Source: http://atlanta.elaws.us/code/coor_pti_ch6_arti_sec6-2
Timestamp: 2018-05-26 07:40:21
Document Index: 77633545

Matched Legal Cases: ['§ 6', '§ 6', '§ 1', '§ 401', '§ 3', '§ 1']

§ 6-2. Retirement Benefits, Article I. In General, Chapter 6. Pensions, Part I. Charter And Related Laws, Code of Ordinances, Atlanta
§ 6-2. Retirement Benefits
(a) The following words, terms and phrases, when used in this Section 6-2, shall have the meanings ascribed to them in this Subsection (a), except where the context clearly indicates a different meaning:
(1) Actual Benefit means the annual gross amount of the retirement benefit received by a DB Plan Participant. The term is synonymous with "Pension Benefit."
(2) Actual Required Contribution or ARC means the total, Cumulative contribution amount paid by the City to fund the three Defined Benefit Plans in any given fiscal year, measured in dollars.
(3) Actuarial Valuation means the annual actuarial valuation provided by an accredited actuarial firm hired by the City to provide pension-related actuarial services.
(4) Benefit Formula means the base calculation utilized to calculate the Actual Benefit received by each DB Plan Participant. Adjustments are made to this calculation to determine the Actual Benefit.
(5) Cap means that the ARC is equal to 35% of the Total Payroll amount, or mathematically, the ARC divided by the Total Payroll amount equals 0.35.
(6) City means the City of Atlanta.
(7) Compensation means an Employee's annual salary from the City of Atlanta. This includes: base wages of the Employee (including lump-sum payments thereof); amounts contributed or deferred by the Employee and not includable in gross income under sections 125, 132(f) or 457 of the U.S. Internal Revenue Code; amounts contributed by the Employee to a governmental qualified retirement plan and treated as employer contributions under Section 414(h) of the U.S. Internal Revenue Code; and amounts credited to the Employee for furlough hours. Compensation shall not include: disability insurance payments; travel, mileage or automobile-related allowances or reimbursements; bonuses (other than sick-leave bonuses); performance awards; overtime or premium payments; or any other special, unusual or nonrecurring payment.
(8) Date of Disability means the date upon which the Eligible Employee became totally and permanently disabled, as determined in writing by the Disability and Survivor Benefits Committee. In the case of Catastrophic Injury in the Line of Duty, the Date of Disability means the date upon which the Eligible Employee suffered the Catastrophic Injury, as determined in writing by the Disability and Survivor Benefits Committee.
(9) DB Hybrid Option means the Retirement Plan terms selected by a DB Plan Member employed by the City prior to September 1, 2011, whereby the Employee chooses to participate beginning November 1, 2011 in the Retirement Plan benefits of DB Plan Members hired on and after September 1, 2011.
(10) DB Hybrid Participant means a DB Plan Participant who is enrolled in the DB Hybrid Option.
(11) DB Plan or Defined Benefit Plan means the City's Firefighters' Pension Plan (set forth in City Related Laws Sections 6-366 through 6-420), the Police Officers' Pension Plan (set forth in City Related Laws Sections 6-221 through 6-280), and/or the General Employees' Pension Plan (set forth in City Related Laws Sections 6-36 through 6-140).
(12) DB Plan Participant means an Employee (as defined in this Section 6-2(a)(19)) who is enrolled in a DB Plan.
(13) DC Plan or Defined Contribution Retirement Plan means the Defined Contribution Retirement Plan established by this Section 6-2 that: 1) includes a plan established under Section 401(a) of the Internal Revenue Code of 1986, as amended; and 2) includes the ability of Employees to make voluntary contributions to an account meeting the definition of Section 457(b) of the Internal Revenue Code of 1986 as amended.
(14) DC Plan Mandatory Participant means an Employee who was enrolled on October 31, 2011 in the Pre-November 1, 2011 Defined Contribution Plan, or an Employee hired on or after September 1, 2011 who was hired at pay grade 19 or higher and is not a sworn member of the Atlanta Police Department or Atlanta Fire Rescue Department.
(15) Disability and Survivor Benefits Committee or the DSB Committee means a group of no fewer than 7 people and no greater than 9 people, where members are appointed by the Mayor or her/his designee, and which includes at least one licensed physician, at least one licensed psychiatrist, the Chief Financial Officer, the Commissioner of the Department of Human Resources, one member of the General Employees' Pension Fund Board of Trustees, one member of the Police Officers' Pension Fund Board of Trustees, and one member of the Firefighters' Pension Fund Board of Trustees.
(16) Disability Benefit- see Long Term Disability Benefit.
(17) Disability Pension means the benefit provided to a DB Plan Participant pursuant to the applicable DB Pension Plan, based upon the eligibility criteria set forth in said Plan. A Disability Pension, which is established by the DB Pension Plans, is different from a Disability Benefit/Long Term Disability Benefit which is established by this Section 6-2.
(18) Eligible Employees (or in the singular Eligible Employee) means all DB Plan Participants hired on or after September 1, 2011, and all DB Hybrid Participants for City employment on and after November 1, 2011. This term is utilized within the context of Long Term Disability Benefits and Survivor Benefits.
(19) Employee (or in the plural Employees) means: 1) any person holding permanent, full-time, active employment with the City and all publicly elected City officials hired and/or elected on or after January 1, 1984; and 2) any person holding active employment with the City who was hired on or after January 1, 1984 and who is participating in the City's Defined Benefit or Defined Contribution Retirement Plan on August 31, 2011; however the term "Employee" shall not include: 1) any person who held permanent, full-time, active employment with the City prior to January 1, 1984, who has had continuous City service, or had a break in service and purchased the interim pension benefits upon rehire; or 2) any elected official in office on or after November 1, 2011 who has had continuous City service as an employee or elected official since before January 1, 1984, or had a break in service on or after January 1, 1984 but purchased the interim pension benefits upon rehire/re-election,
(20) Long Term Disability Benefit or Disability Benefit means the amount paid to an Eligible Employee pursuant to this Section 6-2, where the Eligible Employee is determined to be Totally and Permanently Disabled by the Disability and Survivor Benefits Committee. A Disability Benefit may be provided for Disability in the Line of Duty, Catastrophic Injury in the Line of Duty, and Disability Not in the Line of Duty. A Disability Benefit established by this Section 6-2 is different from a Disability Pension which is established by the DB Pension Plans.
(21) Monthly Compensation means the amount utilized to calculate the Disability Benefit of an Eligible Employee, and is equal to the highest 36 consecutive months of Compensation received by the Eligible Employee prior to the Date of Disability, divided by thirty-six.
(22) Multiplier means the percentage utilized in the calculation of a DB Plan Participant's Pension Benefit Formula. The Multiplier is established by the terms of the DB Pension Plan in which the DB Plan Participant is enrolled.
(23) Overage means the number of percentage points by which the ARC exceeds 35% of the Total Payroll. By way of example, where the ARC divided by the Total Payroll equals 40, the Overage is 5%. The Overage may also be expressed in dollar amounts.
(24) Pension Benefit means the annual gross amount received upon retirement by a DB Plan Participant from the DB Plan in which s/he participated. The term is synonymous with "Actual Benefit". The Pension Benefit is different from the Disability Benefit and the Survivor Benefit, even though all three are derived from a DB Plan.
(25) Pre-November 1, 2011 Defined Contribution Plan means the City's defined contribution plan created pursuant to City Ordinance number 01-O-0064 that was in effect through and including October 31, 2011.
(26) Retirement Account means the combination of all accounts owned by each Employee that contains her/his monetary benefits from the Defined Contribution Retirement Plan, including the Section 401(a) and Section 457(b) accounts, and the benefits from her/his Pre-November 1, 2011 Defined Contribution Plan if applicable.
(27) Retirement Age means: 1) a DB Plan Participant in the Firefighters' Pension Plan or Police Officers' Pension Plan hired prior to September 1, 2011 who is 55 years of age or older; 2) a DB Plan Participant in the Firefighters' Pension Plan or Police Officers' Pension Plan hired on or after September 1, 2011 who is 57 years of age or older; 3) a DB Plan Participant in the General Employees' Pension Plan hired prior to September 1, 2011 who is 60 years of age or older; or 4) a DB Plan Participant in the General Employees' Pension Plan hired on or after September 1, 2011 who is 62 years of age or older.
(28) Retirement Plan means the entire package of retirement benefits offered by the City to its Employees pursuant to this Section 6-2. The package is comprised of the DB Plans and the DC Plan.
(29) Thirty Years of Service means the date upon which a DB Plan Participant's Years of Service, as defined below, is thirty years, where such calculation is utilized for the sole purpose of determining whether the DB Plan Participant may retire prior to Retirement Age without receiving an age penalty. For the purpose of determining whether an Employee has attained Thirty Years of Service, the Years of Service amount may not be increased by application of the Employee's unused sick leave or unused annual leave, unless otherwise authorized by duly enacted City legislation.
(30) Total Payroll means the cumulative total earnings of all DB Plan Participants in the three Defined Benefit Plans in any given fiscal year.
(31) Totally and Permanently Disabled/Total and Permanent Disability means a state or condition of physical and/or mental incapacity resulting from an illness or injury suffered by an Eligible Employee, such that s/he is not expected to be able to perform the needed duties of any occupation for which s/he is qualified by education, training or experience, even after reaching the point of maximum healing. An Eligible Employee will be deemed totally and permanently disabled only if the City's Disability and Survivor Benefits Committee makes a written determination that the Employee meets the following criteria: a) the Committee reasonably anticipates that for 12 months following the Date of Disability, the incapacitation will cause the Employee to be unable to perform her/his regular, assigned or comparable duties; and b) the Committee reasonably anticipates that after the initial 12 month period, the incapacitation will cause the Employee to be unable to engage in any occupation for which s/he is or becomes reasonably qualified by education, training or experience.
(32) Voluntary Contribution means the amount an Employee contributes to her/his Retirement Account, where such contribution is not mandated.
(33) Years of Service means the number of consecutive years or fractions thereof during which a DB Plan Participant was a permanent, full-time, active employee for the City. Years of Service may include periods of time when the DB Plan Participant is Totally and Permanently Disabled, but only as set forth in Section 6-2(e) below. Years of Service may also include non-consecutive years or fractions thereof where authorized by duly enacted City legislation.
(34) Years of Service Multiplier means the product of the Multiplier times the Years of Service as set forth in the Benefit Formula."
(b) The City shall offer a Retirement Plan to all Employees effective November 1, 2011, except that the Retirement Plan for any Employee hired on or after September 1, 2011 shall be effective upon the date of her/his employment. The Retirement Plan shall consist of a Defined Benefit Plan component and a Defined Contribution Plan component. The Defined Benefit Plan component will be comprised solely of the City's three DB Plans as defined in Section 6-2(a)(10) above, and intends to satisfy Code section 401(a) by meeting the requirements of Code section 414(d). Though this Section 6-2 modifies certain terms of the DB Plans, it does not create a "new" DB plan or plans.
(c) Retirement Plan -Defined Contribution Component. The Defined Contribution Retirement Plan shall be set forth in a plan document to be adopted and maintained by the DC Plan Management Committee as described in Section 6-2(c)(14) below. At a minimum, the DC Plan shall contain the terms described in this Section 6-2(c).
(1) All Employees enrolled in the Pre-November 1, 2011 Defined Contribution Plan must participate in the new DC Plan beginning November 1, 2011. In addition, each Employee hired on and after November 1, 2011 who has a pay grade of 19 or higher and is not a sworn member of the Atlanta Police Department or Atlanta Fire Department, must participate in the new DC Plan. A DC Plan Mandatory Participant must make a pre-tax contribution of 6% of Compensation into the Section 401(a) portion of her/his Retirement Account. The City will match the mandatory payment of the DC Plan Mandatory Participant by contributing 6% of Compensation into the Section 401(a) portion of the Employee's Retirement Account.
(2) Each DB Plan Participant hired on or after November 1, 2011 and each DB Hybrid Participant must make a pre-tax contribution of 3.75% of Compensation into the Section 401(a) portion of her/his Retirement Account. The City will match the mandatory payment by contributing 3.75% of Compensation into the Section 401(a) portion of the Employee's Retirement Account.
(3) The Employee contributions described in Paragraphs 6-2(c)(1) and (c)(2) above will be picked-up by the City on a salary reduction basis pursuant to Section 414(h) of the Internal Revenue Code of 1986, as amended. The City's matching contributions as described in said Paragraphs shall vest over a 5-year period at 20% per year, such that all contributions made by the City after the completion of the fifth year are 100% vested.
(4) In addition to the mandatory payments made by an Employee into the DB Plan and/or the 401(a) portion of the DC Plan, each Employee has the option of making Voluntary Contributions into the Section 457(b) portion of her/his Retirement Account. The Employee's Voluntary Contribution shall be the percentage of Compensation directed by the Employee, and may not exceed the maximum contribution permitted under the Internal Revenue Code.
(5) The City will match 100% of the Voluntary Contribution made by a DB Plan Participant hired on or after November 1, 2011 and a DB Hybrid Participant up to 4.25% of Compensation. The Voluntary Contribution match amount will be in addition to the City's match of the 3.75% mandatory DC Plan contribution. The City's match will be deposited into the Section 401(a) portion of the Employee's Retirement Account. The match contributions shall vest over a 5-year period at 20% per year, such that all contributions made by the City after the completion of the fifth year are 100% vested.
(6) An Employee's Years of Service accumulated prior to November 1, 2011 shall be counted in the Years-of-Service calculations under the DC Plan for the sole purpose of determining vesting as described in Section 6-2(c)(3) and (c)(5) above.
(7) The Employee's Voluntary Contributions shall be paid with pre-tax dollars, unless indicated otherwise by the Employee in the manner prescribed by the City. Where an Employee chooses to utilize after-tax dollars for all or a portion of her/his Voluntary Contributions, said after-tax contributions shall be treated as Roth contributions to the extent allowed by Section 457(b) of the Internal Revenue Code of 1986 as amended. The Roth contribution option shall be available as of November 1, 2011.
(8) An Employee may change the amount of her/his Voluntary Contribution and/or the percentage of Voluntary Contribution that is paid with after-tax dollars (if any) in the manner prescribed by the City. Such changes may be made at any time, provided that the Employee does not make changes more than one time per month.
(9) The Retirement Account of an Employee who was enrolled in the Pre-November 1, 2011 Defined Contribution Plan shall be retained as part of the Employee's Retirement Account under the new Retirement Plan.
(10) Each Employee shall direct how the funds in her/his Retirement Account shall be invested, selecting from a menu of investment options provided by the Plan Administrator. The Employee may select more than one investment option.
(11) An Employee may direct lump sum distributions from her/his Retirement Account upon separation from the City, death, disability (pursuant to the City's disability retirement provisions), or retirement, in accordance with the terms of the applicable City ordinances and other laws.
(12) Each Employee may designate one or more Retirement Account beneficiaries of her/his choice.
(13) The Plan Administrator shall be the Chief Financial Officer or her/his designee. The Plan Administrator shall oversee the daily administration of the Defined Contribution Retirement Plan. The Plan Administrator shall report to the Management Committee of the DC Plan, as defined in number 14 immediately below.
(14) The Management Committee of the Defined Contribution Retirement Plan shall be comprised of: the Mayor or her/his designee; the City Council President or her/his designee; the Chairperson of the City Council Finance and Executive Committee; the City Attorney; the Chief Financial Officer; the Commissioner of the Department of Human Resources; a City Councilmember appointed by the Mayor, a Finance Management industry expert; and an Employee representative of the DC Plan who is elected by the DC Plan Mandatory Participants and DB Hybrid Participants, and who is a member of one of those two groups. The Management Committee shall manage and operate the DC Plan. It shall make all final decisions that materially impact the management and operation of the DC Plan, except that such decisions will be approved by duly enacted legislation where required by the Atlanta Code of Ordinances. The Management Committee shall have all powers necessary to enable it to properly carry out the duties of a retirement plan manager, which include the following: (i) engaging the services of third party service providers, consistent with the City's procurement procedures. The service providers may provide recordkeeping services for the DC Plan, provide investment fund options, provide and present investment education and other communication materials to Employees; and provide disability insurance; (ii) preparing and construing the DC Plan documents and agreements, and providing answers to all questions related thereto; (iii) providing answers to all questions relating to eligibility and benefit entitlement under the DC Plan, except where otherwise provided in this Section 6-2; (iv) maintaining records relating to Employees; (v) preparing and furnishing to Employees all applicable information required under state and/or federal law; (vi) preparing and furnishing to the third-party service provider all necessary Employee and financial data; (vii) providing direction and oversight of the third-party service provider; (viii) preparing and filing with all other appropriate government entities all reports and other information required under law to be so filed and/or published; (ix) engaging consultants, actuaries or other professional advisers as necessary to aid in the DC Plan administration; (x) arranging for fiduciary bonding if necessary; and (xi) providing procedures for benefit payments.
(d) Retirement Plan -Defined Benefit Component.
(1) The DB Plans, as defined in Section 6-2(a)(10) above, shall remain in effect. This Section 6-2 does not create new DB Plans, but rather modifies the DB Plans already in existence.
(2) Beginning on November 1, 2011, each DB Plan Participant hired prior to that date shall contribute 12% of her/his Compensation to the applicable DB Plan if s/he does not have a designated beneficiary, and shall contribute 13% of her/his Compensation to the applicable DB Plan if s/he does have a designated beneficiary, except that DB Plan Participants who choose to participate in the DB Hybrid Option shall make the contributions and receive the benefits described in Section 6-2(g) below.
(3) Each DB Plan Participant hired after September 1, 2011 shall contribute 8% of her/his Compensation to the applicable DB Plan.
(4) Except as set forth in Section 6-2(d)(6) and 6-2(g) below, the calculation of an Employee's Pension Benefit shall be the same as the calculation applied by the City in 2011, prior to November 1. Specifically, calculation of a Pension Benefit shall be as follows (elements of the calculation not addressed in this Section 6-2 shall be implemented as set forth in the applicable DB Plan):
(i) The DB Plan Benefit Formula ("Benefit Formula") is derived as follows:
(A) The pension multiplier set forth in the applicable DB Plan, ranging from 1%—3% (the "Multiplier"), is multiplied by the Employee's years of service with the City ("Years of Service") (the product shall be referred to as "Years of Service Multiplier").
(B) The Years of Service Multiplier may not exceed 80% (the "Cap"), unless the Employee opted for a Benefit Formula that waives the Cap. If the Years of Service Multiplier exceeds 80%, the Years of Service Multiplier shall be reduced to 80% ("Adjusted Years of Service Multiplier"), except that if the Employee opted to waive the Cap, the Years of Service Multiplier shall remain unchanged (also referred to as the "Adjusted Years of Service Multiplier").
(C) The Adjusted Years of Service Multiplier shall be multiplied by Annual Compensation. Annual Compensation is determined by calculating the highest Compensation received by an Employee over a consecutive 36 month period and dividing it by three ("Annual Compensation").
(D) The Benefit Formula is increased by applying the Employee's unused annual leave and unused sick leave at the time of retirement. Annual leave is utilized to increase the value of Annual Compensation in the Benefit Formula. Sick leave is utilized to increase the value of Years of Service in the Benefit Formula and also to increase Annual Compensation under certain circumstances. The details of determining the value of the unused leave and how it impacts the Benefit Formula is set forth in the applicable DB Plan.
(E) In the form of a numerical equation, the Benefit Formula for Employees whose Benefit Formula has a Cap is:
Benefit Formula= Annual Compensation x {lower of: 80% or (Multiplier x Years of Service)}
The Benefit Formula for Employees whose Benefit Formula does not have a Cap is:
Benefit Formula = Annual Compensation x Multiplier x Years of Service
(F) The Cost of Living Adjustment shall be calculated as set forth in the applicable DB Plan.
(ii) The actual benefit received by the Employee ("Actual Benefit") shall be equivalent to the Benefit Formula, unless the Employee is not fully vested in the DB Plan, or unless the Employee collects her/his DB pension prior to reaching Retirement Age or Thirty Years of Service. Calculation of the Actual Benefit prior to vesting and/or prior to reaching Retirement Age or Thirty Years of Service shall be as follows:
(A) If a DB Plan Participant is fully vested in the DB Plan and collects her/his DB pension prior to reaching Retirement Age or Thirty Years of Service, the Benefit Formula shall be reduced by the Age Penalty amount set forth in the applicable DB Plan.
(B) If a DB Plan Participant has completed at least 5 Years of Service with the City but has not fully vested in the DB Plan, and leaves City employment prior to reaching Retirement Age or Thirty Years of Service, the Employee may elect not to receive her/his pension until Retirement Age or later. Employees hired prior to July 1, 2010 shall be fully vested upon the completion of ten Years of Service. Employees hired on and after July 1, 2010 shall be fully vested upon the completion of fifteen Years of Service. At the time that the DB Plan Participant files a completed application with the City to receive pension (assuming s/he has reached Retirement Age), s/he will be provided a monthly pension benefit equivalent to the Benefit Formula multiplied by the Vesting Percentage. The Vesting Percentages are as follows:
1. Completion of 5 Years of Service - 25%;
2. Completion of 6 Years of Service - 30%;
3. Completion of 7 Years of Service - 35%;
4. Completion of 8 Years of Service - 40%;
5. Completion of 9 Years of Service - 45%.
6. For DB Plan Participants who require 10 Years of Service to fully vest, the Vesting Percentage will be 100% after the completion of 10 Years of Service.
7. For DB Plan Participants who require 15 Years of Service to fully vest, Completion of 10 Years of Service - 50%.
8. Completion of 11 Years of Service - 55%.
9. Completion of 12 Years of Service - 60%.
10. Completion of 13 Years of Service - 65%.
11. Completion of 14 Years of Service - 70%.
12. For DB Plan Participants who require 15 Years of Service to fully vest, the Vesting Percentage will be 100% after the completion of 15 Years of Service.
(C) It a DB Plan Participant is not fully vested in the DB Plan and leaves City employment prior to completion of 5 Years of Service, the Employee shall receive a cash-out value for her/his pension contributions equivalent to the amount s/he contributed into the DB Plan plus 5% per annum for the number of years in which s/he contributed to the DB Plan, subject to IRC Section 401(a)(31)(B).
(D) In the form of a numerical equation, the Actual Benefit for DB Plan Participants who are vested and retire prior to reaching Retirement Age or Thirty Years of Service is:
Actual Benefit = Benefit Formula - Age Penalty
The Actual Benefit for DB Plan Participants who have 5 or more years of service and draw their pension at Retirement Age or later is:
Actual Benefit = Benefit Formula × Vesting Percentage
(5) The Pension Benefit calculation for a DB Plan Participant hired prior to September 1, 2011 shall be as set forth in Section 6-2(d)(4) above, except that the calculation for a DB Hybrid Participant shall be as set forth in Section 6-2(g) below.
(6) For DB Plan Participants hired on or after September 1, 2011 only, the Pension Benefit shall be as set forth in Section 6-2(d)(4) above, except for the following changes:
(i) The Multiplier in the Benefit Formula shall be 1%.
(ii) The value of Annual Compensation in the Benefit Formula shall be calculated based upon the highest Compensation received by an Employee over a consecutive 120 month period. The Compensation amount may be increased by adding the value of unused annual leave as described in the applicable DB Plan.
(iii) Unused sick leave may not be utilized to change any portion of the Benefit Formula or Actual Benefit.
(iv) The Cost of Living Adjustment for Post-Change Pension Benefits shall be a maximum amount of 1%.
(v) The Retirement Age for the Firefighters' Pension Plan or Police Officers' Pension Plan shall be 57 years of age or older. The Retirement Age for the General Employees' Pension Plan shall be 62 years of age or older.
(vi) The age penalty assessed for DB Plan Participants who retire prior to Retirement Age shall be 6% per year (or 0.5% per month). A DB Plan Participant in the Firefighters' Pension Plan or Police Officers' Pension Plan may not collect her/his pension prior to reaching 47 years of age, unless s/he has attained Thirty Years of Service. A DB Plan Participant in the General Employees' Pension Plan may not collect her/his pension prior to reaching 52 years of age, unless s/he has attained Thirty Years of Service. Nothing in this provision shall prevent a DB Plan Participant from obtaining a cash-out value for her/his pension contributions at any time, and such value shall be equivalent to the amount s/he contributed into the DB Plan plus 5% per annum for the number of years in which s/he contributed to the DB Plan.
(vii) At the time of retirement, a DB Plan Participant may choose to designate a qualified beneficiary (as defined in Section 6-2(f)(3)(i) below) who will receive 75% of the DB Plan Participant's Pension Benefit at the time of said Participant's death. Where the DB Plan Participant designates a beneficiary, her/his Pension Benefit shall be re-calculated using the assumption that it is a single-life annuity with duration through the life of the DB Plan Participant. A DB Plan Participant who designates a beneficiary will have his/her monthly Pension Benefit reduced. A calculation shall be performed to determine the City's expected total Pension Benefit payout to the Employee if s/he had no beneficiary. The actuarial equivalent of that expected total shall be determined for the expected total Pension Benefit payout with the Employee's designated beneficiary. This actuarial equivalence shall be utilized to determine the DB Plan Participant's reduced monthly Pension Benefit amount, so that the total Pension Benefit cost to the City is not increased by the election of a beneficiary. Upon the death of the DB Plan Participant, 75% of Employee's Pension Benefit amount will be paid as a monthly benefit to the identified qualified beneficiary as described in Section 6-2(f)(3)(i). The percentage payable to the beneficiary shall comply with the U.S. Treasury regulations § 1.401 (a)(9)-6, relating to the minimum distribution incidental benefit (MDIB) requirement under IRC § 401(a)(9)(G).
(e) Long Term Disability Benefit.
(1) A Long Term Disability Benefit or Disability Benefit is established pursuant to this Section 6-2, and is different from the Disability Pension established in and provided pursuant to the DB Plans. Eligible Employees whose Date of Disability is on or after November 1, 2011 shall be eligible for a Disability Benefit pursuant to the terms set forth in this Section 6-2(e). The Eligible Employee must submit a completed application to the Disability and Survivor Benefits Committee to apply for a Disability Benefit.
(2) The following provisions shall apply to the calculation of the Disability Benefit for every Eligible Employee:
(i) The City will provide a Long Term Disability Benefit to an Eligible Employee who is determined to be Totally and Permanently Disabled by the Disability and Survivor Benefits Committee. The DSB Committee shall make its determination by utilizing a preponderance of the evidence standard, and shall base its decision on official medical records, other documentary evidence, qualified medical expert opinions, sworn testimony, and/or other reliable sources accepted by the DSB Committee. The DSB Committee shall provide its determination in writing, with a detailed explanation of the supporting evidence. The City or the Eligible Employee may appeal the DSB Committee's determination pursuant to applicable law and the process established by the DSB Committee.
(A) Where the Eligible Employee applies for a Disability Benefit and a Disability Pension for the same underlying condition, the Eligible Employee shall submit identical applications and information to the DSB Committee and the appropriate Pension Board. All hearings regarding the application, including any appeal hearings, shall be presented to the DSB Committee and appropriate Pension Board simultaneously.
(B) The DSB Committee shall make a final determination about whether the Eligible Employee may receive a Disability Benefit. The DSB Committee decision shall be separate from the decision of the applicable Pension Board regarding the Disability Pension. It is acceptable for the determinations of the two bodies to differ.
(C) This process shall be utilized for determinations regarding whether an injury qualifies as a Disability in the Line of Duty or a Catastrophic Injury in the Line of Duty, and also whether Survivor Benefits shall be awarded as set forth in Section 6-2(e) below.
(ii) The Long Term Disability Benefit provided to an Eligible Employee shall begin after the Employee has utilized all of her/his accumulated sick leave.
(iii) The Long Term Disability Benefit shall continue until the earlier of the end of the Eligible Employee's Total and Permanent Disability, the Eligible Employee's attainment of Retirement Age or Thirty Years of Service, or death of the Eligible Employee.
(iv) During the time that an Eligible Employee is receiving a Disability Benefit, the Employee's and the City's mandatory contributions to the Employee's Retirement Plan shall cease except as set forth in Subsection (e)(2)(vii) below. The Employee may make Voluntary Contributions to the 457(b) portion of her/his Retirement Account. The City will not match any portion of the Voluntary Contributions while the Employee is receiving a Disability Benefit.
(v) The monthly amount of a DB Plan Participant's Long Term Disability Benefit shall be reduced by the monthly amount of her/his Disability Pension, where such Disability Pension is calculated under the applicable DB Pension Plan as amended by this Section 6-2.
(vi) In the event that the Eligible Employee receiving a Long Term Disability Benefit also receives a Workers' Compensation award for the same illness or injury for which the City is paying a Disability Benefit, the monthly amount of the Disability Benefit shall be reduced such that the sum of the monthly Disability Benefit amount, plus the monthly Disability Pension amount if any, plus the monthly value of the Workers' Compensation award, does not exceed 75% of the Eligible Employee's Monthly Compensation. This Section 6-2(e)(2)(vi) shall not apply to Eligible Employees who suffered a Catastrophic Injury in the Line of Duty, as defined in Section 6-2(e)(3)(iii) below. In addition, this Section 6-2(e)(2)(vi) shall not prevent the restoration of some or all of the Employee's Disability Benefit upon reduction or termination of any such Workers' Compensation payments.
(vii) For those fiscal years in which the Eligible Employee receives a Long Term Disability Benefit, the City shall deposit an amount into the Section 401(a) portion of the Employee's Retirement Account that is equal to the combination of the Employee's mandatory DC contribution and the City's match thereof based upon the Eligible Employee's Compensation at the Date of Disability. This amount shall not vest until the Eligible Employee attains Retirement Age or Thirty Years of Service. The provisions set forth in this Section 6-2 regarding utilization of the Retirement Account shall then be applied. In addition, the Eligible Employee may collect her/his retirement Pension Benefit in the manner set forth in this Section 6-2.
(viii) Upon the death of an Eligible Employee who is receiving a Long Term Disability Benefit, the monthly Long Term Disability Benefit shall cease and any future benefits shall be determined as set forth in Section 6-2(f) below, entitled Survivor Benefits.
(3) Disability Benefits shall be calculated based upon the type of disability, utilizing the applicable formula set forth below, and applying the provisions set forth in Section 6-2(e)(2) above. A monthly long term disability benefit for Eligible Employees shall be calculated as follows:
(i) Disability in the Line of Duty:
(A) Disability in the Line of Duty means that an Eligible Employee is Totally and Permanently Disabled due to an injury that occurred while in the line of duty or due to an illness contracted solely as a result of activities performed while in the line of duty.
(B) An Eligible Employee who was hired before 1986 will receive a monthly Long Term Disability Benefit amount that is equal to 70% of her/his Monthly Compensation. This amount shall be adjusted as set forth in Section 6-2(e)(2)(v) and (vi) above.
(C) Eligible Employees who were hired on or after January 1, 1986 will receive a monthly Long Term Disability Benefit equal to the greater of: a) 50% of the Eligible Employee's Monthly Compensation as adjusted pursuant to Section 6-2(e)(2)(v) and (vi) above; or b) the value of the following as adjusted pursuant to Section 6-2(e)(2)(v) and (vi) above:
(1) For Eligible Employees who are sworn members of the Atlanta Police Department or Atlanta Fire Rescue Department hired on or after January 1, 1986 and before November 1, 2011: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 3%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
(2) For all non-sworn Eligible Employees hired before November 1, 2011: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 2.5%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
(3) For all Eligible Employees hired on or after November 1, 2011: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 2%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
ii. Disability Not in the Line of Duty:
(A) Disability Not in the Line of Duty means that an Eligible Employee Is Totally and Permanently Disabled due to an injury that did not occur while in the line of duty or due to an illness that was not contracted solely as a result of activities performed while in the line of duty.
(B) An Eligible Employee who was hired before 1986 will receive a monthly Long Term Disability Benefit that is equal to:
1. For Eligible Employees who are sworn members of the Atlanta Police Department or Atlanta Fire Rescue Department: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 3%. This amount shall be adjusted as set forth in Section 6-2(e)(2)(v) above.
2. For all non-sworn Eligible Employees: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 2.5%. This amount shall be adjusted as set forth in Section 6-2(e)(2)(v) above.
(C) Eligible Employees who were hired on or after January 1, 1986 and with at least 5 Years of Service will receive a monthly Long Term Disability Benefit equal to the greater of: a) 50% of the Eligible Employee's Monthly Compensation, as adjusted pursuant to Section 6-2(e)(2)(v) above; or b) the value of the following as adjusted pursuant to Section 6-2(e)(2)(v) above:
1. For Eligible Employees who are sworn members of the Atlanta Police Department or Atlanta Fire Rescue Department hired after January 1, 1986 and before November 1, 2011: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 3%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
2. For all non-sworn Eligible Employees hired before November 1, 2011: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 2.5%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
3. For all Eligible Employees hired on or after November 1, 2011: Monthly Compensation, multiplied by Years of Service at the Date of Disability, multiplied by 2%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
iii. Catastrophic Injury in the Line of Duty:
(A) For purposes of this Section 6-2(e), "Catastrophic Injury" shall mean a sudden, violent, life-threatening injury sustained on or after November 1, 2011 by an Eligible Employee in the line of duty, that causes the Employee to be Totally and Permanently Disabled, and which injury is due to an externally-caused event or events. Catastrophic Injury shall be determined by the DSB Committee based upon the procedure set forth in Section 6-2(e)(2)(i) above. Examples of Catastrophic Injury shall include without limitation the following:
1. Loss of sight in one or both eyes;
2. Loss of one or both feet at or above the ankle;
3. Loss of one or both hands at or above the wrist;
4. An injury to the spine that results in permanent and complete paralysis of both arms, both legs, or one arm and one leg;
5. An externally caused traumatic physical injury to the brain or skull that renders one physically or mentally unable to perform two or more Activities of Daily Living (feeding oneself, dressing, continence, bathing, toileting and transferring, i.e. getting in and out of bed), driving a motor vehicle, or similar activities; and/or
6. A permanent severely disabling injury or disorder that compromises the ability to carry out the activities of daily living to such a degree that the individual requires personal or mechanical assistance to leave home or bed or requires constant supervision to avoid physical harm to self or others.
(B) Any Eligible Employee who receives a Catastrophic Injury in the Line of Duty will receive a fixed monthly Long Term Disability Benefit equal to 100% of the top salary for the payroll grade and position that s/he occupied at the Date of Disability.
(4) Where an Eligible Employee believes that she has suffered a Total and Permanent Disability, s/he shall notify the DSB Committee as soon as practicable based upon the Eligible Employee's condition after the injury or illness is incurred. In addition, where a City Commissioner has any employee in her/his Department that claims to be Totally and Permanently Disabled, the Commissioner shall immediately notify the Commissioner of the Department of Human Resources, who shall immediately notify the DSB Committee. The DSB Committee shall determine if the Employee is an Eligible Employee, and if so, shall conduct an investigation and make a written determination regarding whether the Eligible Employee is Totally and Permanently Disabled, whether the Disability arose in the line of duty, and whether the Eligible Employee Suffered a Catastrophic Injury in the Line of Duty. The written determination shall be issued within 90 days of the date on which the DSB Committee was informed of the disability claim.
(5) Where the DSB Committee determines that an Eligible Employee is Totally and Permanently Disabled, and the Eligible Employee receives a Disability Benefit, the DSB Committee shall have the right to conduct an annual review of the Eligible Employee's condition. A review may occur more often than one time per year if the DSB Committee reasonably believes that the Eligible Employee is no longer Totally and Permanently Disabled. The DSB Committee shall conduct its review and make its determination using the procedure set forth in Section 6-2(e)(2)(i) above. As part of this review, the DSB Committee shall have the right to require the Eligible Employee to submit to a medical examination. The purpose of the examination shall be to determine whether the Eligible Employee has recovered sufficiently such that s/he is able to return to a job or work position for which he/she is or becomes reasonably qualified by education, training or experience. If the DSB Committee determines that the Eligible Employee is no longer Totally and Permanently Disabled, the payment of the Long Term Disability Benefit shall be discontinued. The City or the Eligible Employee may appeal the DSB Committee's determination(s) pursuant to applicable law and the process established by the DSB Committee.
(6) All Employees who are not DB Plan Participants or "Eligible Employees" shall receive Long Term Disability Insurance coverage through their participation in the Retirement Plan."
(f) Survivor Benefit.
(1) A Survivor Benefit is established pursuant to this Section 6-2. The Survivor Benefit is paid to the designated beneficiary of an Eligible Employee if the Employee dies prior to retiring from the City, and the death occurs on or after November 1, 2011. The terms of calculating and providing the Survivor Benefit are set forth below in this Section 6-2(f). The Survivor Benefit is different from the survivor pension benefit established in and provided pursuant to the DB Plans. DB Plan Participants hired prior to September 1, 2011, except for DB Hybrid Participants, may not receive a Survivor Benefit, but shall be eligible to receive a Survivor Pension through the applicable DB Plan.
(2) The City of Atlanta will provide a Survivor Benefit that shall be paid monthly to the designated beneficiary or beneficiaries of an Eligible Employee at the time of her/his death, as calculated below in this Section 6-2(f), but only if the death occurs prior to the Eligible Employee's retirement.
(3) Each Eligible Employee must designate a primary beneficiary and, if desired, a secondary beneficiary for the purpose of receiving a Survivor Benefit.
(i) The primary beneficiary and secondary beneficiary (if any) must be a "Qualified Beneficiary," thereby meeting one of the following descriptions:
(A) The spouse or domestic partner (as defined in the Atlanta Code of Ordinances) of the Eligible Employee; and/or
(B) The child or children (natural or legally adopted) of the Eligible Employee who is/are unmarried, and is either younger than 18 years of age, or younger than 23 years of age and enrolled as a full-time student at an accredited secondary school, college or university.
(ii) The Eligible Employee may not designate the same Qualified Beneficiary as a primary and a secondary beneficiary.
(iii) The Eligible Employee may change her/his primary and or secondary beneficiary to another Qualified Beneficiary/Beneficiaries in the manner prescribed by the City. Such changes may be made at any time, provided that the Employee does not make changes more than one time per month.
(iv) If the primary beneficiary should no longer meet the definition of "Qualified Beneficiary" at the time of the Eligible Employee's death, the entire Survivor Benefit shall be provided to the secondary beneficiary (if any) provided that s/he is a Qualified Beneficiary.
(4) Upon the death of an Eligible Employee, her/his primary and/or secondary Beneficiary may apply to the Disability and Survivor Benefits Committee for a Survivor Benefit equal to 75% of the application of the following formula:
(i) For Eligible Employees who are sworn members of the Atlanta Police Department or Atlanta Fire Rescue Department and hired before November 1, 2011: Monthly Compensation, multiplied by Years of Service at the date of death, multiplied by 3%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
(ii) For all non-sworn Eligible Employees hired before November 1, 2011: Monthly Compensation, multiplied by Years of Service at the date of death, multiplied by 2.5%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
(iii) For all Eligible Employees hired on or after November 1, 2011: Monthly Compensation, multiplied by Years of Service at the date of death, multiplied by 2%, multiplied by the Vesting Percentage (if any) set forth in Section 6-2(d)(4)(ii)(B) above.
(iv) For the calculations above, where an Eligible Employee received a Disability Benefit during any portion of her/his Years of Service, the "Years of Service at the date of death" calculation shall include the years or parts thereof in which s/he received a Disability Benefit.
(5) The total monthly value of the Survivor Benefit shall be reduced by the monthly amount of the Eligible Employee's survivor pension benefit as calculated under the applicable DB Pension Plan as amended by this Section 6-2, such that the total monthly payment of the Survivor Benefit plus the survivor pension benefit shall not exceed 100% of the monthly value of the Survivor Benefit as calculated herein.
(6) Where an Eligible Employee dies as a result of injuries incurred in the line of duty, her/his primary Qualified Beneficiary may receive a monthly payment for two years following the date of the Employee's death, and such payment shall be equal to the Compensation to which such Eligible Employee would have been entitled had s/he remained in active service. At the expiration of the two-year period referred to herein, the Survivor Benefit due the primary beneficiary shall be computed in accordance with the formula described in Section 6-2(f)(4) above, except that the Eligible Employee's vesting percentage shall be calculated as 100%. The Survivor Benefit for a primary Qualified Beneficiary shall be paid to the secondary Qualified Beneficiary or Beneficiaries upon the death or ineligibility of the primary Qualified Beneficiary.
(7) The Commissioner of the Department of Human Resources shall immediately notify the Disability Survivor Benefit Committee upon the death of any employee in her/his Department. The DSB Committee shall determine if the Employee is an Eligible Employee, and if so, shall conduct an investigation and make a written determination regarding whether the Eligible Employee's death was incurred in line of duty. It shall also determine whether the primary and secondary beneficiaries are Qualified Beneficiaries. The written determination shall be issued within 90 days of the date on which the DSB Committee was informed of the death. The DSB Committee shall conduct its review and make its determination using the procedure set forth in Section 6-2(e)(2)(i) above. The City, the primary beneficiary and/or the secondary beneficiary may appeal the DSB Committee's determination pursuant to applicable law and the process established by the DSB Committee.
(g) DB Hybrid Option.
(1) Each DB Plan Participant hired prior to September 1, 2011 shall be given a choice about the Retirement Plan benefit package s/he receives on and after November 1, 2011. Specifically, each said DB Plan Participant may choose to: 1) continue in the Defined Benefit Plan pursuant to the terms being applied prior to November 1, 2011 as modified by this Section 6-2, and particularly as modified by Section 6-2(d)(2) that sets forth the increased employee contribution; or 2) receive a slightly modified version of the Retirement Plan benefit package provided to DB Plan Participants hired on and after September 1, 2011, as set forth below in this Section 6-2(g). In order to select the DB Hybrid Option, the DB Plan Participant must notify the City in writing in the manner and at the time prescribed by the City. Where the Employee does not provide written notification as prescribed by the City, the Employee will be deemed as choosing not to participate in the DB Hybrid Option. A decision of whether to participate in the DB hybrid Option is irreversible.
(2) Upon retirement, a DB Hybrid Participant shall receive the Pension Benefit s/he accumulated prior to November 1, 2011 (the calculation of which may include Compensation for work performed on or after November 1, 2011), plus the benefits accumulated from the Retirement Plan on and after November 1. 2011.
(3) For the Pension Benefit accumulated prior to November 1, 2011 by a DB Hybrid Participant, the amount of the Employee's pension ("Pre-Change Pension Benefit") shall be calculated as set forth below in Section 6-2(g)(6).
(4) Retirement Plan contributions by a DB Hybrid Participant on and after November 1. 2011 shall consist of 1) DB Plan Contributions as set forth in Section 6-2(d)(3) above; 2) DC Plan Mandatory Contributions as set forth in Section 6-2(c)(2) above; and may include 3) DC Plan Voluntary Contributions as set forth in Section 6-2(c)(5) above.
(5) A DB Hybrid Participant's Retirement Plan benefits for on and after November 1, 2011 shall be comprised of: 1) the Pension Benefit calculated as set forth above in Section 6-2(d)(4) as modified by Section 6-2(d)(6)(i), (ii), (iii), (iv) and (vii) only. Provisions 6-2(d)(6)(v) and (vi) shall not apply to DB Hybrid Participants. The Retirement Age and Age Penalty shall be determined in the manner utilized for DB Members hired prior to September 1, 2011 who are not DB Hybrid Participants; 2) earnings from the Employee's Mandatory Contributions into the Section 401(a) portion of her/his Retirement Account and related City match contributions as described above in Section 6-2(c)(2); and earnings from the Employee's Voluntary Contributions into the Section 457(b) portion of her/his Retirement Account and related City match contributions as set forth in Section 6-2(c)(5).
(6) The calculation of the DB Hybrid Participant's Pre-Change Pension Benefit shall be as set forth in Section 6-2(d)(4) above, except for the following:
(i) The value of Years of Service in the DB Hybrid Participant's Pre-Change Pension Benefit Formula shall be the Years of Service between her/his date of hire and November 1, 2011. The value of the Years of Service factor in the DB Plan Participant's Pre-Change Benefit Formula shall be equal to the Years of Service accrued as of midnight on October 31, 2011. The DB Plan Participant will have a one-time opportunity to utilize her/his unused sick leave as of midnight October 31, 2011 to increase the Years of Service value in the Pre-Change Benefit Formula, provided that s/he retains no fewer than 80 hours of unused sick leave for future use. The increase shall be calculated as described in the applicable DB Plan, except that retirement shall not be required to apply the sick leave in this manner. The DB Plan Participant must designate the number of sick leave hours s/he wishes to apply to the Pre-Change Benefit Formula prior to November 1, 2011, at the time and in the manner prescribed by the City. Any sick leave hours used by the DB Plan Participant to enhance her/his Years of Service value may not be used in the future for sick leave or any other purpose
(ii) The value of Annual Compensation in the DB Hybrid Participant's Pre-Change Pension Benefit Formula shall be calculated based upon the highest Compensation received by the Employee over a consecutive 36 month period, regardless of whether all or a portion of the consecutive 36 months occurs prior to November 1, 2011. The Compensation amount may be increased by adding the value of unused annual leave as described in the applicable DB Plan.
(7) The Long Term Disability Benefits and Survivor Benefits afforded to DB Employees hired on or after November 1, 2011, as described in Sections 6-2(e) and (f) above, shall be provided to DB Hybrid Participants on and after November 1, 2011.
(h) The City will engage an accredited actuarial firm to provide annual actuarial valuations ("Actuarial Valuation") of the three Defined Benefit Plans. Each Actuarial Valuation shall include a calculation of the Actual Required Contribution ("ARC") owed by the City in the upcoming fiscal year.
(1) Where an Actuarial Valuation anticipates that the City's ARC for the next fiscal year will exceed 35% of the Total Payroll (the "Cap"), a Cost Recovery Plan shall be implemented. The Cost Recovery Plan shall consist of the following:
(i) The Mayor or her/his designee shall direct the actuary to present an analysis of the ARC's escalation and to provide additional information as requested by herself/himself or by the City Council.
(ii) The first fiscal year that the ARC exceeds the Cap, the City will pay the full amount of the Overage. The Overage shall be paid from the City's General Fund reserves, and the details of the payment will be set forth in duly enacted legislation.
(iii) During that first fiscal year, a committee shall be formed to identify potential methods and sources for mitigating and/or paying for the Overage in future fiscal years, and the committee shall provide recommendations to the City Council and the Mayor. These recommendations may include, without limitation, increasing employee and/or City DB contributions, modifying pension benefits, and/or utilizing alternative funding sources. The Committee shall be comprised of: the Mayor or her/his designee; the City Council President or her/his designee; the Chair of the Finance Executive Committee; the Chief Operating Officer; the Chief Financial Officer; the City Attorney; one elected representative from the General Employees' Pension Fund, from the Firefighters' Pension Fund, and from the Police Officers' Pension Fund; and the President or her/his designee of AFSCME, IAFF, IBPO and PACE, or the successor organization of any of these unions. No recommendation by the committee shall take effect unless and until it is authorized by duly enacted legislation.
(iv) In the event that the City fails to enact legislation directing how the Overage will be funded during the second and/or future years in which the CAP is exceeded, the cost of the Overage shall be shared equally by the City and the DB Plan Participants. The DB Plan Participants shall pay their portion of the Overage through increased contributions in a cumulative amount that is one half of the Overage, except that the amount of a Participant's increased contribution in any given fiscal year shall not exceed 5% of her/his Compensation. This increase amount shall be paid in addition to the Employee's current DB Plan contribution as set forth in Section 6-2(d)(2), (d)(3) or (g)(4). The City will pay the full amount of that portion of the Overage that exceeds 10% in any given fiscal year. In a fiscal year where no Overage exists, the Employee shall not pay an increased DB Plan contribution, but shall pay only her/his current DB Plan contribution as established by Section 6-2(d)(2), (d)(3) or (g)(4).
(v) In each fiscal year for which the City has failed to enact legislation directing how the Overage will be funded, the amount of the Employees' and the City's increased contributions shall be modified based upon the size of the Overage as set forth in the Actuarial Valuation. The amount of the increased contributions shall be calculated as set forth in the immediately preceding subsection (iv). For the avoidance of doubt, each DB Plan Participant's 5% of Compensation increase amount shall not escalate above the 5% total from year to year.
(vi) Where the Overage is eliminated in a fiscal year, but reappears within one or both of the next two fiscal years, the payment of the Overage shall be shared by the DB Plan Participants and the City as set forth in Subsections (iv) and (v) above, without the one year payment made solely by the City as set forth in Subsection (ii) above. Where the Overage is eliminated and the ARC remains lower than the CAP for more than 2 consecutive fiscal years, a new Cost Recovery Plan shall thereafter be implemented if and when the ARC exceeds the CAP.
(2) In the event that the unfunded liability amount reaches 15% or less, the City may reduce the DB Plan Participants' contribution amount through duly enacted legislation.
(3) If a Court with jurisdiction over this matter rules that this Section 6-2(i) is invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Section 6-2 shall not be affected or impaired by said ruling.
(i) The City may modify one or more of the DB Plans, the DC Retirement Plan, and/or any other aspect of the Retirement Plan in a manner that is consistent with applicable laws.
(Ord. No. 2011-27(11-O-0672), §§ 3—10, 6-29-11; Ord. No. 2013-10(13-O-0440), § 1, 4-24-13)