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HomeMy WebLinkAboutORDINANCE NO. 07-03-16COUNTY OF FULTON ORDINANCE NO. 07-03-16 AN ORDINANCE ACCEPTING THE GEORGIA MUNICIPAL EMPLOYEE BENEFIT SYSTEM OFFICIAL PLAN DOCUMENT FOR RETIREMENT PROGRAM BE IT ORDAINED by the City Council of the City of Milton, GA while in a Regular called Council meeting on March 15, 2007 at 7:00 p.m. as follows: SECTION 1. That the retirement plan for the Employees of the City of Milton, Georgia is hereby established as set forth in and subject to the terms and conditions stated in the attached Adoption Agreement, the Georgia Municipal Employees Benefit System (GMEBS) Master Plan Document, and the GMEBS Trust Agreement, and; SECTION 2. All ordinances, parts of ordinances, or regulations in conflict herewith are hereby repealed. SECTION 3. That this Ordinance shall become effective upon its adoption. ORDAINED this the 15th day of March, 2007 Attest: 'WA^4_tW k. hoAtL r real ette R. Marchiafava, City Cler) INT Joe Lock Mayor 0 GEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM DEFINED BENEFIT PLAN ADOPTION AGREEMENT for City of Milton GMEBS - Defined Benefit Plan Adoption Agreement (Effective April 1, 2007) RECD MAR 2 2 2007 TABLE OF CONTENTS PAGE ANORDINANCE.......................................................................................................................... 1 ADMINISTRATOR....................................................................................................................... 2 ADOPTINGEMPLOYER.............................................................................................................. 2 GOVERNINGAUTHORITY........................................................................................................ 2 PLAN REPRESENTATIVE........................................................................................................... 2 PENSIONCOMMITTEE............................................................................................................... 3 TYPEOF ADOPTION................................................................................................................... 3 EFFECTIVEDATE........................................................................................................................ 4 PLANYEAR.................................................................................................................................. 4 CLASSES OF ELIGIBLE EMPLOYEES...................................................................................... 5 ELIGIBILITYCONDITIONS........................................................................................................ 6 HOURS PER WEEK (REGULAR EMPLOYEES)................................................................... 6 MONTHS PER YEAR (REGULAR EMPLOYEES)................................................................ 7 WAITINGPERIOD........................................................................................................................ 7 ESTABLISHING PARTICIPATION IN THE PLAN................................................................... 7 CREDITEDSERVICE................................................................................................................... 8 CREDITED PAST SERVICE.................................................................................................... 8 PRIORMILITARY SERVICE................................................................................................... 9 PRIOR GOVERNMENTAL SERVICE................................................................................... 11 UNUSED SICK/VACATION/PERSONAL LEAVE.............................................................. 12 RETIREMENTELIGIBILITY..................................................................................................... 13 EARLY RETIREMENT QUALIFICATIONS......................................................................... 13 NORMAL RETIREMENT QUALIFICATIONS..................................................................... 14 ALTERNATIVE NORMAL RETIREMENT QUALIFICATIONS ........................................ 15 DISABILITY BENEFIT QUALIFICATIONS........................................................................ 16 RETIREMENT BENEFIT COMPUTATION.............................................................................. 17 MAXIMUM TOTAL CREDITED SERVICE......................................................................... 17 MONTHLY NORMAL RETIREMENT BENEFIT AMOUNT .............................................. 17 MONTHLY EARLY RETIREMENT BENEFIT AMOUNT .................................................. 19 MONTHLY LATE RETIREMENT BENEFIT AMOUNT ..................................................... 20 Kmo MONTHLY DISABILITY BENEFIT AMOUNT................................................................... 20 BENEFIT CAP FOR ELECTED OFFICIALS........................................................................ 21 DISTRIBUTIONS FOR THOSE WHO REMAIN IN SERVICE AFTER NORMAL RETIREMENT......................................................................................................................... 21 COST OF LIVING ADJUSTMENT........................................................................................ 22 RE-EMPLOYMENT AFTER RETIREMENT........................................................................ 22 TERMINATION OF EMPLOYMENT BEFORE RETIREMENT; VESTING .......................... 23 PRE -RETIREMENT DEATH BENEFITS.................................................................................. 24 IN-SERVICE DEATH BENEFIT............................................................................................ 24 TERMINATED VESTED DEATH BENEFIT........................................................................ 25 EMPLOYEE CONTRIBUTIONS................................................................................................ 26 EMPLOYERADOPTION............................................................................................................ 27 ii - AN ORDINANCE An Ordinance to establish a 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, the Georgia Municipal Employees Benefit System (GMEBS) Master Plan Document, and the GMEBS Trust Agreement. When accepted by the authorized officers of the City and GMEBS, the foregoing shall constitute a Contract between the City and GMEBS, all as authorized and provided by O.C.G.A. § 47-5-1 et seq. BE IT ORDAINED by the Mayor and Council of the City of Milton, Georgia, and it is hereby ordained by the authority thereof: Section 1. The retirement plan for the Employees of the City of Milton, Georgia is hereby established as set forth in and subject to the terms and conditions stated in the following Adoption Agreement, the Georgia Municipal Employees Benefit System (GMEBS) Master Plan Document, and the GMEBS Trust Agreement. [Ordinance continued on page 281 GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) GMEBS DEFINED BENEFIT PLAN ADOPTION AGREEMENT ADMINISTRATOR Georgia Municipal Employees Benefit System 201 Pryor Street, SW Atlanta, Georgia 30303 Telephone: 404-688-0472 Facsimile: 404-577-6663 ADOPTING EMPLOYER Name: City of Milton, Georgia GOVERNING AUTHORITY so" Name: Mayor and Council Address: 13000 Deerfield Parkway, Building 100, Alpharetta, GA 30004 Phone: (678) 242-2525 Facsimile: (678) 242-2499 PLAN REPRESENTATIVE [To represent Governing Authority in all communications with GMEBS and Employees] (See Article II, Section 44 of Master Plan) Name: Director of Operations Address: 13000 Deerfield Parkway, Building 100, Alpharetta, GA 30004 Phone: (678) 242-2525 Facsimile: (678) 242-2499 E-mail: carol.wolfe@cityofmiltonga.us um GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -2- PENSION COMMITTEE [Please designate members by position. If not, members of Pension Committee shall be determined in accordance with Article XIV of Master Plan] Position: Position: Position: Position: Position: Position: Position: Pension Committee Secretary: City Clerk Address: 13000 Deerfield Parkway, Building 100, Alpharetta, GA 30004 Phone: (678) 242-2525 Facsimile: (678) 242-2499 E-mail: jeanette.marchiafava@cityofmiltonga.us TYPE OF ADOPTION This Adoption Agreement is for the following purpose (check one): ® This is a new defined benefit plan adopted by the Adopting Employer for its Employees. This plan does not replace or restate an existing defined benefit plan. ❑ This is an amendment and restatement of the current GMEBS defined benefit plan or other defined benefit plan of the Adopting Employer. ❑ This is an amendment of the Adoption Agreement previously adopted by the Employer (please specify type below): ❑ This is an amendment to change one or more of the Adopting Employer's benefit design elections in the Adoption Agreement. ❑ This is an amendment to add a new Department or a new class of Eligible Employees (If this box is checked, special addendum must be requested from GMEBS to be completed as part of amendment). ❑ This is an amendment to discontinue participation in the Plan by one or more Departments or classes of Employees (If this box is checked, special addendum must be requested from GMEBS to be completed as part of amendment). ❑ Other (please specify): X"M rr GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -3- EFFECTIVE DATE (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 April 1, 2007. (insert effective date of this Adoption Agreement not earlier than January 1, 1997). (2) Complete this item (2) only if this is an amendment and complete restatement of the Adopting Employer's existing GMEBS defined benefit plan. Except as otherwise specifically provided in the Master Document or in this Adoption Agreement, the effective date of this restatement shall be (insert effective date of this Adoption Agreement not earlier than January 1, 1997). This Plan is adopted as an amendment and restatement of the Employer's preexisting GMEBS plan, which became effective on (insert original effective date of preexisting GMEBS plan). (3) Complete this item (3) only if this Plan is being adopted to replace a non-GMEBS defined benefit plan. Except as otherwise specifically provided in the Master Document or in this Adoption Agreement, the effective date of this restatement shall be (insert 'WN" effective date of this Adoption Agreement not earlier than January 1, 1997). 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). (4) Complete this item (4) only if this is an amendment of the Adoption Agreement previously adopted by the Employer. The effective date of this amendment shall be PLAN YEAR Plan Year means (check one): ❑ Calendar Year ❑ Employer Fiscal Year commencing ® Other (must specify): January 1— December 31. fr GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -4- CLASSES OF ELIGIBLE EMPLOYEES Only Employees of the Adopting Employer who meet the Master Plan's definition of "Employee" may be covered under the Adoption Agreement. Independent contractors, leased employees, and nonresident aliens may not participate in the Plan. 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 Master Plan and the Adoption Agreement, the following Regular Employees are eligible to participate in the Plan (check one): ® ALL - All Regular Employees, provided they satisfy the minimum hour and other requirements specified under "Eligibility Conditions" below. ❑ ALL REGULAR EMPLOYEES EXCEPT for the following employees (must specify): Elected or Auuointed Members of the Governing Authoritv An Adopting Employer may elect to permit participation in the Plan by elected or appointed members of the Governing Authority and/or Municipal Legal Officers, provided they otherwise " meet the Master Plan's definition of "Employee" and provided they satisfy any other requirements specified by the Adopting Employer. Municipal Legal Officers to be covered must be specifically identified by position. Subject to the above conditions, the Employer hereby elects the following treatment for elected and appointed officials: Elected or Appointed Members of the Governing Authority (check one): ® ARE NOT eligible to participate in the Plan. ❑ ARE eligible to participate in the Plan. Please specify any limitations on eligibility to participate here (e.g., service on or after certain date): law GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -5- Municipal Legal Officers (check one): ® ARE NOT eligible to participate in the Plan. ❑ ARE eligible to participate in the Plan. The term "Municipal Legal Officer" shall include only the following positions (must specify): Please specify any limitations on eligibility to participate here (e.g., service on or after certain date): ELIGIBILITY CONDITIONS HOURS PER WEEK (REGULAR EMPLOYEES) The Adopting Employer may specify a minimum number of hours per week which are required to be scheduled and worked by Regular Employees in order for them to become and remain 'Eligible Regular Employees" under the Plan. It is the responsibility of the Adopting Employer to determine whether these requirements are and continue to be satisfied. The Employer hereby elects the following minimum hour requirement for Regular Employees: ❑ No minimum ❑ 20 hours/week (regularly scheduled) ❑ 30 hours/week (regularly scheduled) ® Other: 35 hours/week (must not exceed 40 hours/week regularly scheduled) Exceptions: If a different minimum hour requirement applies to a particular class or classes of Regular Employees, please specify below the classes to whom the different requirement applies and indicate the minimum hour requirement applicable to them. Class(es) of Regular Employees to whom exception applies (must specify): Minimum hour requirement applicable to excepted Regular Employees: ❑ No minimum ❑ 20 hours/week (regularly scheduled) ❑ 30 hours/week (regularly scheduled) ❑ Other: (must not exceed 40 hours/week regularly scheduled) GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) " MONTHS PER YEAR (REGULAR EMPLOYEES) r The Adopting Employer may specify a minimum number of months per year which are required to be scheduled and worked by Regular Employees in order for them to become and remain "Eligible Employees" under the Plan. It is the responsibility of the Adopting Employer to determine whether these requirements are and continue to be satisfied. The Employer hereby elects the following minimum requirement for Regular Employees: ❑ No minimum ® At least 6 months per year (regularly scheduled) WAITING PERIOD Regular Employees Unless otherwise specified by the Adopting Employer in an addendum to this Adoption Agreement, Regular Employees shall be required to complete one (1) year of continuous, uninterrupted Service with the Adopting Employer before they qualify for participation in the Plan. The determination as to whether the waiting period has been satisfied shall be made in accordance with provisions of the Master Plan. 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. However, the Employer may specify below that participation is optional for certain classes of Eligible Employees, including elected or appointed members of the Governing Authority, Municipal Legal Officers, City Managers, and/or Department Heads. If participation is optional for an Eligible Employee, then in order to become a Participant, he must make an election to participate within 120 days after employment, election or appointment to office, or if later, the date he first becomes eligible to participate in the Plan. The election is irrevocable, and the failure to make the election within the 120 -day time limit shall be deemed an irrevocable election not to participate in the Plan. Classes for whom participation is optional: ❑ Elected or appointed members of the Governing Authority ❑ Municipal Legal Officers ❑ City Manager ❑ Department Heads ❑ Other (must specify): mr GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -7- CREDITED SERVICE In addition to Current Credited Service the Adopting Employer may include as Credited Service the following types of service: CREDITED PAST SERVICE 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. Eligible Employees Employed on Effective Date of GMEBS Plan. With respect to Eligible Employees who are employed by the Adopting Employer on the original Effective Date of the Employer's GMEBS Plan, Service with the Adopting Employer prior to the date the Eligible Employee becomes a Participant (including any Service prior to the Effective Date of the Plan) shall be treated as follows (check one): ® All Service prior to the date the Eligible Employee becomes a Participant shall be credited (as Credited Past Service). ❑ All Service prior to the date the Eligible Employee becomes a Participant shall be credited (as Credited Past Service), except for Service rendered prior to (insert date). ❑ All Service prior to the date the Eligible Employee becomes a Participant shall be credited (as Credited Past Service), except for (must specify other limitation): Previously Employed, Returning to Service after Effective Date. If an Eligible Employee is not employed on the original Effective Date of the Employer's GMEBS Plan, but he returns to Service with the Adopting Employer sometime after the Effective Date, his Service prior to the date he becomes a Participant (including any Service prior the Effective Date) shall be treated as follows (check one): ❑ All Service prior to the date the Eligible Employee becomes a Participant shall be credited (as Credited Past Service), subject to any limitations imposed above with respect to Eligible Employees employed on the Effective Date. ® All Service prior to the date the Eligible Employee becomes a Participant shall be credited (as Credited Past Service), provided that after his return to employment, the Eligible Employee performs Service equal to the period of the break in Service or one (1) year, whichever is less. Any limitations imposed above with respect to Eligible Employees employed on the Effective Date shall also apply. ❑ Other limitation(s) (must specify): + GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -8- Eligible Employees Initially Employed After Effective Date. If an Eligible Employee's initial am employment date is after the original Effective Date of the Employer's GMEBS Plan, his Credited Past Service shall include only the number of years and complete months of Service from his initial employment date to the date he becomes a Participant in the Plan. 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. PRIOR MILITARY SERVICE Note: This section does not concern military service required to be credited under USERRA — See Article III, Section 2 of the Master Plan for rules on the crediting of USERRA Military Service. The Adopting Employer may elect to treat military service rendered prior to a Participant's initial employment date or reemployment date as Credited Service under the Plan. Unless otherwise specified by the Employer under "Other Conditions" below, the term "Military Service" shall be as defined in the Master Plan. Except as otherwise required by federal or state law or under "Other Conditions" below, Military Service shall not include service which is credited under any other local, state, or federal retirement or pension plan. awa 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 next section — Prior Governmental Service). ❑ Prior Military Service shall be counted as Credited Service for the following purposes (check one or more as applicable): ❑ Computing amount of benefits payable. ❑ Meeting minimum service requirements for vesting. ❑ Meeting minimum service requirements for benefit eligibility. Maximum Credit for Prior Military Service. Credit for Prior Military Service shall be limited to a maximum of years (insert number). s� GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) Rate of Accrual for Prior Military Service. Credit for Prior Military Service shall accrue at the following rate (check one): ❑ One month of military service credit for every month(s) (insert number) of Credited Service with the Adopting Employer. ❑ One year of military service credit for every year(s) (insert number) of Credited Service with the Adopting Employer. ❑ All military service shall be creditable (subject to any caps imposed above) after the Participant has completed years (insert number) of Credited Service with the Employer. ❑ Other requirement (must specify): Payment for Prior Military Service Credit (check one): ❑ Participants shall not be required to pay for military service credit. ❑ Participants shall be required to pay for military service credit as follows: ❑ The Participant must pay % of the actuarial cost of the service credit (as defined below). ❑ The Participant must pay an amount equal to (must specify): Other Conditions for Award of Prior Military Service Credit (must specify): Limitations on Service Credit Purchases. For purposes of this section and the following section concerning prior governmental service credit, the term "actuarial cost of the service credit" means the present value of the Accrued Benefit relating to such additional service credit determined as of the payment date and calculated based upon the assumptions specified in Article XII, Section 7 of the Master Plan. 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. The Employer may elect to allow Employees to make the purchase through payroll deduction and the Employer may pick-up the amount to be contributed by the Employee in accordance with Internal Revenue Code Section 414(h) and the Plan, subject to any conditions contained in GMEBS' rules and regulations concerning service credit purchases. am GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -10- D PRIOR GOVERNMENTAL SERVICE Note: Prior service with other GMEBS employers shall be credited as provided under the Master Plan. The Adopting Employer may elect to treat governmental service rendered prior to a Participant's initial employment date or reemployment date as creditable service under the Plan. Subject to any limitations imposed by law, the term "prior governmental service" shall be as defined by the Adopting Employer below. The Employer elects to treat prior governmental service as follows (check one): ® Prior governmental service is not creditable under the Plan (if checked, skip to next section — Unused Sick/Vacation/Personal 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. Definition of Prior Governmental Service. Prior governmental service shall be defined as follows: (must specify): Unless otherwise specified above, prior governmental service shall include only full-time service (minimum hour requirement same as that applicable to Eligible Regular Employees). Maximum Credit for Prior Governmental Service. Credit for prior governmental service shall be limited to a maximum of years (insert number). Rate of Accrual for Prior Governmental Service Credit. Credit for prior governmental service shall accrue at the following rate (check one): ❑ One month of prior governmental service credit for every month(s) (insert number) of Credited Service with the Adopting Employer. ❑ One year of prior governmental service credit for every year(s) (insert number) of Credited Service with the Adopting Employer. GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -11- ❑ 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. p Other requirement (must specify): 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): UNUSED SICK/VACATION/PERSONAL LEAVE An Adopting Employer may elect to treat accumulated days of unused leave for which a terminated Participant is not paid as Credited Service. The Pension Committee shall be responsible to certify to GMEBS the total amount of unused leave which is creditable hereunder. The Employer elects the following treatment of unused leave: ® Unused leave shall not be treated as Credited Service (if checked, skip to next section — Retirement Eligibility). ❑ The following types of unused leave for which the Participant is not paid shall be treated as Credited Service under the Plan (check one or more as applicable): ❑ Unused sick leave ❑ Unused vacation leave ❑ Unused personal leave ❑ Other (must specify):. Minimum Service Requirement. In order to receive credit for unused leave, a Participant must meet the following requirement at termination (check one): ❑ The Participant must be 100% vested in a normal retirement benefit. ❑ The Participant must have at least years (insert number) of Total Credited Service (not including leave otherwise creditable under this section). ❑ Other (must specify): 00 GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -12- Use of Unused Leave Credit. Unused leave shall count as Credited Service for the following purposes under the Plan (check one or more as applicable): ❑ Computing amount of benefits payable. ❑ Meeting minimum service requirements for vesting. ❑ Meeting minimum service requirements for benefit eligibility. Maximum Credit for Unused Leave. Credit for unused leave shall be limited to a maximum of months (insert number). Computation of Unused Leave. Unless otherwise specified by the Adopting Employer under "Other Conditions" below, each twenty (20) days of creditable unused leave shall constitute one (1) complete month of Credited Service under the Plan. Partial months shall not be credited. Other Conditions (please specify): RETIREMENT ELIGIBILITY 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 Employer must specify below the classes to whom the different requirements apply and indicate below the requirements applicable to them. Eligible Employees to whom exception applies (must specify): rrrrr GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -13- Early retirement qualifications for excepted class(es) are (check one or more as applicable): ❑ Attainment of age (insert number) ❑ Completion of years (insert number) of Total Credited Service NORMAL RETIREMENT QUALIFICATIONS Note: Please complete this section and also list "Alternative" Normal Retirement Qualifications, if any, in next section. Regular Employees Normal retirement qualifications for Regular Employees are (check one or more as applicable): ® Attainment of age 65 (insert number) ® Completion of 7 years (insert number) of Total Credited Service 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): Normal retirement qualifications for excepted class(es) are (check one or more as applicable): ❑ Attainment of age (insert number) ❑ Completion of years (insert number) of Total Credited Service 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 GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -14- ALTERNATIVE NORMAL RETIREMENT QUALIFICATIONS r Please skip to the next section (Disability Benefit Qualifications) if the Adopting Employer does not offer alternative normal retirement benefits under the Plan. 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): ❑ Alternative Minimum Age & Service Qualifications. (if checked, please complete one or more items below, as applicable): ❑ Attainment of age (insert number) ❑ Completion of years (insert number) of Total Credited Service This alternative normal retirement benefit is available to: ❑ All Participants who qualify. ❑ Only the following Participants (must specify): A Participant (check one): ❑ is required ❑ is not required to be in the service of the Employer at the time he satisfies the above qualifications in order to qualify for this alternative normal retirement benefit. ❑ 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): ❑ must have attained at least age (insert number) ❑ must not satisfy any minimum age requirement. This alternative normal retirement benefit is available to: ❑ All Participants who qualify. ❑ Only the following Participants (must specify): A Participant (check one): ❑ is required ❑ is not required to be in the service of the Employer at the time he satisfies the Rule in order to qualify for this alternative normal retirement benefit. ►�r.w GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -15- • ❑ Alternative Minimum Service. A Participant is eligible for an alternative normal retirement benefit if he has at least years (insert number) of u.w Total Credited Service, regardless of the Participant's age. This alternative normal retirement benefit is available to: ❑ All Participants who qualify. ❑ Only the following Participants (must specify): ❑ Other Alternative Normal Retirement Benefit. Must specify qualifications: This alternative normal retirement benefit is available to: ❑ All Participants who qualify. ❑ Only the following Participants (must specify): DISABILITY BENEFIT QUALIFICATIONS Please skip to the next section (Retirement Benefit Computation) if the Adopting Employer does not offer disability retirement benefits under the Plan. Subject to the other terms and conditions of the Master Plan, disability retirement qualifications are based upon Social Security Administration award criteria or as otherwise provided under Article II, Section 19 of the Master Plan. To qualify for a disability benefit, a Participant must have the following minimum number of years of Total Credited Service: ® No minimum. ❑ years (insert number) of Total Credited Service. ❑ Other requirement (must specify): tow GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -16- RETIREMENT BENEFIT COMPUTATION MAXIMUM TOTAL CREDITED SERVICE The number of years of Total Credited Service which may be used to calculate a benefit is (check one): ® not limited. ❑ limited to years. ❑ limited to years as an elected or appointed member of the Governing Authority or Municipal Legal Officer. MONTHLY NORMAL RETIREMENT BENEFIT AMOUNT Regular Employees The monthly normal retirement benefit for Eligible Regular Employees shall be 1/12 of (check one): ® Flat Percentage Formula. 2.75% (insert percentage) of Final Average Earnings multiplied by years of Total Credited Service as an Eligible Regular Employee. ❑ Split Formula (Dynamic Break Point). % (insert percentage) of Final Average Earnings up to the amount of Covered Compensation as defined in Article II, Section 15 of the Master Plan (Dynamic Break Point), 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. ❑ Split Formula (Table Break Point). % (insert percentage) of Final Average Earnings up to the amount of Covered Compensation as defined in Article II, Section 16 of the Master Plan (Table Break Point), 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. ❑ Grandfathered Split Formula. For Eligible Regular Employees employed on or after , (insert date) and for Eligible Regular Employees employed prior to said date only when application of this formula would result in a higher benefit than the benefit as determined under the following sentence, % (insert percentage) of Final Average Earnings up to the amount of Covered Compensation as defined in Article Il, Section 15 of the #irem GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -17- w" Master Plan (Dynamic Break Point), plus % (insert percentage) of Final Average Earnings in excess of said Covered Compensation, multiplied by ,r, m years of Total Credited Service as an Eligible Regular Employee. For Regular Employees employed prior to , (insert date) only when application of this formula would result in a higher benefit than the benefit as determined under the preceding sentence, % (insert percentage) of Final Average Earnings up to the amount of Covered Compensation as defined in Article II, Section 16 of the Master Plan (Table Break Point), 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. ❑ Other Formula (must specify): Exceptions: If a formula other than that specified above applies to a special class(es) of Eligible Regular Employees, the Employer must specify below the class(es) to whom the different formula applies and indicate below the formula applicable to them. Class(es) of Regular Employees to whom exception applies (must specify): Benefit formula for excepted class (must specify): Final Average Earnines Final Average Earnings is defined as (check one): ® The annual average of Earnings paid to a Participant by the Adopting Employer for the 5 (insert number not to exceed 5) consecutive years (12 month periods) of Credited Service preceding the Participant's most recent Termination in which the Participant's Earnings were the highest. Note: GMEBS has prescribed forms for calculation of Final Average Earnings that must be used for this purpose. ❑ Other method of calculation (must specify): err GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -18- Elected or Appointed Members of the Governing Authority ftw Complete this section only if elected or appointed members of the Governing Authority or Municipal Legal Officers are permitted to participate in the Plan. The monthly normal retirement benefit for members of this class shall be as follows (check one): ❑ $ (insert dollar amount) per month for each year of Total Credited Service as an elected or appointed member of the Governing Authority or Municipal Legal Officer or major fraction thereof (6 months and 1 day). ❑ Other formula (must specify): Exceptions: If a different formula from that specified above applies to a particular class of elected or appointed members of the Governing Authority or Municipal Legal Officers, the Employer must specify below the class to whom the different formula applies and indicate below the formula applicable to them. Those to whom exception applies (must specify): Benefit formula for excepted class (must specify): MONTHLY EARLY RETIREMENT BENEFIT AMOUNT (check one): ® 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 Article XII, Section 1 of the Master Plan to account for early commencement of benefits. ❑ The monthly Early Retirement benefit shall be computed as follows (must specify): bow GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -19- MONTHLY LATE RETIREMENT BENEFIT AMOUNT (check one): ® The monthly Late Retirement benefit shall be computed in the same manner as the Normal Retirement Benefit, based upon the Participant's Accrued Benefit as of his Late Retirement Date. ❑ The monthly Late Retirement benefit shall be the greater of. (1) the monthly retirement benefit accrued as of the Participant's Normal Retirement Date, actuarially increased in accordance with the actuarial table contained in Article X1I, Section 6 of the Master Plan; or (2) the monthly retirement benefit accrued as of the Participant's Late Retirement Date, without further actuarial adjustment under Article XII, Section 6 of the Master Plan. MONTHLY DISABILITY BENEFIT AMOUNT Complete this section only if the Adopting Employer elects to provide Disability retirement benefits. The amount of the monthly Disability Benefit shall be computed as follows (check one): ® The monthly Disability benefit shall be computed in the same manner as the Normal Retirement benefit, based upon the Participant's Accrued Benefit as of his Disability Retirement Date. "*" ❑ Other method (must specify): Minimum Disability Benefit. The Adopting Employer may set a minimum Disability Benefit. The Employer elects the following minimum Disability benefit (check one): ❑ No minimum is established. ® No less than (check one): ® 20% ❑ 10% ❑ % (if other than 20% or 10% insert percentage amount) of the Participant's average monthly Earnings for the 12 calendar month period immediately preceding his Termination of Employment as a result of a Disability. ❑ 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 immediately preceding his Termination of Employment as a result of a Disability, less any benefits paid from Workers Compensation, federal Social Security benefits as a result of disability, any state compulsory disability plan, and any disability income plan paid by the Employer. ❑ Other Minimum (must specify): *WAW GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -20- BENEFIT CAP FOR ELECTED OFFICIALS ftm Complete this section only if elected or appointed members of the Governing Authority participate in the Plan. 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): ❑ No cap. ❑ 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 cap (must specify): DISTRIBUTIONS FOR THOSE WHO REMAIN IN SERVICE AFTER NORMAL RETIREMENT The Employer may elect to permit active Participants who have satisfied the Employer's qualifications for Normal Retirement or Alternative Normal Retirement to begin drawing their retirement benefit even though they have not yet terminated employment with Employer, subject to the terms of the Master Plan. The Employer makes the following election in this regard (check one): ® Distribution of retirement benefits is not permitted until the Participant has terminated employment and otherwise qualifies for receipt of benefits. ❑ Participants who have satisfied the qualifications for Normal Retirement or Alternative Normal Retirement may begin drawing their Normal Retirement benefit even though they remain in the service of the Employer. This provision applies to (check one): ❑ All Participants ❑ Only Participants in the following classes (in-service distributions not permitted for any others) (must specify): wrw GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -21- COST OF LIVING ADJUSTMENT The Employer may elect to provide for a cost -of -living adjustment (COLA) in the amount of benefits being received by Retired Participants and Beneficiaries, which shall be calculated and paid in accordance with the terms of the Master Plan. The Employer hereby elects the following (check one): ® No cost -of -living adjustment. ❑ Variable Annual cost -of -living adjustment not to exceed % (insert percentage). ❑ Fixed annual cost -of -living adjustment equal to % (insert percentage). The above cost -of -living adjustment shall apply with respect to Participants (and their Beneficiaries) who terminate employment on or after (insert date). RE-EMPLOYMENT AFTER RETIREMENT Reemployment After Normal Retirement. In the event a Retired Participant is reemployed with the Employer as an Eligible Employee after his Normal Retirement Date, the following rule shall apply (check one): ® The Participant's benefit shall be suspended in accordance with Article VI, Section 6(a) of the Master Plan for as long as the Participant remains employed. ❑ The Participant may continue to receive his retirement benefit in accordance with Article VI, Section 6(c) of the Master Plan. This rule shall apply to (check one): ❑ all Retired Participants ❑ only the following classes of Retired Participants (must specify - benefits of those Retired Participants not listed shall be suspended in accordance with Article VI, Section 6(a) of the Master Plan if they return to work with the Employer): Reemployment After Early Retirement. In the event a Participant retires with an Early Retirement benefit and is reemployed with the Employer as an Eligible Employee before his Normal Retirement Date, the following rule shall apply (check one): ® The Participant's Early Retirement benefit shall be suspended in accordance with Article VI, Section 6(a) of the Master Plan for as long as the Participant remains employed. ❑ The Participant's eligibility to continue receiving Early Retirement benefits shall be subject to the following limitations (if this item is checked, check one of the following): Now GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -22- ❑ The Participant's Early Retirement benefit shall be suspended. However, the Participant may again begin receiving benefits after he satisfies the qualifications for Normal Retirement or alternative Normal Retirement in accordance with Article VI, Section 6(d) of the Master Plan. ❑ The Participant may continue receiving his Early Retirement benefit in accordance with Article VI, Section 6(e) of the Master Plan, provided his initial retirement was in good faith and he does not return to employment with the Employer for a minimum of months (insert number no less than 6) following his effective Retirement date. If this requirement is not met, the Participant's benefit shall be suspended until he satisfies the qualifications for Normal Retirement or alternative Normal Retirement in accordance with Article VI, Section 6(d) of the Master Plan. TERMINATION OF EMPLOYMENT BEFORE RETIREMENT; VESTING Eligible Regular Employees Subject to the terms and conditions of the Master Plan, a Participant who is an Eligible Regular Employee and whose employment is terminated for any reason other than death or retirement shall earn a vested right in his accrued retirement benefit in accordance with the following schedule (check one): ❑ No vesting schedule (immediate vesting). ® Cliff Vesting Schedule. Benefits shall be 100% vested after the Participant has a minimum of 7 years (insert number not to exceed 10) of Total Credited Service. Benefits remain 0% vested until the Participant satisfies this minimum. ❑ Graduated Vesting Schedule. Benefits shall become vested in accordance with the following schedule (insert percentages): COMPLETED YEARS OF TOTAL CREDITED SERVICE VESTED PERCENTAGE 1 % 2 % 3 % 4 % 5 % 6 % 7 % 8 % 9 % 10 % ON" GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -23- * Exceptions: If a vesting schedule other than that specified above applies to a special class(es) of Regular Employees, the Employer must specify the different vesting schedule below and the class(es) to whom the different vesting schedule applies. Regular Employees to whom exception applies (must specify): Vesting Schedule for excepted class (must specify): Elected or Appointed Members of the Governing Authority Complete this Section only if Elected or Appointed Members of the Governing Authority are permitted to participate in the Plan. Subject to the terms and conditions of the Master Plan, a Participant who is an elected or appointed member of the Governing Authority or a Municipal Legal Officer shall earn a vested right in his accrued retirement benefit for Credited Service in such capacity in accordance with the following schedule (check one): ❑ No vesting schedule (immediate vesting). ❑ Other vesting schedule (must specify): PRE -RETIREMENT DEATH BENEFITS IN-SERVICE DEATH BENEFIT Subject to the terms and conditions of the Master Plan, the Employer hereby elects the following in-service death benefit, to be payable in the event that an eligible Participant's employment with the Employer is terminated by reason of death prior to Retirement (check and complete one): ® Auto A Death Benefit. A monthly benefit payable to the Participant's Pre - Retirement Beneficiary, equal to the decreased monthly retirement benefit that would have otherwise been payable to the Participant, had he elected a 100% joint and survivor benefit under Article VII, Section 3 of the Master Plan. In order to be eligible for this benefit, a Participant must meet the following requirements (check one): ® The Participant must be vested in a normal retirement benefit. ❑ The Participant must have years (insert number) of Total Credited Service. ❑ The Participant must be eligible for Early or Normal Retirement. ftum GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -24- ❑ Other eligibility requirement (must specify): ❑ 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 immediately upon becoming a Participant. ❑ The Participant must have years (insert number) of Total Credited Service. ❑ Other eligibility requirement (must specify): Imputed Service. For purposes of computing the actuarial reserve death benefit, the Participant's Total Credited Service shall include (check one): ❑ Total Credited Service accrued prior to the date of the Participant's death. ❑ Total Credited Service accrued prior to the date of the Participant's death, plus (check one): ❑ one-half ('/2) ❑ (insert other fraction) of the Service between such date of death and what would otherwise have been the Participant's Normal Retirement Date. 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): Participants to whom alternative death benefit applies (must specify): Eligibility conditions for alternative death benefit (must specify): TERMINATED VESTED DEATH BENEFIT Complete this Section only if the Employer offers a terminated vested death benefit. The Employer may elect to provide a terminated vested death benefit, to be payable in the event that a Participant who is vested dies after termination of employment but before Retirement benefits commence. Subject to the terms and conditions of the Master Plan, the Employer hereby elects the following terminated vested death benefit (check one): 11rr+r GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -25- �* ® Auto A Death Benefit. A monthly benefit payable to the Participant's Pre - Retirement Beneficiary, equal to the decreased monthly retirement benefit that nr.r would have otherwise been payable to the Participant had he elected a 100% joint and survivor benefit under Article VII, Section 3 of the Master Plan. ❑ Accrued Retirement Benefit. A monthly benefit payable to the Participant's Pre - Retirement Beneficiary which shall be actuarially equivalent to the Participant's Accrued Normal Retirement Benefit determined as of the date of death. 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): Participants to whom alternative death benefit applies (must specify): Eligibility conditions for alternative death benefit (must specify): EMPLOYEE CONTRIBUTIONS Employee contributions (check one): ❑ Are not required. ® Are required in the amount of 3_0 % (insert percentage) of Earnings for all Eligible Employees. Employee contributions shall commence as of the first payroll period beginning on or after April 1, 2007. ❑ Are required in the amount of % (insert percentage) of Earnings for Participants in the following classes (must specify): Pre -Tax Treatment of Employee Contributions. If employee contributions are required, an Adopting Employer may elect to "pick-up" employee contributions to the Plan in accordance with IRC Section 414(h). In such case employee contributions shall be made on a pre-tax rather than a post -tax basis, provided the requirements of 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 Section 414(h). The Employer hereby elects (check one): ® To pick-up employee contributions. " GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -26- ❑ Not to pick-up employee contributions. Interest on Employee Contributions. The Adopting Employer may elect to pay interest on any refund of Employee Contributions. ❑ Interest shall not be paid. ® Interest shall be paid on a refund of Employee Contributions at a rate established by GMEBS from time to time. EMPLOYER ADOPTION The Adopting Employer hereby agrees to abide by the Master Plan, Trust Agreement, bylaws, 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, the bylaws of the Board, the rules and regulations of the Board, and this Plan 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. and any other applicable provisions of O.C.G.A. Title 47; (2) The bylaws of the Board; (3) The rules and regulations of the Board; (4) This Ordinance and Adoption Agreement. 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. The Adopting Employer understands that failure to properly complete this Adoption Agreement may result in the Adopting Employer's plan not being qualified under the Internal Revenue Code. The Adopting Employer also agrees it will inform the Board of any amendments to this Adoption Agreement, its Plan, or the discontinuance, abandonment or termination of its Plan. GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -27- AN ORDINANCE (continued from page 1) boo Section 2. Except as otherwise specifically required by law or by the terms of the Master Plan or Adoption Agreement, the rights and obligations under the Plan with respect to persons whose employment or term of office with the City was terminated 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 April 1, 2007. Section 4. All Ordinances and parts of ordinances in conflict herewith are expressly repealed. Approved by the Mayor and Council of the City of Milton, Georgia this ISS day of 2007. Attest: Ci Clerk (SEAL) Approved: City Attorney CITY OF NULTON, GEORGIA The terms of the foregoing Adoption Agreement 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 Benef Sys em has cau d its Seal and the signatures of its duly authorized officers to be affixed this 'J�day of aAP� , 20 07 - (SEAL) GMEBS - Defined Benefit Plan Adoption Agreement (City of Milton — Effective April 1, 2007) -28- Board of Trustees Georgia Municipal Employees efit ystem 4 4"L Secretary