HB190ENROLLED
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HB190
XCPSZZE-3
By Representative Carns (N & P)
RFD: Jefferson County Legislation
First Read: 20-Feb-24
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First Read: 20-Feb-24
Enrolled, An Act,
Relating to the General Retirement System for Employees
of Jefferson County; to amend Sections 45-37-123.01,
45-37-123.20, 45-37-123.21, 45-37-123.22, 45-37-123.23,
45-37-123.24, 45-37-123.25, 45-37-123.26, 45-37-123.27,
45-37-123.28, 45-37-123.29, 45-37-123.50, 45-37-123.54,
45-37-123.80, 45-37-123.82, 45-37-123.83, 45-37-123.84,
45-37-123.100, 45-37-123.101, 45-37-123.102, 45-37-123.103,
45-37-123.104, 45-37-123.106, 45-37-123.108, 45-37-123.132,
45-37-123.150, 45-37-123.191, 45-37-123.194, and
45-37-123.195, Code of Alabama 1975; to clarify who is a
designated beneficiary; to identify the Personnel Board of
Jefferson County as the civil service system of Jefferson
County; to define missing participants and missing
beneficiaries as a participant or beneficiary whose
whereabouts are unknown to the system or who is nonresponsive;
to clarify categories of membership and benefits; to clarify
that all members who are not vested are nonvested; to clarify
that a member's benefit becomes partially vested and
nonforfeitable upon 10 years of paid service and fully vested
and nonforfeitable upon 15 years of paid service; to
accurately reflect the method by which the county remits
employer and employee contributions to the system; to
authorize the pension board to pay any sums reasonably
necessary to defray administrative expenses of the plan before
remitting employer and employee contributions to the trust
fund; to establish additional qualifications and procedures
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fund; to establish additional qualifications and procedures
for individuals elected or appointed to serve on the pension
board; to provide for electronic forms and notice; to clarify
that the election of pension board members number four and
five are supervised by members volunteering to serve as the
election board; to clarify that only a beneficiary designated
by the member shall constitute a beneficiary under the plan;
to authorize the pension board to adopt rules and regulations
for the administration of any benefit provided by the plan
subject to applicable law; to authorize the pension board to
suspend and reinstate benefits to missing participants and
missing beneficiaries; to provide the pension board with the
authority to authorize the plan to defend and indemnify the
pension board and each of its individual members, employees of
the system, and the system as a legal entity separate and
distinct from the plan from claims, actions, or judgments
connected with or arising from decisions, acts, or omissions
undertaken within the scope of its or their official capacity
in furtherance of the purposes for which the system is
established to the extent allowed by applicable law and
Section 401(a), Internal Revenue Code; to authorize the
pension board to interplead funds into a court of competent
jurisdiction when the pension board cannot determine the owner
of those funds or for any other reason allowed under
applicable law; to clarify that records and data of the system
are not public records; to clarify that payment of benefits
and administrative expenses from the trust fund is subject to
the prohibition against diversion of funds for any purpose
other than the exclusive benefit of members; to authorize the
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other than the exclusive benefit of members; to authorize the
pension board to remit certain contributions to a system
depository account to be treated as general assets of the
system as a legal entity separate and distinct from the plan
and its trust; to authorize the payment of benefits and
expenses of administration from the general assets of the
system as a legal entity separate and distinct from the plan
and its trust; to clarify that three affirmative votes are
required for the pension board to act; to provide that in the
event a mandatory member subsequently occupies a position not
subject to the Personnel Board of Jefferson County, the member
shall remain a mandatory and contributing member of the
system; to clarify that an employee eligible for optional
membership must exercise the option in writing; to remove
provisions prohibiting an active member from remaining a
participant in the plan after the member elects to participate
in another plan; to remove provisions related to the
conversion of unpaid membership time to paid membership time;
to remove certain provisions relating to the forfeiture of
certain pension benefits and employee contributions; to
clarify when a reemployed member begins to accrue benefits; to
clarify that a member may terminate employee contributions
upon reaching 30 years of paid service regardless of whether
the member has accumulated sufficient service to entitle the
member to the maximum benefit available under the plan; to
provide that the hourly equivalent of one-half month of work
is sufficient to entitle a member to one month of service; to
clarify that the payment of benefits does not commence until
the member or the member's designated beneficiary executes all
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the member or the member's designated beneficiary executes all
necessary forms required by the pension board; to provide that
disability benefits are only authorized for permanent
disabilities arising on or before separation from employment
with the county; to clarify certain conditions for eligibility
to receive a disability benefit; to clarify a disabled
member's membership status upon reemployment by Jefferson
County; to provide that procedures for proving a common law
marriage are applicable only to a marriage entered into before
January 1, 2017; to remove certain provisions terminating a
member's right to a benefit; to remove certain provisions
disqualifying a member from receiving benefits; to provide
that vested pension benefits are nonforfeitable; to add
Section 45-37-123.31 to the Code of Alabama 1975, to clarify
the scope of immunity afforded to the system, the pension
board, and the individual members of the pension board, and
the employees of the system, when acting in its or their
official capacity; to add Section 45-37-123.110 to the Code of
Alabama 1975, to allow the pension board to adopt procedures
for the forfeiture and restoration of benefits and employee
contributions for missing participants and missing
beneficiaries whose whereabouts are unknown to the system or
who are nonresponsive; to provide that, during any period of
forfeiture, a missing participant or missing beneficiary shall
not be treated as a member under the plan; to make technical
corrections; to repeal Sections 45-37-123.52 and 45-37-123.53,
providing for termination of eligibility and the conversion of
unpaid membership time to paid membership time; and to provide
for an effective date.
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for an effective date.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 45-37-123.01, 45-37-123.20,
45-37-123.21, 45-37-123.22, 45-37-123.23, 45-37-123.24,
45-37-123.25, 45-37-123.26, 45-37-123.27, 45-37-123.28,
45-37-123.29, 45-37-123.50, 45-37-123.54, 45-37-123.80,
45-37-123.82, 45-37-123.83, 45-37-123.84, 45-37-123.100,
45-37-123.101, 45-37-123.102, 45-37-123.103, 45-37-123.104,
45-37-123.106, 45-37-123.108, 45-37-123.132, 45-37-123.150,
45-37-123.191, 45-37-123.194, and 45-37-123.195 of the Code of
Alabama 1975, are amended to read as follows:
"§45-37-123.01
For the purposes of this part, the following terms
shall have the following meanings:
(1) ACT. The act adding this part, to be called the
General Retirement System for Employees of Jefferson County
Act.
(2) ACTIVE MEMBER. An individual who currently is
employed by the county or other entities set forth in
subdivision (20) and is making employee contributions to the
system pursuant to Section 45-37-123.82 .
(3) ACTUARIAL EQUIVALENT. Effective July 30, 1984, or
such other dates as set forth in Exhibit A to the plan
document, which is maintained in the office of the pension
board, a form of benefit differing in time, period, or manner
of payment from a specific benefit provided under the plan but
having the same value when computed using the mortality
tables, the interest rate, and any other assumptions last
adopted by the pension board, which assumptions shall clearly
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adopted by the pension board, which assumptions shall clearly
preclude any discretion in the determination of the amount of
a member's benefit.
(4) ACTUARIAL GAIN. As defined in Section
45-37-123.106(f)(1).
(5) ANNUITY STARTING DATE. As used in Subpart 6 and in
Section 45-37-123.106, means, with respect to any member, the
first day of the first period for which an amount is paid as
an annuity, or, in the case of a benefit not payable in the
form of an annuity, the first day on which all events have
occurred which entitles the member to such benefit.
(6) BASIC AVERAGE SALARY. Generally means, effective as
of February 1, 2010, the monthly compensation of a member
averaged over the period of 36 consecutive months of paid
membership time during which such member's average monthly
compensation was higher than any other period of 36
consecutive months of paid membership time. For example, if a
member terminated employment on June 20, 2010, and his or her
highest consecutive 36 month 36-month period ends on the
member's date of termination of employment, then the measuring
period for determining basic average salary would be from June
21, 2007, through June 20, 2010. The following rules shall
apply in calculating basic average salary:
a. Daily Compensation Calculation. Subject to the
additional rules stated in this subdivision, the compensation
earned in each year, or portion of a year, during the 36-month
period shall be determined on a daily basis. The total of the
compensation earned in each applicable year, or portion
thereof, shall be added together and then divided by 36 to
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thereof, shall be added together and then divided by 36 to
arrive at the member's basic average salary. If the foregoing
process is not workable in some situations, then the pension
board shall approve a different method which is reasonable
given the terms of the act and the individual circumstances.
b. Use of Unpaid Membership Time. The compensation paid
to a member during unpaid membership time shall only be
considered in determining the member's basic average salary
for periods of employment prior to August 16, 1996.
c. Tacking of Nonconsecutive Paid Membership Time.
Separate periods of paid membership time may be tacked and
considered as consecutive if the member does not have any paid
membership time between the periods so tacked. For example, if
the member did not have any paid membership time between two
periods of paid membership time due to a leave of absence, the
leave of absence would be ignored in calculating basic average
salary.
d. Post-termination .Compensation. Compensation paid
subsequent to termination of participation in the system
pursuant to Section 45-37-123.52, due to ineligibility, shall
not be recognized in computing basic average salary. However,
notwithstanding Notwithstanding any provisions of this plan to
the contrary, a member's final paycheck from the county shall
be counted in computing a member's basic average salary, but
only to the extent that such paycheck constitutes
compensation, and the highest consecutive 36 month 36-month
period otherwise would end on the date of the member's
termination of employment.
(7) BENEFICIARY. The person individual, or entity,
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(7) BENEFICIARY. The person individual, or entity,
designated as provided in Section 45-37-123.103(d) to receive
the benefits which are payable under the plan upon or after
the death of a member.
(8) BENEFIT ENHANCEMENT. An across the board increase
to a previously awarded benefit to which a member is entitled.
(9) CIVIL SERVICE SYSTEM. The personnel system
administered and operated by the Jefferson County Personnel
Board.
(10)(9) COMMISSION. The Jefferson County Commission.
(11)(10) COMPENSATION.
a. With respect to any member means:
1. The regular salary or hourly wages paid to a member,
based on his or her pay grade, as established by the Jefferson
County Personnel Board of Jefferson County , or other
appropriate authority, for a calendar year ending with or
within the applicable plan year including any employee
contributions pursuant to Section 45-37-123.82(a);
2. Plus any accumulated vacation time paid by the
county;
3. Plus Worker's Compensation benefits, only as
described in subdivision (59) (65); and
4. Any differential wage payment, as defined in §
3401(h)(2), Internal Revenue Code, generally relating to
military pay.
b. Bonuses, overtime, longevity pay, paid accumulated
sick leave that is paid in the form of a lump sum, uniform
allowances, expense allowances, and any other nonregular forms
of compensation are excluded.
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of compensation are excluded.
c. Compliance with § 401(a)(17), Internal Revenue Code.
Because the transitional rule provided by Treasury Regulation
§ 1.401(a)(17)-1(d)(4) of the regulations issued under §
401(a)(17), Internal Revenue Code, does not apply to the plan,
compensation of each member taken into account in determining
benefit accruals in any plan year beginning after December 31,
2001, shall not exceed two hundred thousand dollars
($200,000), or such other amount provided in the Internal
Revenue Code. Such amount shall be adjusted for increases in
the cost of livingcost-of-living in accordance with §
401(a)(17)(B), Internal Revenue Code, except that the dollar
increase in effect on January 1 of any calendar year shall be
effective for the calendar years beginning with such calendar
year. For any short calendar year, the compensation limit
shall be an amount equal to the compensation limit for the
calendar year in which the calendar year begins multiplied by
the ratio obtained by dividing the number of full months in
the short calendar year by 12. For purposes of determining
benefit accruals in a plan year beginning after December 31,
2001, compensation for any prior calendar year shall be
limited to one hundred fifty thousand dollars ($150,000) for
any calendar year beginning in 1996, one hundred sixty
thousand dollars ($160,000) for any calendar year beginning in
1997, 1998, or 1999; and one hundred seventy thousand dollars
($170,000) for any calendar year beginning in 2000 or 2001.
(12)(11) COUNTY. Jefferson County, Alabama, and any
successor which shall maintain this plan. However, references
herein to employment by the county also shall include
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herein to employment by the county also shall include
employment by such other entities set forth in subdivision
(20) and by entities for which the county is acting as payroll
agent or wherein the county is being reimbursed by an entity
for the compensation of such entities' workers or wherein the
entity has appointing authority with respect to the workers.
Accordingly, such entities' workers shall be covered by the
plan to the extent allowed under the act and as determined by
the pension board in its administration of the plan.
(13)(12) DEFERRED RETIREMENT BENEFIT. A benefit payable
pursuant to the terms of Section 45-37-123.100(c).
(14)(13) DESIGNATED BENEFICIARY. As defined The
individual or entity designated as provided in Section
45-37-123.103(d) to receive a benefit payable under the plan
upon or after the death of a member or a beneficiary, as
applicable.
(15)(14) DISABILITY RETIREMENT BENEFIT. A benefit
payable pursuant to the terms of Section 45-37-123.102.
(15) DISABLED MEMBER. A member who is currently
receiving a disability benefit from the system pursuant to
Section 45-37-123.102.
(16) DISTRIBUTION CALENDAR YEAR. As defined in Section
45-37-123.106(f)(3).
(17) EARLY RETIREMENT BENEFIT. A benefit payable
pursuant to the terms of Section 45-37-123.100(b).
(18) EFFECTIVE DATE. January 1, 2010 May 23, 2013,
except as otherwise provided.
(19) ELIGIBLE COST-OF-LIVING INDEX. As defined in
Section 45-37-123.106(f)(4).
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Section 45-37-123.106(f)(4).
(20) ELIGIBLE EMPLOYEE.
a. The following individuals affiliated with Jefferson
County, Alabama, or the State of Alabama:
1. Any person individual employed by Jefferson County
at a wage or salary payable at regular intervals, whether or
not such person the individual is subject to the civil service
system in operation in Personnel Board of Jefferson County.
2. Any person individual elected or appointed to a job
or position with or for Jefferson County, whose compensation
was paid or shall be paid, in whole or in part, by Jefferson
County while occupying such the job or position.
3. Any person individual who occupies a county office
in Jefferson County that is created by an act of the
Legislature of the State of Alabama or is provided for by the
Constitution of Alabama of 1901 2022, and such the office
requires full-time service. Such person The individual is an
eligible county office employee.
4. Any person who is an officer or an employee of a
hospital created by Jefferson County if such person's
employment status with the hospital is such that if the person
had the same employment status with Jefferson County, he or
she would be an eligible employee. Such person is an eligible
hospital employee.
5.4. Any person individual employed by the General
Retirement System for Employees of Jefferson County at a wage
or salary payable at regular intervals, whether or not the
person individual is subject to the civil service system in
operation in Personnel Board of Jefferson County.
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operation in Personnel Board of Jefferson County.
6.5. Any person individual employed by the Personnel
Board of Jefferson County at a wage or salary payable at
regular intervals, whether or not the person individual is
subject to the civil operation in Personnel Board of Jefferson
County.
7.6. Any person individual employed by an entity for
which the county is acting as payroll agent or for which the
county has agreed to be reimbursed by the entity for the
compensation paid to the person individual, whether or not the
person individual is subject to the civil service system in
operation in Personnel Board of Jefferson County.
b. An eligible employee shall not include:
1. Any person individual who is appointed or elected as
a member of any board or commission of Jefferson County,
provided that service on such the board or commission does not
require full-time service or the members on the board or
commission receive no compensation for their service except
for meetings attended by them.
2. Any person individual whose employment is temporary
so long as his or her employment remains temporary. A person's
An individual's employment shall be deemed to be temporary
within the meaning of this subdivision if such the employment
is temporary as defined by the civil service system Personnel
Board of Jefferson County , or if the officers, board,
commission, or agency employing such person the individual
certifies in writing to the pension board that the employment
is temporary.
3. Any leased employee and any independent contractor.
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3. Any leased employee and any independent contractor.
(21) EMPLOYEE. Any person individual who is employed by
the county or elected or appointed to a job or position with
or for the county. An employee shall exclude any leased
employee and any independent contractor as such the terms are
defined by the pension board or the civil service system
Personnel Board of Jefferson County . See also subdivision (12)
(11), which covers situations in which other entities may be
the employer of eligible employees.
(22) EMPLOYEE CONTRIBUTION. The amount a member is
required to contribute to the plan as a condition of
employment and participation in the plan pursuant to Section
45-37-123.82 and any amount required to be treated as an
employee contribution in accordance with Section
45-37-123.190(b), relating to transfers from § 457(b),
Internal Revenue Code, plans.
(23) EMPLOYER CONTRIBUTION. The amount the county is
required to contribute to the plan pursuant to Section
45-37-123.20(b) and Section 45-37-123.80(a).
(24) EXECUTIVE DIRECTOR. The individual designated by
the pension board to manage the employees and day-to-day
administration of the system. The individual shall not be
subject to the civil service system Personnel Board of
Jefferson County .
(25) FISCAL YEAR. The system's accounting year of 12
months commencing on October 1 of each year and ending the
following September 30.
(26) 415 COMPENSATION. With respect to any member means
such member's wages as defined in § 3401(a), Internal Revenue
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such member's wages as defined in § 3401(a), Internal Revenue
Code, and all other payments of compensation by the county, in
the course of the county's trade or business, for a calendar
year ending with or within the plan year for which the county
is required to furnish the member a written statement under §§
6041(d), 6051(a)(3), and 6052, Internal Revenue Code. 415
compensation shall be determined without regard to any rules
under § 3401(a), Internal Revenue Code, that limit the
remuneration included in wages based on the nature or location
of the employment or the services performed, such as the
exception for agricultural labor in § 3401(a)(2), Internal
Revenue Code. Notwithstanding the above, the determination of
415 compensation shall be made by including any elective
deferral, as defined in § 402(g)(3), Internal Revenue Code,
and any amount which is contributed by the county at the
election of the member pursuant to a salary reduction
agreement and which is not includible in the gross income of
the member by reason of §§ 125, 132(f)(4), 402(e)(3),
402(h)(1)(B), 403(b), or 457(b), Internal Revenue Code, and
employee contributions described in § 414(h)(2), Internal
Revenue Code, that are treated as employer contributions. For
this purpose, effective January 1, 1998, amounts not
includible in gross income under § 125, Internal Revenue Code,
shall be deemed to include any amounts not available to a
member in cash in lieu of group health coverage because the
member is unable to certify that the member has other health
coverage, provided the county does not request or collect
information regarding the member's other health coverage as
part of the enrollment process for the health plan.
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part of the enrollment process for the health plan.
a. Compensation Paid After Severance from Employment.
With respect to limitation years beginning on and after July
1, 2007, 415 compensation shall be adjusted for the following
types of compensation paid after a member's severance from
employment with the county, or any other entity that is
treated as the county pursuant to § 414(b), (c), (m), or (o),
Internal Revenue Code :.
1. The following amounts shall be included in 415
compensation to the extent these amounts are paid by the later
of two months after severance from employment or by the end of
the limitation year that includes the date of such severance
from employment:
(i) Regular pay. 415 compensation shall include regular
pay after severance from employment if:
A. The payment is regular compensation for services
during the member's regular working hours, or compensation for
services outside the member's regular working hours, such as
overtime or shift differential, commissions, bonuses, or other
similar payments; and
B. The payment would have been paid to the member prior
to a severance from employment if the member had continued in
employment with the county.
(ii) Leave cashouts. 415 compensation shall include
leave cashouts if those amounts would have been included in
the definition of 415 compensation if they were paid prior to
the member's severance from employment, and the amounts are
payment for unused accrued bona fide sick, vacation, or other
leave, but only if the member would have been able to use the
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leave, but only if the member would have been able to use the
leave if employment had continued.
(iii) Deferred compensation. 415 compensation shall
include deferred compensation if the compensation would have
been included in the definition of 415 compensation if it had
been paid prior to the member's severance from employment, and
the compensation is received pursuant to a nonqualified
unfunded deferred compensation plan, but only if the payment
would have been paid at the same time if the member had
continued in employment with the county and only to the extent
that the payment is includible in the member's gross income.
2. The following amounts shall not be included in 415
compensation:
(i) Salary continuation payments for military service
participants. 415 compensation does not include payments to an
individual who does not currently perform services for the
county by reason of qualified military service to the extent
those payments do not exceed the amounts the individual would
have received if the individual had continued to perform
services for the county rather than entering qualified
military service.
(ii) Salary continuation payments for disabled
participants. 415 compensation does not include compensation
paid to a member who is permanently and totally disabled, as
defined in § 22(e)(3), Internal Revenue Code.
b. Administrative Delay or the First Few Weeks Rule.
With respect to limitation years beginning on and after July
1, 2007, 415 compensation does not include amounts earned but
not paid during the limitation year solely because of the
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not paid during the limitation year solely because of the
timing of pay periods and pay dates.
c. Back Pay. With respect to limitation years beginning
on and after July 1, 2007, payments awarded by an
administrative agency or court or pursuant to a bona fide
agreement by the county to compensate a member for lost wages
are 415 compensation for the limitation year to which the back
pay relates, but only to the extent such payments represent
wages and compensation that would otherwise be included in 415
compensation.
(27) INVESTMENT MANAGER. An entity that has the power
to manage, acquire, or dispose of plan assets and acknowledges
fiduciary responsibility to the plan in writing. Such The
entity shall be a person an individual, firm, or corporation
registered as an investment adviser under the Investment
Advisers Act of 1940, a bank, or an insurance company.
(28) INVOLUNTARY DEFERRED RETIREMENT BENEFIT. A benefit
payable pursuant to the terms of Section 45-37-123.100(c)(3).
(29) IRC INTERNAL REVENUE CODE . The Internal Revenue
Code of 1986, as amended or replaced from time to time.
(30) JOINT SURVIVOR. The designated beneficiary of a
deceased member who shall become a member of the system upon
the deceased member's death and who is eligible to receive
payment of a preretirement joint survivorship pension benefit
pursuant to Section 45-37-123.103 or a postretirement joint
survivorship pension benefit pursuant to Section
45-37-123.101.
(30)(31) JOINT SURVIVORSHIP PENSION. Either a
preretirement joint survivorship pension or a postretirement
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preretirement joint survivorship pension or a postretirement
joint survivorship pension.
(31)(32) LIFE EXPECTANCY. As defined in Section
45-37-123.106(f)(5).
(32)(33) MEDICAL ADVISOR. The pension board's medical
advisors or other appointed physicians or vocational
specialists.
(33)(34) MEMBER. Any eligible employee who, depending
on the context as used throughout this plan, participates, or
participated, in the plan as either an active member, a
retired member, a disabled member, or the joint survivor of a
deceased member who is receiving payment of a preretirement
joint survivorship pension benefit pursuant to Section
45-37-123.103 or a postretirement joint survivorship pension
benefit pursuant to Section 45-37-123.101 .
(35) MISSING BENEFICIARY. The designated beneficiary of
a member whose whereabouts are unknown to the system or who is
nonresponsive, or both.
(36) MISSING PARTICIPANT. A member of the system who
has separated from employment with the county without refund
of his or her employee contributions and whose whereabouts are
unknown to the system or who is nonresponsive, or both.
(34)(37) NONSERVICE CONNECTED DISABILITY. A total
disability or partial disability while the member is employed
by the county that is not a service connected disability.
(38) NONVESTED. All members who are not vested.
(35)(39) PAID MEMBERSHIP TIME. The time during which a
member made, or shall have made, employee contributions to the
system and other previous retirement systems, provided,
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system and other previous retirement systems, provided,
however, that if a member, for any reason, including
termination of employment, withdraws his or her employee
contributions, the period during which the employee
contributions are withdrawn shall be considered unpaid
membership time, unless it is was previously converted to paid
membership time as provided for in Section 45-37-123.53 . Paid
membership time also shall include a member's absence due to
qualified military service. Years of paid membership time
shall be calculated in accordance with Section 45-37-123.84.
(36)(40) PARTIAL DISABILITY. A permanent disability
that is less than a total disability determined in accordance
with Section 45-37-123.102(c) 45-37-123.102(a)(3) .
(37)(41) PENSION BOARD. The administrator of the plan,
as whose powers and duties of administration are more fully
described in Subpart 2.
(42) PENSION BENEFIT. A superannuation retirement
benefit, early retirement benefit, or deferred retirement
benefit payable pursuant to Section 45-37-123.100 or a
preretirement or postretirement joint survivorship pension
payable pursuant to Section 45-37-123.103 or Section
45-37-123.101.
(43) PERSONNEL BOARD OF JEFFERSON COUNTY. The personnel
system for employees of the county.
(38)(44) PLAN or SYSTEM. The General Retirement System
for Employees of Jefferson County, which plan or system may
sue or be sued, and in such name all of its business shall be
transacted.
(39)(45) PLAN YEAR. The plan's accounting year of 12
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(39)(45) PLAN YEAR. The plan's accounting year of 12
months commencing on January 1 of each year and ending the
following December 31.
(40)(46) POSTRETIREMENT JOINT SURVIVORSHIP PENSION. The
benefit described in Section 45-37-123.101.
(41)(47) PRERETIREMENT JOINT SURVIVORSHIP PENSION. The
benefit described in Section 45-37-123.103.
(42)(48) PREVIOUS RETIREMENT SYSTEMS. The retirement
systems established by Acts 1953, No. 551, 1953 Regular
Session (Acts 1953, p. 766), as amended, the Employees'
Retirement System of Jefferson County, and by Acts 1961, No.
843, 1961 Regular Session (Acts 1961, p. 1250), as amended,
the Employees General Retirement System of Jefferson County.
(43)(49) QUALIFIED MILITARY SERVICE. Except as
otherwise subsequently provided under § 414(u), Internal
Revenue Code, the performance of duty, on a voluntary or
involuntary basis, in a uniformed service under competent
authority, and includes active duty, active duty for training,
initial active duty for training, inactive duty training,
full-time national guard duty, a period for which a person an
individual is absent from a position of employment for the
purpose of an examination to determine the fitness of the
person individual to perform any such duty, and a period for
which a person an individual is absent from employment for the
purpose of performing funeral honors duty.
(44)(50) REGULAR DEFERRED RETIREMENT BENEFIT. A benefit
payable pursuant to the terms of Section 45-37-123.100(c)(2).
(45)(51) REGULATION. The income tax regulations as
promulgated adopted by the Secretary of the Treasury or a
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promulgated adopted by the Secretary of the Treasury or a
delegate of the Secretary of the Treasury, as amended from
time to time.
(46)(52) REQUIRED BEGINNING DATE. As defined in Section
45-37-123.106(f)(6).
(47)(53) RETIRED MEMBER. An individual who currently is
receiving a pension benefits benefit from the system pursuant
to Section 45-37-123.100 .
(48)(54) SERVICE CONNECTED DISABILITY. A total
disability or partial disability, caused by an accident or
injury arising out of and in the course of a member's
employment with the county.
(49)(55) SERVICE RECORD. An employee's record of
service upon which the pension board bases all of the member's
benefit calculations, including records of the county.
(50)(56) SICK LEAVE RETIREMENT CONVERSION. A program
sponsored by the county or other entities set forth in
subdivision (20) wherein a member is paid for accumulated sick
leave time.
(51)(57) SUPERANNUATION RETIREMENT BENEFIT. A benefit
payable pursuant to the terms of subsection (a) of Section
45-37-123.100 45-37-123.100(a) .
(52)(58) SYSTEM or PLAN. The General Retirement System
for Employees of Jefferson County, which system or plan may
sue or be sued, and in such name all of its business shall be
transacted.
(53)(59) SPOUSE. The legal wife or husband of a member
as determined in accordance with federal law.
(54)(60) TOTAL DISABILITY. A permanent physical or
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(54)(60) TOTAL DISABILITY. A permanent physical or
mental condition of a member resulting from bodily injury,
disease, or mental disorder which renders such member
incapable of continuing usual and customary employment with
the county. The disability of a member shall be determined by
a licensed medical advisor.
(55)(61) TRUSTEE. The pension board or the person
individual or entity appointed by the pension board and named
as trustee herein or in any separate trust forming a part of
the plan, and any successors.
(56)(62) TRUST FUND. The tax-qualified trust in which
certain plan funds are held, disbursed, transferred, and
invested by the trustee at the pension board's, or its
designated investment manager's, discretion and in accordance
with this part, the Internal Revenue Code, and other
applicable laws and regulations.
(57)(63) UNPAID MEMBERSHIP TIME.
a. Subject to paragraph d., all of the following:
1. Time during which a member was employed by the
county, but the member did not make employee contributions to
the system and/or or other previous retirement systems , or
both.
2. Time during which a member withdrew employee
contributions for any reason, including upon a termination of
employment, unless this period of time is was later converted
to paid membership time as provided for in Section
45-37-123.53.
3. Time during which a person an individual held an
elective office or was employed in a full-time job or position
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elective office or was employed in a full-time job or position
in the service of any municipality, governmental agency, or
subdivision or held an elective office, provided that at the
time the person individual served with such the municipality,
governmental agency, or subdivision, it was subject to the
countywide civil service law Personnel Board of Jefferson
County.
b. Unpaid membership time shall not include any of the
following:
1. Service with a municipality, governmental agency, or
subdivision if the employee received a pension from such
municipality, governmental agency, or subdivision, on account
of such service or if such service was considered in the
calculation of the pension.
2. Any unpaid membership time that has been converted
to paid membership time.
3. Any service in a temporary job or position, as
determined by the pension board.
c. If such prior service with a municipality,
governmental agency, or subdivision was not an elective office
or in a classified position, such prior service shall not be
treated as unpaid membership time unless such employee
establishes to the satisfaction of the pension board that such
service was a full-time job.
d. Only with respect to employees entering the system
on or before August 16, 1996, years of unpaid membership time
are used in computing accrued benefits under the plan, as are
months of unpaid membership time. Months are converted into a
fraction of a year as set forth in Section 45-37-123.84.
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fraction of a year as set forth in Section 45-37-123.84.
Notwithstanding any provision of the plan to the contrary,
unpaid membership time shall not accrue after August 16, 1996,
and shall not apply to members who initially join the system,
or members who rejoin the system after having withdrawn, after
August 16, 1996.
(58)(64) VESTED. The portion of a member's benefits
under the plan that generally are have accrued pursuant to
Section 45-37-123.100(c)(2)b. and are therefore
nonforfeitable. Subject to Section 45-37-123.83, relating to
failure to claim a refund of employee contributions within the
five-year period, a A member's benefit shall become
nonforfeitable, or vested, and nonforfeitable upon any of the
following events:
a. The member's accrual of at least 10 years of paid
service;
a.b. Partial or full termination of the plan as set
forth in Section 45-37-123.170; and or
b.c. Meeting the eligibility conditions for entitlement
to a benefit under Subpart 5.
(59)(65) WORKER'S COMPENSATION BENEFITS. Any benefit
paid to a member under any worker's compensation law of the
State of Alabama for any injury or disability suffered by such
member while working for the county on the job or position by
reason of which he or she is a member. Additionally, worker's
compensation benefits are included in compensation for
purposes of determining employee contributions pursuant to
Section 45-37-123.82. Worker's compensation benefits are
included in compensation for purposes of calculating a
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included in compensation for purposes of calculating a
retirement pension benefit only if inclusion of such worker's
compensation benefits produces a higher benefit than exclusion
of such worker's compensation benefits."
"§45-37-123.20
(a) Provisions of records. The county shall provide all
records and documents necessary to determine an employee's
status and eligibility for membership in the plan, upon which
a service record shall be created.
(b) Contributions. The county shall contribute an
amount equal to six percent of an employee's compensation from
the county's general assets to the trust fund system, as
provided in Section 45-37-123.80. The county also shall
withhold six percent of an employee's compensation each pay
period as provided in Section 45-37-123.82. The county also
shall contribute any amounts received pursuant to Section
45-37-233, attributable to pistol permits. Additionally, the
county may pay into the trust fund system from the general
funds of the county, in such installments or times as the
county may elect, an amount or amounts sufficient to assure
that the system is actuarially sound. The system shall remit
contributions to the trust fund as soon as practicable. The
pension board may first pay any sums reasonably necessary to
defray administrative expenses of the plan as determined by
the pension board subject to Section 45-37-123.194. The county
shall also contribute any amounts received pursuant to Section
45-37-233, attributable to pistol permits, to the system,
which shall not be considered plan assets. Any funds
contributed pursuant to Section 45-37-233 shall be remitted to
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contributed pursuant to Section 45-37-233 shall be remitted to
a system depository account and treated as general assets of
the system as a legal entity separate and distinct from the
plan and its trust. "
"§45-37-123.21
(a) General administration. The role of the pension
board is established by the State of Alabama through
legislative act. The pension board is responsible for the
general administration and proper operation of the plan. The
pension board also is responsible for making effective the
provisions of the act.
(b) Qualifications of pension board members. In
addition to the qualifications set forth in subsection (c),
any individual elected or appointed to the pension board shall
complete a background check before the commencement of his or
her term. A prior conviction for a crime of moral turpitude
including, but not limited to, the misappropriation of the
funds or property of another, shall, as determined by the
pension board, disqualify any individual elected or appointed
to the pension board from serving on the pension board.
(b)(c) Composition of pension board. The pension board
is comprised of five members, designated respectively as
member number one, member number two, member number three,
member number four, and member number five.
(1) MEMBER NUMBER ONE. Member number one shall be
appointed by the governing body of the county and shall serve
as chairman of the pension board. Member number one shall have
a minimum of 10 years' experience in an executive capacity in
insurance, investment management/consultant, or actuarial
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insurance, investment management/consultant, or actuarial
work. The initial term of member number one shall be for one
year; and thereafter the term of member number one shall be
for three years.
(2) MEMBER NUMBER TWO. Member number two shall be
appointed by the judge of probate, who is an elected official
of the county. Member number two shall have a minimum of 10
years' experience in an executive capacity in investing or
banking. The initial term of member number two shall expire at
the end of two years; and thereafter the term of member number
two shall be for three years.
(3) MEMBER NUMBER THREE. Member number three shall be
appointed by the Jefferson County Personnel Board of Jefferson
County. Member number three shall have a minimum of 10 years'
experience as a certified public accountant. The initial term
of member number three shall expire at the end of three years;
and the term of member number three shall be for three years.
(4) MEMBERS NUMBER FOUR AND FIVE. Member number four
and member number five shall be elected by the members of the
system. Member number four shall be a retired member of the
system. Member number five shall be a member of the system.
The initial term of member number four shall be for one year;
and thereafter the term of member number four shall be for
three years. Member number five shall be elected for terms of
three years.
(c)(d) Procedure for the election of board members four
and five and selection of the election board.
(1) Elections of member number four and member number
five shall be conducted by separate paper or electronic ballot
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five shall be conducted by separate paper or electronic ballot
pursuant to procedures established by the pension board.
(2) The members of the system shall elect member number
four and member number five. The pension board shall give at
least 15 days' written notice of the time and procedure of the
election by posting the same in at least three prominent
places in the county courthouse on the retirement system
website and by delivering three copies of the same an
electronic or paper copy of the written notice to the county
manager who shall inform all persons individuals on the county
payroll of the election; however, the failure to inform all
such employees of the election shall not invalidate the
election.
(3) The elections of member number four and member
number five shall be supervised by three members of the system
serving volunteering to serve as the election board. The
members that volunteer to serve as the election board shall be
appointed by the members of the system at the annual meeting
as provided for in Section 45-37-123.22(b)(14). If the members
of the system fail to appoint members to the election board,
or if any member so appointed cannot or will not volunteer to
serve on the election board, the pension board shall appoint
the members of the election board. The pension board may
prescribe additional rules for the elections of member number
four and member number five not inconsistent with the
provisions hereof.
(d)(e) Vacancy, how filled. If a vacancy occurs on the
pension board, such vacancy shall be filled for the unexpired
term in the same manner as the office was previously filled.
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term in the same manner as the office was previously filled.
(e)(f) Resignation or removal of pension board member.
A member of the pension board may resign by delivering a
written resignation to the executive director or be removed by
the unanimous vote of the other members of the pension board
at a duly called meeting of the pension board.
(f)(g) Secretary. The secretary of the pension board
shall be the executive director.
(g)(h) Salary and expenses. The Subject to Section
45-37-123.194, the members of the pension board shall serve
without pay, but shall be reimbursed for expenses actually
paid or incurred in the discharge of their official duties,
and shall suffer no loss of salary or wages, if employed by
the county, through service on the board."
"§45-37-123.22
(a) The pension board shall be responsible for the
general administration and proper operation of the plan, and
shall administer the plan for the exclusive benefit of the
members and their designated beneficiaries, subject to the
specific terms of the plan. The pension board shall administer
the plan in accordance with its terms and shall have the power
and discretion to construe the terms of the plan and the act
and to determine all questions arising in connection with the
administration, interpretation, and application of the plan.
Any such determination by the pension board shall be
conclusive and binding upon all persons individuals. The
pension board may establish procedures, correct any defect,
supply any information, or reconcile any inconsistency in such
manner and to such extent as shall be deemed necessary or
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manner and to such extent as shall be deemed necessary or
advisable to carry out the purpose of the plan; provided,
however, that any procedure, discretionary act,
interpretation, or construction shall be done in a
nondiscriminatory manner based upon uniform principles
consistently applied and shall be consistent with the intent
that the plan shall continue to be deemed a qualified plan
under the terms of § 401(a), Internal Revenue Code, and shall
comply with the terms of the act and all regulations issued
pursuant thereto. The pension board shall have all powers
necessary or appropriate to accomplish the pension board's
duties under the plan.
(b) The pension board shall be charged with the duties
of the general administration of the plan as set forth under
the terms of the plan, including, but not limited to, all of
the following:
(1) To determine all questions relating to the
eligibility of employees to participate or remain a member
hereunder and to receive benefits under the plan.
(2) To compute and certify the amount and the kind of
benefits to which any member shall be entitled hereunder.
(3) To maintain all necessary records for the
administration of the plan.
(4) To interpret the provisions of the plan and to make
and publish such rules for regulation of the plan and the
administration of any benefit provided as are consistent with
the act and the terms hereof applicable law.
(5) To establish rules and regulations for the
administration of plan funds and for the transaction of the
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administration of plan funds and for the transaction of the
plan's business including, without limitation, the suspension
or reinstatement of benefits to missing participants or
missing beneficiaries .
(6) To exercise any investment discretion in a manner
designed to accomplish specific objectives related to the
plan's long-term and short-term liquidity needs.
(7) To prepare and provide active members with an
annual estimated benefit statement notifying them of their
estimated benefits.
(8) To prepare and provide retired members with a
one-time notification of their benefit payment amounts, and to
provide retired members with periodic notification of cost of
living cost-of-living benefit increases which may be awarded
by the pension board in any form, lump sum, or otherwise.
(9) To determine the validity of, and take appropriate
action with respect to, any divorce decree, or other judicial
order presented to the pension board.
(10) To assist any member regarding the member's
rights, benefits, or elections available under the plan.
(11) To, by written agreement or designation, appoint
at its option an investment manager, qualified under the
Investment Company Act of 1940, as amended, investment
adviser, or other agent to provide direction regarding any or
all of the plan assets. Such appointment shall specifically
identify the plan assets with respect to which the investment
manager or other agent shall have authority to direct the
investment.
(12) To establish an investment policy.
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(12) To establish an investment policy.
(13) To establish a privacy policy for the protection
of a member's personal information, subject to applicable law.
(14) To hold an annual meeting of the members at least
once per calendar year and provide at least seven days'
written notice of the meeting to all members on the retirement
system website or at either their place of work, last known
address, or by electronic mail.
(15) To determine appropriate rules and regulations to
determine how much service per calendar year is equivalent to
one year of service, in accordance with Section 45-37-123.84.
(16) To develop rules and regulations, amend the plan,
subject to the provisions of Section 45-37-123.150, and
provide for increases in benefits, subject to the provisions
of Section 45-37-123.151.
(17) Notwithstanding any provisions of the plan to the
contrary, to amend the plan in order to comply with federal
law, and any such amendment shall be given full effect under
Alabama law.
(18) To purchase insurance coverage in such forms and
amounts as may be determined by the pension board.
(19) To provide employees of the system with health,
dental, vision, and other forms of insurance, paid vacation,
sick leave, tuition reimbursement, and any other benefits as
determined by the pension board.
(20) To provide members of the system with voluntary
life, disability, and other forms of insurance, the cost of
which is paid by the member.
(21) To conduct meetings and business in person or by
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(21) To conduct meetings and business in person or by
video conference, telephone conference, or electronic
communication.
(22) To participate in emergency relief programs of the
United States, the State of Alabama, and their departments,
agencies, and instrumentalities.
(23) To recover costs and reasonable attorney's fees in
actions in which the pension board seeks to recover funds of
the retirement system erroneously paid to members,
beneficiaries, and third parties.
(24) To authorize the plan to defend and indemnify the
pension board and each of its individual members, employees of
the system, and the system as a legal entity separate and
distinct from the plan from any claim, action, or judgment
connected with or arising from any decision, act, or omission
undertaken within the scope of its or their official capacity
in furtherance of the purposes for which the system is
established to the extent allowed by applicable law and §
401(a), Internal Revenue Code.
(25) To interplead funds into a court of competent
jurisdiction when the pension board cannot determine the owner
of said funds or for any other reason allowed under applicable
law.
(c) Failure of the pension board to follow any
provisions or procedures in the plan shall not constitute a
waiver of any provision or procedure contained herein."
"§45-37-123.23
(a) Records. The pension board shall keep minutes of
its meetings. Additionally, the pension board shall keep all
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its meetings. Additionally, the pension board shall keep all
other books of account, records, policies, compensation
records, service records, and other data that may be necessary
for proper administration of the plan and shall be responsible
for supplying all information and reports to the Internal
Revenue Service, members, designated beneficiaries, and others
as may be required by law. Records, as provided in this
subsection, are not public records.
(b) Correction of records.
(1) The pension board shall correct any error in a
member's service record which the pension board concludes is
necessary to correct or remove an injustice or prevent a
member from receiving less or more than such member is
entitled to receive under the plan. The pension board shall
adopt written rules prescribing the procedure the pension
board shall follow in considering whether an error in an
employee's service record should be corrected. Correction of
service records shall be subject to the following limitations:
a. No error in the service record shall be corrected
except by the pension board.
b. The pension board shall not correct any error in an
employee's service record until it has accorded, or offered to
accord, the employee a hearing regarding the proposed
correction, which hearing shall not be conducted until after
the employee has received at least two weeks' notice of the
nature of the proposed correction and of the time and place at
which the proposed correction shall be considered.
c. No correction of an error shall be made at an
employee's request unless the employee files with the pension
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employee's request unless the employee files with the pension
board his or her written request for such correction before
the date that is one year subsequent to the employee's
discovery of the error requested to be corrected; provided,
however, the pension board may excuse an employee's failure to
file such application for correction within one year following
his or her discovery of such error if the pension board finds
that excusing such failure would be most equitable.
(2) If the pension board determines that any amount has
been erroneously deducted from the compensation of an employee
and paid into to the trust fund system as an employee
contribution, or that any amount has been otherwise paid into
to the trust fund system erroneously on behalf of any
employee, such amount shall be refunded to the employee, and
any amount which may have been paid erroneously to match such
erroneous contribution shall be refunded. The pension board is
authorized to determine whether interest shall be payable on
any amounts returned and to determine the amount of interest
to be paid, if any; provided, however, that no interest shall
be paid to any employee responsible for the error resulting in
the erroneous payment.
(c) Audit. The pension board shall cause an audit to be
made of its affairs by a certified public accountant at least
once each calendar year."
"§45-37-123.24
The pension board may allocate responsibilities among
the members of the pension board and/or or may delegate
responsibilities to third parties , or both. The pension board
may employ, appoint, or contract with additional employees,
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may employ, appoint, or contract with additional employees,
administrators, managers, counsel, specialists, advisers,
agents, including nonfiduciary agents, and other persons
individuals as the pension board or the trustee deems
necessary or desirable in connection with the administration
of the plan, including, but not limited to, agents and
advisers to assist with the administration and management of
the plan, and thereby to provide, among such other duties as
the pension board may appoint, assistance with maintaining
plan records and the providing of investment information to
the plan's investment fiduciaries, and none of such persons
those individuals shall be subject to the civil service system
Personnel Board of Jefferson County ."
"§45-37-123.25
The county, the Jefferson County Personnel Board of
Jefferson County , or the county’s agent, as applicable, shall
supply full and timely information , including, but not limited
to, all payroll, service records , and personal history of
members, to the pension board as the pension board may require
in order to perform its duties hereunder. The pension board
may rely upon such information as accurate and shall have no
duty or responsibility to verify such information."
"§45-37-123.26
AllSubject to Section 45-37-123.194, all payment of
benefits, expenses of administration, and any other expenses
arising hereunder, may be paid by the pension board out of the
trust fund, unless otherwise paid by the county or from the
general assets of the system as a legal entity separate and
distinct from the plan and its trust . Such expenses shall
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distinct from the plan and its trust . Such expenses shall
include any expenses incident to the functioning of the
pension board, or any person or persons individual retained or
appointed by any fiduciary incident to the exercise of their
duties under the plan , including, but not limited to, fees of
accountants, counsel, investment managers, and other
specialists and their agents, and other costs of administering
the plan. Until paid, the expenses shall constitute a
liability of the system."
"§45-37-123.27
Three members of the pension board shall constitute a
quorum for the transaction of all business. Except where there
has been an allocation and delegation of administrative
authority pursuant to Section 45-37-123.24, three affirmative
votes shall be necessary for a decision by the pension board."
"§45-37-123.28
(a) Claims for benefits under the plan shall be filed
in writing with the executive director on forms which may
include, but are not limited to, electronic forms provided by
the pension board and filed in accordance with procedures
established by the pension board or the executive director, or
both. The procedure and documents to be produced by a member
or designated beneficiary may differ depending on the type of
benefit claim being made.
(b) The pension board may allow a properly designated
power of attorney to act on behalf of a member or designated
beneficiary so long as the act is authorized under the terms
of the power of attorney documentation."
"§45-37-123.29
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"§45-37-123.29
Any employee, former employee, or designated
beneficiary of either, who has been denied a benefit by a
decision of the pension board pursuant to a claim made under
Section 45-37-123.28 shall be entitled to request the pension
board to give further consideration to a claim by filing with
the pension board a written request for a hearing. Such
request shall be filed with the pension board no later than 60
days after receipt of the written notification of denial. The
pension board shall then conduct a hearing as soon as
administratively feasible. The hearing shall typically be held
at the pension board's regular meeting. A final decision as to
the claim shall be made by the pension board as soon as
administratively feasible after receipt of the appeal and the
claimant shall be notified in writing of the decision. In the
event of a denial of a disability retirement benefit claim, a
new disability retirement benefit claim may not be made for at
least six months from the date of the last appeal denial,
unless otherwise determined in the discretion of the pension
board or the executive director."
"§45-37-123.50
Any eligible employee may become a member of the system
as described below. Notwithstanding the following, any person
individual who was a member of the system prior to the
effective date of the amendment and restatement of the plan
shall continue to be a member of the system.
(1) MANDATORY MEMBERSHIP.
a. Eligible Employees Subject to the Civil Service
System. Except as otherwise provided in subdivision (2), every
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System. Except as otherwise provided in subdivision (2), every
eligible employee who occupies a full-time position subject to
the civil service system applicable to Personnel Board of
Jefferson County shall become a member of the system and shall
make employee contributions to the system in accordance with
Section 45-37-123.82. If an employee subsequently occupies a
position not subject to the Personnel Board of Jefferson
County, the employee shall remain a mandatory and contributing
member of the system, except as otherwise provided herein.
b. Hospital Employees. Every eligible hospital
employee, as defined in subdivision (21) of Section
45-37-123.01, shall become a member of the system and shall
make employee contributions to the system in accordance with
Section 45-37-123.82 if his or her relation to the hospital
corporation is such that if he or she had the same relation to
Jefferson County as he or she has to the hospital corporation,
his or her membership in the system would be mandatory.
(2) OPTIONAL MEMBERSHIP. The following eligible
employees may exercise the option to become a member of the
system by filing with the secretary of the pension board
executive director an executed declaration stating that he or
she elects to become a member of the system, subject to all of
the rights and liabilities of members of the system. The
declaration shall be in such form and time as the pension
board may prescribe. Once the declaration is accepted by the
pension board or a representative of the pension board, such
eligible employee then shall become a member of the system and
shall begin to make employee contributions to the system in
accordance with Section 45-37-123.82. The election to become
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accordance with Section 45-37-123.82. The election to become
or not become a member, once exercised, shall be irrevocable.
a. Eligible Employees Not Subject to the Civil Service
System Personnel Board of Jefferson County . Any eligible
employee who occupies a full- full-time or part-time position
not subject to the civil service system applicable to
Personnel Board of Jefferson County shall not become a member
of the system unless he or she exercises the written option to
become a member.
b. Hospital Employees. Any eligible hospital employee,
as defined in subdivision (21) of Section 45-37-123.01, shall
have the option of becoming a member of the system if such
eligible hospital employee's relation to the hospital
corporation is such that if he or she had the same relation to
Jefferson County as he or she has to the hospital corporation,
he or she would have the option of becoming a member of the
system.
c.b. Eligible County Office Employees , Eligible Circuit
Solicitors, Eligible Deputy Solicitors, and Eligible Part-Time
Employees. Notwithstanding the mandatory membership provisions
in subdivision (1), any eligible county office employee, any
eligible circuit solicitor, any eligible deputy solicitor, as
each is defined in Section 45-37-123.01, and any part-time
employee who occupies a position subject to the civil service
system applicable to Personnel Board of Jefferson County shall
not become a member of the system unless he or she exercises
the written option to become a member."
"§45-37-123.54
If a member of the system severs employment with the
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If a member of the system severs employment with the
county or his or her term in an elected or appointed job or
position terminates, and such the member thereafter returns to
the service of the county, he or she shall become a member of
the system to the extent he or she meets the definition of an
eligible employee, subject to the following rules:
(1) RETIRED MEMBER RECEIVING A PENSION BENEFIT. If a
member receiving his or her pension benefit is reemployed by
the county two or more years after severing employment, the
pension benefit of the member shall not be reduced. If a
member is receiving his or her pension benefit and is
reemployed by the county less than two years after severing
employment, any amount otherwise payable by the system to the
member on account of the member's retirement shall be reduced
by the amount, if any, paid or payable to the member by the
county on account of or by reason of the reemployment of the
member. At the earlier of the time the member thereafter
severs employment with the county or after two or more years
of reemployment by the county after the date on which the
member retired, such the member's pension benefit shall return
to the amount it was prior to the member's reemployment.
However, notwithstanding subdivisions (3) and (4), such a
member covered by this subdivision shall not make any
additional employee contributions or accrue any additional
pension benefit during his or her period of reemployment.
(2) MEMBER ELECTED A DEFERRED RETIREMENT. If a vested
member who severed employment with the county and elected a
deferred retirement benefit is reemployed by the county before
age 60, his or her election for a deferred retirement benefit
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age 60, his or her election for a deferred retirement benefit
shall be rescinded, and he or she shall resume making employee
contributions and begin to accrue benefits again upon the date
of reemployment if the member's position is subject to
mandatory membership pursuant to Section 45-37-123.50(1) . Such
member's benefit , if any, shall be calculated by aggregating
the member's credited service during all periods of employment
membership in the system. Alternatively, if the member's
position is subject to optional membership pursuant to Section
45-37-123.50(2), the member shall resume employee
contributions and begin to accrue benefits again only if he or
she has exercised the option to become a member in accordance
with Section 45-37-123.50(2) .
(3) DISABLED MEMBER RECEIVING A DISABILITY BENEFIT. If
a disabled member receiving a disability benefit is reemployed
by the county, his or her disability benefit shall terminate
effective upon the date of reemployment.
(3)(4) MEMBER DOES NOT RECEIVE A REFUND AND IS
REEMPLOYED WITHIN FIVE YEARS. Except as set forth in
subdivision (1), if a member, who severed employment with the
county but did not receive a refund of his or her employee
contributions to the system as provided in Section
45-37-123.104, is reemployed by the county within five years
of such severance from employment, he or she shall resume
making employee contributions and begin to accrue benefits
again upon the date of reemployment. The member's benefit
shall be calculated by aggregating the member's credited
service during all periods of employment.
(4)(5) MEMBER RECEIVED A REFUND OR FORFEITED PENSION
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(4)(5) MEMBER RECEIVED A REFUND OR FORFEITED PENSION
BENEFIT. Except as set forth in subdivision (1), if a member
who severed employment with the county and received a refund
of his or her employee contributions to the system as provided
in Section 45-37-123.104 , or does not receive a refund within
five years after severing from employment , is reemployed by
the county, he or she shall rejoin the system in accordance
with Sections 45-37-123.50 and 45-37-123.82 and begin to
accrue benefits again upon the date of reemployment. In
calculating the member's benefit, only credited service
rendered after the member is reemployed shall be included."
"§45-37-123.80
(a) Employer contributions. Each payroll period, an
amount equal to the total of all members’ employee
contributions that is deducted from the members’ compensation
pursuant to Section 45-37-123.82 shall be contributed by the
county and shall be paid into to the trust fund system. The
system shall remit the contributions to the trust fund as soon
as practicable, however the pension board may first pay any
sums reasonably necessary to defray administrative expenses of
the plan as determined in the sole discretion of the pension
board subject to Section 45-37-123.194 .
(b) Employer contributions upon reinstatement from
qualified military service. If any member leaves the service
of the county for the purposes of performing qualified
military service and shall have been reinstated to the service
of the county within 90 days after such member’s separation
from such qualified military service, then the county shall
promptly pay into to the trust fund system an amount equal to
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promptly pay into to the trust fund system an amount equal to
twice the employee contribution which the employee would have
made if he or she had not been absent on such leave, and if
his or her compensation had continued to be the same as he or
she was earning at the time of the commencement of the leave;
provided, however, that no part of such payment by the county
shall be refundable to the employee pursuant to Section
45-37-123.104."
"§45-37-123.82
(a) Employee contributions generally. As a condition of
employment and of accruing benefits under the plan, each
member shall contribute six percent of such member's
compensation to the plan. The employee contributions shall be
after tax, or if approved by the pension board such employee
contributions shall be pre-tax and treated as "picked-up" and
contributed by the county to the plan pursuant to Section§
414(h)(2) of the Internal Revenue Code. The county shall
process such employee contributions each payroll period and
the aggregate amount shall be deposited in the trust fund
system. Employee contributions shall begin on the member's
first paycheck after a member becomes eligible for membership
in the system as provided for in Section 45-37-123.50. In the
event that the county fails to withhold any employee
contributions, the county may withhold such amounts, whether
treated by the county as after-tax contributions or treated as
"picked-up" contributions, from future paychecks as are
necessary to restore the amounts not withheld.
(b) Withdrawal or refunds of employee contributions.
Employee contributions may be withdrawn or refunded only as
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Employee contributions may be withdrawn or refunded only as
provided in Section 45-37-123.104.
(c) Cessation of employee contributions. A member may
terminate employee contributions when the member's service
entitles him or her to receive the maximum benefit available
after 30 years of paid service, as further provided in Section
45-37-123.104(3)."
"§45-37-123.83
The pension board and county are authorized to
contribute to the system or trust fund any monies received in
the form of donations, gifts, appropriations, bequests, or
otherwise, or derived therefrom. Additionally, any member or
beneficiary who fails to make timely application for the
amount of his or her employee contributions pursuant to
Section 45-37-123.104 shall be deemed to have forfeited and
donated employee contributions to the trust fund. In no event
shall any forfeitures under the plan result in an increase in
the benefit to be paid to any member. The executive director
shall provide one certified letter to the member within 60
days following the member's termination of employment advising
the member of the foregoing forfeiture provisions. See also
Section 45-37-123.194 for additional forfeiture provisions. "
"§45-37-123.84
Except as otherwise specifically stated herein, the
rules below shall apply in determining length of service for
all purposes under the plan.
(1) In no case may more than one year of service be
credited for service in one calendar year.
(2) A member shall work over one-half of a month,
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(2) A member shall work over one-half of a month,
including all calendar days or the hourly equivalent thereof ,
in order to earn one month of service.
(3) Except as otherwise specifically stated herein or
required by federal law, a member shall not be allowed service
credit for any period of more than one-half of a month during
which such member is absent without pay.
(4) A member shall receive service credit for any and
all paid leaves of absence, including a paid Family and
Medical Leave Act leave, regardless of the length of the leave
and regardless of the performance of any services. For
member's members terminating employment between August 1,
1993, and January 31, 2010, up to three months of service
credit was granted to members on unpaid Family and Medical
Leave Act leaves.
(5) Years of paid membership time are used in computing
benefits under the plan, as are months of paid membership
time. Months shall be converted into a fraction of a year as
follows:
1 month .0833
2 months .1667
3 months .2500
4 months .3333
5 months .4167
6 months .5000
7 months .5833
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7 months .5833
8 months .6667
9 months .7500
10 months.8333
11 months.9167
12 months1.0000
(6) The pension board may disregard a fractional part
of a year in computing paid membership time or unpaid
membership time that is less than one-twelfth of a year.
(7) Notwithstanding any provision of the plan to the
contrary, effective December 12, 1994, contributions,
benefits, and service shall be provided in accordance with §
414(u), Internal Revenue Code, relating to military leave.
(8) Service before and after reemployment by the county
shall also be calculated in accordance with Section
45-37-123.54."
"§45-37-123.100
(a) Superannuation retirement benefit.
(1) ELIGIBILITY. A member shall be eligible for a
superannuation retirement benefit if the member is not
receiving a disability benefit and :
a. The member has 30 or more years of paid membership
time, regardless of age;
b. The member has 10 or more years of paid membership
time and has attained the age of 60; or
c. The member has 30 years of service, 20 years of
which are paid membership time, and has attained the age of
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which are paid membership time, and has attained the age of
55.
(2) CALCULATION OF BENEFIT. If a member meets the
foregoing eligibility criteria, then the member shall be
eligible to retire and receive a monthly benefit for the
remainder of his or her life to be determined by the following
formula:
a. Two and one-half percent multiplied by the basic
average salary multiplied by the number of years of paid
membership time; plus
b. Five-eighths of one percent multiplied by the basic
average salary multiplied by the number of years of unpaid
membership time, if applicable.
(3) SEVENTY-FIVE PERCENT LIMITATION. Notwithstanding
the foregoing, no member shall receive any retirement pension
benefit in excess of 75 percent of his or her basic average
salary. This 75 percent limitation shall only be applied at
the time that the beginning retirement pension benefit is
determined and shall not limit increases granted to retired
members subsequent to their retirement. Additionally, this 75
percent limitation shall be applied before applying any
actuarial adjustments to reflect an election of a joint
survivorship pension.
(4) SECTION 401(a)(17), INTERNAL REVENUE CODE,
LIMITATION. Notwithstanding the foregoing provisions of this
subsection, after applying the § 401(a)(17), Internal Revenue
Code, compensation limit set forth in subdivision (11) of
Section 45-37-123.01 45-37-123.01(10) , the pension board, with
the assistance of an actuary, shall determine the adjustments
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the assistance of an actuary, shall determine the adjustments
to any or all of the components or factors of the benefit
formula, other than paid membership time, unpaid membership
time, and/or the basic average salary as limited by the
compensation limit that would be necessary to yield the
maximum benefit specified under this part, without regard to §
401(a)(17), Internal Revenue Code; the pension board shall
then use such adjusted benefit formula to determine the
maximum benefit due from the plan, subject, however, to
Subpart 6, and Internal Revenue Code , Section 415 limitations.
(5) ELIGIBILITY FOR POSTRETIREMENT JOINT SURVIVORSHIP
PENSION. A member that is entitled to a superannuation
retirement benefit shall be entitled to instead elect a
postretirement joint survivorship pension, as provided for
under Section 45-37-123.101.
(6) DEATH. If a member dies while receiving payment of
a superannuation retirement benefit, the return of any
remaining portion of his or her employee contributions shall
be governed by Section 45-37-123.104(5)d 45-37-123.104(4)d . If
the member has received payments in an amount at least equal
to the amount of employee contributions he or she made to the
plan at the time of death, then no further payments shall be
made upon the member's death.
(b) Early retirement benefits.
(1) REGULAR EARLY RETIREMENT. A member may elect, but
is not required, to retire prior to age 60 if the member has
completed 30 or more years of service, 10 of which, but not
the total 30, are paid membership time. In the event that a
member makes such an election, such member shall be entitled
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member makes such an election, such member shall be entitled
to receive an early retirement benefit equal to the member's
benefit that would be payable pursuant to subsection (a), but
with an actuarial equivalent reduction for each year less than
60 years of age, as follows:
Age of Member on
Last Birthday
Preceding
Retirement
Reduced Retirement Benefit on Account of
Retirement before Age 60 Expressed as a
Percentage of the Superannuation
Retirement Benefit under subsection (a)
59 93%
58 87%
57 82%
56 77%
55 72%
54 68%
53 64%
52 60%
51 57%
50 54%
49 51%
48 48%
(2) TWENTY-FIVE YEAR EARLY RETIREMENT BENEFIT. On and
after April 24, 2003, a member with at least 25 years of paid
membership time, but less than 30 years of paid membership
time, who is not eligible for a superannuation retirement
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time, who is not eligible for a superannuation retirement
benefit may elect to retire early, but is not required to do
so. In the event that a member makes such an election, such
member shall be entitled to receive a 25-year early retirement
benefit equal to the member's benefit that would be payable
under superannuation retirement benefit pursuant to subsection
(a), but with an actuarial equivalent reduction of seven
percent for each whole year less than 30 years. For purposes
of the seven percent reduction, months are not counted.
(3) ELIGIBILITY FOR POSTRETIREMENT JOINT SURVIVORSHIP
PENSION. A member that is entitled to an early retirement
benefit shall be entitled to instead elect a postretirement
joint survivorship pension, as provided for under Section
45-37-123.101.
(4) DEATH. If a member dies while receiving payment of
an early retirement benefit, the return of any remaining
portion of his or her employee contributions shall be governed
by Section 45-37-123.104(5)d 45-37-123.104(4)d . If the member
has received payments in an amount at least equal to the
amount of employee contributions he or she made to the plan at
the time of death, then no further payments shall be made upon
the member's death.
(c) Deferred retirement benefits.
(1) GENERAL RULES FOR DEFERRED RETIREMENT BENEFITS.
a. Ineligibility for Deferred Retirement Benefit if
Eligible for Superannuation Retirement Benefit. If a member is
eligible for a superannuation retirement benefit, then he or
she is not eligible for a deferred retirement benefit.
b. Withdrawal of Employee Contributions. A member who
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b. Withdrawal of Employee Contributions. A member who
has elected a deferred retirement benefit may at any time
before payment of such benefit commences withdraw in full his
or her employee contributions, without interest. However, no
deferred retirement benefit shall be paid to a member who
withdraws such employee contributions.
c. Eligibility for Postretirement Joint Survivorship
Pension. A member that is entitled to a deferred retirement
benefit shall be entitled to instead elect a postretirement
joint survivorship pension provided for under Section
45-37-123.101.
d. Death. If a member dies before or after payment of
his or her deferred retirement benefit commences, the return
of his or her employee contributions to the plan shall be
governed by Section 45-37-123.104(5)b. or d.
45-37-123.104(4)b. or d. , respectively.
(2) REGULAR DEFERRED RETIREMENT BENEFIT.
a. Eligibility. Subject to the general eligibility
requirements stated in subdivision (1), a member may elect a
regular deferred retirement benefit if he or she has at least
10 years of paid membership time.
b. Calculation of Benefit/Vesting. The regular deferred
retirement benefit shall be calculated by multiplying the
superannuation retirement benefit that the member would have
been entitled to had he or she been 60 years of age when he or
she terminated employment, times a percentage, which
percentage shall be determined based upon the member's paid
membership time, and shall vest and become nonforfeitable as
follows:
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follows:
1. Ten years of paid membership time: 50 percent.
2. Eleven years of paid membership time: 60 percent.
3. Twelve years of paid membership time: 70 percent.
4. Thirteen years of paid membership time: 80 percent.
5. Fourteen years of paid membership time: 90 percent.
6. Fifteen or more years of paid membership time: 100
percent.
c. Commencement of Payment. Payment Subject to the
requirements provided in subsection (e), payment of a member's
regular deferred retirement benefit shall commence upon the
date that the member reaches the age of 60 and shall continue
for the life of the member, regardless of whether the member
is employed with another employer at the time payment is to
commence.
(3) INVOLUNTARY DEFERRED RETIREMENT BENEFIT.
a. 20/55 Provisions. Subject to the general eligibility
requirements stated in subdivision (1), a member who is not
entitled to voluntarily retire pursuant to subsection (a),
superannuation retirement benefit, or subdivision (1) of
subsection (b), regular early retirement benefit, but who is
involuntarily retired after accumulating 20 years of service
with the county, at least 10 of which is paid membership time,
shall be entitled to receive a monthly benefit computed in
accordance with the formula set forth in subsection (a),
superannuation retirement benefit, the payment of which shall
commence upon his or her retirement if he or she has attained
the age of 55; if the member has not attained the age of 55,
payment shall be delayed until the member's attainment of age
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payment shall be delayed until the member's attainment of age
55.
b. 18/60 Provisions. Subject to the general eligibility
requirements stated in subdivision (1) and to this paragraph,
a member who is not entitled to voluntarily retire pursuant to
subsection (a), superannuation retirement benefit, or
subdivision (1) of subsection (b), regular early retirement
benefit, but who is involuntarily retired after accumulating
18 years of service with the county, at least 10 of which is
paid membership time, shall be entitled to receive a monthly
benefit computed in accordance with the formula set forth in
subsection (a), superannuation retirement benefit, the payment
of which shall commence as set forth below.
1. Member contributions. In order to receive a benefit
under paragraph b., a member shall contribute to the plan from
the date of the member's involuntary retirement to the date
that the benefit commences, by the last day of each calendar
month: (i) the amount of employee contributions that he or she
would have made if he or she had continued to be employed by
the county at the same salary as he or she was receiving at
the time of his or her termination of employment, plus (ii)
the amount which the county would have contributed to the plan
on the member's behalf if he or she had continued to be
employed by the county at the same salary as he or she was
receiving at the time of his or her termination of employment.
2. Commencement of payment. Payment Subject to the
requirements provided in subsection (e), payment of a member's
involuntary deferred retirement benefit under paragraph b.
shall commence upon the earlier of: (i) the date on which the
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shall commence upon the earlier of: (i) the date on which the
member attains the age of 60; or (ii) the date on which the
member would have completed 30 years of service with the
county, if he or she had continued employment with the county,
regardless of whether the member is employed with another
employer at the time payment is to commence; provided however,
that if at the time payment of the deferred retirement benefit
commences, he or she has not attained the age of 60, the
amount of his or her monthly benefit computed in accordance
with subsection (a), superannuation retirement benefit, shall
be reduced in the same manner as the early retirement benefit
is reduced under subdivision (1) of subsection (b).
(d) Offset for payment of hospital, surgical, and
medical benefits premiums. To the extent that the county, with
sufficient advance written notice, so directs the system, the
system shall offset the monthly benefit amount payable to a
retired member by an amount, determined by the county, needed
to pay for the member's premiums for certain hospital,
surgical, and/or or medical benefits , or any combination of
them, sponsored by the county. The system shall pay such
withheld amounts to the county on a monthly basis. In the
event that the county makes an error in its written direction
to the system, the system shall not be required to correct
such error by adjusting its withholdings; rather, such error
shall be corrected between the county and the member. At any
time a written opinion from a competent actuary selected by
the commission is made indicating that the funds and assets of
the system are not actuarially sound, then the benefits of
this subsection shall cease to be in effect until such time as
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this subsection shall cease to be in effect until such time as
an actuary appointed by the commission gives a written opinion
that the system is financially sound. Any such actuarial
services shall be paid for by the system.
(e) Member action required. A member shall complete all
forms required by the pension board before payment of any
benefit provided in this chapter may commence. "
"§45-37-123.101
(a) Election of postretirement joint survivorship
pension. In lieu of a benefit under subsections (a) to (c),
inclusive, of Section 45-37-123.100, superannuation retirement
benefit, early retirement benefit, or deferred retirement
benefit, respectively, a member may elect to receive a
postretirement joint survivorship pension.
(1) PERCENTAGE ELECTION. In the event that a member
desires to elect pursuant to this subsection to receive a
postretirement joint survivorship pension, he or she shall
elect one of the following percentages, which election shall
be the actuarial equivalent of the monthly retirement pension
benefit provided in subsections (a) to (c), inclusive, of
Section 45-37-123.100, as applicable:
a. Reduced monthly benefit payable over the life of the
member and the life of the member's designated beneficiary, 50
percent postretirement joint survivorship pension.
b. Reduced monthly benefit payable over the life of the
member and the life of the member's designated beneficiary, 66
and two-thirds percent postretirement joint survivorship
pension.
c. Reduced monthly benefit payable over the life of the
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c. Reduced monthly benefit payable over the life of the
member and the life of the member's designated beneficiary, 75
percent postretirement joint survivorship pension.
d. Reduced monthly benefit payable over the life of the
member and the life of the member's designated beneficiary,
100 percent postretirement joint survivorship pension.
(2) FORM OF POSTRETIREMENT JOINT SURVIVORSHIP PENSION.
In addition to electing a percentage under subdivision (1), a
member who desires to elect to receive a postretirement joint
survivorship pension shall elect one of the following two
forms:
a. Pop-up Form. Under the pop-up form, if the member's
designated beneficiary predeceases the retired member, then in
the month following the designated beneficiary's death, the
member's monthly pension benefit shall pop-up to the amount
that would have been payable to the member under subsections
(a) to (c), inclusive, of Section 45-37-123.100, as
applicable, as if the member had never elected a
postretirement joint survivorship pension; the cost of a
pop-up form is more than the cost of the regular form
described in paragraph b.
b. Regular Form. Under the regular form, if the
member's designated beneficiary predeceases the retired
member, then the member shall continue to receive the same
amount that he or she was receiving prior to the designated
beneficiary's death. The amount of the benefit payment shall
not change.
(b) Timing of election. Except as provided in the
immediately following sentence, in the event that a member
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immediately following sentence, in the event that a member
desires to elect a postretirement joint survivorship pension,
he or she shall do so in writing, on a form provided by the
pension board, no later than the member's last day of
employment. In the event that a member previously elected a
deferred retirement benefit and desires to elect a
postretirement joint survivorship pension, he or she shall do
so in writing, on a form provided by the pension board, no
later than the day before the member's sixtieth birthday.
(c) Timing of payments. Payment to the member commences
on the day after the member terminates employment and shall
continue to be paid each month thereafter until the member's
death. If the member's designated beneficiary survives after
the death of the member, the postretirement joint survivorship
pension payments shall be made monthly to the designated
beneficiary, beginning on the first day of the month following
the member's death, assuming provided that the pension board
is notified of the death in a timely manner and the designated
beneficiary has completed all forms required by the pension
board. Payments shall terminate with the first monthly payment
preceding the second to die of the member and the designated
beneficiary. In the event that a refund is to be paid pursuant
to Section 45-37-123.104(4)c., such payment shall be made as
soon as administratively feasible following the
member's/designated beneficiary's deaths.
(d) Cost of postretirement joint survivorship pension.
To the extent that a member elects payment of a postretirement
joint survivorship pension for his or her designated
beneficiary, the benefit otherwise payable to the member shall
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beneficiary, the benefit otherwise payable to the member shall
be actuarially reduced to reflect the election of a
postretirement joint survivorship pension.
(e) Changes in election. At any time before termination
of employment, the member may cancel his or her election to
have payment in such form by completing a form provided by the
pension board. Except as otherwise stated herein, the member's
election of a postretirement joint survivorship pension shall
be irrevocable once the member terminates employment.
(1) DEATH. a. Death of Member Prior to Actual
Retirement. In the event that a member dies prior to his or
her actual retirement, any postretirement joint survivorship
pension election he or she made shall be deemed void.
b. Death of Designated Beneficiary Before Payments
Commence. In the event that a member elects a postretirement
joint survivorship pension and his or her designated
beneficiary dies before payments commence, then upon the
designated beneficiary's death, the member's election of the
postretirement joint survivorship pension shall be
automatically canceled, and the member's right to receive
payments in accordance with subsections (a) to (c), inclusive,
of Section 45-37-123.100, as applicable, shall be reinstated.
c. Death of Both Member and Designated
Beneficiary-Refund. Except as provided in the immediately
following sentence, in the event that a payment begins to the
member, no refund of employee contributions shall be paid
thereafter. Notwithstanding the foregoing sentence, in the
event that the member and his or her designated beneficiary
die, a refund shall be made in accordance with Section
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die, a refund shall be made in accordance with Section
45-37-123.104(4)c.
(2) DIVORCE. In the event that a married member names
his or her spouse as designated beneficiary, a subsequent
divorce of the member and the designated beneficiary shall not
cancel an election of a postretirement joint survivorship
pension. However, in the event that a member or designated
beneficiary presents to the pension board what the pension
board believes to be a valid divorce decree, settlement
agreement, or domestic relations order, collectively, a DRO,
that provides for a waiver or forfeiture of the postretirement
joint survivorship pension, then such waiver or forfeiture
shall be recognized by the pension board, and, accordingly,
the postretirement joint survivorship pension shall be deemed
void, and the member's monthly pension benefit shall
thereafter pop-up to the amount that would have been payable
to the member under subsections (a) to (c) of Section
45-37-123.100, as applicable, as if the member had never
elected a postretirement joint survivorship pension. Such
pop-up shall occur in the month following the pension board's
receipt and approval of the DRO. The member shall not be
allowed to elect another joint survivorship pension. See also
Section 45-37-123.194(a) for additional rules relating to
certain DROs.
(f) Beneficiary Designated beneficiary designation. Any
beneficiary designation made by a member for a preretirement
joint survivorship pension shall automatically lapse upon the
member's retirement or other termination of employment, and
such member shall complete new forms, to be provided by the
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such member shall complete new forms, to be provided by the
pension board, to designate a beneficiary of any
postretirement joint survivorship pension, in accordance with
Section 45-37-123.103(d) this section.
(g) Proof of death and marriage. The pension board may
require proper proof of death or marriage in accordance with
Section 45-37-123.103(f)."
"§45-37-123.102
(a) Disability benefit.
(1)a. Non-service connected disability benefits
benefit. Subject to subsection (h) (b), any member who, after
accumulating 10 years of paid membership time, experiences a
total or partial and permanent disability as a result of a
non-service connected disability shall be entitled to receive,
at the time set forth in subsection (e) (c), a monthly
disability retirement benefits benefit determined in
accordance with Section 45-37-123.100, as though the disabled
member were entitled to a superannuation retirement benefit at
the commencement of the disability; however, there shall be a
percentage reduction of such benefit to reflect early
commencement of the payment, such percentage to be based on
the member's whole years from actual eligibility for a
superannuation retirement benefit, as set forth below.
Notwithstanding any provisions to the contrary, the minimum
monthly disability retirement benefit payable in connection
with a non-service connected disability occurring before May
17, 2021, shall be 50 percent of the monthly compensation the
member was receiving at the time he or she experienced a total
and permanent disability.
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and permanent disability.
Number of Whole Years Until
Eligibility for Superannuation
Retirement Benefit
Percentage Reduction of
Superannuation Retirement
Benefit
1 93%
2 87%
3 82%
4 77%
5 72%
6 68%
7 64%
8 60%
9 57%
10 54%
11 or more 50%
b. Any member who, after accumulating 10 years of paid
membership time, experiences a partial and permanent
disability as a result of a non-service connected disability,
shall be entitled to receive a monthly disability benefit
determined in accordance with subdivision (3).
(b)(2) Service connected disability benefits benefit.
Subject to subsection (h) (b), any member who experiences a
total or partial and permanent disability as a result of a
service connected disability shall be entitled to receive a
monthly disability retirement benefits benefit in an amount
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monthly disability retirement benefits benefit in an amount
equal to 60 percent of the member's monthly compensation that
he or she was receiving at the time he or she experienced a
total and permanent disability. Any member who experiences a
partial and permanent disability as a result of a service
connected disability shall be entitled to receive a monthly
disability benefit determined in accordance with subdivision
(3).
(c)(3) Partial disability benefits. In the event that a
member experiences a partial and permanent disability in
connection with either a non-service connected disability or a
service connected disability, the pension board and its
medical advisor shall determine the percentage of disability
suffered, and the member shall be entitled to the proportion
of the amount which would have been payable if the disability
were a total permanent disability.
(b) Conditions for eligibility.
(1) Disability shall be permanent. To be qualified to
receive a disability benefit, the disability, whether total or
partial, shall be permanent and shall be experienced on or
before a member's separation from employment with the county.
Disability benefits under this subsection shall only continue
for such time as a member continues to experience a permanent
disability, whether total or partial.
(2) Application and medical examination. Applications
for a disability benefit shall be made in writing on forms
provided by the pension board. All applicants for a disability
benefit shall submit to all medical evaluations and
examinations required by the pension board.
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examinations required by the pension board.
(3) Certification and reexamination. All members
receiving a disability benefit shall certify any information
required by the pension board and shall submit to
reexamination as required by the pension board.
(4) Member's duty to inform. Members receiving a
disability benefit shall notify the pension board in writing
within 30 days after accepting any full-time or part-time
employment, whether or not the employment is in the service of
the county.
(d)(5) Disqualification from receipt of a disability
benefits benefit. No disability retirement benefits benefit
shall be paid if the use of intoxicating liquor, narcotic
drugs, or willful misconduct of the disabled member caused, or
substantially contributed to, the disability or if the cause
of the disability was voluntarily and willfully caused by the
disabled member.
(e)(c) Timing of payment. Payment of disability
retirement benefits provided for by this section shall
commence when the member separates from employment with the
county and ceases to receive his or her compensation subject
to the employee contribution requirements set forth in Section
45-37-123.80 45-37-123.82 and once a determination of
disability has been made by the pension board.
(f) Reexamination of members receiving disability
benefits. Disability retirement benefits under this section
shall only continue for such time as the member continues to
experience a total disability, or a partial disability as
determined under subsection (c). The pension board may require
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determined under subsection (c). The pension board may require
any member receiving disability retirement benefits to submit
to a medical examination by the medical advisor. If the member
refuses to undergo the medical examination ordered by the
pension board, the member's disability retirement benefits may
be discontinued until the member consents to the examination.
If a member's disability retirement benefits are discontinued
based on the member's refusal to allow a reexamination by the
medical advisor, the member shall wholly lose such benefits
between the date of the member's refusal or failure to allow
the examination and the date of examination thereafter made.
Should the medical advisor report to the pension board that
the member receiving disability retirement benefits is able to
resume his or her usual occupation, such member shall be
restored to his or her former position if the member's
position is in the service of the county; otherwise, the
member shall be placed on the appropriate layoff list of the
county and shall not receive any additional payments for
disability on and after the date the member is reemployed by
the county or fails or refuses to accept such reemployment. If
the member is reemployed by the county, the member shall
resume employee contributions immediately upon reemployment in
accordance with Section 45-37-123.80. Provided however, the
pension board shall in no case make additional disability
retirement benefit payments to a member on a particular
disability claim beyond six months from the date the medical
advisor reports to the pension board that the member is able
to resume his or her usual occupation.
(g)(d) Ineligibility for joint survivorship pension
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(g)(d) Ineligibility for joint survivorship pension
option. A member electing a disability retirement benefit
shall not be entitled to elect a joint survivorship pension
provided under Section 45-37-123.101, though a member may
elect a 25-year early retirement benefit if such member has
met the eligibility requirements set forth in Section
45-37-123.100(b)(2).
(h)(e) Ineligibility for disability retirement benefit
if eligible for a superannuation retirement benefit. In the
event that a member is eligible for a superannuation
retirement benefit pursuant to Section 45-37-123.100(a), such
member shall not be eligible for a disability retirement
benefit.
(f) Reemployment with the county. No disability benefit
shall be paid to a disabled member who is reemployed by the
county. Upon reemployment by the county in a position subject
to mandatory membership as provided in Section
45-37-123.50(1), a reemployed member shall resume employee
contributions as provided in Section 45-37-123.82 as a new
member of the system with no paid membership time. Upon
reemployment by the county in a position subject to optional
membership, the member's membership in the system shall
terminate unless the option to become a member of the system
is exercised in accordance with Section 45-37-123.50(2). If
the option to become a member is exercised in accordance with
Section 45-37-123.50(2), the reemployed member shall resume
employee contributions as provided in Section 45-37-123.82 as
a new member of the system with no paid membership time.
(i)(g) Death. If a member dies while receiving payment
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(i)(g) Death. If a member dies while receiving payment
of a disability retirement benefit, the return of any
remaining portion of his or her employee contributions shall
be governed by Section 45-37-123.104(5)d 45-37-123.104(4)d . If
the member has received payments in an amount at least equal
to the amount of employee contributions he or she made to the
plan at the time of death, then no further payments shall be
made upon the member's death."
"§45-37-123.103
(a) Preretirement death benefits. A vested member's
designated beneficiary is entitled to a preretirement joint
survivorship pension, as described below.
(1) MARRIED MEMBER. If a married, active member dies,
then the designated beneficiary may elect, on a form provided
by the pension board, to be paid in one of the following
forms:
a. One Hundred Percent Preretirement Joint Survivorship
Pension. If such member was eligible for a deferred retirement
benefit at the time of the member's death, then the designated
beneficiary may elect to be paid in the form of a 100 percent
preretirement joint survivorship pension, which is a monthly
annuity paid during the designated beneficiary's lifetime
which is equal to the actuarial equivalent of the benefits
that would have been paid to the member if, instead of dying,
the member had terminated employment.
b. Refund. The designated beneficiary may elect a
refund of the member's employee contributions in accordance
with Section 45-37-123.104(4)b.
(2) UNMARRIED MEMBER. If an unmarried, active member
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(2) UNMARRIED MEMBER. If an unmarried, active member
dies, then one of the following shall apply:
a. Preretirement Joint Survivorship Pension. If a
member becomes eligible for a deferred retirement benefit,
then the member may elect, on a form provided by the pension
board, a 100 percent preretirement joint survivorship pension,
which is a monthly annuity paid during the designated
beneficiary's lifetime which is equal to the actuarial
equivalent of the benefits that would have been paid to the
member if, instead of dying, the member had terminated
employment. In the event the designated beneficiary dies
before the member or in the event the member marries, any
election of a preretirement joint survivorship pension
automatically shall be revoked and the cost, as described in
subdivision (2) of subsection (c), for the preretirement
coverage shall cease to accumulate on the date of death of the
designated beneficiary or the member's date of marriage, as
applicable.
b. Refund. Regardless of whether the member makes an
election for the designated beneficiary to be paid in the form
of a preretirement joint survivorship pension in accordance
with paragraph a., upon the member's death, the designated
beneficiary can elect to be paid a refund of the member's
employee contributions in accordance with Section
45-37-123.104(4)b. instead of being paid a preretirement joint
survivorship pension.
(b) Timing of payments. In the event of an election of
a preretirement joint survivorship pension, such payment shall
begin as soon as administratively feasible after the pension
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begin as soon as administratively feasible after the pension
board is notified of the death and the designated
beneficiary's completion of all forms required by the pension
board. In any event, calculation of the amount of the death
benefit shall be made as of the day after the date of death
and any payments that do not occur as of the month following
the date of death shall be included in future payments. In the
event that a refund is to be paid, such payment shall be made
as soon as administratively feasible following the member's
death.
(c) Cost of preretirement joint survivorship pension.
(1) MARRIED MEMBERS.
a. On and After October 1, 1999. On and after October
1, 1999, the 100 percent preretirement joint survivorship
pension shall be provided without additional charge with
respect to a member who is married at the time of his or her
death, and the cost of such benefit shall be borne by the
system; however, in the event that a member designates a
non-spousal beneficiary in accordance with subdivision (d)(1),
the cost of such benefit shall be borne by the member's
designated beneficiary.
b. Prior to October 1, 1999. Prior to October 1, 1999,
a 50 percent preretirement joint survivorship pension was
provided to a member who was married at the time of his or her
death, instead of 100 percent, and such members and their
designated beneficiaries had an option to elect higher
percentages under certain rules. Members and designated
beneficiaries who elected a higher than 50 percent
preretirement joint survivorship pension prior to October 1,
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preretirement joint survivorship pension prior to October 1,
1999, shall be charged for the increased percentage according
to actuarially-calculated costs, beginning with the date of
the election through September 30, 1999.
(2) UNMARRIED MEMBERS. To the extent that a member who
is not married at the time of his or her death previously
elected payment of a preretirement joint survivorship pension
for his or her designated beneficiary, the benefit otherwise
payable to the member shall be actuarially reduced to reflect
the election of a preretirement joint survivorship pension.
(d) Designated Beneficiaries.
(1) PRERETIREMENT JOINT SURVIVORSHIP PENSION FOR A
MARRIED MEMBER. Unless otherwise elected in the manner
prescribed below, the designated beneficiary of a
preretirement joint survivorship pension of a member that is
married at the time of his or her death shall be the member's
surviving spouse. Except, however, a member may designate a
beneficiary other than the spouse if:
a. The spouse has waived the right to be the member's
designated beneficiary; or
b. The member has been abandoned, within the meaning of
local law, and the member has a court order to such effect
that has been received and approved by the pension board ; or
c. The member has no spouse.
(2) ALL OTHER DEATH BENEFITS. Except as provided in
subdivision (1), a member, whether married or not, may
designate any beneficiary, and may do so without the need of
the consent of a spouse for a nonspousal beneficiary
designation.
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designation.
(3) FORMS. Designation of a beneficiary shall be made
on a form provided by the pension board. A member may at any
time revoke a designation of a beneficiary or change a
designated beneficiary by filing written notice of revocation
or change with the pension board on a form provided by the
pension board. However, in the case of a preretirement joint
survivorship pension, the member's spouse shall again consent
in writing to any change in designated beneficiary unless the
original consent acknowledged that the spouse had the right to
limit consent only to a specific designated beneficiary and
that the spouse voluntarily elected to relinquish such right.
For a spouse's waiver to be valid, the signature of the spouse
executing such form shall be notarized. This consent to waiver
shall become irrevocable upon the death of the member.
(4) FAILURE TO DESIGNATE A BENEFICIARY OR LACK OF
DESIGNATED BENEFICIARY. In the event no valid designation of
beneficiary exists, or if the designated beneficiary is not
alive at the time of the member's death, the death benefit
shall be payable to the member's spouse if there is a spouse,
and if there is no spouse, to the member's estate. If there is
no estate, the death benefit may be interpleaded into a court
of competent jurisdiction. Additionally, if the designated
beneficiary does not predecease the member, but dies prior to
the distribution of the death benefit, the death benefit shall
be paid to the designated beneficiary's estate. If there is no
estate, the death benefit may be interpleaded into a court of
competent jurisdiction.
(5) MORE THAN ONE DESIGNATED BENEFICIARY. In the event
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(5) MORE THAN ONE DESIGNATED BENEFICIARY. In the event
that more than one primary beneficiary is designated and a
designated primary beneficiary dies, absent any direction on
the beneficiary designation form to the contrary, the member's
benefit shall be divided equally among the remaining primary
designated beneficiaries.
(6) DESIGNATION OF NONPERSONS AS BENEFICIARIES. A
member may designate a nonperson as a beneficiary, for
example, a trust or estate. In such event, the pension board
may require additional documentation, for example, trust
documents.
(7) LAPSE OF BENEFICIARY DESIGNATION. Any beneficiary
designation made by a member for a preretirement joint
survivorship pension or refund shall automatically lapse upon
the member's election of a postretirement joint survivorship
pension; at that time, the member shall complete new forms, to
be provided by the pension board, to designate a beneficiary
of any postretirement joint survivorship pension.
(8) EFFECT OF MARRIAGE OR DIVORCE UPON A BENEFICIARY
DESIGNATION. Except in the case of a preretirement joint
survivorship pension, marriage or divorce does not change any
previous beneficiary designation. In the case of a
preretirement joint survivorship pension, if an unmarried
member gets married, such member's spouse shall automatically
become the member's designated beneficiary, which can
thereafter be waived in accordance with subdivision (1).
(9) DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY.
In the event a distribution is to be made to a minor or
incompetent designated beneficiary, then the pension board may
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incompetent designated beneficiary, then the pension board may
direct that such distribution be paid to the legal guardian,
or if none in the case of a minor designated beneficiary, to a
parent of such designated beneficiary or a responsible adult
with whom the designated beneficiary maintains residence, or
to the custodian for such designated beneficiary under the
Uniform Gift to Minors Act or Gift to Minors Act, if permitted
by the laws of the state in which the designated beneficiary
resides. Such a payment to the legal guardian, custodian, or
parent of a minor designated beneficiary shall fully discharge
the trustee, the county, the pension board, and the plan from
further liability on account thereof. The pension board may
require evidence of guardianship, existence of custodial
accounts, or any other documentation that is deemed prudent to
establish that payment shall be made properly.
(e) Other death benefits. Upon a member's retirement or
other termination of employment, any preretirement joint
survivorship pension benefit coverage ceases. Any other
benefits to be paid upon the death of a member or designated
beneficiary, such as refunds, are governed by Section
45-37-123.104(4).
(f) Proof of death and marriage. The pension board may
require proper proof of death and marriage and evidence of the
right of any person individual to receive the death benefit
payable as a result of the death of a member as the pension
board may deem desirable. Proof may include a certified
marriage certificate, certified death certificate of the
member, and affidavits of relatives, members, or other persons
individuals knowledgeable of the fact of marriage. If no
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individuals knowledgeable of the fact of marriage. If no
marriage certificate is available and for For common law
marriage marriages entered into before January 1, 2017 , proof
shall include evidence of the existence of the marriage as may
be required by law and also may require indemnification and
hold harmless agreements. The pension board may require that
unclear cases be adjudicated in an appropriate court
proceeding. An unmarried member may be required by the pension
board to sign an affidavit to certify that such member is not
married. The pension board's determination of death benefits
and the right of any person individual to receive payment
shall be conclusive."
"§45-37-123.104
The following provisions generally govern a member's
withdrawal and refund of employee contributions under the
plan. Any member who fails to make application for the amount
of his or her employee contributions pursuant to this section
within five years after his or her separation from the service
of the county, except as otherwise provided herein or
otherwise determined by the pension board, shall be deemed to
have forfeited and donated such employee contributions to the
trust fund pursuant to Section 45-37-123.83. The foregoing
five year rule only applies to a member; in the case of a
beneficiary, the pension board may only forfeit employee
contributions after it has exhausted reasonable efforts to
locate the beneficiary.
(1) WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS BY NONVESTED
MEMBERS NOT ENTITLED TO A DEFERRED RETIREMENT BENEFIT. In the
event that a nonvested member ceases to be an employee of the
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event that a nonvested member ceases to be an employee of the
county for reasons other than retirement, death, or disability
before he or she is eligible for a deferred retirement
benefit, such nonvested member, upon written or electronic
application therefore to the pension board, shall be paid the
full amount of his or her employee contributions, without
interest.
(2) WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS BY VESTED
MEMBERS ENTITLED TO A DEFERRED RETIREMENT BENEFIT.
a. General Rule. Subject to the limitations stated in
paragraph b., in the event that a vested member ceases to be
an employee of the county for reasons other than retirement,
death, or disability when he or she is eligible for a deferred
retirement benefit, but has not elected a deferred retirement
benefit, such member, upon written or electronic application
therefore to the pension board, shall be paid the full amount
of his or her employee contributions, with interest. The
provisions of Section 45-37-123.100(c)(1)b. shall govern the
withdrawal of employee contributions for any member who has
elected a deferred retirement benefit, but has not yet been
paid.
b. Rules and Regulations. The pension board shall
establish rules and regulations setting forth the amount of
interest payable to members under this subdivision. In
establishing such rules and regulations, the pension board
shall take into consideration the interest the system has
earned on the employee contributions paid into to the trust
fund system on account of the member withdrawing such employee
contributions. The pension board may amend such rules and
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contributions. The pension board may amend such rules and
regulations at any time in its sole discretion.
(3) PARTIAL REFUND OF EMPLOYEE CONTRIBUTIONS AND
CESSATION OF EMPLOYEE CONTRIBUTIONS AND EMPLOYER
CONTRIBUTIONS. When a member attains 30 years of paid
membership time, the member may elect to terminate his or her
employee contributions by filing with the pension board a
statement signed by the member stating that he or she elects
to terminate his or her employee contributions; in such case,
the employer contribution to the trust fund system on the
member's behalf shall cease. As soon as practicable after a
member files such statement, the pension board shall refund to
him or her all employee contributions, without interest, made
by him or her to the trust fund system subsequent to the date
on which the member accumulated sufficient service to entitle
him or her to the maximum benefit that can be provided under
the plan terminate his or her employee contributions ;
additionally the pension board shall refund to the county any
associated employer contributions, without interest.
(4) REFUNDS UPON DEATH OF A MEMBER.
a. Refund of Employee Contributions for Deceased,
Nonvested Active Members Not Entitled to Deferred Retirement
Benefits. If a nonvested active member dies, then an amount
equal to the total amount of such member's employee
contributions, without interest, may be refunded to the
member's designated beneficiary in lump sum form.
b. Refund of Employee Contributions for Deceased,
Vested Members Entitled to Deferred Retirement Benefits, but
No Payments Have Commenced.
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No Payments Have Commenced.
1. Eligibility. Unless an election has been made in
accordance with Section 45-37-123.103 to receive a
preretirement joint survivorship pension, if a vested member
dies, before payments have commenced, then an amount equal to
the total amount of such member's employee contributions, with
interest, shall be refunded to the member's designated
beneficiary in lump sum form. This rule shall apply regardless
of whether the member dies while active, or after a deferred
retirement election has been made, so long as payments have
not commenced.
2. Rules and regulations. The pension board is
authorized to adopt interest rules and regulations providing
for the pension board to pay to a designated beneficiary
interest at the rate prescribed in such rules on the member's
employee contributions that are to be refunded to the
designated beneficiary. The interest rules and regulations
established shall prescribe the terms and conditions on which
such interest shall be payable and may impose such limitations
on the payment of interest as the pension board deems
appropriate.
c. Refund of Employee Contributions for Deceased
Members Who Previously Elected a Postretirement Joint
Survivorship Pension.
1. Eligibility - Retired member. Subject to items (i)
to (iii), inclusive, of subparagraph 2., if a retired member
dies after a postretirement joint survivorship pension has
been elected, then a refund may be paid in lump sum form only
as set forth in subparagraph 2.
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as set forth in subparagraph 2.
2. Rules and regulations. The pension board is
authorized to adopt rules and regulations providing for the
pension board to refund a member's employee contributions
after such member dies with a postretirement joint
survivorship pension election in place and to pay interest on
any such refund, subject to the conditions and limitations
stated below:
(i) Such postretirement joint survivorship pension
election shall not be repealed or rescinded but shall be in
effect at the time of the refund, and the member shall have
enough service at the time of his or her death to be entitled
to a deferred retirement benefit if a refund were not made;
and
(ii) Both the member and the member's designated
primary beneficiary shall be deceased, thus, no refund is
payable in the event that only the member dies while receiving
payment of a postretirement joint survivorship pension; and
(iii) The member's employee contributions shall exceed
the sum of all monthly retirement pension benefits the plan
has paid to the member and/or or the member's designated
beneficiary, or both.
3. Amount of refund. If each of the requirements in
subparagraph 1. and subparagraph 2. are met, and the pension
board has adopted rules and regulations in accordance with
subparagraph 2., then the amount of the refund shall be equal
to the amount by which the member's employee contributions
exceed the sum of all monthly retirement pension benefits the
plan has paid to such member and/or such or the member's
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plan has paid to such member and/or such or the member's
designated beneficiary, or both, with interest as provided by
rules and regulations adopted by the pension board.
4. Payment made to designated contingent beneficiary. A
refund pursuant to this paragraph shall be paid to the
member's designated contingent beneficiary, or, to the
member's estate if the designated contingent beneficiary also
is deceased or there is no other properly designated
contingent beneficiary. If there is no estate, a refund
pursuant to this paragraph may be interpleaded into a court of
competent jurisdiction.
5. Death while active member. In the event that an
active member dies after a postretirement joint survivorship
pension has been elected, such election shall be deemed void
and the provisions of Section 45-37-123.103(a), preretirement
death benefits, shall apply.
d. Refund of Employee Contributions for Deceased
Members Who Were Receiving Superannuation, Early, Disability,
or Deferred Retirement Benefit Payments. In the event that a
member dies while receiving a superannuation retirement
benefit, an early retirement benefit, a disability retirement
benefit, or a deferred retirement benefit, then his or her
designated beneficiary shall be entitled to receive a refund
in an amount equal to the amount by which the member's
employee contributions exceed the sum of all monthly
retirement pension or disability benefits the plan has paid to
such member, with interest.
e. Proof of Death and Marriage. The pension board may
require proper proof of death or marriage in accordance with
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require proper proof of death or marriage in accordance with
Section 45-37-123.103(f).
(5) EMPLOYER CONTRIBUTIONS REMAIN IN TRUST FUND.
Employer contributions are never refunded to the member or the
member's designated beneficiary. All associated employer
contributions shall remain in the trust fund, except such
employer contributions that are returned to the county
pursuant to subdivision (7).
(6) CESSATION OF EMPLOYMENT. Unless otherwise
specifically provided in the plan, such as, pursuant to
subdivision (7), a member shall cease to be an employee of the
county in order to receive a refund of employee contributions.
(7) REFUNDS TO CORRECT ERRORS. The pension board, in
its sole discretion, may refund employee contributions and
associated employer contributions to the county to correct
various errors, such as, inclusion in the plan of an
ineligible individual or overpayment of employee
contributions, in accordance with Section 45-37-123.23(b).
(8) NO REFUNDS FOR QUALIFIED MILITARY SERVICE. There
shall be no refund of any contributions attributable to
amounts that the county restores pursuant to Section
45-37-123.80(b) due to a member's qualified military service.
(9) TIMING OF REFUND PAYMENTS. In the event that a
refund is to be paid, such payment shall be made as soon as
administratively practical following the date upon which
entitlement to the refund occurs.
(10) REFUND TO INCLUDE AMOUNTS TRANSFERRED FROM 457(b)
PLAN. In the event that any member transfers amounts from a §
457(b), Internal Revenue Code, plan in accordance with Section
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457(b), Internal Revenue Code, plan in accordance with Section
45-37-123.190(b), a refund shall include such transferred
amounts, with interest if the member is vested."
"§45-37-123.106
(a) General rules.
(1) EFFECTIVE DATE. Except as otherwise provided
herein, the provisions of this section shall apply for
purposes of determining required minimum distributions for
calendar years beginning on and after January 1, 1987.
(2) REQUIREMENTS OF TREASURY REGULATIONS INCORPORATED.
All distributions required under this section shall be
determined and made in accordance with § 401(a)(9), Internal
Revenue Code, including the incidental death benefit
requirement in § 401(a)(9)(G), and the regulations thereunder.
(3) PRECEDENCE. Subject to the joint and survivor
annuity requirements of the plan, the requirements of this
section shall take precedence over any inconsistent provisions
of the plan.
(b) Time and manner of distribution.
(1) REQUIRED BEGINNING DATE. The member's entire
interest shall be distributed, or begin to be distributed, to
the member no later than the member's required beginning date.
(2) DEATH OF MEMBER BEFORE DISTRIBUTIONS BEGIN. If the
member dies before distributions begin, the member's entire
interest shall be distributed, or begin to be distributed, no
later than as follows:
a. Life Expectancy Rule, Spouse is Designated
Beneficiary. At the election of the member or, if no election
is made by the member, then at the election of the member's
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is made by the member, then at the election of the member's
designated beneficiary, if the member's surviving spouse is
the member's sole designated beneficiary, then distributions
to the surviving spouse shall begin by December 31st of the
calendar year immediately following the calendar year in which
the member died, or by December 31st of the calendar year in
which the member would have attained age 72 73, for those
members who would have attained age 72 after December 31,
2022, and age 73 before January 1, 2033; or age 75, for those
members who would have attained age 73 after December 31,
2032, if later.
b. Life Expectancy Rule, Spouse is Not Designated
Beneficiary. At the election of the member or, if no election
is made by the member, then at the election of the member's
designated beneficiary, if the member's surviving spouse is
not the member's sole designated beneficiary, then
distributions to the designated beneficiary shall begin by
December 31st of the calendar year immediately following the
calendar year in which the member died.
c. Five-Year Rule.
1. At the election of the member or, if no election is
made by the member, then at the election of the member's
designated beneficiary, if the member dies before
distributions begin and there is a designated beneficiary,
then the member's entire interest shall be distributed to the
designated beneficiary by December 31st of the calendar year
containing the fifth anniversary of the member's death. If the
member's surviving spouse is the member's sole designated
beneficiary and the surviving spouse dies after the member but
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beneficiary and the surviving spouse dies after the member but
before distributions to either the member or the surviving
spouse begin, then this paragraph shall apply as if the
surviving spouse were the member. This paragraph shall apply
to all distributions.
2. Members or designated beneficiaries may elect on an
individual basis whether the 5-year five-year rule in this
paragraph or the life expectancy rule in paragraph a. or
paragraph b., and subsection (e) applies to distributions
after the death of a member who has a designated beneficiary.
The election shall be made no later than the earlier of
September 30th of the calendar year in which distribution
would be required to begin under paragraph a. or paragraph b.,
or by September 30th of the calendar year which contains the
fifth anniversary of the member's, or, if applicable,
surviving spouse's, death under this paragraph. If neither the
member nor designated beneficiary makes an election under this
subparagraph, distributions shall be made in accordance with
paragraph a. or paragraph b., and subsection (e).
d. No Designated Beneficiary, Five-Year Rule. If there
is no designated beneficiary as of September 30th of the year
following the year of the member's death, the member's entire
interest shall be distributed by December 31st of the calendar
year containing the fifth anniversary of the member's death.
e. Surviving Spouse Dies Before Distributions Begin.
1. If the member's surviving spouse is the member's
sole designated beneficiary and the surviving spouse dies
after the member but before distributions to the surviving
spouse begin, then this subsection, other than paragraph a.,
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spouse begin, then this subsection, other than paragraph a.,
shall apply as if the surviving spouse were the member.
2. For purposes of this subsection and subsection (e),
distributions are considered to begin on the member's required
beginning date, or, if this paragraph applies, the date
distributions are required to begin to the surviving spouse
under paragraph a. If annuity payments irrevocably commence to
the member before the member's required beginning date, or to
the member's surviving spouse before the date distributions
are required to begin to the surviving spouse under paragraph
a., the date distributions are considered to begin is the date
distributions actually commence.
(3) FORM OF DISTRIBUTION. Unless the member's interest
is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the required
beginning date, as of the first distribution calendar year
distributions shall be made in accordance with subsections
(c), (d), and (e). If the member's interest is distributed in
the form of an annuity purchased from an insurance company,
distributions thereunder shall be made in accordance with the
requirements of § 401(a)(9), Internal Revenue Code, and the
regulations thereunder. Any part of the member's interest
which is in the form of an individual account described in §
414(k), Internal Revenue Code, shall be distributed in a
manner satisfying the requirements of § 401(a)(9) and the
regulations thereunder applicable to individual accounts.
(c) Determination of amount to be distributed each
year.
(1) GENERAL ANNUITY REQUIREMENTS. A member who is
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(1) GENERAL ANNUITY REQUIREMENTS. A member who is
required to begin payments as a result of attaining his or her
required beginning date, whose interest has not been
distributed in the form of an annuity purchased from an
insurance company or in a single sum before such date, may
receive payments in the form of annuity payments under the
plan. Payments under such annuity shall satisfy the following
requirements:
a. The annuity distributions shall be paid in periodic
payments made at intervals not longer than one year.
b. The distribution period shall be over a life, or
lives, or over a period certain not longer than the period
described in subsection (d) or subsection (e).
c. Once payments have begun over a period certain, the
period certain shall not be changed even if the period certain
is shorter than the maximum permitted.
d. Payments shall either be nonincreasing or increase
only to the extent permitted by one of the following
conditions:
1. By an annual percentage increase that does not
exceed the annual percentage increase in a cost-of-living
index that for a 12-month period ending in the year during
which the increase occurs or the prior year.
2. By a percentage increase that occurs at specified
times, such as, at specified ages, and does not exceed the
cumulative total of annual percentage increases in an eligible
cost-of-living index since the annuity starting date, or if
later, the date of the most recent percentage increase. In
cases providing a cumulative increase, an actuarial increase
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cases providing a cumulative increase, an actuarial increase
may not be provided to reflect the fact that increases were
not provided in the interim years.
3. To the extent of the reduction in the amount of the
member's payments to provide for a survivor benefit upon
death, but only if the beneficiary whose life was being used
to determine the distribution period described in subsection
(d) dies or is no longer the member's designated beneficiary
pursuant to a qualified domestic relations order within the
meaning of § 414(p), Internal Revenue Code.
4. To allow a designated beneficiary to convert the
survivor portion of a joint and survivor annuity into a single
sum distribution upon the member's death.
5. To pay increased benefits that result from a plan
amendment or other increase in the member's accrued benefit
under the plan.
6. By a constant percentage, applied not less
frequently than annually, at a rate that is less than five
percent per year.
7. To provide a final payment upon the death of the
member that does not exceed the excess of the actuarial
present value of the member's accrued benefit, within the
meaning of § 411(a)(7), Internal Revenue Code, calculated as
of the annuity starting date using the applicable interest
rate and the applicable mortality table under § 417(e),
Internal Revenue Code, or, if greater, the total amount of
employee contributions, over the total of payments before the
death of the member.
8. As a result of dividend or other payments that
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8. As a result of dividend or other payments that
result from actuarial gains, provided:
(i) Actuarial gain is measured not less frequently than
annually;
(ii) The resulting dividend or other payments are
either paid no later than the year following the year for
which the actuarial experience is measured or paid in the same
form as the payment of the annuity over the remaining period
of the annuity, beginning no later than the year following the
year for which the actuarial experience is measured;
(iii) The actuarial gain taken into account is limited
to actuarial gain from investment experience;
(iv) The assumed interest rate used to calculate such
actuarial gains is not less than three percent; and
(v) The annuity payments are not also being increased
by a constant percentage as described in subparagraph 6.
(2) AMOUNT REQUIRED TO BE DISTRIBUTED BY REQUIRED
BEGINNING DATE.
a. In the case of a member whose interest in the plan
is being distributed as an annuity pursuant to subdivision
(1), the amount that shall be distributed on or before the
member's required beginning date, or, if the member dies
before distributions begin, the date distributions are
required to begin under paragraph a. or b. of subdivision (2)
of subsection (b), is the payment that is required for one
payment interval.
The second payment need not be made until the end of
the next payment interval even if that payment interval ends
in the next calendar year.
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in the next calendar year.
Payment intervals are the periods for which payments
are received, such as, bimonthly, monthly, semi-annually, or
annually. All of the member's benefit accruals as of the last
day of the first distribution calendar year shall be included
in the calculation of the amount of the annuity payments for
payment intervals ending on or after the member's required
beginning date.
b. In the case of a single sum distribution of a
member's entire accrued benefit during a distribution calendar
year, the amount that is the required minimum distribution for
the distribution calendar year, and thus not eligible for
rollover under § 402(c), Internal Revenue Code, is determined
under this paragraph. The portion of the single sum
distribution that is a required minimum distribution is
determined by treating the single sum distribution as a
distribution from an individual account plan and treating the
amount of the single sum distribution as the member's account
balance as of the end of the relevant valuation calendar year.
If the single sum distribution is being made in the calendar
year containing the required beginning date and the required
minimum distribution for the member's first distribution
calendar year has not been distributed, the portion of the
single sum distribution that represents the required minimum
distribution for the member's first and second distribution
calendar year is not eligible for rollover.
(3) ADDITIONAL ACCRUALS AFTER FIRST DISTRIBUTION
CALENDAR YEAR. Any additional benefits accruing to the member
in a calendar year after the first distribution calendar year
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in a calendar year after the first distribution calendar year
shall be distributed beginning with the first payment interval
ending in the calendar year immediately following the calendar
year in which such amount accrues. Notwithstanding the
preceding, the plan shall not fail to satisfy the requirements
of this subdivision and § 401(a)(9), Internal Revenue Code,
merely because there is an administrative delay in the
commencement of the distribution of the additional benefits
accrued in a calendar year, provided that the actual payment
of such amount commences as soon as practicable. However,
payment shall commence no later than the end of the first
calendar year following the calendar year in which the
additional benefit accrues, and the total amount paid during
such first calendar year shall be no less than the total
amount that was required to be paid during that year under
this subdivision.
(4) DEATH OF MEMBER AFTER DISTRIBUTIONS BEGIN. If a
member dies after distribution of the member's interest begins
in the form of an annuity meeting the requirements of this
section, then the remaining portion of the member's interest
shall continue to be distributed over the remaining period
over which distributions commenced.
(d) Requirements for annuity distributions that
commence during member's lifetime.
(1) JOINT LIFE ANNUITIES WHERE THE DESIGNATED
BENEFICIARY IS THE MEMBER'S SPOUSE. If distributions commence
under a distribution option that is in the form of a joint and
survivor annuity for the joint lives of the member and the
member's spouse, the minimum distribution incidental benefit
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member's spouse, the minimum distribution incidental benefit
requirement shall not be satisfied as of the date
distributions commence unless, under the distribution option,
the periodic annuity payment payable to the survivor does not
at any time on and after the member's required beginning date
exceed the annuity payable to the member. In the case of an
annuity that provides for increasing payments, the requirement
of this subdivision shall not be violated merely because
benefit payments to the designated beneficiary increase,
provided the increase is determined in the same manner for the
member and the designated beneficiary. If the form of
distribution combines a joint and survivor annuity for the
joint lives of the member and the member's spouse and a period
certain annuity, the preceding requirements shall apply to
annuity payments to be made to the designated beneficiary
after the expiration of the period certain.
(2) JOINT LIFE ANNUITIES WHERE THE DESIGNATED
BENEFICIARY IS NOT THE MEMBER'S SPOUSE. If the member's
interest is being distributed in the form of a joint and
survivor annuity for the joint lives of the member and a
designated beneficiary other than the member's spouse, the
minimum distribution incidental benefit requirement shall not
be satisfied as of the date distributions commence unless
under the distribution option, the annuity payments to be made
on and after the member's required beginning date shall
satisfy the conditions of this subdivision. The periodic
annuity payment payable to the survivor shall not at any time
on and after the member's required beginning date exceed the
applicable percentage of the annuity payment payable to the
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applicable percentage of the annuity payment payable to the
member using the table set forth in Treasury Regulation §
1.401(a)(9)-6, Q & A-2(c)(2). The applicable percentage is
based on the adjusted member/ designated beneficiary age
difference. The adjusted member/ designated beneficiary age
difference is determined by first calculating the excess of
the age of the member over the age of the designated
beneficiary based on their ages on their birthdays in a
calendar year. If the member is younger than age 70, the age
difference determined in the previous sentence is reduced by
the number of years that the member is younger than age 70 on
the member's birthday in the calendar year that contains the
annuity starting date. In the case of an annuity that provides
for increasing payments, the requirement of this subdivision
shall not be violated merely because benefit payments to the
designated beneficiary increase, provided the increase is
determined in the same manner for the member and the
designated beneficiary. If the form of distribution combines a
joint and survivor annuity for the joint lives of the member
and a nonspousenon-spouse designated beneficiary and a period
certain annuity, the preceding requirements shall apply to
annuity payments to be made to the designated beneficiary
after the expiration of the period certain.
(3) PERIOD CERTAIN ANNUITIES. Unless the member's
spouse is the sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the
period certain for an annuity distribution commencing during
the member's lifetime may not exceed the applicable
distribution period for the member under the Uniform Lifetime
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distribution period for the member under the Uniform Lifetime
Table set forth in Treasury Regulation § 1.401(a)(9)-9 for the
calendar year that contains the annuity starting date. If the
annuity starting date precedes the year in which the member
reaches age 70, the applicable distribution period for the
member is the distribution period for age 70 under the Uniform
Lifetime Table set forth in Treasury Regulation §
1.401(a)(9)-9 plus the excess of 70 over the age of the member
as of the member's birthday in the year that contains the
annuity starting date. If the member's spouse is the member's
sole designated beneficiary and the form of distribution is a
period certain and no life annuity, the period certain may not
exceed the longer of the member's applicable distribution
period, as determined under this subdivision, or the joint
life and last survivor expectancy of the member and the
member's spouse as determined under the Joint and Last
Survivor Table set forth in Treasury Regulation §
1.401(a)(9)-9, using the member's and spouse's attained ages
as of the member's and spouse's birthdays in the calendar year
that contains the annuity starting date.
(e) Requirements for minimum distributions where member
dies before date distributions begin.
(1) MEMBER SURVIVED BY DESIGNATED BENEFICIARY AND LIFE
EXPECTANCY RULE.
At the election of the member or, if no election is
made by the member, then at the election of the member's
designated beneficiary, if the member dies before the date
distribution of his or her interest begins and there is a
designated beneficiary, the member's entire interest shall be
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designated beneficiary, the member's entire interest shall be
distributed, beginning no later than the time described in
paragraph a. or b. of subdivision (2) of subsection (b), over
the life of the designated beneficiary or over a period
certain not exceeding:
a. Unless the annuity starting date is before the first
distribution calendar year, the life expectancy of the
designated beneficiary determined using the designated
beneficiary's age as of the designated beneficiary's birthday
in the calendar year immediately following the calendar year
of the member's death; or
b. If the annuity starting date is before the first
distribution calendar year, the life expectancy of the
designated beneficiary determined using the designated
beneficiary's age as of the designated beneficiary's birthday
in the calendar year that contains the annuity starting date.
(2) MEMBER SURVIVED BY DESIGNATED BENEFICIARY AND
FIVE-YEAR RULE. At the election of the member or, if no
election is made by the member, then at the election of the
member's designated beneficiary, if the member dies before
distributions begin and there is a designated beneficiary,
then the member's entire interest shall be distributed to the
designated beneficiary by December 31st of the calendar year
containing the fifth anniversary of the member's death. This
subdivision shall apply to all distributions.
(3) NO DESIGNATED BENEFICIARY. If the member dies
before the date distributions begin and there is no designated
beneficiary as of September 30th of the year following the
year of the member's death, distribution of the member's
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year of the member's death, distribution of the member's
entire interest shall be completed by December 31st of the
calendar year containing the fifth anniversary of the member's
death.
(4) DEATH OF SURVIVING SPOUSE BEFORE DISTRIBUTIONS TO
SURVIVING SPOUSE BEGIN. If the member dies before the date
distribution of his or her interest begins, the member's
surviving spouse is the member's sole designated beneficiary,
and the surviving spouse dies before distributions to the
surviving spouse begin, this subsection shall apply as if the
surviving spouse were the member, except that the time by
which distributions shall begin shall be determined without
regard to paragraph a. of subdivision (2) of subsection (b).
(f) Definitions.
(1) ACTUARIAL GAIN. The difference between an amount
determined using the actuarial assumptions, such as,
investment return, mortality, expense, and other similar
assumptions, used to calculate the initial payments before
adjustment for any increases and the amount determined under
the actual experience with respect to those factors. Actuarial
gain also includes differences between the amount determined
using actuarial assumptions when an annuity was purchased or
commenced and such amount determined using actuarial
assumptions used in calculating payments at the time the
actuarial gain is determined.
(2) DESIGNATED BENEFICIARY. The individual who is
designated as the beneficiary under Section 45-37-123.103 and
is the designated beneficiary under § 401(a)(9), Internal
Revenue Code, and Treasury Regulation § 1.401(a)(9)-1, Q & A-4
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Revenue Code, and Treasury Regulation § 1.401(a)(9)-1, Q & A-4
§ 1.401(a)(9)-4 and is designated as the beneficiary under
Section 45-37-123.103 to the extent not otherwise inconsistent
with the Internal Revenue Code or regulations thereunder .
(3) DISTRIBUTION CALENDAR YEAR. A calendar year for
which a minimum distribution is required. For distributions
beginning before the member's death, the first distribution
calendar year is the calendar year immediately preceding the
calendar year which contains the member's required beginning
date. For distributions beginning after the member's death,
the first distribution calendar year is the calendar year in
which distributions are required to begin pursuant to
subsection (b).
(4) ELIGIBLE COST-OF-LIVING INDEX. An index described
below:
a. A consumer price index that is based on prices of
all items, or all items excluding food and energy, and issued
by the Bureau of Labor Statistics, including an index for a
specific population, such as urban consumers or urban wage
earners and clerical workers, and an index for a geographic
area or areas, such as a given metropolitan area or state; or
b. A percentage adjustment based on a cost-of-living
index described in paragraph a., or a fixed percentage, if
less. In any year when the cost-of-living index is lower than
the fixed percentage, the fixed percentage may be treated as
an increase in an eligible cost-of-living index, provided it
does not exceed the sum of:
1. The cost-of-living index for that year; and
2. The accumulated excess of the annual cost-of-living
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2. The accumulated excess of the annual cost-of-living
index from each prior year over the fixed annual percentage
used in that year, reduced by any amount previously utilized
under this paragraph.
c. A percentage adjustment based on the increase in
compensation for the position held by the member at the time
of retirement, and provided under the terms of the plan.
(5) LIFE EXPECTANCY. The life expectancy as computed by
use of the Single Life Table in Treasury Regulation §
1.401(a)(9)-9.
(6) REQUIRED BEGINNING DATE. The April 1st of the
calendar year following the later of:
a. The calendar year in which the member attains age 72
73, for those members who attain age 72 after December 31,
2022, and age 73 before January 1, 2033; or attains age 75,
for those members who attain age 73 after December 31, 2032 ;
or
b. The calendar year in which the member retires."
"§45-37-123.108
Except as otherwise specifically provided in this
section, this section shall be effective as of January 1,
1993.
(1) ROLLOVERS GENERALLY.
a. Notwithstanding any provision of the plan to the
contrary that would otherwise limit a distributee's election
under this section, a distributee, at the time and in the
manner prescribed by the pension board, may elect to have any
portion of an eligible rollover distribution that is equal to
at least two hundred dollars ($200) paid directly to an
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at least two hundred dollars ($200) paid directly to an
eligible retirement plan specified by the distributee in a
direct rollover.
b. For purposes of this subdivision, the following
definitions shall apply:
1.(i) An eligible rollover distribution is any
distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover
distribution does not include: Any distribution that is one of
a series of substantially equal periodic payments, not less
frequently than annually, made for the life, or life
expectancy, of the distributee or the joint lives, or joint
life expectancies, of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years
or more; any distribution to the extent such distribution is
required under § 401(a)(9), Internal Revenue Code; the portion
of any other distribution that is not includible in gross
income, determined without regard to the exclusion for net
unrealized appreciation with respect to employer securities;
any hardship distribution; and any other distribution that is
reasonably expected to total less than two hundred dollars
($200) during a year.
(ii) Notwithstanding the above, with respect to
distributions made after December 31, 2001, a portion of a
distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of aftertax
after-tax employee contributions which are not includible in
gross income. However, such portion may be transferred only to
an individual retirement account or annuity described in §
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an individual retirement account or annuity described in §
408(a) or (b), Internal Revenue Code, or to a qualified trust
described in § 401(a) , Internal Revenue Code, or annuity
contract described in § 403(a), Internal Revenue Code, that
agrees to separately account for amounts so transferred,
including separately accounting for the portion of such
distribution which is includible in gross income and the
portion of such distribution which is not so includible.
2. With respect to distributions made after December
31, 2001, an eligible retirement plan is an individual
retirement account described in § 408(a), Internal Revenue
Code, an individual retirement annuity described in § 408(b),
Internal Revenue Code, other than an endowment contract, a
qualified trust described in § 401(a), Internal Revenue Code,
which is exempt from tax under § 501(a), Internal Revenue
Code, that accepts the distributee's eligible rollover
distribution, an annuity plan described in § 403(a), Internal
Revenue Code, an eligible deferred compensation plan described
in § 457(b), Internal Revenue Code, which is maintained by an
eligible employer described in § 457(e)(1)(A), Internal
Revenue Code, and an annuity contract described in § 403(b),
Internal Revenue Code, that accepts the distributee's eligible
rollover distribution.
3. 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 § 414(p),
Internal Revenue Code, are distributees with regard to the
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Internal Revenue Code, are distributees with regard to the
interest of the spouse or former spouse.
4. A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
(2) DIRECT ROLLOVERS BY NON-SPOUSE DESIGNATED
BENEFICIARIES.
a. Notwithstanding the direct rollover provisions in
subdivision (1), for distributions after December 31, 2009, in
accordance with § 402(c)(11), Internal Revenue Code, a
non-spouse beneficiary who is a designated beneficiary, as
defined in § 401(a)(9)(E), Internal Revenue Code, and the
regulations thereunder, by means of a direct
trustee-to-trustee transfer, may roll over all or any portion
of an eligible rollover distribution, as defined in §
401(a)(31), Internal Revenue Code, to an individual retirement
plan the designated beneficiary establishes for purposes of
receiving the distribution. If a non-spouse designated
beneficiary receives a distribution from the plan, the
distribution is not eligible for a 60-day, non-direct
rollover.
b. If the member's named designated beneficiary is a
trust, the plan may make a direct trustee-to-trustee transfer
to an individual retirement plan on behalf of the trust,
provided the trust satisfies the requirements to be a
designated beneficiary within the meaning of § 401(a)(9)(E),
Internal Revenue Code.
c. A non-spouse designated beneficiary may not roll
over an amount which is a required minimum distribution, as
determined under applicable regulations and other Internal
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Page 100
determined under applicable regulations and other Internal
Revenue Service guidance. If the member dies before the
member's required beginning date and the non-spouse designated
beneficiary rolls over to an individual retirement plan the
maximum amount eligible for rollover, the non-spouse
designated beneficiary may elect to use either the five-year
rule or the life expectancy rule, pursuant to Treasury
Regulation § 1.401(a)(9)-3, A-4(c), in determining the
required minimum distributions from the individual retirement
plan that receives the non-spouse designated beneficiary's
distribution.
(3) ROLLOVER TO ROTH IRA. For distributions made after
December 31, 2007, in accordance with § 408A, Internal Revenue
Code, a member may elect to roll over directly an eligible
rollover distribution to a Roth IRA, as defined in § 408A(b),
Internal Revenue Code."
"§45-37-123.132
(a) Adjustment if fewer than 10 years. Effective for
limitation years ending after December 31, 2001, if a member
has fewer than 10 years of participation in the plan, then the
defined benefit dollar limitation of Section 45-37-123.131(a)
shall be multiplied by a fraction, the numerator of which is
the number of years, or part thereof, of participation in the
plan, and the denominator of which is 10. However, in no event
shall such fraction be less than one-tenth. Notwithstanding
the foregoing, no adjustment shall be made to the defined
benefit dollar limitation for a distribution on account of a
member becoming disabled by reason of personal injuries or
sickness, or as a result of the death of a member. For
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Page 101
sickness, or as a result of the death of a member. For
purposes of this subsection, a year of participation means
each accrual computation period for which the following
conditions are met: The member is credited with a period of
service for benefit accrual purposes, required under the terms
of the plan in order to accrue a benefit for the accrual
computation period, and the member is included as a member
under the eligibility provisions of the plan for at least one
day of the accrual computation period. If these two conditions
are met, the portion of a year of participation credited to
the member shall equal the amount of benefit accrual service
credited to the member for such accrual computation period. A
member who is permanently and totally disabled within the
meaning of § 415(c)(3)(C)(i), Internal Revenue Code, for an
accrual computation period shall receive a year of
participation with respect to the period. In no event shall
more than one year of participation be credited for any
12-month period.
(b) Adjustment of defined benefit dollar limitation for
commencement before age 62. Effective for benefits commencing
in limitation years ending after December 31, 2001, the
defined benefit dollar limitation shall be adjusted if the
annuity starting date of the member’s benefit is before age
62.
(1) LIMITATION YEARS BEGINNING BEFORE JULY 1, 2007. If
the annuity starting date for the member’s benefit is prior to
age 62 and occurs in a limitation year beginning before July
1, 2007, the defined benefit dollar limitation for the
member’s annuity starting date is the annual amount of a
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Page 102
member’s annuity starting date is the annual amount of a
benefit payable in the form of a straight life annuity
commencing at the member’s annuity starting date that is the
actuarial equivalent of the defined benefit dollar limitation
with actuarial equivalence computed using whichever of the
following produces the smaller annual amount: The applicable
interest rate and applicable mortality table, or other tabular
factor, as defined in § 417(e)(3), Internal Revenue Code; or a
five percent interest rate assumption and the applicable
mortality table as defined in § 417(e)(3), Internal Revenue
Code.
(2) LIMITATION YEARS BEGINNING ON OR AFTER JULY 1,
2007.
a. Plan Does Not Have Immediately Commencing Straight
Life Annuity Payable at Both Age 62 and the Age of Benefit
Commencement. If the annuity starting date for the member’s
benefit is prior to age 62 and occurs in a limitation year
beginning on or after July 1, 2007, and the plan does not have
an immediately commencing straight life annuity payable at
both age 62 and the age of benefit commencement, the defined
benefit dollar limitation for the member’s annuity starting
date is the annual amount of a benefit payable in the form of
a straight life annuity commencing at the member’s annuity
starting date that is the actuarial equivalent of the defined
benefit dollar limitation with actuarial equivalence computed
using a five percent interest rate assumption and the
applicable mortality table under Treasury Regulation §
1.417(e)-1(d)(2), or the applicable mortality table as
required by law, that is effective for that annuity starting
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Page 103
required by law, that is effective for that annuity starting
date, and expressing the member’s age based on completed
calendar months as of the annuity starting date.
b. Plan Has Immediately Commencing Straight Life
Annuity Payable at Both Age 62 and the Age of Benefit
Commencement. If the annuity starting date for the member's
benefit is prior to age 62 and occurs in a limitation year
beginning on or after July 1, 2007, and the plan has an
immediately commencing straight life annuity payable at both
age 62 and the age of benefit commencement, the defined
benefit dollar limitation for the member's annuity starting
date is the lesser of the limitation determined under
paragraph a. and the defined benefit dollar limitation
multiplied by the ratio of the annual amount of the
immediately commencing straight life annuity under the plan at
the member's annuity starting date to the annual amount of the
immediately commencing straight life annuity under the plan at
age 62, both determined without applying the limitations of
this subpart.
(3) MORTALITY ADJUSTMENTS. Notwithstanding the other
requirements of this subsection, no adjustment shall be made
to the defined benefit dollar limitation to reflect the
probability of a member's death between the annuity starting
date and age 62 if benefits are not forfeited upon the death
of the member prior to the annuity starting date. To the
extent benefits are forfeited upon death before the annuity
starting date, such an adjustment shall be made. For this
purpose, no forfeiture shall be treated as occurring upon the
member's death if the plan does not charge members for
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Page 104
member's death if the plan does not charge members for
providing a qualified preretirement survivor annuity, as
defined in § 417(c), Internal Revenue Code, upon the member's
death.
(4) EXCEPTION FOR CERTAIN MEMBERS TO THE ADJUSTMENT OF
DEFINED BENEFIT DOLLAR LIMITATION FOR COMMENCEMENT BEFORE AGE
62.
a. Qualified Participants. Pursuant to § 415(b)(2)(G)
and (H), Internal Revenue Code, no age adjustment is made to
the defined benefit dollar limitation for commencement before
age 62 for any qualified participant. For this purpose, a
qualified participant is a participant in a defined benefit
plan that is maintained by a state or any political
subdivision of a state with respect to whom the service taken
into account in determining the amount of the benefit under
the defined benefit plan includes at least 15 years of service
of the participant as a full-time employee of any police
department or fire department that is organized and operated
by the state or political subdivision maintaining such defined
benefit plan to provide police protection, firefighting
services, or emergency medical services for any area within
the jurisdiction of such state or political subdivision, or as
a member of the Armed Forces of the United States.
b. Survivor and Disability Benefits. Pursuant to §
415(b)(2)(I), Internal Revenue Code, no age adjustment is made
to the defined benefit dollar limitation for commencement
before age 62 for a distribution from the plan on account of a
member becoming disabled by reason of personal injuries or
sickness, or as a result of the death of a member.
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2899 HB190 Enrolled
Page 105
sickness, or as a result of the death of a member.
(c) Actuarial equivalence of forms of benefit other
than a straight life annuity. Effective for distributions in
plan years beginning after December 31, 2003, the
determination of actuarial equivalence of forms of benefit
other than a straight life annuity shall be made in accordance
with subdivision (1) or subdivision (2).
(1) BENEFIT FORMS NOT SUBJECT TO § 417(e)(3), INTERNAL
REVENUE CODE. The straight life annuity that is actuarially
equivalent to the member's form of benefit shall be determined
under this subdivision if the form of the member's benefit is
either a nondecreasing annuity, other than a straight life
annuity, payable for a period of not less than the life of the
member, or, in the case of a qualified preretirement survivor
annuity, the life of the surviving spouse, or an annuity that
decreases during the life of the member merely because of the
death of the survivor annuitant, but only if the reduction is
not below 50 percent of the benefit payable before the death
of the survivor annuitant, or the cessation or reduction of
Social Security supplements or qualified disability payments,
as defined in § 401(a)(11), Internal Revenue Code.
a. Limitation Years Beginning Before July 1, 2007. For
limitation years beginning before July 1, 2007, the
actuarially equivalent straight life annuity is equal to the
annual amount of the straight life annuity commencing at the
same annuity starting date that has the same actuarial present
value as the member's form of benefit computed using whichever
of the following produces the greater annual amount:
1. The applicable interest rate and applicable
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Page 106
1. The applicable interest rate and applicable
mortality table, or other tabular factor, as defined in §
417(e)(3), Internal Revenue Code, for adjusting benefits in
the same form; or
2. Five percent interest rate assumption and the
applicable mortality table as defined in § 417(e)(3), Internal
Revenue Code.
b. Limitation Years Beginning On or After July 1, 2007.
For limitation years beginning on or after July 1, 2007, the
actuarially equivalent straight life annuity is equal to the
greater of:
1. The annual amount of the straight life annuity, if
any, payable to the member under the plan commencing at the
same annuity starting date as the member's form of benefit; or
2. The annual amount of the straight life annuity
commencing at the same annuity starting date that has the same
actuarial present value as the member's form of benefit,
computed using a five percent interest rate assumption and the
applicable mortality table as described in Treasury Regulation
§ 1.417(e)-1(d)(2), or the applicable mortality table as
required by law, for that annuity starting date.
(2) BENEFIT FORMS SUBJECT TO § 417(e)(3) INTERNAL
REVENUE CODE. The straight life annuity that is actuarially
equivalent to the member’s form of benefit shall be determined
under this subdivision if the form of the member’s benefit is
other than a benefit form described in subdivision (1). In
this case, the actuarially equivalent straight life annuity
shall be determined as follows:
a. Annuity Starting Date in Plan Years Beginning After
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Page 107
a. Annuity Starting Date in Plan Years Beginning After
2005. If the annuity starting date of the member’s form of
benefit is in a plan year beginning after 2005, the
actuarially equivalent straight life annuity is equal to the
greatest of:
1. The annual amount of the straight life annuity
commencing at the same annuity starting date that has the same
actuarial present value as the member’s form of benefit,
computed using the assumptions, as defined in subdivision (3)
of Section 45-37-123.01;
2. The annual amount of the straight life annuity
commencing at the same annuity starting date that has the same
actuarial present value as the member’s form of benefit,
computed using a five and one-half percent interest rate
assumption and the applicable mortality table for the
distribution under Treasury Regulation § 1.417(e)-1(d)(2), or
the applicable mortality table as required by law; or
3. The annual amount of the straight life annuity
commencing at the same annuity starting date that has the same
actuarial present value as the member’s form of benefit,
computed for the distribution under Treasury Regulation §
1.417(e)-1(d)(3), or the applicable interest rate as required
by law, and the applicable mortality table for the
distribution under Treasury Regulation § 1.417(e)-1(d)(2), or
the applicable mortality table as required by law, divided by
1.05.
b. Annuity Starting Date in Plan Years Beginning in
2004 or 2005. If the annuity starting date of the member’s
form of benefit is in a plan year beginning in 2004 or 2005,
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Page 108
form of benefit is in a plan year beginning in 2004 or 2005,
the actuarially equivalent straight life annuity is equal to
the annual amount of the straight life annuity commencing at
the same annuity starting date that has the same actuarial
present value as the member’s form of benefit, computed using
whichever of the following produces the greater annual amount:
1. The applicable interest rate and applicable
mortality table, or other tabular factor, as defined in §
417(e)(3), Internal Revenue Code, for adjusting benefits in
the same form; or
2. A five and one-half percent interest rate assumption
and the applicable mortality table for the distribution under
Treasury Regulation § 1.417(e)-1(d)(2), or the applicable
mortality table as required by law.
(d) For purposes of Section 45-37-123.130 and
subsection (b), no adjustments under § 415(d), Internal
Revenue Code, shall be taken into account before the
limitation year for which such adjustment first takes effect.
(e) For purposes of Section 45-37-123.130, no actuarial
adjustment to the benefit is required for the value of a
qualified joint and survivor annuity, ancillary benefits that
are not directly related to retirement benefits, such as a
qualified disability benefit, preretirement death benefits,
and postretirement medical benefits, as set forth in § 415(b),
Internal Revenue Code, and Treasury Regulation §
1.415(b)-1(c)(4)(1)(B), and the value of postretirement
cost-of-living increases made in accordance with § 415(d),
Internal Revenue Code, and Treasury Regulation §
1.415–3(c)(2)(iii). The annual benefit does not include any
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Page 109
1.415–3(c)(2)(iii). The annual benefit does not include any
benefits attributable to employee contributions or rollover
contributions, or the assets transferred from a qualified plan
that was not maintained by the county."
"§45-37-123.150
(a) The pension board shall have the right at any time
to amend the plan, subject to the limitations of this section.
Any amendment shall be consistent with the act, any other
legislation relating to the system, or consistent with other
authority granted to the pension board. Additionally, in the
event that the Legislature amends the act or makes other
statutory changes that impact the terms of the plan, the
pension board shall, subject to applicable law, may cause the
plan to be amended as necessary to reflect such the
legislation. The pension board, and each of its individual
members, when acting in its or their official capacity, shall
be immune from civil liability against the claims of any
individual, member, or other entity of any nature whatsoever
arising out of the pension board's or its members'
administration of the plan or related to its decisions or
actions, which decisions or actions were made in good faith,
without malice, and predicated upon information that was then
available to the pension board.
(b) As determined by the pension board or by
legislative act, any change in the pension rate may apply to
all pensions payable under the plan, including pensions
granted prior to the effective date of the change in the
pension rate. This subsection shall apply whether such change
results in the pension benefit being increased or decreased.
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3039 HB190 Enrolled
Page 110
results in the pension benefit being increased or decreased.
Accordingly, any increase or decrease in the pension rate may
be applicable not only to persons who have not yet begun to
receive their pension benefits, but also to persons who have
begun receiving their pensions benefits. A change in the
pension rate means any modification to the definition of basic
average salary or other change to the formula for determining
the amount of a pension benefit.
(c)(b) Any amendment which affects the rights, duties,
or responsibilities of the trustee may only be made with the
trustee’s written consent. Any such amendment shall become
effective as provided therein upon its execution. The trustee
shall not be required to execute any such amendment unless the
amendment affects the duties of the trustee hereunder.
(d)(c) Except as otherwise specifically provided for
herein, no amendment to the plan shall be effective if it
authorizes or permits any part of the trust fund, other than
such part as is required to pay taxes and administration
expenses, to be used for or diverted to any purpose other than
for the exclusive benefit of the members or their designated
beneficiaries or estates."
"§45-37-123.191
The plan shall not be deemed to constitute a contract
of employment between the county and any member or to be a
consideration or an inducement for the employment of any
member or employee. Nothing contained in the plan shall be
deemed to give any member or employee the right to be retained
in the service of the county or to interfere with the right of
the county to discharge any member or employee at any time
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3067 HB190 Enrolled
Page 111
the county to discharge any member or employee at any time
regardless of the effect which such discharge shall have upon
the employee as a member of this plan. No provisions herein
shall be construed to bestow upon any member or any other
person any vested right to benefits, return of employee
contributions, or any other valuable interest hereunder. No
implied contract for benefits shall be held to arise
hereunder, either before or after retirement. A member's right
to a pension benefit shall vest and become nonforfeitable
pursuant to Section 45-37-123.100(c)(2)(b). Membership in the
system is contractual in nature and vested pension benefits
shall not be forfeited, diminished, or impaired. "
"§45-37-123.194
(a) Except as provided below and otherwise specifically
required by law, it shall be impossible by operation of the
plan or of the trust agreement, by termination of either, by
power of revocation or amendment, by the happening of any
contingency, by collateral arrangement, or by any other means,
for any part of the corpus or income of any trust fund
maintained pursuant to the plan or any funds contributed
thereto to be used for, or diverted to, purposes other than
the exclusive benefit of members, former members, or their
designated beneficiaries; and no funds of the system, whether
in cash, securities, or otherwise, nor any income or yield
thereof, shall be subject to or exacted on account of, any
tax; and no retirement or disability allowance or right to
return of contributions, or other benefits payable as set
forth in the plan, shall be assignable or be subject to
execution, levy, attachment, garnishment, or other legal
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3095 HB190 Enrolled
Page 112
execution, levy, attachment, garnishment, or other legal
process. Accordingly, the plan shall not recognize any
domestic relations order attempting to provide a member's
benefits, or any portion thereof, to an alternate payee.
(b) In the event that the county shall make an
excessive contribution under a mistake of fact, the pension
board, or its agent, may demand repayment of such excessive
contribution, and the trustees shall return such amount,
adjusted for any income or loss in value so long as such
amount is returned within one year of the date of the mistaken
contribution. Notwithstanding the immediately preceding
sentence, any return shall be limited to an amount that, in
the judgment of the pension board, would not cause the system
to become actuarially unsound.
(c) In the event that the plan makes an overpayment to
a member or, designated beneficiary, or other beneficiary for
any reason, such as, miscalculation of a pension benefit or
payment prior to the time that the member or, designated
beneficiary, or other beneficiary was entitled to payment, the
pension board may elect to offset future pension payments
benefits until such the overpayment has been recouped by the
trust fund to the extent allowed by law .
(d) Subject to applicable law, no person shall be
entitled to receive a deferred pension if his or her
separation from the service from the county is due to his or
her misappropriation of funds or property of the county, or to
moral delinquency on his or her part.
(e) Subject to applicable law, if the board finds that
a member's service is terminated by resignation or discharge,
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3123 HB190 Enrolled
Page 113
a member's service is terminated by resignation or discharge,
or otherwise, as a consequence of such member's dishonesty in
handling the monies or property of the county or any
department thereof, the member shall not be entitled to any
retirement or disability benefit, but he or she shall upon
application therefor be paid a refund of the full amount of
his or her employee contributions, less any benefits
previously paid to him or her.
(f)(d) Subject to applicable law, a member's or
designated beneficiary's benefit may be offset for obligations
to the county, the pension board, or the trust fund."
"§45-37-123.195
Any payment to any member, the member's legal
representative, designated beneficiary, or to any guardian or
committee appointed for such member or designated beneficiary
in accordance with the plan, to the extent thereof, shall be
in full satisfaction of all claims hereunder against the
trustee, the county, and the pension board each of whom may
require such member, legal representative, designated
beneficiary, guardian, or committee, as a condition precedent
to such payment, to execute a receipt and release thereof or
an indemnification agreement or both in such form as shall be
determined by the pension board."
Section 2. Sections 45-37-123.31 and 45-37-123.110 are
added to the Code of Alabama 1975, to read as follows:
§45-37-123.31
The system, the pension board and each of its
individual members, and employees of the system, when acting
within the scope of its or their official capacity, shall be
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3151 HB190 Enrolled
Page 114
within the scope of its or their official capacity, shall be
immune from civil liability and not subject to legal claims
for damages by any individual, member, designated beneficiary
or other beneficiary, or entity, directly or by way of
contribution, for any decision, act, or omission resulting in
damage or injury unless the decision, act, or omission was
caused by willful and wanton conduct, grossly negligent
conduct, gross malfeasance, or gross misfeasance. For purposes
of this section, "official capacity" means any decision, act,
or omission taken by the pension board or its individual
members to further the purpose for which the system is
established.
§45-37-123.110
(a) To the extent allowed by law, in the event that all
or any portion of the benefit payable to a missing participant
or missing beneficiary shall remain unpaid either: (1) with
respect to a nonvested member, for more than five years
following the member's separation from service of the county;
or (2) with respect to a vested member, for more than five
years following the applicable date, as may be set forth in
any administrative policies established pursuant to Section
45-37-123.22(b)(5), the amount of the missing participant's or
missing beneficiary's benefit (as applicable) or employee
contributions, or both, in the sole discretion of the pension
board, may be forfeited, subject to reinstatement as provided
in subsection (b). During any period of forfeiture, the
missing participant or missing beneficiary shall not be
treated as a member under the plan. Prior to the forfeiture of
a missing participant's or missing beneficiary's benefit or
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3179 HB190 Enrolled
Page 115
a missing participant's or missing beneficiary's benefit or
employee contributions, or both, the system shall attempt to
locate the missing participant or missing beneficiary through
reasonable search efforts, which efforts shall be determined
by the pension board in its sole discretion.
(b) In the event a missing participant or missing
beneficiary is located subsequent to the forfeiture of the
missing participant's or missing beneficiary's benefit or
employee contributions, or both, pursuant to subsection (a),
the benefit or employee contributions, or both, shall be
restored by the pension board without interest; provided,
however, that a benefit or employee contribution lost by
reason of escheat under applicable state law is not treated as
a forfeiture for purposes of this section nor as an
impermissible forfeiture under the Internal Revenue Code. In
the event that a nonvested missing participant dies subsequent
to a forfeiture of his or her employee contributions pursuant
to subsection (a), but before being located pursuant to this
subsection, the participant's refund shall be permanently
forfeited and there shall be no designated beneficiary or
other beneficiary for the refund. In no event shall any
forfeiture under the plan result in an increase in the benefit
to be paid to any member.
Section 3. Sections 45-37-123.52 and 45-37-123.53, Code
of Alabama 1975, providing for termination of eligibility and
the conversion of unpaid membership time to paid membership
time, are repealed.
Section 4. This act shall become effective on June 1,
2024.
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3207 HB190 Enrolled
Page 116
2024.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 07-Mar-24, as amended.
John Treadwell
Clerk
Senate 25-Apr-24 Passed
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