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HomeMy Public PortalAbout20150304 packet NOTICE OF MEETING & TENTATIVE AGENDA Council Committee on Administration Wednesday, March 4, 2015 – 8:00 a.m. Boone/Bancroft Room (City Hall) – 320 E McCarty St Tentative Agenda 1. Call to Order 2. Roll Call 3. Approval of Minutes 4. Fireman’s Pension Plan Changes (Betts) 5. Appointment Review (Strope) 6. Public Comments 7. New Business 8. Adjournment NOTES Individuals should contact the ADA Coordinator at (573) 634-6570 to request accommodations or alternative formats as required under the Americans with Disabilities Act. Please allow three business days to process the request. Minutes of Meeting Jefferson City Council Committee on Administration Wednesday, February 4, 2015 City Hall - 320 E. McCarty Street Large Conference Room ATTENDEES Committee members present: Jim Branch, Laura Ward, Glen Costales, and Ken Hussey Staff present: Steve Crowell, Gail Strope, Drew Hilpert Meeting came to order at 8:00 a.m. Councilwoman Ward made a motion to approve the minutes which was seconded by Councilman Costales. The motion passed 4-0. ELECTION OF A CHAIR AND VICE CHAIR The committee took up the issue of electing a chair and vice chair. Councilman Costales nominated Councilman Branch for Chair. No other nominations were made. Councilman Branch was elected chair 4-0. Councilman Costales nominated Councilman Hussey as vice chair. No other nominations were made. Councilman Hussey was elected vice chair unanimously. USS JEFFERSON CITY SUBMARINE COMMITTEE Presented by City Administrator Crowell. The bill would increase the number of members of the USS Jefferson City Submarine Committee from seven (7) to nine (9). The request originated from the committee as they have 3 additional people wishing to serve on the committee. The additional members will be able to help with some of the planned events. After discussion Councilman Hussey made a motion to move the bill on to the Council which was seconded by Councilman Costales. The motion passed 4-0. APPOINTMENTS REVIEW Presented by Strope. The committee reviewed the recommendations by Mayor Struemph. A motion was made by Costales to move the appointment list dated 2/3/2015 on to the Council and the motion was seconded by Councilperson Ward. The motion passed 4-0. PUBLIC COMMENTS No one made any public comments. OTHER BUSIENSS The committee discussed moving meeting with very short and uncontroversial agendas to before or after the City Council meetings. Meeting adjourned at 8:07 a.m. BILL NO. [Bill No.] SPONSORED BY COUNCILMAN BRANCH ORDINANCE NO. AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AMENDING AND ADOPTING THE FIREFIGHTERS PENSION PLAN BENEFIT DOCUMENT . BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. The Firefighter’s pension plan is adopted as follows: FIREFIGHTERS' RETIREMENT PLAN CITY OF JEFFERSON, MISSOURI As Approved by Firemen's Pension Board and the Council of the City of Jefferson July 20, 1994 AND AMENDED BY ORDINANCE NO. 12969 (As Approved, August 18, 1999) AND ORDINANCE NO. 13201 (As Approved, June 5, 2001) AND ORDINANCE 13546 (As Approved, May 19, 2003) AND ORDINANCE 13674 (As Approved, January 14, 2004) AND ORDINANCE 14049 (As Approved, May 15, 2006) AND ORDINANCE (As Approved, 2015) Both As Approved by the Firemen's Pension Board and the Council of the City of Jefferson FIREFIGHTERS' RETIREMENT PLAN TABLE OF CONTENTS Article I PURPOSE..........................................................................................................................1 1.1 Purpose. ....................................................................................................................1 Article II DEFINITIONS .................................................................................................................1 Article III ELIGIBILITY .................................................................................................................5 3.1 Membership Requirements. .....................................................................................5 3.2 Termination and Restoration of Membership. .........................................................6 3.3 Termination of Employment; Leave of Absence. ....................................................6 3.4 Credited Service upon Reemployment. ...................................................................6 3.5 Member's Service Record. .......................................................................................6 3.6 Reemployment After a Period of Qualified Military Service ..................................7 Article IV RETIREMENT BENEFITS ...........................................................................................7 4.1 Retirement Benefit. ..................................................................................................7 (a) Eligibility. ....................................................................................................7 (b) Benefit. .........................................................................................................8 (c) Extended Duty Benefit. ................................................................................8 (d) Duration. ......................................................................................................8 Article V TERMINATION BENEFITS ..........................................................................................9 5.1 Termination Benefit. ................................................................................................9 5.2 Forfeitures. ...............................................................................................................9 Article VI DISABILITY BENEFITS ..............................................................................................9 6.1 Duty Disability Benefit. ...........................................................................................9 6.2 Nonduty Disability Benefit. ...................................................................................10 6.3 Determination of Disability. ..................................................................................10 6.4 Medical Examination. ............................................................................................10 6.5 Cessation of Disability Benefits.............................................................................11 Article VII DEATH BENEFITS ....................................................................................................11 7.1 Duty Death Benefit. ...............................................................................................11 7.2 Nonduty Death Benefit. .........................................................................................11 7.3 Retiree Death Benefit. ............................................................................................12 7.4 Termination of Benefit Upon Remarriage. ............................................................12 7.5 Child's Benefit if no Eligible Spouse. ....................................................................12 7.6 Deferred Death Benefit. .........................................................................................12 Article VIII BENEFIT LIMITATIONS ........................................................................................13 8.1 Section 415 Limitations. ........................................................................................13 8.2 Current Accrued Benefit Not Affected. .................................................................14 8.3 Combined Limitations. ..........................................................................................14 Article IX - RESERVED ...............................................................................................................14 Article X FUNDING......................................................................................................................14 10.1 Pick-up Contributions. ...........................................................................................14 10.2 Composition of Fund. ............................................................................................15 10.3 Suspension or Reduction of Property Tax. ............................................................16 Article XI DIRECT ROLLOVERS ...............................................................................................16 11.1 Direct Rollovers. ....................................................................................................16 11.2 Definitions..............................................................................................................16 Article XII BOARD OF TRUSTEES; TRUST .............................................................................17 12.1 Board of Trustees. ..................................................................................................17 12.2 Fund Custodian. .....................................................................................................18 12.3 Legal Advisor.........................................................................................................18 12.4 Trust. 18_3 12.5 Powers and Duties of Board. .................................................................................18 12.6 Vacancies. .............................................................................................................19 Article XIII ADMINISTRATIVE PROVISIONS .........................................................................19 13.1 Application for Benefits Required. ........................................................................19 13.2 Assignment and Alienation of Benefits .................................................................20 13.3 Payment to Incompetent Persons. ..........................................................................20 13.4 Unclaimed Checks. ................................................................................................20 13.5 False Statements.....................................................................................................20 13.6 Gender and Number. ..............................................................................................20 13.7 Headings. ...............................................................................................................20 Article XIV AMENDMENT AND TERMINATION ...................................................................21 14.1 Intent to Maintain Plan...........................................................................................21 14.2 Amendment. ...........................................................................................................21 14.3 Plan Merger or Consolidation. ...............................................................................21 14.4 Effect of Complete or Partial Termination ............................................................21 Article XV RESTATEMENT ........................................................................................................22 15.1 Restatement. ...........................................................................................................22 15.2 Effective Date. .......................................................................................................22 15.3 Fund Consultants ...................................................................................................22 Article XVI COST OF LIVING INCREASES .............................................................................23 1 FIREFIGHTERS' RETIREMENT PLAN of the CITY OF JEFFERSON, MISSOURI Article I PURPOSE 1. Purpose. The Firefighters' Retirement Plan of the City of Jefferson, Missouri, is established in the City of Jefferson for the exclusive benefit of the members of the Fire Department and their beneficiaries. This Plan shall be interpreted in a manner consistent with the intention of the City of Jefferson that it qualify under Section 401 of the Internal Revenue Code. Article II DEFINITIONS The following words and phrases, as used in this Plan and unless a different meaning is plainly required by the context, will have the following meanings. 2.1 "Accumulated Contributions" means the sum of all mandatory after-tax contributions made to this plan by a Member prior to September 3, 1990, together with Regular Interest thereon. Accumulated contributions do not include City pick-up contributions, as defined in Section 10.1. 2.2 “Anniversary Date” means the day after the member’s retirement date. 2.3 "Average Final Compensation" means the monthly average of the highest consecutive twelve (12) months of a Member's Compensation during that Member's last sixty (60) months of service as a Firefighter. 2.4 "Beneficiary" means any person receiving or entitled to receive a benefit under the Plan, either presently or upon a Member's death. 2.5 "Board of Trustees" or "Board" means the board provided for herein to administer the Plan. 2.6 "City" means the City of Jefferson, Missouri. 2.7 "Code" or "Internal Revenue Code" means the Internal Revenue Code of 1986, as it may be amended from time to time. 2.8 "Compensation" means the basic monthly wage or salary, including holiday pay, paid to a Member, including Elective Contributions, as hereinafter defined, but excluding bonuses, overtime, expense allowances and other extraordinary compensation. For this purpose, any Member who is on a workers' compensation leave of absence shall be deemed to have continued receiving the same level of Compensation as in effect immediately prior to the commencement 2 of the leave. The immediately preceding sentence shall not apply, however, to any workers' compensation leave of absence during which a Member fraudulently obtains workers' compensation benefits. Instead, any such leave shall be excluded from both of the twelve (12) month and sixty (60) month periods described in Section 2.31. The term “Elective Contributions” for this purpose, include any salary reduction contributions to (i) a Code Section 125 cafeteria plan after December 31, 1997, (ii) a Code Section 132(f) qualified transportation fringe benefit plan after December 31, 2000 or (iii) a Code Section 457(b) governmental deferred compensation plan after December 31, 1997. For plan years beginning after December 31, 2001, a Member’s annual Compensation shall be limited to $200,000, as adjusted by the Commissioner of the Internal Revenue Service for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. For plan years beginning after December 31, 1995, and before January 1, 2002, a Member’s annual Compensation shall be limited to $150,000.00, as adjusted by the Commissioner of the Internal Revenue Service for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Cod. Annual compensation means compensation during the plan year or such other consecutive 12-month period over which compensation is otherwise determined under the plan (the determination period). The cost of living adjustment in effect for a calendar year shall apply to any 12- consecutive-month period beginning in such calendar year. If Compensation earned during any 12-consecutive-month period beginning before December 31, 1995, is taken into account in determining a Member’s benefits accruing in a plan year beginning after December 31, 1995, the Member’s Compensation for that 12-consecutive-month period shall be limited to $150,000.00, unadjusted for any subsequent increases in the cost of living. In determining the Compensation of a Member prior to January 1, 1997 for the purposes of any dollar limitation set forth in the preceding paragraph, the rules of Section 414(q)(6) of the Code shall applying, except in apply such rules, the term “family” shall include only the spouse of the Member and any lineal descendants of the Member who have not attained age 19 before the close of the plan year. If, as a result of the application of such rules, a dollar limitation is exceeded, then the limitation shall be prorated among the affected individuals in proportion to each such individual’s Compensation as determined prior to the application of the dollar limitation. Notwithstanding the foregoing, effective December 12, 1994, if a Member is reemployed within the time prescribed by law after a period of “qualified military service”, as defined in Section 414(u)(5) of the Code, then the Member shall be treated as receiving Compensation during the period of qualified military service equal to — (a) The Compensation the Member would have received during such period if the Member were not in military service, based on the rate of pay the Member would have received from the City, but for his absence during the period of qualified military service, or (b) if the Compensation the Member would have received is not reasonably certain, the Member’s average compensation from the City during the 12-month period immediately preceding commencement of the qualified military service (or, if shorter, the entire period 1 Section number changed from 2.3 to 2.3 due Ordinance 14049 change in numbering. 3 of employment for the City immediately preceding commencement of his qualified military service). 2.9 For Plan Years beginning after December 31,1995, a Member's annual Compensation shall be limited to $150,000.00, as adjusted by the Commissioner of the Internal Revenue Service for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. The cost of living adjustment in effect for a calendar year shall apply to any 12 -consecutive-month period beginning in such calendar year. If Compensation earned during any 12-consecutive-month period beginning before December 31, 1995, is taken into account in determining a Member's benefits accruing in a Plan Year beginning after December 31, 1995, the Member's Compensation for that 12-consecutive-month period shall be limited to $150,000.00, unadjusted for any subsequent increases in the cost of living. In determining the Compensation of a Member for purposes of any dollar limitation set forth in the preceding paragraph, the rules of Section 4l4(Q)(6) of the Code shall apply, except in applying such rules, the term "family" shall include only the spouse of the Member and any lineal descendants of the Member who have not attained age 19 before the close of the Plan Year. If, as a result of the application of such rules, a dollar limitation is exceeded, then the limitation shall be prorated among the affected individuals in proportion to each such individual's Compensation as determined prior to the application of the dollar limitation. 2.10 "Credited Service" means Prior Service plus Membership Service. If a member terminates employment because of becoming totally and permanently disabled from job-related causes and takes a disability retirement or is receiving long term disability or workers' compensation prior to normal retirement, the member will receive service credit toward retirement benefits for the total period of disability until normal retirement age is reached. 2.11 "Eligible Child" means a person who; (a) is a living, natural, adopted, or stepchild of a Member or a child for whom the Member is the legal guardian; and (b) such person is both single and principally dependent on the Member for economic support; and (c) has not reached his 19th birthday; provided, however, that no more than the youngest three of such living children will be considered Eligible Children at any one time. 2.12 "Eligib1e Spouse" means that surviving spouse to whom a Member either: (a) is married on the date the Member (or his survivor) becomes eligible to receive a Disability Benefit under Article VI, a Duty Death Benefit under Section 7.1, or a Nonduty Death Benefit under Section 7.2; or 4 (b) has been married for at least 1 year on the date the Member becomes eligible to receive a Retirement Benefit under Article IV or a Termination Benefit under Article V; whichever is applicable. 2.13 "Fire Department" means the Fire Department of the City. 2.14 "Firefighter" means any officer or employee of the Fire Department employed prior to February 1, 2011, for the purpose of fire suppression, but not any employed in a clerical or janitorial capacity. The term will, however, include all persons originally employed for fire suppression duties, and who actually performed such duties, but for various reasons were transferred to other divisions of the Fire Department. In case of doubt as to whether any person is a Firefighter within the meaning of this Plan, the decision of the Board will be final. 2.15 "Firefighters' Retirement Fund" or "Fund" means the trust fund established pursuant to Article X. 2.16 "Member" means a member of the Plan, as defined in Article III. 2.17 "Membership Service" means service as a Firefighter rendered while a Member. 2.18 "Plan" means the pension plan embodied herein, as it may be amended from time to time. 2.19 "Plan Year" means the fiscal year of the City. The fiscal year of the City is November 1 to October 31st. 2.20 "Prior Service" means all service as a Firefighter rendered before the Effective Date, but only if evidenced by a prior service certificate issued pursuant to Section 3.5. 2.21 "Regular Interest" means interest at the rate of 3 percent per annum, compounded annually. Article III ELIGIBILITY 3.1 Membership Requirements. (a) Present Members . All Firefighters in service on the Effective Date prior to February 1, 2011, will become be members of the Plan as of that date. (b) New Members. All persons who, prior to February 1, 2011, become Firefighters or who reenter the service of the Fire Department as Firefighters after the Effective Date will become Members of the Plan as a condition of their employment by the City. 3.2 Termination and Restoration of Membership. Should any member with fewer than 5 years of Membership Service be absent from service for more than 4 years, or be discharged or resign 5 from his employment by the Fire Department, he will thereupon cease to be a Member and will forfeit all previous Membership Service; provided, however, as follows: (a) A Member who has resigned may be restored to membership in the Plan without loss of previous Membership Service if the following conditions have been performed or have occurred: (i) The resignation is set aside and the Member is restored to active duty by order of the Chief of the Fire Department within 90 days of the date of the resignation; (ii) The Member has not withdrawn his Accumulated Contributions; and (iii) The Member pays to the Fund, at the time of his return to active duty, the sum of all contributions he would have made pursuant to Section 10.1 had he not resigned; and (b) A Member who has been discharged will be restored to membership in the Plan without loss of previous Membership Service if the following conditions have been performed or have occurred: (i) The discharge is set aside, and the Member has been restored to active duty by (A) order of the Chief of the Fire Department within 90 days after the date of the discharge, (B) order of the Mayor or City Administrator, or a decision of the Arbitration Board as provided by work agreement, (C) judgment of a court of competent jurisdiction; (ii) either (A) The Member has not withdrawn his Accumulated Contributions; or (B) The Member repays to the Fund, at the time of his return to active duty, all Accumulated Contributions he has withdrawn; and (iii) The member repays to the Fund, at the time of his return to active duty, the sum of all contributions he would have made pursuant to Section 10.1 had he not been discharged. The failure of a Member to repay, at the time he is restored to active duty, the contributions withdrawn and/or omitted during the interval of his absence from service will deprive him of all Membership Service represented by such contributions. In no event will a Member lose credit for Prior Service. 6 3.3 Termination of Employment; Leave of Absence. Should any Member, after the Effective Date, be absent by authority of the Chief of the Fire Department, due either to military service or to a temporary leave of absence, he will not, because of such absence, cease to be a Member. If the service of any Member is terminated for any reason other than those described in the preceding sentence, he shall thereupon cease to be a Member. 3.4 Credited Service upon Reemployment. Provided such Member elects within 3 years after reemployment, a Member who resigned or was discharged, who withdrew his Accumulated Contributions, and who thereby forfeited his Membership Service will receive credit for his previous Membership Service if he again becomes a Member and remains employed for at least 2 consecutive years thereafter. Upon such election, the Member shall repay in one lump sum all Accumulated Contributions withdrawn, plus interest calculated from the date of withdrawal to the date of repayment at a rate equal to the average earnings of the Fund between such dates. Members rehired prior to the date of execution hereof who have been reemployed at least 2 years must exercise the election herein provided within 1 year after such execution date. 3.5 Member's Service Record. (a) Prior Service. Under such rules and regulations as the Board of Trustees will adopt, each Member who was a Firefighter on or before the Effective Date and who becomes a Member within one year from such date, will file a detailed statement of all service as a Firefighter rendered by him prior to that date for which he claims credit. (b) Credit for Service. The Board will determine by proper rules and regulations how much service in any year is equivalent to one year of service, but in no case will more than one year of service be credited for all service in any one calendar year, nor will the Board of Trustees allow credit as Prior Service for any period of more than one month's duration during which the Member was absent without pay. (c) Verification of Service Claim. Subject to the above restrictions and to such other rules and regulations as the Board of Trustees may adopt, the Board of Trustees will verify the service claim as soon as practicable after the filing of such statement of prior service. (d) Prior Service Certificates. Upon verification of the statements of prior service, the Board of Trustees will issue prior service certificates, certifying to each Member the amount of Prior Service with which he is credited. So long as the holder of such certificate continues to be a Member, a prior service certificate shall be final and conclusive for retirement or pension purposes as to such service; provided, however, that any Member may, within one year from the date of issuance or modification of such certificate, request the Board to modify or correct his prior service certificate, and upon such request, or on its own motion, the Board may correct such certificate. (e) Determining Credited Service. Credited Service at a Member's retirement or other termination of employment will consist of the Membership Service rendered by him since he last became a Member, any previous Membership Service to which he is entitled pursuant to Section 3.4, and his Prior Service. 7 3.6 Reemployment After a Period of Qualified Military Service. Effective December 12, 1994, if a Member is on a military leave of absence during a period of “qualified military service”, as defined in Code Section 414(u)(5), during which his reemployment rights are guaranteed by federal law, he shall be entitled to Membership Service for the period of this “qualified military service”, provided he is reemployed after the expiration of this military service within the time required by federal law. Article IV RETIREMENT BENEFITS 4.1 Retirement Benefit. (a) Eligibility. A Member will receive a Retirement Benefit under the Plan if he meets the following requirements: (i) he terminates his employment with the City; and (ii) either (A) he has completed at least 24 years of Credited Service; or (B) the sum of the member’s age and the member’s years of service is no less than eighty (80) and (iii) his last 2 years of Credited Service were consecutive; and (iv) if the Member first became a Firefighter after November 1, 1989, the sum of his or her years of service added to his or her age is no less than eighty (80) or the member is at least 55 years of age and has completed 24 years of credited service, whichever comes first. (b) Benefit. A Retirement Benefit will consist of a life annuity under which a Member receives monthly payments equal to 60 percent of his Average Final Compensation, and will accrue from the Member's retirement date. (c) Extended Duty Benefit. In addition to the Retirement Benefit provided in subpart (b) hereof, a Member shall receive an Extended Duty Benefit for full years of service above 24 years. The Extended Duty Benefit shall be an amount equal to 2.5 percent of a Member's Average Final Compensation for each additional year, but in no event shall exceed 25 percent of a Member's Average Final Compensation. (d) Commencement and Duration. The Payment of a Retirement Benefit will commence as soon as administratively practicable after a Member's retirement 8 date and, in any event by no later than April 1 of the calendar year immediately following the calendar year in which the Member attains age 70½ or retires, whichever is later, and will terminate upon payment of the amount payable on the first day of the month in which the Member dies. Any application for a Retirement Benefit must specify a retirement date not fewer than 30 nor more than 90 days after the date the application is filed. If the Member's service has been discontinued during the notification period, he will nonetheless be retired as of the date specified. Notwithstanding the foregoing from January 1, 987 to December 31, 1996, the payment of a Retirement Benefit will commence as soon as administratively practicable after a Member’s retirement and, in any event, by no later than April 1 of the calendar year immediately following the calendar year in which a Member attains age 70 ½, even if the Member had not retired, and shall terminate upon payment of the amount payable on the first day of the month in which the Member dies. The provisions of Section 7.3 hereof describe the Retiree Death Benefits provided by this Plan (which satisfy in conjunction with this subsection 4.1(d) the Code section 401(a)(9) requirements relating to the time over which a Member’s Retirement Benefit must be paid). Article V. TERMINATION BENEFITS 5.1 Termination Benefit. (a) Eligibility. Any Member not eligible to receive the Retirement Benefit described in Section 4.1 will receive a Termination Benefit under the Plan, if he meets the following requirements; (i) he terminates his employment with the City; and (ii) has completed at least 10 years of Credited Service. (b) Benefit. A Termination Benefit will consist of a life annuity under which a Member receives monthly payments equal to 2.5 percent of his Average Final Compensation, multiplied by his years of Credited Service, up to a maximum of 24 such years, and will accrue from the Member's 60th birthday. (c) Duration. The payment of a Termination Benefit will commence as soon as administratively practicable after a Member's 60th birthday, and will terminate upon payment of the amount payable on the first day of the month in which the Member dies. 5.2. Forfeitures. Any forfeitures under the Plan resulting from the termination or resignation of a Member with fewer than 5 years of Membership Service will be applied to reduce contributions by the City to the Firefighter’s Retirement Fund and shall not be used to increase Plan benefits. 9 Article VI DISABILITY BENEFITS 6.1 Duty Disability Benefit. (a) Eligibility. A Member will receive a Duty Disability Benefit if he is permanently and totally disabled (as defined in Section 6.3) by an injury or disease occurring in the line of duty. (b) Benefit. A Duty Disability Benefit will consist of monthly payments equal to 60 percent of a Member's Average Final Compensation, plus an additional 5 percent of such Average Final Compensation for each Eligible Child. This benefit will accrue from the determination of permanent and total disability. (c) Duration. Payment of a Duty Disability Benefit will commence as soon as administratively practicable after a determination of permanent and total disability, and will terminate as provided in Section 6.5 or upon payment of the amount payable on the first day of the month in which the Member dies. 6.2 Nonduty Disability Benefit. (a) Eligibility. A Member will receive a Nonduty Disability Benefit if he has completed at least 5 years of Credited Service and is permanently and totally disabled (as defined in Section 6.3) by injury or disease not occurring in the line of duty, but while still employed as a Firefighter. (b) Benefit. A Nonduty Disability Benefit will consist of monthly payments equal to 2.5 percent of a Member's Average Final Compensation, multiplied by his years of Credited Service. In no event, however, will that amount be less than 25 percent, nor more than 60 percent, of the Member's Average Final Compensation. That amount will be increased by a per annum benefit equal to 5 percent of the Member's Average Final Compensation for each Eligible Child to be paid in equal monthly payments. This benefit will accrue from the date of the determination of permanent and total disability. (c) Duration. Payment of a Nonduty Disability Benefit will commence as soon as administratively practicable after a determination of permanent and total disability, and will terminate as provided in Section 6.5 or upon payment of the amount payable on the first day of the month in which the Member dies. 6.3 Determination of Disability. A Member will be deemed to be permanently and totally disabled when he is in a state or condition of disability which prevents, presumably for the rest of the Member's lifetime, his performing the duties of a Firefighter. Such disability, whether duty or nonduty, must not have been contracted, suffered or incurred 10 while the Member was engaged in, or result from his having been engaged in, a criminal act or enterprise, or result from habitual drunkenness or addiction to narcotics, or from self-inflicted injury, or from disability incurred while in the service of the Armed Forces of the United States or of any foreign country. The Board will determine in its sole judgment whether the status of permanent and total disability exists, and its determination will be binding and conclusive. In making such determination, the Board will consider the written findings of a physician selected by the Board. The Member may, at his own expense, provide a written opinion to the Board from a physician of his own choice. The Board reserves the right to seek the written opinion of additional physicians selected by the Board, where deemed appropriate. The expense of any examination required by the Board will be paid by the Fund. 6.4 Medical Examination. (a) Biennial Examination. Unless the Member is otherwise entitled to an equal or greater benefit under another provision of this Plan, any Member who is receiving a Disability Benefit must undergo at least a biennial medical examination at a place designated by the Board. The examination will be made by a physician designated by the Board. The Board may waive the requirement of a medical examination for a period of up to four consecutive year. (b) Other Examinations. When the Board has reason to believe that any Member who is subject to the biennial medical examination requirement set forth in subsection 6.4(a) may no longer be permanently and totally disabled, the Board may require the Member to undergo up to three medical examinations per Plan Year, in addition to any biennial examination described in subsection 6.4(a). (c) Waiveable After Normal Retirement Age. When a member who is subject to the biennial medical examination requirements set forth in subsection 6.4 (a) reaches normal retirement age, the Board may waive the requirement of future medical examination. 6.5 Cessation of Disability Benefits. (b) Refusal of Examination. A Disability Benefit will cease to be paid to any Member who is required to undergo a medical examination and refuses. Benefit payments will not resume until the Member submits to the examination. If the Member refuses to submit to an examination for one full year, the Board may revoke all of the Member's rights in or to any Plan benefit. (c) Termination of Disability. If any Member who is subject to the biennial medical examination requirement set forth in subsection 6.4(a) is found by the Board to be able to perform his duties, his Disability Benefit will cease. 11 Article VII DEATH BENEFITS 7.1 Duty Death Benefit. (a) Eligibility. A Member's Eligible Spouse and Eligible Children will receive a Duty Death Benefit if the Member dies in the line of duty. (b) Benefit. A Duty Death Benefit will consist of monthly payments to a Member's Eligible Spouse equal to 50 percent of the Member's Average Final Compensation, plus monthly a per annum benefit payments to each of a Member's Eligible Children equal to 10 percent of the Member's Average Final Compensation to be paid in equal monthly payments. This benefit will accrue from the date of the Member's death. (c) Duration. Payment of a Duty Death Benefit will commence as soon as administratively practicable after a Member's death, and will terminate as provided in Sections 7.4 and 7.5. 7.2 Nonduty Death Benefit. (a) Eligibility. A Member's Eligible Spouse and Eligible Children will receive a Nonduty Death Benefit if the Member dies outside the line of duty, but while still employed as a Firefighter. (b) Benefit. A Nonduty Death Benefit will consist of monthly payments to a Member's Eligible Spouse equal to 2 percent of the Member's Average Final Compensation, multiplied by his years of Credited Service. In no event, however, will that amount be less than 25 percent, nor more than 50 percent, of the Member's Average Final Compensation. A Nonduty Death Benefit will further consist of monthly a per annum benefit payments to each of a Member's Eligible Children equal to 5 percent of the Member's Average Final Compensation, to be paid in equal monthly payments. This benefit will accrue from the date of the Member's death. (c) Duration. Payment of a Nonduty Death Benefit will commence as soon as administratively practicable after a Member's death, and will terminate as provided in Sections 7.4 and 7.5. 7.3 Retiree Death Benefit. (a) Eligibility. A Member's Eligible Spouse and Eligible Children will receive a Retiree Death Benefit if the Member dies while properly receiving a Retirement, Termination, or Disability Benefit under Articles IV, V, or VI, respectively. 12 (b) Benefit. A Retiree Death Benefit will consist of monthly payments to a Member's Eligible Spouse equal to 50 percent of the monthly benefit being paid to the Member immediately prior to his death, plus monthly a per annum benefit to each of a Member's Eligible Children equal to 5 percent of the Member's Average Final Compensation to be paid in equal monthly payments. (c) Duration. Payment of a Retiree Death Benefit will commence as of the first day of the month immediately following a Member's death, and will terminate as provided in Sections 7.4 and 7.5. 7.4 Termination of Benefit Upon Remarriage. Any Death Benefits being paid to an Eligible Spouse shall not terminate if the Eligible Spouse who remarries will terminate upon payment of the amount due on the first day of the month in which such remarriage occurs. Such remarriage will not affect any Death Benefit then being paid to any Eligible Child. 7.5 Child's Benefit if no Eligible Spouse. If a Member dies, leaving no Eligible Spouse, or if a Member's Eligible Spouse subsequently dies, any Death Benefit otherwise payable (but for the spouse's death) to such spouse will be allocated equally among the Member's Eligible Children. Solely for purposes of this Section 7.5, there will be no limit on the number of a Member's Eligible Children. The full Death Benefit otherwise payable to the Member's Eligible Spouse will continue to be reallocated among the Member's Eligible Children until the Member no longer has any Eligible Children. The last such Eligible Child will thus receive the full monthly Death Benefit otherwise payable to t he Member's spouse, plus any Death Benefit payable directly to such Eligible Child in his capacity as such. If an Eligible Child is under the age of 18 and has no living parent, such Death Benefits shall be paid only to a legally appointed conservator so such other person as is appointed by a Court of competent jurisdiction. 7.6 Deferred Death Benefit. (a) Eligibility. A Member's Eligible Spouse and Eligible Children will receive a Deferred Retiree's Survivor Benefit if the Member dies after satisfying the requirements for a Termination Benefit under Article V, but prior to receiving any portion of that Benefit. (b) Benefit. A Deferred Retiree's Survivor Benefit will consist of monthly payments to a Member's Eligible Spouse equal to 50 percent of the monthly benefit the Member would have received as a Termination Benefit, plus monthly payments to each of a Member's Eligible Children equal to 5 percent of the Member's Average Final Compensation. (c) Duration. Payment of a Deferred Retiree's Survivor Benefit will commence as soon as administratively practicable after the Member would have attained his 60th birthday, and will terminate as provided in Section 7.4 and 7.5. 13 Article VIII BENEFIT LIMITATIONS 8.1 Section 415 Limitations. In no event will the benefits payable under the plan, including any lump sum or annuity cost of living adjustment benefits paid pursuant to Article IX or Article XVI of this plan, exceed the limitations applicable to the Plan under Code Section 415 and the regulations promulgated thereunder, the provisions of which are incorporated herein by reference, including, but not limited to, Code Section 415(b)(2)(G) and (H), which apply solely to state or local government pension plans for firefighters and Code Section 415(b)(11) which applies to governmental plans. A Member’s compensation for this purpose shall mean the Member’s compensation as defined in Treas. Reg. 1.415(d)- 2(d), which is incorporated herein by reference, plus after 1997, Elective Contributions, as defined in Section 2.8 hereof, the sum of which shall be subject to the applicable limitation set forth in Code Section 401(a)(17) for such limitation year. In any calculation of the limitations under Code Section 415 during the period from Januar y 1, 1995 to December 30, 2002, that requires and use of a morality table, the mortality table that can be used for this purpose shall, pursuant to Rev. Rul. 95-6, be the 1983 Group Annuity Mortality Table(“GAM 83"). In any calculation of the limitation of the plan under Code 415 from and after December 31, 2002 that requires the use of a mortality table, the mortality table that shall be used for this purpose shall be the applicable mortality table under the code Section 417(e), which as of December 31, 2002 is the 1994 Group Annuity Reserving Mortality Table, projected to 2002. Furthermore, effective from and after January 1, 2002, a Member’s annual Compensation of up to $160,000, as adjusted pursuant to Code Section 415(d), shall be recognized for this purpose and shall include this “Elective Contributions”, as defined in Section 2.89 hereof. If benefits payable under any provision of the plan would exceed such limitations, the notwithstanding any other provisions of the plan, such benefits shall be reduced to the extent necessary to ensure that such limitations are not exceeded. Appendix B is added to this plan, to include the January 1, 1984 Code Section 415(b) limitations in the plan document. Appendix B is added to this plan to include the January 1, 1975 Code Section 415(b) limitation in this plan document. 8.2 Current Accrued Benefit Not Affected. Notwithstanding the provisions of Section 8.1, the adjusted maximum permissible amount will not be less than a Member's "current accrued benefit." A Member's current accrued benefit is a Member's accrued benefit under the Plan, determined as if the Member had separated from service as of December 31, 1986, when expressed as an annual benefit within the meaning of Code Section 415(b)(2). In. determining the amount of a Member's current accrued benefit, the following shall be disregarded: (i) any change in the terms and conditions of the Plan after May 5, 1986; and (ii) any cost of living adjustments occurring after May 5, 1986. 8.3 Combined Limitations. If any Member is a participant under a Defined Contribution Plan maintained by the City, the sum of the Defined Benefit Plan Fraction for a Plan Year and the Defined Contribution Plan Fraction for that year will be no greater than one (1.0). 14 If necessary to satisfy the limitation set forth in the preceding sentence, the annual pension payable under this Plan will be reduced. The terms "Defined Benefit Plan," "Defined Benefit Plan Fraction," "Defined Contribution Plan," and "Defined Contribution Plan Fraction" will have the meanings given them under Code Sections 415(e) and 415(k) and any regulations promulgated thereunder, the provisions of which are incorporated herein by reference. Article IX Reserved Article X FUNDING 10.1 This plan being now closed shall not be funded by Pick-up Contributions. Pick-up Contributions and Withdrawal of Accumulated Contributions. (a) Effective January 12, 2004, City pick-up contributions in an amount equal to four percent (4%) of the Member’s Compensation will be made to the general fund of the plan, beginning on May 19, 2003, the 2003 Amendment Date. From September 3, 1990 to May 19, 2003, pick-up contributions, as defined in subsection 10.1(b) hereof, were made to the plan’s 13th Check Fund by the City in an amount equal to one percent (1%) of each Member’s Compensation. Prior to September 3, 1990 Member’s were required to make mandatory after-tax contributions to the general fund of the plan, which, together with Regular Interest, are defined as section 2.1 hereof as Accumulated Contributions. (b) Contribution by City. The City, pursuant to the provisions of Code Section 414(h)(2), will "pick up" and pay the contributions that would otherwise be payable by Members as prescribed herein (i.e., one percent (1%) of each Member’s Compensation). The contributions so picked up will be treated as employer contributions for purposes of determining the amounts of federal and state income taxes to withhold from the Member's Compensation. (c) Deduction from Compensation. Contributions picked up by the City will be paid from the same source of funds used for the payment of Compensation to a Member. A deduction will be made from each Member's Compensation equal to the amount of the Member's contributions picked up by the City, provided that such deduction will not reduce the Member's Compensation for purposes of computing benefits under this Plan. The deductions provided for herein will be made even though the minimum compensation payable to each Member as provided by ordinance will be reduced thereby, and each Member will be deemed to consent to the deductions so made and provided for herein. Payment of a 15 Member's salary or compensation less such deduction will be a full and complete discharge of all claims and demands whatsoever for services rendered by such Member during the period covered by such payment, except as to benefits provided under this Plan. (d) Withdrawal of Accumulated Contributions by Members. Any Member not eligible to receive any benefit under the Plan may, upon his termination of employment with the City, withdraw all or any portion of his Accumulated Contributions. Except as provided in Article III, however, a Member who withdraws any portion of his Accumulated Contributions will forfeit all Membership Service earned prior to that withdrawal. Accumulated Contributions will be distributed as soon as administratively practicable after a Member's proper written request therefor or, in case of the Member’s death without being survived by an Eligible Spouse or Eligible Child, to his/her beneficiary or, if none, his/her estate. 10.2 Composition of Fund. In addition to the contributions made pursuant to Section 10.1, the Firefighters' Retirement Fund will consist of the following: (a) Gifts, grants, etc. All money that may be given to the Board or the Fund by any person for the uses and purposes for which the Fund is created. The Board may take by gift, grant, devise or bequest any money, personal property, real estate or interest therein, or any right of property; and any such gift, grant, devise or bequest may be absolute, in fee simple, or upon condition that only the rents, income or profits arising therefrom will be applied to the purposes for which the Fund is established. (b) Fees, Rewards. Etc. Paid to Fire Department. All rewards in money, fees, gifts and endowments that may be paid or given for or on account of extraordinary services by the Fire Department or any Member thereof, except when permitted by order of the Board to be retained by said Member. (c) Receipts from Property Tax. The proceeds of up to one mill levied on each dollar of the value of all taxable property annually assessed in the City, as such assessment appears on the tax duplicate. Such sum will be set aside and made a part of the Fund, and will not be used for or devoted to any pu rpose other than herein specified. (d) City Contributions. Contributions made by the City in amounts necessary to maintain the actuarial soundness of the Plan. 10.3 Suspension or Reduction of Property Tax. If the Board determines that the Fund is adequately funded to satisfy all claims for benefits and all anticipated claims for benefits for any given Plan Year, the City Council, within its discretio n, will have the right and power to suspend or reduce the property tax described in subsection 10.2(c). 16 Article XI2 DIRECT ROLLOVERS 11.1 Direct Rollovers. This Article applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a "distributee's" election, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an "eligible rollover distribution" paid directly to an "eligible retirement plan" specified by the distributee in a "direct rollover." 11.2 Definitions. For purposes of this Article, the following terms shall have the meaning ascribed to them below: (a) An "eligib1e 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 often years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code. For 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 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 section 408(a) or 408(b) of the Code, or to a qualified defined contribution plan described in section 401(a) or 403(b) of the Code that agrees to separately account for amounts so transferred, including for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. Any amount that is distributed on account of hardship shall not be an eligible rollover distribution and the distributee may not elect to have any portion of such a distribution paid directly to an eligible retirement plan. (b) An "eligible retirement plan" is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified trust described in Section 401(a) of the Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. For distributions made after December 31, 2001, an eligible retirement plan shall also mean an 2 Article XA changed to Article XI with following Article numbers changed for consistency. Section numbers updated as well for consistency. 17 annuity contract described in section 403(b) of the Code and an eligible plan section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately, account for amounts transferred into such plan from this plan. The definition of eligible retirement plan shall also apply to the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in section 414(p) of Code. (c) A "distributee" includes a Firefighter or former Firefighter. In addition, the Firefighter's or former Firefighter's surviving spouse and the Firefighter's or former Firefighter's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the C ode, are distributees with regard to the interest of the spouse or former spouse. (d) A "direct rollover" is a payment by the Plan to the eligible retirement plan specified by the distributee. Article XII BOARD OF TRUSTEES; TRUST 12.1 Board of Trustees. The Firefighters' Retirement Fund will be under the exclusive management and control of the Board of Trustees, which will transact all its business and hold all its money, securities and other property in the name of "The Board of Trustees of the Firefighters' Retirement Fund." The Board will consist of the City Administrator of the City of Jefferson, the City Finance Director, the Chief of the Fire Department, three members chosen from the citizens at large (appointed for three-year terms by the Mayor, with the consent and approval of the City Council), and three members of the Fire Department (elected for three year terms by the members thereof, such elections to be held on the first Monday in June of each year). The three citizens at large will be appointed from a list of at least three individuals per position. The list will be furnished to the Mayor by the Board. Any person appointed to the Board as a citizen at large will have a background in a field of endeavor relevant to pension plans and will have no personal pecuniary interest, either present or potential, in the Fund. The terms of the members appointed by the Mayor and the members elected by the Fire Department will be staggered. The members of the Board will serve without compensation. The compensation of all persons engaged by the Board, and all other expenses of the Board necessary for the operation of the Plan, will be paid at such rates and in such amounts as the Board shall approve. The members of the Board will meet annually to elect one of their number chairman. They may also elect such other officers as they deem necessary. The Chief of the Fire Department will serve as secretary of the Board. The Board will make and adopt such bylaws, rules and regulations for its guidance and for the operation of the Fund as it may deem advisable. 18 12.2 Fund Custodian. The City Finance Director will be custodian (the "Fund Custodian") of all money, securities and other property of the Fund, subject to the control and direction of the Board. As prescribed by the Board, the Fund Custodian will keep separate books and complete accounts of the Fund. These will include an individual account for each Member, reflecting contributions made pursuant to Section 10.1, together with earnings thereon (i.e., "Accumulated Contributions"). These books and accounts will at all times be subject to inspection by the Board or by any of its members. The Fund Custodian will be liable to the Fund on his bond executed to the City as Finance Director of the City of Jefferson, Missouri, for all his acts concerning the Fund. On the expiration of his term of office, the Fund Custodian will deliver to his successor all unexpended money, securities, books, records, and other property which may have come into his possession as Fund Custodian. 12.3 Legal Advisor. The City Counselor will be legal advisor to the Board. 12.4 Trust. The Board will have the exclusive control of the expenditure and investment of all money collected for and deposited to, or appropriated to the credit of, the Fund, and of the supervision, care and custody of the Fund. All money received for the Fund will be deposited initially in the City treasury to the credit of the Fund, will be held in trust, will be kept separate and apart from funds of the City, and will be drawn upon by the Fund Custodian only on proper authorization. 12.5 Powers and Duties of Board. The Board will have the following powers and duties: (a) Investment of Fund Assets. In its discretion, the Board will invest and reinvest all assets of the Fund, in excess of a safe operating balance, in any investments not prohibited under the laws of the State of Missouri. No member or employee of the Board will have any interest in the acquiring or disposing of any investment. (b) Actuarial Data; Report. The Board will keep in convenient form such data as will be necessary for actuarial evaluation of the Fund and for checking the experience of the Plan. The Board will make an annual actuarial report to the City Council stating the condition of the Fund, the various sums of money deposited to the Fund, how much money has been expended from the Fund, and for what purposes — with such statistics, information and suggestions as the Board may deem of general interest. All portions of the report relating to the receipt and expenditure of money will be verified by affidavit. The Board may determine the manner and method of providing benefits, the level of benefits, and any assessment against the wages of the Firefighters necessary to maintain the actuarial soundness of the Plan, by and with the consent of the City Council. (c) Administration and Appeals. The Board will make rules and regulations for the governance of its affairs, the administration of the Plan, and the limitation of the time within which claims may be filed. It will have exclusive jurisdiction of all retirement claims, benefits or refunds. It will hold hearings and take and preserve 19 the evidence on all disputed matters. The evidence, record and final finding and decisions of the Board will be subject to review and reversal only by the Board. The Board will have the authority and power to interpret and construe the Plan and to decide any and all matters arising hereunder, including the administrative discretion necessary to determine whether an individual meets the Plan's written eligibility requirements, and to interpret any other term contained in this Plan document. The interpretations and determinations of the Board are binding on all Members, retired Members and Beneficiaries. 12.6 Vacancies. (a) Interim Replacement. If any elected Board member position becomes vacant, a replacement Board member shall be elected during the normal membership election for that year, at which time the newly elected replacement Board member shall immediately assume office as soon as results of the election are available. The Board may with a two-thirds vote appoint an interim Board member to serve until the results of the election. (b) Permanent Replacement. Any elected Board positions that are vacant or have acting incumbents shall be added to the ballot for the next general election to select permanent Board members to fill the unexpired term. 12.73 No Mandatory Cash-Out Distributions. Benefit payments from the Plan shall only be made on the basis of a written application of (i) a Member, Eligible Spouse, Beneficiary, the legal guardian of an Eligible Child or the legal representative of a deceased Member’s estate, whichever is applicable, and (ii) the written authorization of an authorized member of the Board of Trustees. Article XIII ADMINISTRATIVE PROVISIONS 13.1 Application for Benefits Required. An application for Plan benefits or request for withdrawal of Accumulated Contributions must be filed with the Board of Trustees on a form provided by the Board for that purpose. 13.2 Assignment and Alienation of Benefits. None of the benefits, payments, proceeds, claims or rights of any Member or Beneficiary hereunder will be subject to any claim of any creditor of the Member or Beneficiary, nor will any Member or Beneficiary have any right to transfer, assign, encumber or otherwise alienate any of the benefits or proceeds he may expect to receive, contingently or otherwise, under the Plan. 3 Section number changed from 12.8 to 12.7; 12.8 has been listed incorrectly in Ordinance 14049. 20 13.3 Payment to Incompetent Persons. Every person receiving or claiming a benefit under the Plan will be presumed to be mentally competent and of age until the Board receives reliable, written notice that such person is a minor or otherwise incompetent. Payments otherwise due a minor will be paid to any custodial parent of such minor. Payments otherwise due any other incompetent person will be paid to the guardian, conservator or other legal representative of such person. In the event that the Board is unable to locate a parent, guardian, conservator or other legal representative of an incompetent person who is otherwise entitled to payment under the Plan, such payment will be made to the individual determined by the Board to have assumed financial responsibility for the care of such person. Before the initial payment is made to an individual designated in this Section 12.3, the minor or other incompetent person will be notified of the Board's intent to make such payment to that other individual. Any payment of a benefit in accordance with the provisions of this Section 13.3 will be a complete discharge of any further liability to make such payment. 13.4 Unclaimed Checks. If the Member or Beneficiary to whom a benefit is to be distributed cannot be located, and reasonable efforts have been made to find him, including the sending of notification by certified or registered mail to his last known address, the Board may direct the Fund Custodian to distribute the benefits in question to an interest-bearing savings account established in the name of such Member or Beneficiary. 13.5 False Statements. Any Member who, upon entering the Fire Department, makes any misstatement or misrepresentation as to physical condition or any understatement of age shall, for the Member and the Member's spouse and dependents, forfeit all rights to participate in the benefits of the Plan. No person shall knowingly or willingly make any false statement, or falsify or permit to be falsified any record of the Plan, in an attempt to defraud the Plan as a result of such act. 13.6 Gender and Number. In the construction of this Plan, the masculine shall include the feminine and the singular the plural in all cases where such meanings would be appropriate. 13.7 Headings. The headings of articles, sections and paragraphs are inserted for the convenience of reference only and are to be ignored in any construction of the provisions hereof. Article XIV AMENDMENT AND TERMINATION 14.1 Intent to Maintain Plan. It is the present intention of the City to maintain this Plan throughout its corporate existence. Nevertheless, the City reserves the right to discontinue or terminate the Plan, to terminate the City's liability to make further 21 contributions to the Fund, or to suspend such contributions for a fixed or indeterminate period of time, but no such action shall reduce any benefits accrued to the date thereof. 14.2 Amendment. To provide for contingencies which may require the clarification, modification or amendment of the Plan, the City reserves the right to amend the Plan at any time. The City will not, however, amend the Plan in any way that would deprive any Member or Beneficiary of the right to receive his accrued benefit under the Plan (determined as of the first day of the Plan Year for which the amendment is effective), alter the basic purpose of the Plan, or give the City any rights in the Fund, other than on termination of the Plan and after all liabilities to Members and Beneficiaries have been met or provided for. 14.3 Plan Merger or Consolidation. In the case of any merger or consolidation with, or transfer of any assets or liabilities to, any other plan, each Member and Beneficiary under this Plan will be entitled to receive (if the surviving plan is then terminated) a benefit immediately after the merger, consolidation or transfer that is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation or transfer (if this Plan had terminated). 14.4 Effect of Complete or Partial Termination. If this plan shall be partially or completely terminated, then the accrued benefits of all Members affected by the complete or partial termination shall, to the extent funded, become fully vested and nonforfeitable. Accrued benefit for this purpose shall mean the Retirement Benefit the Member has earned as of his Retirement Date, as determined under Section 4.1 hereof, payable in the form of a life annuity, as set forth in subsection 4.1(b), based on the Member’s Average Final Compensation as of the date of the complete or partial termination of the plan and/or the assumption that his/her Credited Service would have continued uninterrupted to the date the Member would have completed the applicable years of Credited Service described in Section 4.1(a)(ii), for a Retirement Benefit, multiplied by a fraction of the numerator of which shall be the number of the member’s years of Credited Service as the complete or partial termination of the plan and the denominator of which shall be the years of Credited Service the Member would have completed under Section 4.1(a)(ii) at his Retirement Date. Article XV RESTATEMENT 15.1 Restatement. The foregoing provisions of the Plan represent a restatement, with certain modification, of the Plan terms described in the following ordinances: (a) Ordinance No. 4883 -- approved February 20, 1947. (b) Ordinance No. 5798 -- approved April 15, 1954. (c) Ordinance No. 9441 -- approved June 17, 1980. 22 (d) Ordinance No. 10987 -- approved February 2, 1988. (e) Ordinance No. 11333 -- approved November 8, 1989. (f) Ordinance No. 12026-- approved February 7, 1994. (g) Ordinance No. 12117-- approved July 6, 1994. (h) Ordinance No. 12969 – approved August 18, 1999 (i) Ordinance No. 13201 – approved June 5, 2001 (j) Ordinance No. 13546 - approved May 19, 2003 (k) Ordinance No. 13674 – approved January 14, 2004 (l) Ordinance No. 14049 – approved May 15, 2006 (m) Ordinance No. – approved In the event of conflict between the provisions of this restated Plan and any of the ordinances set forth above, the restated Plan provisions will control. 15.2 Effective Date. Except as set forth in Section 14.3, the provisions of this restated Plan will apply only to Members having at least one hour of service as a Firefighter on or after August 27, 1990, and to the Eligible Spouses and Eligible Children of such Members. 15.3 Fund Consultants. Any Member, surviving spouse, or Eligible Child who is not described in Section 14.2, but who otherwise is or becomes entitled to a benefit under the provisions of the Plan as in effect prior to this restatement, shall be employed by the Board as a special consultant on the problems of retirement, aging, and other matters of concern to the Board. Upon request of the Board, such special consultant shall provide his oral or written opinions on such matters. In return for these services, special consultants will be compensated as follows: (a) All special consultants will be entitled to share in any distribution described in Article IX ("13th Check Program"); (b) Eligible Spouses will receive an increase in their monthly Death Benefit, raising that amount from $100 to $300. (c) Any Member receiving a monthly benefit of less than $300 shall receive an increase in that monthly benefit to $300. 23 Article XVI COST OF LIVING INCREASES 16.0 Each member who retires after the 2003 Amendment Date, or the beneficiary of such member, shall receive a two percent (2%) increase in the member’s retirement allowance on the first day of the month next following the anniversary date of the member’s retirement and an additional two percent (2%), compounded, on the first day of the month on each successive anniversary date. IN WITNESS WHEREOF, the City of Jefferson, Missouri, has caused this Plan to be executed as of this ___ day of May, 2014. ________________________________ ________________________________ Board President Mayor Attest Approved as to Form ________________________________ ________________________________ City Clerk City Counselor 24 Appendix A Maximum TEFRA Plan Benefits. Effective January 1, 1983, the total annual benefit (as defined hereinafter) of any Member under all defined benefit plans maintained by the Employer shall not exceed the limitations set forth in this Appendix and its subsections. Annual Benefit. For purposes of this Appendix A, the term “annual benefit” means a benefit payable in the form of a straight life annuity with no ancillary benefits, under a plan to which the Employees do not contribute and under which no rollover contributions have been made. Amount of Total Annual Benefit. The total annual benefit shall not exceed the lesser of (i) ninety thousand dollars ($90,000) as such amount may hereafter be adjusted by a Code Section 415 amendment or by the Secretary of the Treasury pursuant to the Code Section 415(d)(1) for the plan year the Member’s benefits become payable hereunder or (ii) one hundred percent (100%) of the Member’s average compensation for his highest three years of plan membership (as defined in Section 1(f) of this Appendix A). Adjustment of Benefits. When retirement benefits under this plan are payable in any form other than the form described in Section I(a), the determination as to whether the limitation described in this Appendix A has been satisfied shall be made, in accordance with regulations prescribed by the Secretary of the Treasury or his delegate, by adjusting such benefit so that it is equ ivalent to the benefit described in Section I(a) of this Appendix A. The annual interest rate assumption for this purpose shall be five percent (5%), which is greater than the plan rate of 3% as set forth in Section 2.21 hereof, For purposes Adjustment of Benefits Taken Before Age 62. If the retirement income benefit under this plan begins before the Member’s age 62, the determination as to whether the dollar limitation set forth in Section I(b)(i) of this Appendix A, has been satisfied shall be made, in accordance with Code Section 415, as amended from time to time, and the regulations or rulings prescribed by the Secretary of the Treasury or his delegate, by adjusting such benefit so that Section I(b)(i) of this Appendix A has been satisfied shall be made, in accordance with Code Section 415, and the regulations or rulings prescribed by the Secretary of the Treasury or his delegate, by adjusting such benefit so that it is equivalent to such a benefit beginning at such age. The annual interest rate assumption for this purpose shall be five percent (5%), which is greater than the plan rate of 3%, which is set forth in Section 2.21 hereof. The reduction in the dollar limitation set forth in Section I(b)(i) shall not be reduced below: If the benefit begins on or after age 55, $75,000, or If the benefit begins before age 55, the amount which is the equivalent of $75,000, based on regulations prescribed by the Secretary of the Treasury or his delegate. 25 Adjustment of Benefits Taken After Age 65. If the retirement income benefit under this plan begins after the Member’s Age 65, the determination as to whether the dollar limitation set forth in Section I(b)(i) of this Appendix A has been satisfied shall be made in accordance with Code Section 415, as amended from time to time, and the regulations or ruling prescribed by the Secretary or his delegate, buy adjusting such benefit so that it is equivalent to a benefit beginning at age 65. High 3 Years. For purposes of this Appendix A, a Member’s highest three (3) years of plan membership shall be the period of consecutive calendar years (not more than three (3)) during which the Member was both an active Member in the plan and had the greatest aggregate compensation from his Employer. For this purpose, a Member’s compensation shall mean the compensation defined in Code Section 415(c)(3) and the regulations and rulings thereunder. Limitation of Benefits. Notwithstanding the preceding provision of this Appendix A, the benefits payable with respect to a Member under this plan shall be deemed not to exceed the limitation of this Appendix A, if: the retirement benefits payable with respect to such Member under this plan and under all other “qualified” defined benefit plans to which his Employer contribute do not exceed ten thousand dollars ($10,000) for the applicable plan year and for any prior plan year; and his Employer has not at any time maintained a “qualified” defined contribution plan in which the Member participated. Fractions. In the case of an Employee who has fewer than ten (10) years as a Member of this plan, the dollar limitation referred to in Section I9b) of this Appendix A shall be multiplied by a fraction, the numerator of which is the number of years while a contributing Member and the denominator of which is ten (10). To the extend provided by the Secretary of the Treasury, this paragraph shall be applied separately with respect to each change in the benefit structure of the plan. In the case of a Member who has less than ten (10) years of Service, the percentage limitation referred to in Section I(b) of this Appendix A and the minimum benefit referred to in section (f) shall be multiplied by a fraction, the numerator of which is the number of years of Credited Service and the denominator of which is ten. II. Maximum Combined Plans Benefits and Contributions. Effective January 1, 1984 if a Member is a participant in a defined contribution plan maintained by the Employer, the sum of his defined benefit plan fraction and defined contributi on plan fraction for any Plan Year shall not exceed 1.0, calculated as hereinafter provided. For the purpose of this Appendix A, the term “defined benefit plan fraction” shall mean a fraction the numerator of which is the Member’s projected annual benefit under this plan determined as of the close of the applicable Plan Year and the denominator of which is either (i) 26 one hundred forth percent (140%) of the Member’s maximum permissible defined benefit under Code Section 415(b), based on the percentage of pa y limits or (ii) one hundred twenty-five percent (125%) of the Member’s maximum permissible defined benefit under Code Section 415(b), based on the dollar limits, whichever is less. For the purposes of Section II of this Appendix A, the term “defined contribution plan fraction” shall mean a faction the numerator of which is the sum of all the “annual additions” (as defined in Code Section 415(c) to the Member’s accounts in the defined contribution plans and the denominator of which is the sum of either (i) one hundred forth percent (140%) of the maximum permissible “annual additions” for each Plan Year of the Member’s employment of this Employer, based on the percentage of pay limits, or (ii) on hundred twenty-five percent (125%) of the maximum permissible “annual additions” for each Plan Year of the Member’s employment for his Employer, based on the dollar limits, whichever is less. III. January 1 Adjustments. In the event that as of any January 1 corrective adjustments are required pursuant to this Appendix A, the Member’s annual benefit shall be reduced by an amount adequate to insure compliance with this Appendix A. 27 Appendix B I. Maximum ERISA Plan Benefits. Effective January 1, 1976, the total annual benefit (as defined hereinafter) of any Member under all defined benefit plans maintained by the Employer shall not exceed the limitations set forth in this Appendix and its subsections. (a) Annual Benefit. For purposes of this Appendix B, the term “annual benefit” means a benefit payable in the form of a straight life annuity with no ancillary benefits, under a plan to which the Employees do not contribute and under which no rollover contributions have been made. (b) Amount of Total Annual Benefit. The total annual benefit shall not exceed the lessor of (i) seventy-five thousand dollars ($75,000) as such amount may hereafter be adjusted by a Code Section 415 amendment or by the Secretary of the Treasury pursuant to Code Section 415(d)(1) for the plan year the Member’s benefits become payable hereunder or (ii) one hundred percent (100%) of the Member’s average compensation for his highest three years of plan membership (as defined in Section I(e) of this Appendix B). (c) Adjustment of Benefits. When retirement benefits under this plan are payable in any form other than the form described in Section I(a), the determination as to whether the limitation described in this Appendix B has been satisfied shall be made, in accordance with regulations prescribed by the Secretary of the Treasury or his delegate, by adjusting such benefit so that it is equivalent to the benefit described in Section 1(a) of this Appendix B. For purposes of this section (c), any ancillary benefit which is not directly related to retirement income benefits shall not be taken into account; and that portion of any joint and survivor annuity which constitutes a qualified joining and survivor annuity (as defined in Code Section 411) shall not be taken into account. (d) Adjustment of Benefits Taken Before Age 55. If the retirement income benefit under this plan begins before the Member’s age 55, the determination as to whether the dollar limitation set forth in Section I(b)(i) of this Appendix B, has been satisfied shall be made, in accordance with Code Section 415, as amended from time to time, and the regulations or rulings prescribed by the Secretary of this Appendix B has been satisfied shall be made, in accordance with Code Section 415, and the regulations or rulings prescribed by the Secretary of the Treasury or his delegate, by adjusting such benefit so that it is equivalent to such a benefit beginning at such age. (e) High 3 Years. For purposes of this Appendix B, a Member’s highest three (3) years of plan membership shall be the period of consecutive calendar years (not more than three (3)) during which the Member was both an active Member in the plan and had the greatest aggregate compensation from his Employer. For this purpose, a Member’s compensation shall mean the compensation defined in Code Section 415(c)(3) and the regulations and rulings thereunder. 28 (f) Limitation of Benefits. Notwithstanding the preceding provisions of this Appendix B, the benefits payable with respect to a Member under this plan shall be deemed not to exceed the limitation of this Appendix B, if: The retirement benefits payable with respect to such Member under this plan and under all other “qualified” defined benefit plans to which his Employer contribute do not exceed ten thousand dollars ($10,000) for the applicable plan year and for any prior plan year; and His Employer has not at any time maintained a “qualified” defined contribution plan in which the Member participated. (g) Fractions. In the case of an Employee who has fewer than ten (10) years as a Member of this plan, the dollar limitation referred to in Section I(b) of this Appendix B shall be multiplied by a fraction, the numerator of which is the number of years while a Member and the denominator of which is ten (1). To the extent provide by the Secretary of the Treasury, this paragraph shall be applied separately with respect to each change in the benefit structure of the plan. In the case of a Member who has less than ten (10) years of Service, the percentage limitation referred to in Section I(b) of this Appendix B and the minimum benefit referred to in section (f) shall be multiplied by a fraction, the numerator of which is the number of years of Credited Service and the denominator of which is ten. II. January 1 Adjustments. In the event that as of any January 1 correcti ve adjustments are required pursuant to this Appendix B, the Member’s annual benefit shall be reduced by an amount adequate to insure compliance with this Appendix B. 29 Appendix C I. Minimum Required Distributions. (a) General Rules. (i) Effective Date. The provisions of the Appendix C will apply for purposes of determining required minimum distributions beginning on or after January 1, 2005. (ii) Precedence. The requirements of this Appendix C will take precedence over any inconsistent provisions of the Plan. (iii) Requirements of Treasury Regulations Incorporated. All benefit payments required under this Appendix C will be determined and made in accordance with the Treasury regulations under Code section 401(a)(9). (b) Time and Manner of Distribution. (i) Required Beginning Date. The Member’s Retirement Benefit will begin or otherwise be paid to the Member by no later than the Member’s Required Beginning Date, as defined in Section I.(f)(iv) of this Appendix C. (ii) Death of Member Before Benefit Payments Begin. If the Member dies before benefit payments begin, the Death Benefit under Article VII will begin no later than as follows: (A) If the Member’s surviving spouse is the Member’s sole Beneficiary, the, benefit payments to the surviving spouse must begin by December 31 of the calendar year immediately following the calendar year in which the Member would have reached Attained Age seventy and one-half(70-1/2), if later. (B) If the Member’s surviving spouse is not the Member’s sole Beneficiary, the, benefit payments to the Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Member died. (C) If there is no Beneficiary as of September 30 of the year following the year of the Member’s death, any benefits due the Member will be distributed by December 31 of the calendar year containing the fifth anniversary of the Member’s death. 30 (D) If the Member’s surviving spouse is the Member’s sole Beneficiary and the surviving spouse dies after the Member but before benefit payments to the surviving spouse begin, the Section I.(b) of Appendix C, other than Section I.(b)(i) of the Appendix C, will apply for the sole purpose of determining the calendar year of the Members death, as if the surviving spouse were the Member. For purposes of this Section I.(b) of Appendix C and Section I.(e) of Appendix C, benefit payments are considered to begin on the Member’s Required Beginning Date (or, if Section I.(b)(iv) of the Appendix C applies, the date benefit payments are required to begin to the surviving spouse under Section I.(b)(i) of Appendix C). If income payments irrevocably commence to the Member before the Member’s Required Beginning Date (or to the Member’s surviving spouse before the benefit payments are required to begin to the surviving spouse under Section I.(b)(i) of Appendix C), the date benefit payments are considered to begin is the date benefit payments actually commence. (iii) Form of Payment. Unless the Member’s benefit is distributed in the form of annuity or in a single sum on or before the Required Beginning Date, as of the First Benefit Payment Calendar Year Monthly Retirement Income payments will be made in accordance with Sections I.(c), I.(d), and I.(e). If the Member’s interest is distributed in the form of an annuity, such distributions shall be made in accordance with the requirements of Section 401(a) (9) and the Treasury regulations thereunder. (c) Determination of Amount to be Distributed Each Year. (i) If the Member’s benefit is paid in the form of a Monthly Retirement Income, such payments must satisfy the following requirements: (A) the benefit payments must be paid in periodic payments made at intervals not longer than one year; (B) the benefit payment period will be over a life (or lives) or over a period certain not longer than the period described in I.(d) or I.(e) of this Appendix C; (C) once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted; (D) payments will either be nonincreasing or increase only as follows: (1) by an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is 31 based on prices of all items and issued by the Bureau of Labor Statistics; (2) 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 benefit payment period described in Section I.(d) of the Appendix C dies or is no longer the Member’s Beneficiary pursuant to a qualified domestic relations order within the meaning of Internal Revenue Code section 414(p); (3) to pay increased benefits that result from a plan amendment. (4) to provide cash refunds of employee contributions pursuant to Plan Section 10.1(d), or to a deceased member, if the deceased member is not survived by an Eligible Spouse or Eligible Child who is entitled to a survivor’s income benefit under this Plan, including any such a deceased member whose benefits were in pay status who did not receive a refund of all of his Accumulated Contributions, determined as of the date the Member’s Monthly Retirement Income commenced. (ii) Amount Required to be Distributed by Required Beginning Date. The amount that must be distributed on or before the Member’s Required Beginning Date (or, if the Member dies before Monthly Retirement Income payments begin, the date Monthly Retirement Income payments are required to begin under Section I.(b)(i) or (ii)) 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. Payment intervals are the periods for which payments are received, e.g. bi-monthly, monthly, semi-monthly, or annually. All of the Member’s benefit accruals as of the last day of the First Benefit Payment Calendar Year will be included in the calculation of the amount of the Monthly Retirement Income payments for payment intervals ending on or after the Member’s Required Beginning Date. (iii) Additional Accruals After First Benefit Payment Calendar Year. Any additional benefits accruing to the Member in a calendar year after the First Benefit Payment Calendar Year will be paid beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues. 32 (d) Requirements For Income Distributions That Commence During Member’s Lifetime. (i) Joint Life Income Where the Beneficiary Is Not the Member’s Spouse. If the Member’s benefit is being distributed in the form of a joint and survivor income for the joint lives of the Member and nonspouse Beneficiary, Monthly Retirement Income payments to be made on or after the Member’s Required Beginning Date to the Beneficiary after the Member’s death must not at any time e (ii) Period Certain Income. Unless the Member’s spouse is the sole Beneficiary and the form of benefit payment is a period certain and no life income, the period certain for an income benefit payment commencing during the Member’s lifetime may not exceed the applicable benefit payment period for the Member under the Uniform Lifetime Table set forth in section I.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the benefit commencement date. If the annuity starting date precedes the year in which the Member reaches age seventy (70), the applicable benefit payment period for the Member is the benefit payment period for age seventy (70) under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations plus the excess of seventy (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 Beneficiary and the form of benefit payment is a period certain and no Income, the period certain may not exceed the longer of the Member’s applicable benefit payment period, as determined under this Section I.(d) of this Appendix C, 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 section 1.401(a)(9)-9 of the Treasury regulations, 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 Benefit Payments Where Member Dies Before Date Benefit Payments Begin. (i) Member Survived by Beneficiary. If the Member dies before the date distribution of his or her benefit begins and there is a Beneficiary, the Member’s benefit will be distributed, beginning no later than the time described in Section I.(b)(i) or (ii), over the life of the Beneficiary or over a period certain not exceeding: (A) unless the annuity starting date is before the First Benefit Payment Calendar Year, the life expectancy of the Beneficiary determined using the Beneficiary’s age as of the Beneficiary’s birthday in the 33 calendar year immediately following the calendar year of the Member’s death; or (B) if the annuity starting date is before the First Benefit Payment Calendar Year, the life expectancy of the Beneficiary determined using the Beneficiary’s age as of the Beneficiary’s birthday in the calendar year that contains the benefit commencement date. (ii) Death of a Surviving Spouse Before Distributions to Surviving Spouse Begin. If the Member dies before the date distribution of his or her benefit begins, the Member’s surviving spouse is the Member’s sole Beneficiary, and the surviving spouse dies before benefit payments to the surviving spouse begin, this Section I.(e) will apply for the sole purpose of determining the calendar year of the Member’s death, as if the surviving spouse were the Member, except that the time by which benefit payments must begin will be determined without regard to Section I.(b)(i) of this Appendix C. (f) Definitions. (i) Beneficiary. The person who is a Beneficiary under Article VII of the Plan and is the Beneficiary under Code section 401(a)(9) and section I.401(a)(9)-1, Q&A-4, of the Treasury regulations. (ii) First Benefit Payment Calendar Year. A calendar year for which a minimum benefit payment is required. For benefit payments beginning before the member’s death, the First Benefit Payment Calendar Year is the calendar year immediately preceding the calendar year which contains the Member’s Required Beginning Date. For benefit payments after the Member’s death, the First Benefit Payment Calendar Year is the calendar year in which benefit payments are required to begin pursuant to Section I.(b) of this Appendix. (iii) Life Expectancy. Life expectancy as computed by use of the single life Table in section 1.401(a)(9)-9 of the Treasury regulations. (iv) Required Beginning Date. April 1 of the calendar year immediately following the calendar year in which a Member reaches attained age seventy and one-half (70-1/2) or retires, whichever is later. (v) Monthly Retirement Income. Distributions in the form of a monthly retirement income or a monthly annuity benefit payment. 34 Section 2. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed: Approved: Presiding Officer Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Counselor