HomeMy WebLinkAbout2009 06 16 Resolution 2003-44
ADOPTED 11/10/03
RESOLUTION NO.2003-44
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, MERGING THE MONEY PURCHASE
PENSION PLAN AND TRUST FOR EMPLOYEES OF THE CITY OF
WINTER SPRINGS INTO THE DEFINED BENEFIT PLAN AND TRUST
FOR EMPLOYEES OF THE CITY OF WINTER SPRINGS; AMENDING
THE WITNESSETH CLAUSE TO PROVIDE THAT THE RESTATED
DEFINED BENEFIT PLAN IS EFFECTIVE OCTOBER 1, 1997;
AMENDING ARTICLE I OF THE DEFINED BENEFIT PLAN TO
CLARIFY THE DEFINITION OF "EMPLOYEE"; AMENDING ARTICLE
H OF THE DEFINED BENEFIT PLAN TO DEFINE EMPLOYEES
EXCLUDED FROM THE PLAN AND TO PROVIDE FOR THE
INCLUSION OF EMPLOYEES WITH NON-CONTRIBUTING YEARS OF
SERVICE UNDER CERTAIN CIItCUMSTANCES; AMENDING
ARTICLE III OF THE DEFINED BENEFIT PLAN TO PROVIDE FOR
CITY CONTRIBUTIONS IN AN AMOUNT NECESSARY TO FUND THE
PLAN ON A SOUND ACTUARIAL BASIS, TO CLARIFY THE
LIlVIITATION ON ANNUAL BENEFITS, TO. PROVIDE FOR USE OF
MORTALITY TABLES TO DETERMINE ACTUARIAL EQUIVALENTS,
TO CLARIFY THE MAX;tMUM PERMISSIBLE AMOUNT OF ANNUAL
ADDITIONS, TO PROVIDE FOR A DEFINITION OF "APPLICABLE
MORTALITY TABLE", AND TO ELIMINATE SECTION 3.07;.
AMENDING ARTICLE TV OF THE DEFINED BENEFIT PLAN TO
PROVIDE FOR A THREE PERCENT CONTRIBUTION BY
PARTICIPANTS, TO PROVIDE FOR DIRECT TRANSFER OF
ELIGIBLE ROLLOVER DISTRIBUTIONS, TO PROVIDE FOR THE
"PICK UP" OF PARTICIPANT CONTRIBUTIONS BY THE
EMPLOYER, TO PROVIDE FOR THE TRANSFER OF THE
PARTICIPANT ACCOUNT BALANCE FROM THE MONEY PURCHASE
PENSION PLAN TO THE DEFINED BENEFIT PLAN AND TRUST, AND
TO PROVIDE FOR THE DISTRIBUTION OF SUCH ACCOUNT
BALANCE UPON NORMAL RETIREMENT; AMENDING ARTICLE V
OF THE DEFINED ~BENEFTT PLAN TO PROVIDE A THREE PERCENT
BENEFIT MULTIPLIER FOR SERVICE AFTER OCTOBER 1, 2000,
REVISING PROVISIONS RELATED TO ACCRUAL YEAR OF
SERVICE, AND DELETING THE FLOOR-OFFSET ARRANGEMENT;
AMENDING ARTICLE VI OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE TO A PARTICIPANT IN A LUMP
SUM UPON EARLY RETIREMENT; AMENDING ARTICLE VIII OF
THE DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF
DEFERRED VESTED PENSION PAYABLE TO A PARTICIPANT IN A
.
LUMP SUM, CREATING A NEW SECTION 8.05(8) TO PROVIDE FOR
ONE HUNDRED PERCENT VESTING OF REQUIRED PARTICIPANT
CONTRIBUTIONS, AND MAHING TECHNICAL AMENDMENTS;
AMENDING ARTICLE IX OF THE DEFINED BENEFIT PLAN TO
MODIFY THE AMOUNT PAYABLE IN A LUMP SUM TO A
PARTICIPANT'S SURVIVOR; AMENDING ARTICLE X OF THE
DEFINED BENEFIT PLAN TO MODIFY THE AMOUNT OF
NONFORFEITABLE ACCRUED BENEFIT ABOVE WI3ICH A
PARTICIPANT MUST CONSENT IN WRITING FOR ~ ANY
DISTRIBUTION, AND MODIFYING THE AMOUNT OF ACCRUED
BENEFIT, NORMAL RETIREMENT BENEFIT, AND DEATH BENEFIT
PAYABLE TO A PARTICIPANT IN A LUMP SUM; AMENDING
ARTICLE Xi OF THE DEFINED BENEFIT PLAN TO. PERMIT THE
TRUSTEES TO ACCEPT TRANSFER OF ASSETS IN THE MONEY
PURCHASE .PENSION PLAN; PROVIDING FOR CONFLICTS;
PROVIDING FOR SEVERABILTTY; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Commission approved certain changes to the .City's retirement
program for employees in July 2000 and September 2001; and
WHEREAS, the changes to the retirement program approved by the City Commission
require merging the Money Purchase Pension Plan and Trust for Employees of the City of
Winter Springs Plan and Trust with the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs, and amending provisions of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
Section 1.
A. That the Money Purchase Pension Plan and Trust for Employees of the City of Winter
Springs be merged into the Defined Benefit Plan and Trust for the Employees of the City of
Winter Springs, effective October 1, 2000.
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B. That the Money Purchase Plan and Trust for Employees of the City of Winter Springs
cease to exist as of October 1, 2000.
C. That upon the merger of the two plans, all participant accounts and all other assets of
the Money Purchase Plan and Trust for Employees of the City of Winter Springs, together with
earnings and interest thereon, be transferred to and . become an integral part of the Defined
Benefit Plan and Trust for Employees of the. City of Winter Springs; provided that said
participant accounts shall be available for distribution as permitted by the Defined Benefit Plan
and Trust for Employees of the City. of Winter Springs.
Section
That the. Witnesseth~ Clause of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs.be amended as follows:
The City of Winter Springs establi~escontinues. within this Trust Agreement, a
Plan for the
the purpose of providing retirement benefits for. eligible Employees. This Plan is an
amended plan in restated form the oriig nal plan being effective October 1 1997 and this
restated Flan is also effective October 1 1997 Lexcept •to the extent otherwise provided
The provisions of this Plan apply solely to an Employee whose employment
with the Employer terminates on or after the Effective Date of the Plan. If an Employee's
employment with the Employer terminates prior to the Effective Date, that Employee is
not entitled to any benefit under the Plan.
Section 3.
That Section .1.06 of the Defined Benefit Plan and Trust for Employees of .the City of
Winter Springs be amended as follows:
1.06 "Employee" means any .employee of the Employer. Individuals who
perform services for the Employer in any ca,paci other than as an Employee determined
pursuant to the books and records of the Employer (e ~ independent contractors or
leased employees within the meaning 'of Code § 4~14~n1 even if such individuals_ are
"reclassified as Employees b~ any governmental .a~encX (other than the Employer) or
iudicial decisionl. are not Employees for uurposes of ~he.Plan, and thus, are not eligible
o participate. in the Pl
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Section 4,
That Section 2.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
2.Q1 Eligibility. -Each Employee (other than an Excluded Employee) becomes
a Participant in the Plan on the first day of the month (if :employed . on that date)
immediately following the date 6 montlxs a$er his Employment Commencement Date.
"Employment Commencement Date" means: ~ the date on which the Employee first
performs ~an Hour of Service for the.EmFioyer. .
(Al Excluded. Employee ,
~(:1) An Employee is an Excluded Employee if lus customary weekly
emplovmenY ,with the Employer is less than ~29 hours An Employee is an
Excluded Employee if he is actively participating, (and "benefiting" within the
meaning of Treas. Reg_§ 1.410 L3) in another qualified plan maintained by the
Employer other than the Money Purchase Pension Plan and Trust for Employees
of the City of Winter SprinQS Florida (hereinafter referred to as the "Money
Purchase Plan").
(2) If a Participant has not incurred a Separation fium Service but becomes an
Excluded Employee then during the period such a Participant is an Excluded
Employee, the Participant will not accrue a benefit under the Plan attributable to
any period during which he is an Excluded Employee However during such
period of exclusion: the Participant, without regard to employment classification.
continues to receive credit for vesting under Article VIII for each included Year
of Service.
participate in. the Plan immediately if he has satisfied the eli ig bili conditions ~of
Section 2.01 and would have been a Participant had he not been an Excluded
Employee durine_ his period of Service Furthermore the Plan takes into account
all of the Participant's included Years of Service with the Employer as an
Excluded Employee for purposes of vesting credit under Article VIII
LB) , Employees with Non-Contributing Service Any Employee who completed Years
of Service prior to adoption of Resolution No 2003-44 but did not make contributions to
this Trust Fund or to the.Money Purchase Plan shall be credited with Years of Accrual
Service upon payment of the Required Participant Contributions due under this Plan and
the .required ~artlclpant contributions due under the Money Purchase Plan for such
service.
Section 5.
That Section 3.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.01 Amount.
~_
. The Employer intends to make such contributions as are
necessary to fund the Plan on a sound actuarial basis in accordance with applicable law.
~_The Employer contributes to this Plan on the condition its contribution is not due
to a mistake of feet. The Trustee; upon written request from the Employer, must return to
the Employer the amount of the Employer's contribution made by the Employer by
mistake of fact. The Trustee will not return any portion of the Employer's contribution
under the provisions of this pazagraph more than one yeaz after the Employer made the
contribution by mistake of fact. Furthermore, the Trustee will not increase the amount of
the employer contribution returnable under this Section 3.01 for any earnings attributable
to the contribution, but the Trustee will decrease the Employer contribution returnable for
any losses attributable to it.
Section 6. `
That Section ~.OS of the Defined .Benefit. Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
3.05 ~ Limitation on Annual Benefit. A Participant's Annual Benefit payable at
any time within a Limitation Year may not exceed the limitations of this Section 3.05,
even if the benefit. formula under the Plan would produce a greater Annual Benefit.
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(B) Commencement prior to age 62. If a Participant's Annual Benefit commences
prior to his attaining age 62, the Retirement Committee will adjust the $90,000 (or the
larger adjusted dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent
of an Annual Benefit equal to such. dollar limitation commencing at age 62. The
Actuarial Equivalent under the immediately preceding sentence may pot be less than
$75,000 in the event a Participant`s:Apnual.Benefit commences at or alter age S5. In the
event a Participant's Annual Benefit commences prior tQ age 55, the Actuarial Equivalent
will. equal the. greater .of (1) the actuarial Fquivalept of a $75,QOQ Annual. Benefit
eomuiencing at age ~5 or (2) the. Actuarial .Equivalent of a $90,000 (or larger adjusted
dollar atnoupt) Annual Benefit commencing at age 62. To determine the Actuarial
Equivalent under this paragraph, the Retirement Committee will use an interest rate
assumption equal to the greater of 5% per annum or the rate specified in Section 1.12 and
the Applicable Mortality Table.
(C) Commencement after age 65. If a Participant's Annual Benefit commences after
his attaining age 65, the Retirement Committee will adjust the $90,000 (or larger adjusted
dollar amount) limitation of this Section 3.05 to the Actuarial Equivalent of an Annual
Benefit ..equal to .such dollar limitation commencing at age 65. To determine the
Actuarial Equivalent under this paragraph; the Retiremenfi Committee will use an interest
rate assumption equal to the lesser of 5% per. annum or the rate specified in Section 1.12
and the Applicable Mortality Table.
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(E) Adjustment for Years of Service/Years of Participation Less Than 10. The
90 000 ~or such 1 ~ er adjusted dol ar ount_ iimitati n
described in this. Section 3.05 applies to a Participant.. who has completed: at least 10
Yeazs of
Participation in the Plan,-fer~fleses-ef
~+~1~-is-1~..If a Participant has less than 10 Years of Participation in the Plan at the time
his benefits commence, the Retirement Committee will multiply~his dollar limitation by a
fraction, the numerator of which is the number .of Years of Participation (including
fractional years) in .the Plan and the denominator of Vvhich. is 10. The reductions
described_in this pazagraph will not reduce a Participant's maacimum ~edollaz
limitation to less than one-tenth of the maximum ollaz limitation
determined without regard to the reductions.
(F) Alternate Forms of .Payment. If the Trustee pays the Participant's benefit in a
form other than an Annual Benefit, the benefit paid may not exceed the Actuarial
Equivalent. of the maximum Annual Benefit payable as a straight .life annuity. To
determine the Actuarial Equivalent antler .this paragraph, the Retirement Committee will
use an interest rate assumption equal to~the greater of 5% per annum or the rate specified
in Section 1.12 and the Applicable Mortali Table.
Section 7.
That Section 3.06 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
.3.06 Definitions -Article III. The definitions in this Section 3.06 apply to the
limitation provisions of Part 2 of Article III. For purposes of Article III, the following
terms mean:
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(A) General Definitions.
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(4) Annual Addition. Annual Additions aze the following amounts allocated
on behalf of a Participant for a Limitation Year, under a defined contribution plan
maintained by the Employer: (i) all Employer contributions; (ii) all forfeitures;
and {iii) all Employee contributions. Except to the extent provided in Treasury
regulations, Annual Additions include excess contributions described in Code
§401(k), excess aggregate contributions described in Code §401{m), irrespective
of whether the plan distributes or forfeits such excess: amounts. Excess deferrals
under Code §402(g) are not Annual Additions unless distributed after the
correction period described in Code §402(g). Amounts allocated after March 31,
1984; to an individual medical account (as defined in Code §415(1x2)) included
as part of a defined benefit- plan. maintained by the Employer also are Annual
.Additions. Furthermore, Annual Additions include .contributions paid or accrued
after December 31, 1985, for taxable years ending after December 31, 1985,
attributable to .post-retirement medical benefits allocated to the sepazate account
of a key employee' (as defined in Code §41~9A(dx3)) under a welfare~benefit fund
(Code §419(e)) maintained by the Employer. For a Limitation Year, the Annual
Additions allocated on behalf of any Participant, to all defined contribution plans
maintained by the Employer, may not exceed the Maximum Permissible Amount.
The "Maximum Permissible Amount" is the lesser of (1) $30,000 (or, if greater,
the ~ $30,000 amount as a~. justed
under Code §415(b} f }}(,A~~, or (ITJ 25% of the Participant's Compensation for
the Limitation Year. If there is a short Limitation Yeaz because of a change in
Limitation Year; the Retirement Committee will multiply the $30,000 limitation
(or lazgei limitation} on Annual Additions by the following fraction:
Number of months in the short Limitation Yeaz
12:
(5) ~-af~e~~e ..,~.:,.~. ,,,, mow. , ~ ...
Applicable Mortality Table. The Applicable Mortalit~Table
means. the mortality table specified in Code ~ 417(e)(3) and set forth in Revenue
Ruling; 95-6 (or any applicable subsequent pronouncement issued by Internal
Revenue Service.
Section 8.
That Section 3.07 of the Defined Benefit Plan and Trust for Employees. of the City of
Winter Springs be .eliminated.
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Section 9.
That Section 4.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.01 •
e ~ . Required Participant Contributions The Plan did not permit nor require
Participant Contriburions prior to October 1 2000 ~ Effective October 1 2000 each
Participant is required to contribute 3% of Compensation to the Plan which contribution
shall be considered the Required Participant Contribution The r wired participant
contribution shall be deducted from each Participant's Compensation whenever such
Compensation is paid and remitted to the Trustee Required participant contributions
shall be considered an Emplo er "pick-up" contribution and shall be designated as
employer contributions pursuant to Section 414~h) of the Internal Revenue Code
continent upon the contributions beingexcluded from the Participant's gross income for
federal income tax purposes: For all other purposes of this Plan. such ~contnbutions shall
be considered Participant contributions
Section 10.
That Section 4.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
4.02 •
Direct Transfers of Eligible Rollover Distributions.
(A) General. This section applies to distributions made on or after October 1 2002
Notwithstanding andprovision of the plan to the contrary that would otherwise limit a
distributee's election under this section a distributee may elect at the time and in the
manner prescribed by the board to have andportion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distribute in a direct rollover
~B) Definitions.
(1) "Eli~?ible rollover distribution" is any distribution of all or any portion of
the balance to the credit of the distributee except that an eligible rollover
distribution does not include: any distribution that is one of a series of
substantiallv~ual periodic pay~ts (not less frequently than annually made for
the life (or life expectancy) of the distribute or the joint lives (or joint life
expectancies) of the distribute and the distributee's designated Beneficiary or for
a specified period of ten years or more• any distribution to the extent such
distribution ~ is required .under section ~401(a}~9) of the Code• and the portion of
any .distribution that is not includible in grross income Any portion of any
distribution which would be includible in gross income will be an eligrible rollover
distribution if the .distribution is made to an individual retirement account
described in section 408(a) to an individual retirement annuity described in
section 408 ) or to a qualified defined contribution plan described in section
401 (a) or 403(a) that agrees to separately account for amounts so transferred
including separately accounting. for the portion of such distribution which is not
so includible.
i2) "Eligible retirement plan" is an individual retirement account described in
section 408(x) of the Code an individual retirement annuity described in section
408(b) of.the Code, an annuit~plan•described in section 403(a) of the Code an
eligible deferred compensation ~ plan described in section 457(b) of the Code
which is maintained by an eligible employer described in section 457(e)(1Z(A) of
the Code and which aerees to separately account for~amounts transferred into such
plan~from this plan, an annuity contract described in section 403(b) of the Code
or a Qualified trust described in section 401(a) of the Code that accepts the
distributee's eligible rollover distribution . This definition shall also appl~the
case of an.eliQible rollo~+er distribution to the surviving_spouse .
~3) "Distributes" includes . an employee or former employee In addition. the
employee's or former employee's surviving. spouse is a distributes with regard to
the interest of the spouse.
X41 "Direct rollover" is a pa rienf by the plan to the el~ible retirement plan
specified by the distributes:
(C) Rollovers or Transfers into the Fund On or after the effective date of Resolution
No. 2003-44, the fund will accept .member rollover cash contributions and/or direct cash
rollovers of distributions for the purchase of permissive service credit under the Plan as
follows:
(1) Direct .Rollovers or Member Rollover Contributions from Other Plans
The Plan will accept either a direct rollover of an eligible rollover distnbution or a
member contribution of an eligible rollover distribution from a qualified plan
described in section 403(a) of the Code from an annuity contract described in
section 403(b) of the Code or from an elip~ble plan under section 457(b~ of the
Code, .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
2) Member Rollover Contributions .from. 401(a) Plans and IRAs. The Plan
will accept a member rollover contribution of the portion of a distribution from
Qualified plan described in section 401(a) of the Code or from an individual
retirement account or annuity described in section 408(a or 408(b) of the Code
that is eligible to be rolled over and would otherwise be includible in the
member's gross income.
Section 11.
That a new Section 4.03 of the Defined Benefit Plan and Trust for Employees of the City
of Winter Springs be created to read as follows:
4.03 Participant Account. Balance Transferred from Money Purchase Pension
Plan. A Participant's account balance transferred from the Money Purchase Pension Plan
and Trust for Employees of the~City bf Winter Springs pursuant to Resolution No 2003
44, shall become an integr~ part of this' Trust Fund• provided that such account balance
plus interest at a rate equal toy the interest rate'on 30-year Treasury securities as published
in the Internal Revenue Bulletin determined as of the calendar month preceding the first
day of the Plan year and effective October i 2003 a rate equal to the U S Treasury
Department long-term avers a rate published on 'the last ~ day of the calendar month
p~'ecedina ~ the first. day of the Plan year or such other rate that may be approved by the
iJ.S.. Treasury .Department to replace the 30-year Treasury bond rate as a benchmark for
calculating lump sum-payouts from defined benefit plans shall be part of the Accrued
Benefit payable to a Participant upon normal retirement, except as reduced in accordance
with Section 8.05.
Section 12.
That Section 5.02 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
5.02 Amount of Normal Retirement Pension/Accrued Benefit. The Annual
benefit limitations of Article III apply . to the determination of a Participant's normal
retirement pension and Accrued Benefit ir4 the manner prescribed in Section 3.05(I-~.
(A) Normal Retirement Pension.
(1) Benefit Formula. A Participant's normal retirement pension equals 2% of
the. Participant's Average Compensation multiplied by his Years of Accrual
Service for service prior to October 1, 2000 and 3% of the Participant's Average
Compensation multiplied by his Years of Accrual Service for service on and after
October 1, 2000. Such pension will be adjusted for any distribution in accordance
with Section 8.05. The maximum number of Years of Accrual Service taken into.
account in the. normal retirement pension is 30s counting~forward from the slate of
initial participation to include anYpurchased past service.
(2) Average .Compensation. Average Compensation is the average of the
Participant's Plan Compensation for. the Averaging Period in the Participant's
Compensation History which results in the highest Average Compensation. A
Participant's Compensation History is the Participant's entixe period . of
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employment with the Employer. The Averaging Period is 3 consecutive
Compensation periods (or the entire period of employment, if shorter). A
Compensation period is the 12-month period ending on the last day of the Plan
Year.
(B) Accrued Benefit. Subject to the Annual Benefit limitations of Article III, a
Participant's Accrued Benefit is the normal retirement pension accrued by the Participant
under the accrual formula provided in this paragraph (B).
(1) Method of Accrual. As of any date, a Participant's Accrued Benefit is his
normal retirement pension calculated as of the determination date, based on the
Years of Accnial Service credited as of such date.
(2) Year ofAccrual Service. Years of Accrual Service are Years of Service as
determined.urider Section. 8:06, inciuding Years of Service completed prior to his
participation in the Plan.. Any Employee who .completed Years of Service prior to
the adoption ~. of Resolution No. 2003-44 ~ but did. not make contributions to this
Trust Fund or to the Monev Purchase Pension Plan shall be credited with Years of
Accrual Service upon payment of the Required Participant Contributions due
under this Plan and the required participant contributions due under the Monev
Purchase Pension Plam.for such service. Years of Accrual Service also include
"Years of Qualified Service". Years of Qualified Service means any or all years
of service performed by the Participant as an employee of the Government of the
United States, any State . or political subdivision thereof or any agency or
instrumentality of any of the foregoing, other than the Employer, but only if all of
the following.conditions are satisfied:
(a) the Participant makes a voluntary contribution to the Plan, .in an amount
necessary to fund the benefit attributable to such Years of Qualified Service (as
determined by the actuary for the Plan. utilizing, the actuarial definitions used for
plan fixndingpurposes) and which does not exceed the amount necessary to fund
the benefit attributable to such Years of Qualified Service;
fb) the Participant makes the voluntary contribution described in paragraph
~aZ above, in one lump sum payment to the Plan prior to .receiving_credit for such
Years of Qualified .Service;
(c) the Participant's Accrued Benefit is either 100% Nonforfeitable at the time
he makes the .voluntary contribution described .in paragrap~a) above or will
become 100% Nanforfeitable immediately after receiving credit for such Years of
Qualified Service;.and
(d~ the crediting. of such :Years of Qualified Service must not cause .the
Participant to receive a retirement benefit for the same Years of Qualified Service
under more than one retirement plan.
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Section.l3.
That Section 6.01 of the Defined Benefit Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
6.01 .Eligibility for Eazly Retirement Pension. A Participant who has received
credit for at least 10 Yeazs of -Service_ (as defined in Section 8 06~and has
attained age.5.5 may elect an early retirement pension. A Participant who separates from
service after satisfying the service requirement but not the age requirement may elect to
receive an early retirement pension upon satisfying the age requirement. In addition, a
Participant who has completed 25 Years of #se~-Servicae_(as defined in Section 8.0
may elect an eazly retirement pension. A Participant's early. retirement pension is his
Nonforfeitable Accrued Benefit payable at Normal Retirement Date without actuarial
reduction for eazly commencement but only if benefits commence on or after the
Participant attains age 55. If an eligible Participant elects to commence his early
retirement pension prior to attaining age 55, such Participant's early retirement pension is
the Actuarial Equivalent of his Nonforfeitable Accrued Benefit payable at age 55.
Section 14.
That Section 6.02 of the Defined Benefit Plan and Trust for.Employees of the City of
Winter Springs be amended as follows:
6.02 Payment of Early Retirement Pension.
(aA~ If the. present value of the Participant's early retirement pension does not. exceed
$3;AA83,500, the Trustee will automatically pay the early retirement pension.. in lump
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sum, as soon as administratively practicable after the Participant's Separation from
Service or, if later, after the Participant satisfies the eligibility requirements for an early
retirement pension.
(b)3 If the present value of the Participant's early retirement pension exceeds
$3;9893,500, the Trustee will pay the early retirement pension in the form and as of the
date elected by the Participant. A participant may elect to commence his early retirement
pension as of the first day of any month during the period he is eligible for the early
retirement pension and after he has separated from Service. If the Participant fails to
designate a distribution date, then the Trustee will commence payment of the early
retirement pension in accordance with Article X.
Section 15.
That Section 8:03 of the Defined Benefit:Plan and Trust for Employees of the City of
Winter Springs be amended as follows:
8,03. Payment of Deferred Vested Pension.
(sA~ I,f the present value of the Participant's deferred vested pension does not exceed
$3;9893,500, the Trustee will automatically pay the deferred vested pension in lump sum,
as soon as administratively practicable: following the Participant's Separation from
Service. In no event may the distribution occur later than the 60th day following the
close of the Plan Year in which the Participant attains Normal Retirement Age.
(bB) If the present value of the Participant's deferred vested pension exceeds
$3;9883,500, the Trustee will pay the deferred vested pension in the form elected by the
Participant. ~ A Participant may elect to commence his deferred vested pension after the
Participant's Normal Retirement Date..If the Participant fails to elect a distribution date,
then the Trustee will commence payment of the deferred vested pension in accordance
with Article X.
Section 16.
That a new. Section 8.05(B) of the Defined Benefit Plan and Trust for Employees of the
City of Winter Springs be created to read as follows:
8.03 Vesting Schedule.
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(B) 100% Vesting of Reguued Participant Contributions Each Participant is
immediately 100% vested with respect to his Required Participant Contributions A
Participant is. entitled to receive a return of his Required Participant Contributions
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contributed while a participant under the money purchase plan prior to October 1 2000
uuon termination of employment together with simple interest at a rate equal to the
interest rate on 30-yeaz Treasury securities as published in the Internal Revenue Bulletin
determined as of the calendaz month preceding the first day ~of the Plan year and
effective October 1 2003 a rate equal to the U S Treasury Department long-tetras
average rate published on the last day of the calendar month preceding_the first day of the
Plan veaz. or such other rate that may be approved by the U S Treasur~Department to
replace the 30-year Treasury bond rate.as a benchmark for calculating lump sum payouts
from defined benefit plans, in lieu of any other benefit under the Plan The amount
received as ~a distribution by the Participant shall be used to~ reduce the accrued benefit if
auv:~ at-his normal retirement date. Required Participant contributions contributed on and
after October 1. 2000 are 100% vested ~ and shall be included in the deferred vested
benefit payable to the Participant upon normal retirement date.
Section 17.
That subsections (B), (C), and .(D) of Section 8.05 of the .Defined Benefit Plan and Trust
for Employees of the City of Winter Springs be redesignated as subsections (C), (D), and (E)
respectively, and that the first sentence of redesignated Section 8.05(C) is arnended as follows:
8.05(130 Vesting Schedule. Subject to Section 8.05(A) and Section 8.OSfB2 a
Participant's nonforfeitable percentage of his Accrued Benefit equals the percentage in
the following schedule:
Section 18.
That Section 8.08 of the' Defined Benefit Plau and Trust for Employees of the City of
Winter Springs be amended as follows:
8.08 Included Years of Service -Vesting. For purposes of determining "Years
of Service" under Section 8.06, the Plan takes into account all Years of Qualified Service
credited to a Participant pursuant to Section 5.028) and all Years of Service an
Employee completes with the Employer except:
(aA~ Any Year of Service completed before a Break in Service, unless the Employee
completes a Yeaz of Service after the Break in Service. This Break in Service rule will
not operate'to recredit any Year of Service disregarded under clause (b~.
(b~ Any Yeaz of Service completed before a Break in Service if the number of the
Participaut's consecutive Breaks in Service equals of exceeds the greater of 5 or the
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aggregate number of the Years of Service prior to the Break. This Break in Service rule
applies. only if the Participant is 0% vested in his Accrued Benefit derived from Employer
contributions. at the time he has a Break in Service. Furthermore, the aggregate number
of Years of Service before a Break in Service does not include any Years of Service not
required to be taken into. account under this exception by reason of any prior Break in
Service. If the Retirement Committee Retirement.Committee disregards the Participant's
Years of Service under this exception, the Plan forfeits his pre-Break in Service Accrued
Benefit.
(eC~ Any Year of Service before the Plan Year in which the Participant attained the
age of 18.
Section'19.
That subsections (B) and (C) of Section 9.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
9.01 Preretirement Survivor Annuity -Eligibility. If a married Participant dies
prior to his annuity starting. date, the Retirement Committee will direct the 'Trustee to
distribute to the Participant's surviving .spouse a preretirement survivor annuity, unless
the Participant has a valid waiver election (as described in Section 9.02) in effect, or
unless the Participant and his spouse were not married throughout the one yeaz period
ending orr the date of his death..
(B) Present Value Not Greater Than $~8A83,500. If the present value of the
preretirement survivor annuity is not greater than $3;A9A3,500, the Trustee will
automatically make the distribution in a lump sum, in lieu of the preretirement survivor
annuity. The distribution must occur on or before the annuity starting date.
(C) Surviving Spouse Elections. If the present value of the preretirement survivor
annuity exceeds $~;9883,SOO, .the Participant's surviving spouse may elect to have the
Trustee commence payment of the preretirement survivor annuity as of the first day of
any month following the Participant's death, but not later than the applicable mandatory
distribution period described in Article X. A surviving spouse also may elect any form of
payment described in Article X, in lieu of the preretirement survivor annuity (other than a
joint and survivor annuity). In the absence of an election by the surviving spouse, the
Retirement Committee will direct the Trustee to distribute the preretirement survivor
annuity as soon .as administratively practicable following the close of the Plan Year in
which.the latest of the: following events occurs: (1) the Participant's death;, (2) the date the
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Retirement. Committee receives notification of or otherwise confirms the Participant's
death; or (3) the date the Participant would have attained Normal Retirement Age.
Section 20.
That subsection (A) of Section 10.01 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.01 Form' of Benefit. Subject to the requirements of Section 10.02, the
Retirement Committee will direct the Trustee to pay a Participant his Nonforfeitable
Accrued Benefit in a form permitted under Section 10.05. Annuity payments will
continue until the last scheduled payment coincident with or immediately preceding the
date of the Participant's death or, if applicable, the date of his survivor's death.
(A) Consent. A Participant must consent, in writing, to any distribution described in
this Article X if the present value of the Participant's Nonforfeitable Accrued Benefit
exceeds $3;9AA3,500, and the distribution commences prior to the Participant's attaining
Normal ~ Retirement Age. Furthermore, the Participant's spouse also must consent, in
writing, to any distribution for which Section 10.02 requires the spouse's consent. For
purposes of the. consent requirements under this Article X, if the present value of the
Participant's Nonforfeitable Accrued Benefit, at the time of any distribution, exceeds
$3,-98A3.500, the Retirement Committee will treat that present value as exceeding
$3;9AA3,500 for purposes of all subsequent Plan distributions to the Participant.
Section 2'1.
That subsection (B) of Section 10.02 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
14.02 Qualified Joint and Survivor Annuity.
(B) Present Value Not Greater Than $~~8A3.500. If the present value of the
Participant's Accrued .Benefit • is.. not greater than $3;9AA3,500, the Trustee will
automatically.pay the Participant's pension in a lump sum, in lieu of a qualified joint and
survivor annuity. The distribution must occur on or before the annuity starting date. The
consent requirements of this Article X.do not apply to a Participant. subject to this
paragraph: .
Section 22.
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That subsections (B) and (E) of Section 10.03 of the Defined Benefit Plan and Trust for
Employees of the City of Winter Springs be amended as follows:
10.03 Commencement of Benefits. The Retirement Committee must direct the
Trustee to commence distribution of benefits in accordance with this Section 10.03,
subject to the mandatory distn'bution requirements of Section 10.06.
**********
(B) Distribution to Participant Who Separates from Service After Normal Retirement
Date. The Retirement Committee will direct the Trustee to commence distribution to the
Participant:
(1) Present Value of Normal Retirement Pension Not Exceeding $3;9883,500.
In lump sum, as soon as administratively practicable following the Participant's
separation from Service, but not later than the 60th day following the close of the
Plan Yeaz in which that separation from Service occurs.
(2) Present Value of Normal Retirement Pension Exceeds $§;8883,500. In the
form and at the time elected by the Participant, as permitted under this Article X.
The Participant may elect to commence distribution as soon as administratively
practicable following separation from Service or as of the first day of any
subsequent month.
**********
(E) Death of the Participant. If the Participant had commenced distribution prior to
his death, the Retirement Committee will direct the Trustee to make distribution to the
Participant's Beneficiary in accordance with the distribution method in effect at the time
of death. If the deceased Participant had not commenced distribution, the Retirement
Committee will direct the Trustee to distribute the Participant's death benefit in
accordance with pazagraph (1) or paragraph (2), whichever applies, subject to the
requirements of Article IX.
(1) Present Value of Death Benefit Does Not Exceed $§;8883,500. In lump
sum, as soon as administratively practicable following the date on which the
Retirement Committee receives notification of or otherwise confirms the
Participant's death.
(2) Present Value of Death Benefit Exceeds $38883,500. In the form and at
the time elected by the Participant or, if applicable by the Beneficiary, as
permitted under this Article X. Unless otherwise elected by the Participant and to
the extent permitted. under Section 10.06, a Beneficiary may elect to commence
distribution of the Participant's death benefit as of the first day of any month
following the date the Retirement Committee receives notification of or otherwise
confirms the Participant's death. In addition to the other forms of distribution
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r -Y
available under this Article X, and to the extent permitted under Section 10.06, a
Beneficiary may elect to receive the Participant's death benefit in monthly,
quarterly or annual installments over a 5 year period, unless the Participant
elected otherwise. In the absence of an election, the Retirement Committee will
direct the Trustee to distribute the Participant's death benefit in five annual
installment payments commencing as soon as administratively practicable
following the end of the Plan Year that the Retirement Committee receives
notification of or otherwise confirms the Participant's death.
Section 22.
That the first paragraph of Section 10.07 of the Defined Benefit Flan and Trust for
Employees of the City .of Winter Springs be amended as follows:
10.07 Distributions Under Domestic Relations Orders. Nothing contained in this
Plan will prevent the Trustee, in accordance with the direction of the Retirement
Committee, from complying with the provisions of a qualified domestic relations order
~as defined in Code §414(p)). The Retirement Committee may adopt any written
procedures relating to a qualified domestic relations order which the Retirement
Committee deems necessary for proper administration of the Plan. Thine Plan
spe~e~i~e~rdoes not permits distribution to an alternate payee under a qualified domestic
relations order , ' til the Participant has-attaineds his
earliest retirement age (as defined under Code §414(p)) under the Plan.
' .Nothing in this Section 10.07 permits
a Participant a right to receive distribution at a time otherwise not permitted under the
Plan nor does it permit the alternate. payee to receive a form of payment not permitted
under the Plan.
Section 23.
That the first paragraph of Section i 1.05 of the Defined Benefit Plan and Trust for
Employees of the City of Winter. Springs be amended as follows:
11.05 Merger/Direct Transfers. The Trustee will not consent to, or be a party to,
any merger or consolidation with another plan, or to a transfer of assets or liabilities to
another plan, unless immediately after the merger, consolidation or transfer, the surviving
Plan provides each Participant a benefit equal to or greater than the benefit each
Participant would have received had the Plan terminated immediately before the merger
or consolidation or transfer. The Trustee possesses the specific authority to enter into
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merger agreements or direct transfer of assets agreements with the trustees of other
retirement plans described in Code §401(a), and to accept the direct transfer of plan
assets, or to transfer plan assets, as a party to any such agreement. If the Trustee accepts
a transfer of assets from other retirement plans described in Code §401(a)1other than the
Money Purchase Plan) on behalf of a Participant, the Trustee shall utilize such assets to
provide additional Accrued Benefits for such Participant. The Trustee~ossesses the
~ecific authority to accept a transfer of assets of all or an~portion of a Particivant's
account in the Money Purchase Plan.
Section 24.
That this resolution shall supersede any and all conflicting provisions of any previously
adopted resolutions.
Section 25.
That should any section or provision of this resolution or any portion-. thereof, any
paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such
decision shall not afFect the validity of the remainder hereof as a whole or part thereof other than
the part declared: to be. invalid.
Section 26.
'That this resolution shall take effect as of October 1, 2000.
PASSED and ADOPTED tlus 10th day of November , 20Q~:
.~_
MA " • ~ ~ .
ATTEST: .
CITY C ;.
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