§ 12-5. Same—Amendments of 1990.

(a)

Article II—Section 25. 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 said plan between the city and the Georgia Municipal Employees Benefit System as provided by O.C.G.A. § 47-5-1 et seq. is hereby amended by striking section 25 from article II and substituting in lieu thereof a new section 25 to read as follows:

"Section 25. Credited past service shall mean the number of years and complete months of past service:

a. Of an eligible employee employed on the effective date of the plan.

b. Of an eligible employee not employed on the effective date of the plan who had service prior to such effective date provided that, subsequent to such effective date, the employee performs the lesser of: Service and leave of absence equal to the break in service or service and leave of absence equal to five (5) years.

c. Of an eligible employee whose initial employment date is subsequent to the effective date of the plan; however, said employee's credited past service shall only be the number of years and complete months of continuous service from his latest employment date to his enrollment date.

d. Of an elected or appointed member of the governing authority who is, on the effective date of the plan, serving as an eligible employee or as an elected or appointed member of the governing authority."

(b)

Same—Section 27. Said ordinance is further amended by striking section 27 from article II and substituting in lieu thereof a new section 27 to read as follows:

"Section 27. Credited future service shall mean the amount of future service of a participant except for a participant who has a break in service; in which case, credited future service shall be limited to service subsequent to the most recent employment date unless such period of service, subsequent to his most recent employment date, the employee performs the lesser of: Service and leave of absence equal to the break in service or service and leave of absence equal to five (5) years."

(c)

Same—Sections 30, 31. Said ordinance is further amended by striking sections 30 and 31 from article II and substituting in lieu thereof new sections 30 and 31 to read as follows:

"Section 30. Earnings shall mean the total normal compensation paid to a full-time employee but shall exclude compensation for reimbursed expenses and other unusual compensation. Earnings shall also include overtime, holiday, sick, vacation pay and compensation deferred and redirected pursuant to the Internal Revenue Code.

Section 31. Annual earnings shall mean the earnings which have been paid to a participant for service rendered during any consecutive twelve-calendar-month period preceding the most recent termination. It shall be limited to such maximum amount, if any, as may be prescribed in article V, section 1b(4), of the plan."

(d)

Same—Section 44. Said ordinance is further amended by striking section 44 from article II and substituting in lieu thereof a new section 44 to read as follows:

"Section 44. Vesting, vested right, vested benefit shall mean the rights of a terminated participant as specified in article VII of the plan."

(e)

Same—Section 46. Said ordinance is further amended by striking section 46 from article II and substituting in lieu thereof a new section 46 to read as follows:

"Section 46. Disability shall mean:

a. 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; provided, however:

(1)

Such disability commenced on a specified date during the period of the participant's employment with the employer; and

(2)

Such disability was not self-inflicted, incurred in military service, incurred in the commission of a felonious enterprise or the result of the use of narcotics or drugs or habitual use of alcohol; and

(3)

Such disability will be permanent and continuous during the remainder of the participant's life; or

b. A participant who is not disabled in accordance with the above definition of disability solely because he lacks the quarters of social security coverage required to receive a disability insurance benefit under the Federal Social Security Act, as amended, shall be under disability if the pension committee shall determine that he is permanently incapacitated on the basis of a certificate signed by two (2) physicians (one (1) physician selected and paid by the disabled participant and one (1) physician selected and paid by the employer) stating that:

(1)

Such participant is permanently and totally physically or mentally disabled by anatomical, physiological or psychological abnormalities that are demonstrable by medically acceptable clinical and laboratory diagnostic techniques so as to be prevented from engaging in any occupation or employment whatsoever for remuneration or profit; and

(2)

Such disability commenced on a specified date during the period of the participant's employment with the employer; and

(3)

Such disability will be permanent and continuous during the remainder of the participant's life; and

(4)

Such disability was not self-inflicted, incurred in military service, incurred in the commission of a felonious enterprise or the result of the use of narcotics or drugs or habitual alcoholism.

c. The pension committee shall have the right to require the participant who is under disability to be examined by a physician chosen by the pension committee to confirm the continuation of a disability."

(f)

Same—Section 48. Said ordinance is further amended by striking section 48 from article II and substituting in lieu thereof a new section 48 to read as follows:

"Section 48. Disability retirement date shall mean the first day of the first calendar month in which a participant becomes entitled to receive a disability benefit as provided in article IV, sections 1 and 5. However, in no event shall said disability retirement date be earlier than one (1) calendar month following his termination of employment as a result of a disability."

(g)

Article III—Section 1. Said ordinance is further amended by striking class 3 of section 1, article III.

(h)

Same—Section 3d. Said ordinance is further amended by striking subparagraphs (3) and (4) from article III, section 3d, and substituting in lieu thereof, new subparagraphs (3) and (4) to read as follows:

"(3)

A former participant who is reemployed in an eligible employee class after being on an authorized leave of absence and who meets the provisions of article III, section 5a, shall not be deemed to have broken continuity of service and may resume participation on the first day of the month coinciding with or next following the month in which he is reemployed in accordance with the terms of the leave as approved by the governing authority; or

(4)

A former participant who is reemployed in an eligible employee class after a period of service in the armed forces of the United States and who meets the provisions of article III, section 5b, shall not be deemed to have broken continuity of service and may resume participation on the first day of the month coinciding with or next following the month in which he is reemployed; and the time he was absent shall be taken into account for the purpose of calculating benefits under the plan."

(i)

Same—Section 5. Said ordinance is further amended by striking section 5 from article III and substituting in lieu thereof a new section 5 to read as follows:

"Section 5. Leaves of absence.

a. General leaves of absence. The governing authority shall determine the date of expiration of a leave of absence granted to a participant. Such periods of absence shall not be counted as credited future service for the purpose of computing a benefit hereunder unless the leave, as authorized by the governing authority, specifically permits such participant to continue accumulating credit future service during the authorized leave of absence. Such participant shall, for the purposes of the plan, not be deemed to have broken continuity of credited future service provided:

(1)

He was regularly employed by the employer immediately prior to his leave of absence; and

(2)

He makes application for reemployment on or before the date of expiration of a leave of absence; and

(3)

His reemployed as an eligible employee within ninety (90) days after such application.

b. Military leaves of absence. A former employee who is reemployed in a eligible employee class after service in the armed forces of the United States shall, for the purposes of the plan, not be deemed to have broken continuity of service, and all military service shall be counted for the purpose of computing a benefit provided:

(1)

He was regularly employed by the employer immediately prior to his military service; and

(2)

The plan was in effect on the date he left employment for such military service; and

(3)

He makes application for reemployment within ninety (90) days after he first becomes entitled to his discharge or release from service in the armed forces of the United States; and

(4)

He is reemployed as an eligible employee within ninety (90) days after such application.

c. If a participant or employee has not returned to his regular employment as an eligible employee in accordance with the provisions of paragraph a. or b. in this section 5, his interest, if any, under the plan shall be only such as existed at the commencement of such leave of absence."

(j)

Article IV, Section 5 Said ordinance is further amended by striking section 5 from article IV and substituting in lieu thereof 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 benefits 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 (1) time to more than one (1) type of retirement benefit granted under the plan."

(k)

Article V—Section 1b. Said ordinance is further amended by striking subparagraph (4) from article V, section 1b, and substituting in lieu thereof a new subparagraph (4) to read as follows:

"(4)

Maximum annual earnings to be used for computing final average earnings for benefit accrual shall not exceed two hundred thousand dollars ($200,000.00)."

(l)

Same—Section 7 Said ordinance is further amended by inserting a section 7 into article V to read as follows:

"Section 7. Limitation on annual benefit. A participant's annual benefit shall not exceed the lesser of: (1) one hundred (100) percent of the participant's high three-year average compensation, or (2) a dollar amount which is adjusted for inflation based on 215(i)(2)(A) of the Social Security Act. If a participant's total annual benefits are not in excess of ten thousand dollars ($10,000.00), this section shall not apply. Furthermore, if the participant retires before the age sixty-two (62), the limit shall be actuarilly reduced in accordance with Internal Revenue Code Section 415(b)(2)(C) and (F)."

(m)

Article V, Sections 4, 5. Said ordinance is further amended by striking section 4 from article VI and substituting in lieu thereof new sections 4 and 5 to read as follows:

"Section 4. Notwithstanding any other provision to the contrary, a participant's election of the form of benefit payment will be restricted to assure compliance with the minimum distribution incidental death benefit requirements of Internal Revenue Code Section 401(a)(9), equivalent of the present value of the total payments to be made to the participant and his joint annuitant or beneficiary in retirement.

Section 5. Rule for small annuities. The present value of a retirement fund benefit shall be distributed to the participant or terminated participant or the terminated participant's beneficiary if the benefit does not exceed Internal Revenue Code Section 411(a)(11)(a), Limit on the date of termination. The value of a participant's or terminated participant's benefit shall be determined in accordance with article VIII, section 7, on the date of the participant's termination."

(n)

Article VIII, Section 7 Said ordinance is further amended by striking section 7 from article VIII and substituting in lieu thereof a new section 7 to read as follows:

"Section 7. Other forms of payment. Other forms of benefit payment made under article VI, section 5, or upon plan termination or if required for compliance with Section 401(a)(9) of the Internal Revenue Code shall be computed on the basis of the actual age of the participant and/or beneficiary at the time of distribution and under the following actuarial assumptions:

a. Interest: Rates that would be used to value the benefits for a pension benefit guaranty corporation trusteed single-employer plan which terminates on the first day of the calendar year in which the distribution is made.

b. Mortality: The mortality basis in use at the time of payment by the pension benefit guaranty corporation for male retirees regardless of the actual sex of any participant or beneficiary.

c. Age at which payments begin: The greater of normal retirement date or the age at the time of distribution of the participant and/or beneficiary."

(o)

Article XV—Section 8. Said ordinance is further amended by striking section 8 from article XV and substituting in lieu thereof a new section 8 to read as follows:

"Section 8. Reserved."

(p)

Same—Section 11. Said ordinance is further amended by striking section 11 from article XV and substituting in lieu thereof a new section 11 to read as follows:

"Section 11. Errors in computation of benefits. Any overpayments or underpayments from the trust fund to a retired participant or to a beneficiary caused by errors of computation shall be corrected with interest compounded annually from the date of the miscalculation. The rate applied shall be actuarial assumption rate utilized by the plan actuary for estimating future plan investment earnings as of the date of the correction. Overpayments shall be charged against retirement payments next succeeding the correction. Underpayments shall be made up from the trust fund."

(q)

Throughout plan. Said ordinance is further amended by striking the phrase joint municipal employees benefit system and the acronym JMEBS throughout the plan and the joint trust agreement and substituting in lieu thereof the phrase Georgia Municipal Employees Benefit System and the acronym GMEBS.

(r)

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

(s)

Effective date. The effective date of these amendments shall be October 1, 1990.

(Ord. of 9-24-90, §§ 1—19)