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ORDINANCE 2002-6-6536
AN ORDINANCE PROVIDING FOR AN
ADDENDUM TO THE POLICEMEN'S AND
FIREFIGHTERS' RETIREMENT FUND OF THE
CITY OF PADUCAH, KENTUCKY, UNDER KRS
CHAPTER 95
WHEREAS, the actuary who has performed an actuarial study of the
Policemen's and Firefighters' Retirement Fund of the City of Paducah, Kentucky, as
set forth in KRS Chapter 95, has recommended that the City of Paducah adopt an
addendum to this plan so as to conform the plan with the various requirements
required of a qualified plan under Internal Revenue Code Section 401(a); and
WHEREAS, having the plan comply and conform with this code
requirement is crucial to permitting the plan to extend tax benefits of a qualified
plan to the members and beneficiaries that are, or will be receiving, benefits from
the plan.
NOW, THEREFORE, the City of Paducah, Kentucky, hereby adds the
following terms to be known as Addendum I to the Policemen's and Firefighters'
Retirement Fund of the City of Paducah, Kentucky, and that such terms apply to
and be deemed a part of such Fund:
Section 1 --Intention. It is the intention of the City that the Plan will comply
with all of the requirements of Internal Revenue Code Section 401(a) that are
applicable to plans that are sponsored by state or local governments or political
subdivisions. Furthermore, it is the intention of The City that this plan be
maintained and operated in the form of a tax -qualified plan and that the retirees
and beneficiaries receiving benefits from this plan enjoy the tax -benefits of the plans
qualified status
Section 2—Definitions. The terms below shall maintain the following
definitions for the purposes of this Addendum I.
(a) "City" means the City of Paducah, Kentucky.
(b) "Code" means the Internal Revenue Code of 1986, and the rulings
and regulations promulgated thereunder, all as amended and in effect
from time to time.
the City of Paducah, Kentucky as provided for in Title IX of the
Kentucky Revised Statutes Annotated, Counties Cities and other
Local Units Chapter 95, City Police and Fire Departments, Police and
Firefighters ` Retirement Fund in Cities of the Second Class, and as
amended by this Addendum I.
(d) "Trust" means the separate fund established by Sections 95.842, 95.843,
95.869, 95.871, and 95.872 of the Kentucky Revised Statutes Annotated.
This language is intended to establish a Trust under Kentucky State law and
satisfies Code section 401(a).
Section 3 --Benefit Limitations under Code Section 415.
(a) The Plan is subject to the limitations on benefits and contributions imposed
by Code Section 415 as amended from time to time. Code section 415 is
hereby incorporated into this Plan by this reference. The limitation year
shall be the Plan Year.
(b) To the extent that a member participates in multiple plans, benefits under
this Plan shall be restricted to the extent necessary to comply with the
requirements of Code Section 415(e) prior to the restriction of contribution
or benefits under any other plan. This Section 1.02 shall cease to apply
effective January 1, 2000.
Section 4 — Limit on Compensation. For purposes of computing any benefit under
the Plan or any contribution made to the Plan, there shall be a limit on the amount of
compensation that may be considered in any plan year for any member. This limit on
compensation shall be based upon the dollar limitation provided for under Code section
401(a)(17) as in effect at the time the compensation is earned.
Section 5 — Forfeitures. Pursuant to Code section 401(a)(8) forfeitures under section
95.866 of the Kentucky Revised Statutes Annotated may not be applied to increase the
benefits of any member or beneficiary that would otherwise receive a benefit under terms of
i
this Plan.
Section 6 — Minimum Distributions. Effective July 1, 1989, notwithstanding any
provisions of the plan to the contrary, the following provisions shall apply.
310
(a) A member shall begin to receive his plan benefits no later than April 1 of the
calendar year following the later of (i) the year in which he attains age 70 Yz;
or (ii) the year in which he retires. However, in no case shall the member's
benefit commence later than the date required by section 401(a)(9) of the
Code, and in no case shall the distribution violate the minimum distribution
incidental death benefit requirements of the regulations under section
401(a)(9) of the Code.
(b) Upon the death of a member after distribution of his benefit has
commenced, the remaining portion of his interest in the plan will be
distributed at least as rapidly as under the method of distribution in effect
prior to the member's death.
(c) Upon the death of a member before distribution of his benefit has
commenced, the member's entire interest will be distributed no later than 5
years after the member's death, except to the extent that an election,
otherwise permitted by the plan, is made in accordance with (1) or (2) below.
(1) If any portion of the member's interest is payable to a designated
beneficiary, the distributions may be made in substantially equal
installments over the life or life expectancy of the designated
beneficiary commencing no later than one year after the member's
death.
(2) If the designated beneficiary is the member's surviving spouse, the
date distributions are required to commence in accordance with (1)
above shall not be earlier than the date on which the member would
have attained age 70-%, and if the spouse dies before payments begin,
subsequent distributions shall be made as if the spouse had been the
member.
Section 7 -- Right to Direct Rollover.
(a) This section 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 under this section, a distributee may
elect, at the time and in the manner prescribed by the board of trustees, to
have any portion of an eligible rollover distribution paid directly to an
eligible retirement plan specified by the distributee in a direct rollover.
(b) Definitions
311
(1) Eligible rollover distribution: Shall be 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 of ten years or more; any distribution to the extent
such distribution is required under section 401(a)(9) of the Code; and
the portion of any distribution that is not includible in gross income.
(2) Eligible retirement plan: Shall mean 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 elilble 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.
(3) Distributee: Shall mean a member or former member, or the spouse
or former spouse (who is the alternate payee under a qualified
domestic relations order, as defined in section 414(p) of the Code) of
the member of former member, provided such person is entitled to
receive a benefit under the plan.
(4) Direct rollover: Shall mean a payment by the plan to the eligible
retirement plan specified by the distributee.
Section 8 - Qualified Military Service.
(a) A member whose service under the plan is interrupted by qualified military
service shall accrue benefits, as described in subsection (b) below. For
purposes of this section, qualified military service means any service in the
uniformed services (as defined in chapter 43 of title 38, United States Code)
by an individual if such individual is entitled to reemployment rights under
such chapter with respect to such service, and if the individual is actually
reemployed under such chapter.
312
(b) Upon reemployment following qualified military service, the member shall
be credited with months or years of employment, and years of participation,
(collectively referred to as "service") for purposes of computing benefits and
eligibility for benefits The member's service shall include all periods for
which he was credited on the last day before such qualified military service,
subject to the repayment requirement below. In addition, the member's
service shall include the period of qualified military service. If the member
has been paid any benefit with respect to service before the qualified military
leave, then his service following reemployment shall not include any such
service unless the member repays such benefit (without interest) to the plan
within the period beginning with the date of reemployment and continuing
for the lesser of (1) five years; or (2) an amount of time which is the period of
qualified military service multiplied by three.
Section 9 - Definitely Determinable Benefits. In compliance with Code section
401(a)(25) the Board shall adopt a table of factors or specify all actuarial assumptions that
are to be used to compute benefits to be paid by the Plan to a member or a beneficiary.
Section 10. This ordinance shall be read on two separate days and will
become effective upon summary publication pup=n"c KKRS Ch"r 424.
William Paxton,
ATTEST:
iW -7Y -�, I & � = k -
Tammara S. Brock, Asst. City Clerk
Introduced by the Board of Commissioners June 18, 2002
Adopted by the Board of Commissioners June 25, 2002
Recorded by Tammara S. Brock, Asst. City Clerk, June 25, 2002
Published by The Paducah Sun July 3, 2002
ORD\31401
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