficiary or Post-Retirement
Beneficiary to whom a corrective payment is due dies before such payment is made, said
corrective payment shall be paid to such Retired Participant’s, Pre-Retirement Beneficiary’s or
Post-Retirement Beneficiary’s designated beneficiary, as defined in this subsection (b) or, if
there is no such designated beneficiary, to the deceased Retired Participant’s, Pre-Retirement
Beneficiary’s or Post-Retirement Beneficiary’s estate. For purposes of this subsection, the term
“designated beneficiary” shall mean the surviving Spouse of such Retired Participant, Pre-
Retirement Beneficiary, or Post-Retirement Beneficiary, as applicable, and the term "surviving"
shall mean surviving the Retired Participant, Pre-Retirement Beneficiary, or Post-Retirement
Beneficiary, as applicable, by at least thirty-two (32) days.
(c) Overpayments. In the event of an overpayment from the Trust Fund to a Retired
Participant or to a Beneficiary caused by administrative error, the following provisions shall
apply:
- 158 -
(1) Corrective Amendment Option. In the event of an overpayment that is
due to misapplication of the terms of the Plan, the Adopting Employer may be provided
the opportunity to amend its Adoption Agreement (a "Corrective Amendment") in order
to provide for such overpayment to be permissible under the terms of the plan, but only if
the Corrective Amendment is consistent with the circumstances resulting in the
overpayment and with the Basic Plan Document, as determined by the Administrator.
The Corrective Amendment may be effective either retroactively only, or both
retroactively and prospectively.
(2)Determination of Reasonableness of Collection from Retired Participants
or Beneficiaries. In the event that the Adopting Employer does not adopt a Corrective
Amendment, or that the circumstances resulting in the overpayment or the Basic Plan
Document would not permit such an amendment, the Administrator and the Adopting
Employer will consult in making a determination of whether collection of the
overpayment (in full or in part) from a Retired Participant or Beneficiary is reasonable
under the particular facts and circumstances involved. In their determination, the
Administrator and the Adopting Employer shall consider (1) the hardship of collection on
the Retired Participant or Beneficiary; (2) any legal impediments to collection; and (3)
the potential risk of litigation if collection is pursued, in consultation with the affected
Adopting Employer's counsel.
(3)Failure to Reach Agreement on Reasonableness of Collection. If the
Administrator and the Adopting Employer cannot reach agreement within six (6) months
as to whether collection of an overpayment from a Retired Participant or Beneficiary is
- 159 -
reasonable, the Board shall make this determination, considering the factors outlined
above in paragraph (2).
(4)Collection Process. If a determination under this subsection is made that
collection from the Retired Participant or Beneficiary is reasonable, the overpayment
shall be corrected with interest compounded annually from the date of the miscalculated
payment. The rate applied shall be the actuarially assumed rate utilized by the plan
actuary for estimating future plan investment earnings or, effective on and after January 1,
2014, such other rate established by the Board that is permissible under federal and state
law and applicable guidance as of the date of the correction. In collecting amounts of the
overpayment (in full or in part), the Administrator shall have the discretion to use any of
the following options: (i) single sum payments; (ii) installment payments; (iii) actuarial
reduction of future Retirement payments; or (iv) deductions from Retirement payments.
Retirement payment deductions shall not exceed fifty percent (50%) of the amount of
payment from which the deduction is made.
(5)Corrective Payment by Adopting Employer. If full collection of an
overpayment is not achieved, either because of a determination that full collection from
the Retired Participant or Beneficiary is not reasonable, or because efforts at collection do
not result in a full collection of the overpayment, the Adopting Employer shall be
responsible for making a separate, supplemental contribution to the Trust Fund in the
amount of any uncollected overpayment, including interest as calculated under paragraph
(4) ("corrective contribution"). Any corrective contribution by a Participating Employer
must be made at the same time that the next regular employer contribution is due under
the Plan. In the event employer contributions are paid in installments, the corrective
- 160 -
contribution may be paid over that same installment period, but not to exceed a twelve
(12) month period. The corrective contribution may not be included as a portion of the
general liability of the Plan for which regular funding contributions are made.
(6)Alternative Correction Approach. If the overpayment involves
circumstances that are not addressed in the preceding provisions of this subsection, or if
in the determination of the GMEBS board, the overpayment cannot be practicably or
appropriately corrected using the methods addressed in this subsection, the Administrator
may develop a correction approach that is appropriate under the circumstances,
permissible under state and federal law and applicable guidance, and equitable to the
parties involved.
(d)Overpayments Due to Delay in Notification of Death of Participant or Beneficiary.
(1)In the event that GMEBS makes a payment to a Retired Participant or to a
beneficiary following the death of such Participant or beneficiary, GMEBS will make
reasonable efforts (not including litigation or collections processes) to recover said
overpayment for a period of 60 days after receiving notice from the Adopting Employer
of the Participant's or beneficiary's death. If after 60 days from the date on which
GMEBS receives notice of the Participant's or beneficiary's death, GMEBS is unable to
recover the overpayment, the Adopting Employer shall be responsible for making a
separate, supplemental contribution to the Trust Fund in the amount of any such
uncollected overpayment, including interest as calculated under paragraph (c)(4) above
("corrective contribution"). Any corrective contribution by an Adopting Employer must
be made at the same time that the next regular Employer Contribution is due under the
Plan. In the event Employer Contributions are paid in installments, the corrective
- 161 -
contribution may be paid over that same installment period, but not to exceed a twelve
(12) month period. The corrective contribution may not be included as a portion of the
general liability of the Plan for which regular funding contributions are made.
(2)If the overpayment involves circumstances that are not addressed in the
preceding provisions of this subsection, or if in the determination of the GMEBS Board,
the overpayment cannot be practicably or appropriately corrected using the methods
addressed in this subsection, the Administrator may develop a correction approach that is
appropriate under the circumstances, permissible under state and federal law and
applicable guidance, and equitable to the parties involved.
Section 20.09. Notice. Any notice given under the Plan shall be sufficient if given to:
(1) the Board if addressed to the Administrator at its office; (2) the Adopting Employer if
addressed to the address of the Governing Authority indicated in the Adoption Agreement; or (3)
a Participant or Beneficiary, when addressed to the Participant at the Participant's address as it
appears in the records of the Administrator or the Adopting Employer.
Section 20.10. Right of Recovery. If the Administrator makes any payment that
according to the terms of the Plan and the benefits provided hereunder should not have been
made, the Administrator may recover that incorrect payment, whether or not it was made due to
the error of the Administrator, from the person to whom it was made, or from any other
appropriate party. If any such incorrect payment is made directly to a Participant, the provisions
of Section 20.08 apply.
Section 20.11. Evidence of Action. All ordinances, resolutions, forms, orders, requests,
documents and instructions provided to the Administrator by an Adopting Employer or by any
duly authorized representative (e.g., Plan Representative or Pension Committee Secretary), shall
- 162 -
be in writing and the Administrator shall be fully protected in acting in accordance with such
ordinances, resolutions, forms, orders, requests, documents and instructions.
Section 20.12. Reliance. The Administrator or Board shall not incur any liability in
acting upon any notice, request, signed letter, telegram, form, or other paper or document
believed by the Administrator or Board to be genuine or to be executed or sent by an authorized
person.
Section 20.13. Information to Administrator. As a condition precedent to GMEBS's
administration of the Plan, the Adopting Employer shall provide current information to the
Administrator including but not limited to the name, date of birth, date of employment,
Enrollment Date, annual Earnings, leaves of absences, Vesting eligibility, Credited Service and
Termination date for each Eligible Employee who is or who is expected to become a Participant
under the Plan, together with any other information which the Administrator deems necessary.
The information provided by the Adopting Employer to the Administrator shall be conclusive as
to all persons.
Section 20.14. Participant Data to Administrator. Each Participant and each
Beneficiary of a deceased Participant, as applicable, must provide the Administrator any
evidence, data or other information as requested by the Administrator for the purpose of
administering the Plan. The provisions of this Plan are effective for the benefit of each
Participant upon the condition precedent that each Participant furnishes promptly full, true and
complete evidence, data and information when requested by the Administrator. The
Administrator shall advise each Participant of the effect of the failure to comply with its request.
Section 20.15. Treatment of Vacated Court Orders. Notwithstanding any provision
to the contrary, a period of employment that was compelled by court order which was
- 163 -
subsequently vacated, reversed, or otherwise set aside shall not count as Credited Service under
the Plan, except for a period, or partial period, during which the Participant satisfied the
eligibility requirements for participation under the Plan. Likewise, Earnings paid to a Participant
during any such period shall not be used to compute the Participant’s Final Average Earnings,
except for a period, or partial period, during which the Participant satisfied the eligibility
requirements for participation under the Plan. In the event such a Participant Retires before the
order compelling the Participant’s reinstatement is vacated, reversed, or otherwise set aside, the
Participant’s Credited Service and Final Average Earnings shall be revised following such
reversal, vacation or otherwise setting aside of the Participant’s reinstatement, and the
Participant’s Retirement benefits shall be recalculated and adjusted accordingly, effective the
first day of the month following such action. Any overpayments to the Participant resulting from
including Credited Service and Earnings from any such period or partial period of employment
during which the Participant did not satisfy the eligibility requirements for participation under
the Plan shall be corrected in accordance with Section 20.08 of the Basic Plan Document.
Section 20.16. Entire Plan. The Plan document and the documents incorporated by
reference herein shall constitute the only legally governing documents for the Plan. No
statement by the Trustees, Adopting Employer, or Administrator shall be used in any claim
unless in writing, signed by the party against whom the claim is being made.
The terms of the foregoing Basic Defined Benefit Plan Document are hereby adopted and
agreed to pursuant to a resolution of the Board of Trustees of the Georgia Municipal Employees
Benefit System.
- 164 -
APPENDIX
REFERENCED SECTIONS OF O.C.G.A.
Copies of sections of the Official Code of Georgia Annotated ("O.C.G.A.") referenced
herein, as in effect on the date of adoption of this amended and restated Basic Plan Document,
are attached hereto and made a part hereof. The Georgia legislature may amend the provisions
of the attached O.C.G.A. sections from time to time. Any such amendments by the Georgia
legislature are afforded no reliance by the currently issued IRS opinion letter.
GENERAL ADDENDUM TO THE
GEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM
DEFINED BENEFIT RETIREMENT PLAN
ADOPTION AGREEMENT
This is an Addendum to the Adoption Agreement completed by the City
of Milton, as follows (complete one or more sections, as applicable):
***Item (1) of Pre-Approved Addendum-Not Applicable***
(2) Discontinuance of participation in the Plan by one or more Departments
or classes of Employees (for amendment of Adoption Agreement
only -see Section 9 of Adoption Agreement):
(a) DB Plan Participation Closed to Employees Initially Employed or
Reemployed on or after July 1, 2014 -Any Employee who is initially
employed or reemployed by the City of Milton on or after July 1,
2014, will not participate in the DB Plan (this Plan) with respect to
such Employee's Service and Earnings on or after the date of such
initial employment or reemployment. Eligible Regular Employees
who are employed with the City as of June 30, 2014, will remain in
this Plan, subject to the eligibility requirements of this Plan, and
except as otherwise provided in subsections 2(b) and Section 14
below concerning the effect of becoming reemployed. An Employee
who is employed with the City as of June 30, 2014, but who does
not satisfy the eligibility requirements ( e.g., hour per week or
month per year requirement) to participate in this Plan as of such
date, and who, without terminating and becoming reemployed by
the City, meets the eligibility requirements to participate in this
Plan on or after July 1, 2014 shall become a Participant in this Plan
upon satisfying such eligibility requirements, subject to subsection
2(b) and Section 14 below concerning the effect of becoming
reemployed.
(b) Employed as of June 30, 2014; Effect of Termination &
Reemployment -If an Eligible Regular Employee who is employed
with the City as of June 30, 2014, Terminates employment and
becomes reemployed by the City on or after July 1, 2014, said
Employee will not be eligible to participate in this Plan with respect
to such Employee's Service and Earnings with the City on or after
City of Milton (2023 -2025 Restatement)
said reemployment date. In addition, said Eligible Regular
Employee's Vested status, the Eligible Regular Employee's
eligibility for Retirement and pre-retirement death benefits, and
the amount of any benefits payable to or on behalf of the Eligible
Regular Employee under this Plan, if any, with respect to the
Eligible Regular Employee's Service with the City prior to said
reemployment date will be determined based upon the Eligible
Regular Employee's Credited Service and Final Average Earnings
as of the date of Termination of employment preceding the date
said Employee is first reemployed by the City on or after July 1,
2014. Notwithstanding the prov1s1on above concerning
determination of Vested status, portability service with other
GMEBS Retirement Fund member employers will be taken into
account as provided under subsection 2( d) below. Service and
Earnings on or after said reemployment date will not be taken into
account for any purpose under this Plan ( e.g., for purposes of
becoming Vested under the DB Plan, meeting benefit eligibility
requirements, or computing the amount of benefits payable, if any,
under the DB Plan). See also Section 14 of this Addendum
regarding Frozen Plan Provisions.
(c) Former Employees Not Employed on June 30, 2014, Who Become
Reemployed or after July 1, 2014 -If a former Employee of the City
who is not employed with the City as of June 30, 2014, becomes
reemployed by the City on or after July 1, 2014, the Employee will
not be eligible to participate in this Plan with respect to said
Employee's Service and Earnings with the City on or after the date
on which such Employee is reemployed. The Employee's Vested
status, the Employee's eligibility for Retirement and pre-
retirement benefits, and the amount of any benefits payable under
this Plan, if any, with respect to the Employee's Service with the
City prior to said reemployment date will be determined in
accordance with the applicable terms of this Plan, if any, in effect
as of the date of the Employee's most recent Termination from the
City preceding the date on which such Employee is first
reemployed by the City on or after July 1, 2014, and the Employee's
Credited Service and Final Average Earnings with the City, if any,
as of said Termination date. Notwithstanding the provision above
concerning determination of Vested status, portability service will
be taken into account as provided under subsection 2(d) below.
-2 -
City of Milton (2023 -2025 Restatement)
Service and Earnings with the City on or after said reemployment
date will not be taken into account for any purpose under this Plan
( e.g., for purposes of becoming Vested, meeting benefit eligibility
requirements, or computing the amount of benefits payable under
this Plan). See also Section 14 of this Addendum regarding Frozen
Plan Provisions.
( d) GMEBS Portability Service -Credited Service under the defined
benefit retirement plans of other GMEBS Retirement Fund
member employers (portability service) will continue to be taken
into account under this Plan in accordance with the GMEBS Basic
Plan Document (solely for purposes of determining Vested status
and eligibility for retirement benefits under this Plan) with respect
to: (1) Eligible Regular Employees who are employed with the City
as of June 30, 2014; and (2) former Eligible Regular Employees of
the City not employed with the City as of June 30, 2014, who
previously participated in this Plan, provided they do not become
reemployed by the City on or after July 1, 2014. If an Employee or
former Employee described in this subsection 2(d)(l)-(2) becomes
reemployed with the City on or after July 1, 2014, then any
portability service on or after said reemployment date will not be
taken into account for any purpose under this Plan,
notwithstanding any provision of the Basic Plan Document to the
contrary.
***Items (3) through (13) of Pre-approved Addendum-Not Applicable***
(14) Frozen Plan Provisions (for amendment of Adoption Agreement only -
see Section 9 of Adoption Agreement regarding Classes of Eligible
Employees):
181 (a) Plan Freeze -The Plan is "frozen" effective as of July 1, 2014
(specify date). The Plan shall be subject to all provisions of
the Adoption Agreement and Basic Plan Document, except
as otherwise provided herein, and the Employer shall
continue to maintain the Plan's qualified status. The Plan
shall be frozen, as follows (check as applicable):
(i) The Plan shall be frozen with respect to the following
class(es) of Eligible Employees (one or more as
applicable): o all Participants; o all Eligible Regular
-3 -
City of Milton (2023 -2025 Re statement)
Employees; o Members of the Governing Authority;
o Municipal Legal Officers; 181 other (must specify):
Employees initially employed or reemployed on or
after July 1, 2014.
o (ii) Active Participants in the affected class(es) of Eligible
Employees as of the freeze effective date shall be vested
in their normal retirement benefits accrued as of the
effective date of the freeze to the extent funded
notwithstanding any provision of the Adoption
Agreement to the contrary.
(iii) Employees who are (check all that apply):
D employed by the Employer or in office as of
____ (specify date), 1:8] first employed on or after
July 1, 2014 (specify date), D first take office on or
after _____ (specify date), 1:8] reemployed on or
after July 1, 2014 (specify date), D return to office
(following a vacation of office) on or after ____ _
(specify date), shall not be eligible to participate in the
Plan on or after the date on which such Employee is
first employed or reemployed on or after July 1, 2014,
as applicable (specify date).
(iv) With respect to Employees designated in
paragraph (iii) above, Earnings on or after the date on
which such Employee is first employed or reemployed
on or after July 1, 2014, as applicable (specify date)
shall not be taken into account for purposes of the Plan.
(v) The Employees designated in paragraph (iii) above
shall not be credited with service for the Employer on
or after the date on which such Employee is first
employed or reemployed on or after July 1, 2014, as
applicable (specify date) for purposes of (check all that
apply): 181 computing the amount of benefits payable;
181 meeting m1mmum service requirements for
participation and vesting; 181 meeting minimum service
requirements for benefit eligibility under the Plan.
- 4 -
City of Milton (2023 -2025 Restatement)
(vi) The following additional provisions shall apply as a
result of the freeze (must specify): See General
Addendum Section 2 for additional provisions
concerning Plan freeze.
***Item (15) of Pre-approved Addendum-Not Applicable***
The terms of the foregoing Addendum to the Adoption Agreement are
approved by the Mayor and Council of the City of Milton, Georgia, this
l ~+b. day of N o Ve,MbeJ:: , 2024.
Attest: ~,_a ~
(SEAL)
Approved:
j ~1--------
city~
,GEORGIA
The terms of the foregoing Addendum are approved by the Board of
Trustees of the Georgia Municipal Employees Benefit System.
IN WITNESS WHEREOF, the Board of Trustees of the Georgia
Municipal Employees Benefit System has caused its Seal and the signatures of
its duly authorized officers to be affixed this ___ day of
------------' 20 __ •
(SEAL)
-5 -
City of Milton (2023 -2025 Restatement)
Board of Trustees
Georgia Municipal Employees
Benefit System
Secretary
19th
December 24
(vi) The following additional provisions shall apply as a
result of the freeze (must specify): See General
Addendum Section 2 for additional provisions
concernim:; Plan freeze.
***Item (15) of Pre-approved Addendum-Not Applicable ***
The terms of the foregoing Addendum to the Adoption Agreement are
approved by the Mayor and Council of the City of Milton, Georgia, this
l~f-~ dayof Nove.oobe-r: ,2024.
Attest: ~ ~
, GEORGIA
(SEAL)
Approved:
The terms of the foregoing Addendum are approved by the Board of
Trustees of the Georgia Municipal Employees Benefit System.
IN WITNESS WHEREOF, the Board of Trustees of the Georgia
Municipal Employees Benefit System has caused its Seal and the signatures of
its duly authorized officers to be affixed this 19th day of
December , 20 ~-
(SEAL)
-5 -
C it y of Milton (2023 -2025 Restatement)
Board of Trustees
Georgia Municipal Employees
Benefit System
J_~ ~
Secretary
SERVICE CREDIT PURCHASE
ADDENDUM TO THE
GEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM
DEFINED BENEFIT RETIREMENT PLAN
ADOPTION AGREEMENT
This is an Addendum to the Adoption Agreement completed by the City of
Milton. It modifies the Adoption Agreement to provide for service credit
purchases for eligible Participants in the Retirement Plan for the Employees
of City of Milton, in accordance with and subject to the following
requirements:
(1) Service Credit Purchase; Eligibility Requirements. Subject to any
conditions specified in Section 13.B. or 13.C. of the Adoption Agreement
and in this Service Credit Purchase Addendum, Participants in this
Plan who are actively employed on October 8, 2018, may purchase
credit under this Plan for Prior Military Service. If a Participant
purchases less than the full amount of Prior Military Service credit that
is eligible for purchase, said Participant must purchase such Prior
Military Service credit in full-year (12 month) increments. A
Participant does not need to be vested in the Plan to purchase such
credit. The purchase of prior service credit is permitted but not
required under this Plan. Such purchases will be allowed to the extent
permitted by law, subject to any conditions, proofs, or acceptance that
the Pension Committee Secretary or GMEBS deem appropriate.
(2) Use of Purchased Service Credit. Subject to any conditions or
limitations provided in this Addendum, service credit purchased
hereunder will be counted as Credited Service for purposes of ( check all
that apply):
181 computing the amount of benefits payable under the Plan;
□ meeting the minimum service requirements for vesting under the
Plan;
□ meeting the minimum service requirements for benefit eligibility
under the Plan.
(3) Application to Purchase Service Credit. A Participant who meets the
eligibility requirements specified in paragraph (1) above and who
City of Milton (2023 -2025 Re statement)
wishes to purchase eligible service credit as described in paragraph (1)
above may apply for such purchase by completing and submitting to the
Pension Committee Secretary an application form provided for that
purpose. Participants will be responsible for providing the Pension
Committee Secretary with any information or documentation that the
Pension Committee Secretary deems necessary to establish that the
Participant's service is eligible for purchase under paragraph (1) above.
( 4) Window Period for Application. In order to purchase service credit,
eligible Participants may submit the service credit purchase application
beginning October 8, 2018, and ending December 7, 2018. If a
Participant does not submit a completed application to purchase service
credit within the designated window period, the Participant will not be
permitted to purchase service credit. As a precondition for approval of
the Participant's application, the Participant will be responsible for
providing the Pension Committee Secretary with any additional
information or documentation that the Pension Committee Secretary
deems necessary to establish that the Participant's service is eligible for
purchase under paragraph (1) above. Notwithstanding any provision
herein to the contrary, no Participant may apply for or purchase prior
service credit after termination of employment.
(5) Review by Pension Committee Secretary. Within a reasonable period of
time after the end of the application period, the Pension Committee
Secretary will review the Participant's application to purchase service
credit and will determine whether the application should be accepted.
Upon approval of an application by the Pension Committee Secretary,
the Pension Committee Secretary will certify on the application the
number of years and months of prior service that are eligible for
purchase under paragraph (1) above.
(6) Fee for Cost Study. As a precondition for approval of the application to
purchase service credit, and prior to the commencement of any cost
study, Participants may be required by the Employer to pay all or a
portion of the GMEBS actuarial cost study fee(s) associated with
determining the cost to purchase the Participant's eligible service credit.
Any portion of the fee that the Participant is not required to pay will be
paid by the Employer.
(7) Actuarial Study to Determine Cost of Purchase. In the event that a cost
study has not been undertaken prior to the Participant's submission of a
completed application to purchase service credit, if the Participant's
-2 -
City of Milton (2023 -2025 Restatement)
application to purchase is approved by the Pension Committee
Secretary, a cost study will be undertaken as soon as reasonably
practicable after the application has been approved, in order to
determine the actuarial cost relating to the Participant's prior service
that is eligible for purchase.
(8) Lump Sum Payment Required Within 120 Days. Upon completion of
the cost study, the Pension Committee Secretary will notify the
Participant of the lump sum amount required to purchase prior service
credit, as reflected in the cost study. Within 120 of receiving this notice
or of receiving notice of the Pension Committee's approval of the
Participant's application to purchase service credit, whichever is later,
the Participant shall remit said lump sum amount in the form and
manner required by paragraphs (9)-(11) below, the Pension Committee
Secretary, and GMEBS. The Participant may remit less than the full
lump amount necessary to purchase all of the prior service credit which
is eligible for purchase, in which case the percentage of service credit
awarded will be equal to the percentage of the full amount remitted.
The Pension Committee Secretary shall have the authority to extend the
120-day time period for payment of lump sum amounts required to
purchase service credit if, for reasons outside the control of the
Participant, payment cannot be made within the 120-day period.
However, the time limit for payment will not be extended any later than
120 days and in no event may a Participant make such payment after
termination of employment.
(9) Method of Payment. To the extent permitted by the Internal Revenue
Code and regulations issued thereunder, the lump sum amount referred
to in paragraph (8) above may be paid via one or more of the following
sources: (1) a direct trustee-to-trustee transfer from a 401(a) qualified
retirement plan, a governmental 457(b) deferred compensation plan or
a 403(b) tax sheltered annuity; (2) a qualified rollover from a
governmental 457(b) plan, 403(b) tax-sheltered annuity plan, 401(a)
qualified plan, 403(a) annuity plan, or a 408(a) or 408(b) individual
retirement account or annuity (traditional IRA); or (3) a lump sum
contribution of after-tax funds. Participants shall be solely responsible
for effecting the payment referred to herein. Participants will not be
permitted to purchase credit via payroll deduction.
(10) Limitation on Amount of Lump Sum Payment. If the lump sum amount
referred to in paragraph (8) is paid via any method other than as
-3 -
City of Milton (2023 -2025 Restatement)
described under paragraph (9)(1) or (9)(2) above, then the Participant
shall not be permitted to contribute to the Plan in any calendar year an
amount which exceeds any applicable limit specified in Internal
Revenue Code Section 415.
(11) IRC 415, Other Limitations. Notwithstanding any other provision of the
Adoption Agreement or this Addendum to the contrary, the Plan will
not accept and shall return without interest any contribution or portion
of a contribution made to purchase service credit if such contribution
would result in a violation of the applicable limitations established
under Internal Revenue Code Section 415(b), (c), or (n) or any other
provision of law or the Plan, or if it is later determined that the
Participant's prior service is not eligible for purchase, and any prior
service credit attributable to said contribution or portion of a
contribution will be forfeited.
(12) Return of Contributions. Contributions made to purchase prior service
credit shall be used to fund retirement and death benefits payable under
the Plan relating to such credit. Contributions shall not otherwise be
refundable to the Participant or any other person, except as otherwise
provided in this paragraph (12) or in Section 13.06 or 18.04 of the Basic
Plan Document (concerning failure to exhaust or termination of the
Plan, respectively). Participants ( check one):
o will not be permitted to withdraw contributions made to purchase
prior service credit upon termination of employment
(Participants must be vested to purchase prior service credit).
o will not be permitted to withdraw contributions made to purchase
prior service credit upon termination of employment, unless they
are not vested upon termination (Participants are not required to
be vested to purchase prior service credit).
will be permitted to withdraw contributions made to purchase
service credit upon termination of employment, subject to the
provisions of Section 13.03(c) of the Basic Plan Document
concerning the effect of withdrawal. For purposes of determining
the amount of any refund of contributions made to purchase
service credit, said contributions shall be credited with interest as
defined in Section 2.39 of the Basic Plan Document, subject to any
limitations on the crediting of interest in Section 13.03(c) of the
Basic Plan Document.
-4 -
City of Milton (2023 -2025 Restatement)
□ will be permitted to withdraw contributions made to purchase
service credit upon termination of employment, subject to the
following conditions for repayment (must describe): ____ _
Note: Partial withdrawal of employee contributions is not permitted. If
the Participant withdraws contributions made to purchase service
credit, the Participant will forfeit any and all service credit and/or
benefits attributable to such purchase for all purposes.
(13) Repayment Upon Reemployment. If the Participant returns to
employment with the Employer after having withdrawn contributions
made to purchase prior service credit, the Participant (check one):
□ not applicable (withdrawal not permitted).
181 will not be permitted to re-purchase said service credit upon
reemployment.
□ will be permitted to re-purchase said service credit upon
reemployment, based on the actuarial cost of such service
credit, taking into account the additional actuarial cost of
any benefit enhancements adopted prior to reemployment
pursuant to paragraph (14) below, provided that the
Participant makes application for such re-purchase within
[insert time limit] after reemployment and provided the
Participant effects payment for such re-purchase in
accordance with and subject to the provisions of this
Addendum within [insert time limit] after the application is
approved.
□ will be permitted to re-purchase said service credit upon
reemployment, subject to the following conditions for
repayment (must describe other repayment method):
(14) Definition of Actuarial Cost. The cost to purchase qualifying prior
service credit shall be determined based upon the actuarial cost of said
prior service credit. In applying the provisions of the Adoption
Agreement and this Service Credit Purchase Addendum, the term
"actuarial cost of prior service credit" means:
181 the actuarial accrued liability relating to such prior service as
determined by the GMEBS actuary and calculated using the
-5 -
City of Milton (2023 -2025 Restatement)
actuarial assumptions and methods established for this purpose in
the funding policy adopted by the GMEBS Board of Trustees.
□ Other (must specify other method of determining actuarial cost
for this purpose): ________________ _
The terms of the foregoing Service Credit Purchase Addendum to the
Adoption Agreement are approved by the Mayor and Council of the City of
Milton, Georgia this I ~-f.b day of Nollembe..r , 20 .2:i_.
Approved:
~ City Aorne
The terms of the foregoing Service Credit Purchase Addendum are
approved by the Board of Trustees of the Georgia Municipal Employees
Benefit System.
IN WITNESS WHEREOF, the Board of Trustees of the Georgia
Municipal Employees Benefit System has caused its Seal and the signatures of
its duly authorized officers to be affixed this ___ day of
___________ ,20 __ .
(SEAL)
-6 -
City of Milton (2023 -2025 Restatement)
Board of Trustees
Georgia Municipal Employees
Benefit System
Secretary
19th
December 24
actuarial assumptions and methods established for this purpose in
the funding policy adopted by the GMEBS Board of Trustees.
o Other (must specify other method of determining actuarial cost
for this purpose): ________________ _
The terms of the foregoing Service Credit Purchase Addendum to the
Adoption Agreement are :C pproved by the Mayor and Council of the City of
Milton, Georgia this I i-f: day of Nove.mb~r , 201:i._.
~
"'--c_~ •
(SEAL)
The terms of the foregoing Service Credit Purchase Addendum are
approved by the Board of Trustees of the Georgia Municipal Employees
Benefit System.
IN WITNESS WHEREOF, the Board of Trustees of the Georgia
Municipal Employees Benefit System has caused its Seal and the signatures of
its duly authorized officers to be affixed this 19th day of
December , 20 ~-
(SEAL)
-6 -
City of Milton (2023 -2025 Re statement)
Board of Trustees
Georgia Municipal Employees
Benefit System
1~
Secretary
GEORGIA MUNICIPAL EMPLOYEES
BENEFIT SYSTEM
DEFINED BENEFIT RETIREMENT PLAN
AN ORDINANCE
and
ADOPTION AGREEMENT
for
City of Milton
Form Pre-approved Plan Adoption Agreement
Amended and Restated for Third Six-Year Cy cle, 2020 Cumulative List
City of Milton (2023 -2025 Restatement)
•
TABLE OF CONTENTS
PAGE
I. AN ORDINANCE ....................................................................................................................... l
II. GMEBS DEFINED BENEFIT RETIREMENT PLAN
ADOPTION AGREEMENT ............................................................................................... 2
1. ADMINISTRATOR ................................................................................................ 2
2. ADOPTING EMPLOYER ....................................................................................... 2
3. GOVERNING AUTHORITY ................................................................................. 2
4. PLAN REPRESENT A TIVE .................................................................................... 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 ....................................................................... 11
D. Leave Conversion for Unused Paid Time Off (e .g ., Sick,
Vacation , or Personal Leave) ..................................................................... 12
14. RETIREMENT ELIGIBILITY .............................................................................. 14
A. Early Retirement Qualifications ................................................................ 14
B. Normal Retirement Qualifications ............................................................. 14
C. Alternative Normal Retirement Qualifications .......................................... 16
D. Disability Benefit Qualifications ............................................................... 20
15. RETIREMENT BENEFIT COMPUTA TION ....................................................... 21
A. Maximum Total Credited Service .............................................................. 21
B. Monthl y Normal Retirement Benefit Amount.. ......................................... 21
C. Monthl y Early Retirement Benefit Amount .............................................. 24
D. Monthl y Late Retirement Benefit Amount (check one): ........................... 26
E. Monthl y Disability Benefit Amount .......................................................... 26
F. Minimum/Maximum Benefit For E lected Officials .................................. 27
16. SUSPENSION OF BENEFITS FOLLOWING BONA FIDE
SEPARATION OF SERVICE; COLA .................................................................. 27
-I-
City of Milton (2023 -2025 Restatement)
A. Re-Employment as Eligible Employee After Normal,
Alternative Normal, or Early Retirement and Following
Bona Fide Separation of Service (see Basic Plan Document
Section 6.06(c) Regarding Re-Employment as an Ineligible
Employee and Basic Plan Document Section 6.06(e) and (f)
Regarding Re-Employment After Disability Retirement) ......................... 27
B . Cost Of Living Adjustment.. ...................................................................... 29
17. TERMINATION OF EMPLOYMENT BEFORE RETIREMENT;
VESTING .............................................................................................................. 29
A. Eligible Regular Employees ...................................................................... 29
B. Elected or Appointed Members of the Governing Authority .................... 30
18. PRE-RETIREMENT DEA TH BENEFITS ........................................................... 31
A. In-Service Death Benefit. ........................................................................... 31
B. Terminated Vested Death Benefit .............................................................. 32
19. EMPLOYEE CONTRIBUTIONS ......................................................................... 33
20. MODIFICATION OF THE TERMS OF THE ADOPTION
AGREEMENT ....................................................................................................... 34
21. TERMINATION OF THE ADOPTION AGREEMENT ...................................... 35
22. EMPLOYER ADOPTION AND AUTHORIZATION FOR
AMENDMENTS ................................................................................................... 35
-II-
City of Milton (2023 -2025 Restatement)
ST ATE OF GEORGIA
COUNTY OF FULTON
I. AN ORDINANCE
ORDINANCE NO. 24-11-569
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) Basic 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) Basic Plan Document, and the GMEBS Trust
Agreement.
Ordinance continued on page 38
City of Milton (2023 -2025 Restatement)
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: 2006 Heritage Walk, Milton, GA 30004
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 Basic Plan Document)
Name: Director of Human Resources
Address: 2006 Heritage Walk, Milton, GA 30004
Phone:(678)242-2500
Facsimile: (678) 242-2499
- 2 -
City of Milton (2023 -2025 Restatement)
5. PENSION COMMITTEE
[Please designate members by position. If not, members of Pension Committee shall be
determined in accordance with Article XIV of the Basic Plan Document]
Position:
Position:
Position:
Position:
Position:
Pension Committee Secretary: Director of Human Resources
Address: 2006 Heritage Walk, Milton, GA 30004
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 p lan.
□ 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 the PATH Act, and other applicable federal
laws and guidance under IRS Notice 2020-14 (the 2020 Cumulative List).
□ To make the following amendments to the Adoption Agreement (must specify
below revisions made in this Adoption Agreement; all provisions must be
completed in a manner that satisfies the definite written program
requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): ___ _
7. EFFECTIVE DATE
NOTE: This Adoption Agreement and any Addendum , with the accompanying Basic Plan
Document, is designed to comply with Internal Revenue Code Section 401(a), as applicable to a
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 Protecting
Americans from Tax Hikes Act of 2015 ("PA TH Act"); 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 2020-14 (the 2020 Cumulative List) are
effective as of the applicable effective dates set forth in the Adoption Agreement and Basic Plan
-3 -
City of Milton (2023 -2025 Restatement)
Document. By adopting this Adoption Agreement, with its accompanying Basic Plan Document,
the Adopting Employer is adopting a plan document intended to comply with Internal Revenue
Code Section 401 (a), as updated by the PA TH Act and the 2020 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 but not earlier than the first day of
the current Plan Year in which the Plan is adopted).
(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 Basic Plan Document or in this Adoption
Agreement, the effective date of this restatement shall be __ (insert effective date of
this Adoption Agreement but not earlier than the first day of the current Plan Year in
which the Plan is adopted (unless a retroactive corrective amendment is permitted
under EPCRS, Rev. Proc. 2021-30 (or subsequent updated guidance)). 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 Basic Plan Document or in this Adoption
Agreement, the effective date of this restatement s hall be the date of its approval by the
Governing Authority (insert effective date of this Adoption Agreement but not earlier
than the first day of the current Plan Year in which the Plan is adopted (unless a
retroactive corrective amendment is permitted under EPCRS, Rev. Proc. 2021-30 (or
subsequent updated guidance)).
This Plan is adopted as an amendment and restatement of the Employer's preexisting
GMEBS Adoption Agreement, which became effective on October 8, 2018 (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).)
- 4 -
City of Milton (2023 -2025 Restatement)
8. PLAN YEAR
Plan Year means (check one):
□ Calendar Year
□ Employer Fiscal Year commencing __________________ _
[gl Other (must specify month and day commencing): January 1.
9. CLASSES OF ELIGIBLE EMPLOYEES
Only Employees of the Adopting Employer who meet the Basic Plan Document'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 Regular 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 Basic Plan Document 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 mm1mum hour and other
requirements specified under "Eligibility Conditions" below.
[gl ALL REGULAR EMPLOYEES EXCEPT for the following employees (must specify;
specific positions are permissible; specific individuals may not be named): ill
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 Basic Plan Document'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):
[gl ARE NOT eligible to participate in the Plan .
□ ARE eligible to participate in the Plan .
- 5 -
City of Milton (2023 -2025 Restatement)
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):
1:8:1 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 -specific positions are permissible; specific
individuals may not be named): ____________________ _
Please specify any limitations on eligibility to participate here (e.g., service on or after certain
date) (must specify in a manner that satisfies the definite written program requirement of
Treasury Regulation 1.401-l(a)(2) and the definitely determinable requirement of Treasury
Regulation 1.401-l(b)(l)(i)): __________________ _
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)
1:8:1 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 -specific positions
are permissible; specific individuals may not be named): ____________ _
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
- 6 -
City of Milton (2023 -2025 Restatement)
"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
181 At least.§. months per year (regularly scheduled)
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 -specific positions are
permissible; specific individuals may not be named): _____________ _
The months to year requirement for excepted class( es) are:
□
□
No minimum
At least ___ months per year (regularly scheduled)
11. WAITING PERIOD
Except as otherwise provided in Section 4.02(b) of the Basic Plan Document, 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 Basic Plan Document. 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, the Employee must make a written election to participate within
120 days after employment, election or appointment to office, or if later , the date the Employee
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):
181 None (Participation is mandatory for all Eligible Employees except as provided in
Section 4.03(e) of the Basic Plan Document).
□ Participation is optional for the following Eligible Employees (must specify -
specific positions are permissible; specific individuals may not be named; all
positions or classes specified must be Eligible Employees): _______ _
- 7 -
City of Milton (2023 -2025 Restatement)
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):
0 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 in a manner that satisfies the definite written program
requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): __ _
□ 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 returns to Service with the Adopting Employer sometime after the Effective Date, said
Eligible Employee's Service prior to becoming 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 returning 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.
-8 -
City of Milton (2023 -2025 Restatement)
□ 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 in a manner that
satisfies the definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)):
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
in this Plan and such Employee's service with the City prior to April 1, 2007, will not be
taken into account under this Plan for any purposes.
(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 , said Employee's Credited Past Service shall include only the number of years and
complete months of Service from the Employee's initial employment date to the date the
Employee 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 Basic Plan Document 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 Basic Plan Document. 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 13.C. -Prior Governmental Service).
Prior Military Service shall be counted as Credited Service for the following
purposes (check one or more as applicable):
[81 Computing amount of benefits payable.
- 9 -
City of Milton (2023 -2025 Restatement)
□ Meeting minimum service requirements for vesting.
□ 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
number) of Credited Service with the Adopting Employer.
month(s) (insert
□ 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 in a manner that satisfies the definite written
program requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): Credit
will be awarded upon payment of prior Military Service credit, in
accordance with and subject to the requirements of this Section and the
Service Credit Purchase Addendum.
(4) Payment for Prior Military Service Credit (check one):
□ Participants shall not be required to pay for military service credit.
181 Participants shall be required to pay for military service credit as follows:
181 The Participant must pay 100% of the actuarial cost of the service credit
(as defined below).
□ The Participant must pay an amount equal to (must specify in a manner
that satisfies the definite written program requirement of Treasury
Regulation 1.401-l(a)(2) and the definitely determinable requirement
of Treasury Regulation 1.401-l(b)(l)(i)): _________ _
Other Conditions for Award of Prior Military Service Credit (must specify in a manner that
satisfies the definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): The
Participant must submit to the Pension Committee Secretary a copy of the Participant's
DD-214 (military separation papers), reflecting the Participant's prior Military Service,
and any other documentation that the Pension Committee Secretary deems necessary to
confirm the Participant's eligibility to purchase prior Military Service credit.
-IO -
City of Milton (2023 -2025 Restatement)
(5) Limitations on Service Credit Purchases. Unless otherwise specified in an
Addendum to the Adoption Agreement, for purposes of this Section and Section 13.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 Basic
Plan Document, 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 Basic Plan Document.
(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):
l8I Prior governmental service is not creditable under the Plan (if checked, skip to
Section 13.D. -Unused Sick/Vacation 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 in a manner that satisfies
the definite written program requirement of Treasury Regulation 1.401-l(a)(2) and the
definitely determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): ___ _
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.
-11 -
City of Milton (2023 -2025 Restatement)
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.
□ Other requirement (must specify in a manner that satisfies the definite written
program requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): __ _
(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 in a manner
that satisfies the definite written program requirement of Treasury
Regulation 1.401-l(a)(2) and the definitely determinable requirement
of Treasury Regulation 1.401-l(b)(l)(i)): _________ ___
Other Conditions for Award of Prior Governmental Service Credit (must specify in a manner
that satisfies the definite written program requirement of Treasury Regulation 1.401-
l(a)(2) and the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): _____________________ _
D. Leave Conversion for Unused Paid Time Off {e.g., Sick, Vacation, or Personal
Leave)
(1) Credit for Unused Paid Time Off.
Subject to the limitations in Section 3 .01 of the Basic Plan Document, 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.
-12 -
City of Milton (2023 -2025 Restatement)
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):
181 Unused sick leave
181 Unused vacation leave
□ Unused personal leave
□ Other paid time off (must specify in a manner that satisfies the definite
written program requirement of Treasury Regulation 1.401-l(a)(2) and
the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): ________________ _
(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):
181 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).
D Other (must specify in a manner that satisfies the definite written program
requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): __ _
(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):
181 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 12 months (insert number).
-13 -
City of Milton (2023 -2025 Restatement)
(5) Computation of Unused Paid Time Off.
Unless otherwise spec ified 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
Basic Plan Document; must specify in a manner that satisfies the definite written program
requirement of Treasury Regulation 1.401-l(a)(2) and the definitely determinable
requirement of Treasury Regulation 1.401-l(b)(l)(i)): ____________ _
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
Exceptions: If different early retirement eligibility requirements apply to a particular class or
classes of Eligible Employees, the E mployer must spec ify 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 -specific positions are
permissible; specific individuals may not be named): _____________ _
Early retirement qualifications for excepted class(es) are (check one or more as applicable):
B.
D
D
Attainment of age ____ (insert number)
Completion of ____ years (insert number) of Total Credited Service
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~ 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 serv ice without
first incurring a Bona Fide Separation from Service), if Participant meets
-14 -
City of Milton (2023 -2025 Restatement)
minimum age and service requirements specified immediately above and satisfies
the minimum age parameters for In-Service Distribution described in Section
6.06(a)(3) of the Basic Plan Document, 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 -specific positions are permissible; specific individuals may not be
named): __________________________ _
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 -specific positions
are permissible; specific individuals may not be named): 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 July 1, 2014, are not eligible to participate in the Plan -see Section
9 above and Sections 2 and 14 of General Addendum).
Normal retirement qualifications for excepted class(es) are (check one or more as applicable):
~ Attainment of age 65 (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 satisfies
the minimum age parameters for In-Service Distribution described in Section
6.06(a)(3) of the Basic Plan Document, 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 -specific positions are permissible; specific individuals may not be
named): ---------------------------
(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
-15 -
City of Milton (2023 -2025 Restatement)
first incurring a Bona Fide Separation from Service), if Participant meets
minimum age and service requirements specified immediately above and satisfies
the minimum age parameters for In-Service Distribution described in Section
6.06(a)(3) of the Basic Plan Document, 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 -specific positions are permissible; specific individuals may not be
named): __________________________ _
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 -specific positions are permissible; specific
individuals may not be named): ______________________ _
Normal retirement qualifications for excepted elected or appointed members of the Governing
Authority or Municipal Legal Officers are (check one or more as applicable):
D
D
Attainment of age ____ (insert number)
Completion of ____ years (insert number) of Total Credited Service
D 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 satisfies
the minimum age parameters for In-Service Distribution described in Section
6.06(a)(3) of the Basic Plan Document, 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 -specific positions are permissible; specific individuals may not be
named): ---------------------------
C. Alternative Normal Retirement Qualifications
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) [81 Not applicable (the Adopting Employer does not offer alternative normal
retirement benefits under the Plan).
-16 -
City of Milton (2023 -2025 Restatement)
(2) D
(3) D
Alternative Minimum Age & Service Qualifications (if checked, please
complete one or more items below, as applicable):
D
D
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 satisfies the minimum age parameters for In-Service
Distribution described in Section 6.06(a)(3) of the Basic Plan Document,
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 D
only the following class(es) of Participants (must specify -specific
positions are permissible; specific individuals may not be named): _.
This alternative normal retirement benefit is available to:
□ All Participants who qualify.
□ Only the following Participants (must specify -specific positions are
permissible; specific individuals may not be named): ______ _
A Participant (check one): □ is required □ is not required to be in the service of
the Employer at the time the Participant satisfies the above qualifications in order
to qualify for this alternative normal retirement benefit.
Other eligibility requirement (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): ________________ _
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):
D Must have attained at least age ___ (insert number)
D 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
-17 -
City of Milton (2023 -2025 Restatement)
(4) □
Participant meets the minimum age and service requirements specified
immediately above and satisfies the minimum age parameters for In-
Service Distribution described in Section 6.06(a)(3) of the Basic Plan
Document, 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 -
specific positions are permissible; specific individuals may not be
named): _____________________ _
This alternative normal retirement benefit is available to:
□ All Participants who qualify.
□ Only the following Participants (must specify -specific positions are
permissible; specific individuals may not be named): ______ _
A Participant (check one): □ is required □ is not required to be in the service of
the Employer at the time the Participant satisfies the Rule in order to qualify for
this alternative normal retirement benefit.
Other eligibility requirement (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): _________________ _
Alternative Minimum Service. A Participant is eligible for an alternative normal
retirement benefit if the Participant has at least ____ years (insert number)
of Total Credited Service, regardless of the Participant's age.
□ 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 satisfies the minimum age parameters for In-Service
Distribution described in Section 6.06(a)(3) of the Basic Plan Document,
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 -specific
positions are permissible; specific individuals may not be named): _.
This alternative normal retirement benefit is available to:
□ All Participants who qualify.
□ Only the following Participants (must specify -specific positions are
permissible; specific individuals may not be named): ______ _
-18 -
City of Milton (2023 -2025 Restatement)
(5) D
(6) D
A Participant (check one): □ is required □ is not required to be in the service of
the Employer at the time the Participant satisfies the qualifications for this
alternative normal retirement benefit.
Other eligibility requirement (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): _________________ _
Other Alternative Normal Retirement Benefit.
Must specify qualifications (in a manner that satisfies the definite written
program requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): __ _
□ 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 satisfies the minimum age parameters for In-
Service Distribution described in Section 6.06(a)(3) of the Basic Plan
Document, 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 □ onl y the following class(es) of Participants (must specify -
specific positions are permissible; specific individuals may not be
named): _______________________ _
This alternative normal retirement benefit is available to:
D All Participants who qualify.
□ Only the following Participants (must specify -specific positions are
permissible; specific individuals may not be named): ______ _
A Participant (check one): □ is required □ is not required to be in the service of
the Employer at the time the Participant satisfies the qualifications for this
alternative normal retirement benefit.
Other eligibility requirement (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): _________________ _
Other Alternative Normal Retirement Benefit for Public Safety Employees
Only.
-19 -
City of Milton (2023 -2025 Restatement)
D.
Must specify qualifications (in a manner that satisfies the definite written
program requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): __ _
□ 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 satisfies the
minimum age parameters for In-Service Distribution Described in Section
6 .06(a)(3) of the Basic Plan Document, 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 -specific positions are
permissible; specific individuals may not be named): _____ _
This alternative normal retirement benefit is available to :
□ All public safety employee Participants who qualify.
□ Only the following public safety employee Participants (must specify -
specific positions are permissible; specific individuals may not be
named): _______________________ _
A public safety employee Participant (check one): □ is required □ is not
required to be in the service of the Employer at the time the Participant satisfies
the qualifications for this alternative normal retirement benefit.
Other eligibility requirement (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): _________________ _
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.
Disability Benefit Qualifications
Subject to the other terms and conditions of the Basic Plan Document 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 Basic Plan Document. The Disability Retirement benefit shall commence as
of the Participant's Disability Retirement Date under Section 2 .24 of the Basic Plan Document.
To qualify for a disability benefit, a Participant must have the following minimum number of
years of Total Credited Service (check one):
-20 -
City of Milton (2023 -2025 Restatement)
□ Not applicable (the Adopting Em plo yer does not offer disability retirement
benefits under the Plan).
[8J No minimum.
□ ___ years (insert number) of Total Credited Service.
Other eligibility requirement (must specify in a manner that satisfies the definite written
program requirement of Treasury Regulation 1.401-l(a)(2) and the definitely determinable
requirement of Treasury Regulation 1.401-l(b)(l)(i)): ___________ _
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):
[8J 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 E ligible 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 in a manner that satisfies the definite written program
requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): ___ _
B. Monthly Normal Retirement Benefit Amount
(1) Regular Employee Formula
The monthly normal retirement benefit for Eligible Re g ular Employees shall be 1/12 of (check
and complete one or more as applicable):
[8J (a) Flat Percentage Formula. 2.75% (insert percentage) of Final Average
Earnings multiplied by years of Total Credited Service as an Eligible
Regular E mplo yee.
This formula applies to:
r:8l All Participants who are Regular Employees.
-21 -
City of Milton (2023 -2025 Restatement)
□ (b)
□ (c)
□ (d)
□ Only the following Participants (must specify -specific positions
are permissible; specific individuals may not be named):
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 -specific positions are permissible; specific
individuals may not be named): _____________ _
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 -specific positions
are permissible; specific individuals may not be named): __ _
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 -specific positions
are permissible; specific individuals may not be named): __ .
[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 Basic
Plan Document. This definition of Covered Compensation shall apply to
(check one):
□ All Participants who are Regular Employees .
□ Only the following Participants (must specify -specific positions
are permissible; specific individuals may not be named): ____ _
-22 -
City of Milton (2023 -2025 Restatement)
□ (b)
□ (c)
□ (d)
Dynamic Break Point Covered Compensation as defined in Section 2.19
of the Basic Plan Document. This definition of Covered Compensation
shall apply to (check one):
□ All Participants who are Regular Employees.
□ Only the following Participants (must specify -specific positions
are permissible; specific individuals may not be named): __ ~
Table Break Point Covered Compensation as defined in Section 2.20 of
the Basic Plan Document. 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 -
specific positions are permissible; specific individuals may not
be named): __________________ _
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 -specific positions
are permissible; specific individuals may not be named): __ _
(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:
181 All Participants who are Regular Employees.
□ Only the following Participants (must specify -specific positions are permissible;
specific individuals may not be named): _______________ _
[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):
181 Not applicable (elected or appointed members of the Governing Authority or Municipal
Legal Officers are not permitted to participate in the Plan).
- 23 -
City of Milton (2023 -2025 Restatement)
□ $ ____ (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 (service of at least 6 months and 1 day is treated as a year of Total Credited
Service; provided , however, than an elected or appointed member of the Governing
Authority or Municipal Legal Officer may accrue a maximum of one year of Total
Credited Service for every 12-month period of Service as an elected or appointed
member of the Governing Authority or Municipal Legal Officer).
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 -specific positions are
permissible; specific individuals may not be named): ___________ _
[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:
181 (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 Basic
Plan Document to account for early commencement of benefits. This
provision shall apply to:
□ All Participants.
181 Only the following Participants (must specify -specific positions
are permissible; specific individuals may not be named):
Participants who terminated prior to July 1, 2014, who were
not reemployed prior to such date.
(2) Alternative Early Retirement Reduction Table. The monthly Early
Retirement benefit shall be computed in the same manner as the monthl y
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.
181 Only the following Participants (must specify -specific positions
are permissible; specific individuals may not be named):
Participants who were employed with the City on June 30,
2014, and who terminated employment prior to April 10, 2017.
-24 -
City of Milton (2023 -2025 Restatement)
Alternative Early Retirement Reduction Table
Number of Years Before
Age65
(check as applicable)
181 0
181 1
181 2
181 3
181 4
181 5
181 6
181 7
181 8
181 9
181 10
□ 11
D 12
□ 13
D 14
D 15
*Interpolate for whole months
Percentage of
Normal Retirement Benefit*
(complete as applicable)
1.000
0.97
0.94
0.91
0.88
0.85
0.82
0.79
0.76
0.73
0.70
0.
0.
0.
0.
0.
(3) 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.
181 Only the following Participants (must specify -specific positions
are permissible; specific individuals may not be named):
Participants who were employed with the City on June 30,
2014 and remain employed with the City (with no break in
Service) as of April 10, 2017.
Alternative Early Retirement Reduction Table
Number of Years Before
Age65
(check as applicable)
181 0
181 1
181 2
181 3
Percentage of
Normal Retirement Benefit*
(complete as applicable)
1.000
0.98
0.96
0.94
• 25 -
City of Milton (2023 -2025 Restatement)
D.
E.
~ 4 0.92
~ 5 0.90
~ 6 0.88
~ 7 0.86
~ 8 0.84
~ 9 0 .82
~ 10 0.80
□ 11 0.
□ 12 0 .
□ 13 0.
□ 14 0.
□ 15 0.
*Interpolate for whole months
Monthly Late Retirement Benefit Amount {check one}:
(I)
□ (2)
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 the Participant's Late Retirement Date.
The monthly Late Retirement benefit shall be the greater of: (1) the
monthl y 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 Basic P lan Document; or (2) the
monthl y retirement benefit accrued as of the Participant's Late Retirement
Date, without further actuarial adjustment under Section 12.06 of the
Basic Plan Document.
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 the Participant's
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):
□ Not applicable (the Adopting Employ er does not offer disability retirement
benefits under the Plan).
□ No minimum is established.
~ No less than (check one): ~ 20 % □ 10 % O __ % (if other than 20% or 10%
insert percentage amount) of the Participant's average monthly E arnings for the
12 calendar month period (excluding any period of unpaid leave of absence)
immediately preceding the Participant's Termination of Employment as a result of
a Disability . (Unless otherwise specified in an Addendum to the Adoption
-26 -
City of Milton (2023 -2025 Restatement)
Agreement, no mm1mum 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 the Participant's 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.)
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):
G.
181 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 in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2)
and the definitely determinable requirement of Treasury Regulation 1.401-
l(b)(l)(i)): __________________ _
Multiple Plans
In the event that the Employer maintains multiple plans , the following provisions will apply to
the extent necessary to satisfy Code § 415.
A.
16. SUSPENSION OF BENEFITS FOLLOWING BONA FIDE
SEPARATION OF SERVICE; COLA
Re-Employment as Eligible Employee After Normal, Alternative Normal, or Early
Retirement and Following Bona Fide Separation of Service (see Basic Plan
Document Section 6.06(c) Regarding Re-Employment as an Ineligible Employee and
Basic Plan Document Section 6.06(e) and m Regarding Re-Employment After
Disability Retirement)
-27 -
City of Milton (2023 -2025 Restatement)
(1) Reemployment After Normal or Alternative Normal Retirement. In the event
that a Retired Participant 1) is reemployed with the E mployer as an Eligible E mployee (as
defined in the Plan) after the Participant's Normal or Alternative Normal Retirement Date and
after a Bona Fide Separation from Service, or 2) is reemployed with the Employer in an
Ineligible Em plo yee class, and subsequentl y again becomes an Eligible Employee (as defined in
the Plan) due to the addition of such class to the Plan after the Participant's Normal or
Alternative Normal Retirement Date, the following rule shall apply (check one):
(a)
□ (b)
The Participant's benefit shall be suspended in accordance with
Section 6.06(a)(l) of the Basic Plan Document for as long as the
Participant remains employed.
The Participant may continue to receive retirement benefits in
accordance with Section 6.06(b) of the Basic Plan Document. This
rule shall apply to (check one): □ all Retired Participants □ only
the following classes of Retired Participants (must specify
(specific positions are permissible; specific individuals may not
be named) -benefits of those Retired Participants not listed
shall be suspended in accordance with Section 6.06(a) of the
Basic Plan Document 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 the Participant's 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 the Participant's 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) 1:81 The Participant's Early Retirement benefit shall be suspended in
accordance with Section 6.06(a)(l) of the Basic Plan Document for as
long as the Participant remains employed.
This rule shall apply to {check one): 1:81 all Retired Participants ; □ only
the following classe s of Retired Participants (must specify -specific
positions are permissible; specific individuals may not be named):
(b) □ The Participant's Early Retirement benefit shall be suspended in
accordance with Section 6.06(a)(l) of the Basic Plan Document. However,
the Participant may begin receiving benefits after satisfying 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 Basic Plan Document, in accordance with
Section 6.06(b )(2)(B)(i) of the Basic Plan Document.
This rule shall apply to (check one): □ all Retired Participants; □ only
the following classes of Retired Participants (must specify -specific
-28 -
City of Milton (2023 -2025 Restatement)
positions are permissible; specific individuals may not be named):
(c) □ The Participant's Early Retirement benefit shall continue m
accordance with Section 6.06(b )(2)(B)(ii) of the Basic Plan Document.
This rule shall apply to (check one): □ all Retired Participants; □ only
the following classes of Retired Participants (must specify -specific
positions are permissible; specific individuals may not be named):
B. Cost Of Living Adjustment
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 Basic Plan Document. The Employer
hereby elects the following (check one):
181
□
□
(I)
(2)
(3)
No cost-of-living adjustment.
Variable Annual cost-of-living adjustment not to exceed % (insert ---
percentage).
Fixed annual cost-of-living adjustment equal to
percentage).
---% (insert
The above cost-of-living adjustment shall apply with respect to the following Participants (and
their Beneficiaries) (check one):
181 All Participants (and their Beneficiaries).
□ Participants (and their Beneficiaries) who terminate employment
on or after ________ (insert date).
□ Other (must specify in a manner that satisfies the definite
written program requirement of Treasury Regulation 1.401-
l(a)(2) and the definitely determinable requirement of
Treasury Regulation 1.401-l(b)(l)(i)); specific positions are
permissible; specific individuals may not be named): ___ _
The Adjustment Date for the above cost-of-living adjustment shall be (if not specified, the
Adjustment Date shall be January 1): ---------------------
A.
17. TERMINATION OF EMPLOYMENT BEFORE RETIREMENT;
VESTING
Eligible Regular Employees
Subject to the terms and conditions of the Basic Plan Document, a Participant who is an Eligible
Regular Employee and whose employment is terminated for any reason other than death or
-29 -
City of Milton (2023 -2025 Restatement)
retirement shall earn a vested right in the Participant's accrued retirement benefit in accordance
with the following schedule (check one):
□ No vesting schedule (immediate vesting).
0 Cliff Vesting Schedule. Benefits shall be 100% vested after the Participant ha s a
minimum of 1 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 sc hedule (insert percentages):
COMPLETED YEARS
OF TOT AL CREDITED SERVICE VESTED PERCENTAGE
1 %
2 %
3 %
4 %
5 %
6 %
7 %
8 %
9 %
10 %
Exceptions: If a ve sting schedule other than that specified above applies to a special class(es) of
Regular Employees, the E mployer must specify the different vesting schedule below and the
class(es) to whom the differen t vesting schedule applies.
Regular Emplo yees to whom exception applies (must specify -specific positions are
permissible; specific individuals may not be named): City Manager.
Vesting Schedule for excepted class (Must specify in a manner that satisfies the definite
written program requirement of Treasury Regulation 1.401-l(a)(2) and the definitely
determinable requirement of Treasury Regulation 1.401-l(b)(l)(i). Must be at least as
favorable as one of the following schedules: (i) 15-year cliff vesting, (ii) 20-year graded
vesting, or (iii) for qualified public safety employees, 20-year cliff vesting.): Immediate
Vesting (no vesting requirement}.
B. Elected or Appointed Members of the Governing Authority
Subject to the terms and conditions of the Basic Plan Document, a Participant who is an elected
or appointed member of the Governing Authority or a Municipal Legal Officer shall earn a
vested right in the Participant's accrued retirement benefit for Credited Service in such capacity
in accordance with the following schedule (check one):
0 Not applicable ( elected or appointed members of the Governing Authority are not
permitted to participate in th e Plan ).
□ No vesting schedule (immediate ves tin g).
-30 -
City of Milton (2023 -2025 Restatement)
□ Other vesting schedule (Must specify in a manner that satisfies the definite
written program requirement of Treasury Regulation 1.401-l(a)(2) and the
definitely determinable requirement of Treasury Regulation 1.401-l(b)(l)(i).
Must be at least as favorable as one of the following schedules: (i) 15-year
cliff vesting, (ii) 20-year graded vesting, or (iii) for qualified public safety
employees, 20-year cliff vesting.): _______________ _
18. PRE-RETIREMENT DEATH BENEFITS
A. In-Service Death Benefit
Subject to the term s and conditions of the Basic Plan Document, 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) l8I
(2) □
Auto A Death Benefit. A monthl y benefit payable to the Participant's
Pre-Retirement Beneficiary , equal to the decreased monthly retirement benefit
that would hav e otherwise been payable to the Participant, had the Participant
elected a 100% joint and survivor benefit under Section 7.03 of the Basic Plan
Document. In order to be eligible for this benefit, a Participant must meet the
following requirements (check one):
l8I The Participant must be vested in a normal retirement benefit.
□ The Participant must have
Credited Service.
years (insert number) of Total
□ The Participant must be eligible for Early or Normal Retirement.
□ Other eligibility requirement (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-
l(a)(2) and the definitely determinable requirement of Treasury
Regulation 1.401-l(b)(l)(i)): ____________ _
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 Basic Plan Document.
□ The Participant must have __ years (insert number) of Total Credited
Service.
□ Other eligibility requirement (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-
-31 -
City of Milton (2023 -2025 Restatement)
l(a)(2) and the definitely determinable requirement of Treasury
Regulation 1.401-l(b)(l)(i)): ____________ _
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 (½) □-----(insert other
fraction) of the Service between such date of death and what would
otherwise have been the Participant's Normal Retirement Date. (See Basic
Plan Document 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 "E xceptions" 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 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 satisfies the definite written program
and definitely determinable requirements of Treasury Regulations Sections 1.401-l(a)(2)
and 1.401-l(b)(l)(i) and does not violate limits applicable to governmental plans under
Code Sections 401(a)(17) and 415): __________________ _
Participants to w hom alternative death benefit applies (must specify -specific positions are
permissible; specific individuals may not be named): _____________ _
Eligibility conditions for alternative death benefit (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2) and the
definitely determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): ____ _
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 Basic Plan Document,
the Employer hereby elects the following terminated vested death benefit (check one):
-32 -
City of Milton (2023 -2025 Restatement)
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 the Participant
elected a l 00% joint and survivor benefit under Section 7 .03 of the Basic Plan
Document.
□ 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
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 satisfies the definite written program
and definitely determinable requirements of Treasury Regulations Sections 1.401-l(a)(2)
and 1.401-l(b)(l)(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 -specific positions are
permissible; specific individuals may not be named): _____________ _
Eligibility conditions for alternative death benefit (must specify in a manner that satisfies the
definite written program requirement of Treasury Regulation 1.401-l(a)(2) and the
definitely determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)): ____ _
19. EMPLOYEE CONTRIBUTIONS
(1) Employee contributions (check one):
D 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 -specific positions are
permissible; specific individuals may not be named): 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
-33 -
City of Milton (2023 -2025 Restatement)
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):
181 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
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.
181 Interest shall be paid on a refund of Employee Contributions at a rate established
by GMEBS from time to time.
D Other rate of interest (must specify rate in a manner that satisfies the definite
written program requirement of Treasury Regulation 1.401-l(a)(2) and the
definitely determinable requirement of Treasury Regulation 1.401-l(b)(l)(i)):
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 timel y inform the Adopting Employer of any amendments made by the
Board to the Plan.
-34 -
City of Milton (2023 -2025 Restatement)
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 pre-approved plan 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 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 pre-approved plan
opinion letter if it makes certain elections under the Adoption Agreement or the Addendum , and
that the failure to properly complete the Adoption Agreement may result in a failure of the
Adopting Employer's Plan to be a qualified plan .
The Adopting Employer hereby agrees to abide by the Basic Plan Document, 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 Basic Defined Benefit Plan Document) and any other
applicable provisions of O.C .G.A. Title 47 ;
(2) The Basic 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.
-35 -
City of Milton (2023 -2025 Restatement)
This Adoption Agreement (and any Addendum) may only be used in conjunction with Georgia
Municipal Employees Benefit System Basic Defined Benefit Retirement Plan Document
approved by the Internal Revenue Service under opinion letter Q705465a dated August 31 , 2023.
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), Basic 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 opinion 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.
Authorization for Amendments. Effective on and after February 17 , 2005 , the Adopting
Employer hereby authorizes the pre-approved plan provider 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 2015-36 , Revenue
Procedure 2011-49, and Announcement 2005-37. Effective January 1, 2013, Georgia Municipal
Association , Inc ., serves as the pre-approved plan provider for the Plan. 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 Provider 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 pre-approved plan as described in
Revenue Procedure 2017-41 ; or
• as of the date the Plan is otherwise considered an individually
designed plan due to the nature and extent of the amendments .
-36 -
City of Milton (2023 -2025 Restatement)
If the Adopting Employer is required to obtain a determination letter for
any reason in order to maintain reliance on the opinion letter, the Provider'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 pre-approved plan opinion letter.
Reliance on Opinion Letter. As provided in Revenue Procedure 2017-41 , the Adopting
Employer may rely on the Plan's opinion letter, provided that the Adopting Employer's Plan is
identical to the GMEBS Plan , and the Adopting Employer has not amended or made any
modifications to the Plan other than to choose the options permitted under the Plan, Adoption
Agreement, and any Addendum.
-37 -
City of Milton (2023 -2025 Restatement)
AN ORDINANCE (continued from page 1)
Section 2. Except as otherwise specifically required by law or by the terms of the Basic
Plan Document 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
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 the date of its approval by the
Governing Authority (not earlier than the first day of the current Plan Year in which the
Plan is adopted, unless a retroactive corrective amendment is permitted under EPCRS,
Rev. Proc. 2021-30 (or subsequent updated guidance)).
Section 4. All Ordinances and parts of ordinances in conflict herewith are expressly
repealed.
-th J Approved by the Mayor and Council of the City of Milton , Georgia, this
oVtMbe.iv-, 20A:t_ .
l i day of
.
o-u.u)-~ GEORGIA
Mayor
(SEAL)
Approved:
Ci~~~
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
Benefit System has caused its Seal and the signatures of its duly authorized officers to be affixed
this ___ day of ___________ , 20 __
(SEAL)
-38 -
City of Milton (2023 -2025 Restatement)
Board of Trustees
Georgia Municipal Employees
Benefit System
Secretary
19th 24December
AN ORDINANCE (continued from page 1)
Section 2. Except as otherwise specifically required by law or by the terms of the Basic
Plan Document 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
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 the date of its approval by the
Governing Authority (not earlier than the first day of the current Plan Year in which the
Plan is adopted, un less a retroactive corrective amendment is permitted unde r EPCRS,
Rev. Proc. 2021-30 (or subsequent updated guidance)).
Section 4. All Ordinances and parts of ordinances in conflict herewith are expressly
repealed.
~ J Approved by the Mayor and Council of the City of Milton , Georgia, this
,ave.Mbex· , 20 M .
l i day of
ITY OF • GEO RGIA
.
Ma
(SEAL)
Approved :
Cit~~~
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
Benefit System has caused its Seal and the signatures of its duly authorized officers to be affixed
this 19th day of December , 201.i_.
(SEAL)
-38 -
City of Milton (2023 -2025 Restatement)
Board of Trustees
Georgia Municipal Employees
Benefit System
Secretary
RESOLUTION OF THE
BOARD OF TRUSTEES OF THE
GEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM
APPROVAL OF AMENDMENT 1 TO THE THIRD CYCLE
RESTATED GMEBS DEFINED BENEFIT RETIREMENT PLAN
(APPROVED BY THE IRS AUGUST 31, 2023)
WHEREAS, the Board of Trustees (“Board”) of the Georgia Municipal Employees
Benefit System (“GMEBS”) previously adopted the GMEBS Defined Benefit Retirement Plan
("Plan"), which received a favorable advisory letter from the Internal Revenue Service (“IRS”) on
March 30, 2018, and was most recently amended by the Board on December 2, 2022, through the
Board’s approval of Amendment 4 to the Restated GMEBS Defined Benefit Retirement Plan;
WHEREAS, the Board periodically updates and restates the Plan with the IRS to ensure
the qualified status of the Plan under Section 401(a) of the Internal Revenue Code;
WHEREAS, GMEBS most recently submitted the Plan to the IRS for restatement
purposes on June 29, 2022;
WHEREAS, on August 31, 2023, the IRS issued a favorable opinion letter for the Plan;
WHEREAS, under the IRS’s practices and procedures relating to plan restatements,
certain amendments the Board had previously made to the Plan to implement applicable provisions
of the SECURE Act of 2019 and SECURE Act 2.0 concerning the beginning age for required
minimum distributions, were not included in the Plan documents submitted to the IRS for
restatement purposes;
WHEREAS, the Board has reserved the right to amend the Plan on behalf of Adopting
Employers to retain the qualified status of the Plan in Section 18.02 of the Basic Plan Document;
and
WHEREAS, the Trustees now wish to amend the newly restated Plan (“Third Cycle
Restated GMEBS Defined Benefit Retirement Plan”) to implement applicable provisions of the
SECURE Act of 2019 and SECURE Act 2.0 concerning the beginning age for required minimum
distributions.
NOW, THEREFORE BE IT RESOLVED, this Amendment 1 is hereby adopted to
amend the Basic Plan Document effective as set forth herein:
1. Section 10.01(b), concerning distribution rules imposed by federal law, are
amended to update the age for a Participant’s required beginning date, as follows:
(a) A Participant's entire interest will be distributed, or begin to be distributed, to the
Participant no later than the Participant's required beginning date. For purposes of this Section,
"required beginning date" means April 1 of the calendar year following the later of (i) the calendar
year in which the Participant reaches the applicable age or (ii) the calendar year in which the
Participant Retires. For purposes of this Section, “applicable age” (as defined under Code Section
401(a)(9)(C)(v)) means:
(1) Age seventy and one-half (70 ½) (for a Participant who was born on or before
June 30, 1949);
(2) Age seventy-two (72) (for a Participant who was born on or after July 1, 1949, but
before 1951); or
(3) Age seventy-three (73) or the otherwise applicable age under Section
401(a)(9)(C)(v) of the Internal Revenue Code (for a Participant who was born in 1951 or
later).
2. Section 10.01(c)(1), concerning distribution rules imposed by federal law, are
amended to update the Participant’s age for the purpose of distributions to his or her surviving
spouse when said surviving spouse is the sole Designated Beneficiary, as follows:
(b) If the Participant dies before distributions begin, the Participant's entire interest will
be distributed, or begin to be distributed, no later than as follows:
(1) If the Participant's surviving spouse is the Participant's sole designated beneficiary,
then distributions to the surviving spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died, or by December 31
of the calendar year in which the Participant would have attained the applicable age, if
later.