2022-059 - Approving and Agreement Regarding Freeze of Fire Pension Fund & Authorizing the Mayor to Execute Same

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Section 9 Maximum Benefit 9.01 Annual Benefit. a. Effective date. The limitations of this Section apply in '�Limitation Years" beginning on or after July 1, 2007, except as otherwise provided herein. b. Annual Benefit. The "Annual Benefit" otherwise payable to a Firefighter under the Fund at any time shall not exceed the ��Defined Benefit Dollar Limitation". c. Adjustment if in two defined benefit plans. If the Firefighter is, or has ever been, a participant in another qualified defined benefit plan (without regard to whether the plan has been terminated) maintained by the City, the sum of the Firefighter's"Annual Benefits"from all such plans may not exceed the'�Defined Benefit Dollar Limitation". Where the Firefighter's employer-provided benefits under all such defined benefit plans (determined as of the same age) would exceed the "Defined Benefit Dollar Limitation" applicable at that age, the Firefighter's benefit shall be limited in accordance with the terms of the plans. d. Other rules applicable. The limitations of this Section shall be determined and applied taking into account the rules in Section 9.03. 9.02 Definitions. For purposes of this Section, the following definitions apply. a. Annual Benefit. "Annual Benefit" means a benefit that is payable annually in the form of a "Straight Life Annuity". Except as provided below, where a benefit is payable in a form other than a '�Straight Life Annuity", the benefit shall be adjusted to an actuarially equivalent "Straight Life Annuity" that begins at the same time as such other form of benefit and is payable on the first day of each month, before applying the limitations of this Section. For a Firefighter who has or will have distributions commencing at more than one annuity starting date, the '�Annual Benefit" shall be determined as of each such annuity starting date (and shall satisfy the limitations of this Section as of each such date), actuarially adjusting for past and future distributions of benefits commencing at the other annuity starting dates. For this purpose, the determination of whether a new annuity starting date has occurred shall be made without regard to Regulations §1.401(a)-20, Q&A 10(d), and with regard to Regulations §1.415(b)- 1(b)(1)(iii)(B) and (C). No actuarial adjustment to the benefit shall be made for (a) survivor benefits payable to a surviving spouse under a qualified joint and survivor annuity to the extent such benefits would not be payable if the Firefighter's benefit were paid in another form; (b) benefits that are not directly related to retirement benefits (such as a qualified disability benefit, preretirement incidental death benefits, and postretirement medical benefits); or (c) the inclusion in the form of benefit of an automatic benefit increase feature, provided the form of benefit is not subject to Code §417(e)(3) and would otherwise satisfy the limitations of this Section, and the Fund provides that the amount payable under the form of benefit in any "Limitation Year" shall not exceed the limits of this Section applicable at the annuity starting date, as increased in subsequent years pursuant to Code §415(d). For this purpose, an automatic benefit increase feature is included in a form of benefit if the form of benefit provides for automatic, periodic increases to the benefits paid in that form. 13