§ 22.3-73. Limitation on annual benefit and special vesting rules.

(a)

Notwithstanding any other provisions of this chapter, the annual benefit under the city plan of any member and any related death or other benefit, shall, if necessary, be reduced to the extent required by Section 415(b) of the Internal Revenue Code of 1986, as amended, as adjusted by the Secretary of the Treasury pursuant to Section 415(d) of the Internal Revenue Code of 1986, as amended, all as applicable to governmental plans. Notwithstanding the foregoing, adjustments in the dollar limitation under Section 415(b) of the Internal Revenue Code of 1986 shall only be applicable to benefits provided by this plan with respect to a member who is an eligible employee at the time the adjustment is effective. In comparing the plan benefit to the dollar limitation, plan benefits must be converted to an annual benefit (as defined in Section 415 of the Internal Revenue Code of 1986) by, except as provided below, converting a benefit payable in a form other than a straight life annuity to an actuarially equivalent straight life annuity before applying the limitations of this section. The annual benefit does not include any benefits attributable to after-tax employee contributions or the assets transferred from a qualified plan that was not maintained by a participating employer. No actuarial adjustment to the benefit is required for (a) the value of a joint and survivor annuity, (b) the value of benefits that are not directly related to retirement benefits (such as the qualified disability benefit, pre-retirement death benefits, and post-retirement medical benefits), and (c) the value of post-retirement cost of living increases made in accordance with Section 415(d) of the Internal Revenue Code of 1986 and Inc. Tax Regs. Section 1.415-3(c)(2)(iii). Section 415(d) of the Internal Revenue Code of 1986 and the regulations thereunder are hereby incorporated by reference.

(b)

Notwithstanding any other plan provision to the contrary, for purposes of adjusting any benefit or limitation under Section 415(b)(2)(B), (C), or (D) of the Internal Revenue Code of 1986, the applicable actuarial adjustment factors shall be based on the following assumptions:

(1)

Mortality according to the table prescribed in Rev. Rul. 2001-62, the 1994 Group Annuity Reserving Table (94 GAR). Notwithstanding the foregoing, the mortality table used for this purpose shall automatically be the table specified in any future revenue rulings or federal regulations that amend or supersede Revenue Ruling 2001-62 by specifying a new mortality table for this purpose.

(2)

Interest at the rate prescribed in Section 415 Internal Revenue Code of 1986 and the regulations and other guidance published thereunder.

(c)

Notwithstanding any other provisions of this chapter, a member shall be fully vested in his accrued benefit upon the attainment of normal retirement age.

(Ord. No. 39450, § 2, 7-16-12)

(Ord. No. 39450, § 2, 7-16-12)