HomeMy WebLinkAbout20220136.tiffCERTIFICATE
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, 2022) was adopted by Resolution of the Weld County Board of
Retirement on the 2nd day of November, 2021.
IN WITNESS WHEREOF, we have hereunto affixed our names this 2nd day of November,
2021.
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RESOLUTION 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", originally effective January 1, 1969; 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 January 1, 2014 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 effectively January 1, 2022.
(2) The Weld County Retirement Plan (As Amended and Restated Effective January 1,
2022), 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, 2022.
(3) The Retirement Board be and they hereby are authorized to executive forthwith the Weld
County Retirement Plan (As Amended and Restated Effective January 1, 2022) 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 Code of 1986, as amended from time to time.
(4) The proper officers of the Retirement Board are hereby authorized to execute verified
counterparts of the Plan and this resolution in support of a determination that the Plan and
Funding Agreement continue to qualify under sections 401(a) and 501(a) of the Internal
Revenue Code of 1986, as amended from time to time.
WELD COUNTY RETIREMENT PLAN
(As Amended and Restated Effective January 1, 2022)
Weld County Retirement Plan
(As Amended and Restated Effective January 1, 2022)
TABLE OF CONTENTS
Page No.
ARTICLEI PURPOSE.......................................................................................................1
ARTICLEII DEFINITIONS...............................................................................................2
ARTICLEIII MEMBERSHIP........................................................................................._....7
3.1
Employees on January 1, 1969.......................................................................7
3.2
Employees Hired After January 1,
1969.........................................................7
3.3
Termination..................................................................................................... 7
3.4
Withdrawal....................................................................................................7
ARTICLE IV
CREDITED SERVICE...................................................................................8
4.1
Credited Service.......................................................................................... 8
4.2
Prior Service...................................................................................................8
4.3
Current Service...........................................................................................8
4.4
Limitations on Credited Service......................................................................8
4.5
Breaks in Service............................................................................................8
4.6
Qualified Military Service..............................................................................9
4.7
Purchase of Service Credit Relating
to Noncovered Employment...............10
ARTICLE V CONTRIBUTIONS .................................. ............. .............................11
5.1
Member Contributions..................................................................................11
5.2
County Contributions ............................................ .... ....................................11
5.3
Irrevocability of Contributions.....................................................................12
5.4
Application of Forfeitures.............................................................................12
ARTICLE VI
RETIREMENT DATES...............................................................................13
6.1
Normal Retirement.......................................................................................13
6.2
Early Retirement...........................................................................................13
6.3
Deferred Retirement.....................................................................................13
6.4
Delayed Retirement......................................................................................14
6.5
Disability Retirement....................................................................................14
6.6
Retirement Date............................................................................................15
ARTICLE VII
RETIREMENT BENEFITS........................................................................16
7.1
Normal or Delayed Retirement.....................................................................16
7.2
Early Retirement...........................................................................................18
7.3
Vested Retirement Benefit............................................................................19
7.4
Non -Vested Retirement Benefit...................................................................20
7.5
Disability Retirement ...............
TABLE OF CONTENTS
(continued)
Page No.
7.6 Payment of Small Benefits...........................................................................20
7.7 Accrued Credits & Vested Benefits Under the Previous Plan Preserved..... 20
7.8 Increased Benefits for Retired Members and Beneficiaries .........................21
ARTICLE VIII
OPTIONAL BENEFITS...............................................................................22
8.1
Standard Form of Benefits............................................................................22
8.2
100% Joint and Survivor Benefit..................................................................22
8.3
50% Joint and Survivor Benefit....................................................................22
8.4
Life and Term Certain Benefit......................................................................22
8.5
Single Life Benefit........................................................................................23
8.6
Spousal Consent for Retirement Benefit......................................................23
8.7
Limitations....................................................................................................23
8.8
Direct Rollovers............................................................................................
23
ARTICLE IX
DEATH BENEFITS.....................................................................................25
9.1
Death of an Active Member Before Normal Retirement Date .....................25
9.2
Death of a Vested Member Before Payments Commence ...........................25
9.3
Death of a Non -Vested Member...................................................................25
9.4
Death of a Member Before Payments Commence.......................................26
9.5
Death of a Retired Member..........................................................................26
9.6
Death of a Member Before Contributions Recovered..................................26
9.7
Uniform Simultaneous Death Act........................................................... .26
9.8
Designation of Beneficiary...........................................................................26
ARTICLE X BENEFIT APPLICATION AND LIMITATIONS......................................28
10.1 Application for Benefits...................................................... .....................28
10.2 Reemployment of Retired Members.............................................................28
10.3 Required Minimum Distributions.................................................................28
10.4 Limitations on Benefits.................................................................................29
ARTICLE XI ADMINISTRATION OF PLAN..................................................................31
11.1 Retirement Board......................................................................................31
11.2 Management of the Plan...............................................................................31
11.3 Control, Amendment and Termination.........................................................32
11.4 Miscellaneous...............................................................................................32
ARTICLE XII METHOD OF FUNDING............................................................................33
12.1 Funding......................................................................................................... 3 3
12.2 Assets............................................................................................................33
12.3 Duties of the Funding Agent.........................................................................33
12.4 Investment Powers........................................................................................ 3 3
TABLE OF CONTENTS
(continued)
Page No.
ARTICLE XIII
13.1
13.2
13.3
13.4
13.5
13.6
ARTICLE XIV
14.1
14.2
14.3
14.4
14.5
14.6
14.7
GENERAL PROVISIONS .................................
Inalienability.......................................................
Correction of Benefit Payments ..........................
Severability.........................................................
Nondiscriminatory Action ..................................
Gender/Number..................................................
Applicable Laws .................................................
....................................... 34
....................................... 34
....................................... 34
....................................... 34
....................................... 34
.......................................34
....................................... 34
MODIFICATION OR TERMINATION OF PLAN....................................35
Expectation................................................................................................... 35
Amendment................................................................................................... 3 5
Approval Under the Internal Revenue Code................................................35
Discontinuance.............................................................................................35
Termination................................................................................................... 3 5
Distribution...................................................................................................36
Consolidationor Merger............................................................................... 36
Article I
PURPOSE
Effective as of January 1, 2022, 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, 2022. 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, 2021, 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.
No part of the Retirement Trust Fund can 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 and the payment of Plan expenses.
The provisions of this amended and restated Plan shall apply as of January 1, 2022, provided
that the provisions included to comply with the provisions of Internal Revenue Code are
effective as of the dates specified in the law or applicable regulations.
Article II
DEFINITIONS
Unless the context requires, the definitions and general provisions contained in this Article
govern the construction of this restated Plan.
2.1 Accrued Benefit means either a Tier 1 Member's Accrued Benefit under Section 7.1(a),
or a Tier 2 Member's 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 8.1 commencing at
Normal Retirement Date. For a Tier 3 Member, Accrued Benefit shall mean at any point
in time, the Member's Normal Retirement Benefit as described in, and adjusted pursuant
to, Section 7.1(d).
2.2 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.
2.3 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:
(a) Interest rate assumption for alternative periodic benefits. The interest rate used for
purposes of computing alternative periodic forms of benefits for Tier 1 and Tier 2
Accrued Benefits shall be 8% effective July 1, 2000. Effective January 1, 2017,
the interest rate used for purposes of computing alternative periodic forms of
benefits for Tier I and Tier 2 Accrued Benefits shall be 7.75%. Effective January
1, 2022, the interest rate used for purposes of computing alternative periodic
forms of benefits for Tier 1 and Tier 2 Accrued Benefits shall be 6.25%.
The interest rate used for purposes of computing alternative periodic forms of
benefits for Tier 3 Accrued Benefits shall be 5.0%.
(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
of Tier 1 and Tier 2 Accrued Benefits 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. For Tier 1 and Tier 2 Accrued Benefits, on and after July 1,
2000, the mortality assumption for calculations based upon the mortality of a Tier
1 or Tier 2 Member or Beneficiary shall be a unisex rate that is 50% male, 50%
female, taken from the 1994 Group Annuity Mortality Table. For Tier 3 Accrued
Benefits the mortality assumption for calculations based upon the mortality of a
Tier 3 Member or Beneficiary shall be RP -2000 mortality projected to the year
2020.On and after January 1, 2017, the mortality assumption for calculations
based on the mortality of a Tier I or Tier 2 or Tier 3 Member or Beneficiary shall
be a unisex table that is 50% male (with a five-year set forward), 50% female
(with no set forward), taken form the RP -2014 Blue Collar Mortality Table. On
and after January 1, 2022, the mortality assumption for calculations based upon
the mortality of a Tier 1 or Tier 2 or Tier 3 Member or Beneficiary shall be a
blended table that is 105% of the Public 2010 Mortality Table weighted 50% male
(safety), 50% female (general).
2.4 Beneficiary means and includes the Member's estate, dependents, other 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.
2.5 Board or Retirement Board means the Weld County Board of Retirement as hereinabove
established. The management of the retirement system set forth in this Plan shall be
vested in a Retirement Board consisting of 5 members, one of who shall be the County
Treasurer, 2 of whom shall be nonelected County employees, and 2 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 4 -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.
2.6 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 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, the annual Compensation of each Member
taken into account under the Plan shall not exceed $200,000 in accordance with Code
section 401(a)(17). For this purpose, annual compensation means compensation during
the calendar year or such other consecutive 12 -month period over which compensation is
determined under the Plan (the "determination period"). The $200,000 limit on annual
compensation shall be adjusted for cost -of -living increases in accordance with Code
section 401(a)(17)(B). The cost -of -living adjustment in effect for a calendar year applies
to annual compensation for the determination period that begins with or within such
calendar year.
3
Notwithstanding the foregoing, a Member's compensation for purposes of the limitations
under Code sections 415 and 401(a)(17) shall include any elective deferral, as defined in
Code section 402(g)(3), and any amount that is contributed or deferred by the County at
the election of an employee and which, by reason of Code section 125, 132(f)(4),
402(e)(3), 402(h) or 457, is not includible in the gross income of the employee.
Compensation for a Plan Year shall also include Compensation (as defined above) but
paid by the later of 2'/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 County.
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%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 County 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 County rather than entering Qualified Military Service.
Back pay, within the meaning of section 1.415(c) -2(g)(8) of the Treasury 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.
Compensation shall include military differential wage payments, as defined in Code
section 3401(h)
2.7 County means Weld County.
2.8 Covered Employ means any Employee employed by the County on a full-time basis as
defined by Weld County Human Resources Policies and Procedures.
2.9 Covered Employment means the employment category for which the Plan is maintained
excluding leased employees as defined in Section 2.13 and excluding Employees of the
Weld County Health Department and elected District Attorneys.
2.10 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.
2.11 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.
2.12 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.
4
2.13 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.
2.14 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 and 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.
2.15 Funding Agent means any insurance company or trustee appointed by the Retirement
Board as provided in Article XII.
2.16 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.
2.17 Member means any person included in the membership of this Plan as provided in Article
III hereof, including Vested Members and Retired Members.
2.18 Plan means the retirement plan as set forth herein, which shall be known as the Weld
County Retirement Plan and is hereinafter referred to as the Plan.
2.19 Plan Year means the calendar year.
2.20 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.
2.21 Retired Member means a Member who commences receiving a Normal Retirement
Benefit while still employed by the County under the Rule of 80 Normal Retirement Date
provisions set forth in Section 6.1 or 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.
2.22 Retirement Benefit means any retirement benefit provided for in Article VI hereof.
2.23 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.
2.24 Spouse means a Member's legal spouse under applicable law, or a Member's civil union
partner under State of Colorado law for all purposes under this Plan, except a spouse who
is a Distributee as defined in Section 8.8(c) does not include a civil union partner under
federal law.
5
2.25 Tier 1 Member means a Member with an initial date of hire prior to June 16, 2003,
including a former Member who is subsequently rehired on or after June 16, 2003 and
retains service credit for periods prior to June 16, 2003. A Tier 1 Member is entitled to
benefits determined under the rules of the Plan in effect prior to June 16, 2003, including
any Accrued Benefit based on Credited Service both before and after June 16, 2003.
2.26 Tier 2 Member means a Member with an initial date of hire on or after June 16, 2003 and
prior to January 1, 2010, or a former Member who is subsequently rehired on or after
June 16, 2003 and prior to January 1, 2010 with no service credit or Accrued Benefits
under the Plan upon rehire after having received a refund of 100% of his Accumulated
Contributions. A Tier 2 Member is entitled to benefits determined under the rules of the
Plan in effect on and after June 16, 2003, including any Accrued Benefit based on
Credited Service both before and after January 1, 2010.
2.27 Tier 3 Member means a Member with an initial hire date on or after January 1, 2010 or a
former Member with no prior Accrued Benefit that was earned before the individual
became a Tier 3 Member or who is subsequently rehired on or after January 1, 2010 after
having received a refund of 100% of his Accumulated Contributions.
2.28 Trustee means the trustee referred to in Article XII as may be selected by the Retirement
Board under the terms of the trust agreement.
2.29 Valuation Date means the last day of each Plan Year ending on or after December 31,
2010.
2.30 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 or who is entitled to receive, or whose Beneficiary or estate is
entitled to receive, a Retirement Benefit under this Plan.
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 Employee 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 Services Department who were previously excluded from the Plan became
Members of the Plan and began receiving Current Service credit.
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.
Article IV
CREDITED SERVICE
4.1 Credited Service defined in Section 2.10 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 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.
In general, Credited Service is not relevant to determining benefit amounts for Tier 3
Members, and thus Credited Service prior to January 1, 2010 will not be recognized for
Tier 3 Members, except for determining vesting and retirement eligibility.
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 as
provided by Section 4.7, as well as periods of absence under Section 4.5(c) and any
period of absence during which a Member is receiving worker's compensation pursuant
to law, which 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 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 a period of Qualified Military Service in the
uniformed services of the United States (as defined in Section 4.6), followed by a
return to Covered Service with Weld County within the time period required
under federal rules.
(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 8 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 8 years.
(f) A leave of absence pursuant to the Family and Medical Leave Act of 1993, which
shall not be counted as a Break in Service for purposes of determining eligibility
and vesting.
Upon incurring a Break in Service and receiving a distribution of 100% of his
Accumulated Contributions, a Member shall lose all prior Credited Service and Variable
Benefit Units (as defined in Section 7.1(d)(1)), as applicable. If a Member returns to
service as an Employee prior to incurring a Break in Service and repays the Fund, within
12 months of rehire, any amounts received because of his prior termination with interest
pursuant to Section 2.2 from the date received to the date of repayment, the prior
Credited Service and any Variable Benefit Units for which such amounts were received
shall be restored.
4.6 Qualified Military Service. Notwithstanding any provision of this Plan to the contrary,
contributions, benefits and service credit with respect to "Qualified Military Service"
shall be provided to Members for purposes of vesting, retirement eligibility and
calculation of retirement benefits in accordance with the Uniformed Services
Employment and Reemployment Rights Act of 1994 (USERRA), as amended from time
to time, and Code section 414(u). For all purposes under the Plan, "Qualified Military
Service" means services in the uniformed service of the United States, as defined in 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 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 service," although such appointee is
not a member of the "uniformed services" as defined by USERRA.
Notwithstanding any provision of this Plan to the contrary, if any Member dies while
performing Qualified Military Service, the deceased Member's Beneficiaries are entitled
to any additional benefits (other than benefit accruals relating to the period of Qualified
Military Service) provided under this Plan as if had the Member resumed and then
terminated employment on account of death.
9
4.7 Purchase of Service Credit Relating to Noncovered Employment. Any Member who was
a Covered Employee on October 1, 1996 was permitted to make an irrevocable election
by December 15, 1996 to purchase service credit relating to noncovered employment,
pursuant to Plan rules in effect at such time and in accordance with Code section 415(n).
To the extent such service credit was purchased, it is considered Credited Service under
this Article IV.
10
Article V
CONTRIBUTIONS
5.1 Member Contributions. During a period of Current Service in the Plan, every Member
shall contribute to the Plan by means of payroll deductions an amount equal to a specified
percentage of monthly Compensation, as set forth below:.
Period of Member Contributions Rate
Prior to January 1, 1984
Percentage Rate of Member
Contributions
4%, plus 2% of monthly
in excess of $400
_____________________________________Compensation
January
1,
1984
- December 31,
1986
5.5%
Jan
1,
1987
— December 31,
2004
6.0%
January
1
2005
— December 31,
2005
7.0%
January
1,
2006
— December 31,
2006
7.5%
Janunry
1
2007
— December 31,
2007
8.0%
Janusiir
1,
2008
— December 31,
2008
8.5%
January
1,
2009
— December 15,
2011
9.0%
December
16, 2011 — August 3,
2019
10.75%
After
August
3,
2019
9.0%
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 Accumulated Contributions picked up by the
County under this Section 5.1 shall be separately accounted for in accordance with
Section 2.2 and 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 or earning Variable Benefit Units,
as applicable.
5.2 County Contributions. The County will, from time to time, at least annually, make
contributions to the Fund in an amount as determined by the County, but which will be at
a rate not less than the rate of 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.
11
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 until August
15, 2009. After August 15, 2009, such contributions shall not be earmarked for retiree
cost of living benefits unless the Plan is at least 75% funded, using an appropriate
measure of assets and liabilities as selected by the Retirement Board. Any such
contributions that are not earmarked for retiree cost of living benefits shall be available to
pay other benefits under the Plan. After August 3, 2019, any contributions earmarked for
retiree cost of living benefits under this Section 5.2 shall not exceed 1% each from the
County and the Members.
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 or their
Beneficiaries under this 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.
5.3 Irrevocability of Contributions. All contributions made by the County shall be irrevocable
and shall be allocated to the Retirement Trust as governed by the Retirement Board in
accordance with Article XII. In the case of contributions made by the County that are
made by a mistake of fact, such contributions shall be returned to the County within one
year of the date the contribution was made.
5.4 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, because a Member or Beneficiary cannot be located as
set forth in Section 10.3, 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.
12
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 or attainment of
the Rule of 80. A Member shall be fully vested in his Retirement Benefit if he retires on
or after his Normal Retirement Date. A Member attains Normal Retirement Date under
the Rule of 80 when he reaches at least age 55 and his service and age, when added
together, equal 80 or more.
6.2 Early Retirement.
(a) Regular Early Retirement. Any Member who has attained the age of 55 years and
has completed at least 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.
(1) A Tier 1 Member who has attained the age of 55 years and has completed
at least 8 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.
(2) A Tier 2 Member who has attained the age of 55 years and has completed
at least 20 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 Tier 1 Member 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 the sum of his age plus his
Credited Service at termination equals 75 or more with respect to such benefit.
6.3 Vested Retirement. In the event a Member terminates prior to his Normal Retirement
Date, and has 5 or more years of Credited Service, he may elect to either: (a) 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 Vested
Retirement Benefit that shall be payable at the Vested Member's Normal Retirement
Date. In lieu of receiving the deferred Vested 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 vesting
of a Member's Accrued Benefit shall be determined on his date of termination in
accordance with the following schedule:
13
Completed Years Percent of Accrued
Of Credited Service Benefit Vested
Less than 5 0%
5 or more 100%
In the event that 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 30 days after
his term of office expires, then the minimum of 5 years of Credited Service shall not be
required to be vested.
6.4 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. Pursuant to Section 10.3, distribution of a
Member's Retirement Benefit shall begin no later than the "Required Beginning Date",
which is April 1 of the calendar year following the later of the calendar year in which: (a)
the Member attains age 701/2 (for Members born before July 1, 1949) or age 72 (for
Members born on or after July 1, 1949); or (b) retires.
6.5 Disability Retirement. If it is established by the Retirement Board that a Tier 1 Member
or Tier 2 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 latest of the following: (a) the date upon
which the Disability is determined by the Board to have occurred; (b) the date payments
cease under the County's long-term disability insurance contract; or (c) the Member's
date of termination of employment. Tier 3 Members are not eligible for a Disability
Retirement Benefit.
If the disabled Member's Disability ceases prior to his Normal Retirement Date, and he is
not reemployed by the County and 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 Retirement
Date, a Retirement Benefit equal in amount to the Early Retirement Benefit 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 applicable
provisions of Article VII 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).
14
6.6 Retirement Date. A Member's "Retirement Date" shall be his Normal Retirement Date,
Early Retirement Date, Vested Retirement Date, Delayed Retirement Date, or Disability
Retirement Date, whichever is applicable.
15
Article VII
RETIREMENT BENEFITS
7.1 Normal or Delayed Retirement.
(a) Tier I Member Accrued Benefit. Upon retirement at or after his Normal
Retirement Date, a Tier I Member shall be entitled to a monthly Retirement
Benefit for 10 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 factional years). In determining the
Tier I Member's Accrued Benefit, Credited Service attributable to periods of
employment both before and after June 16, 2003 shall be considered.
(b) Tier 2 Member Accrued Benefit. Upon retirement at or after his Normal
Retirement Date, a Tier 2 Member 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 factional years). In determining the Tier 2 Member's Accrued
Benefit, Credited Service attributable to periods of employment both before and
after January 1, 2010 shall be considered.
(c) The Normal Retirement Benefit for Tier 1 and Tier 2 Members shall not be more
than 82.5% 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.
(d) Tier 3 Member Accrued Benefit. Upon retirement at or after his Normal
Retirement Date, a Tier 3 Member shall be entitled to monthly benefit for his life
based on Variable Benefit Units credited to the Tier 3 Member. A Tier 3
Member's monthly Normal Retirement Benefit earned under this subsection (d)
and payable commencing on his Normal Retirement Date shall equal the product
of (i) the total number of Variable Benefit Units credited to the Member, times (ii)
the Variable Benefit Unit Value as of the most recent prior Valuation Date,
divided by (iii) 12. Such monthly benefit will be subject to annual adjustments as
set forth in paragraph (6) below.
(1) Variable Benefit Units. A Tier 3 Member shall be credited with Variable
Benefit Units at the end of each Plan Year during which the Member
performs any service for the County as a Tier 3 Member, except for the
Plan Year in which the Member's Commencement Date occurs. In the
Plan Year in which the Member's Commencement Date occurs, a Tier 3
Member is credited with Variable Benefit Unit(s) as set forth in paragraph
(2) below. The amount of Variable Benefit Units credited to the Member
shall equal the product of (i) the Member's Compensation for the Plan
Year, times (ii) 1.9% (the applicable multiplier), divided by (iii) the
16
Variable Benefit Unit Value as of the Valuation Date occurring at the end
of such Plan Year after any adjustment to the Variable Benefit Unit Value
under subparagraph (3) below as of such Valuation Date.
(2) If a Tier 3 Member separates from service with the County during a Plan
Year and the Member's Commencement Date occurs during such Plan
Year then Variable Benefit Units for such Member shall be credited to the
Member as of the end of the Plan Year prior to Plan Year in which the
next Commencement Date occurs in accordance with paragraph (1) above.
The monthly benefit payable to the Member during the remainder of the
Plan Year in which the Member's Commencement Date occurs shall be
based on the number of Variable Benefit Units credited to the Tier 3
Member at the end of the previous Plan Year in accordance with
paragraph (1) above.
As of the Valuation Date at the end of the Plan Year in which the
Commencement Date occurs, the Variable Benefit Unit(s) credited to the
Tier 3 Member shall be increased by the product of (i) the Member's
Compensation for the Plan Year, times (ii) 1.9%, divided by (iii) the
Variable Benefit Unit Value as of the Valuation Date occurring at the end
of the Plan Year in which the Commencement Date occurs, after any
adjustment to the Variable Benefit Unit Value under subparagraph (3). For
purposes of this subsection (d), "Commencement Year Benefit Unit"
means this Variable Benefit Unit accrued by a Tier 3 Member during the
Plan Year in which the Member's Commencement Date occurs. For
purposes of this subsection (d), "Commencement Date" means the first
day of the calendar month coincident with or following a Tier 3 Member's
Retirement Date.
(3) Variable Benefit Unit Value. The Variable Benefit Unit Value shall be
expressed (and rounded) to three decimal places and shall be 10.000 as of
December 31, 2010. As of each subsequent Valuation Date, the Variable
Benefit Unit Value shall be adjusted by multiplying the Variable Benefit
Unit Value as of the preceding Valuation Date by the ratio of (i) divided
by (ii) where: (i) is equal to "1" plus the Annual Rate of Investment
Return as determined in accordance with subparagraph (4) earned by the
Plan assets for a Plan Year ending with the Valuation Date; and (ii) is
equal to 1.050.
(4) Annual Rate of Investment Return. The Annual Rate of Investment Return
for a Plan Year shall be based on the market value of assets of the
Retirement Trust as set forth in this paragraph (4) to reflect income
(including accrued income) earned during the Plan Year and both realized
and unrealized gains and losses. The Annual Rate of Investment Return
shall be expressed as an annual percentage rate rounded to three decimal
places. For purposes of determining the Variable Benefit Unit Value in
accordance with paragraph (3), the Annual Rate of Investment Return for
a Plan Year shall be based on an average of the annual rate of investment
17
returns for the previous 5 Plan Years determined as of the Valuation Date
that precedes the first day of the Plan Year by one year and one day.
(5) Postponed Retirement Benefits. A Tier 3 Member who remains employed
by the County after his Normal Retirement Date shall continue to earn
Variable Benefit Units under paragraph (1) during such employment as a
Covered Employee. Subject to the provisions of Section 10.3, such a
Member's benefits shall be determined and paid in accordance with this
paragraph (5). The date such Tier 3 Member actually separates from
service with the County shall be the Member's "Postponed Retirement
Date". The Member may request a Postponed Retirement Benefit that will
begin on the first day of any full calendar month coincident with, or
following the Member's Postponed Retirement Date. The Postponed
Retirement Benefit earned under this subsection (d) shall equal the product
of (i) the total number of Variable Benefit Units credited to the Member,
times (ii) the Variable Benefit Unit Value as of the most recent prior
Valuation Date, divided by (iii) twelve (12). Such monthly benefit will be
subject to annual adjustments as defined in paragraph (6) of this Section
7.1(d).
The monthly benefit payable to the Member during the remainder of the
Plan Year in which the Member's Postponed Retirement Date occurs shall
be based on the number of Variable Benefit Units credited to the Tier 3
Member at the end of the previous Plan Year, and then increased by the
value of the Commencement Year Benefit Unit as of the Valuation Date at
the end of the Plan Year in which the Postponed Retirement Date occurs,
as set forth in paragraph (2) above.
(6) Annual Benefit Adjustment. Beginning with the first Plan Year following
the Commencement Date, the amount of a Tier 3 Member's monthly
benefit shall be adjusted (up or down), effective with the first payment for
the Plan Year, to equal the product of (i) the number of Variable Benefit
Units credited to the Member (after any adjustment pursuant to Section
7.2(d), times (ii) the Variable Benefit Unit Value as of the most recent
prior Valuation Date.
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 for a Tier 1 Member shall be 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 by which his Early Retirement
Date precedes his Normal Retirement Date (2.5% per year). The monthly
payment for a Tier 2 Member shall be his Accrued Benefit as of his date of
retirement, as determined pursuant to Section 7.1(b) reduced by .004167 times the
number of months by which his Early Retirement Date precedes his Normal
Retirement Date (5% per year).
18
(b) Special Early Retirement. A vested Tier 1 or Tier 2 Member eligible for Special
Early Retirement may elect to retire and have his payments commence as of his
Early Retirement Date. The monthly payment for a Tier 1 Member shall be 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 62nd birthday (2.5% per year). The monthly
payment for a Tier 2 Member shall be 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 (2.5% per year).
(c) Rule of 75 Early Retirement. A Tier 1 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) Tier 3 Early Retirement Benefit. A Tier 3 Member who separates from service
with the County on or after his or her Early Retirement Date may commence
receiving a benefit under the Plan on the Commencement Date. If the Member's
Commencement Date precedes the Member's Normal Retirement Date, the Tier 3
Member's Accrued Benefit shall be determined as the number of Variable Benefit
Units credited to the Member reduced to reflect commencement before his
Normal Retirement Date by multiplying the number of Variable Benefit Units by
the applicable Early Retirement Reduction Factor for the Member's age at his
Commencement Date. The Tier 3 Member's monthly Early Retirement Benefit
shall equal the product of (i) the reduced number of Variable Benefit Units
credited to the Member, times (ii) the Variable Benefit Unit Value as of the most
recent prior Valuation Date, divided by (iii) twelve (12). Such monthly benefit
will be subject to annual adjustments as defined in Section 7.1(d)(6).
If the Member's Commencement Date is within the same Plan Year as the
Member's Early Retirement Date, the monthly benefit payable to the Member
during the remainder of the Plan Year in which the Member's Early Retirement
Date occurs shall be based on the number of Variable Benefit Units credited to the
Tier 3 Member at the end of the previous Plan Year, and then increased by the
value of the Commencement Year Benefit Unit as of the Valuation Date at the
end of the Plan Year in which the Early Retirement Date occurs, as set forth in
Section 7.2(d)(2), all of which shall be reduced by multiplying them by the
applicable Early Retirement Reduction Factor for the Member's age at his
Commencement Date.
The "Early Retirement Reduction Factor" for any age shall be "1" minus 5/12 of a
percent for each month that the Member's Commencement Date precedes his
Normal Retirement Date (5% per year).
7.3 Vested Retirement Benefit. A Member's deferred Vested Retirement Benefit shall be
determined as provided under Section 7.1 at Normal Retirement Date, and reduced in
accordance with Section 7.2(a), (b) or (d), as applicable for the Member's age and Tier on
19
his Retirement Date. 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.
7.4 Nonvested Member Benefits. In the event a Member terminates employment prior to his
Normal Retirement Date, and he has less than 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. 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.
7.5 Disability Retirement. A Tier 1 Member or Tier 2 Member who is disabled, as defined
herein, shall be entitled to a Disability Retirement Benefit equal to his Accrued Benefit
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, and the applicable Accrued
Benefit formula determined in accordance with Section 7.1(a) or (b) as of the date of
commencement of Disability Retirement Benefits pursuant to Section 6.5. Tier 3
Members are not eligible for a Disability Retirement Benefit.
7.6 Payments of Small. Benefits. If the single sum value of the monthly Retirement Benefit
payable to a Retired Member or Beneficiary does not exceed $1,000 at the time of his
retirement, the Retirement Board shall pay the Retired Member or Beneficiary 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. However, no vested
Tier 3 Member shall receive the single sum value of their Tier 3 Accrued Benefit,
regardless of the single sum amount.
If the single sum value of the monthly Retirement Benefit payable to a Retired Member
or Beneficiary exceeds $1,000 but the monthly Retirement Benefit amount payable to a
Retired Member or Beneficiary is less than $100.00, the Retirement Board may make
Retirement Benefit payments on a quarterly basis, as elected by the Retired Member or
Beneficiary.
7.7 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, 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
7.8 herein.
The eligibility for, and amount of, any benefit of any kind, payable commencing after
December 31, 2014 under this Plan to or for any person who was a Member of the
20
previous plan and who became a Member of this restated Plan as of January 1, 2021,
shall be determined under the provision of this Plan.
7.8 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.
21
Article VIII
OPTIONAL BENEFITS
8.1 Standard Form of Payment. The standard form of payment of Retirement Benefits,
computed as set forth in Article VII, shall be paid in equal monthly payments
commencing one month after the Retirement Date. With respect to a Tier I Member's
Retirement Benefit, the standard form of payment shall be a 10 -year certain and life
benefit. With respect to a Tier 2 or Tier 3 Member's Retirement Benefit, the standard
form of payment shall be a monthly benefit for the Retired Member's lifetime.
Except as provided in Section 10.2, 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.
Subject to such uniform rules and regulations as the Retirement Board may prescribe, a
Vested Member may, in lieu of the standard form of payment of 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 Vested Member must make an 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 the Member's Spouse during the life of such Spouse.
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 Member's
Spouse during the life of such Spouse.
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. A Tier 1 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.
22
8.6 Spousal Consent for Retirement Benefit. If a 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 acknowledgement 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 standard form of payment of
benefits or under the optional Single Life Benefit form or under any optional Life and
Term Certain Benefit set forth in Section 8.4 (including life and term certain benefits for
5, 10 or 15 years as elected by the Member).
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 confirms with the minimum
distribution incidental benefit rule in Treasury Reg. section 1.401(a)(9)-6.
8.8 Direct Rollover. Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a Distributee's election under this Section 8.8, 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 of 100%
of the Eligible Rollover Distribution. For purpose of applying this Section 8.8, the
following definitions shall apply:
(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: (1) 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 10 years or more; (2) any
distribution to the extent such distribution is required under section 401(a)(9) of
the Code; and (3) 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).
23
(b) Eligible Retirement Plan. An Eligible Retirement Plan is an individual retirement
account described in section 408(a) of the Code, and 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 Colorado Revised Statutes Section 14-10-113.
An Eligible Retirement Plan includes a Roth IRA described in Code section
408A, subject to restrictions that apply to rollovers into a Roth IRA. For an
Eligible Rollover Distribution to a designated Beneficiary other than the spouse,
an Eligible Retirement Plan is only an individual retirement account described in
Code section 408(a) or an individual retirement annuity described in Code section
408(b) that is treated as an inherited IRA in accordance with the provisions of
Code section 402(c)(1 1).
(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 402(c)(11).
(d) Direct Rollover. A Direct Rollover is an Eligible Rollover Distribution by the
Plan to an Eligible Retirement Plan specified by the Distributee that accepts the
Distributee's Eligible Rollover Distribution.
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Article IX
DEATH BENEFITS
9.1 Death of an Active Member Before Normal Retirement Date. In the event a Tier 1 or Tier
2 Member of the Plan dies while accruing Current Service, the following death benefits
shall be payable. The death benefits under this Section 9.1 are only payable on behalf of a
Tier 3 Member if such Active Member was vested in his Accrued Benefit before death.
(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) 2 times the amount of his
Accumulated Contributions 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. A Member's Accrued Benefit is
determined in accordance with Article VII, based on whether he is a Tierl, Tier 2
or Tier 3 Member.
(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, 2 times the amount of his Accumulated Contributions.
9.2 Death of a Vested Member Before Payments Commence. In the event that a Vested
Member dies prior to the commencement of a Retirement Benefit, the following death
benefits shall be payable:
(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) 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. A Member's Accrued Benefit is determined in accordance with
Article VII, based on whether he a Tierl, Tier 2 or Tier 3 Member.
(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, 2 times the amount of his Accumulated Contributions.
9.3 Death of a Non -Vested Member After Termination of Employment. In the event a
Member terminates employment prior to Normal Retirement Date and has less than 5
years of Credited Service, and then dies prior to receiving a refund of his Accumulated
Contributions pursuant to Section 7.4, a refund of the Member's Accumulated
Contributions shall be payable to the non -Vested Member's surviving Spouse, if any, or
the Member's Beneficiary designated in accordance with Section 9.8, if living, or
otherwise to the Member's estate, as soon as administratively practicable in a single sum.
25
9.4 Death of a Member Before Payments Commence. In the event the Member dies before
distribution of his interest begins under Section 9.1, or 9.2, in accordance with Code
section 401(a)(9), 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 designated beneficiary,
distributions may be made over the life or over a period certain not greater than
the life 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 designated 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 December 31 of the calendar year immediately following
the calendar year in which the Member dies or December 31 of the calendar year
in which the Member would have attained age 70%2 (for Members born before
July 1, 1949) or age 72 (for Members born on or after July 1, 1949).
9.5 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.
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 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 cover the distribution of money payable under this Plan.
9.8 Designation of Beneficiary. If the 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
26
under the preceding sentence), and shall not be effective unless and until filed with the
Retirement Board.
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Article X
BENEFIT APPLICATION AND LIMITATIONS
10.1 Application for Benefits. A Member shall begin receiving benefit payments as of the date
that the Member has fulfilled all the conditions specified in the Plan for entitlement to
payment, including terminating employment the County and filing an application for
retirement benefits which has been approved by the Retirement Board. A Member who
files an application for benefits must provide all information required on the application
form approved by the Board. A Member's designation of Beneficiary in the application
for retirement benefits supersedes any previous designation of Beneficiary (or
Beneficiaries) by the Member.
10.2 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. The above restrictions on reemployment of
Retired Members shall be subject to special rules on working after retirement for Retired
Members who return to work for the County at less than full-time status, as set forth in
the Weld County Human Resources Code.
Effective May 16, 2019, a Member who reaches Normal Retirement Date under the Rule
of 80, as set forth in Section 6.1, shall be eligible to commence receiving a Normal
Retirement Benefit while continuing employment with the County or return to work with
the County without his Normal Retirement Benefit payments being suspended during
such period of employment, regardless of full-time or part-time employment status. Such
Retired Member will continue to participate in the Plan, including making Member
Contributions under Section 5.1 and earning an Accrued Benefit in accordance with
applicable provisions of the Plan. However, for these Retired Members who commence
receiving a Normal Retirement Benefit under the Rule of 80 while continuing
employment with the County or returning to work with the County, any Accrued Benefit
earned after initial retirement shall be reduced by the Actuarial Equivalent of Retirement
Benefit payments received while employed or reemployed after reaching Normal
Retirement Date under the Rule of 80.
10.3 Required Minimum Distributions. Notwithstanding any other provision of the Plan, all
distributions from this Plan shall comply with Code section 401(a)(9) (as applicable to a
governmental plan as defined in Code section 414(d)) and a good faith interpretation of
the regulations thereunder, including the incidental death benefit provisions of Code
section 401(a)(9)(G). Further, such rules under Code section 401(a)(9) shall override any
Plan provision that is inconsistent with Code section 401(a)(9).
28
Under no circumstances shall payment of benefits begin later than the Member's Required
Beginning Date. A Member's "Required Beginning Date" is April 1 of the calendar year
following the later of the calendar year in which the Member attains 70 '/2 years of age (for
Members born before July 1, 1949) or 72 years of age (for Members born on or after July
1, 1949) or the calendar year in which the Member terminates employment. Payment of
benefits shall be distributed over the life of the Member or over the lives of the Member
and a designated Beneficiary, or over a period not extending beyond the life expectancy of
such Member or the life expectancy of such Member and a designated Beneficiary.
Notwithstanding any provision herein to the contrary, where benefit payments to the
Member commence before death, such benefit payments to a surviving spouse or other
Beneficiary must continue to be made at least as rapidly as the method in effect before
the Member's death.
When a Member dies before distribution of benefits has begun, the Member's entire
vested interest in the Plan, if any, shall be distributed in accordance with Section 9.4.
If the Plan is unable to make a timely payment of a required minimum distribution to a
Member or Beneficiary, in accordance with Code section 401(a)(9) and the regulations
thereunder, where such individual cannot be located or is unresponsive to a request to file
an application for benefits, the Board shall direct that the benefit payments of such Member
or Beneficiary are forfeited as of the individual's Required Beginning Date, subject to
restoration if the individual is later located and files an application for benefits. Prior to
forfeiture under this provision, the Plan shall make reasonable efforts to locate and contact
lost Members and Beneficiaries in accordance with applicable guidance for qualified plans
from the Internal Revenue Service.
10.4 Limitations on Benefits. For any limitation year the annual benefit paid from the Plan
cannot exceed the annual dollar limitation set forth under Code section 415(b) and the
regulations thereunder, as such limits are applicable to a governmental plan (as defined in
Code section 414(d)), and as such annual dollar limit is indexed in accordance with Code
section 415(d), which are hereby incorporated by reference. A limitation as adjusted
under Code section 415(d) will apply to calendar years ending with or within the calendar
year for which the adjustment applies, but a Member's benefit shall not reflect the
adjusted limit prior to January 1 of such calendar year. This automatic annual adjustment
to the defined benefit annual dollar limitation under Code section 415(d) shall apply to
Members who have terminated from employment. The limitation year shall be the
calendar year.
If this Plan must be aggregated with another plan to determine the effect of Code section
415 on a Member's annual benefit, and if the benefit must be reduced to comply with
Code section 415, then such reduction shall be made pro rata between the two plans, in
proportion to the Member's credited service in each plan.
The above limitations are intended to comply with the provisions of Code section 415, as
amended and as such applies to governmental plans, so that the maximum benefits
provided by the Plan shall equal the maximum amounts allowed under Code section 415
and regulations thereunder. If there is any discrepancy between the provisions of this
29
Section 10.4 and Code section 415, such discrepancy shall be resolved in such a way as
to give full effect to the provisions of Code section 415.
10.5 Direct Payment of Qualified Health Insurance Premiums. (removed effective January 1,
2022)
30
Article XI
ADMINISTRATION OF PLAN
11.1 Retirement Board. The management of the Plan and Fund 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 2.5
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.
(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.
) 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.
31
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.
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.
32
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.
Notwithstanding any other provisions to the contrary, upon termination of the Plan or
complete discontinuance of contributions under the Plan, the rights of all Members to
benefits accrued to the date of such termination or discontinuance, to the extent then
funded, or the amounts credited to the Members' accounts shall be nonforfeitable.
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.
(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.
33
Article XIII
GENERAL PROVISIONS
13.1 Inalienability. 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 or Beneficiaries shall not at any time be subject to
the claims of creditors or liabilities or torts of said Members or Beneficiaries, and shall
not be liabilities to attachment, execution, or other legal process. Notwithstanding the
foregoing, 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.
13.2 Correction of Benefit Payments. If the Board determines an overpayment or
underpayment has been made to a Member or Beneficiary due to an incorrect statement
by the Member or Beneficiary or a mistake of fact, the amount of future benefit payments
may be adjusted to correct any errors. If a Member or Beneficiary receives an
overpayment of benefits due to an administrative error, failure to inform the Fund of
reemployment or death, or any other reason, such individual has an obligation to repay
the erroneous payment amount to the Fund.
13.3 Severability. If any provision of this Plan, or any step in administration of the Plan, is
held to be illegal for any reason, such illegality or invalidity shall not affect the remaining
provisions of the Plan, unless such illegality or invalidity prevents the accomplishment of
the purposes and objectives of the Plan. In the event of any such holding, the Board will
immediately take action to amend the Plan to remedy the defect.
13.4 Nondiscriminatory Action. Any discretionary acts to be taken under the provisions of this
Plan by the County or by the Board, in respect to the classification of employees,
contributions or benefits, shall be uniform and applicable to all similarly situated.
13.5 Gender/Number. The masculine pronoun wherever used shall include the feminine and a
singular shall include a plural, where applicable.
13.6 Applicable Laws. The laws of the State of Colorado shall determine all questions arising
with respect to provisions of this Plan, except to the extent superseded by federal law.
This Plan is intended to comply with the requirements for tax qualification under Code
section 401(a) and all regulations thereunder, and is to be interpreted and applied
consistent with that intent. In addition, this Plan was established and is operated
consistent with basic principles as a governmental plan (as defined under Code section
414(d)).
34
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 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 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 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. The County Commissioners reserve the right to terminate this Plan in whole
or in part at any time. The rights of all affected Members and their Beneficiaries to their
accrued benefits under the Plan as of the date of termination, to the extent then funded,
shall be nonforfeitable. In the event of a partial or complete termination of the Plan, the
assets then remaining in the Plan after providing for any administrative expenses shall be
allocated for the benefit of Members and their Beneficiaries as soon as administratively
practicable after termination of the Plan and Fund, until all liabilities for accrued benefits
have been satisfied. All affected funds covered by the Funding Agreement shall be
converted to cash and allocated to affected Members and Beneficiaries on the following
priority basis:
(a) An amount equal to the Accumulated Contributions which would be payable to
the Members or Beneficiaries should their deaths occur on the date of the
termination of the Plan.
35
(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
services.
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 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 to the extent permitted by law.
14.7 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.
36
Hello