HomeMy WebLinkAbout20090400.tiffRESOLUTION OF THE
WELD COUNTY BOARD OF RETIREMENT
WHEREAS, the Weld County Retirement Plan (the "Plan") has heretofore been created
by Resolution of the Weld County Board of Retirement hereafter referred to as the "Retirement
Board"; and
WHEREAS, the following amended and restated Plan is believed to be in conformity
with provisions of Section 401(a) and other applicable provisions of the Internal Revenue Code
of 1986, as amended from time to time; and
WHEREAS, the Plan has previously been amended and restated by action of the
Retirement Board, effective July I, 2000 and has been amended several times since then; and
WHEREAS, Section 14.2 permits the Retirement Board and the County Commissioners
to amend the Plan from time to time.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
(1) That the amended and restated Plan be effective January 1, 2008.
(2) The Weld County Retirement Plan (As Amended and Restated Effective January
1, 2008), copies of which have been presented to the Retirement Board at this meeting, be and it
hereby is approved and adopted effective as of January 1, 2008.
(3) The Retirement Board be and they hereby are authorized to execute forthwith the
Weld County Retirement Plan (As Amended and Restated Effective January 1, 2008) and to do
all other acts and things necessary and proper to keep the Plan and its Retirement Fund in full
force and effect and to make such amendments and changes, if any, as may be necessary to
maintain the qualification of the Plan and Retirement Fund under the applicable sections of the
Internal Revenue Codc of 1986, as amended from time to time.
(4) The proper officers of the Retirement Board are hereby authorized to submit, or
have submitted, executed, verified counterparts of the Plan and this resolution to the Internal
Revenue Service in support of a request for a letter of determination that the Plan and Funding
Agreement continue to qualify under Sections 40I (a) and 501(a) of the Internal Revenue Code of
1986, as amended from time to time.
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WELD COUNTY RETIREMENT PLAN
(As Amended and Restated Effective January 1, 2008)
Weld County Retirement Plan
(As Amended and Restated Effective January 1, 2008)
TABLE OF CONTENTS
Page No.
ARTICLE 1 PURPOSE 1
ARTICLE II DEFINITIONS 3
2.1 Name 3
2.2 Retirement Board 3
2.3 Definitions 3
ARTICLE III MEMBERSHIP 13
3.1 Employees on January 1, 1969 13
3.2 Employees Hired After January 1, 1969 13
3.3 Termination 14
3.4 Withdrawal 14
3.5 Leave of Absence for Qualified Military Service 14
ARTICLE IV CREDITED SERVICE 15
4.1 Credited Service 15
4.2 Prior Service 15
4.3 Current Service 15
4.4 Limitations on Credited Service 15
4.5 Breaks in Service 16
4.6 Reemployment of Retired Members 18
4.7 Purchase of Service Credit Relating to Noncovered Employment 18
ARTICLE V CONTRIBUTIONS 74
5.1 Member Contributions 24
5.2 County Contributions 25
5.3 Application of Forfeitures 26
ARTICLE VI RETIREMENT DATES 27
6.1 Normal Retirement 97
6.2 Early Retirement 27
6.3 Delayed Retirement 28
6.4 Disability Retirement 28
6.5 Retirement Date 29
6.6 Latest Date for Commencement of Payment of Benefits 29
ARTICLE VII RETIREMENT BENEFITS 31
7.1 Normal or Delayed Retirement 31
7.2 Early Retirement 32
7.3 Disability Retirement 33
TABLE OF CONTENTS
(continued)
Page No.
7.4 Payment of Benefits 34
7.5 Payment of Small Benefits 34
7.6 Accrued Credits and Vested Benefits Under the Previous Plan Preserved 34
7.7 Increased Benefits for Retired Members and Beneficiaries 35
7.8 Increased Benefits for Disabled Members 36
7.9 Direct Payment of Qualified Health Insurance Premiums 36
ARTICLE VIII OPTIONAL BENEFITS 38
8.1 General 38
8.2 100% Joint and Survivor Benefit 38
8.3 50% Joint and Survivor Benefit 38
8.4 Life and Term Certain Benefit 39
8.5 Single Life Benefit 39
8.6 Spousal Consent for Retirement Benefit 39
8.7 Limitations 40
ARTICLE IX DEATH BENEFITS 41
9.1 Death of an Active Member Before Normal Retirement Date 41
9.2 Death of a Vested Member Before Payments Commence 41
9.3 Reserved 42
9.4 Death of a Member Before Payments Commence 42
9.5 Death of a Retired Member 43
9.6 Death of a Member Before Contributions Recovered 43
9.7 Uniform Simultaneous Death Act 44
9.8 Designation of Beneficiary 44
ARTICLE X SEVERANCE BENEFITS 45
10.1 Coverage 45
10.2 Less Than Five Years of Service 45
10.3 Five or More Years of Service 45
10.4 Non -reelection 47
ARTICLE XI ADMINISTRATION OF PLAN 48
11.1 Retirement Board 48
11.2 Management of the Plan 48
11.3 Control, Amendment and Termination 49
11.4 Miscellaneous 50
ARTICLE XII METHOD OF FUNDING 51
12.1 Funding 51
12.2 Assets 51
12.3 Duties of the Funding Agent 51
ii
TABLE OF CONTENTS
(continued)
Page No.
12.4 Investment Powers 52
ARTICLE XIII RETIREMENT BENEFITS AND RIGHTS INALIENABLE 53
13.1 Inalienability 53
ARTICLE XIV MODIFICATION OR TERMINATION OF PLAN 54
14.1 Expectation 54
14.2 Amendment 54
14.3 Approval Under the Internal Revenue Code 54
14.4 Discontinuance 55
14.5 Termination 55
14.6 Distribution 55
ARTICLE XV LIMITATIONS 56
15.1 Limitation of Benefits 56
15.2 Consolidation or Merger 74
ARTICLE XVI DIRECT ROLLOVERS 75
16.1 General 75
16.2 Definitions 75
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Article I
PURPOSE
Effective as of January 1, 2008, the Weld County Board of Retirement adopted the
amended and restated Plan, as set forth herein, to continue and replace the Plan previously in
effect. The Plan and Retirement Fund are intended to meet the requirements of Sections 401(a)
and 501(a) of the Internal Revenue Code of 1986, as amended ("Code").
The Plan and the separate related Retirement Fund forming a part hereof were established
and shall be maintained for the exclusive benefit of the eligible employees of Weld County and
their beneficiaries. No part of the Retirement Fund can ever revert to the County except as
hereinafter provided, or be used for or diverted to purposes other than the exclusive benefit of the
employees of the County and their beneficiaries.
This amendment and restatement of the Plan shall not, in any way, affect the rights of
former Employees who participated in said Plan and who either retired or otherwise terminated
their employment prior to January 1, 2008. The rights, if any, of such former Employees and of
their beneficiaries and the amounts of their benefits, if any, shall continue to be governed by the
provisions of the Plan as it was in effect on December 31, 2007, or the date, if earlier, of their
retirement or termination of employment, unless specifically provided for otherwise herein, or as
the result of future amendments to this restated Plan.
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No part of the Retirement Trust Fund can revert to the Employer except as hereinafter
provided, or be used for or diverted to purposes other than the exclusive benefit of the employees
of the Employer and their beneficiaries and the payment of Plan expenses.
The provisions of this amended and restated Plan shall apply as of January 1, 2008,
provided that the provisions included to comply with the provisions of Internal Revenue Service
Notice 2007-94 are effective as of the dates specified in the law or applicable delays.
This amended and restated Plan is intended to reflect the requirements contained in the
2007 Cumulative List of Changes in Plan Qualification Requirements, as issued by the Internal
Revenue Service in Notice 2007-94. The Plan is also intended to comply with the Heroes
Earnings Assistance and Relief Tax Act of 2008.
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Article II
DEFINITIONS
2.1 Name. The retirement plan as set forth herein shall be known as the Weld County
Retirement Plan and is hereinafter referred to as the Plan.
2.2 Retirement Board. The management of the retirement system set forth in this Plan shall
be vested in a Retirement Board consisting of five members, one of whom shall be the County
Treasurer, two of whom shall be nonelected County employees, and two of whom shall be
registered electors of the County not connected with County government, to be appointed by the
Board of County Commissioners of Weld County. Such Board of Retirement shall by its own
rules establish staggered four-year terms and its Board members and their successors shall be
selected as set forth in this Section.
No member of the Board shall receive compensation for his service on the Board, but
such member may be reimbursed for reasonable expenses incurred in connection with his duties
as a member of the Board.
2.3 Definitions. Unless the context otherwise requires, the definitions and general provisions
contained in this section govern the construction of this restated Plan.
(a) "Accrued Benefit" means either a Member's Pre -June 16, 2003 Rules Accrued
Benefit under Section 7.1(a), or a Member's Post -June 15, 2003 Rules
Accrued Benefit under Section 7.1(b), subject to the limit in Section 7.1(c),
expressed in the form of payment described in Section 7.4 commencing at
Normal Retirement Date.
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(b) "Accumulated Contributions" means the sum of the Member's contributions to
this Plan (but excluding contributions (and interest thereon) used to purchase
service credit under Section 4.7 of the Plan), together with interest thereon at
such rate as may be deemed reasonable and proper by the Retirement Board in
light of the actual earnings of the Retirement Fund.
(c) "Actuarial or Actuarially Equivalent" means equality value of the aggregate
amounts expected to be received under different manners of payment based on
interest rate and mortality assumptions as defined below unless otherwise
specifically provided in the plan:
(i)
Interest rate assumption for alternative periodic benefits. The interest rate
used for purposes of computing alternative periodic forms of benefits shall be 8%
effective July 1, 2000.
(ii) Interest rate assumption for single -sum payments. Effective for the
calendar year beginning on January 1, 1984, and for each calendar year following
sequentially thereafter, the interest rate used for purposes of computing
single -sum payments shall be the immediate annuity rate (subject to adjustment as
required for deferred annuities) used by the Pension Benefit Guaranty Corporation
as of the January 1 coincident with or preceding the date as of which the amount
of the alternative form of benefit is being determined hereunder.
(iii) Mortality assumption. On and after July 1, 2000, the mortality assumption
for calculations based upon the mortality of a Member or Beneficiary shall be a
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unisex rate that is 50% male, 50% female, taken from the 1994 Group Annuity
Mortality Table. Said mortality assumption shall be used until changed by Plan
amendment.
(iv) 1994 Group Annuity Reserving Table. Notwithstanding any other Plan
provisions to the contrary, for distributions with annuity starting dates on or after
December 31, 2002, the applicable mortality table used for purposes of adjusting
any benefit or limitation under Code Sections 415(b)(2)(B), (C) or (D) is the table
described in Rev. Rul. 2001-62.
(d) "Beneficiary" means and includes the Member's estate, his dependents, persons
who are the natural objects of the Member's bounty and any persons
designated by the Member to share in the benefits of the Plan after the death
of the Member.
(e) "Board" or "Retirement Board" means the Weld County Board of Retirement as
hereinabove established.
(f) "Compensation" means the total regular compensation paid to the Covered
Employee, reflecting the normal regular salary or hourly wage rate, before any
payroll deductions for income tax, Social Security, group insurance, or any
other purpose, excluding bonuses, extra pay, overtime pay, worker's
compensation, single sum payments received in lieu of accrued vacation and
sick leave upon termination of employment or during the course of
employment, required contributions by the County under this Plan, or for
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Social Security, group insurance, retainers' fees under contract, or the like, but
including any compensation that is reduced or deferred under Sections 125,
132(f), 401(k), 403(b), 414(h) or 457 of the Code.
In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, for Plan Years
beginning on or after January 1, 2002, the annual Compensation taken into account
under the Plan shall not exceed the Economic Growth and Tax Relief Reconciliation
Act of 2001 ("EGTRRA") annual compensation limit.
The EGTRRA annual compensation limit is $200,000, as adjusted by the
Commissioner for increases in the cost of living in accordance with Code Section
401(a)(17)(B). The cost -of -living adjustment in effect for a calendar year applies to
any period, not exceeding 12 months, over which compensation is determined
(determination period) beginning in such calendar year. If a determination period
consists of fewer than 12 months, the EGTRRA annual compensation limit will be
multiplied by a fraction, the numerator of which is the number of months in the
determination period, and the denominator of which is 12.
Compensation for a Plan Year shall also include Compensation (as defined
above) but paid by the later of 2'/ months after a Member's severance from
employment or the end of the Plan Year that includes the date the Member terminated
employment, if it is a payment that, absent a severance from employment, would have
been paid to the Employee while the Employee continued in employment with the
Employer.
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Any payments not described above shall not be considered Compensation if
paid after severance from employment, even if they are paid by the later of 2'
months after the date of severance from employment or the end of the Plan Year that
includes the date of severance from employment, except, payments to an individual
who does not currently perform services for the Employer by reason of Qualified
Military Service (within the meaning of Code Section 414(u)(5)) to the extent these
payments do not exceed the amounts the individual would have received if the
individual had continued to perform services for the Employer rather than entering
Qualified Military Service.
Back pay, within the meaning of Section 1.415(c) -2(g)(8) of the Income Tax
Regulations, shall be treated as Compensation for the Plan Year to which the back
pay relates to the extent the back pay represents wages and compensation that would
otherwise be included in this definition.
(g) "County" means Weld County.
(h) "Covered Employee" means any Employee employed by the County on a
full-time basis as defined by Weld County Personnel Policies and Procedures.
(i) "Covered Employment" means the employment category for which the Plan is
maintained excluding leased employees as defined in Section 2.3(n) and
excluding Employees of the Weld County Health Department.
(j) "Credited Service" means the sum of any Prior Service and Current Service
rendered by a Covered Employee as a Member, for which credit is allowed.
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(k) "Current Service" means the period of service rendered by a Covered Employee
as a Member for which credit is allowed. Current Service will cease when a
Member's service as a full-time Employee terminates.
(1) "Disability" means a physical or mental condition which renders a Member totally
and permanently disabled, as determined by eligibility for and receipt of
disability benefits under the County's long-term disability insurance contract.
(m)"Effective Date of this Plan" means January 1, 1969. This restated Plan is
effective as of January 1, 2008.
(n) ""Employee" means any elected or appointed County officer or deputy and any
person employed by the County. Included as Employees are leased
employees within the meaning of Section 414(n)(2) of the Code. The term
`leased employee' means any person (other than an employee of the County)
who pursuant to an agreement between the County and any other person
(`leasing organization') has performed services for the County (or for the
County and related persons determined in accordance with section 414(n)(6)
of the Code) on a substantially full-time basis for a period of at least one year
and, effective January 1, 1997, such services are performed under primary
direction or control by the County. However, if such leased employees
constitute less than twenty percent (20%) of the County's nonhighly
compensated workforce within the meaning of Section 414(n)(1)(C)(ii) of the
Code, then the term `Employee' will not include those leased employees
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covered by a plan described in Section 414(n)(5) of the Code unless otherwise
provided by the terms of this Plan.
(o) "Final Average Monthly Compensation" means a Member's total Compensation
received during the 36 highest paid consecutive calendar months of Credited
Service within the last 120 months of Credited Service, divided by 36. If a
Member has less than 36 calendar months of Credited Service, his Final
Average Annual Compensation shall be his average annual Compensation
based on all his calendar months of Credited Service. If a Member takes an
unpaid leave of absence that is required under the Family Medical Leave Act
of 1993 during any part of a calendar month, such month shall not be
considered in determining the Member's Final Average Monthly
Compensation.
(p) "Funding Agent" means any insurance company or trustee appointed by the
Retirement Board as provided in Article XII.
(q) "Funding Agreement" means the insurance contract with the insurance company
or the trust agreement with the trustee as approved by the Retirement Board
for the purpose of the investment and management of Retirement Fund assets.
(r) "Insurance Company" means any insurance company or companies appointed by
the Retirement Board as provided in Article XII.
(s) "Member" means any person included in the membership of this Plan as provided
in Article Ill hereof.
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(t) "Post -June 15, 2003 Rules Benefit" means a Member's Plan benefit determined
by applying the rules of Sections 2.3, 6.2, 7.1, 7.2, 7.4, 8.1, 8.4, and 10.3 that
became effective June 16, 2003, to the Accrued Benefits of the Member that
are attributable to the Member's Credited Service commencing with any
initial date of hire, or subsequent rehire that is not included in the Pre -June 16,
2003 Rules of Benefit, on or after June 16, 2003.
(u) "Pre -June 16, 2003 Rules Benefit" means a Member's Plan benefit determined by
applying the rules of Sections 2.3, 6.2, 7.1, 7.2, 7.4, 8.1, 8.4, and 10.3 in effect
prior to June 16, 2003, to the Accrued Benefits of the Member attributable to
the Member's Credited Service (including Credited Service both before and
after June 16, 2003). For a member with an initial date of hire prior to June
16, 2003 who is subsequently rehired on or after June 16, 2003 and retains
service credit for periods prior to June 16, 2003, is entitled to a benefit
determined under the Pre -June 16, 2003 Rules Benefit.
(v) "Prior Service" means the period of service rendered by an employee prior to
January 1, 1969, for which credit is allowed pursuant to Section 4.2.
(w) "Plan Year" means the calendar year.
(x) "Qualified Military Service" means any service in the United States uniformed
services (as defined under USERRA) in accordance with Code Section
414(u)(5) if such Member is entitled to reemployment rights under USERRA
with respect to such service. For purposes of USERRA coverage only, service
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by a Member as an intermittent disaster response appointee of the National
Disaster Medical System, when federally activated or attending authorized
training in support of his Federal mission, is deemed "service in the uniformed
services," although such appointee is not a member of the "uniformed
services" as defined by USERRA.
(y) "Retired Member" means a former Member whose employment terminated by
reason of retirement or Disability and who is receiving or is entitled to
receive, or whose Beneficiary or estate is entitled to receive, benefits under
this Plan.
(z) "Retirement Benefit" means any retirement benefit provided for in Article VI
hereof.
(aa) "Retirement Trust" or "Fund" means the "Weld County Retirement Trust,"
maintained in accordance with the terms of the Retirement Trust Agreement,
as from time to time amended, which constitutes a part of this Plan.
(bb) "Trustee" means the trustee referred to in Article XII as may be selected by
the Retirement Board under the terms of the Trust Agreement.
(cc) "USERRA" Uniformed Services Employment and Reemployment Rights Act
of 1994, as amended from time to time.
(dd) "Vested Member" means a former Member whose Membership Service has
terminated by reason other than retirement or Disability and who has elected
11
to leave his Accumulated Contributions on deposit and who is entitled to
receive, or whose Beneficiary or estate is entitled to receive, benefits under
this Plan.
The masculine pronoun wherever used shall be interpreted to include the feminine, and
singular words to include the plural.
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Article III
MEMBERSHIP
3.1 Employees on January 1, 1969. Every Covered Employee of Weld County on January 1,
1969 was eligible for membership in the Plan on such date.
Every Covered Employee of Weld County on January 1, 1969 could become a Member
of the Plan on such date by properly filing with the Retirement Board prior to March 1, 1969 the
form of membership agreement furnished for that purpose. Any such person who did not file the
form of membership agreement prior to March 1, 1969 may thereafter file such membership
agreement and become a Member of the Plan on the first day of the month coincident with or
following the filing of such agreement but in such event the Member shall not be given Credited
Service under Article IV for any service prior to date he actually becomes a Member of the Plan.
3.2 Employees Hired After January 1, 1969. For each Covered Employee in Covered
Employment of Weld County hired after January 1, 1969, membership in the Plan shall be a
condition of employment, except as hereinafter provided, and such Member shall be required to
complete the form of membership agreement at the time of employment, election or
appointment. Such Covered Employee in Covered Employment shall become a Member on his
date of employment, election or appointment.
Effective December 16, 1991, all then current Covered Employees of the Weld County
Human Resources Department who were previously excluded from the Plan became Members of
the Plan and began receiving Current Service credit.
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Any individual who agrees with the County that the individual's services are to be
performed as a leased employee or an independent contractor shall not be eligible to participate
in this Plan, regardless of any classification as a common-law employee by the Internal Revenue
Service or any other governmental agency, or any court of competent jurisdiction.
3.3 Termination. Membership of any Member shall terminate if and when he shall cease to
be a Covered Employee, as defined herein, for any reason, except as provided in Section 4.4.
3.4 Withdrawal. Once a Covered Employee has become a Member of the Plan, he may not
withdraw from membership in the Plan unless he ceases to be eligible for membership or
becomes eligible for benefits under the Plan.
3.5 Leave of Absence for Qualified Military Service Notwithstanding any provision of this
Plan to the contrary: effective January 1, 2007, if any Member dies while performing Qualified
Military Service, the survivors of the Member are entitled to any additional benefits (other than
benefit accruals relating to the period of Qualified Military Service) provided under this Plan had
the Member resumed and then terminated employment on account of death.
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Article IV
CREDITED SERVICE
4.1 Credited Service, which has been defined in Section 2.3(j) as the sum of any Current
Service and any Prior Service of a Member, shall be the only service on the basis of which
benefits under this Plan shall be determined. The Credited Service of a Member shall be
determined by the Retirement Board in a nondiscriminatory manner as provided herein.
4.2 Prior Service shall include any period of continuous service, not exceeding five (5) years,
rendered by a Member as a Covered Employee prior to January 1, 1969, excluding any service
by a Member who was a Covered Employee as of January 1, 1969 and who failed to file a
membership agreement prior to March 1, 1969.
4.3 Current Service shall consist of all continuous service rendered by a Member as a
Covered Employee after January 1, 1969, prior to the earlier of his actual Retirement Date or the
date his service as a Covered Employee, as defined herein, terminates.
4.4 Limitations on Credited Service. No period of Credited Service shall be deemed to be
increased or extended by overtime.
Credited Service shall not include any period of service during which the Member is
covered under any other retirement or pension plan, to which the County makes contributions,
other than Federal Old Age Security and Disability Insurance.
Credited Service shall not include any period of time during which the Member is on an
approved leave of absence or interruption of service as provided in Section 4.5, except that
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periods of absence under Section 4.5(c) and periods of absence during which a Member is
receiving worker's compensation pursuant to law will be included as Credited Service.
4.5 Breaks in Service. A Member shall incur a Break in Service if his service as a Covered
Employee terminates and he does not return to service as an Employee within twelve (12)
months of the date such service terminated. In the event that a Member does not return to the
service of the County within the time specified by a leave of absence, such leave of absence shall
be considered a break in service. The Retirement Board shall have the power to determine when
a Break in Service shall have occurred, and such determination shall be made in a
nondiscriminatory manner. However, the following shall not be considered as a Break in
Service:
(a) A temporary lay-off because of an illness or for purposes of economy, suspension,
or dismissal, followed by reinstatement, reemployment or reappointment
within one year.
(b) A formal leave of absence followed by reinstatement, reemployment or
reappointment within one year after termination of the leave of absence.
(c) Effective December 12, 1994, a leave of absence on account of a period of
"qualified military service" in the uniformed services of the United States
(within the meaning of Section 414(u)(5) of the Code, followed by a return to
the service of Weld County within the time period required under federal rules
(i.e., 14 days for a leave of less than 181 days, 90 days for a leave of more
than 180 days). Notwithstanding any provision of this Plan to the contrary,
16
contributions, benefits and service credit with respect to qualified military
service will be provided in accordance with Section 414(u) of the Code.
(d) A failure to gain reelection in the case of an elected County official, followed by
election to any County office or employment as an Employee by the County
within eight years.
(e) A failure to gain reappointment in the case of an appointed official or deputy
followed by appointment to any Weld County office or employment as an
Employee by the County within eight years.
(f) A leave of absence pursuant to the Family and Medical Leave Act of 1993.
Except, as otherwise provided in Section 4.5(c) above, Credited Service shall
not include the time during which a Member is not in active service of the
County for any of the reasons stated in this Section 4.5, except as provided by
Section 4.7.
Upon incurring a Break in Service and receiving a distribution of his
Accumulated Contributions, a Member shall lose all his prior Credited Service. If a
Member returns to service as an Employee prior to incurring a Break in Service and
repays the Fund, within twelve (12) months of rehire, any amounts received because of
his prior termination with interest pursuant to Section 2.3(b) from the date received to the
date of repayment, the prior Credited Service for which such amounts were received shall
be restored.
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4.6 Reemployment of Retired Members. If a Retired Member is reemployed by the County
as a full-time Covered Employee, no retirement payments shall be made during the period of
such reemployment. Upon the subsequent termination of employment by such a Member, the
Member shall be entitled to receive a Retirement Benefit based on his total Credited Service
prior to the date of his previous Retirement, during the period of his reemployment and in the
case of a disabled Member, his Credited Service while disabled. In the case of reemployment of
a Retired Member who received any retirement payments prior to his reemployment, the
Retirement Benefit payable upon his subsequent Retirement shall be reduced by the Actuarial
Equivalent of the payments, other than Disability Pension payments, he received.
4.7 Purchase of Service Credit Relating to Noncovered Employment.
(a) A Member may purchase up to ten (10) years of service credit for any period of
full-time, nonvested previous employment with any public or private
employer in the United States or its territories, subject to the following
conditions:
(i) The Member is a Covered Employee on October 1, 1996;
(ii) The irrevocable election to purchase service credit must be made by
December 15, 1996;
(iii) The Member must provide certification from the previous employer as to
the dates of employment;
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(iv) The Member must provide certification from any retirement program
covering such employment that the service credit to be purchased has not vested
with that program; and
(v) The Board shall establish appropriate rules by which a Member may
purchase service credit where certification cannot be obtained, such as an
employer no longer being in existence.
(b) One month of service credit may be purchased for each full month of full-time,
nonvested, noncovered employment.
(c) For purposes of the lump sum death benefits provided under Article IX, the
accumulated value in the separate contribution account and pick-up account
(described in Sections 4.7(e)(i)(B) and 4.7(e)(ii)(A)) shall be in addition to the
amounts provided under Article IX.
(d) For purposes of the refund of his Accumulated Contributions for a Member who
meets the requirements for a deferred Retirement Benefit under Section 10.3,
the accumulated value in the separate contribution account and pick-up
account (described in Sections 4.7(e)(i)(B) and 4.7(e)(ii)(A)) shall be in
addition to the amounts provided under Section 10.3.
(e) A total of ten (10) years of service credit may be purchased in the following
manner at the election of the Member:
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(i) Up to five (5) years of service credit may be purchased by lump -sum
payment. Payment for lump -sum service credit purchases must be made with
after-tax contributions and received in full by December 31, 1996. Service credit
purchased by lump -sum payment shall be credited to the Member upon receipt of
such lump -sum payment.
However, in the event such lump -sum payment would violate the
limitation of Section 415 of the Code, the Member shall instead make installment
payments, using after-tax contributions, over the shortest period of time possible
to avoid violation of such limitation. The Member shall not be charged interest
on installment payments which are made under this Section 4.7(e)(i). Service
credit purchased by installment payments under this Section 4.7(e)(i) shall be
credited to the Member in prorated increments as each installment payment is
received. After installment payments are completed, they may not be withdrawn.
Service credit purchases made under this Section 4.7(e)(i) shall be subject
to the following:
(A) The cost to purchase one month of service credit for noncovered
employment shall be 9% of monthly Compensation, determined as of
October 1, 1996.
(B) A separate contribution account shall be established for each
Member who elects to make a service credit purchase under this Section
4.7(e)(i). The lump sum payment and/or the installment payments shall be
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credited to this separate contribution account. Interest shall be credited on
the same basis as it is to the Member's Accumulated Contributions.
(C) If a Member becomes disabled or leaves Covered Employment
prior to completion of the service credit purchase, he shall receive service
credit only to the extent installment payments have been made, in
accordance with this Section 4.7(e)(i).
(D) Upon the death of a Member prior to completion of the service
credit purchase, the Beneficiary may only receive death benefits based on
the Member's Credited Service, including the purchased service under this
Section 4.7(e)(i) at the time of his death. Spousal consent must be
obtained for any nonspouse Beneficiary.
(E) Purchased service credit, once credited to the Member, shall be
treated as Credited Service for all purposes except for vesting as
determined under Article X, and eligibility for Early Retirement under
Section 6.2.
(ii) Up to ten (10) years of service credit, or ten (10) years less the amount of
service credit otherwise purchased under Section 4.7(e)(i), may be purchased by
pick-up contribution. The cost to purchase one month of service credit by pick-up
contribution shall be 9% of monthly Compensation, determined at the time each
pick-up contribution is made. All such contributions shall be picked up and paid
by the County pursuant to a binding agreement entered into with the Member, and
21
as provided in Section 414(h) of the Code. The Member's gross income will be
reduced by the amount of the contributions picked up by the County. Each
Member contribution picked up by the County shall be allocated to the Member's
pick-up account (described in Section 4.7(e)(ii)(A)) in the same manner as if it
had been paid directly to the Plan by the Member.
Service credit purchases made under Section 4.7(e)(ii) shall be subject to
the following:
(A) A separate Member pick-up account shall be established for each
Member who elects to make service credit purchases under this Section
4.7(e)(ii).
(B) Purchased service credit shall be credited to the Member as pick-
up contributions under this Section 4.7(e)(ii) are made. If a Member
becomes disabled, or leaves Covered Employment prior to completion of
the service credit purchase, he shall receive service credit only to the
extent installment payments have been made, in accordance with Section
4.7(e)(ii).
(C) Upon the death of a Member prior to completion of the service
credit purchase, the Beneficiary may only receive death benefits based on
the Member's Credited Service, including the purchased service under this
Section 4.7(e)(ii) at the time of his death. Spousal consent must be
obtained for any nonspouse beneficiary.
22
(D) Purchased service credit, once credited to the Member, shall be
treated as Credited Service for all purposes except for vesting as
determined under Article Article X, and eligibility for Early Retirement
under Section 6.2.
23
Article V
CONTRIBUTIONS
5.1 Member Contributions. During his period of Current Service in the Plan prior to
January 1, 1984, every Member shall contribute to the Plan by means of payroll deductions an
amount equal to 4% of his monthly Compensation plus 2% of that portion of such monthly
Compensation which is in excess of $400.
From January 1, 1984 through December 31, 1986, every Member shall, during his
period of Current Service in the Plan, contribute to the Plan an amount equal to 5.5% of his
monthly Compensation. From January 1, 1987 through December 31, 2004, every Member
shall, during his period of Current Service in the Plan, contribute to the Plan an amount equal to
6% of his monthly Compensation. From January 1, 2005 through December 31, 2005, every
Member shall, during his period of Current Service in the Plan, contribute to the Plan an amount
equal to 7% of his monthly Compensation. From January 1, 2006 through December 31, 2006,
every Member shall, during his period of Current Service in the Plan, contribute to the Plan an
amount equal to 7.5% of his monthly Compensation. From January 1, 2006 through
December 31, 2007, every Member shall, during his period of Current Service in the Plan,
contribute to the Plan an amount equal to 8% of his monthly Compensation. From January 1,
2008 through December 31, 2008, every Member shall, during his period of Current Service in
the Plan, contribute to the Plan an amount equal to 8.5% of his monthly Compensation. After
December 31, 2008, every Member shall, during his period of Current Service in the Plan,
contribute to the Plan an amount equal to 9% of his monthly Compensation.
24
All such contributions after December 31, 1983, shall be picked up and paid by the
County as provided in Section 414(h) of the Code with the Member's gross income being
reduced by the amount of the contributions picked up by the County.
For purposes of the Plan, the Member's contribution picked up by the County under this
Section 5.1 shall be allocated to the Member's Contribution Account in the same manner as if it
had been paid directly to the Plan by the Member.
No Member shall be required or permitted to make contributions to this Plan, and the
County shall not make contributions for such Member, during any period of employment for
which he is not receiving credit for Current Service.
5.2 County Contributions. The County will, from time to time, at least annually, make
contributions to the Fund in an amount not to exceed the contributions of the Members as
provided in Section 5.1, less any benefit payments payable pursuant to the County's qualified
governmental excess benefit arrangement as provided by Section 415(m) of the Code. The
County expects to continue such contributions to the Plan, but assumes no responsibility to do so
and reserves the right to suspend or to reduce contributions at any time.
The contributions from both the county and the Members for the increase from the 8% to
9% contribution level shall be earmarked for retiree cost of living benefits.
Notwithstanding any other provisions hereof or any amendment hereto to the contrary, at
no time shall any assets of the Fund revert to, or be recoverable by the County or be used for, or
diverted to, purposes other than for the exclusive benefit of Members, Retired Members, Vested
Members, or their Beneficiaries under the Plan except such funds which upon termination of the
25
Plan are in excess of the amount required to fully fund the Plan and are due to erroneous
actuarial calculations.
5.3 Application of Forfeitures. Any amount forfeited because of termination of employment
of a Member prior to his having acquired a fully vested right to Retirement Benefits, because of
death of any Member or for any other reason, shall not be applied to increase the benefits
provided by the Plan unless such benefits are increased by appropriate amendment, as provided
in Article XIV.
26
Article VI
RETIREMENT DATES
6.1 Normal Retirement. The Normal Retirement Date of a Member shall be the first day of
the calendar month coincident with or next succeeding his 65th birthday.
6.2 Early Retirement.
(a) Regular Early Retirement. A Member who has attained the age of 55 years and
has completed at least five (5) years of Credited Service shall be eligible for
Regular Early Retirement as of the first day of any calendar month.
(b) Special Early Retirement.
(i) A Member entitled to a Pre -June 16, 2003 Rules Benefit who has attained
the age of 55 years and has completed at least eight years of Credited Service
shall be eligible for Special Early Retirement as of the first day of any calendar
month with respect to such benefit.
(ii) A Member entitled to a Post -June 15, 2003 Rules Benefit who has attained
the age of 55 years and has completed at least twenty years of Credited Service
shall be eligible for Special Early Retirement as of the first day of any calendar
month with respect to such benefit.
(c) Rule of 75 Early Retirement. A Member entitled to a Pre -June 16, 2003 Rules
Benefit shall be eligible for the Rule of 75 Early Retirement as of the first day of any
calendar month if his employment terminates after he has attained the age of 55 and
27
the sum of his age plus his Credited Service at termination equals 75 or more with
respect to such benefit.
(d) Thirty Year Early Retirement. A Member entitled to a Post -June 15, 2003 Rules
Benefit who has attained the age of 55 years and has completed at least thirty years of
Credited Service shall be eligible for Thirty Year Early Retirement as of the first day
of any calendar month with respect to such benefit following his termination of
employment.
6.3 Delayed Retirement. A Member may continue in the employment of the County after his
Normal Retirement Date. If the retirement of a Member is delayed, his "Delayed Retirement
Date" shall be the first day of the month, coincident with or next following the date of his actual
retirement. As a condition precedent to continuance in employment beyond the Normal
Retirement Date, the Member shall file with the Retirement Board a written designation of
Beneficiary, whether or not the Member elects one of the optional benefits in accordance with
Article VIII. Distribution of a Member's Accrued Benefit must be made or must commence no
later than the Required Beginning Date. The Member's Required Beginning Date is April 1 of
the calendar year following the later of the calendar year in which (a) the member attains age
70'/2 or (b) retires.
6.4 Disability Retirement. If it is established by the Retirement Board that a Member is
disabled, as defined herein, then such Member shall be eligible for a Disability Retirement
Benefit. The Disability Retirement Date shall be the first day of the month coincident with or
next following the date upon which the Disability is determined by the Board to have occurred,
or his date of termination of employment, if later.
28
Payment of a Disability Retirement Benefit shall commence as of the first day of the
month next following the Normal Retirement Date, or if later, the first day of the month
following the date payments cease under the County's long-term disability insurance contract.
If the disabled Member's Disability ceases prior to his Normal Retirement Date, and he is
not reemployed by the County and if he has met the requirements for Early Retirement or a
Deferred Vested Retirement Benefit as of the date his Disability ceased, he shall be entitled to
receive, commencing on the first day of a month following his Normal Retirement Date, a
Retirement Benefit equal in amount to the Early or Deferred Vested Retirement Benefit to which
he would have been entitled, as of the date his Disability ceased, based on his Final Average
Monthly Compensation on his Disability Retirement Date and his Credited Service on his date of
recovery from Disability (including the period of his Disability).
If Disability ceases before a disabled Member attains his Normal Retirement Date and the
Member is reemployed by the County, the benefit payable upon his subsequent termination or
Retirement shall be determined in accordance with the provisions of Section 7.1 hereof, based on
his Final Average Monthly Compensation and his Credited Service at termination or Retirement
(including Credited Service for the period of his Disability).
6.5 Retirement Date. A Member's "Retirement Date" shall be his Normal Retirement Date,
his Early Retirement Date, his Delayed Retirement Date, or his Disability Retirent Date,
whichever is applicable.
6.6 Latest Date for Commencement of Payment of Benefits. Distribution of a Member's
Accrued Benefit must be made or must commence no later than the Required Beginning Date.
29
The Member's Required Beginning Date is April 1 of the calendar year following the later of the
calendar year in which the Member (a) attains age 70'/2 or (b) retires.
With respect to distributions under the Plan made for calendar years beginning on or after
January 1, 2005, the Plan shall apply the minimum distribution requirements of Code Section
401(a)(9) in accordance with the final regulations under Code Section 401(a)(9) which were
issued in June 2004, notwithstanding any provision of the Plan to the contrary.
All required distributions on or after January 1, 2005 shall be determined and made in
accordance with the final regulations under Code Section 401(a)(9), including the minimum
distribution incidental benefit requirements of the final regulations.
30
Article VII
RETIREMENT BENEFITS
7.1 Normal or Delayed Retirement.
(a) Pre -June 16, 2003 Rules Accrued Benefit. Upon retirement at or after his Normal
Retirement Date, a Retired Member, or a Vested Member, who is entitled to a
Pre -June 16, 2003 Rules Benefit, shall be entitled to a monthly Retirement
Benefit for ten years certain and life thereafter, equal to 2.75% of such
Member's Final Average Monthly Compensation multiplied by the total
number of years of the Member's Credited Service (including fractional
years). In determining the Pre -June 16, 2003 Rules Benefit, Credited Service
attributable to periods of employment both before and after June 16, 2003
shall be considered.
(b) Post -June 15, 2003 Rules Accrued Benefit. Upon retirement at or after his Normal
Retirement Date, a Retired Member, or a Vested Member, who is entitled to a
Post -June 15, 2003 Rules Benefit, shall be entitled to a monthly Retirement
Benefit for his life equal to 2% of the Member's Final Average Monthly
Compensation multiplied by the total number of years of the Member's
Credited Service (including fractional years).
(c) The Normal Pension shall not be more than 82.5% of the Member's average
monthly Compensation during the 12 highest -paid consecutive calendar
31
months of Credited Service within the last 120 months of Credited Service, or
less than $25 multiplied by the Member's Credited Service.
7.2 Early Retirement.
(a) Regular Early Retirement. A vested Member eligible for Regular Early
Retirement may elect to retire and have his payments commence as of his
Early Retirement Date. The monthly payment shall be either: (i) his Accrued
Benefit as of his date of retirement, as determined pursuant to Sections 7.1(a)
and 10.3, reduced by .002083 times the number of months by which his Early
Retirement Date precedes his Normal Retirement Date (2' h% per year), or (ii)
his Accrued Benefit as of his date of retirement, as determined pursuant to
Section 7.1(b) and 10.3, reduced by .004167 times the number of months by
which his Early Retirement Date precedes his Normal Retirement Date (5%
per year).
(b) Special Early Retirement. A vested Member eligible for Special Early Retirement
may elect to retire and have his payments commence as of his Early
Retirement Date. The monthly payment shall be either: (i) his Accrued Benefit
as of his date of retirement, as determined pursuant to Section 7.1(a), reduced
by .002083 times the number of months, if any, by which his Early Retirement
Date precedes his 62"a birthday (2 1/2% per year), or (ii) his Accrued Benefit as
of his date of retirement, as determined pursuant to Section 7.1(b), reduced by
.002083 times the number of months, if any, by which his Early Retirement
Date precedes his Normal Retirement Date (2 1/2% per year).
32
(c) Rule of 75 Early Retirement. A Member who meets the requirements for a Rule
of 75 Early Retirement Pension shall receive a monthly amount computed as
for a Normal Pension under Section 7.1(a) considering his Credited Service to
the date of his actual retirement, payable without reduction for early
commencement with payments to commence as of his Rule of 75 Early
Retirement Date.
(d) Thirty Year Early Retirement. A Member who meets the requirements for a
Thirty Year Early Retirement Pension shall receive a monthly amount
computed as for a Normal Pension under Section 7.1(b) considering his
Credited Service to the date of his actual retirement, payable without
reduction for early commencement with payments to commence as of his
Thirty Year Early Retirement Date.
7.3 Disability Retirement. A Member who is disabled, as defined herein, shall be entitled to
a Disability Retirement Benefit equal to his Accrued Benefit, as determined pursuant to
Section 7.1, based upon his Final Average Annual Compensation on his Disability Retirement
Date, and Credited Service which such Member would have accrued had he remained in the
employment of the County until his Normal Retirement Date. The Disability Retirement Benefit
shall be payable in accordance with Sections 6.4 and 7.1.
If the requirements of Section 7.9 are satisfied, a Member who, by reason of Disability, is
separated from service as a public safety officer with the County, may elect to have payment
made directly to the provider for qualified health insurance premiums by deduction from his
Disability Pension, after December 31, 2006, in accordance with Code Section 402(1).
33
7.4 Payment of Benefits. The basic monthly Retirement Benefits, computed as set forth
above, shall be paid in equal monthly payments commencing one month after the Retirement
Date, and with respect to a Retired Member's Pre -June 16, 2003 Rules Benefit, continuing at
monthly intervals for a period of 119 additional months and for the Retired Member's lifetime
thereafter. With respect to a Retired Member entitled to a Post -June 15, 2003 Rules Benefit,
payments shall continue at monthly intervals for the Retired Member's lifetime.
As provided in Section 4.6, Retirement Benefits shall not be paid to any Retired Member
during or for any period of employment subsequent to his actual Retirement Date during which
he is receiving Compensation and is considered a Covered Employee of the County.
7.5 Payment of Small Benefits. If the single sum value of the monthly Retirement Benefit
payable to a Retired Member does not exceed $1,000 at the time of his retirement, the
Retirement Board shall pay the Retired Member an immediate single sum equal to the Actuarial
Equivalent of such Retirement Benefit. Such single sum payment shall be in lieu of all monthly
benefit payments.
If the single sum value of the monthly Retirement Benefit payable to a Retired Member
exceeds $1,000 but the monthly Retirement Benefit amount payable to a Retired Member is less
than $100.00, the Retirement Board shall make Actuarially Equivalent Retirement Benefit
payments quarterly, semi-annually, or annually, as elected by the Retired Member.
7.6 Accrued Credits and Vested Benefits Under the Previous Plan Preserved. The
restatement of the previous plan by this Plan shall not operate to exclude, diminish, limit or
restrict previous plan benefits, if any, in the course of payment by the Funding Agent under said
34
previous plan, to any person on January 1, 1994, shall be continued by the Funding Agent under
the Funding Agreement forming a part of this Plan, in the same manner, undiminished,
preserved, and fully vested under this Plan, except as provided in Section 7.7 herein.
The eligibility for, and amount of, any benefit of any kind, payable commencing after
December 31, 2007 under this Plan to or for any person who was a Member of the previous plan
and who became a Member of this restated Plan as of January 1, 2008, shall be determined under
the provisions of this Plan.
7.7 Increased Benefits for Retired Members and Beneficiaries. The Retirement Board may
from time to time, but not more often than annually, adjust benefit payments to retired Members
and Beneficiaries as increases and decreases occur in the Bureau of Labor Statistics Consumer
Price Index for the United States City Average for Urban Wage Earners and Clerical Workers,
all items. Such adjustment shall be effective as of the January 1 coincident with or following
such determination by the Retirement Board. Such adjustment shall not be construed as being
retroactive to the Member's Retirement Date. The adjustments shall not exceed a maximum
determined by multiplying the current monthly benefit by the percentage change (to the nearest
one-half of one percent) in such Average Consumer Price Index from the later of: (a) October 1,
1989, or (b) the date used in the last adjustment under this Section, to the same index as of
October 1 of the year preceding the effective date of the current adjustment. All adjustments
shall be made only upon the advice of the actuary employed by the Board; provided, however,
that all adjustments shall be subject to the availability of funds for that purpose and that no
decrease shall reduce any benefit below the amount determined as of a Member's Retirement
Date.
35
7.8 Increased Benefits for Disabled Members. As of January 1, 1994, all Disabled Members
who have not begun receiving retirement benefits from the Plan will have their Accrued Benefit
increased by 3% for each full year the Member's date of disability precedes January 1, 1994.
7.9 Direct Payment of Qualified Health Insurance Premiums.
(a) A Member who is an eligible retired public safety officer and who wishes to have
direct payments made toward the Member's qualified health insurance
premiums from the Member's Disability Pension or Pension must make a
written election in accordance with Code Section 4020), on the form provided
by the Plan, as follows:
(i) The election must be made after the Member separates from service as a
public safety officer with the County;
(ii) The election shall only apply to distributions from the Plan after
December 31, 2006, and to amounts not yet distributed to the eligible retired
public safety officer;
(iii) Direct payments for an eligible retired public safety officer's qualified
health insurance premiums can only be made from the Member's Disability
Pension or Pension from the Plan; and
(iv) The aggregate amount of the exclusion from an eligible retired public
safety officer's gross income is $3,000 per calendar year.
(b) For purposes of this Section, the following definitions shall apply:
36
(i) A "public safety officer" is a Member serving a public agency in an
official capacity, with or without compensation, as a law enforcement officer,
firefighter, chaplain, or as a member of a rescue squad or ambulance crew.
(ii) An "eligible retired public safety officer" is a Member who, by reason of
Disability or attainment of Normal Retirement Date, is separated from service as a
public safety officer with the County.
(iii) "Qualified health insurance premiums" are for coverage for the eligible
retired public safety officer, the eligible retired public safety officer's spouse, and
dependents by an accident or health insurance plan or a qualified long-term care
insurance contract. The health plan does not have to be sponsored by the County.
(c) The Retirement Board shall establish such rules as are necessary to implement the
provisions of this Section.
37
Article VIII
OPTIONAL BENEFITS
8.1 General. Subject to such uniform rules and regulations as the Retirement Board may
prescribe, a Member or Vested Member may, in lieu of the basic Retirement Benefits provided in
Article VII, elect one of the following forms of Retirement Benefits which shall be the Actuarial
Equivalent of the benefit to which he would otherwise be entitled. The Member or Vested
Member must make any election of an optional benefit in writing, and such election must be
filed with the Retirement Board at least 30 days prior to the due date of the first payment of
Retirement Benefits under the Plan. The election of an optional benefit may be changed at any
time prior to 30 days preceding the due date of the first payment of Retirement Benefits under
the Plan.
8.2 100% Joint and Survivor Benefit. The Member may elect a 100% Joint and Survivor
Benefit which provides reduced monthly Retirement Benefit payments during the Retired
Member's life, and, upon his death after retirement, continues payments in the same reduced
amount to a designated Beneficiary during the life of such Beneficiary.
8.3 50% Joint and Survivor Benefit. The Members may elect a 50% Joint and Survivor
Benefit which provides reduced monthly Retirement Benefit payments during the Retired
Member's life, and, upon his death after retirement, continues payments in an amount equal to
one-half of the amount of such reduced payment to the designated Beneficiary during the life of
such Beneficiary.
38
8.4 Life and Term Certain Benefit. The Member may elect a Life and Term Certain Benefit
which provides an adjusted monthly Retirement Benefit payment during the Retired Member's
life, and upon his death after retirement within 5, 10, or 15 years, as elected by the Member,
continues payments in the same amount for the balance of such term certain to a designated
Beneficiary. However, the term certain elected may not exceed the life expectancy of the
Member and his designated Beneficiary.
8.5 Single Life Benefit. The Member may elect a Single Life Benefit which provides
increased monthly Retirement Benefit payments during the Retired Member's life, and, upon his
death after retirement, no additional payments will be made.
8.6 Spousal Consent for Retirement Benefit. If a Member or Vested Member is married at
the time his Retirement Benefits commence, and he elects any form of benefit other than the
50% Joint and Survivor Benefit option with his spouse named as Beneficiary, such election will
not become effective unless his spouse (if he has a spouse who can be located) consents in
writing to such election, acknowledges the effect of such election and has such consent and
acknowledgment witnessed by a Plan representative or a notary public. A properly completed
benefit election form (furnished by the Retirement Board) must be returned to the Retirement
Board at least 30 days prior to the Member's benefit commencement date. If the Member files
another election form, after the earlier form and prior to his benefit commencement date, the
earlier form shall be deemed annulled. Once benefit payments have commenced under any
optional joint and survivor form of benefit, the designated Beneficiary may not be changed.
However, the designated Beneficiary may be changed after payments have commenced under the
basic form of benefit or under the optional Single Life Benefit form.
39
8.7 Limitations. Notwithstanding anything herein to the contrary, if the actuarial value of a
Member's benefit under any above option where the Beneficiary is not his spouse, is fifty
percent (50%) or less of the value of the otherwise payable to the Member, the optional benefits
shall be adjusted so that the value of the Member's benefit under the option will be equal to more
than fifty percent (50%) of the value of the benefit otherwise payable to the Member.
Furthermore, where the Member's Beneficiary is not his spouse, the optional benefits must be
paid in a manner that conforms with the minimum distribution incidental benefit rule in Code
Section 1.401(a)(9)-6.
40
Article IX
DEATH BENEFITS
9.1 Death of an Active Member Before Normal Retirement Date. In the event a Member of
the Plan dies while accruing Current Service, the following death benefits shall be payable:
(a) If such Member is married at his death, one of the following benefits shall be
payable to his spouse, at her sole option.
(i) Two (2) times the amount of his Accumulated Contributions as of the date
of death, payable immediately; or
(ii) A monthly benefit payable for life in an amount equal to 75% of the
Member's Accrued Benefit on his date of death. Such death benefit shall
commence on the first day of the month coincident with or following the
Members' death.
(b) If such Member is not married at his death, there shall be paid to the Beneficiary
designated by him if said Beneficiary is living, or otherwise to the Member's
estate, two (2) times the amount of his Accumulated Contributions as of his
date of death.
9.2 Death of a Vested Member Before Payments Commence. In the event that a Vested
Member dies prior to the commencement of his Retirement Benefit, the following death benefits
shall be payable:
41
(a) If such Vested Member is married at his death, one of the following benefits shall
be payable to his spouse, at her sole option.
(i) Two (2) times the amount of his Accumulated Contributions as of the date
of death, payable immediately; or
(ii) A monthly benefit payable for life in an amount equal to 75% of the
Vested Member's Accrued Benefit on his date of death. Such death benefit shall
commence on the first day of the month coincident with or following the Vested
Member's death.
(b) If such Vested Member is not married at his death, there shall be paid to the
Beneficiary designated by him if said Beneficiary is living, or otherwise to the
Vested Member's estate, two (2) times the amount of his Accumulated
Contributions as of his date of death.
9.3 'Reserved' .
9.4 Death of a Member Before Payments Commence. In the event the Member dies before
distribution of his interest begins under Sections 9.1, or 9.2, distribution of the Member's entire
interest shall be completed by December 31 of the calendar year containing the fifth anniversary
of the Member's death except to the extent that an election is made to receive distributions in
accordance with (a) or (b) below:
(a) if any portion of the Member's interest is payable to a Beneficiary, distributions
may be made over the life or over a period certain not greater than the life
42
expectancy of the Beneficiary commencing on or before December 31 of the
calendar year immediately following the calendar year in which the Member
died;
(b) if the Beneficiary is the Member's surviving spouse, the date distributions are
required to begin in accordance with (a) above shall not be earlier than the
later of (1) December 31 of the calendar year immediately following the
calendar year in which the Member died and (2) December 31 of the calendar
year in which the Member would have attained age 70' .
9.5 Death of a Retired Member. In the event a Retirement Member dies while receiving
Retirement Benefit payments, his death benefit, if any, will be determined by the form of
Retirement Benefit being paid.
9.6 Death of a Member Before Contributions Recovered. At the termination of Retirement
Benefit payments following the death of a Retired Member, should the total of such payments
made to the Member and his Beneficiary be less than the amount of the Member's Accumulated
Contributions at the date his Retirement Benefit payments commenced, the difference shall be
paid in a single sum to the Beneficiary, if living, or to the estate of the last survivor of the
Member or his Beneficiary.
At the termination of death benefit payments made to the surviving spouse of a deceased
married Active or Vested Member, should the total of such payments made to the surviving
spouse be less than the amount of the Member's Accumulated Contributions at the date the death
43
benefit payments commenced, the difference shall be paid in a single sum to the estate of the
surviving spouse.
9.7 Uniform Simultaneous Death Act. The provisions of any law of the State of Colorado
providing for the distribution of estates under the Uniform Simultaneous Death Act, when
applicable, shall govern the distribution of money payable under this Plan.
9.8 Designation of Beneficiary. If the Member or Vested Member is married and designates
any person other than his spouse as the Beneficiary for any death benefit, such designation will
not become effective unless his spouse (if he has a spouse who can be located) consents in
writing to such designation, acknowledges the effect of such designation and has such consent
and acknowledgment witnessed by a Plan representative or a notary public. Such designation
shall be made on the form furnished by the Retirement Board, and may at any time and from
time to time be changed or revoked without notice to the Beneficiary or Beneficiaries (except as
required with respect to the Member's spouse under the preceding sentence), and shall not be
effective unless and until filed with the Retirement Board.
44
Article X
SEVERANCE BENEFITS
10.1 Coverage. Benefits shall be paid to a Member under this Article if his Current Service
terminates for reasons other than retirement, disability or death.
10.2 Less Than Five Years of Service. In the event a Member terminates employment prior to
his Normal Retirement Date, and he has less than five (5) years of Credited Service, the only
benefit to which he shall be entitled under this Plan shall be a refund of his Accumulated
Contributions as of the date of such termination. If the value of the Accumulated Contributions
at the time of termination of employment does not exceed $1,000, the Accumulated
Contributions shall be refunded to the Member as soon as administratively practicable after the
Member's last date of employment. If the value of the Accumulated Contributions at the time of
a Member's termination of employment exceeds $1,000, the Member may elect to receive a
refund of his Accumulated Contributions at any time after termination of Plan membership up
until his Normal Retirement Date.
10.3 Five or More Years of Service. In the event a Member terminates prior to his Normal
Retirement Date, and he has five (5) or more years of Credited Service, he may elect either (a) to
leave his Accumulated Contributions on deposit in the Fund and become a Vested Member, or
(b) to receive, in lieu of all other benefits, a refund of his Accumulated Contributions. If such a
Member fails to elect either (a) or (b) within 90 days after the date of termination, he shall be
deemed to have elected to leave his Accumulated Contributions on deposit and to become a
Vested Member. A Vested Member shall be entitled to a deferred Retirement Benefit that shall
45
be payable at the Vested Member's Normal Retirement Date. The vesting of a Member's
Accrued Benefit shall be determined on his date of termination in accordance with the following
schedule:
Completed Years
Of Credited Service
Less than 5
or more
Percent of Accrued
Benefit Vested
0%
100%
If the single sum value of the deferred monthly Retirement Benefit payable to a Vested
Member does not exceed $1,000 at the time of his termination of Plan membership, the
Retirement Board shall pay the Vested Member a single sum equal to the Actuarial Equivalent of
such deferred Retirement Benefit. Such single sum payment shall be in lieu of all monthly
benefit payments.
A Vested Member may elect, at any time prior to his Normal Retirement Date, to receive,
in lieu of all other benefits, a refund of his Accumulated Contributions as of the date of the
refund.
If a Member does not elect an earlier distribution date, the deferred Retirement Benefit
shall be payable at the Vested Member's Normal Retirement Date. In lieu of receiving the
deferred Retirement Benefit upon his Normal Retirement Date, the Vested Member may elect to
receive a reduced Retirement Benefit beginning upon the first of any month subsequent to his
attainment of age 55. The reduction shall be determined as provided under Section 7.2(a) or (b),
whichever is applicable.
46
10.4 Non -reelection. In the event that a Member who is an elected officer of the County is not
reelected to the same office or elected to another County office or is not employed by the County
within thirty (30) days after his term of office expires, then the provisions of Section 10.3 shall
apply to him, except that the minimum of five (5) years of Service shall not be required.
47
Article XI
ADMINISTRATION OF PLAN
11.1 Retirement Board. The management of the retirement system shall be vested in the
Retirement Board according to the provision in Part 1, Title 24, Article 54, Colorado Revised
Statutes, as amended, as such Retirement Board is established in Section 2.2 herein.
11.2 Management of the Plan. The Retirement Board shall have all powers necessary to effect
the management and administration of the Plan in accordance with its terms, including, but not
limited to, the following:
(a) To establish rules and regulations for the administration of the Plan, for managing
and discharging the duties of the Board, for the Board's own government and
procedure in so doing, and for the preservation and the protection of the
Funds.
(b) To interpret the provisions of the Plan and to determine any and all questions
arising under the Plan or in connection with the administration thereof. A
record of such action and all other matters properly coming before the Board
shall be kept and preserved.
(c) To determine all considerations affecting the eligibility of any employee to be or
become a Member of the Plan.
48
(d) To determine the amount of the Member's contributions to be withheld by the
County in accordance with the Plan and to maintain such records of
Accumulated Contributions as are necessary under the Plan.
(e) To determine the Credited Service of any Member and to compute the amount of
Retirement Benefit, or other sum, payable under the Plan to any person.
(f) To authorize and direct all disbursements of Retirement Benefits and other
benefits under the Plan and payment of Plan expenses.
(g) With the advice of its Actuary to adopt, from time to time for purposes of the
Plan, such mortality and other tables as it may deem necessary or appropriate
for the operation of the Plan.
(h) To make valuations and appraisals of Fund assets held under the Plan, and, with
the advice of the actuary, to determine the liabilities of the Plan.
(i) To create reserves from such assets for any lawful purpose.
(j) To employ such counsel and agents, and to obtain such clerical, medical, legal,
accounting, investment advisory, custodial and actuarial services as it may
deem necessary or appropriate in carrying out the provisions of the Plan.
11.3 Control, Amendment and Termination. The Retirement Board shall have the powers set
forth in the Colorado Revised Statutes, as amended, and any powers set forth in Article XII and
Article XIV herein.
49
11.4 Miscellaneous. The decision of the Retirement Board and any action taken by it in
respect to the management of the Plan shall be conclusive and binding upon any and all
employees, officers, former employees and officers, Members, Retired Members, Vested
Members, their Beneficiaries, heirs, distributees, personal representatives, administrators and
assigns and upon all other persons whomsoever. Neither the establishment of this Plan nor any
modifications thereof or any action taken thereunder or any omission to act, by the Retirement
Board or its members shall be construed as giving to any Member or other person any legal or
equitable right against the County or any officer or employee thereof or against the Retirement
Board or its members.
50
Article XII
METHOD OF FUNDING
12.1 Funding. The Retirement Board shall contract with an insurance company, a trustee or
such other funding vehicle, as authorized by Colorado law to hold and invest the Retirement
Fund. The Retirement Board shall have the power to change such funding at any time upon
notice required by the terms of the Funding Agreement.
12.2 Assets. All of the assets of the Plan shall be held by the Funding Agent acting under a
Funding Agreement for use in providing the benefits under the plan. No part of the said corpus
or income shall be used for or diverted to purposes other than the exclusive benefit of the
Members, Retired Members, Vested Members, their Beneficiaries or estates under the Plan, prior
to the satisfaction of all liabilities hereunder with respect to them, except such funds which, upon
termination of the Plan, are in excess of the amount required to fully fund the Plan and are due
solely to erroneous actuarial calculations. No person shall have any interest in or right to any
part of the assets of the Fund except as and to the extent expressly provided in the Plan.
12.3 Duties of the Funding Agent. The duties of the Funding Agent shall include but shall not
be limited to the following:
(a) It shall receive from the County, the County's and the Members' contributions to
the Fund herein established.
(b) It shall receive all of the income from the Fund.
51
(c) It shall pay out of the Fund, upon written instructions from the Retirement Board,
the funds required for payments under the Plan.
(d) It shall invest and reinvest the corpus and income of the Fund, subject to the
requirements of the Plan, as directed by the Retirement Board and set forth in
the agreement.
(e) It shall maintain such records and accounts of the Fund, and shall render such
financial statements and reports thereof, as may be required from time to time
by the Retirement Board.
12.4 Investment Powers. The investment of the corpus of the Fund shall be made according to
the powers and limitations set forth in the Funding Agreement. Such investment shall be in
accordance with Colorado Revised Statutes.
52
Article XIII
RETIREMENT BENEFITS AND RIGHTS INALIENABLE
13.1 Inalienability. Members, Retired Members, Vested Members and their Beneficiaries
under the Plan are hereby restrained from selling, transferring, anticipating, assigning,
hypothecating, or otherwise disposing of their Retirement Benefit, prospective Retirement
Benefit, or any other rights or interest under the Plan, and any attempt to anticipate, assign,
pledge, or otherwise dispose of the same shall be void. Said Retirement Benefit, prospective
Retirement Benefit and the rights and interests of said Members, Retired Members, Vested
Members or Beneficiaries shall not at any time be subject to the claims of creditors or liabilities
or torts of said Members, Retired Members, Vested Members or Beneficiaries, nor be liable to
attachment, execution, or other legal process. Notwithstanding the foregoing, effective January 1,
1997, payments shall be made under a domestic relations order to an alternate payee in
accordance with the appropriate Colorado Revised Statutes, and such payment shall not be
deemed to be a prohibited alienation of benefits.
53
Article XIV
MODIFICATION OR TERMINATION OF PLAN
14.1 Expectation. It is the expectation of the County that it will continue this Plan and the
payment of its contributions hereunder indefinitely, but continuance of the Plan is not assumed
as a contractual obligation of the County.
14.2 Amendment. The County Commissioners and the Retirement Board reserve the right to
alter, amend, or terminate the Plan or any part thereof in such manner as it may determine, and
such alterations, amendment or termination shall take effect upon notice thereof from the
Retirement Board to the Funding Agent; provided that no such alteration or amendment shall
provide that the Retirement Benefit payable to any Retired Member shall be less than that
provided by his Accumulated Contributions or affect the right of any Member to receive a refund
of his Accumulated Contributions and provided further that no alteration, amendment or
termination of the Plan or any part thereof shall permit any part of the Fund to revert to or be
recoverable by the County or be used for or diverted to purposes other than the exclusive benefit
of Members, Retired Members, Vested Members or Beneficiaries under the Plan, except such
funds, if any, as may remain at termination of the Plan after satisfaction of all liabilities with
respect to Members, Retired Members, Vested Members and Beneficiaries under the Plan and
which are due solely to erroneous actuarial calculations.
14.3 Approval Under the Internal Revenue Code. The Plan is intended to comply with the
requirements of the applicable provisions of Section 401(a) of the Code as now in effect or
54
hereafter amended, and any modification or amendment of the Plan may be made retroactive, as
necessary or appropriate, to establish and maintain such compliance.
14.4 Discontinuance. The County Commissioners reserve the right at any time and for any
reason to discontinue permanently all contributions by the County under this Plan. Such
discontinuance shall be deemed to be a complete termination of the Plan.
14.5 Termination. In the event of a partial or complete termination of the Plan, all affected
funds covered by the Agreement shall be converted to cash and allocated to affected Members,
Retired Members, Vested Members and Beneficiaries on the following priority basis:
(a) An amount equal to the Accumulated Contributions which would be payable to
the Members, Retired Members, Vested Members or Beneficiaries should
their deaths occur on the date of the termination of the Plan.
(b) An amount of the remaining assets equal to a pro rata portion determined on the
basis of the ratio that the actuarial reserve for a Member's Accrued Benefit
minus the amount in (a) above credited to him bears to the total of all such
actuarial reserves.
14.6 Distribution. When the funds covered by the Plan have been allocated as indicated
above, the distribution may be made in the form of cash or nontransferable annuity contracts as
determined by the Retirement Board, and any affected funds remaining after the satisfaction of
all liabilities to Members, Retired Members, Vested Members and Beneficiaries under the Plan
and due solely to erroneous actuarial calculations may be withdrawn by the Retirement Board
from the Fund for the account of the County.
55
Article XV
LIMITATIONS
15.1 Limitation of Benefits.
(a) General: Notwithstanding any other provision contained herein to the contrary,
the benefits payable to a Member from this Plan provided by County
contributions (including purchase of service credit contributions picked up by
the County under Section 4.7 and Member contributions picked up by the
County under Section 5.1), shall be subject to the limitations of Code Section
415 in accordance with this Section 15.1. The limitations of this Section 15.1
shall apply in Limitation Years beginning on or after July 1, 2007, except as
otherwise provided below. For purposes of this Section 15.1, the Limitation
Year shall be the calendar year.
(b) Maximum Permissible Benefit: Except as provided below, effective for
Limitation Years ending after December 31, 2001, any accrued retirement
benefit payable to the Member as an "Annual Benefit" as described below in
Section 15.1(b)(i) shall not exceed One Hundred Sixty Thousand Dollars
($160,000.00), automatically adjusted under Code Section 415(d) for
increases in the cost of living, as prescribed by the Secretary of the Treasury
or his delegate, effective January 1 of each calendar year and applicable to the
Limitation Year ending with or within such calendar year. The automatic
annual adjustment of the dollar limitation in this Section 15.1(b) under Code
56
Section 415(d) shall apply to a Member who has had a separation from
employment. If the benefit the Member would otherwise accrue in a
Limitation Year would produce an Annual Benefit in excess of the dollar
limitation under this Section 15.1(b), the Annual Benefit shall be limited (or
the rate of accrual reduced) to an Annual Benefit that does not exceed the
dollar limitation under this Section 15.1(b).
(i) The Member's Annual Benefit is a benefit that is payable annually in the
form of a straight life annuity. Except as provided below, where a benefit is
payable in a form other than a straight life annuity, the benefit shall be adjusted to
an actuarially equivalent straight life annuity that begins at the same time as such
other form of benefit and is payable on the first day of each month, before
applying the limitations of this Section 15.1. For a Member who has or will have
distributions commencing at more than one annuity starting date, the annual
benefit shall be determined as of each such annuity starting date (and shall satisfy
the limitations of this Section 15.1 as of each such date), actuarially adjusting for
past and future distributions of benefits commencing at the other annuity starting
dates. For this purpose, the determination of whether a new starting date has
occurred shall be made without regard to Section 1.401(a)-20, Q&A 10(d), and
with regard to Section 1.415(b)-1(b)(1)(iii)(B) and (C) of the Income Tax
Regulations.
(ii) No actuarial adjustment to the benefit shall be made for:
57
(A) survivor benefits payable to a surviving spouse under a qualified
joint and survivor annuity to the extent such benefits would not be payable
if the Member's benefit were paid in another form;
(B) benefits that are not directly related to retirement benefits (such as
a qualified disability benefit, preretirement incidental death benefits, and
postretirement medical benefits); or
(C) the inclusion in the form of benefit of an automatic benefit increase
feature, provided the form of benefit is not subject to Code Section
417(e)(3), and would otherwise satisfy the limitations of this Section 15.1,
and the Plan provides that the amount payable under the form of benefit in
any Limitation Year shall not exceed the limits of this Section 15.1
applicable at the annuity starting date, as increased in subsequent years
pursuant to Code Section 415(d). For this purpose, an automatic benefit
increase feature is included in a form of benefit if the form of benefit
provides for automatic, periodic increases to the benefits paid in that form.
(iii) The determination of the Annual Benefit shall take into account Social
Security supplements described in Code Section 411(a)(9) and benefits
transferred from another defined benefit plan, other than transfers of distributable
benefits pursuant to Section 1.411(d)-4, Q&A-3(c), of the Income Tax
Regulations, but shall disregard benefits attributable to Member contributions or
rollover contributions.
58
(iv) Effective for distributions in Plan Years beginning after December 31,
2003, the determination of actuarial equivalence of forms of benefit other than a
straight life annuity shall be made in accordance with Section 15.1(b)(v) or
Section 15.1(b)(vi).
(v) Benefit Forms Not Subject to Code Section 417(e)(3): The straight life
annuity that is actuarially equivalent to the Member's form of benefit shall be
determined under this Section 15.1(b)(v) if the form of the Member's benefit is
either:
(A) a non -decreasing annuity (other than a straight life annuity)
payable for a period of not less than the life of the Member (or, in the case
of a qualified pre -retirement survivor annuity, the life of the surviving
spouse), or
(B) an annuity that decreases during the life of the Member merely
because of:
(1)
the death of the survivor annuitant (but only if the reduction
is not below 50% of the benefit payable before the death of
the survivor annuitant), or
(2) the cessation or reduction of Social Security supplements or
qualified disability payments (as defined in Code Section
401(a)(11)).
59
(C) Limitation Years Beginning Before July 1, 2007: For Limitation
Years beginning before July 1, 2007, the actuarially equivalent straight life
annuity is equal to the annual amount of the straight life annuity
commencing at the same annuity starting date that has the same actuarial
present value as the Member's form of benefit computed using whichever
of the following produces the greater annual amount:
(1) the interest rate and the mortality table (or other tabular
factor), each as described in Section 2.3(c) of this Plan for
adjusting benefits in the same form; and
(2) a 5 -percent interest rate assumption and the applicable
mortality table described in Rev. Rul. 2001-62 for that
annuity starting date.
(D) Limitation Years Beginning On Or After July 1, 2007: For
Limitation Years beginning on or after July 1, 2007, the actuarially
equivalent straight life annuity is equal to the greater of:
(1) the annual amount of the straight life annuity (if any)
payable to the Member under the Plan commencing at the
same annuity starting date as the Member's form of benefit;
and
(2) the annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial
60
present value as the Member's form of benefit, computed
using a 5 -percent interest rate assumption and the
applicable mortality table described in Rev. Rut. 2001-62
for that annuity starting date.
(vi) Benefit Forms Subject to Code Section 417(e)(3): The straight life
annuity that is actuarially equivalent to the Member's form of benefit shall be
determined under this Section 15.1(b)(vi) if the form of the Member's benefit is
other than a benefit form described in Section 15.1(b)(v). In this case, the
actuarially equivalent straight life annuity shall be determined as follows:
(A) Annuity Starting Date in Plan Years Beginning After 2005: If the
annuity starting date of the Member's form of benefit is in a Plan Year
beginning after 2005, the actuarially equivalent straight life annuity is
equal to the greatest of:
(1)
the annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial
present value as the Member's form of benefit, computed
using the interest rate and the mortality table (or other
tabular factor) each as described in Section 2.3(c) of this
Plan for adjusting benefits in the same form;
(2) the annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial
61
present value as the Member's form of benefit, computed
using a 5.5 -percent interest rate assumption and the
applicable mortality table described in Rev. Rul. 2001-62;
and
(3)
the annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial
present value as the Member's form of benefit, computed
using:
(a) the rate of interest on 30 -year Treasury securities as
specified by the Commissioner for the lookback
month for the stability period specified below. The
lookback month applicable to the stability period is
the fourth calendar month preceding the first day of
the stability period, as specified below. The
stability period is the successive period of one Plan
Year which contains the annuity starting date for the
distribution and for which the applicable interest
rate remains constant; and
(b) the applicable mortality table described in Rev. Rul.
2001-62,
divided by 1.05.
62
(B) Annuity Starting Date in Plan Years Beginning in 2004 or 2005:
(1) If the annuity starting date of the Member's form of benefit
is in a Plan Year beginning in 2004 or 2005, the actuarially
equivalent straight life annuity is equal to the annual
amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present
value as the Member's form of benefit, computed using
whichever of the following produces the greater annual
amount:
(a)
the interest rate and the mortality table (or other
tabular factor) each as described in Section 2.3(c) of
this Plan for adjusting benefits in the same form;
and
(b) a 5.5 -percent interest rate assumption and the
applicable mortality table described in Rev. Rul.
2001-62.
(2) If the annuity starting date of the Member's benefit is on or
after the first day of the first Plan Year beginning in 2004
and before December 31, 2004, the application of this
Section 15.1(b)(vi)(B) shall not cause the amount payable
under the Member's form of benefit to be less than the
63
benefit calculated under the Plan, taking into account the
limitations of this Section 15.1, except that the actuarially
equivalent straight life annuity is equal to the annual
amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present
value as the Member's form of benefit, computed using
whichever of the following produces the greatest annual
amount:
(a) the interest rate and mortality table (or other tabular
factor) each as described in Section 2.3(c) of this
Plan for adjusting benefits in the same form;
(b)
i. the rate of interest on 30 -year Treasury
securities as specified by the Commissioner for the
lookback month for the stability period specified
below. The lookback month applicable to the
stability period is the fourth calendar month
preceding the first day of the stability period, as
specified below. The stability period is the
successive period of one Plan Year which contains
the annuity starting date for the distribution and for
which the applicable interest rate remains constant;
and
64
i. the applicable mortality table described in
Rev. Rul. 2001-62; and
(a) i. the rate of interest on 30 -year Treasury
securities as specified by the Commissioner for the
lookback month for the stability period specified
below. The lookback month applicable to the
stability period is the fourth calendar month
preceding the first day of the stability period, as
specified below. The stability period is the
successive period of one Plan Year which contains
the annuity starting date for the distribution and for
which the applicable interest rate remains constant
(as in effect on the last day of the last Plan Year
beginning before January 1, 2004, under provisions
of the Plan then adopted and in effect); and
ii. the applicable mortality table described in
Rev. Rul. 2001-62.
(c) Adjustment for Less Than Ten Years of Participation: If a Member has less than
ten (10) years of participation in this Plan and all predecessor plans hereto, the
dollar limitation otherwise applicable under Section 15.1(b) above shall be
multiplied by a fraction, the numerator of which is the number of such
65
Member's years of participation in the Plan (or part thereof), but never less
than one (1), and the denominator of which is ten (10).
(d) Adjustment of Dollar Limitation for Benefit Commencement Before Age 62 or
After Age 65: Effective for benefits commencing in Limitation Years ending
after December 31, 2001, the dollar limitation under Section 15.1(b) shall be
adjusted if the annuity starting date of the Member's benefit is before age 62
or after age 65. If the annuity starting date is before age 62, the dollar
limitation under Section 15.1(b) shall be adjusted under Section 15.1(d)(i), as
modified by Section 15.1(d)(iii), but subject to Section 15.1(d)(iv). If the
annuity starting date is after age 65, the dollar limitation under Section 15.1(b)
shall be adjusted under Section 15.1(d)(ii), as modified by Section 15.1(d)(iii).
(i)
Adjustment of Defined Benefit Dollar Limitation for Benefit
Commencement Before Age 62:
(A) Limitation Years Beginning Before July 1, 2007: If the annuity
starting date for the Member's benefit is prior to age 62 and occurs in a
Limitation Year beginning before July 1, 2007, the dollar limitation for the
Member's annuity starting date is the annual amount of a benefit payable
in the form of a straight life annuity commencing at the Member's annuity
starting date that is the actuarial equivalent of the dollar limitation under
Section 15.1(b) (adjusted under Section 15.1(c) for years of participation
less than 10, if required) with actuarial equivalence computed using
whichever of the following produces the smaller annual amount:
66
(1) the interest rate and the mortality table (or other tabular
factor) each as described in Section 2.3(c) of this Plan and
in accordance with Section 7.2 of this Plan, if applicable; or
(2) a 5 -percent interest rate assumption and the applicable
mortality table as described in Rev. Rul. 2001-62.
(B) Limitation Years Beginning On Or After July 1, 2007:
(1) Plan Does Not Have Immediately Commencing Straight
Life Annuity Payable at Both Age 62 and the Age of
Benefit Commencement. If the annuity starting date for the
Member's benefit is prior to age 62 and occurs in a
Limitation Year beginning on or after July 1, 2007, and the
Plan does not have an immediately commencing straight
life annuity payable at both age 62 and the age of benefit
commencement, the dollar limitation for the Member's
annuity starting date is the annual amount of a benefit
payable in the form of a straight life annuity commencing
at the Member's annuity starting date that is the actuarial
equivalent of the dollar limitation under Section 15.1(6)
(adjusted under Section 15.1(c)) for years of participation
less than 10, if required) with actuarial equivalence
computed using a 5 -percent interest rate assumption and the
applicable mortality table for the annuity starting date as
67
described in Rev. Rul. 2001-62 (and expressing the
Member's age based on completed calendar months as of
the annuity starting date).
(2) Plan Has Immediately Commencing Straight Life Annuity
Payable at Both Age 62 and the Age of Benefit
Commencement. If the annuity starting date for the
Member's benefit is prior to age 62 and occurs in a
Limitation Year beginning on or after July 1, 2007, and the
Plan has an immediately commencing straight life annuity
payable at both age 62 and the age of benefit
commencement, the dollar limitation for the Member's
annuity starting date is the lesser of the limitation
determined under Section 15.1(d)(i)(B)(1) and the dollar
limitation under Section 15.1(b) (adjusted under Section
15.1(c) for years of participation less than 10, if required)
multiplied by the ratio of the annual amount of the
immediately commencing straight life annuity under the
Plan at the Member's annuity starting date to the annual
amount of the immediately commencing straight life
annuity under the Plan at age 62, both determined without
applying the limitations of this Section 15.1.
68
(ii) Adjustment of Defined Benefit Dollar Limitation for Benefit
Commencement After Age 65:
(A) Limitation Years Beginning Before July 1, 2007: If the annuity
starting date for the Member's benefit is after age 65 and occurs in a
Limitation Year beginning before July 1, 2007, the dollar limitation for the
Member's annuity starting date is the annual amount of a benefit payable
in the form of a straight life annuity commencing at the Member's annuity
starting date that is the actuarial equivalent of the dollar limitation under
Section 15.1(b) (adjusted under Section 15.1(c) for years of participation
less than 10, if required) with actuarial equivalence computed using
whichever of the following produces the smaller annual amount: (i) the
interest rate and the mortality table (or other tabular factor) each as
described in Section 2.3(c) of this Plan; or (ii) a 5 -percent interest rate
assumption and the applicable mortality table as described in Rev. Rul.
2001-62.
(B) Limitation Years Beginning On Or After July 1, 2007:
(1) Plan Does Not Have Immediately Commencing Straight
Life Annuity Payable at Both Age 65 and the Age of
Benefit Commencement. If the annuity starting date for the
Member's benefit is after age 65 and occurs in a Limitation
Year beginning on or after July 1, 2007, and the Plan does
not have an immediately commencing straight life annuity
69
payable at both age 65 and the age of benefit
commencement, the dollar limitation at the Member's
annuity starting date is the annual amount of a benefit
payable in the form of a straight life annuity commencing
at the Member's annuity starting date that is the actuarial
equivalent of the dollar limitation under Section 15.1(b)
(adjusted under Section 15.1(c) for years of participation
less than 10, if required) with actuarial equivalence
computed using a 5 -percent interest rate assumption and the
applicable mortality table for the annuity starting date as
described in Rev. Rul. 2001-62 (and expressing the
Member's age based on completed calendar months as of
the annuity starting date).
(2) Plan Has Immediately Commencing Straight Life Annuity
Payable at Both Age 65 and Age of Commencement. If the
annuity starting date for the Member's benefit is after age
65 and occurs in a Limitation Year beginning on or after
July 1, 2007, and the Plan has an immediately commencing
straight life annuity payable at both age 65 and the age of
benefit commencement, the dollar limitation at the
Member's annuity starting date is the lesser of the
limitation determined under Section 15.1(d)(ii)(A) and the
dollar limitation under Section 15.1(b) (adjusted under
70
Section 15.1(c) for years of participation less than 10, if
required) multiplied by the ratio of the annual amount of
the adjusted immediately commencing straight life annuity
under the Plan at the Member's annuity starting date to the
annual amount of the adjusted immediately commencing
straight life annuity under the Plan at age 65, both
determined without applying the limitations of this Section
15.1. For this purpose, the adjusted immediately
commencing straight life annuity under the Plan at the
Member's annuity starting date is the annual amount of
such annuity payable to the Member, computed
disregarding the Member's accruals after age 65 but
including actuarial adjustments even if those actuarial
adjustments are used to offset accruals; and the adjusted
immediately commencing straight life annuity under the
Plan at age 65 is the annual amount of such annuity that
would be payable under the Plan to a hypothetical Member
who is age 65 and has the same accrued benefit as the
Member.
(iii) Notwithstanding the other requirements of this Section 15.1(d), no
adjustment shall be made to the dollar limitation under Section 15.1(b) to reflect
the probability of a Member's death between the annuity starting date and age 62,
or between age 65 and the annuity starting date, as applicable, if benefits are not
71
forfeited upon the death of the Member prior to the annuity starting date. To the
extent benefits are forfeited upon death before the annuity starting date, such an
adjustment shall be made. For this purpose, no forfeiture shall be treated as
occurring upon the Member's death if the Plan does not charge Members for
providing a qualified pre -retirement survivor annuity, as defined in Code Section
417(c), upon the Member's death.
(iv) Notwithstanding any other provision to the contrary, for Limitation Years
beginning on or after January 1, 1997, if payment begins before the Member
reaches age 62, the reductions in the limitations in this Section 15.1(d) shall not
apply to a Member who is a "qualified participant" as defined in Code Section
415(b)(2)(H).
(e) Minimum Benefit Permitted: Notwithstanding anything else in this Section 15.1
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 a Limitation Year under any form of
benefit with respect to such Member under this Plan and under all other defined
benefit plans (without regard to whether a plan has been terminated) ever
maintained by a participating Employer do not exceed $10,000 multiplied by a
fraction:
72
(A) the numerator of which is the Member's number of years (or part
thereof, but not less than one year) of Credited Service (not to exceed 10)
with the participating Employer, and
(B) the denominator of which is 10; and
(ii) the participating Employer (or a predecessor Employer) has not at any
time maintained a defined contribution plan in which the Member participated
(for this purpose, mandatory employee contributions under a defined benefit plan,
individual medical accounts under Code Section 401(h), and accounts for
postretirement medical benefits established under Code Section 419A(d)(1), are
not considered a separate defined contribution plan).
(f) Grandfathered Benefit: In no event shall a Member's maximum annual Pension
allowable under this Section 15.1 be less than the annual amount of Pension
(including early Pension and qualified joint and survivor annuity amounts)
duly accrued by such Member (under Code Section 415 limitations then in
effect) as of December 31, 1982, or as of December 31, 1986, whichever is
greater (disregarding any Plan changes or cost -of -living adjustments occurring
after July 1, 1982, as to the 1982 accrued amount, and May 5, 1986, as to the
1986 accrued amount).
(g) Disability, Death: For Limitation Years beginning on or after January 1, 1995,
the provisions of Section 15.1(c), Section 15.1(d)(i), and the proration
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provided under Section 15.1(e)(i)(A) and (B), shall not apply to Disability
Pension or to death benefits under Section 6.4 or Article IX.
(h) Defined Benefit and Defined Contribution Plans: This Section 15.1 shall not
apply to Limitation Years beginning on or after January 1, 2000. For
Limitation Years beginning prior to January 1, 2000, the combined limit rules
of Code Section 415(e) shall apply.
15.2 Consolidation or Merger. The Plan shall not be merged or consolidated with, nor shall
any assets or liabilities be transferred to any other Plan, unless the benefits payable to each
Member if the Plan were terminated immediately after such action would be equal to or greater
than the benefits to which such Member would have been entitled if this Plan had been
terminated immediately before such action.
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Article XVI
DIRECT ROLLOVERS
16.1 General. This Article applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the Plan to the contrary that would otherwise limit a
Distributee's election under this Article, a Distributee may elect, at the time and in the manner
prescribed by the Retirement Board, to have any portion of an Eligible Rollover Distribution
which exceeds $200 paid directly to an Eligible Retirement Plan specified by the Distributee in a
Direct Rollover. If a Distributee's Direct Rollover Distribution is less than $500, the Distributee
may only elect to Direct Rollover 100% of the Eligible Rollover Distribution.
16.2 Definitions.
(a) "Eligible Rollover Distribution": An Eligible Rollover Distribution is any
distribution of all or any portion of the balance to the credit of the Distributee,
except that an Eligible Rollover Distribution does not include: 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
Section 401(a)(9) of the Code; and the portion of any distribution that is not
includible in gross income (determined without regard to the exclusion for net
unrealized appreciation with respect to employer securities).
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(b) "Eligible Retirement Plan": An Eligible Retirement Plan is an individual
retirement account described in Section 408(a) of the Code, an individual
retirement annuity described in Section 408(b) of the Code, an annuity
described in Code Section 403(a), or a qualified trust described in Section
401(a) of the Code, that accepts the Distributee's Eligible Rollover
Distribution. An Eligible Retirement Plan shall also mean an annuity contract
described in Code Section 403(b) and an eligible plan under Code Section
457(b) which is maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a state and
which agrees to separately account for amounts transferred into such plan
from the Plan. The definition of Eligible Retirement Plan 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" pursuant to a "domestic relations order"
(DRO) as defined in Colorado Revised Statutes § 14-10-113. An Eligible
Retirement Plan does not include a Roth IRA, a SIMPLE IRA, or an
education IRA.
(c) "Distributee": A 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
Section 414(p) of the Code, are Distributees with regard to the interest of the
spouse or former spouse. A Distributee also includes the Member's nonspouse
designated beneficiary, pursuant to Code Section 401(a)(9)(E).
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(d) "Direct Rollover": A Direct Rollover is a payment by the Plan to one Eligible
Retirement Plan specified by the Distributee or, on or after January 1, 2008, to
a Roth IRA under Code Section 408A, as specified by the Distributee
(assuming the Distributee otherwise meets the Roth IRA requirements). In the
case of a nonspouse beneficiary, the Direct Rollover may be made only to an
individual retirement account or annuity (other than an endowment contract)
described in Code Section 408(a) or (b) ("IRA") that is established on behalf
of such designated beneficiary, that will be treated as an inherited IRA
pursuant to the provisions of Code Section 402(c)(11), and that must be titled
in the name of the deceased Member, for the benefit of the beneficiary. Also,
in this case, the determination of any required minimum distribution under
Code Section 401(a)(9) that is ineligible for rollover shall be made in
accordance with Notice 2007-7, Q&A 17 and 18, 2007-5 I.R.B. 395, as
clarified by the Special Edition dated February 13, 2007, of Employee Plans
News of the Internal Revenue Service Tax Exempt and Government Entity
Division.
(e) "Waiver of 30 Day Notice": If a distribution is payable under Section 7.5, Article
IX, or Article X, such distribution may commence less than thirty (30) days
after the notice required under Section 4.11(a)-1I(c) of the Income Tax
Regulations is given, provided that:
(i)
the Retirement Board informs the Distributee that the Distributee has a
right to a period of at least thirty (30) days after receiving the notice to consider
77
the decision of whether or not to elect a distribution (and, if applicable, a
particular distribution option), and
(ii) the Distributee, after receiving the notice, affirmatively elects a
distribution.
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The foregoing Weld County Retirement Plan (As Amended and Restated Effective
January 1, 2008) as submitted by the County Board of Retirement was duly approved by the
following on the `' day of II"( 20C <'r
WE I CO : TY BOA :.D aF RETIREMENT
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CERTIFICATE
Weld County
We, the members of the Retirement Board for the County of Weld, State of Colorado, do
hereby certify that a true and correct copy of the Weld County Retirement Plan (As Amended
and Restated Effective January 1, 2008) was adopted by Resolution of the Weld County Board of
Retirement on the �1`day of JXce,,, t%,L, 2008.
IN WITNESS WHEREOF, we have hereunto affixed our names this Y day of
.Penbc.1L2008.
WELD COUNTY BOARD OF RETIREMENT
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