Bill Text: GA HB635 | 2011-2012 | Regular Session | Introduced
Bill Title: Macon Water Commissioners - Pension Plan; change provisions
Sponsorship: Slight Partisan Bill (Republican 5-2)
Status: (Passed) 2012-07-01 - Effective Date [HB635 Detail]
Download: Georgia-2011-HB635-Introduced.html
12 LC
21 1296S/AP
House
Bill 635 (AS PASSED HOUSE AND SENATE)
By:
Representatives Lucas of the
139th,
Peake of the
137th,
Randall of the
138th,
Epps of the
140th,
Dickey of the
136th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend an Act entitled "Macon Water Commissioners - Pension Plan," approved
December 30, 1953 (Ga. L. 1953, p. 2831), as amended, particularly by an Act
approved March 24, 1994 (Ga. L. 1994, p. 3947), an Act approved April 4, 1996
(Ga. L. 1996, p. 4042), an Act approved May 17, 2004 (Ga. L. 2004, p. 4384), and
an Act approved May 5, 2006 (Ga. L. 2006, p. 4392), so as to exclude individuals
whose date of hire is on and after July 1, 2012, from entering the plan and to
give existing participants the right to elect to participate in a new plan
established by the board of the authority provided they meet the eligibility
requirements of the new plan; to change the definition of the term "disability";
to provide the actuarial equivalent basis which is stated in the document; to
provide for certain limitations on compensation and benefits; to update
provisions relating to required distributions; to provide for direct rollovers;
to provide for related matters; to provide conditions for an effective date and
automatic repeal; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
An
Act entitled "Macon Water Commissioners - Pension Plan," approved December 30,
1953 (Ga. L. 1953, p. 2831), as amended, particularly by an Act approved March
24, 1994 (Ga. L. 1994, p. 3947), an Act approved April 4, 1996 (Ga. L. 1996, p.
4042), an Act approved May 17, 2004 (Ga. L. 2004, p. 4384), and an Act approved
May 5, 2006 (Ga. L. 2006, p. 4392), is amended by deleting the provisions
contained in said amendatory Acts and inserting in lieu thereof the
following:
"ARTICLE
I
Definitions.
Definitions.
As
used in this plan, the following words and phrases shall have the meanings set
forth herein unless a different meaning is clearly required by the
context:
1.1
'Accrued benefit' means, at any time, the amount a member is entitled to receive
pursuant to Section 5.2 of the plan. In no event shall the accrued benefit as
of any accrual date subsequent to this amendment be less than the accrued
benefit as of the adoption date of this amendment.
1.2.
'Actuarial equivalent' means a form of benefit differing in time, period, or
manner of payment from a specific benefit provided under the plan but having the
same value when computed using generally accepted actuarial principles. All
alternate forms of distribution shall be actuarially equivalent to the normal
annuity form of distribution at the normal retirement date. Effective April 1,
2010, the conversion to an alternate form shall be based upon the 1983 Group
Annuity Mortality Table assuming the member is a male and an interest rate of 5
percent. Prior to April 1, 2010, the conversion to an alternate form shall be
based upon the UP-1984 Mortality Table and an interest rate of 7.75 percent;
provided, however, that the pension board may prospectively change the basis for
actuarial equivalent to a different mortality table and interest rate basis.
Any such change shall be in writing, shall only take effect when recommended by
the plan's actuary and then approved by the pension board, and shall be
incorporated into the plan by reference to this section.
1.3
'Administrator' means the authority unless another person or entity has been
designated by the authority pursuant to Section 2.2 of the plan to administer
the plan.
1.4
'Age' means age at last birthday.
1.5
'Anniversary date' means October 1.
1.6
'Annuity starting date' means, with respect to any member, the first day of the
first period for which an amount is paid as an annuity, or, in the case of a
benefit not payable in the form of an annuity, the first day on which all events
have occurred which entitles the member to such benefit.
1.7
'Authority' and 'Macon Water Authority' means the legal entity created by an Act
approved March 2, 1966 (Ga. L. 1966, p. 2737), as amended, particularly by an
Act approved March 23, 1992 (Ga. L. 1992, p. 4991).
1.8
'Authorized leave of absence' means an unpaid, temporary cessation from active
employment with the employer pursuant to an established nondiscriminatory
policy, whether occasioned by illness, military service, or any other
reason.
1.9
'Beneficiary' means the person or entity to whom all or a portion of a deceased
member's interest in the plan is payable.
1.10
'Code' means the federal Internal Revenue Code of 1986, as amended.
1.11
'Compensation' means a member's total wages for federal income tax withholding
purposes, as defined under Code Section 3401(a), but excluding any bonuses
payable to such member. Such term shall include all other payments to an
employee in the course of the employer's trade or business for which the
employer must furnish the employee a written statement under Code Sections 6041,
6051, and 6052 ('W-2 Wages'), but determined without regard to any rules that
limit the remuneration included in wages based on the nature or location of the
employment or services performed. Compensation shall include elective
contributions that are made by the employer on behalf of a member that are not
includible in gross income under Code Section 125, 132(f)(4), 402(e)(3),
402(h)(1)(B), 403(b), 408(p), or 457(b) and shall include amounts included in
the employee's gross income under Code Section 402A and contributed by the
employer, at the employee's election, to a cafeteria plan, a qualified
transportation fringe benefit plan, a 401(k) plan, a Salary Reduction Simplified
Employee Pension Plan (SARSEP), a tax-sheltered annuity, a Savings Incentive
Match Plan for Employees (SIMPLE), or a Code 457(b) plan. Employee contributions
'picked up' by the authority and treated as employer contributions pursuant to
Code Section 414(h)(2) shall also be considered as compensation. The annual
compensation of each member taken into account in determining benefit accruals
in any plan year beginning after December 31, 2001, shall not exceed $200,000.00
or such other amount as approved by the United States Secretary of the Treasury
from time to time. Compensation for any employee who becomes eligible or ceases
to be eligible to participate during a determination period shall only include
compensation while the employee is an eligible employee. If, in connection with
the adoption of any amendment, the definition of 'compensation' has been
modified, then, except as otherwise provided by the plan, for plan years prior
to the plan year which includes the adoption date of such amendment,
'compensation' means compensation determined pursuant to the terms of the plan
then in effect.
1.12
'Credited service' means a member's period of service for purposes of
determining the amount of any benefit for which the member is eligible under the
plan and is defined as years of service.
1.13
'Earliest retirement age' means the earliest attained age for which, under the
plan, a member could elect to receive retirement benefits.
1.14
'Early retirement date' means the first of any month following earliest
retirement age and before normal retirement age as provided in Section 5.3 of
the plan.
1.15
'Effective date' means October 1, 2010, except to the extent that provisions are
required to apply to an earlier date or are required to apply to any other
members in order to comply with applicable law or the terms of the plan. The
original effective date of the plan was December 30, 1953. 'Date of enactment'
is July 1, 2012. Plan changes in paragraphs (1.14), (1.21), and (1.31) of this
section, Section 4.1, and the minimum benefit under Section 5.2 of the plan take
effect on July 1, 2012.
1.16
'Eligible employee' means all employees and officers of the authority, except
for:
(A)
Elected members of the authority and the attorney-at-law for the
authority;
(B)
All casual or temporary employees and contractors and their employees, whose
work with the authority is casual, temporary, or by the job or contract;
and
(C)
All officers and employees whose employment with the authority is part time and
the majority of whose income is not derived from employment with the authority;
the authority is vested with full authority to solely and exclusively judge and
determine the application of this coverage exception; provided, however, that no
officer or employee first or again employed on or after July 1, 2012, shall be
eligible for membership in the plan.
1.17
'Employee' means any person who is employed by the employer.
1.18
'Employer' means the Macon Water Authority.
1.19
'Family member' means, with respect to an affected member, such member's spouse
and such member's lineal descendants and ascendants and their spouses, all as
described in Code Section 414(q)(6)(B).
1.20
'Fiduciary' means any person who:
(A)
Exercises any discretionary authority or discretionary control respecting
management of the plan or exercises any authority or control respecting
management or disposition of its assets;
(B)
Renders investment advice for a fee or other compensation, direct or indirect,
with respect to any moneys or other property of the plan or has any authority or
responsibility to do so; or
(C)
Has any discretionary authority or discretionary responsibility in the
administration of the plan.
1.21(A)
'Final average monthly compensation' means the total compensation of a member
received from the authority during the last three years of service with the
authority, divided by 36; provided, however, that in the event of prolonged
illness or other justifying cause suffered by the member, such condition to be
judged solely by the authority, the authority may compute a member's final
average monthly compensation by using the three years most productive of
compensation from the authority, and divide such total by 36.
(B)
Notwithstanding the provisions of subparagraph (A) of this paragraph, effective
December 31, 2012, 'final average monthly compensation' means the greater
of:
(i)
The total compensation of a member received from the authority during the four
consecutive calendar years that produce the highest average out of the last 15
calendar years, divided by 48; or
(ii)
The final average monthly compensation determined under subparagraph (A) of this
paragraph.
1.22
'Forfeiture' means that portion of a member's accrued benefit that is not vested
and is disposed of in accordance with the provisions of the plan. A forfeiture
will occur on the earlier of:
(A)
The last day of a one-year break in service;
(B)
The distribution of the entire vested portion of the member's accrued benefit of
a former member who severed employment with the employer. For purposes of this
subparagraph, if the former member has a vested benefit of zero, then such
former member shall be deemed to have received a distribution of such vested
benefit as of the year in which the severance of employment occurs;
or
(C)
The distribution of the entire balance of a member's employee contributions,
plus interest.
1.23
'Former member' means a person who has been a member, but who has ceased to be a
member for any reason and has incurred a one-year break in service.
1.24
'Hour of service' means an hour of service with the authority.
1.25
'Investment manager' means a fiduciary as described in Code Section
3(38).
1.26
'Joint and survivor annuity' means an annuity for the life of a member with a
survivor annuity for the life of the member's beneficiary which is not less than
50 percent nor greater than 100 percent of the amount of the annuity payable
during the joint lives of the member and the member's beneficiary. The joint and
survivor annuity shall be the actuarial equivalent of the member's present value
of vested accrued benefit.
1.27
'Late retirement date' means the first day of the month coinciding with or next
following a member's actual retirement after having reached the normal
retirement date.
1.28
'Limitation year' means the plan year.
1.29
'Member' means any eligible employee who has satisfied the requirements of
Section 3.2 of the plan and has not for any reason become ineligible to
participate further in the plan.
1.30
'Maternity or paternity leave of absence' means an absence from work for any
period by reason of the employee's pregnancy, birth of the employee's child,
placement of a child with the employee in connection with the adoption of such
child, or any absence for the purpose of caring for such child for a period
immediately following such birth or placement.
1.31
'Normal retirement age' means age 63.
1.32
'Normal retirement date' means the first day of the month immediately next
following the date on which the member reached normal retirement
age.
1.33
'One-year break in service' means a period of severance of 12 consecutive
months; provided, however, that in the case of an employee who is absent from
work with the authority for maternity or paternity reasons, the 12 consecutive
month period beginning on the first anniversary of the first date the employee
is otherwise absent from service with the authority does not constitute a
one-year break in service.
1.34
'Permanently and totally disabled' means that a member has been determined to be
disabled within the meaning of the federal Social Security Act and regulations
thereunder and is actually drawing Social Security benefits on account of such
disability.
1.35
'Plan' means the Macon Water Authority employees' pension plan created by this
Act, any and all supporting documents, and all subsequent amendments and
supplements thereto.
1.36
'Plan year' means the plan's 12 consecutive month accounting year, beginning on
January 1 and ending the following December 31.
1.37
'Present value of accrued benefit' means the actuarial equivalent lump-sum
amount of a member's accrued benefit at date of valuation.
1.38
'Regulation' means the income tax regulations as promulgated by the United
States Secretary of the Treasury or his or her delegate, as amended from time to
time.
1.39
'Retired member' means a member who has become entitled to retirement benefits
under the plan.
1.40
'Retirement date' means the date as of which a member retires whether such
retirement occurs on a member's normal retirement date, early retirement date,
or late retirement date.
1.41
'Sponsor' means the Macon Water Authority and any successor thereto that elects
to assume sponsorship of this plan.
1.42
'Spouse' means the spouse of a married member, provided that a former spouse
shall be treated as a spouse or surviving spouse to the extent provided under a
qualified domestic relations order as described in Code Section
414(p).
1.43
'Straight life annuity' means an annuity payable in equal installments for the
life of a member that terminates upon the member's death.
1.44
'Terminated member' means a person who has been a member, but whose employment
has been terminated other than by death or retirement.
1.45
'Trustee' means the person, corporation, association, or combination of them who
accepts the appointment to execute the duties of the trustee as specifically set
forth in any trust agreement entered into pursuant to the plan.
1.46
'Trust fund' means the assets of the plan and trust as the same shall exist from
time to time.
1.47
'Vested' means the nonforfeitable portion of a member's accrued
benefit.
1.48
'Year of service' means the computation period of 12 consecutive months during
which an employee is employed by the authority. In computing fractional years
of service, six or more service months shall be considered a year of service.
No period during which benefits are being paid shall be considered service or
any portion of a year of service. The computation period shall begin with the
date on which the employee first performs an hour of service (employment
commencement date). Subsequent computation periods shall continue to end on
subsequent anniversary dates of the employee's employment commencement
date.
ARTICLE
II
Administration.
Administration.
2.1.
POWERS AND RESPONSIBILITIES OF THE AUTHORITY.
(a)
In addition to the general powers and responsibilities otherwise provided for in
this plan, the authority shall be empowered to appoint and remove the trustee
and the administrator from time to time as it deems necessary for the proper
administration of the plan to ensure that the plan is being operated for the
exclusive benefit of the members and their beneficiaries in accordance with the
terms of the plan and the Code. The authority may appoint counsel, specialists,
advisers, agents, including any nonfiduciary agent, and other persons as the
authority deems necessary or desirable in connection with the exercise of its
fiduciary duties under this plan. The authority may compensate such agents or
advisers from the assets of the plan as fiduciary expenses, but not including
any business or settlor expenses of the employer, to the extent not paid by the
employer.
(b)
The authority may, by written agreement or designation, appoint at its option an
investment manager, qualified under the federal Investment Company Act of 1940,
as amended, an investment adviser, or other agent to provide direction to the
trustee with respect to any or all of the plan assets. Such appointment shall
be given by the authority in writing in a form acceptable to the trustee and
shall specifically identify the plan assets with respect to which the investment
manager or other agent shall have the authority to direct the
investment.
(c)
The authority may invest all or any part of the trust fund:
(1)
As provided by the then effective laws of Georgia for investments by trustees or
investments by guardians without court order or proceedings;
(2)
As provided by the then effective laws of Georgia for investments by trustees or
investments by guardians with court order or proceedings; and
(3)
Without court order and without authority or permission of any kind, other than
as provided in the plan, in stocks, bonds, and securities then approved as
investments of common trust funds by an active trust department of any state or
national bank having a place of business in the State of Georgia.
(d)
The authority may at any time, and from time to time and subject to immediate
revocation, delegate the powers of investment, or any portion thereof, provided
for in subsection (c) of this section to a custodian of the trust fund; but no
investment by a custodian other than as provided by the then effective laws of
the State of Georgia for investments by trustees or guardians without court
order shall be made except upon written approval of each specific investment by
the authority or by the member of the authority designated for the purpose of
supervising such investments.
2.2.
DESIGNATION OF ADMINISTRATIVE AUTHORITY.
The
authority shall be the administrator. The authority may appoint a committee, to
be known as the pension committee, composed of six members. The pension
committee shall perform the duties of the administrator in accordance with the
rules and regulations as may be prescribed by the authority. The authority
shall elect three of its members to the pension committee who shall serve at the
pleasure of the authority. The official and employee members of the plan shall
elect and certify to the authority three members who shall serve on the pension
committee for terms of four years and until their successors are elected. The
members of the plan shall meet on the first Monday in April beginning in 1994
and each two years thereafter for the purpose of electing the employee members
of the pension committee. The members of the plan shall also meet to elect any
new member required to fill any unexpired term created by a vacancy in office.
In the event of an equal division of opinion of the pension committee on any
matter properly brought before it, the Chief Judge of the Macon Judicial
Circuit, or his or her designee, shall be consulted and shall cast the deciding
vote.
2.3.
ALLOCATION AND DELEGATION OF RESPONSIBILITIES.
The
responsibilities of the pension committee may be specified by the authority and
accepted in writing by each elected member. In the event that no such
delegation is made by the authority, the pension committee may allocate the
responsibilities among themselves, in which event the pension committee shall
notify the authority and the trustee in writing of such action and specify the
responsibilities of each member of the pension committee. The trustee
thereafter shall accept and rely upon any documents executed by the appropriate
member until such time as the authority or the pension committee file with the
trustee a written revocation of such designation.
2.4.
POWERS AND DUTIES OF THE ADMINISTRATOR.
The
primary responsibility of the administrator is to administer the plan for the
exclusive benefit of the members and their beneficiaries, subject to the
specific terms of the plan. The administrator shall administer the plan in
accordance with its terms and shall have the power and discretion to construe
the terms of the plan and determine all questions arising in connection with the
administration, interpretation, and application of the plan. Any such
determination by the administrator shall be conclusive and binding upon all
persons. The administrator may establish procedures, correct any defect, supply
any information, or reconcile any inconsistency in such manner and to such
extent as shall be deemed necessary or advisable to carry out the purpose of the
plan; provided, however, that any procedure, discretionary act, interpretation,
or construction shall be done in a nondiscriminatory manner based upon uniform
principles consistently applied, shall be consistent with the intent that the
plan continue to be deemed a qualified plan under the terms of Code Section
401(a), and shall comply with the terms of the plan and all regulations issued
pursuant thereto. The administrator shall have all powers necessary or
appropriate to accomplish its duties under the plan. The administrator shall be
charged with the duties of the general administration of the plan as set forth
under the terms of the plan, including, but not limited to, the
following:
(1)
The discretion to determine all questions relating to the eligibility of an
employee to participate or remain a member and to receive benefits under the
plan;
(2)
The authority to review and settle all claims against the plan, including claims
where the settlement amount cannot be calculated or is not calculated in
accordance with the plan's benefit formula. This authority specifically permits
the administrator to settle disputed claims for benefits and any other disputed
claims made against the plan;
(3)
To compute, certify, and direct the trustee with respect to the amount and the
kind of benefits to which any member shall be entitled under the
plan;
(4)
To authorize and direct the trustee with respect to all discretionary or
otherwise directed disbursements from the trust fund;
(5)
To maintain all necessary records for the administration of the
plan;
(6)
To interpret the provisions of the plan and to make and publish such rules for
regulation of the plan that are consistent with the terms of the
plan;
(7)
To determine the validity of, and take appropriate action with respect to, any
qualified domestic relations order received by it; and
(8)
To adopt a new set of actuarial equivalent factors by resolution, which shall be
incorporated into the plan by reference.
2.5.
RECORDS AND REPORTS.
The
administrator shall keep a record of all actions taken and shall keep all other
books of account, records, and other data that may be necessary for proper
administration of the plan and shall be responsible for supplying all
information and reports to the federal Internal Revenue Service, members,
beneficiaries, and others as required by law.
2.6.
APPOINTMENT OF ADVISERS.
The
administrator, or the trustee with the consent of the administrator, may appoint
counsel, actuaries, specialists, advisers, agents (including nonfiduciary
agents), and other persons as the administrator or the trustee deems necessary
or desirable in connection with the administration of the plan, including, but
not limited to, agents and advisers to assist with the administration and
management of the plan, and by so doing to provide, among such other duties as
the administrator may appoint, assistance with maintaining plan records and the
providing of investment information to the plan's investment fiduciaries and to
plan members.
2.7.
INFORMATION FROM THE AUTHORITY.
The
authority shall supply full and timely information to the administrator on all
pertinent facts as the administrator may require in order to perform its
function, and the administrator shall advise the trustee of such of the
foregoing facts as may be pertinent to the trustee's duties under the plan. The
administrator may rely upon such information as is supplied by the employer and
shall have no duty or responsibility to verify such information.
2.8.
PAYMENT OF EXPENSES.
All
reasonable expenses of administration may be paid out of the plan assets unless
paid by the employer. Such expenses shall include any expenses incident to the
functioning of the administrator or any person or persons retained or appointed
by any named fiduciary incident to the exercise of their duties under the plan,
including, but not limited to, fees of accountants, actuaries, counsel,
investment managers, agents (including nonfiduciary agents) appointed for the
purpose of assisting the administrator or the trustee in carrying out the
instructions of members as to the directed investment of their accounts, if
permitted, and other specialists and their agents, and other costs of
administering the plan. Until paid, the expenses shall constitute a liability
of the trust fund. In addition, unless specifically prohibited under statute,
regulation, or other guidance of general applicability, the administrator may
charge to the account of an individual member a reasonable charge to offset the
cost of making a distribution to the member, beneficiary, or alternate payee
under a qualified domestic relation order, as defined in Code Section 414(p).
If liquid assets of the plan are insufficient to cover the fees of the trustee
or the plan administrator, then plan assets shall be liquidated to the extent
necessary for such fees. In the event any part of the plan assets becomes
subject to tax, all taxes incurred will be paid from the plan assets. Until
paid, the expenses shall constitute a liability of the trust fund.
ARTICLE
III
Eligibility.
Eligibility.
3.1
CONDITIONS OF ELIGIBILITY.
Any
eligible employee shall be eligible to participate in this plan as of such
eligible employee's employment commencement date.
3.2
EFFECTIVE DATE OF PARTICIPATION.
An
eligible employee shall become a member effective as of such eligible employee's
employment commencement date.
3.3
DETERMINATION OF ELIGIBILITY.
The
administrator shall determine the eligibility of each employee for participation
in the plan based upon information furnished by the employer. Such
determination shall be conclusive and binding upon all persons so long as the
same is made pursuant to the plan.
3.4
TERMINATION OF ELIGIBILITY.
In
the event a member shall go from a classification of an eligible employee to an
ineligible employee, such former member shall continue to vest in the plan for
each year of service completed while an ineligible employee until such time as
the member's accrued benefit is forfeited or distributed pursuant to the terms
of the plan.
3.5
REHIRED EMPLOYEES AND BREAKS IN SERVICE.
(a)
Any member who becomes a former member due to severance from employment with the
authority and who is reemployed by the authority shall become a member as of the
member's reemployment date, provided such individual is not an ineligible
employee as of the member's reemployment date.
(b)
If any member becomes a former member due to severance from employment with the
employer and is reemployed after a one-year break in service has occurred, years
of service shall include years of service prior to the one-year break in service
subject to the following provisions:
(1)
The former member's employee contributions, with applicable interest, shall have
remained in the plan;
(2)
The former member has received no benefit under this plan for the prior service;
and
(3)
A former member who has not had years of service before a one-year break in
service disregarded pursuant to paragraph (1) of this subsection shall
participate in the plan as of the date of reemployment.
(c)
A former member who has received a distribution which is equal to any portion of
his or her accrued benefit under the plan shall not have those years of credited
service for which the distribution applied restored upon reemployment with the
authority. For purposes of this subsection, if the member's vested portion of
the present value of accrued benefit is zero, then the member shall be deemed to
have received a distribution of such vested portion.
ARTICLE
IV
Contribution and valuation.
Contribution and valuation.
4.1
PAYMENT OF EMPLOYEE CONTRIBUTIONS.
(a)
Effective July 1, 2004, each member shall contribute 6.20 percent of
compensation received from the authority. Prior to July 1, 2004, each member
contributed 4.61 percent of compensation received from the authority from
December 30, 1953, until the member's termination of employment.
(b)
Effective July 1, 2002, the authority shall credit each member with simple
interest on the member's required employee contributions equal to 75 percent of
the actuarial equivalent interest rate per calendar year. Prior to July 1,
2002, the authority credited each member with simple interest on the member's
required employee contributions equal to 6.00 percent per calendar
year.
(c)
The amount of the employee contributions provided for in this section to be paid
by each member shall be deducted and withheld by the authority as an after-tax
employee contribution, unless the employer chooses to implement a government
pick-up provision that:
(1)
Specifies that the contributions, although designated as employee contributions,
are being paid by the authority in lieu of employee contributions; such action
shall be applied prospectively and be evidenced by either resolution or minutes
of a meeting of the authority for such action; or
(2)
Does not permit a member from and after the date of the pick-up to have a cash
or deferred election right, within the meaning of Treas. Reg. 1.401(k)-1(a)(3),
with respect to designated employee contributions; members may not opt out of
the pick-up or elect to receive the contributed amounts directly instead of
having them paid by the authority to the plan.
4.2
PAYMENT OF EMPLOYER CONTRIBUTIONS.
The
authority shall pay to the plan from time to time such amounts in cash as the
administrator and employer shall determine to be necessary to provide the
benefits under the plan determined by the application of accepted actuarial
methods and assumptions. The authority will contribute the greater of (1) an
amount equal to the total member contributions for the fiscal year, less, at the
discretion of the authority, any forfeitures, or (2) the amount required to meet
the funding requirements of Chapter 20 of Title 47 of the O.C.G.A., the 'Public
Retirement Systems Standards Law.' The method of funding shall be consistent
with plan objectives; provided, however, that the employer may pay such
contributions as appropriate directly to the trustee, and such payment shall be
deemed a contribution to the plan. The amounts paid pursuant to this section
shall be paid from the general funds of the authority and shall be treated as a
personnel expense.
4.3
ACTUARIAL METHODS.
In
establishing the liabilities under the plan and contributions to the plan, the
plan's actuary will use such methods and assumptions as will reasonably reflect
the cost of the benefits. The plan assets are to be valued on the basis of any
reasonable method of valuation that takes into account fair market value
pursuant to regulations. There must be an actuarial valuation of the plan as
frequently as required by law.
4.4
QUALIFIED MILITARY SERVICE.
(a)
Notwithstanding any provisions of this plan to the contrary, contributions,
benefits, and service credit for qualified military service will be provided in
accordance with Code Section 414(u).
(b)
In the case of a death occurring on or after January 1, 2007, if a participant
dies while performing qualified military service, as defined in Code Section
414(u), the participant's beneficiary is entitled to any additional benefits
other than benefit accruals relating to the period of qualified military service
provided under the plan as if the participant had resumed employment and then
terminated employment on account of death. The plan shall credit the
participant's qualified military service as service for vesting purposes, as
though the participant had resumed employment under the federal Uniformed
Services Employment and Reemployment Rights Act ('USERRA') immediately prior to
the participant's death.
(c)
For years beginning after December 31, 2008:
(1)
An individual receiving a differential wage payment, as defined by Code Section
3401(h)(2), is treated as an employee of the employer making the
payment;
(2)
The differential wage payment is treated as compensation for purposes of Code
Section 415(c)(3) and Treasury Reg. 1.415(c)-2; and
(3)
The plan is not treated as failing to meet the requirements of any provision
described in Code Section 414(u)(1)(C) or corresponding plan provisions by
reason of any contribution or benefit which is based on the differential wage
payment. Differential wage payments as described in this subsection shall also
be considered compensation for all plan purposes.
(d)
Subsection (c) of this section shall apply only if all employees of the
authority performing service in the uniformed services described in Code Section
3401(h)(2)(A) are entitled to receive differential wage payments, as such term
is defined in Code Section 3401(h)(2), on reasonably equivalent terms and, if
eligible to participate in a retirement plan maintained by the authority, to
make contributions or receive benefits based on the payments on reasonably
equivalent terms, taking into account Code Sections 410(b)(3), (4), and
(5).
ARTICLE
V
Benefits.
Benefits.
5.1
NORMAL FORM OF BENEFIT.
(a)
The retirement benefit to be provided for each member who retires on the normal
retirement date shall be equal to the member's accrued benefit.
(b)
The 'normal retirement benefit' payable to a retired member pursuant to this
section shall be a straight life annuity which shall be defined as the normal
form of benefit. The actual form of distribution of such benefit, however,
shall be determined pursuant to the provisions of Section 5.10 of the
plan.
5.2
NORMAL RETIREMENT BENEFITS.
A
member's normal retirement benefit shall be a monthly pension payable in the
normal form of benefit and commencing on a member's normal retirement date in an
amount equal to the product of the member's final average monthly compensation
multiplied by the member's years of service as of the date of determination and,
effective July 1, 2004, multiplied by the percentage set forth in the following
table, based on the member's years of service as of the date of
determination:
|
Years
of Service
|
Percentage
|
|
1-30
|
2.000%
|
|
2.025%
|
|
2.050%
|
|
2.075%
|
|
2.100%
|
|
2.125%
|
|
2.150%
|
|
2.175%
|
|
2.200%
|
|
2.225%
|
|
40 or more
|
2.250%
|
With
respect to retirement benefits initiated prior to July 1, 2004, the table was
equal to:
|
Years
of Service
|
Percentage
|
|
1-30
|
1.750%
|
|
1.775%
|
|
1.800%
|
|
1.825%
|
|
1.850%
|
|
1.875%
|
|
1.900%
|
|
1.925%
|
|
1.950%
|
|
1.975%
|
|
40 or more
|
2.000%
|
In
the event the member's normal retirement benefit does not equal at least $20.00
multiplied by the number of years of service up to a maximum of ten years, then
the member's normal retirement benefit shall be the product of $20.00 multiplied
by the number of years of service up to a maximum of $200.00. In no event shall
a member's accrued benefit be less than his or her accrued benefit determined as
of the date of enactment based on the plan provisions in effect on that
date.
5.3
EARLY RETIREMENT BENEFITS.
(a)
Upon reaching 55 years of age, and prior to attaining normal retirement age, any
member who has 15 or more years of service may retire, at his or her option, and
shall receive benefits actuarially equivalent to his or her accrued
benefit.
(b)
Any member, before attaining normal retirement age, who has 25 or more years of
service may retire, at his or her option, and shall receive benefits actuarially
equivalent to his or her accrued benefit.
(c)
Upon reaching 55 years of age, and prior to attaining normal retirement age, any
member who has 30 or more years of service may retire, at his or her option, and
shall receive benefits, without actuarial reduction, to which he or she would
have been entitled under the plan as if he or she had retired on his or her
normal retirement date.
5.4
LATE RETIREMENT BENEFITS.
A
member may continue in the employ of the authority following a member's normal
retirement date. In such event, no retirement benefit will be paid to the
member until the member actually retires, subject to any required minimum
distribution payments. At the member's late retirement date, the affected
member's late retirement benefit shall be the member's accrued benefit based on
credited service and final average monthly compensation determined as of the
member's late retirement date.
5.5
DISABILITY RETIREMENT BENEFITS.
(a)(1)
If a member becomes permanently and totally disabled after five continuous years
of service, he or she shall be 100 percent vested and shall be entitled to
receive a monthly disability retirement benefit equal to 1.750 percent of the
member's final average monthly compensation multiplied by the member's number of
years of service as of the date of disability determination; provided, however,
that a member's monthly disability retirement benefit shall in no event be less
than $20.00 per month for each year of continuous service.
(2)
If a member becomes permanently and totally disabled after earning at least 30
years of service, the member shall be entitled to benefits calculated in
accordance with Section 5.2 of the plan without actuarial reduction for early
commencement of benefits.
(b)
A member who becomes permanently and totally disabled as a result of accidental,
violent, and external causes suffered in the line of duty and in the performance
of duty shall be entitled to a monthly disability retirement benefit equal to
two-thirds of the member's final average monthly compensation without actuarial
reduction for early commencement of benefits.
(c)
The determination of disability shall be applied uniformly to all participants.
In the event that the federal Social Security Administration determines that a
member is no longer permanently and totally disabled and such member is no
longer drawing Social Security benefits pursuant to the federal Social Security
Act, the authority may order that the member return to active service with the
authority and that the member's retirement benefit payments be discontinued
during the period of such active employment with the authority. In the event
the member so ordered by the authority to return to active employment with the
authority fails or refuses to do so within 30 days of written notice, the
member's right to disability retirement benefits pursuant to this section shall
cease. In the event such member shall return to active employment with the
authority as ordered by the authority, such member shall resume payment of
employee contributions then required by the plan and shall likewise be entitled
to further service credit during the time the member remains in the active
employment of the authority. Such member shall not be entitled to other
retirement benefits of the plan except by relinquishment of any and all rights
to any disability retirement benefits.
(d)
No disability payment pursuant to this section shall be paid if:
(1)
It is found that the member's disability was caused by the member's willful
misconduct, a self-inflicted injury, or a member's attempt unlawfully to insure
another or to commit or attempt to commit a felony under the laws of the State
of Georgia or of the United States;
(2)
The disability from external causes was suffered in the line of duty and in
performance of duty for the period for which the member receives payment or for
the period computed in a lump sum payment under Chapter 9 of Title 34 of the
O.C.G.A., relating to workers compensation; or
(3)
The member is receiving remuneration as an officer or employee of the
authority.
5.6
DEATH BENEFITS.
(a)
Any death benefit paid by the plan on behalf of a member shall be made to the
member's surviving spouse, or if there is no surviving spouse, to the member's
beneficiary, or if there is no beneficiary, to the member's surviving heirs at
law.
(b)
In the event a member dies prior to retirement, the member's death benefit
recipient shall receive a death benefit equal to the member's cumulative
employee contributions plus simple interest credited to the member's
contributions annually at the rate of 75 percent of the actuarial interest
credit in effect during the member's time of service as specified in Section 4.1
of the plan. Such interest credit shall be calculated on employee contributions
made by the member through the December 31 coincident with or immediately
preceding the member's date of death.
(c)
In the event a member is killed by accidental, violent, and external causes
sustained in the line of duty and the active performance of duty, then the
member's death benefit recipient shall receive a death benefit as described in
subsection (b) of this section, plus an additional death benefit equal to
$100.00 multiplied by the member's years of service, up to a maximum additional
death benefit of $500.00.
(d)
In the event an actively employed married member dies prior to actual
retirement, but has met the age or service requirements for early retirement or
normal retirement prescribed in Section 5.2 or Section 5.3 of the plan, the
member's surviving spouse shall be entitled to a monthly benefit equal to 50
percent of the benefit payable to the member as of the first day of the month
next following the member's date of death, assuming the member had elected to
retire as of the member's date of death and elected a joint and 50 percent
survivor annuity option.
(e)
In the event a pensioned member who is receiving retirement benefits pursuant to
this article of the plan in a form other than as a joint and survivor annuity or
any other optional form of benefit that does not require the designation of a
beneficiary dies prior to receiving pension benefits in an amount equal to the
death benefit provided in subsection (b) of this section (the amount of interest
to be calculated and credited, however, to the date of the member's retirement,
only for purposes of this subsection), the difference remaining shall be paid to
the member's death benefit recipient as otherwise provided in this
section.
(f)
In the event a pensioned member who is receiving retirement benefits pursuant to
this article of the plan as a joint and survivor annuity or any other optional
form of benefit that requires the designation of a beneficiary, and such member
and the member's beneficiary die prior to receiving combined total pension
benefits in an amount equal to the death benefit provided in subsection (b) of
this section (the amount of interest to be calculated and credited, however, to
the date of the member's retirement, only for purposes of this subsection), the
difference remaining shall be paid to the member's death benefit recipient as
otherwise provided in this section.
(g)
The administrator may require such proper proof of death and such evidence of
the right of any person to receive the death benefit payable as a result of the
death of a member as the administrator may deem desirable. The administrator's
determination of death and the right of any person to receive payment shall be
conclusive.
(h)
Notwithstanding anything in this section to the contrary, if a member has
designated the spouse as a beneficiary, then a divorce decree or a legal
separation that relates to such spouse shall revoke the member's designation of
the spouse as a beneficiary unless the decree or a qualified domestic relations
order within the meaning of Code Section 414(p) provides otherwise.
5.7
TERMINATION OF EMPLOYMENT BEFORE RETIREMENT.
(a)(1)
In the event a member terminates service with the authority, or in the event the
member's service is terminated for any reason other than death or cause for
which the member receives benefit payments elsewhere under the plan, the member
may elect to receive a severance benefit equal to the member's cumulative
employee contributions, plus simple interest credited to the member's
contributions annually at the rate of 75 percent of the actuarial interest
credit in effect during the member's time of service as specified in Section 4.1
of the plan. Such interest credit shall be calculated on employee contributions
made by the member through the December 31 coincident with or immediately
preceding the member's termination of service. Such payment is in lieu of all
other benefits provided under the plan, and shall be the exclusive benefit
provided to a member who elects to take his or her severance
benefit.
(2)
Within a reasonable time period following a member's termination of service, a
terminated member shall be notified in writing by certified mail, return receipt
requested, of his or her option to forego the severance benefit described in
paragraph (1) of this subsection and leave the member's employee contributions
in the plan's trust so as to avoid the forfeiture of the member's accrued
benefit related to employer contributions. The terminated member shall be
afforded a 12 month period, measured from the date of the member's termination
of service, in which to make such election. In the absence of an election by
the terminated member, at the expiration of such 12 month period, the authority
shall cause the trustee to distribute such severance benefit to the member as
soon as administratively practicable.
(b)
At the election of the terminated member, a member shall be entitled to receive
actuarially reduced benefits prior to normal retirement age pursuant to this
section, on or after the date the member would have become eligible for early
retirement.
(c)
Payment to a terminated member of the vested portion of the accrued benefit who
has not received a benefit under subsection (a) of this section or commenced the
receipt of a benefit under this section, unless the terminated member otherwise
elects, shall begin not later than the sixtieth day after the close of the plan
year in which the later of the following events occurs: (1) the date on which
the member attains normal retirement age; or (2) the date the member terminates
service with the employer.
(d)
A member shall always be 100 percent vested in his or her own employee
contributions. The vested portion of any member's accrued benefit shall be a
percentage of such member's accrued benefit determined on the basis of the
member's number of years of service according to the following vesting
schedule:
|
Years
of Service
|
Vesting
Percentage
|
|
Less
than five years
|
0.000%
|
|
Five
years or more
|
100.000%
|
If
the member's vested portion of the present value of accrued benefit is zero,
then the deemed cashout rule will apply and the member shall be deemed to have
received a distribution of such vested portion; provided, however, that a
member's entire interest in the plan shall be nonforfeitable upon the member's
normal retirement age if the member is an active employee employed by the
employer on or after such date.
(e)
Notwithstanding the provisions of subsection (d) of this section, the vested
percentage of a member's accrued benefit shall not be less than the vested
percentage attained as of the later of the effective date or adoption date of
this amendment. The computation of a member's nonforfeitable percentage of such
member's interest in the plan shall not be reduced as the result of any direct
or indirect amendment to this article. If the plan's vesting schedule is
amended, then the amended schedule shall apply to those members who complete an
hour of service after the effective date of the amendment.
(f)
If the plan's vesting schedule is amended, or if the plan is amended in any way
that directly or indirectly affects the computation of the member's
nonforfeitable percentage, then each member with at least three years of service
as of the expiration date of the election period may elect to have such member's
nonforfeitable percentage computed under the plan without regard to such
amendment or change. If a member fails to make such election, then such member
shall be subject to the new vesting schedule. The member's election period
shall commence on the adoption date of the amendment and shall end 60 days after
the latest of: (1) the adoption date of the amendment, (2) the effective date of
the amendment, or (3) the date the member receives written notice of the
amendment from the employer or administrator.
5.8
BENEFIT REDUCTIONS FOR PRIOR PAYMENTS.
Notwithstanding
the provisions of Section 5.7 of the plan, a member's benefit payable under the
plan shall be reduced to reflect prior payments under the plan. At the time a
member who has received previous payments from the plan is eligible to receive
additional benefits, benefit payments shall resume and shall be equal to his or
her recomputed benefit, reduced actuarially to reflect any benefits previously
received, including total benefit distributions and deemed total benefit
distributions; provided, however, that in no event shall a recomputation of a
member's benefit cause him or her to receive less in the way of monthly payments
than what he or she was previously receiving reduced by the actuarial equivalent
of any total benefit distributions, if any, paid after his or her previous
retirement payments ceased.
5.9
COST OF LIVING ADJUSTMENTS TO RETIREMENT BENEFITS.
The
following cost of living increases have been implemented for the benefit of
members and their beneficiaries:
(1)
Effective January 2, 1992, the monthly benefit of every member who was retired
and receiving benefits prior to July 1, 1986, shall be increased by 5 percent on
a one-time basis. This one-time increase in benefits shall also be applicable
to any beneficiary if that beneficiary's member was retired and receiving
benefits prior to July 1, 1986;
(2)
The monthly benefit of every member who was retired and receiving benefits prior
to March 28, 1988, but after June 30, 1986, and of every beneficiary of such
member shall be increased by 5 percent; such increase shall be paid on benefits
received on and after April 1, 1994; and
(3)
The monthly benefit of every member who is retired and receiving benefits and of
every beneficiary of such member shall be increased every five years by 2
percent, retroactive to April 1, 1994; this cost of living adjustment shall be
effective as of October 1, 2004.
5.10
DISTRIBUTION OF BENEFITS.
(a)
Election.
A member shall be entitled to elect, or revoke a previous election and make a
new election, at any time six months or more prior to the member's retirement,
or prior to commencement of benefit payments, to have his or her retirement
benefit payment payable under one of the options set forth in this section in
lieu of the normal form of benefit payment. A member's election of any optional
form of benefit shall be made by the member in writing and shall be subject to
approval, on a nondiscriminatory basis, by the authority. Any optional form of
benefit thus elected shall be paid in accordance with the terms of such option.
A member who retires as a result of being totally and permanently disabled shall
be entitled to receive the member's retirement benefit as a life annuity or as a
reduced joint and survivor annuity.
(b)
Optional forms
of benefit. The amount of any optional
form of benefit shall be the actuarial equivalent of the benefit that would
otherwise be payable to the member. Optional forms of benefit are as
follows:
(1)
A joint and survivor annuity option will pay a reduced retirement benefit during
the joint lifetime of the member and his or her beneficiary. Should the
beneficiary predecease a member, there is no further reduction. Should the
member predecease the beneficiary, the same amount or a smaller amount, as the
member designates at the time of retirement, will continue to be paid for the
remaining lifetime of the beneficiary;
(2)
A social security option will pay an increased retirement benefit during the
lifetime of the member who retires other than for disability until his or her
retirement benefits commence under the federal Social Security Act, then a
reduced retirement benefit payable thereafter for life in order to produce a
more level retirement income when such reduced retirement benefit is added to
his or her primary benefits under social security. For this purpose the primary
benefits under social security shall be estimated; and
(3)
Other options, other than lump sum distributions, may be offered subject to the
approval of the authority.
(c)
Notice.
For any distribution notice issued in plan years beginning after December 31,
2006, any plan provision requiring that the notice requirements of Code Sections
402(f) (the rollover notice) and 411(a)(11) (member's consent to distribution)
be implemented no more than 90 days prior to the annuity starting date may be
implemented no more than 180 days prior to the annuity starting
date.
(d)
Distribution
of benefits. Notwithstanding any
provision in the plan to the contrary, the distribution of a member's benefits,
whether under the plan or through the purchase of an annuity contract, shall be
made in accordance with the requirements of subsections (e) through (u) of this
section and shall otherwise comply with Code Section 401(a)(9) and the
regulations thereunder, including Regulation 1.401(a)(9)-6.
(e)(1)
General
rules. Except as otherwise provided in
this section, distributions of the member's accrued benefit shall be paid in the
form of periodic annuity payments for the member's life or the joint lives of
the member and beneficiary or over a period certain that does not exceed the
maximum length of the period certain determined in accordance with subsection
(g) of this section. The interval between payments for the annuity shall be
uniform over the entire distribution period and shall not exceed one year. Once
payments have commenced over a period, the period may only be changed in
accordance with subsection (n) of this section. Life or joint and survivor
annuity payments must satisfy the minimum distribution incidental benefit
requirements of subsection (f) of this section. Except as otherwise provided in
this section, such as permitted increases described in subsection (o) of this
section, all payments, whether paid over a member's life, joint lives, or a
period certain, also shall be nonincreasing.
(2)
Annuity
commencement. Annuity payments shall
commence on or before the member's required beginning date, within the meaning
of A-2 of Regulation 1.401(a)(9)-2. The first payment, which shall be made on
or before the member's required beginning date, shall be the payment which 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. Similarly, in the case of distributions commencing after
death in accordance with Code Section 401(a)(9)(B)(iii) and (iv), the first
payment, which shall be made on or before the date determined under A-3(a) or
(b), whichever is applicable, of Regulation 1.401(a)(9)-3, must be the payment
which is required for one payment interval. Payment intervals are the periods
for which payments are received: bimonthly, monthly, semiannually, or annually.
All benefit accruals as of the last day of the first distribution calendar year
must be included in the calculation of the amount of annuity payments for
payment intervals ending on or after the member's required beginning
date.
(3)
Single sum
distributions.
(A)
In the case of a single sum distribution of a member's entire accrued benefit
during a distribution calendar year, the amount that is the required minimum
distribution for the distribution calendar year, and thus not eligible for
rollover under Code Section 402(c), is determined using either the rule in
paragraph (1) of subsection (d) of this section or the rule in subparagraph (B)
of paragraph (4) of this subsection.
(B)
The portion of the single sum distribution that is a required minimum
distribution is determined by treating the single sum distribution as a
distribution from an individual account plan and treating the amount of the
single sum distribution as the member's account balance as of the end of the
relevant valuation calendar year. If the single sum distribution is being made
in the calendar year containing the required beginning date and the required
minimum distribution for the member's first distribution calendar year has not
been distributed, the portion of the single sum distribution that represents the
required minimum distribution for the member's first and second distribution
calendar years is not eligible for rollover.
(C)
The portion of the single sum distribution that is a required minimum
distribution may to be determined by expressing the member's benefit as an
annuity that would satisfy this section with an annuity starting date as of the
first day of the distribution calendar year for which the required minimum
distribution is being determined and treating one year of annuity payments as
the required minimum distribution for that year and not eligible for rollover.
If the single sum distribution is being made in the calendar year containing the
required beginning date and the required minimum distribution for the member's
first distribution calendar year has not been made, the benefit must be
expressed as an annuity with an annuity starting date as of the first day of the
first distribution calendar year, and the payments for the first two
distribution calendar years would be treated as required minimum distributions
and not eligible for rollover.
(4)
Death
benefits. The provisions of paragraph (1)
of this subsection prohibiting increasing payments under an annuity shall apply
to payments made upon the death of a member; provided, however, that for
purposes of this section, an ancillary death benefit described in this paragraph
may be disregarded in applying that rule. Such an ancillary death benefit is
excluded in determining a member's entire interest and the rules prohibiting
increasing payments shall not apply to such an ancillary death benefit. A death
benefit with respect to a member's benefit is an ancillary death benefit for
purposes of this section if:
(A)
It is not paid as part of the member's accrued benefit or under any optional
form of the member's benefit; and
(B)
The death benefit, together with any other potential payments with respect to
the member's benefit that may be provided to a survivor, satisfies the
incidental benefit requirement of Regulation 1.401-1(b)(1)(i).
(f)
Minimum
distribution incidental benefit ('MDIB') requirement and incidental benefit
requirement.
(1)
Life annuity
for member. If the member's benefit is
paid in the form of a life annuity for the life of the member satisfying Code
Section 401(a)(9) without regard to the minimum distribution incidental benefit
('MDIB') requirement, the MDIB requirement of Code Section 401(a)(9)(G) will be
satisfied.
(2)
Joint and
survivor annuity, spouse beneficiary. If
the member's sole beneficiary, as of the annuity starting date for annuity
payments, is the member's spouse and the distributions satisfy Code Section
401(a)(9) without regard to the MDIB requirement, the distributions to the
member shall be deemed to satisfy the MDIB requirement of Code Section
401(a)(9)(G).
(3)
Joint and
survivor annuity, nonspouse beneficiary - explanation of
rule. If distributions commence under a
distribution option that is in the form of a joint and survivor annuity for the
joint lives of the member and a beneficiary other than the member's spouse, the
MDIB requirement will not be satisfied as of the date distributions commence
unless under the distribution option the annuity payments to be made on and
after the member's required beginning date will satisfy the conditions of this
paragraph. The periodic annuity payment payable to the survivor must not at any
time on and after the member's required beginning date exceed the applicable
percentage of the annuity payment payable to the member using the table located
in Regulation 1.401(a)(9)-6, which is incorporated herein by reference as if set
forth verbatim. The applicable percentage is based on the adjusted member
beneficiary age difference. The adjusted member beneficiary age difference is
determined by first calculating the excess of the age of the member over the age
of the beneficiary based on their ages on their birthdays in a calendar year.
Then, if the member is younger than age 70, the age difference determined in the
previous sentence is reduced by the number of years that the member is younger
than age 70 on the member's birthday in the calendar year that contains the
annuity starting date. In the case of an annuity that provides for increasing
payments, the requirement of this paragraph will not be violated merely because
benefit payments to the beneficiary increase, provided the increase is
determined in the same manner for the member and the beneficiary.
(4)
Period certain
and annuity features. If a distribution
form includes a period certain, the amount of the annuity payments payable to
the beneficiary need not be reduced during the period certain, but in the case
of a joint and survivor annuity with a period certain, the amount of the annuity
payments payable to the beneficiary must satisfy paragraph (3) of this
subsection after the expiration of the period certain.
(5)
Deemed
satisfaction of incidental benefit rule.
Except in the case of distributions with respect to a member's benefit that
include an ancillary death benefit described in paragraph (5) of subsection (e)
of this subsection, to the extent the incidental benefit requirement of
Regulation 1.401-1(b)(1)(i) requires a distribution, such requirement is deemed
to be satisfied if distributions satisfy the MDIB requirement of this
subsection. If the member's benefits include an ancillary death benefit
described in paragraph (5) of subsection (e) of this subsection, the benefits,
including the ancillary death benefit, shall be distributed in accordance with
the incidental benefit requirement described in Regulation 1.401-1(b)(1)(i) and
the benefits, excluding the ancillary death benefit, shall also satisfy the MDIB
requirement of this subsection.
(g)
Length of
period certain.
(1)
Distributions
commencing during the member's life. The
period certain for any annuity distributions commencing during the life of the
member with an annuity starting date on or after the member's required beginning
date generally is not permitted to exceed the applicable distribution period for
the member, determined in accordance with the Uniform Lifetime Table in A-2 of
Regulation 1.401(a)(9)-9, for the calendar year that contains the annuity
starting date; provided, however, that if the member's sole beneficiary is the
member's spouse, the period certain is permitted to be as long as the joint life
and last survivor expectancy of the member and the member's spouse, if longer
than the applicable distribution period for the member, provided the period
certain is not provided in conjunction with a life annuity under paragraph (2)
of subsection (e) of this section.
(2)
Distributions
commencing after the member's death.
(A)
If annuity distributions commence after the death of the member under the life
expectancy rule under Code Section 401(a)(9)(B)(iii) or (iv), the period certain
for any distributions commencing after death shall not exceed the applicable
distribution period determined under A-5(b) of Regulation 1.401(a)(9)-5 for the
distribution calendar year that contains the annuity starting date.
(B)
If the annuity starting date is in a calendar year before the first distribution
calendar year, the period certain may not exceed the life expectancy of the
designated beneficiary using the beneficiary's age in the year that contains the
annuity starting date.
(h)
Distributions
from an annuity contract from an insurance
company. The plan will not fail to
satisfy Code Section 401(a)(9) merely because distributions are made from an
annuity contract which is purchased with the member's benefit by the plan from
an insurance company as long as the payments satisfy the requirements of this
section. If the annuity contract is purchased after the required beginning
date, the first payment interval must begin on or before the purchase date, and
the payment required for one payment interval must be made no later than the end
of such payment interval.
(i)
Distribution
of additional benefits after the member's first distribution calendar
year.
(1)
Annuity
distributions. In the case of annuity
distributions under the plan, if any additional benefits accrue in a calendar
year after the member's first distribution calendar year, distribution of the
amount that accrues in the calendar year must commence in accordance with
subsection (e) of this section, beginning with the first payment interval ending
in the calendar year immediately following the calendar year in which such
amount accrues.
(2)
Administrative
delay. The plan will not fail to satisfy
Code Section 401(a)(9) merely because there is an administrative delay in the
commencement of the distribution of the additional benefits accrued in a
calendar year, provided that the actual payment of such amount commences as soon
as practicable; provided, further, that payment must commence no later than the
end of the first calendar year following the calendar year in which the
additional benefit accrues, and the total amount paid during such first calendar
year must be no less than the total amount that was required to be paid during
that year under this subsection.
(j)
Portion of a
member's benefit not vested. In the case
of annuity distributions from the plan, if any portion of the member's benefit
is not vested as of December 31 of a distribution calendar year, the portion
that is not vested as of such date will be treated as not having accrued for
purposes of determining the required minimum distribution for that distribution
calendar year. When an additional portion of the employee's benefit becomes
vested, such portion shall be treated as an additional accrual.
(k)
Certain
distributions that commence before member's required beginning
date.
(1)
General
rule. If distributions commence to a
member on a date before the member's required beginning date over a period
permitted under Code Section 401(a)(9)(A)(ii) and the distribution form is an
annuity under which distributions are made in accordance with the provisions of
subsection (e) of this section, the annuity starting date shall be treated as
the required beginning date for purposes of applying the rules of subsection (o)
of this section and Regulation 1.401(a)(9)-2. Thus, for example, the designated
beneficiary distributions will be determined as of the annuity starting date.
Similarly, if the member dies after the annuity starting date but before the
required beginning date determined under A-2 of Treasury Regulation
1.401(a)(9)-2, after the member's death the remaining portion of the member's
interest must continue to be distributed in accordance with subsection (o) of
this section over the remaining period over which distributions commenced. The
rules in Regulation 1.401(a)(9)-3 and Code Section 401(a)(9)(B)(ii) or (iii) and
(iv) shall not apply.
(2)
Period
certain. If, as of the member's birthday
in the year that contains the annuity starting date, the age of the member is
less than 70 years of age, the provisions of this paragraph shall be used in
applying the provisions of paragraph (1) of subsection (g) of this section. The
applicable distribution period for the member is the distribution period for age
70, determined in accordance with the Uniform Lifetime Table in A-2 of Treasury
Regulation 1.401(a)(9)-9, plus the excess of 70 over the age of the member as of
the member's birthday in the year that contains the annuity starting
date.
(3)
Adjustment to
member beneficiary age difference. For
the determination of the adjusted member beneficiary age difference in the case
of a member whose age on the annuity starting date is less than 70, the
provisions of paragraph (3) of subsection (f) of this section shall
apply.
(l)
Certain
distributions to member's surviving
spouse. If distributions commence to the
surviving spouse of a member over a period permitted under Code Section
401(a)(9)(B)(iii)(II) before the date on which distributions are required to
commence and the distribution form is an annuity under which distributions are
made as of the date distributions commence in accordance with the provisions of
subsection (g) of this section, distributions will be considered to have begun
on the actual commencement date for purposes of Code Section
401(a)(9)(B)(iv)(II). Consequently, in such case, A-5 of Treasury Regulation
1.401(a)(9)-3 and Code Section 401(a)(9)(B)(ii) and (iii) shall not apply upon
the death of the surviving spouse as though the surviving spouse were the
member. Instead, the annuity distributions must continue to be made, in
accordance with the provisions of subsection (e) of this section, over the
remaining period over which distributions commenced.
(m)
Annuitization
of certain annuity contracts.
(1)
General
rule. Prior to the date that an annuity
contract under an individual account plan is annuitized, the interest of a
member or beneficiary under that contract is treated as an individual account
for purposes of Code Section 401(a)(9). Thus, the required minimum distribution
for any year with respect to that interest is determined under Regulation
1.401(a)(9)-5 rather than this subsection.
(2)
Entire
interest. For purposes of applying the
rules in Regulation 1.401(a)(9)-5, the entire interest under the annuity
contract as of December 31 of the relevant valuation calendar year is treated as
the account balance for the valuation calendar year described in A-3 of Code
Section 1.401(a)(9)-5. The entire interest under an annuity contract is the
dollar amount credited to the member or beneficiary under the contract plus the
actuarial present value of any additional benefits, such as survivor benefits in
excess of the dollar amount credited to the member or beneficiary, that will be
provided under the contract. However, paragraph (3) of this subsection
describes certain additional benefits that may be disregarded in determining the
member's entire interest under the annuity contract. The actuarial present
value of any additional benefits described under this subsection shall be
determined using reasonable actuarial assumptions, including reasonable
assumptions as to future distributions, and without regard to an individual's
health.
(3)
Exclusions.
(A)
The actuarial present value of any additional benefits provided under an annuity
contract described in paragraph (2) of this subsection may be disregarded if the
sum of the dollar amount credited to the member or beneficiary under the
contract and the actuarial present value of the additional benefits is no more
than 120 percent of the dollar amount credited to the member or beneficiary
under the contract and the contract provides only for the following additional
benefits:
(i)
Additional benefits that, in the case of a distribution, are reduced by an
amount sufficient to ensure that the ratio of such sum to the dollar amount
credited does not increase as a result of the distribution, and
(ii)
An additional benefit that is the right to receive a final payment upon death
that does not exceed the excess of the premiums paid less the amount of prior
distributions.
(B)
If the only additional benefit provided under the contract is the additional
benefit described in division (ii) of subparagraph (A) of this paragraph, the
additional benefit may be disregarded regardless of its value in relation to the
dollar amount credited to the member or beneficiary under the
contract.
(n)
Change of an annuity payment period.
(1)
In
general. An annuity payment period may be
changed in accordance with the provisions set forth in paragraph (2) of this
subsection or in association with an annuity payment increase described in
subsection (o) of this section.
(2)
Reannuitization.
If, in a stream of annuity payments that otherwise satisfies Code Section
401(a)(9), the annuity payment period is changed and the annuity payments are
modified in association with that change, this modification will not cause the
distributions to fail to satisfy Code Section 401(a)(9) provided the conditions
set forth in paragraph (3) of this subsection are satisfied and:
(A)
The modification occurs at the time that the member retires or in connection
with a plan termination;
(B)
The annuity payments prior to modification are annuity payments paid over a
period certain without life contingencies; or
(C)
The annuity payments after modification are paid under a qualified joint and
survivor annuity over the joint lives of the member and a designated
beneficiary, the member's spouse is the sole designated beneficiary, and the
modification occurs in connection with the member becoming married to such
spouse.
(3)
Conditions.
In order to modify a stream of annuity payments in accordance with paragraph (2)
of this subsection, the following conditions must be satisfied:
(A)
The future payments under the modified stream satisfy Code Section 401(a)(9) and
this subsection, determined by treating the date of the change as a new annuity
starting date and the actuarial present value of the remaining payments prior to
modification as the entire interest of the member;
(B)
For purposes of Code Sections 415 and 417, the modification is treated as a new
annuity starting date;
(C)
After taking into account the modification, the annuity stream satisfies Code
Section 415, determined at the original annuity starting date, using the
interest rates and mortality tables applicable to such date; and
(D)
The end point of the period certain, if any, for any modified payment period is
not later than the end point available under Code Section 401(a)(9) to the
member at the original annuity starting date.
(o)
Certain
annuity payment increases.
(1)
General
rules. Except as otherwise provided in
this subsection, all annuity payments, whether paid over a member's life, joint
lives, or a period certain, shall be nonincreasing or shall increase only in
accordance with one or more of the following:
(A)
With an annual percentage increase that does not exceed the percentage increase
in an eligible cost-of-living index as defined in paragraph (2) of this
subsection for a 12 month period ending in the year during which the increase
occurs or the prior year;
(B)
With a percentage increase that occurs at specified times, such as specified
ages, and does not exceed the cumulative total of annual percentage increases in
an eligible cost-of-living index as defined in paragraph (2) of this subsection
since the annuity starting date, or if later, the date of the most recent
percentage increase; provided, however, that in cases providing such a
cumulative increase, an actuarial increase may not be provided to reflect the
fact that increases were not provided in the interim years;
(C)
To the extent of the reduction in the amount of the member's payments to provide
for a survivor benefit, but only if there is no longer a survivor benefit
because the beneficiary whose life was being used to determine the period
described in Code Section 401(a)(9)(A)(ii) over which payments were being made
dies or is no longer the member's beneficiary pursuant to a qualified domestic
relations order within the meaning of Code Section 414(p);
(D)
To pay increased benefits that result from a plan amendment;
(E)
To allow a beneficiary to convert the survivor portion of a joint and survivor
annuity into a single sum distribution upon the member's death; or
(F)
To the extent increases are permitted in accordance with paragraph (3) or (4) of
this subsection.
(2)
Definitions.
For purposes of this subsection, the term:
(A)
'Acceleration of payments' means a shortening of the payment period with respect
to an annuity or a full or partial commutation of the future annuity payments.
An increase in the payment amount will be treated as an acceleration of payments
in the annuity only if the total future expected payments under the annuity,
including the amount of any payment made as a result of the acceleration, is
decreased as a result of the change in payment period.
(B)
'Actuarial gain' means the difference between an amount determined using the
actuarial assumptions, including investment return, mortality, expense, and
other similar assumptions, used to calculate the initial payments before
adjustment for any increases and the amount determined under the actual
experience with respect to those factors. Actuarial gain also includes
differences between the amount determined using actuarial assumptions when an
annuity was purchased or commenced and such amount determined using actuarial
assumptions used in calculating payments at the time the actuarial gain is
determined.
(C)
'Eligible cost-of-living index' means:
(i)
A consumer price index that is based on prices of all items, or all items
excluding food and energy, and issued by the Bureau of Labor Statistics,
including an index for a specific population, such as urban consumers or urban
wage earners and clerical workers, and an index for a geographic area or areas,
such as a given metropolitan area or state;
(ii)
A percentage adjustment based on a cost-of-living index described in
subparagraph (B) of this paragraph, or a fixed percentage if less. In any
year when the cost-of-living index is lower than the fixed percentage, the fixed
percentage may be treated as an increase in an eligible cost-of-living index,
provided it does not exceed the sum of:
(I)
The cost-of-living index for that year; and
(II)
The accumulated excess of the annual cost-of-living index from each prior year
over the fixed annual percentage used in that year, reduced by any amount
previously utilized under this division; or
(iii)
A percentage adjustment based on the increase in compensation for the position
held by the member at the time of retirement and provided under the terms of a
governmental plan within the meaning of Code Section 414(d) as in effect on
April 17, 2002.
(D)
'Total future expected payments' means the total future payments expected to be
made under the annuity contract as of the date of the determination, calculated
using the Single Life Table in A-1 of Regulation 1.401(a)(9)-9 or, if
applicable, the joint and Last Survivor Table in A-3 of in Regulation
1.401(a)(9)-9, for annuitants who are still alive, without regard to any
increases in annuity payments after the date of determination and taking into
account any remaining period certain.
(E)
'Total value being annuitized' means:
(i)
In the case of annuity payments under a Section 403(a) annuity plan or under a
deferred annuity purchased by a Section 401(a) trust, the value of the member's
entire interest (within the meaning of subsection (m) of this section) being
annuitized, valued as of the date annuity payments commence;
(ii)
In the case of annuity payments under an immediate annuity contract purchased by
a trust for a defined benefit plan qualified under Section 401(a), the amount of
the premium used to purchase the contract; and
(iii)
In the case of a defined contribution plan, the value of the member's account
balance used to purchase an immediate annuity under the contract.
(3)
Additional
permitted increases for annuity payments under annuity contracts purchased from
insurance companies. In the case of
annuity payments paid from an annuity contract purchased from an insurance
company, if the total future expected payments, determined in accordance with
subparagraph (D) of paragraph (2) of this subsection, exceed the total value
being annuitized, within the meaning of subparagraph (E) of paragraph (2)
of this subsection, the payments under the annuity will not fail to satisfy the
nonincreasing payment requirement in paragraph (1) of subsection (e) of this
section merely because the payments are increased in accordance with one or more
of the following:
(A)
By a constant percentage, applied not less frequently than
annually;
(B)
To provide a final payment upon the death of the member that does not exceed the
excess of the total value being annuitized within the meaning of subparagraph
(E) of paragraph (2) of this subsection over the total of payments before the
death of the member;
(C)
As a result of dividend payments or other payments that result from actuarial
gains within the meaning of subparagraph (B) of paragraph (2) of this
subsection, but only if actuarial gain is measured no less frequently than
annually and the resulting dividend payments or other payments are either paid
no later than the year following the year for which the actuarial experience is
measured or paid in the same form as the payment of the annuity over the
remaining period of the annuity, beginning no later than the year following the
year for which the actuarial experience is measured; and
(D)
An acceleration of payments under the annuity within the meaning of
subparagraph (A) of paragraph (2) of this subsection.
(4)
Additional
permitted increases for annuity payments from a qualified
trust. In the case of annuity payments
paid under a defined benefit plan qualified under Code Section 401(a), other
than annuity payments under an annuity contract purchased from an insurance
company that satisfy paragraph (3) of this subsection, the payments under the
annuity will not fail to satisfy the nonincreasing payment requirement in
subsection (e) of this section merely because the payments are increased in
accordance with one of the following:
(A)
By a constant percentage, applied not less frequently than annually, at a rate
that is less than 5 percent per year;
(B)
To provide a final payment upon the death of the member that does not exceed the
excess of the actuarial present value of the member's accrued benefit, within
the meaning of Code Section 411(a)(7), calculated as the annuity starting date
using the applicable interest rate and the applicable mortality table under Code
Section 417(e), or, if greater, the total amount of member contributions, over
the total of payments before the death of the member; or
(C)
As a result of dividend payments or other payments that result from actuarial
gains within the meaning of subparagraph (B) of paragraph (2) of this
subsection, but only if:
(i)
Actuarial gain is measured no less frequently than annually;
(ii)
The resulting dividend payments or other payments are either paid no later than
the year following the year for which the actuarial experience is measured or
paid in the same form as the payment of the annuity over the remaining period of
the annuity, beginning no later than the year following the year for which the
actuarial experience is measured;
(iii)
The actuarial gain taken into account is limited to actuarial gain from
investment experience;
(iv)
The assumed interest used to calculate such actuarial gains is not less than 3
percent; and
(v)
The payments are not increasing by a constant percentage as described in
subparagraph (A) of this paragraph.
(p)
Certain
payments to a surviving child. Pursuant
to Code Section 401(a)(9)(F), payments under a defined benefit plan or annuity
contract that are made to a member's child until such child reaches the age of
majority or dies, if earlier, may be treated, for purposes of Code Section
401(a)(9), as if such payments were made to the surviving spouse to the extent
they become payable to the surviving spouse upon cessation of the payments to
the child. For purposes of the preceding sentence, a child may be treated as
having not reached the age of majority if the child has not completed a
specified course of education and is under the age of 26. In addition, a child
who is disabled within the meaning of Code Section 72(m)(7) when the child
reaches the age of majority may be treated as having not reached the age of
majority so long as the child continues to be disabled. Thus, when payments
described in this subsection become payable to the surviving spouse because the
child attains the age of majority, recovers from a disabling illness, dies, or
completes a specified course of education, there is not an increase in benefits
under subsection (e) of this section. Likewise, the age of the child receiving
such payments is not taken into consideration for purposes of the minimum
incidental benefit requirement of subsection (f) of this
section.
(q)
Annuity
payments under a governmental plan.
(1)
Except as provided in paragraph (2) of subsection (g) of this section, annuity
payments under a governmental plan within the meaning of Code Section 414(d)
must satisfy this section.
(2)
In the case of an annuity distribution option provided under the terms of a
governmental plan in effect on April 17, 2002, the plan will not fail to satisfy
Code Section 401(a)(9) merely because the annuity payments do not satisfy the
requirements of subsections (f) through (t) of this section, provided the
distribution option satisfies Code Section 401(a)(9) based on a reasonable and
good faith interpretation of the provisions of Code Section
401(a)(9).
(r)
Required
minimum distribution rules for 2003, 2004, and
2005. A distribution from a defined
benefit plan or annuity contract for calendar years 2003, 2004, and 2005 will
not fail to satisfy Code Section 401(a)(9) merely because the payments do not
satisfy subsections (e) through (g) of this section, provided the payments
satisfy Code Section 401(a)(9) based on a reasonable and good faith
interpretation of the provisions of Code Section 401(a)(9). For governmental
plans, this reasonable good faith standard extends to the end of the calendar
year that contains the ninetieth day after the opening of the first legislative
session of the General Assembly that begins on or after June 15, 2004, if such
ninetieth day is later than December 31, 2005.
(s)
Minimum
distributions. With respect to
distributions under the plan made for calendar years beginning on or after
January 1, 2001, but prior to October 1, 2006, the plan will apply the minimum
distribution requirements of Code Section 401(a)(9) in accordance with the
regulations under Code Section 401(a)(9) that were proposed on January 17, 2001,
notwithstanding any provision of the plan to the contrary. Such provision shall
continue in effect until the end of the last calendar year beginning before the
effective date of final regulations under Code Section 401(a)(9) or such other
date as may be specified in guidance published by the Internal Revenue Service.
With respect to distributions under the plan made for calendar years beginning
on or after October 1, 2006, the plan will apply the minimum distribution
requirements of Code Section 401(a)(9) in accordance with the Final Regulations
Section 1.401(a)(9)-6.
(t)
Contracts
nontransferable. All annuity contracts
under this plan shall be nontransferable when distributed.
(u)
Applicability.
Subject to the spouse's right of consent afforded under the plan, the
restrictions imposed by this section shall not apply if a member has, prior to
January 1, 1984, made a written designation to have retirement benefits paid in
an alternative method acceptable under Code Section 401(a) in effect prior to
the enactment of the federal Tax Equity and Fiscal Responsibility Act of 1982,
'TEFRA.'
5.11
TIME OF DISTRIBUTION.
(a)
Whenever a distribution is to be made, or a series of payments are to commence,
the distribution or series of payments may be made or begun on such date or as
soon thereafter as is practicable; provided, however, that unless a former
member elects in writing to defer the receipt of benefits, such election may not
result in a death benefit that is more than incidental and the payment of
benefits shall begin not later than the sixtieth day after the close of the plan
year in which the latest of the following events occurs:
(1)
The date on which the member attains normal retirement age;
(2)
The tenth anniversary of the year in which the member commenced participation in
the plan; or
(3)
The date the member terminates service with the employer.
(b)
Notwithstanding the provisions of subsection (a) of this section, the failure of
a member and, if applicable, the member's spouse to consent to a distribution
that is immediately distributable shall be deemed to be an election to defer the
commencement of payment of any benefit sufficient to satisfy this
section.
5.12
DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY.
In
the event a distribution is to be made to a minor or incompetent beneficiary,
the administrator may direct that such distribution be paid to the legal
guardian or, if none in the case of a minor beneficiary, to a parent or
custodian for such beneficiary under the federal Uniform Gift to Minors Act or
Gift to Minors Act if such is permitted by the laws of the state in which said
beneficiary resides. Such a payment to the legal guardian, parent, or custodian
of a minor or incompetent beneficiary shall fully discharge the trustee,
employer, and plan from further liability on account thereof.
5.13
LOCATION OF MEMBER OR BENEFICIARY UNKNOWN.
In
the event that all, or any portion, of the distribution payable to a member or
beneficiary under the plan shall, at the member's attainment of normal
retirement age, remain unpaid solely by reason of the inability of the
administrator, after sending a registered letter, return receipt requested, to
the last known address and after further diligent effort to ascertain the
whereabouts of such member or beneficiary, the amount so distributable shall be
treated as a forfeiture pursuant to the plan; provided, however, that if the
value of a member's vested benefit derived from employer and employee
contributions does not exceed $1,000.00, then the amount distributable may be
treated as a forfeiture at the time it is determined that the whereabouts of the
member or the member's beneficiary can not be ascertained. In the event a
member or beneficiary is located subsequent to the forfeiture, such benefit
shall be restored; however, a benefit that is lost by reason of escheat under
applicable state law is not treated as a forfeiture for purposes of this section
nor as an impermissible forfeiture under the Code.
5.14
ASSIGNMENT OF BENEFITS; QUALIFIED DOMESTIC RELATIONS ORDER.
(a)(1)(A)
No benefit payment or portion of the pension fund contributed by member
employees or officers shall be subject to assignment or used as collateral for
any claim or debt of any kind or character by any person, firm, or corporation
whatsoever.
(B)
The provisions of this paragraph shall not apply to the exception of the
authority or the Macon Water Works Credit Union, referred to in this section as
'the credit union,' and then only for money lawfully owing to the authority or
the credit union by any particular member; provided, however, that the
provisions of this subparagraph shall apply only to a member whose service with
the authority has been terminated and shall be limited to such member's benefit
payments and contributions to the pension fund made prior to the member's
completion of ten years of service.
(2)(A)
Neither a member nor any beneficiary shall have any right to alienate, commute,
anticipate, or assign any of the benefits, payments, proceeds, or distributions
of the plan, except to the authority or the credit union, as provided in
paragraph (1) of this subsection.
(B)
If a member or any beneficiary attempts to dispose of any benefits or the right
to dispose of such benefits provided under the plan, or if there is an effort to
seize such benefits or the right to receive such benefits by attachment,
execution, or other legal or equitable process by any entity other than the
authority or the credit union, then the pension committee, in its discretion,
may pass and transfer the benefit or right in such shares as the pension
committee determines to one or more persons from among the beneficiaries, if
any, designed by the member or to the spouse, children, or other dependents of
the member. The pension committee may revoke any such appointment at any time
and make further appointments to other persons, including to the
member.
5.15
DIRECT ROLLOVERS.
(a)
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.
(b)
As used in this subsection, the term:
(1)
'Direct rollover' means a payment by the plan to the eligible retirement plan
specified by the distributee.
(2)
'Distributee' includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's or former
employee's spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p), are distributees
with regard to the interest of the spouse or former spouse.
(3)
'Eligible retirement plan' means an individual retirement account described in
Code Section 408(a), an individual retirement annuity described in Code Section
408(b) other than an endowment contract, a qualified trust, an employees' trust
described in Code Section 401(a) which is exempt from taxation under Code
Section 501(a), an annuity plan described in Code Section 403(a), 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), and an annuity
contract described in Code Section 403(b) that accepts the distributee's
eligible rollover distribution. However, in the case of an eligible rollover
distribution to the surviving spouse, an eligible retirement plan is an
individual retirement account or individual retirement annuity. The term shall
also apply in the case of a distribution to a surviving spouse or to a spouse or
former spouse who is the alternate payee under a qualified domestic relations
order, as defined in Code Section 414(p).
(4)
'Eligible rollover distribution' means any distribution described in Code
Section 402(c)(4) and generally includes 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 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 years or more; any distribution to
the extent such distribution is required under Code Section 401(a)(9); the
portion of any other distribution that is not includible in gross income,
determined without regard to the exclusion for net unrealized appreciation with
respect to employer securities; and any other distribution reasonably expected
to total less than $200.00 during a year. Any amount that is distributed on
account of hardship shall not be an eligible rollover distribution, and the
distributee may not elect to have any portion of such a distribution paid
directly to an eligible retirement plan.
ARTICLE
VI
Code Section 415 limitations.
Code Section 415 limitations.
6.1
'EMPLOYER' DEFINED.
As
used in this article, 'employer' means the employer that adopts this plan and
all affiliated employers, except that affiliated employers shall be determined
pursuant to the modification made by Code Section 415(h).
6.2
ANNUAL BENEFIT.
(a)(1)
The annual benefit otherwise payable to a member at any time shall not exceed
the maximum permissible amount. If the benefit the member would otherwise
accrue in a limitation year would produce an annual benefit in excess of the
maximum permissible amount, then the benefit must be limited or the rate of
accrual reduced to a benefit that does not exceed the maximum permissible
amount.
(2)
If a member has made voluntary nondeductible employee contributions or mandatory
employee contributions as defined in Code Section 411(c)(2)(C) under the terms
of this plan, then the amount of such contributions is treated as an annual
addition to a qualified defined contribution plan, for purposes of paragraph (1)
of this subsection and paragraph (3) of subsection (b) of this
section.
(3)
Prior to determining the member's actual Code Section 415 compensation for the
limitation year, the employer may determine the maximum permissible amount for a
member on the basis of a reasonable estimate of the member's Code Section 415
compensation for the limitation year, uniformly determined for all members
similarly situated. As soon as is administratively feasible after the end of
the limitation year, the maximum permissible amount for such limitation year
shall be determined based on the member's actual Code Section 415 compensation
for such limitation year.
(b)(1)
This subsection applies if, in addition to this plan, a member is covered under
another qualified defined benefit plan maintained by the employer; a welfare
benefit fund, as defined in Code Section 419(e), maintained by the employer; an
individual medical account, as defined in Code Section 415(l)(2), maintained by
the employer; or a simplified employee pension, as defined in Code Section
408(k), maintained by the employer that provides annual additions during any
limitation year.
(2)
If a member is, or has ever been, covered under more than one defined benefit
plan maintained by the employer, then the sum of the member's annual benefits
from all such plans may not exceed the maximum permissible amount. Where the
member's employer provided benefits under all defined benefit plans ever
maintained by the employer exceed the maximum permissible amount applicable at
that age, then the rate of accrual in this defined benefit plan shall be reduced
to the extent necessary so that the total annual benefits payable at any time
under such plans will not exceed the maximum permissible amount applicable at
that age.
(3)
Prior to determining the member's actual Code Section 415 compensation for the
limitation year, the employer may determine the maximum permissible amount for a
member on the basis of a reasonable estimate of the member's Code Section 415
compensation for the limitation year, uniformly determined for all members
similarly situated. As soon as is administratively feasible after the end of
the limitation year, the maximum permissible amount for such limitation year
shall be determined based on the member's actual Code Section 415 compensation
for such limitation year.
(c)
As used in this section, the term:
(1)
'Annual additions' means the sum of the following amounts credited to a member's
account for the limitation year:
(A)
Employer contributions;
(B)
Forfeitures;
(C)
Employee contributions;
(D)
Amounts allocated to an individual medical account, as defined in Code Section
415(l)(2), that is part of a pension or annuity plan maintained by the employer;
(E)
Amounts derived from contributions paid or accrued that are attributable to
postretirement medical benefits allocated to the separate account of a key
employee, as defined in Code Section 419A(d)(3), under a welfare benefit fund
maintained by the employer; and
(F)
Allocations under a simplified employee pension.
(2)(A)
'Annual benefit' means a retirement benefit under the plan which is payable
annually in the form of a straight life annuity. Except as otherwise provided
in this paragraph, a benefit payable in a form other than a straight life
annuity must be adjusted to an actuarially equivalent straight life annuity
before applying the limitations of this article. This straight life annuity is
equal to the greater of the annuity benefit computed using the interest rate and
mortality table, or other tabular factor, specified in Section 1.2 of the plan
for adjusting benefits in the same form or the annuity benefit computed using a
5 percent interest rate assumption and the applicable mortality table defined in
Section 1.2 of the plan.
(B)
In determining the actuarially equivalent straight life annuity for a benefit
form other than a nondecreasing annuity payable for a period of not less than
the life of the member or, in the case of a qualified preretirement survivor
annuity, the life of the surviving spouse or decreases during the life of the
member merely because of (i) the death of the survivor annuitant, but only if
the reduction is not below 50 percent of the annual benefit payable before the
death of the survivor annuitant, or (ii) the cessation or reduction of Social
Security supplements of qualified disability payments, as defined in Code
Section 401(a)(11), the applicable interest rate, as defined in plan Section 1.2
of the plan, will be substituted for a 5 percent interest rate assumption in
subparagraph (A) of this paragraph. No actuarial adjustment to the benefit is
required for (i) the value of a qualified joint and survivor annuity, (ii)
benefits that are not directly related to retirement benefits, such as the
qualified disability benefit, preretirement death benefits, and postretirement
medical benefits, and (iii) the value of postretirement cost-of-living increases
made in accordance with Code Section 415(d) and Regulation 1.415-3(c)(2)(iii).
(C)
The 'annual benefit' does not include any benefits attributable to employee
contributions or rollover contributions or the assets transferred from a
qualified plan that was not maintained by the employer.
(3)
'Code Section 415 compensation' means a member's Section 3401(a) wages and shall
be based on the full limitation year regardless of when participation in the
plan commences. With respect to limitation years beginning after December 31,
1997, Code Section 415 compensation shall include any elective deferral, as
defined in Code Section 402(g)(3), and any amount which is contributed or
deferred by the employer at the election of the participant and which is not
includible in the gross income of the participant by reason of Code Sections 125
and 457 and, for limitation years beginning on or after January 1, 2001, Code
Section 132(f). For limitation years prior to January 1, 1998, Code Section 415
compensation shall exclude those amounts. If a member does not participate in,
and has never participated in, another qualified plan maintained by the
employer; a welfare benefit fund, as defined in Code Section 419(e), maintained
by the employer; an individual medical account, as defined in Code Section
415(l)(2), maintained by the employer; or a simplified employee pension, as
defined in Code Section 408(k), maintained by the employer that provides annual
additions during any limitation year, then subsection (b) of this section is
also applicable to that member's benefits.
(4)
'Defined benefit compensation limitation' means 100 percent of a member's high
three-year average compensation, payable in the form of a straight life annuity.
In the case of a member who has separated from service, the defined benefit
compensation limitation applicable to the member will be automatically adjusted
by multiplying such limitation by the cost-of-living adjustment factor
prescribed by the United States Secretary of the Treasury under Code Section
415(d) in such manner as the secretary shall prescribe. The adjusted
compensation limit will apply to limitation years ending with or within the
calendar year of the date of the adjustment; however, because the plan is a
governmental plan, this provision is not applicable.
(5)
'Defined benefit dollar limitation' means $160,000.00 automatically adjusted,
effective January 1 of each year, under Code Section 415(d) in such manner as
the secretary shall prescribe and payable in the form of a straight life
annuity. The new limitation will apply to limitation years ending with or
within the calendar year of the date of the adjustment.
(6)
'High three-year average compensation' means the average Code Section 415
compensation for the three consecutive years of service with the employer that
produces the highest average. In the case of a member who has separated from
service, the member's highest average compensation will be automatically
adjusted by multiplying such compensation by the cost of living adjustment
factor prescribed by the United States Secretary of the Treasury under Code
Section 415(d) in such manner as the secretary shall prescribe. The adjusted
compensation amount will apply to limitation years ending within the calendar
year of the date of the adjustment; however, because the plan is a governmental
plan, this provision is not applicable.
(7)
'Maximum permissible amount' means:
(A)
The lesser of the defined benefit dollar limitation or the defined benefit
compensation limitation, both adjusted where required, however, because the plan
is a governmental plan, the defined benefit compensation limitation is not
applicable;
(B)
If the member has fewer than ten years of participation in the plan, the defined
benefit dollar limitation shall be multiplied by a fraction, the numerator of
which is the number of years or part of a year of participation in the plan and
the denominator of which is ten. In the case of a member who has fewer than ten
years of service with the employer, the defined benefit compensation limitation
shall be multiplied by a fraction, the numerator of which is the number of years
or part of a year of service with the employer and the denominator of which is
ten;
(C)
If the benefit of a member begins prior to age 62, the defined benefit dollar
limitation applicable to the member at such earlier age is an annual benefit
payable in the form of a straight life annuity beginning at the earlier age that
is the actuarial equivalent of the defined benefit dollar limitation applicable
to the member at age 62, adjusted as provided in subparagraph (D) of this
paragraph, if required. The defined benefit dollar limitation applicable at an
age prior to age 62 is determined as the lesser of the actuarial equivalent at
such age of the defined benefit dollar limitation computed using the interest
rate and mortality table, or other tabular factor, specified in Section 1.2 of
the plan and the actuarial equivalent, at such age of the defined benefit dollar
limitation computed using a 5 percent interest rate and the applicable mortality
table as defined in Section 1.2 of the plan. Any decrease in the defined
benefit dollar limitation determined in accordance with this subparagraph shall
not reflect a mortality decrement if benefits are not forfeited upon the death
of the member. If any benefits are forfeited upon death, the full mortality
decrement is taken into account.
(D)
If the benefit of a member begins after the member attains age 65, the defined
benefit dollar limitation applicable to the member at the later age is the
annual benefit payable in the form of a straight life annuity beginning at the
later age that is actuarially equivalent to the defined benefit dollar
limitation applicable to the member at age 65 adjusted as provided in
subparagraph (E) of this paragraph, if required. The actuarial equivalent of
the defined benefit dollar limitation applicable at an age after age 65 is
determined as the lesser of the actuarial equivalent at such age of the defined
benefit dollar limitation computed using the interest rate and mortality table,
or other tabular factor, specified in Section 1.2 of the plan or the actuarial
equivalent at such age of the defined benefit dollar limitation computed using a
5 percent interest rate assumption and the applicable mortality table as defined
in Section 1.2 of the plan. For these purposes, mortality between age 65 and
the age at which benefits commence shall be ignored; and
(E)
Notwithstanding any other provision of this paragraph to the contrary, the
benefit otherwise accrued or payable to a member under this plan shall be deemed
not to exceed the maximum permissible benefit if:
(i)
The retirement benefits payable for the plan year under any form of benefit with
respect to such member under this plan and under all other defined benefit
plans, regardless of whether terminated, ever maintained by the employer do not
exceed $1,000.00 multiplied by the member's number of years of service or parts
thereof not to exceed ten with the employer; and
(ii)
The employer has not at any time maintained a defined contribution plan in which
the member participated.
(8)
'Year of participation' means a year of participation, computed to fractional
parts of a year, for each accrual computation period for which the following
conditions are met:
(A)
The member is credited with at least the number of hours of service for benefit
accrual purposes required under the terms of the plan in order to accrue a
benefit for the accrual computation period; and
(B)
The member is included as a member under the eligibility provisions of the plan
for at least one day of the accrual computation period.
If
such conditions are met, the portion of a year of participation credited to the
member shall equal the amount of benefit accrual service credited to the member
for such accrual computation period. A member who is permanently and totally
disabled within the meaning of Code Section 415(c)(3)(C)(i) for an accrual
computation period shall receive a year of participation with respect to that
period. In addition, for a member to receive a year of participation, or part
thereof, for an accrual computation period, the plan must be established no
later than the last day of such accrual computation period. In no event will
more than one year of participation be credited for any 12 month
period.
6.3
FINAL CODE SECTION 415 REGULATIONS.
(a)
Effective
date. The limitations of this section
shall apply in limitation years that begin more than 90 days after the close of
the first regular legislative session of the General Assembly that begins on or
after July 1, 2007.
(b)
Grandfather
provision. The application of the
provisions of this section shall not cause the maximum permissible benefit for
any member to be less than the member's accrued benefit under all the defined
benefit plans of the employer or a predecessor employer as of the end of the
last limitation year beginning before July 1, 2007, under provisions of the
plans that were both adopted and in effect before April 5, 2007, but only if the
provisions of such defined benefit plans that were both adopted and in effect
before April 5, 2007, satisfied the applicable requirements of statutory
provisions, regulations, and other published guidance relating to Code Section
415 in effect as of the end of the last limitation year beginning before July 1,
2007, as described in Section 1.415(a)-1(g)(4) of the federal Department of
Treasury regulations.
(c)
Incorporation
by reference. Notwithstanding anything
contained in the plan to the contrary, the limitations, adjustments, and other
requirements prescribed in the plan shall comply with the provisions of Code
Section 415 and the final regulations promulgated thereunder, the terms of which
are specifically incorporated herein by reference as of the effective date of
this section, except where an earlier effective date is otherwise provided in
the final regulations or herein; provided, however, that where the final
regulations permit the plan to specify an alternative option to a default option
set forth in the regulations, and the alternative option was available under
statutory provisions, regulations, and other published guidance relating to Code
Section 415 as in effect prior to April 5, 2007, and the plan provisions in
effect as of April 5, 2007, incorporated the alternative option, said
alternative option shall remain in effect as a plan provision for limitation
years beginning on or after July 1, 2007, unless another permissible option is
selected in this section.
(d)
High
three-year average compensation. For
purposes of the plan's provisions reflecting Code Section 415(b)(3), which is
limiting the annual benefit payable to no more than 100 percent of the member's
average annual compensation, a member's average compensation shall be the
average compensation for the three consecutive years of service, except that a
member's compensation for a year of service shall not include compensation in
excess of the limitation under Code Section 401(a)(17) that is in effect for the
calendar year in which such year of service begins. If the member has less than
three consecutive years of service, compensation shall be averaged over the
member's longest consecutive period of service, including fractions of years,
but not less than one year. In the case of a member who is rehired by the
employer after a severance of employment, the member's high three-year average
compensation shall be calculated by excluding all years for which the member
performs no services for and receives no compensation from the employer (the
'break period'), and by treating the years immediately preceding and following
the break period as consecutive. Because the plan is a governmental plan, this
provision is not applicable.
(e)
Adjustment to
dollar limit after date of severance. In
the case of a member who has had a severance from employment with the employer,
the defined benefit dollar limitation applicable to the member in any limitation
year beginning after the date of severance shall not be automatically adjusted
under Code Section 415(d).
(f)
Compensation
paid after severance from employment. For
limitation years beginning on or after July 1, 2007, compensation for a
limitation year, within the meaning of Code Section 415(c)(3), shall also
include the following types of compensation paid by the later of two and
one-half months after a member's severance from employment with the employer
maintaining the plan or the end of the limitation year that includes the date of
the member's severance from employment with the employer maintaining the plan.
Any other payment of compensation paid after severance of employment that is not
described in the following types of compensation is not considered compensation
within the meaning of Code Section 415(c)(3), even if payment is made within the
time period specified in this subsection:
(1)
Regular pay
after severance from employment.
Compensation shall include regular pay after severance of employment
if:
(A)
The payment is regular compensation for services during the member's regular
working hours or compensation for services outside the member's regular working
hours, such as overtime or shift differential, commissions, bonuses, or other
similar payments; and
(B)
The payment would have been paid to the member prior to a severance from
employment if the member had continued in employment with the
employer;
(2)
Leave cashouts
and deferred compensation. Leave cashouts
and deferred compensation shall be included in compensation, unless an election
is made to exclude such amounts, if those amounts would have been included in
the definition of compensation if they were paid prior to the member's severance
from employment with the employer maintaining the plan and the amounts are
either:
(A)
Payment for unused accrued bona fide sick, vacation, or other leave, but only if
the member would have been able to use the leave if employment had continued;
or
(B)
Received pursuant to a nonqualified unfunded deferred compensation plan, but
only if the payment would have been paid to the member if the member had
continued in employment with the employer and only to the extent that the
payment is includible in the member's gross income;
(3)
Salary
continuation payments for military service
members. Compensation does not include
payments to an individual who does not currently perform services for the
employer by reason of qualified military service, as that term is used in Code
Section 414(u)(1), to the extent those payments do not exceed the amounts the
individual would have received if the individual had continued to perform
services for the employer rather than entering qualified military service;
and
(4)
Salary
continuation payments for disabled
members. Compensation does not include
compensation paid to a member who is permanently and totally disabled, as
defined in Code Section 22(e)(3).
(g)
Administrative
delay. Compensation for a limitation year
shall not include amounts earned but not paid during the limitation year solely
because of the timing of pay periods and pay dates, provided the amounts are
paid during the first few weeks of the next limitation year, the amounts are
included on a uniform and consistent basis with respect to all similarly
situation members, and no compensation is included in more than one limitation
year.
ARTICLE
VII
Trustee.
Trustee.
7.1
THE TRUST AGREEMENT.
Simultaneously
with the execution and delivery of this restated plan, the authority and the
trustee shall execute a separate trust agreement. Such underlying trust shall
hold in trust the assets and liabilities of the plan in a manner consistent with
the funding requirements of the plan, for the exclusive benefit of the members,
retired members, disabled members, beneficiaries, contingent beneficiaries, and
spouses.
7.2
OWNERSHIP OF TRUST ASSETS.
Title
to the trust fund, including all funds and investments held hereunder by the
trustee from time to time, shall be and remain in the trust and no member,
retired or disabled member, beneficiary, contingent beneficiary, spouse, or
person claiming through any of them shall have any legal or equitable rights or
interest in the trust fund except to the extent that such rights or interest may
be expressly granted under the provisions of the plan or the trust
agreement.
7.3
EXCLUSIVE USE.
In
no event shall any of the principal or income of the trust fund be used for, or
diverted to, purposes other than the exclusive benefit of members, retired
members, disabled members, beneficiaries, contingent beneficiaries, and spouses,
or in the payment of the expense of the plan as set forth in the trust
agreement, except as provided in the plan or except at termination of the plan,
and then only if all liabilities thereunder have been met.
ARTICLE
VIII
Plan Amendment, Termination, or Merger.
Plan Amendment, Termination, or Merger.
8.1
AMENDMENT.
(a)
The authority shall have the right at any time to amend this plan subject to the
limitations of this section; provided, however, that any amendment that affects
the rights, duties, or responsibilities of the trustee or administrator may only
be made with the trustee's or administrator's written consent. Any such
amendment shall become effective as provided therein upon its execution. The
trustee shall not be required to execute any such amendment unless the amendment
affects the duties of the trustee hereunder. Such an amendment shall not cause
a reduction in any current or future benefit payable under the
plan.
(b)
No amendment to the plan shall be effective if it authorizes or permits any part
of the trust fund, other than such part as is required to pay taxes and
administration expenses, to be used for or diverted to any purpose other than
for the exclusive benefit of the members or their beneficiaries or estates;
causes any reduction in the amount credited to the account of any member; or
causes or permits any portion of the trust fund to revert to or become property
of the employer.
8.2
TERMINATION.
(a)
The authority shall have the right, subject to the approval of the General
Assembly, to terminate the plan at any time by delivering to the trustee and the
administrator written notice of such termination. Upon any termination full or
partial, all amounts shall be allocated in accordance with the provisions of the
plan and the accrued benefit, to the extent funded as of such date, of each
affected member shall become fully vested and shall not thereafter be subject to
forfeiture.
(b)
Upon full termination of the plan, the employer shall direct the distribution of
the assets in the trust fund to the members in a manner which is consistent with
Section 5.10 of the plan. In such case, the trustee shall distribute the assets
to the remaining members in the plan and to retired members in cash, in
property, or through the purchase of irrevocable deferred commitments from an
insurer, subject to provision for expenses of administration or liquidation.
Such distributions shall be allocated in the following order to the extent of
the sufficiency of such assets, basing such allocation on the accrued benefit
for each such member at the date of termination of the plan:
(1)
To provide pensions to retired members who have retired under the plan prior to
its termination without reference to the order of retirement;
(2)
To provide normal retirement benefits to members who have reached their normal
retirement dates but have not retired on the date of termination, without
reference to the order in which they reached their normal retirement date;
and
(3)
To provide normal retirement benefits to members who have not yet reached their
normal retirement date on the date of termination, in the order in which they
will reach their normal retirement date. Such benefits shall be based upon
accrued benefits as of the date of termination. The balance, if any, of the
assets due to erroneous actuarial computation after such allocation shall be
returned to the employer, but only after the satisfaction of all liabilities
with respect to members and pensions under the plan; provided, however, that the
foregoing provision permitting a return of excess assets to the employer shall
not be treated as effective until the end of the fifth calendar year following
the date such a provision was first adopted and continuously remained in effect
unless the plan has always provided for a return of assets. In the event the
provision is not treated as effective, excess assets shall be reallocated to the
members in a nondiscriminatory manner. The portion of the excess attributable to
mandatory contributions will be paid to the members who made these
contributions.
ARTICLE
IX
Miscellaneous.
Miscellaneous.
9.1
MEMBERS' RIGHTS.
This
plan shall not be deemed to constitute a contract between the employer and any
member or to be a consideration or an inducement for the employment of any
member or employee. Nothing contained in this plan shall be deemed to give any
member or employee the right to be retained in the service of the employer or to
interfere with the right of the employer to discharge any member or employee at
any time regardless of the effect such discharge shall have upon the employee as
a member of this plan.
9.2
CONSTRUCTION OF PLAN.
This
plan and trust shall be construed and enforced according to the Official Code of
Georgia Annotated.
9.3
GENDER AND NUMBER.
Wherever
any words are used herein in the masculine, feminine, or neuter gender, they
shall be construed as though they were also used in another gender in all cases
where they would so apply, and whenever any words are used herein in the
singular or plural form, they shall be construed as though they were also used
in the other form in all cases where they would so apply.
9.4
LEGAL ACTION.
In
the event any claim, suit, or proceeding is brought regarding the trust or plan
or both established by the plan to which the trustee or the administrator may be
a party, and such claim, suit, or proceeding is resolved in favor of the trustee
or administrator, they shall be entitled to be reimbursed from the trust fund
for any and all costs, attorney's fees, and other expenses pertaining thereto
incurred by them for which they shall have become liable. Any person having any
claim under the plan shall look solely to the assets of the pension fund for
satisfaction. In no event shall the authority, or any of its officials, members
of the pension committee, or agents, be liable in their respective individual
capacities to any person whatsoever under the provisions of the system. Except
for its or their willful neglect or fraud, neither the authority, the pension
committee, nor any members of either body shall be in any way subject to any
suit or litigation, or to any legal liability, for any cause or reason
whatsoever in connection with the plan or its operation, and each member
releases the authority and all of its officers and agents from any and all
liability or obligation. In this respect, the authority shall be the only
necessary party as to any action or proceeding involving the assets held in the
pension trust, or the administration thereof, and no employees or former
employees of the authority or their beneficiaries or any other person having or
claiming to have an interest in the plan shall be entitled to any notice or
process. Any final judgment that may be entered in any such action or
proceeding shall be binding and conclusive on the parties to the plan, the
authority, and all persons having or claiming to have any interest in the
system.
9.5
PROHIBITION AGAINST DIVERSION OF FUNDS.
(a)
Except as provided in this article and as otherwise specifically permitted by
law, it shall be impossible by operation of the plan or of the trust, by
termination of either, by power of revocation or amendment, by the happening of
any contingency, by collateral arrangement or by any other means, for any part
of the corpus or income of any trust fund maintained pursuant to the plan or any
funds contributed thereto to be used for, or diverted to, purposes other than
the exclusive benefit of members, retired members, or their
beneficiaries.
(b)
If plan benefits are provided through the distribution of annuity or insurance
contracts, any refunds or credits in excess of plan benefits (on account of
dividends, earnings, or other experience rating credits or surrender or
cancellation credits) will be paid to the trust fund.
9.6
RECEIPT AND RELEASE FOR PAYMENTS.
Any
payment to any member, the member's legal representative or beneficiary, or any
guardian or committee appointed for such member or beneficiary in accordance
with the provisions of this plan shall, to the extent thereof, be in full
satisfaction of all claims hereunder against the trustee and the
employer.
9.7
HEADINGS.
The
headings and subheadings of this plan have been inserted for convenience of
reference and are to be ignored in any construction of the provisions
hereof.
9.8
UNIFORMITY.
All
provisions of this plan shall be interpreted and applied in a uniform,
nondiscriminatory manner. In the event of any conflicts between the terms of
this plan and any insurance contract purchased hereunder, the plan provisions
shall control.
9.9
TRANSFER.
Any
active member of the plan shall have the option to cease participation in the
plan and transfer the value of his or her earned benefits to any future plan
offered by the authority; provided, however, that any such transfer of
participation shall be subject to the provisions of such other plan. Any such
transfer shall be entirely voluntary."
SECTION
2.
This
Act shall become effective on July 1, 2012, only if it is determined to have
been concurrently funded as provided in Chapter 20 of Title 47 of the Official
Code of Georgia Annotated, the "Public Retirement Systems Standards Law";
otherwise, the plan shall not become effective and shall be automatically
repealed in its entirety on July 1, 2012, as required by subsection (a) of Code
Section 47-20-50.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.
