§88-83.5  Benefit limitations.  (a) Notwithstanding any other law to the contrary, the benefits payable to allemployees who first become members on or after January 1, 1990, shall besubject to the limitations set forth in Section 415 of the Internal RevenueCode of 1986, as amended, applicable to governmental plans.  The dollar limitin Section 415(b)(1)(A) of the Internal Revenue Code of 1986, as amended, shallbe adjusted automatically under Section 415(d) of the Internal Revenue Code of1986, as amended, effective January 1 of each year, as published in theInternal Revenue Bulletin.  The automatic adjustment shall apply to members,former employees, retirants, and beneficiaries.

(b)  Notwithstanding any other law to thecontrary, the benefits payable to all employees who first became members beforeJanuary 1, 1990, shall be subject to the greater of the following limitationsas provided in section 415(b)(10) of the Internal Revenue Code of 1986, asamended:

(1)  The limitations set forth in section 415 of theInternal Revenue Code of 1986, as amended; or

(2)  The benefit of the member without regard to anybenefit increases pursuant to an amendment adopted after October 14, 1987.

(c)  The system shall establish a benefitrestoration plan for the payment of retirement benefits as permitted underSection 415(m) of the Internal Revenue Code of 1986, as amended, as follows:

(1)  All retirants and beneficiaries of the systemwhose pension has been limited by Section 415 of the Internal Revenue Codeshall receive a monthly benefit from the plan established pursuant to thissubsection that is equal to the difference between the retirement benefitotherwise payable and the retirement benefit payable because of Section 415 ofthe Internal Revenue Code of 1986, as amended;

(2)  Participation in the plan shall be determined foreach plan year and shall cease whenever the retirement benefit is not limitedby Section 415 of the Internal Revenue Code of 1986, as amended;

(3)  The plan shall be funded on a plan-year-to-plan-yearbasis and shall not be used to pay any benefits payable in future years.  Uponthe recommendation of the system's actuary, the required contribution amountshall be determined by the board and deposited in a separate fund from anallocation of employer contribution amounts pursuant to this chapter;

(4)  The board shall administer the plan and may makemodifications to the benefits payable as may be necessary to maintain thequalified status of the plan under Section 415(m) of the Internal Revenue Codeof 1986, as amended. [L 1990, c 104, §1; am L 2000, c 215, §2; am L 2008, c 41,§5]