HomeMy WebLinkAbout901525 F
WELD COUNTY RETIREMENT PLAN
(As Amended and Restated Effective January 1, 1990)
January S, 1990
HE6P0047.FD1:1
901525
Weld County Retirement Plaq
(As Amended and Restated Effective January 1, 1990)
TABLE OF CONTENTS
pace No.
ARTICLE I Purpose I-1
ARTICLE II Definitions II-1
2.1 Name II-1
2.2 Retirement Board II-1
2.3 Definitions II-1
ARTICLE III Membership III-1
3.1 Employees on January 1, 1969 III-1
3.2 Employees Hired After January 1, 1969 . . . . III-1
3.3 Termination III-1
3.4 Withdrawal III-2
ARTICLE IV Credited Service IV-1
4.1 Credited Service IV-1
4.2 Prior Service IV-1
4.3 Current Service IV-1
4.4 Limitations on Credited Service IV-1
4.5 Breaks in Service IV-2
4.6 Reemployment of Retired Members IV-3
ARTICLE V Contributions V-1
5.1 Member Contributions V-1
5.2 County Contributions V-2
5.3 Application of Forfeitures V-2
ARTICLE VI Retirement Dates VI-1
6.1 Normal Retirement VI-1
6.2 Early Retirement VI-1
6.3 Delayed Retirement VI-1
6.4 Disability Retirement VI-2
6.5 Retirement Date VI-3
ARTICLE VII Retirement Benefits VII-1
7.1 Normal or Delayed Retirement VII-1
7.2 Early Retirement VII-1
7.3 Disability Retirement VII-2
7.4 Payment of Benefits VII-2
7.5 Minimum Periodic Payment VII-2
7.6 Accrued Credits and Vested Benefits
Under the Previous Plan Preserved VII-2
7.7 Increased Benefits for Retired
Members and Beneficiaries VII-3
YEWVOIJ.FD h 2
TABLE OF CONTENTS (continued)
Pace No.
ARTICLE VIII Optional Benefits VIII-1
8.1 General VIII-1
8.2 1001 Joint and Survivor Benefit VIII-1
8.3 503 Joint and Survivor Benefit VIII-1
8.4 Life and Term Certain Benefit VIII-2
8.5 Single Life Benefit VIII-2
8.6 Spousal Consent for Retirement Benefit . . VIII-2
ARTICLE IX Death Benefits IX-1
9.1 Death of an Active Member Before
Normal Retirement Date IX-1
9.2 Death of a Vested Member Before
Payments Commence IX-1
9.3 Death of an Active Member Between
Normal and Delayed Retirement Dates IX-1
9.4 Death of a Retired Member IX-2
9.5 Death of a Retired Member Before
Contributions Recovered IX-2
9.6 Uniform Simultaneous Death Act IX-2
9.7 Designation of Beneficiary IX-2
ARTICLE X Severance Benefits X-1
10.1 Coverage X-1
10.2 Less Than Six Years of Service X-1
10.3 Six or More Years of Service X-1
10.4 Non-re-election X-2
ARTICLE XI Administration of the Plan XI-1
11.1 Retirement Board XI-1
11.2 Management of the Plan XI-1
11.3 Control, Amendment and Termination XI-2
11.4 Miscellaneous XI-2
ARTICLE XII Method of Funding XII-1
12.1 Funding XII-1
12.2 Assets XII-1
12.3 Duties of the Funding Agent XII-1
12.4 Investment Powers XII-2
ARTICLE XIII Retirement Benefits and Rights Inalienable XIII-1
13.1 Inalienability XIII-1
ARTICLE XIV Modification or Termination of Plan XIV-1
14.1 Expectation XIV-1
14.2 Amendment XIV-1
YEWM A7JD N 3
TABLE OF CONTENTS (continued)
Pace No.
14.3 Approval Under the Internal
Revenue Code XIV-1
14.4 Discontinuance XIV-2
14.5 Termination XIV-2
14.6 Distribution XIV-2
ARTICLE XV Benefit Restrictions on Early Termination XV-1
15.1 Restriction■ XV-1
15.2 Members Affected by Section 15.1 XV-2
15.3 Amendment of Plan XV-2
ARTICLE XVI Limitations XVI-1
16.1 Limitation of Benefits XVI-1
16.2 Consolidation or Merger XVI-3
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ARTICLE I
Purpose
Effective as of January 1, 1990, 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.
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, 1990. 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, 1989, 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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ARTICLE IL
Definitions
Section 2.1 RAJA. The retirement plan as set forth herein shall be known
as the Weld County Retirement Plan and is hereinafter referred to as the Plan.
Section 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.
Section 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 the benefit determined under Section 7.1 of
the Plan, expressed in the form of a monthly life annuity with a minimum of
120 monthly payments commencing at Normal Retirement Date, based on the
Member's Credited Service at the data of determination.
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(b) "Accumulated Contributions" means the sum of the Member's
contributions to this Plan, tcgether 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 manner■ of payment
based on interest rate and mortality assumptions as defined below unless
otherwise specifically provided in the plans
A. Interest rate assumption for alternative periodic benefits.
The interest rate used for purposes of computing alternative periodic
forms of benefits shall be 7.58 effective January 1, 1984.
B. 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.
C. Mortality assumption. On and after January 1, 1990, the
mortality assumption for calculations based upon the mortality of a
Member or Beneficiary shall be a unisex rate that is 508 male, 508
female, taken from the 1983 Group Annuity Mortality Table. Said
mortality assumption shall be used until changed by Plan amendment.
(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
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 Social Security,
group insurance, retainers' fees under contract, or the like, but including
any compensation that is reduced or deferred under Sections 125, 403(b) ,
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414(h) or 457 of the Internal Revenue Code. The amount of Compensation for
purposes of the Plan during any Plan Year commencing after December 31, 1988,
shall not exceed $200,000 subject to cost-of-living adjustments in accordance
with Code Section 415(d) as amended and then in effect.
(g) "County" means Weld County.
(h) "Covered Employment" means the employment category for which the
Plan is maintained excluding leased employees as defined in Section 2.3(m)
and excluding Employees of the Weld County Division of Human Resources and
the Weld County Health Department.
(i) "Credited Service" means the sum of any Prior Service and Current
Service rendered by an Employee as a Member, for which credit is allowed.
(j) "Current Service" means the period of service rendered by an
Employee as a Member for which credit is allowed. Current Service will cease
when a Member's service as a full-time Employee terminates.
(k) "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.
(1) "Effective Date of this Plan" means January 1, 1969. This restated
Plan is effective as of January 1, 1990.
(m) "Employee" means any elected or appointed County officer or deputy
and any person employed by the County on a full-time Oasis as defined by Weld
County Personnel Policies and Procedures. Included as Employees are leased
employees within the meaning of Code Section 414(n) (2), except that if such
leased employees constitute less than twenty percent (20%) of the County's
nonhighly compensated workforce within the meaning of Code Section
414(n) (1) (C) (ii) , then the term "Employee" will not include those leased
employees covered by a plan described in Code Section 414(n) (5) unless
otherwise provided by the terms of this Plan. For purposes of this Plan,
officers and employees of any federally funded County program which
specifically excludes the use of federal funds for retirement programs shall
not be considered as an Employee and shall not be eligible for membership in
this Plan.
(n) "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.
(o) "Funding Agent" means any insurance company or trustee appointed
by the Retirement Board as provided in Article XII.
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(p) "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.
(q) "Insurance Company" mean any insurance company or companies
appointed by the Retirement Board as provided in Article XII.
(r) "Member" means any person included in the membership of this Plan
as provided in Article III hereof.
(s) "Prior Service" means the period of service rendered by an employee
prior to January 1, 1969, for which credit is allowed pursuant to Article IV,
Section 2.
(t) "Plan Year" means the calendar year.
(u) "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.
(v) "Retirement Benefit" means any retirement benefit provided for in
Article VI hereof.
(w) "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.
(x) "Trustee" means the trustee referred to in Article XII as may be
selected by the Retirement Board under the terms of the Trust Agreement.
(y) "Vested Member" means a former Member whose Membership Service has
terminated by reason other than retirement or Disability and who has elected
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
Section 3.1 $mplovees on January 1. 1969. Every Employee of Weld County
on January 1, 1969 was eligible for membership in the Plan on such date.
Every 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.
Section 3.2 Employees Hired After January 1. 1969. For each 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 Employee in Covered Employment
shall become a Member on his date of employment, election or appointment.
Section 3.3 Termination. Membership of any Member shall terminate if and
when he shall cease to be an Employee, as defined herein, for any reason, except
as provided in Section 4.4.
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Section 3.4 Withdrawal. Once an employee has become a Member of the Plan,
he may not withdraw from membership in the Plan unless he ceaeee to be eligible
for membership or becomes eligible for benefits under the Plan.
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ARTICLE IV
Credited Service
Section 4.1 Credited Service, which has been defined in Section 2.2(h) 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.
Section 4.2 Prior Service shall include any period of continuous service,
not exceeding five (5) years, renaered by a Member as an Employee prior to
January 1, 1969, excluding any service by a Member who was an Employee as of
January 1, 1969 and who failed to file a membership agreement prior to March 1,
1969.
Section 4.3 Current Service shall consist of all continuous service
rendered by a Member as an Employee after January 1, 1969, prior to the earlier
of his actual Retirement Date or the date his service as an Employee, as defined
herein, terminates. •
Section 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.
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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 periods of absence during which a Member is receiving
worker's compensation pursuant to law will be included as Credited Service.
Section 4.5 Breaks in Service. A Member shall incur a Break in Service
if his service as an 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) A leave of absence on account of entering into the military service
of the United States, followed by a return to the service of the County within
90 days after the time when a discharge from such military service was first
available to such member.
(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.
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.
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Upon incurring a Break in Service, 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 2.2(b) from the date received to the date of repayment, the prior
Credited Service for which such amounts were received shall be restored.
Section 6.6 Reemployment of Retired Members. If a Retired Member is
reemployed by the County as a full-time 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.
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ARTICLE V
Contributions
Section 5.1 Member Contributions. During hi■ 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. After December 31, 1986, 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. All such contributions after
December 31, 1983, shall be picked up and paid by the County as provided in
Section 414(h) of the Internal Revenue Code with the Member'■ 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.
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Section 5.2 County Contributions. The County will, from time to time, at
least annually, make contributions to the Fund in an amount at least equal to
the contributions of the Members. 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.
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 Plan
are in excess of the amount required to fully fund the Plan and are due to
erroneous actuarial calculations.
Section 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.
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ARTICLE VI
Retirement Dates
Section 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.
Section 6.2 Barlv Retirement.
(a) Regular Early Retirement. A Member who has attained the age of 55
years and has completed at least six years of Credited Service shall be
eligible for Regular Early Retirement as of the first day of any calendar
month.
(b) Soecial Early Retirement. A Member 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.
(c) pile of 80 Early Retirement: A Member shall be eligible for the
Rule of 80 Early Retirement as of the first day of any calendar month if his
employment terminates after he has attained the age of 55 and the sum of his
age plus his Credited Service at termination equals 80 or more.
Section 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.
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Section 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 i■ determined by the Board to have occurred, or his
date of termination of employment, if later.
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 Dieability ceased, based on his Final Average
Annual 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 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 Annual Compensation
and his Credited Service at termination or Retirement (including Credited Service
for the period of his Disability) .
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Section 6.5 Retirement Date. A Member's "Retirement Date" shall be hi•
Normal Retirement Date, his Early Retirement Date, his Delayed Retirement Date,
or his Disability Retirement Date, whichever is applicable.
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ARTICLE VII
Retirement Benefits
Section 7.1 Normal or Delayed Retirement. Upon retirement at or after his
Normal Retirement Date, each Retired Member shall receive a monthly Retirement
Benefit for ten years certain and life thereafter, equal to 2.2• of the Member's
Final Average Monthly Compensation multiplied by the total number of years of
the Member's Credited Service (including fractional years). However, such Normal
Pension shall not be more than 75% of the Member's Average Monthly Compensation
during the 12 highest-paid consecutive calendar months of Credited Service within
the last 120 months of Credited Service, or less than $25 multiplied by the
Member's Credited Service.
Section 7.2 Early Retirement.
(a) Reaular Early Retirement. A 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 equal to his Vested Accrued
Benefit as of his date of retirement, as determined pursuant to Sections 7.1
and 10.3, reduced by .002083 times the number of months by which his Early
Retirement Date precedes his Normal Retirement Date (2 1/2% per year) .
(b) Special Earls Retirement. A 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 equal to his Accrued Benefit
as of his date of retirement, as determined pursuant to Section 7.1, reduced
by .002083 times the number of months, if any, by which his Early Retirement
Date precedes his 62nd birthday (2 1/2% per year) .
(c) Rule of 80 Early Retirement: A Member who meets the requirements
for a Rule of 80 Early Retirement Pension shall receive a monthly amount
computed as for a Normal Pension 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 80 Early Retirement Date.
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Section 7.3 Disability Retirement. A Member who is disabled, a■ 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.
Section 7.4 Payment of Benefits. The basic monthly Retirement Benefit,
computed as set forth above, shall be paid in equal monthly payments commencing
one month after the Retirement Date, and continuing at monthly intervals for a
period of 119 additional months and for the Retired Member's lifetime thereafter.
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 an
Employee of the County.
Section 7.5 Minimum Periodic Payment. If the amount of the monthly
Retirement Benefit payable to a Retired Member is less than $100.00, the
Retirement Board, in its discretion, may make Actuarially Equivalent Retirement
Benefit payments quarterly, semi-annually, annually or in a single sum.
Section 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 previous plan, to any person
on January 1, 1990, shall be continued by the Funding Agent under the Funding
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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, 1989 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, 1990, shall be determined under the provisions of this Plan.
Section 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 Earnere 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 ehall 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
ueed 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.
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ARTICLE VIII
Optional Benefits
Section 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
forme 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 90 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 90 days preceding the due date of
the first payment of Retirement Benefits under the Plan.
Section 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.
Section 8.3 S0% Joint and Survivor Benefit. The Members may elect a S0%
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.
VIII-1
WWW47.FD I:23
Section 8.4 Dife 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 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.
Section 8.5 finale 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 hie death after retirement, no additional
payments will be made.
Section 8.6 Spousal Consent for Retirement Benefit. If a Member or Vested
Member is married at the time his Retirement Benefit■ 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 (1f 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 within the 90 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.
VIII-2
MUPD047.FD1:24
ARTICLE II
Death Benefits
Section 9.1 Death of an Active Member Before Normal Retirement Date. In
the event a Member of the Plan dies prior to his Normal Retirement Date while
accruing Current Service, the following death benefits shall be payable:
(a) In the event such a Member dies prior to completing six years of
Credited Service, there shall be paid to the Beneficiary designated by him
if skid Beneficiary be living, otherwise to his estate, the amount of his
Accumulated Contributions as of his date of death.
(b) In the event such a Member dies with six or more years of Credited
Service but prior to his Normal Retirement Date, a monthly benefit for life
shall be paid to his surviving spouse, if any, in an amount equal to 704 of
the Member's Vested Accrued Benefit on his date of death. Such death benefit
to the surviving spouse shall commence on the later of: (a) the first day
of the month coincident with or following the Member's death or (b) the first
day of the month coincident with or following the Member's 55th birthday.
If said Member does not have a surviving spouse, there shall be paid to the
Beneficiary designated by him, if said Beneficiary is living, otherwise to
his estate, the amount of his Accumulated Contributions as of his date of
death.
Section 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, payments shall be made as provided in Section 9.1.
Section 9.3 Death of an Active Member Between Normal and Delayed Retirement
Dates. In the event a Member continues in County employment after his Normal
Retirement Date, and dies before actually retiring, then he shall be deemed to
have retired on the first day of the calendar month in which he dies. If no
other form of payment has been elected with spousal consent as provided under
Section 8.6, a Member, who is married, shall be deemed to have elected payment
pursuant to Section 8.3. A Member, who is not married, shall be deemed to have
elected payment pursuant to Section 7.4.
IX-1
HE6pD047.FDf:25
Section 9.4 Death of a Retired Member. In the event a Retired Member dies
while receiving Retirement Benefit payments, his death benefit, if any, will be
determined by the form of Retirement Benefit being paid.
Section 9.5 peath of a Retired Member Before Contributions Recovereq. 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.
Section 9.6 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.
Section 9.7 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 acknowledgement 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.
I%-2
AMPINA7JIM:26
ARTICLE X
$everance Benefits
Section 10.1 Coveraae. Benefit■ shall be paid to a Member under this
Article if his Current Service terminate■ for reasons other than retirement,
disability or death.
Section 10.2 Less Than Six Years of Service. In the event a Member
terminates employment prior to his Normal Retirement Date, and he has less than
six 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. The Accumulated Contributions shall be refunded to the
Member in not less than 30 days nor more than 90 days after the Member's last
date of employment.
Section 10.3 Six or More Years of Service. In the event a Member terminates
prior to his Normal Retirement Date, and he has six 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 which shall be the vested portion (as shown in the
following table) of his Accrued Benefit on the date of the termination.
X-1
WE6FD047.FD1:27
Completed Year■ Percent of Accrued
Of Credited Service Benefit Vested
Less than 6 0%
6 50%
7 75%
8 or more 300%
Such deferred Retirement Benefit shall be payable at the Vested Member's Normal
Retirement Date.
If the deferred Retirement Benefit to which a Vested Member will be entitled
at his Normal Retirement Date is less than $100 per month, the Vested Member
shall be paid, as of the date of his termination, a single sum equal to the
Actuarial Equivalent of such deferred Retirement Benefit. Such single eum
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.
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) if
the Member has less than eight years of Credited Service or under Section 7.2(b)
if the member has eight or more years of Credited Service.
Section 10.4 Nonreelectioq. 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 six (6) years of Service shall not be required.
X-2
mMe40L7 J4 i:28
ARTICLE XI
administration of the Plan
Section 11.1 Retirement Boar4. 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.
Section 11.2 Manaaement 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'e
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.
(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.
XI-1
YE6VD047.FDI:29
(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.
Section 11.3 Control. Amendment and Termination. The Retirement Board shall
have the powers set forth in Part 1, Title 24, Article 54, Colorado Revised
Statutes, as amended, and any powers set forth in Articles XII and XIV herein.
Section 11.4 Niecellaneous. 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.
XI-2
YEMINAT.Po I:30
ARTICLE XII.
Method of Funding
Section 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.
Section 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.
Section 12.3 Duties of the Fundina 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.
(c) It shall pay out of the Fund, upon written instructions from the
Retirement Board, the funds required for payments under the Plan.
XII-1
tmdmMg7JmT:37
(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.
Section 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.
XII-2
M16FDDL7.FD1:32
ARTICLE XIII
Retirement Benefits and Riahts Inalienable
Section 13.1 Inalienability. Except as required under applicable law
(including any "qualified domestic relations order" as defined in Section 414(p)
of the Internal Revenue Code), 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 anytime 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.
XIII-1
MMPD047.FD 1:33
ARTICLE XIV
Modification or Termination of Plan
Section 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.
Section 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 Beneficiariee 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.
Section 14.3 Approval Under the Internal Revenue Code. The Plan i■ intended
to comply with the requirements of the applicable provisions of Section 401(a)
XIV-1
WE6P0047.FD1:34
of the Internal Revenue Code as now in effect or hereafter amended, and any
modification or amendment of the Plan may be made retroactive, as necessary or
appropriate, to establish and maintain such compliance.
Section 14.4 piscontinuancq. 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.
Section 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.
Section 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.
XIV-2
YE6PD047.FDI:35
ARTICLE XV
$enefit Restrictions on Early Termination
Section 15.1 Restrictions. Notwithstanding any other provision hereof, the
benefits provided by the County contributions for Member■ described in
Section 15.2 herein shall be subject to the following conditions:
(a) Payment in full shall be made of such benefits which have been
provided by County contributions not exceeding the larger of the following
amounts: (i) $20,000; or (ii) an amount equal to 20% of the first $50,000
of the Member's average regular annual Compensation multiplied by the number
of years between the date of the establishment of this Plan and (1) the date
that the Plan terminates or (2) if benefits become payable to a Member
described in Section 15.2 herein within ten years after the date of the
establishment of this Plan, the date the benefits of such Member first become
payable (if before the date of termination of this Plan) or (3) if benefits
become payable to a Member described in Section 15.2 herein after the Plan
has been in effect for ten years and if the full current costs of the plan
for the first ten years have not been met or if the full current cost■ have
not been met on the dates referred to in (1) or (2) above, the date of the
failure to meet the full current costs;
(b) If (1) this Plan is terminated within ten years after its
establishment or (2) the benefits of any of the Members described in
Section 15.2 herein become payable within ten years after the establishment
of this Plan or (3) the benefits of any of such Members become payable after
this Plan has been in effect for ten years and at the time such benefits
become payable the full current coats for the first ten years have not been
met, the benefits which any of such Members may receive from the County
contributions shall not exceed the benefits set forth in paragraph (a) of this
section. This limitation ehall cease to be effective at such time, at or
after the expiration of ten years from the date of the establishment of this
Plan, as the full current costs of the Plan have first been met;
(c) If a Member described in Section 15.2 herein leaves the employ of
the County or his Current Service in this Plan terminates, the benefits which
he may receive from County contributions shall not at any time, within the
first ten years after the establishment of this Plan, exceed the benefit■ set
forth in (a) herein, if, at the end of ten years after the date of the
establishment of this Plan the full current costs of the first ten years have
not been met, the benefits such Member may receive from County contributions
shall not exceed the benefits set forth in (a) herein until the first time
that the full current costs of this Plan have been met;
XV-1
WE6P0047.FDI:36
(d) These conditions shall not restrict the full payment of any benefits
on behalf of a Member who dies while this Plan is in full effect and its full
current costs have been met;
(e) These conditions shall not restrict the current payment of full
Retirement Benefits called for by this Plan for any Retired Member while this
Plan i■ in full effect and its full current costs have been met;
(f) This section is intended to conform to the requirements of Treasury
Regulation, Section 1.401-4(c) and shall cease to be effective at such time
as the provisions of Treasury Regulation 1.401-4(c) or any substitute
therefore are no longer effective or applicable.
Section 15.2 gembers Affected by Section 15.1. The Members referred to in
Section 15.1 herein shall be limited to those whose anticipated annual benefit
hereunder ■hall exceed $1,500 and who at the Effective Date hereof are among the
twenty-five highest paid employees of the County, whether or not initially
eligible for membership.
Section 15.3 Amendment of Plan. If the Plan is amended to increase benefits
which would substantially increase the extent of possible discrimination as to
contributions or as to benefits upon termination of the Plan, the restrictions
set forth in Section 15.1 shall be applied to the Plan as if it were a new plan
established on the date of such change.
•
XV-2
NE6PD047.FD1:37
ARTICLE XVI
Limitations
Section 16.1 Limitation of Benefits. Notwithstanding any other provision
contained herein to the contrary, the benefits payable to an Employee from this
Plan provided by Employer contributions (including contribution■ picked up by
the Employer under Section 5.1), shall be subject to the limitations of Code 415
in accordance with (1) and (2) below:
(11 Defined Benefit Plan Only: Any annual Pension payable to an Employee
hereunder shall not exceed the lesser of:
(a) $90,000 or, if greater, the amount of straight life, or
qualified joint and survivor, annuity accrued by the Employee as of
January 1, 1983, adjusted for increaees in the cost of living, as
prescribed by the Secretary of the Treasury or hie delegate, if such
adjustments are permissible under Regulations, Revenue Rulings, or
announcements prescribed by the Treasury or Secretary or his delegate,
or
(b) 100% of the Employee's average earnings for the three
consecutive calendar years, while a participant in the Plan, in which
his earnings were the highest. For purposes of this subsection (b) ,
earnings for any calendar year shall be the Employee's earned income,
wages, salaries, and fees for professional services, and other amounts
received for personal services actually rendered in the course of
employment with the Employer (including, but not limited to, commissions
paid salesmen, compensation for services on the basis of a percentage
of profits, commissions on insurance premiums, tips and bonuses) ,
provided such amounts are actually paid or includable in gross income
during such year. Earnings shall exclude the following:
(i) Employer contributions to a plan of deferred compensation
which are not included in the Employee's gross income for the
taxable year in which contributed or Employer contributions under
a simplified employee pension plan to the extent such contributions
are deductible by the Employee, or any distributions from a plan
of deferred compensation; and
XVI-1
YE6PD047.FDI:38
(ii) Other amounts which received special tax benefits, or
contributions made by the Employer (whether or not under a salary
reduction agreement) towards the purchase of an annuity described
in Section 403(b) of the Code (whether or not the amounts are
actually excludable from the gross income of the Employee) .
The foregoing limitations shall not be applicable with respect to any
participant whose annual Pension under this Plan is less than $10,000 if such
participant has not at any time participated in any defined contribution plan
maintained by the Employer. In the event that a Member has been credited with
less than ten years of participation service in this Plan and predecessor
plans hereto, the dollar limitation in paragraph (a) above under this Section
shall be reduced by multiplying such limitation by a fraction, the numerator
of which is the number of such Member's years of plan participation (or part
thereof) , but never less than one, and the denominator of which is ten. This
paragraph shall, to the extent required by the Secretary of the Treasury, be
applied separately to each change in benefit accrual rate hereunder. In the
event that a Member has been credited with less than ten (10) years of
Credited Service, the percentage-of-average-earnings limitation otherwise
applicable under (b) above and the dollar amount otherwise applicable under
the first sentence of this paragraph shall be reduced by multiplying each by
a fraction, the numerator of which is the number of such Participant's years
of Credited Service (or part thereof) , but never less than one (1) , and the
denominator of which is ten (10) .
The limitations of this Section apply to a straight life annuity with
no ancillary benefits and to an annuity that constitutes a qualified joint
and survivor annuity, provided payment begins between ages 62 and 65. If
payment commences before age 62, the foregoing limitations shall be reduced
so that they are actuarially equivalent to such a benefit commencing at age
62. However, the reduction of this paragraph shall not reduce the limitation
below $75,000, if payment commences after age 55, or below the actuarial
equivalent of $75,000 commencing at age 55, if payment commences before age
55. If payment commences after age 65, the limitation shall be adjusted to
the actuarial limitation commencing at age 65. The interest assumption for
purposes of determining actuarial equivalency under this paragraph shall be
the interest rate otherwise used for purposes of computing optional forms of
income payable under the Plan, but the rate shall not be less than 58 annually
if benefits commence before age 62 and shall not exceed 58 annually if
benefits commence after age 65.
In no event shall a Member's maximum annual Pension allowable under this
section be less than the annual amount of Pension (including Early Retirement
Benefits 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) .
XVI-2
NESPD047.FD1:39
(2) Defined Benefit and Defined Contribution Plans: If, in any
Limitation Year a participant also participates in one or more defined
contribution plans maintained by the Employer, then for such Limitation Year,
the sum of the Defined Benefit Plan Fraction and Defined Contribution Plan
Fraction (as described below) for such Limitation Year shall not exceed one.
The Defined Benefit Fraction for any Limitation Year shall mean a fraction
(a) the numerator of which is the projected annual benefit of the Participant
under the Plan (determined as of the close of the Limitation Year) , and (b)
the denominator of which is the lesser of 1256 of the dollar limitation under
Code Section 415(b) (1) (a) or 1406 of the percentage limitation under Code
Section 415(b) (1) (B) for the year of determination (taking into account the
effect of Section 235(g) (4) of the Tax Equity and Fiscal Responsibility Act
of 1982). The Defined Contribution Fraction for any Limitation Year shall
mean a fraction (a) the numerator of which is the sum of the annual additions
(as defined in Section 415(c) (2) of the Code) to the participant's accounts
under all defined contribution plans maintained by the Employer as of the
close of the Limitation Year (subject to reduction to the extent permitted
under the transition rule in Section 235(g) (3) of the Tax Equity and Fiscal
Responsibility Act of 1982) , and (b) the denominator of which is the sum of
the lesser of 1256 of the dollar limitation under Cede Section 415(c) (1) (A)
or 1406 of the percentage Limitation under Code Section 415(c) (1) (B) , for such
Limitation Year and for all prior Limitation Years during which the Employee
was employed by the Employer (provided, however, at the election of the
Committee, the denominator shall be increased by using for Limitation Years
ending prior to January 1, 1983, an amount equal to the denominator in effect
for the Limitation Year ending in 1982, multiplied by the transition fraction
provided in Code Section 415(e) (6) (B) ) .
If, in any Limitation Year, the sum of the Defined Benefit Plan Fraction
and Defined Contribution Plan Fraction for a participant would exceed one
without adjustment of the amount of the maximum annual Pension that can be
paid to such participant under paragraph (1) of this Section, than the amount
of the maximum annual Pension that can be paid to such participant under
paragraph (1) of this section, shall be reduced to the extent necessary to
reduce the sum of the Defined Benefit Plan Fraction and Defined Contribution
Plan Fraction for such participant to one, or the Committee may take such
other actions as will cause the sum to equal one or less.
Section 16.2 Consolidation or Mercer. 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.
XVI-3
YEtwoNJ.FDI:40
The foregoing resolution as submitted by the County Boarder of Retirement was
duly approved by the following vote on the day of rev ,
193V.
WELD COUNTY BOARD OF RETIREMENT
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Ay
(SEAL) AL" t
XVI-4
MUFF 47JEM:41
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