§ 12-4. Same—Amendments of 1989.

(a)

An ordinance establishing a retirement plan for the employees of the city and setting forth the joint trust agreement and the contract for the administration of such plan between the city and the joint municipal employees benefit system as provided by O.C.G.A. § 47-5-1 et seq., is hereby amended by adding to the end of article II, a new section 46, section 47, and section 48, to read as follows:

"Section 46. "Disability" shall mean a physical or mental disability of a participant who because of such disability becomes entitled to receive disability insurance benefits under the federal social security act, as amended."

"Section 47. "Disability retirement" shall mean termination of employment as a result of a disability with a disability benefit granted under the provisions of the plan."

"Section 48. "Disability retirement date" shall mean the first day of the first calendar month in which a participant becomes entitled to receive disability insurance benefits under the federal social security act, as amended, as provided in article IV, section 1 and section 5. However, in no event shall such disability retirement date be earlier than one (1) calendar month following participant's termination of employment as a result of a disability."

(b)

Such ordinance is further amended by striking paragraph "a" from article IV, section 1, and substituting in lieu thereof, a new paragraph "a," to read as follows:

"a.

The retirement prerequisites of a participant under this plan are contingent upon the method of retirement selected by such participant; that is, normal retirement, early retirement, delayed retirement, or disability retirement; and whether or not such participant is a full-time employee. The prerequisites associated with each retirement method or employment status shall be as specified below in pertinent provisions of sections 2, 3, 4, and 5, respectively, of this article IV."

(c)

Such ordinance is further amended by adding to the end of article IV, a new section 5, to read as follows:

"Section 5. Disability retirement date. A participant may retire under the provisions of the plan on the first day of the first calendar month in which a participant becomes entitled to receive disability insurance benefits under the federal social security act regardless of any age or service restrictions otherwise contained herein. Upon actual retirement, such participant shall receive the disability retirement benefit provided in article V, section 4, or any other retirement benefit granted under the plan for which he is eligible if such benefit is greater than the aforesaid disability retirement benefit. However, under no circumstances shall any retired participant be entitled at one time to more than one type of retirement benefit granted under the plan."

(d)

Such ordinance is further amended by striking section 4 and section 5 from article V, and substituting in lieu thereof, a new section 4, section 5, and section 6, to read as follows:

"Section 4. Disability retirement benefit. The amount of the disability retirement benefit shall be calculated in the same manner as the normal retirement benefit with no actuarial reduction for age imposed. In no event, however, in the case of a full-time employee, will a participant's disability retirement benefit be less than twenty (20) percent of participant's average monthly earnings for the twelve-calendar month period immediately preceding participant's termination of employment as a result of a disability. Upon retirement on participant's disability retirement date, a participant shall receive a monthly retirement benefit commencing on the first day of the month coinciding with participant's disability retirement date and payable on the first day of each month thereafter so long as participant's disability continues."

"Section 5. Direct deposit of retirement benefits.

a. The pension committee may authorize the direct deposit of monthly retirement benefits into banks, trust companies, savings banks, savings and loan associations, and credit unions, based upon the election of a retired participant or beneficiary. Such election shall be in writing on a form provided for that purpose.

b. In the event that a direct deposit results in the misapplication of retirement benefits which are unrecoverable, the amount of the loss shall be charged to the employer's trust fund."

"Section 6. Suspension of benefits.

a. Any retirement benefit payable under this plan to any participant shall be suspended, except as otherwise provided herein, as of the date participant is reemployed as an eligible employee or holds an elective office of the governing authority, and shall be resumed as of the first day of the month following participant's subsequent retirement. In any case where the payment of a participant's retirement benefits shall have been so suspended, the retirement benefit payable on participant's subsequent retirement (whether before or after participant's normal retirement date) shall be the benefit computed in accordance with this article V on the basis of participant's aggregate credited service, and for a full-time employee on the basis of participant's final average earnings, at the time of participant's subsequent retirement, but reduced on an actuarial basis by the value of: any early retirement benefits received by participant prior to being reemployed as a full-time employee or return to elective or appointive office, and by any actuarial factors used in calculating the benefit payable at the time of participant's previous retirement. In no event shall the resulting benefit be less than the benefit payable at the time of participant's previous retirement. A retired participant who is reemployed as a full-time employee or returns to elective or appointive office shall not be authorized to change participant's beneficiary on participant's subsequent retirement or to name a beneficiary in retirement if one had not been previously named. For the purposes of this section 6, any such participant's credited service subsequent to participant's reemployment by the employer or holding of an elective or appointive office shall commence as of the date of participant's reemployment as a full-time employee or as of the date participant's term of office begins, whichever is applicable.

b. Any disability retirement benefit payable under this plan to any participant shall be suspended as of the date participant's disability ceases. In any case where the payment of a participant's disability retirement benefit shall have been so suspended, the period of absence from employment due to such disability shall be treated as a leave of absence without pay and the provisions of article III, section 5 shall apply except that such period of absence shall not be counted as credited future service. Any participant who shall have retired or been retired pursuant to the provisions of article IV, section 5 and who dies or who has been or shall be subsequently declared ineligible for a disability retirement benefit because of a cessation of such disability shall have a right to any benefit afforded under any other provision of this plan to which participant or participant's beneficiary might otherwise be entitled. In such a case, any disability retirement payments made prior to the date participant's disability ceases or is declared to no longer exist shall be retained by the retiree and disregarded in computing any other benefit payable under this plan."

(e)

Such ordinance is further amended by striking section 3 and section 4 from article VII, and substituting in lieu thereof, a new section 3 and section 4, to read as follows:

"Section 3. Termination of employment before retirement. A participant, other than an elected or appointed member of the governing authority, whose employment is terminated under any of the following conditions for any reason other than death or retirement shall be entitled to a vested right in participant's accrued benefit. Payment of such vested retirement benefit shall commence on the first day of the month following participant's normal or early retirement date at the option of the participant and shall be payable on the first day of each month thereafter during the life of the participant. The amount of such monthly retirement benefit shall be computed in the manner prescribed for normal or early retirement in article V herein, but based upon participant's final average earnings and total credited service up to the participant's date of termination of employment with the employer. The conditions for a vested retirement benefit under this section shall be one of the following:

a. A participant whose employment is terminated voluntarily or involuntarily shall be entitled to a vested benefit if participant has completed a minimum of ten (10) years of total credited service in the plan; or,

b. A participant whose employment is terminated involuntarily and without cause shall be entitled to a vested benefit if participant has completed a minimum of five (5) years of credited service in the plan. For the purpose of this condition, "cause" for dismissal shall mean negligence or inefficiency in performing the duties of the position held, unfitness to perform assigned duties, insubordination, or misconduct reflecting discredit on the employer or upon the governing authority; or,

c. A participant whose employment is terminated because participant is disabled shall be entitled to a vested benefit provided participant's period of disability, as determined by the social security administration, began on or before the participant's date of termination of employment as a result of a disability. No disability benefit shall be payable unless application for such benefit is made within one (1) year after employment is terminated as a result of such disability, except when a delay is caused by a pendency of a disability determination by the social security administration."

"Section 4. Termination of employment before retirement; portability.

a. A participant, other than an elected or appointed member of the governing authority, whose employment is terminated either voluntarily or involuntarily for any reason other than death, disability, or retirement, after participation in the plan, shall have a right to a vested retirement benefit under the conditions set forth below. The amount of the monthly retirement benefit shall be computed in the manner prescribed for normal or early retirement in article V herein, but based on participant's final average earnings and total credited service up to the participant's date of termination of employment with the employer. Payment of such benefit shall commence, at the option of the participant, on the first day of the month following participant's normal or early retirement date as prescribed in the plan and shall be payable on the first day of each month thereafter, provided:

(1)

That any future employer be a JMEBS employer which maintains a JMEBS retirement plan with a provision on portability that is the same or substantially similar to this section 4; and,

(2)

That to be entitled to any benefits under the provisions of this plan, the participant must meet, through participant's total credited service with all JMEBS employers, the service requirements for vesting as provided for herein; and,

(3)

That each break in employment between JMEBS employers shall not exceed five (5) years.

b. In the event the participant's immediately preceding employment was with a JMEBS employer or employers, the service performed for such former employer or employers shall be used for the purpose of qualifying the participant for vesting under this plan. In no event shall service with another JMEBS employer be used to calculate the benefit amount due the participant from this employer.

c. In the event the employer is participant's final JMEBS employer and the plan allows delayed retirement beyond the normal retirement date, the benefit under this article VII, section 4, shall begin when the participant retires and shall be computed as prescribed in article V, section 3."

(f)

Such ordinance is further amended by striking section 1 from article IX, and substituting in lieu thereof, a new section 1, to read as follows:

"Section 1. Employer contributions. The employer shall make the necessary contributions to fund this retirement plan. The amount of these contributions shall be based upon the actuarial assumptions adopted by the board of trustees, the benefits provided in this plan, and the number of participants and their respective ages, earnings, and lengths of creditable service and such other factors as the board of trustees shall deem appropriate to assure proper funding of this plan. Contributions by the employer shall be applied as necessary to assure the payment of accrued benefits to participants and beneficiaries. Contributions received by JMEBS by the last day of any month shall accrue interest from the first day of the following month."

(g)

The rights and obligations under the plan with respect to persons whose employment or term of office with the city was terminated for any reason whatsoever prior to the effective date of this amendment are fixed and shall be governed by such plan as existed and was in effect at the time of such termination.

(h)

The effective date of these amendments shall be July 1, 1989.

(Ord. of 6-12-89, §§ 1—8)