(a) Notwithstanding anything contained in this section to the contrary, the limitations, adjustments, and other requirements prescribed in these sections shall at all times comply with the applicable provisions of Internal Revenue Code § 415 and the regulations thereunder as they apply to governmental plans, the terms of which are incorporated herein by reference. The annual benefit of a participant hereunder (adjusted to an actuarially equivalent straight life annuity) shall not at any time within the limitation year exceed the lesser of:
(1) Ninety thousand dollars ($90,000), as that amount shall be adjusted from time to time.
(2) One hundred percent of the participant's average compensation for his or her high three years effective July 1, 1995, this subsection (a)(2) shall not apply. In the case of a participant who has less than 10 years of participation in this plan, the ninety thousand dollar ($90,000) limitation set forth in subdivision (1) shall be multiplied by a fraction, the numerator of which is years of participation in this plan and the denominator of which is 10. This shall also apply to the compensation limitation in this subsection (a) except that the numerator shall be years of service with the city rather than years of participation in this plan. However, these limitations do not apply if the pension amounts do not exceed ten thousand dollars ($10,000) for the current or prior plan year and the participant has not been covered at any time by a defined contribution plan to which the town contributed on his or her behalf.
(b) Maximum benefit limitation.
DEFINITIONS -- For purposes of this section, the following definitions shall apply:
(1) "Pension" shall mean an annual benefit payable at normal retirement age as a straight life annuity with no ancillary benefits or an annuity payable in a joint and survivor payment form where the spouse is the joint pensioner. A benefit payable in any other form shall be converted to the actuarial equivalent of a straight life annuity, for purposes of applying these limits, based on a five percent interest assumption and the 1983 GAM (50/50). Other required adjustments are provided for below.
(2) "Compensation" shall mean any and all earnings reported on W-2 forms completed by the city in respect to the plan year specified. For plan years after January 1, 1989, the compensation of each employee taken into account under the plan for any year shall not exceed two hundred thousand dollars ($200,000), as indexed under IRC § 415(d). Any increase in the annual compensation limit is effective as of January 1 of a calendar year and applies to any plan year beginning in that calendar year. Beginning after December 31, 1993, only the first one hundred fifty thousand dollars ($150,000) of compensation shall be taken into account (or, beginning January 1, 1995, such other amount as may be determined under IRC § 401(a)(17)(B)). For plan years beginning after December 31, 1997, compensation also shall include salary reduction deferrals within the meaning of IRC § § 402(g), 125 and 457.
(3) "Annual benefit" shall mean the benefit the participant would be entitled to at his or her normal retirement date assuming he or she continues employment until such date and that all other relevant facts used to determine benefits under the plan remain constant as of the current limitation year for all future limitation years.
(4) The term "limitation year" shall mean a plan year.
(c) Adjustment for early or late commencement of benefits.
If the annual pension benefit of a participant begins before age 62, as described in Internal Revenue Code Section 415(b)(8) the ninety thousand dollar ($90,000) limitation set forth in (a) above shall be reduced so that it is equivalent to such a benefit beginning at age 62. The reduction of this paragraph shall not reduce the limitation of subsection (a), below (1) seventy-five thousand dollars ($75,000) if the benefit begins at or after age 55 or (2) if the benefit begins before age 55, the equivalent of the seventy-five thousand dollar ($75,000) limitation for age 55. In the case of a "qualified Participant," the limitations of Section 4.6(a) shall not apply. A qualified participant means a participant:
a. In a defined benefit plan which is maintained by a state or political subdivision therefore.
b. With respect to whom the period of service taken into account in determining the amount of the benefit under such defined benefit plan includes at least 15 years of service of the participant.
c. Is a full-time employee of any police department or fire department which is organized and operated by the state or political subdivision maintaining such defined benefit plan to provide police protection, firefighting services for any area within the jurisdiction of such state or political subdivision.
d. As a participant of the Armed Forces of the United States.
(2) If the annual pension benefit of a participant begins after age 55, the ninety thousand dollar ($90,000) limitation set forth in subsection (a)(1) above shall be increased so that it is equivalent to such a benefit beginning at age 65.
(3) Actuarial equivalence under this Section 4.6 shall be determined using a five percent interest assumption and the 1983 GAM (50/50), and the term "ninety thousand dollars ($90,000)" shall include any higher amounts prescribed by the code for purposes of these limitations. In the case of disability or survivor benefits provided under the plan, the limitations of subsection (b) and (c) shall not apply to:
a. Income received from the plan as a pension, annuity, or similar pension as the result of the recipient becoming disabled by reason of personal injuries or sickness.
b. Amounts received from a governmental plan by the beneficiaries, survivors or the estate of an employee as the result of the death of the employee.
(d) Protection of prior benefits. For any year before 1986, the limitations prescribed by Section 415 of the code as in effect before enactment of the Tax Reform Act of 1986 and all subsequent legislation shall apply, and no pension earned under this plan prior to 1986 shall be reduced on account of the provisions of subsection (a) through (c) if it would have satisfied those limitations under that prior law.
(e) Application of maximum limitations. The benefit paid under this plan shall not exceed the limitations set forth in subsection (a).
(f) If a participant on the annuity starting date is not eligible for full monthly benefits under this plan because of the operation of subsection (a), the monthly benefit shall thereafter be recalculated annually until the participant is receiving a full monthly benefit under the plan's terms without the operation of this subsection. Each such recalculation shall be based on this subsection with any applicable adjustment to reflect cost-of-living increases as permitted by the treasury regulations.
(Act 2002-298, p. 815, §21; Act 2002-304, p. 841, §21.)
(a) Notwithstanding anything contained in this section to the contrary, the limitations, adjustments, and other requirements prescribed in these sections shall at all times comply with the applicable provisions of Internal Revenue Code § 415 and the regulations thereunder as they apply to governmental plans, the terms of which are incorporated herein by reference. The annual benefit of a participant hereunder (adjusted to an actuarially equivalent straight life annuity) shall not at any time within the limitation year exceed the lesser of:
(1) Ninety thousand dollars ($90,000), as that amount shall be adjusted from time to time.
(2) One hundred percent of the participant's average compensation for his or her high three years effective July 1, 1995, this subsection (a)(2) shall not apply. In the case of a participant who has less than 10 years of participation in this plan, the ninety thousand dollar ($90,000) limitation set forth in subdivision (1) shall be multiplied by a fraction, the numerator of which is years of participation in this plan and the denominator of which is 10. This shall also apply to the compensation limitation in this subsection (a) except that the numerator shall be years of service with the city rather than years of participation in this plan. However, these limitations do not apply if the pension amounts do not exceed ten thousand dollars ($10,000) for the current or prior plan year and the participant has not been covered at any time by a defined contribution plan to which the town contributed on his or her behalf.
(b) Maximum benefit limitation.
DEFINITIONS -- For purposes of this section, the following definitions shall apply:
(1) "Pension" shall mean an annual benefit payable at normal retirement age as a straight life annuity with no ancillary benefits or an annuity payable in a joint and survivor payment form where the spouse is the joint pensioner. A benefit payable in any other form shall be converted to the actuarial equivalent of a straight life annuity, for purposes of applying these limits, based on a five percent interest assumption and the 1983 GAM (50/50). Other required adjustments are provided for below.
(2) "Compensation" shall mean any and all earnings reported on W-2 forms completed by the city in respect to the plan year specified. For plan years after January 1, 1989, the compensation of each employee taken into account under the plan for any year shall not exceed two hundred thousand dollars ($200,000), as indexed under IRC § 415(d). Any increase in the annual compensation limit is effective as of January 1 of a calendar year and applies to any plan year beginning in that calendar year. Beginning after December 31, 1993, only the first one hundred fifty thousand dollars ($150,000) of compensation shall be taken into account (or, beginning January 1, 1995, such other amount as may be determined under IRC § 401(a)(17)(B)). For plan years beginning after December 31, 1997, compensation also shall include salary reduction deferrals within the meaning of IRC § § 402(g), 125 and 457.
(3) "Annual benefit" shall mean the benefit the participant would be entitled to at his or her normal retirement date assuming he or she continues employment until such date and that all other relevant facts used to determine benefits under the plan remain constant as of the current limitation year for all future limitation years.
(4) The term "limitation year" shall mean a plan year.
(c) Adjustment for early or late commencement of benefits.
If the annual pension benefit of a participant begins before age 62, as described in Internal Revenue Code Section 415(b)(8) the ninety thousand dollar ($90,000) limitation set forth in (a) above shall be reduced so that it is equivalent to such a benefit beginning at age 62. The reduction of this paragraph shall not reduce the limitation of subsection (a), below (1) seventy-five thousand dollars ($75,000) if the benefit begins at or after age 55 or (2) if the benefit begins before age 55, the equivalent of the seventy-five thousand dollar ($75,000) limitation for age 55. In the case of a "qualified Participant," the limitations of Section 4.6(a) shall not apply. A qualified participant means a participant:
a. In a defined benefit plan which is maintained by a state or political subdivision therefore.
b. With respect to whom the period of service taken into account in determining the amount of the benefit under such defined benefit plan includes at least 15 years of service of the participant.
c. Is a full-time employee of any police department or fire department which is organized and operated by the state or political subdivision maintaining such defined benefit plan to provide police protection, firefighting services for any area within the jurisdiction of such state or political subdivision.
d. As a participant of the Armed Forces of the United States.
(2) If the annual pension benefit of a participant begins after age 55, the ninety thousand dollar ($90,000) limitation set forth in subsection (a)(1) above shall be increased so that it is equivalent to such a benefit beginning at age 65.
(3) Actuarial equivalence under this Section 4.6 shall be determined using a five percent interest assumption and the 1983 GAM (50/50), and the term "ninety thousand dollars ($90,000)" shall include any higher amounts prescribed by the code for purposes of these limitations. In the case of disability or survivor benefits provided under the plan, the limitations of subsection (b) and (c) shall not apply to:
a. Income received from the plan as a pension, annuity, or similar pension as the result of the recipient becoming disabled by reason of personal injuries or sickness.
b. Amounts received from a governmental plan by the beneficiaries, survivors or the estate of an employee as the result of the death of the employee.
(d) Protection of prior benefits. For any year before 1986, the limitations prescribed by Section 415 of the code as in effect before enactment of the Tax Reform Act of 1986 and all subsequent legislation shall apply, and no pension earned under this plan prior to 1986 shall be reduced on account of the provisions of subsection (a) through (c) if it would have satisfied those limitations under that prior law.
(e) Application of maximum limitations. The benefit paid under this plan shall not exceed the limitations set forth in subsection (a).
(f) If a participant on the annuity starting date is not eligible for full monthly benefits under this plan because of the operation of subsection (a), the monthly benefit shall thereafter be recalculated annually until the participant is receiving a full monthly benefit under the plan's terms without the operation of this subsection. Each such recalculation shall be based on this subsection with any applicable adjustment to reflect cost-of-living increases as permitted by the treasury regulations.
(Act 2002-298, p. 815, §21; Act 2002-304, p. 841, §21.)
(a) Notwithstanding anything contained in this section to the contrary, the limitations, adjustments, and other requirements prescribed in these sections shall at all times comply with the applicable provisions of Internal Revenue Code § 415 and the regulations thereunder as they apply to governmental plans, the terms of which are incorporated herein by reference. The annual benefit of a participant hereunder (adjusted to an actuarially equivalent straight life annuity) shall not at any time within the limitation year exceed the lesser of:
(1) Ninety thousand dollars ($90,000), as that amount shall be adjusted from time to time.
(2) One hundred percent of the participant's average compensation for his or her high three years effective July 1, 1995, this subsection (a)(2) shall not apply. In the case of a participant who has less than 10 years of participation in this plan, the ninety thousand dollar ($90,000) limitation set forth in subdivision (1) shall be multiplied by a fraction, the numerator of which is years of participation in this plan and the denominator of which is 10. This shall also apply to the compensation limitation in this subsection (a) except that the numerator shall be years of service with the city rather than years of participation in this plan. However, these limitations do not apply if the pension amounts do not exceed ten thousand dollars ($10,000) for the current or prior plan year and the participant has not been covered at any time by a defined contribution plan to which the town contributed on his or her behalf.
(b) Maximum benefit limitation.
DEFINITIONS -- For purposes of this section, the following definitions shall apply:
(1) "Pension" shall mean an annual benefit payable at normal retirement age as a straight life annuity with no ancillary benefits or an annuity payable in a joint and survivor payment form where the spouse is the joint pensioner. A benefit payable in any other form shall be converted to the actuarial equivalent of a straight life annuity, for purposes of applying these limits, based on a five percent interest assumption and the 1983 GAM (50/50). Other required adjustments are provided for below.
(2) "Compensation" shall mean any and all earnings reported on W-2 forms completed by the city in respect to the plan year specified. For plan years after January 1, 1989, the compensation of each employee taken into account under the plan for any year shall not exceed two hundred thousand dollars ($200,000), as indexed under IRC § 415(d). Any increase in the annual compensation limit is effective as of January 1 of a calendar year and applies to any plan year beginning in that calendar year. Beginning after December 31, 1993, only the first one hundred fifty thousand dollars ($150,000) of compensation shall be taken into account (or, beginning January 1, 1995, such other amount as may be determined under IRC § 401(a)(17)(B)). For plan years beginning after December 31, 1997, compensation also shall include salary reduction deferrals within the meaning of IRC § § 402(g), 125 and 457.
(3) "Annual benefit" shall mean the benefit the participant would be entitled to at his or her normal retirement date assuming he or she continues employment until such date and that all other relevant facts used to determine benefits under the plan remain constant as of the current limitation year for all future limitation years.
(4) The term "limitation year" shall mean a plan year.
(c) Adjustment for early or late commencement of benefits.
If the annual pension benefit of a participant begins before age 62, as described in Internal Revenue Code Section 415(b)(8) the ninety thousand dollar ($90,000) limitation set forth in (a) above shall be reduced so that it is equivalent to such a benefit beginning at age 62. The reduction of this paragraph shall not reduce the limitation of subsection (a), below (1) seventy-five thousand dollars ($75,000) if the benefit begins at or after age 55 or (2) if the benefit begins before age 55, the equivalent of the seventy-five thousand dollar ($75,000) limitation for age 55. In the case of a "qualified Participant," the limitations of Section 4.6(a) shall not apply. A qualified participant means a participant:
a. In a defined benefit plan which is maintained by a state or political subdivision therefore.
b. With respect to whom the period of service taken into account in determining the amount of the benefit under such defined benefit plan includes at least 15 years of service of the participant.
c. Is a full-time employee of any police department or fire department which is organized and operated by the state or political subdivision maintaining such defined benefit plan to provide police protection, firefighting services for any area within the jurisdiction of such state or political subdivision.
d. As a participant of the Armed Forces of the United States.
(2) If the annual pension benefit of a participant begins after age 55, the ninety thousand dollar ($90,000) limitation set forth in subsection (a)(1) above shall be increased so that it is equivalent to such a benefit beginning at age 65.
(3) Actuarial equivalence under this Section 4.6 shall be determined using a five percent interest assumption and the 1983 GAM (50/50), and the term "ninety thousand dollars ($90,000)" shall include any higher amounts prescribed by the code for purposes of these limitations. In the case of disability or survivor benefits provided under the plan, the limitations of subsection (b) and (c) shall not apply to:
a. Income received from the plan as a pension, annuity, or similar pension as the result of the recipient becoming disabled by reason of personal injuries or sickness.
b. Amounts received from a governmental plan by the beneficiaries, survivors or the estate of an employee as the result of the death of the employee.
(d) Protection of prior benefits. For any year before 1986, the limitations prescribed by Section 415 of the code as in effect before enactment of the Tax Reform Act of 1986 and all subsequent legislation shall apply, and no pension earned under this plan prior to 1986 shall be reduced on account of the provisions of subsection (a) through (c) if it would have satisfied those limitations under that prior law.
(e) Application of maximum limitations. The benefit paid under this plan shall not exceed the limitations set forth in subsection (a).
(f) If a participant on the annuity starting date is not eligible for full monthly benefits under this plan because of the operation of subsection (a), the monthly benefit shall thereafter be recalculated annually until the participant is receiving a full monthly benefit under the plan's terms without the operation of this subsection. Each such recalculation shall be based on this subsection with any applicable adjustment to reflect cost-of-living increases as permitted by the treasury regulations.
(Act 2002-298, p. 815, §21; Act 2002-304, p. 841, §21.)
