HomeMy WebLinkAboutResolutions - 1994.06.23 - 24128JUNE 23, 1994
REPORT (Misc. #94185)
BY: FINANCE COMMITTEE - JOHN P. MCCULLOCH, CHAIRPERSON
IN RE: DEFINED CONTRIBUTION RETIREMENT PLAN -
RECOMMENDATION FOR ADOPTION
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
The Finance Committee, having reviewed the above-referenced
resolution on June 16, 1994, reports with the recommendation that
the resolution be adopted.
Chairperson, on behalf of the Finance Committee, I move the
adoption of the foregoing Report,
FINANCE COMMITTEE
i'
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MISCELLANEOUS RESOLUTION # 9 4 1 8 5
BY: Personnel Committee, Marilyn E. Gosling, Chairperson
IN RE: DEFINED CONTRIBUTION RETIREMENT PLAN
June 23, 1994
To the Oakland County Board of Commissioners
' Chairperson, Ladies and Gentlemen,
WHEREAS the County of Oakland continues to explore opportunities to control personnel
costs while maintaining a competitive salary and benefit package, and
WHEREAS the cost of employee benefits continues to escalate at a rate exceeding
inflation making it necessary to develop economical alternatives, and
WHEREAS the cost of our current "Defined Benefit" Retirement System comprises a
major share of total benefit costs, and
WHEREAS a "Defined Contribution" Retirement System alternative would allow the
County to further contain costs while offering employees a more equitable stake in retirement
security, control of their retirement assets, portability and the potential for greater benefits on
retirement, and
WHEREAS a Committee comprised of representatives of the Board of Commissioners,
County Executive's Office, the Department of Management and Budget, Personnel Department
and the County Retirement Board, has confirmed the benefits of providing a Defined Contribution
Retirement Plan to new employees beginning July 1, 1994; and
WHEREAS the attached "Defined Contribution Retirement Plan" has been reviewed and
recommended for adoption by the County Executive, and
WHEREAS the approval of an alternate retirement plan requires the approval of the State
of Michigan State County Pension Plan Committee and the U.S. Internal Revenue Service, in
addition to authorization by the County Board of Commissioners.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners approves the
Defined Contribution Retirement Plan for new employees, effective July 1, 1994, as
contained in the attached report.
BE IT FURTHER RESOLVED, that the Secretary of the Plan is authorized to have
proper application made to the Treasury Department of the United States to obtain formal
approval of the said Defined Contribution Retirement System as a Qualified Plan and as a Tax
Exempt Trust as provided for under Sections 401 (a) , 404 and 501 (a) of the Internal Revenue
Code, and to employ competent counsel in the prosecution of such application, and to do such
other acts as shall be necessary hereunder to put the said Defined Contribution Retirement Plan
and Trust in operation; and
BE IT FURTHER RESOLVED, that this adoption and authorization of the Defined
Contribution Retirement Plan and Trust Agreement be and the same hereby is made expressly
contingent upon the approval of same by the Internal Revenue Service as a Qualified Plan and
as a Tax Exempt Trust as provided for under Sections 401 (a) , 404 and 501 (a) of the Internal
Revenue Code, and that the Corporation, through its attorneys, promptly submit said Defined
Contribution Retirement Plan and Trust Agreement for such approval, and
BE IT FURTHER RESOLVED that the Administration will return to the Board within
12 months with a plan to offer current employees the option to switch from their current Defined
Benefit Retirement Plan to the new Defined Contribution Plan.
BE IT FURTHER RESOLVED that the County's contribution shall be 5% of each non-
represented member's compensation and the County's contribution for represented members shall
be as determined in their separate bargaining agreement.
Chairperson, on behalf of the Personnel Committee, I move the adoption of the foregoing
resolution, subject to the approval of the State County Pension Plan Committee and the U.S.
Internal Revenue Service
LAW OFFICES MACDONALD AND noNKr+, rwrIFESSiONAL CORPORATION zoo EAST BROWN STREET. SUITE 200. BIRMINGHAM, MICHIGAN 411009 (RIO •41S,S940 EXECUTIVE SUMMARY OF THE
ADDITION OF A DEFINED CONTRIBUTION PLAN
TO THE OAKLAND COUNTY EMPLOYEES RETIREMENT SYSTEM
MIGIBILITY. New hires after June 30, 1994 covered by
the defined contribution plan. Once they have worked six
(6) months in a permanent position normally requiring 1,000
or more hours of work per year, they will be deemed to be a
member of the DC part of the Plan, unless they are in an
excluded position. The existing employees will ultimately
be given an election to choose between the existing Plan and
the DC part of the Plan. This election will be open for a
period of twelve (12) months. If an employee is currently
covered by the DB part of the Plan, they will not be
simultaneously covered by the DC part of the Plan.
MST. The cost to the County will depend upon the
group covering the individual employee. The cost will be a
flat percentage of annual W-2 compensation plus contribu-
tions to the County's Section 457 Plan. The amount actually
contributed will be determined by negotiation with the
separate County unions and for non-union employees by the
County Commissioners. Employees will be allowed to
contrLbute to the Plan on a non-deductible basis. Employees
will enter the Plan six (6) months after incurring their
first paid hour with the County. The Plan does not allow
loans to participants. It is contemplated that turnover
will ,ause short-service employees to "forfeit" part of the
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LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 710 EAST •ROW1F STREET, SUITE 700, DiRMINOHAIA, MICNIOAN 41009 OW) S4S•5940 County's contribution. These forfeitures will be used to
reducE the County's ongoing costs. If an employee
termirates employment for reason other than death,
attairment of Normal Retirement Age or employment-related
disability, then she will only be entitled to the following
percentage of her account balance:
Years of Credited Service Percentage vested
Less than 3 0%
3 but less than 4 20%
4 but less than 5 40%
5 but less than 6 60%
6 but less than 7 80%
7 years or more 100%
Norma] Retirement Age depends on the particular benefit
group as follows:
J. Benefit Group General - Option A.
Attainment of age 65 and 25 Years of
Credited Service or attainment of age 60
with 8 or more Years of Credited
Service.
Benefit Group General - Option B.
Attainment of age 55 and 25 Years of
Credited Service or attainment of age 60
with 8 or more Years of Credited
Service.
3. Benefit Group Sheriffs Department -
Deputies - Option C. 25 Years of
Credited Service regardless of age or
attainment of age 60 with B Years of
Credited Service.
Option Group Sheriffs Department - Command -
Option D. Attainment of age 50 with 25 Years
of Credited Service with the Sheriffs
Department or 55 with 25 Years of Credited
Service with the County or 60 with 8 Years of
Credited Service.
IBYEEIMMMULEENDINGLPIAMIBETIQN. Once a participant is
40% vested (has at least 4 Years of Credited Service with
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.4. •
4.
LAW OFFICES IOACOONALD AND GOREN, PROFCSSIONAL CORPORATION ZOO 'CAST HIROWN $TRCET, SUITe 200, •IRMINGHAM, MICHIGAN 4n00. (RIO) 11142-5940 the County), then they will be allowed to direct the
investment of their account.
DISTRIBUTION. Once an employee is entitled to a
distribution of their account, they will receive same in a
single payment.
DISABILITY BENEFIT. If the employee has 10 or more
Years of Credited Service when they take disability
retirment, then they will receive a distribution of the
value of their account in a lump-sum. If the disability is
the d3rect and proximate result of the Member's performance
of duties as an employee of the County, then the 10 Years of
Credited Service requirement is waived; and the Member is
deemed to be 100% vested in their account.
LIMITATION ON FIDUCIARY LIABILITY. The Plan is not
subject to the fiduciary requirements of the Employee
Retirement Income Security Act of 1974. Therefore, the
modern portfolio theory of investment is implemented. In
effec-:, rather than requiring each Plan asset to be invested
in a reasonable and prudent manner, the entire portfolio is
reviewed in its entirety to determine that the entire
portfolio has been invested in a "reasonable and prudent
manner." This concept applies to the initial selection of
investment alternatives and investments for participants who
are less than 40% vested.
TRANSITION &MOYERS. Any employee who is currently in
the DB part of the Plan will be given a twelve (12) month
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LAM OFFICES MACDONALD AND DowEN, emoreSSioNAL CONromATION 240 FAST linloWN STAtEt. SUITE 200, 8111141141314AM, MICHIGAN 48009 (urn) 845-1940 option to elect whether to participate in the DC part or
continue in the DB part. If they elect to transfer to the
DC pa:-t, they will automatically be 100% vested in the
transferred amount. They will, however, be subject to the
7-year vesting schedule for the County's post-December 31,
1993 contributions to the DC part. The advantage to the
employee is that they will be empowered to direct the
investment of their account. The investment options will be
between at least four (4) funds with the following
investment objectives. If a participant fails to direct the
investment of his account, then he is presumed to invest in
the "balanced fund":
3. Fixed income fund;
2. Common stock fund;
Money market fund;
4. U.S. Government money market fund
g' d. Balanced fund;
6. Aggressive growth fund;
7. GNMA mortgage securities fund; or
13. Index fund.
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LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 49009 (910) 445 5940 OAKLAND COUNTY EMPLOYEES
RETIREMENT SYSTEM
RESTATED RESOLUTION
JUNE. 1991 1994
As revised June 8, 1994
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 200 EAST BROWN STREET, SUITE 200. BIRMINGHAM, MICHIGAN 4E/0011 (ono) 643-5440 Index to the Oakland County Employees
Retirement System Restated Resolution
Section
Subject
Accounting
Adjustment of Account - other Adjustment 74
Appraisals during Plan Year 75
Assets in DB part not segregated 59
Employer contributions 56
Interest credits 60
Investment income 57
Member contributions 54
Expense reserve 56
Reserve for pension payments 55
Actuarial
Funding of DB and DC part 51
Administration
Annual report 46
Appeal of denied claim for benefits 40
Application for benefits 37
Correction of errors 63
Enforcement 89
Execution of Instrument 83
Indemnification by County 84
Internal Revenue Code qualification 64
Investments 47
Investment Manager 88
Investment options 81
Liability Insurance 85
Limitation on fiduciary liability 87
Retirement Commission
Administrative authority 41
Composition 42
Compensation 49
Employment of services 45
Investment authority 47
Meetings 44
Officers 45
Prohibited actions 48
Quorum 44
Records 44
Tables 50
Term of office 43
Vacancy 43
Voting 44
Pensions: commencement & termination 39
Pensions: payment 38
Service in multiple capacities 86
Setoff 62
Subrogation 62
LAW oFFiCES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 46.005 (.10) Credited Service
Earning 8
Forfeiture of 9
Intervening military service 11
Non-Intervening military service 12
Reciprocal retirement system 13
Reinstatement 10
Disability Benefits
Amount of pension 25
Duty incurred 26
Eligibility 24
Limitations on amount of pension 27
Re-examination 28
Suspension of pension 28
Termination of pension 28
Member Contributions
Amount of
Interest credited
Refund on termination of employment
Membership in Retirement System
Eligibility 4
Excluded positions 5
Termination of membership 6
Termination of Employment 79
Transition Rules 70
Vested termination 7
Miscellaneous Provisions
Allocation 71
Benefit groups - amount 16
Benefit groups - composition 14
Benefit groups - eligibility 15
Benefits not assignable 61
Compensation: definition of 3
Duration; Termination; Assumption; Merger 82
Error in Allocation 72
Final average compensation: definition of 3
Forfeitures 73
Fraud 65
Headings 68
Payment options available 23
Post retirement increases 35
Repeal 67
Severability 66
52
60
53
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 200 EASY EIROwN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 441000 (B10) 04S-S040 Normal Retirement Benefits
Age and service requirements 18
Amount of pension 19
Conditions 17
Effect of re-employment 22
Eligible Rollover Distributions 69
Fixed Accounts 76
Late Retirement 78
Maximum 20
Normal Retirement 77
Vested former Members 21
Survivor Benefits
Automatic - amount 30
Automatic - composition 29
Duty incurred 33
Death 80
Elective - amount 32
Elective - composition 31
Non-duplication 34
Retired Member 23
Refund of contributions - active Member 53
Refund of contributions - retired Member 36
LAW OFFICES MAc0oNALb AND GOREN, PROFESSIONAL CORPORATION 260 EAST GROWN , SUITE 200, BIRMINGHAM, MICHIGAN 46009 (•10) 646•1•40 Table of Contents
Section Page No
1 Retirement System Effective Date; Continuation; Purpose 1
2 Short Title; Application; Effective Date of Restatement 1
3 Definitions 2
4 Membership in Retirement System 8
5 Excluded Positions 8
6 Termination of Membership 9
7 Vested Termination of Membership 9
8 Credited Service; Earning of 10
9 Credited Service; Forfeiture of 10
10 Credited Service; Reinstatement of 10
11 Intervening Military Service; Conditions for 11
Credited Service
12 Non-intervening Military Service; Conditions for 11
Credited Service
13 Reciprocal Retirement System 12
14 Benefit groups; Composition of 12
15 Benefit Groups; Effect on Retirement Eligibility 13
16 Benefit groups; Effect on Pension Amount 13
17 Normal Retirement; Conditions for 13
18 Normal Retirement; Age and Service Requirements 14
19 Normal Retirement; Pension Amount 14
20 Normal Retirement; Pension Maximum 15
21 Retirement; Vested Former Member 15
22 Re-employment by County; Effect on Pension Payments 16
23 Form of payment of a pension 18
24 Disability Retirement; Conditions for 20
25 Disability Retirement; Pension or Benefits Amount; 20
Form of Payment
26 Disability Retirement; Special Provisions if 21
Duty Incurred
27 Disability Retirement; Limitation on Pension Amount 21
28 Disability Retirement; Continuation Subject to 22
Re-examination; Suspension/Termination of Pension
29 Survivor Pension; Conditions for Automatic Pension 23
to Spouse
30 Survivor Pension; Amount of Automatic Pension to Spouse 23
31 Survivor Pension; Elective Beneficiary; Conditions 23
for Coverage
32 Survivor Pension; Elective Beneficiary; Amount 24
of Pension
33 Survivor Pension; Special Provisions if Duty Incurred 24
34 Survivor Pension; Only One Pension Payable 25
35 Post-Retirement Benefit Increases 25
36 Guaranteed Minimum Aggregate Payout 27
37 Pensions; Application for 27
38 Pensions; Payment of 27
39 Pensions; Commencement, Duration and Change 27
40 Denial of Claim for Benefits; Appeal to 28
Retirement Commission
41 Retirement Commission; Authority and Responsibility 28
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 2150 EAST •ROWN STREET, SUITE 200, BIRMINGHAM, MICH IG A N 45005 0210 4145-5940 42 Retirement Commission; Composition of 29
43 Retirement Commission; Term of Office; Oath of Office; 29
Vacancies
44 Retirement Commission Meetings; Quorum; Voting; 30
Record of Proceedings
45 Retirement Commission; Officers; Services 30
46 Retirement Commission; Reports 31
47 Retirement Commission; Investment Authority and 32
Restrictions
48 Retirement Commission; Use of Monies and Assets; 33
Prohibited Actions
49 Retirement Commission; Compensation 33
50 Retirement Commission; Experience Tables and 34
Regular Interest
51 Financial Objective of the Retirement System; County 34
Contributions
52 Member Contributions; Amounts 38
53 Member Contributions; Refunds 42
54 Reserve for Accumulated Member Contributions 43
55 Reserve for Pension Payments 44
56 Reserve for Employer Contributions 44
57 Reserve for Undistributed Investment Income 45
58 Reserve for Administrative Expenses 45
59 Assets of DB Part not Segregated 45
60 Interest Credited to Reserve Accounts 45
61 Assignments Prohibited 46
62 Subrogation; Right of Setoff 47
63 Correction of Errors; Power to Amend 48
64 Internal Revenue Code Qualification 49
65 Fraud Penalty 50
66 Severability 50
67 Repeal 50
68 Headings 50
69 Eligible Rollover Distributions 51
70 Transition Rules Relating to First Plan Year and 53
Employees Transferring from the Oakland County
Employees' Retirement System as Restated June, 1991
71 Provisional Accounts 54
72 Error in Allocation 54
73 Forfeitures 55
74 Adjustment of Account - Other Adjustment 55
75 Appraisals During Plan Year 56
76 Fixed Accounts 56
77 Normal Retirement 58
78 Late Retirement 58
79 Termination of Employment 58
80 Death 59
81 Investment Options (Directed Investment) 59
82 Duration; Termination; Assumption 61
83 Execution of Instruments 63
84 Indemnification by County 63
85 Liability Insurance 63
86 Service in Multiple Capacities 64
87 Limitations on Fiduciary Liability 64
88 Investment Manager 64
89 Enforcement 65
PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, •IRMINGHAM, MICHIGAN 4500* (510) 64S 5540 LAW OFFICES January, 19_9.1 1994
A RESOLUTION AMENDING AND RESTATING THE OAKLAND COUNTY
EMPLOYEES' RETIREMENT SYSTEM RESOLUTION TO INCORPORATE
ACCUMULATED CHANGES, REMOVE OBSOLETE MATERIAL, AND TO CONFORM
TO APPLICABLE PROVISIONS OF STATE AND FEDERAL LAW AND TO ADD
A DEFINED CONTRIBUTION COMPONENT.
THE COUNTY OF OAKLAND RESOLVES:
That the Oakland County Employees' Retirement System
resolution is hereby amended and restated in its entirety to
read as follows:
Retirement System Effective Date; Continuation; Purpose.
Section 1. The Oakland County Employees' Retirement System
established effective January 1, 1946 under authority of
Section 12a of Act No. 156, Public Acts of 1851, as amended,
is continued for the purpose of providing retirement income
to qualifying employees and former employees, and survivor
income to their qualifying beneficiaries. The Retirement
System does not provide health insurance. THE RETIREMENT
SYSTEM AS IT EXISTED BEFORE JANUARY 1, 1994 CONSISTED SOLELY
OF A DEFINED BENEFIT PLAN (SOMETIMES CALLED "DB PART").
EFFECTIVE AS HEREAFTER IDENTIFIED, THE RETIREMENT SYSTEM
SHALL BE AMENDED FOR ALL EMPLOYEES HIRED AFTER THE
APPROPRIATE EFFECTIVE DATE TO CONSIST OF A DEFINED
CONTRIBUTION PART (SOMETIMES CALLED "DC PART"). EFFECTIVE AS
HEREINAFTER IDENTIFIED, MEMBERS OF THE RETIREMENT SYSTEM WHO
WERE HIRED BEFORE THE APPROPRIATE EFFECTIVE DATE SHALL HAVE
AN ELECTION AS DESCRIBED IN SECTION 70 TO BECOME A MEMBER OF
THE DC PART OF THIS RETIREMENT SYSTEM.
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4
0 a u 4 Section 2. (a) This resolution may be cited as the 1994
Oakland County Retirement Resolution.
(b) This Restatement will apply to individuals employed
by the County on and after the APPROPRIATE Effective Date a4
tba—tet,amesioit. The retirement rights of an individual
whose County employment terminated before the APPROPRIATE
Effective Date of this Restatement will SHALL be governed by
the provisions of the Retirement System Resolution in effect
on the date the individual last terminated County employment.
Short Title; Application; Effective Date of Restatement.
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LAW OFFICE ACDONALD AND GoREN, p6OFE5SIONAL CORPORATION 260 EAST •R0wN STREET, SUITE 200, •IRMINGHAM, MICHIGAN 46009 (610) 645.61140 THE RETIREMENT RIGHTS OF AN INDIVIDUAL WHOSE COUNTY
EMPLOYMENT BEGAN BEFORE THE APPROPRIATE EFFECTIVE DATE SHALL
BE GOVERNED BY THE PROVISIONS OF THE RETIREMENT SYSTEM
RESOLUTION AS IN EFFECT ON JUNE 30, 1994, UNLESS THE
INDIVIDUAL ELECTS TO PARTICIPATE IN THE DC PART OF THE
RETIREMENT SYSTEM.
(c) This resolution shall become effective immedlataly
FOR EMPLOYEES HIRED ON OR AFTER THE APPROPRIATE EFFECTIVE
DATE upon final passage by the Board of Commissioners of the
County of Oakland and approval by the County Pension Plan
Committee.
Definitions.
Section 3. As used in this resolution THESE TERMS SHALL HAVE
THE FOLLOWING MEANINGS UNLESS THE CONTEXT CLEARLY INDICATES
OR REQUIRES OTHERWISE:
(A) ACCOUNT MEANS A SEPARATE ACCOUNT OR BOOKKEEPING
ENTRY KEPT TO RECORD EACH MEMBER'S INTEREST IN THE DC PART OF
THIS RETIREMENT SYSTEM.
(B) ACCRUED BENEFIT OR ACCOUNT BALANCE MEANS FOR THE DC
PART, THE FAIR MARKET VALUE OF ASSETS CREDITED TO A MEMBER'S
ACCOUNT. ACCRUED BENEFIT FOR THE DB PART MEANS THE NORMAL
RETIREMENT BENEFIT DETERMINED IN SECTION 19 AT ANY POINT IN
TIME.
+a+ (C) Accumulated Member contributions means the
balance in a Member's individual account in the DB PART OF
THIS RETIREMENT SYSTEM AND HELD IN reserve for Member
contributions TO THE DB PART, IF ANY.
(D) AGE MEANS FOR THE PURPOSE OF DETERMINING NORMAL
RETIREMENT AGE, THE CHRONOLOGICAL AGE OF A PERSON.
OTHERWISE, AGE MEANS AGE AT NEAREST BIRTHDAY.
(E) ALLOCATION MEAN ALLOCATION OF THE COUNTY'S
CONTRIBUTION TO THE DC PART. THE ALLOCATION TO THE
PROVISIONAL ACCOUNT OF EACH MEMBER OF GROUP A WHO IS
PARTICIPATING IN THE DC PART SHALL BE % OF EACH
MEMBER'S COMPENSATION FOR THE PLAN YEAR. THE ALLOCATION TO
THE PROVISIONAL ACCOUNT OF EACH MEMBER OF GROUP B WHO IS
PARTICIPATING IN THE DC PART SHALL BE % OF EACH
MEMBER'S COMPENSATION FOR THE PLAN YEAR. THE ALLOCATION TO
THE PROVISIONAL ACCOUNT OF EACH MEMBER OF GROUP C WHO IS
PARTICIPATING IN THE DC PART SHALL BE % OF EACH
MEMBER'S COMPENSATION FOR THE PLAN YEAR. THE ALLOCATION TO
THE PROVISIONAL ACCOUNT OF EACH MEMBER OF GROUP D WHO IS
PARTICIPATING IN THE DC PART SHALL BE % OF EACH MEMBER'S
COMPENSATION FOR THE PLAN YEAR.
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LAW OFFICES MACOONRLD AND GOREN, PROFESSIONAL CORPORATION 2E0 EAST BROWN STREET, SUITE 200, RIRMINGKAm, MICHIGAN 480012 (RIO e45-3040 (F) ANNIVERSARY DATE MEANS DECEMBER 31.
(G) ANNUAL ADDITION MEANS FOR EACH MEMBER, THE SUM OF:
(1) THE COUNTY'S CONTRIBUTION TO ALL DEFINED CONTRIBUTION
PLANS; (2) THE MEMBER'S NON-DEDUCTIBLE VOLUNTARY
CONTRIBUTION; (3) ANY FORFEITURES ALLOCATED TO THE MEMBER'S
ACCOUNT; (4) AMOUNTS ALLOCATED AFTER MARCH 31, 1984, TO A
CODE SECTION 415(1)(2) INDIVIDUAL MEDICAL ACCOUNT WHICH IS
PART OF A PENSION OR ANNUITY PLAN MAINTAINED BY THE EMPLOYER;
AND (5) AMOUNTS DERIVED FROM CONTRIBUTIONS PAID OR ACCRUED
AFTER DECEMBER 31, 1985, FOR TAXABLE YEARS THEREAFTER, THAT
ARE ATTRIBUTABLE TO POST-RETIREMENT MEDICAL BENEFITS
ALLOCATED TO THE SEPARATE ACCOUNT OF A KEY EMPLOYEE AS
DEFINED IN CODE SECTION 419A(D)(3) UNDER A CODE SECTION
419(E) WELFARE BENEFIT FUND. FOR THE PURPOSES OF (2), MEMBER
CONTRIBUTIONS DO NOT INCLUDE: (I) ANY ROLLOVER CONTRIBUTIONS
[AS DEFINED IN CODE SECTIONS 402(A)(5), 403(A)(4), 403(B)(8)
AND 408(D)(3)]; (II) EMPLOYEE CONTRIBUTIONS TO A CODE SECTION
219(A) SIMPLIFIED EMPLOYEE PENSION PLAN, IF DEDUCTIBLE; AND
(III) CODE SECTION 72(0)(5) DEDUCTIBLE EMPLOYEE
CONTRIBUTIONS.
(-b-).(H) Beneficiary means an individual who is being
paid or is entitled to the future payment of a-peas-Lon
BENEFITS for reason other than the individual's Membership in
the Retirement System.
(I) BENEFIT GROUPS. THE FOLLOWING BENEFIT GROUPS ARE
DESIGNATED FOR THE PURPOSE OF DETERMINING BENEFIT ELIGIBILITY
CONDITIONS AND BENEFIT AMOUNTS:
(1) BENEFIT GROUP GENERAL - OPTION A. ALL MEMBERS
NOT INCLUDED IN BENEFIT GROUP SHERIFF'S DEPARTMENT WHOSE
EMPLOYMENT AGREEMENTS WITH THE COUNTY INDICATE THAT THEY ARE
OPTION A EMPLOYEES.
(2) BENEFIT GROUP GENERAL - OPTION B. ALL MEMBERS
NOT INCLUDED IN BENEFIT GROUP SHERIFF'S DEPARTMENT WHOSE
EMPLOYMENT AGREEMENTS WITH THE COUNTY INDICATE THAT THEY ARE
OPTION B EMPLOYEES.
(3) BENEFIT GROUP SHERIFF'S DEPARTMENT - DEPUTY
SHERIFF'S ASSOCIATION - OPTION C. ALL MEMBERS EMPLOYED BY
THE SHERIFF'S DEPARTMENT WHO ARE COVERED BY A BARGAINING
AGREEMENT BETWEEN THE COUNTY AND THE OAKLAND COUNTY DEPUTY
SHERIFFS ASSOCIATION.
(4) BENEFIT GROUP SHERIFF'S DEPARTMENT - COMMAND
ASSOCIATION - OPTION D. ALL MEMBERS EMPLOYED BY THE
SHERIFF'S DEPARTMENT WHO ARE COVERED BY A BARGAINING
AGREEMENT BETWEEN THE COUNTY AND THE COMMAND OFFICERS
ASSOCIATION.
A
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LAW OFFICES MACDONALD AND GDEN, PROFESSIONAL CORPORATION 260 EAST DROWN STREET. SUITE 200. BIRMINGHAM, MICHIGAN 460061 (RIO 645-3940 (J) CODE MEANS THE INTERNAL REVENUE CODE OF 1986, AS
NOW OR HEREAFTER AMENDED, OR AS SUPERSEDED BY LAWS OF SIMILAR
EFFECT.
+c--).(K) Compensation means the salary or wages paid in
money to an employee for personal services rendered the
County AS REFLECTED ON HIS/HER W-2 while a Member of the
Retirement System OR DEFERRED FROM CURRENT TAXATION UNDER
CODE SECTION 457. Salary and wages shall include overtime
pay; longevity pay; payments in consideration of unused
vacation and sick leave to the extent permitted under the
Member's collective bargaining agreement or the merit system
rules. Compensation shall not include any remuneration or
reimbursement not specifically stated to be included.
NOTWITHSTANDING THE ABOVE, COMPENSATION SHALL INCLUDE ANY
AMOUNT WHICH IS CONTRIBUTED BY THE COUNTY PURSUANT TO A
SALARY REDUCTION AGREEMENT AND WHICH IS NOT INCLUDIBLE IN THE
GROSS INCOME OF THE EMPLOYEE UNDER CODE SECTIONS 125,
402(A)(8), 402(H), 403(8) OR 457. FOR PLAN YEARS ENDING
BEFORE DECEMBER 31, 1995 BUT AFTER DECEMBER 31, 1993, SAME
SHALL NOT EXCEED $200,000 SUBJECT TO THE FOLLOWING
ADJUSTMENT. THIS LIMITATION SHALL BE ADJUSTED BY THE
SECRETARY OF THE TREASURY AT THE SAME TIME AND IN THE SAME
MANNER AS UNDER CODE SECTION 415(D), EXCEPT THAT THE DOLLAR
INCREASE IN EFFECT ON JANUARY 1 OF ANY CALENDAR YEAR SHALL BE
EFFECTIVE THE PLAN YEARS BEGINNING IN SUCH CALENDAR YEAR AND
THE FIRST ADJUSTMENT SHALL BE FOR THE PLAN YEAR BEGINNING
JANUARY 1, 1990. THE ANNUAL COMPENSATION OF EACH MEMBER
TAKEN INTO ACCOUNT FOR ANY PLAN YEAR BEGINNING ON OR AFTER
JANUARY 1, 1996 SHALL NOT EXCEED THE OBRA '93 ANNUAL
COMPENSATION LIMIT. THE OBRA '93 ANNUAL COMPENSATION LIMIT
IS $150,000, AS ADJUSTED BY THE COMMISSIONER FOR INCREASES IN
THE COST OF LIVING IN ACCORDANCE WITH CODE SECTION
401(A)(17)(B). THE COST OF LIVING ADJUSTMENT IN EFFECT FOR A
CALENDAR YEAR APPLIES TO ANY PERIOD, NOT EXCEEDING 12 MONTHS,
OVER WHICH COMPENSATION IS DETERMINED (DETERMINATION PERIOD)
BEGINNING IN SUCH CALENDAR YEAR. IF A DETERMINATION PERIOD
CONSISTS OF FEWER THAN 12 MONTHS, THE OBRA '93 ANNUAL
COMPENSATION LIMIT SHALL BE MULTIPLIED BY A FRACTION, THE
NUMERATOR OF WHICH IS THE NUMBER OF MONTHS IN THE
DETERMINATION PERIOD, AND THE DENOMINATOR OF WHICH IS 12.
FOR PLAN YEARS BEGINNING ON OR AFTER JANUARY 1, 1996,
ANY REFERENCE IN THIS RETIREMENT SYSTEM TO THE LIMITATION
UNDER CODE SECTION 401(A)(17) SHALL MEAN THE OBRA '93 ANNUAL
COMPENSATION LIMIT SET FORTH IN THIS PROVISION.
IF COMPENSATION FOR ANY PRIOR DETERMINATION PERIOD IS
TAKEN INTO ACCOUNT IN DETERMINING AN EMPLOYEE'S BENEFITS
ACCRUING IN THE CURRENT PLAN YEAR, THE COMPENSATION FOR THAT
PRIOR DETERMINATION PERIOD IS SUBJECT TO THE OBRA '93 ANNUAL
COMPENSATION LIMIT IN EFFECT FOR THAT PRIOR DETERMINATION
-4-
PERIOD. FOR THIS PURPOSE, FOR DETERMINATION PERIODS
BEGINNING BEFORE THE FIRST DAY OF THE FIRST PLAN YEAR
BEGINNING ON OR AFTER JANUARY 1, 1996, THE OBRA '93 ANNUAL
COMPENSATION LIMIT IS $150,000. 0
IN DETERMINING A MEMBER'S COMPENSATION FOR PURPOSES OF O
s. THIS LIMITATION, THE RULES OF CODE SECTION 414(Q)(6) SHALL
APPLY, EXCEPT 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.
O IF, AS A RESULT OF THE APPLICATION OF SUCH RULES THE ADJUSTED
• LIMITATION IS EXCEEDED, THEN THE LIMITATION SHALL BE
• ALLOCATED TO THE AFFECTED INDIVIDUALS' COMPENSATION (AS
• DETERMINED UNDER THIS SECTION BUT BEFORE APPLICATION OF THIS 0 • LIMITATION) IN THE FOLLOWING MANNER. THE LIMITATION SHALL BE
PRORATED AMONG THE AFFECTED INDIVIDUALS IN PROPORTION TO EACH
SUCH INDIVIDUAL'S COMPENSATION AS DETERMINED UNDER THIS
(L) CONTRIBUTIONS MEANS ONLY THOSE CONTRIBUTIONS MADE 0 BY THE COUNTY, UNLESS OTHERWISE INDICATED. THE AMOUNT OF THE
• COUNTY'S CONTRIBUTION TO THE DC PART SHALL BE THE AMOUNT 0 • NECESSARY TO FUND THE ALLOCATION OF ALL ACTIVE MEMBERS
O ENTITLED TO AN ALLOCATION FOR EACH PAY PERIOD.
0
THE COUNTY SHALL REDUCE ITS CONTRIBUTION TO THE DC PART
O BY THE AMOUNT FORFEITED SINCE THE LAST ANNIVERSARY DATE.
El
444(M) County OR EMPLOYER means Oakland County, State
of Michigan, and its various offices, boards and departments,
• and shall include the Board of County Road Commissioners. 0 0
(N) EFFECTIVE DATE OF THE DC PART OF THIS RETIREMENT 4 O SYSTEM AS IT APPLIES TO' DIFFERENT BENEFITS GROUPS SHALL BE
DETERMINED BY EITHER THE OAKLAND COUNTY MERIT SYSTEM OR THE 0 • APPLICABLE COLLECTIVE BARGAINING AGREEMENT WITH EACH SEPARATE
COLLECTIVE BARGAINING UNIT THAT COVERS COUNTY EMPLOYEES.
(0) EMPLOYEE MEANS ANY PERSON EMPLOYED BY THE COUNTY.
(1) "HIGHLY COMPENSATED EMPLOYEES" INCLUDE HIGHLY
COMPENSATED ACTIVE EMPLOYEES AND HIGHLY COMPENSATED FORMER
EMPLOYEES. A HIGHLY COMPENSATED ACTIVE EMPLOYEE INCLUDES ANY
EMPLOYEE WHO PERFORMS SERVICE FOR THE EMPLOYER DURING THE
"DETERMINATION YEAR" AND WHO, DURING THE "LOOK-BACK YEAR:"
(I) RECEIVED COMPENSATION GREATER THAN SEVENTY-FIVE THOUSAND
0 • SECTION PRIOR TO THE APPLICATION OF THIS LIMITATION. IF THE 0
RETIREMENT SYSTEM DETERMINES COMPENSATION ON A PERIOD OF TIME
• THAT CONTAINS FEWER THAN 12 CALENDAR MONTHS, THEN THE ANNUAL
• COMPENSATION LIMIT IS AN AMOUNT EQUAL TO THE ANNUAL
a • COMPENSATION LIMIT FOR THE CALENDAR YEAR IN WHICH THE
• COMPENSATION PERIOD BEGINS MULTIPLIED BY THE RATIO OBTAINED ▪ BY DIVIDING THE NUMBER OF FULL MONTHS IN THE PERIOD BY 12.
-5-
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN , SUITE 200, BIRMINGHAM, MICHIGAN A•009 (1110) 643-31140 AND 00/100 DOLLARS ($75,000.00) (AS ADJUSTED BY CODE SECTION
415(D); (II) RECEIVED COMPENSATION GREATER THAN FIFTY
THOUSAND AND 00/100 DOLLARS ($50,000.00) (AS ADJUSTED BY CODE
SECTION 415(D)) AND WAS A MEMBER OF THE "TOP-PAID GROUP" FOR
SUCH YEAR; OR (III) WAS AN OFFICER OF THE EMPLOYER AND
RECEIVED COMPENSATION DURING SUCH YEAR THAT IS GREATER THAN
FIFTY PERCENT (50%) OF THE DOLLAR LIMITATION IN EFFECT UNDER
CODE SECTION 415(B)(1)(A).
(2) THE TERM HIGHLY COMPENSATED EMPLOYEE INCLUDES:
(I) EMPLOYEES WHO ARE BOTH DESCRIBED IN THE PRECEDING
SENTENCE IF THE TERM "DETERMINATION YEAR" IS SUBSTITUTED FOR
"LOOK-BACK YEAR" AND THE EMPLOYEE IS ONE OF THE ONE HUNDRED
(100) EMPLOYEES WHO RECEIVED THE MOST COMPENSATION DURING THE
DETERMINATION YEAR; AND (II) EMPLOYEES WHO ARE FIVE PERCENT
(5%) OWNERS AT ANY TIME DURING THE LOOK-BACK YEAR OR
DETERMINATION YEAR. IF NO OFFICER HAS SATISFIED THE
COMPENSATION REQUIREMENT OF (III) DURING EITHER A
DETERMINATION YEAR OR LOOK-BACK YEAR, THE HIGHEST PAID
OFFICER FOR SUCH YEAR SHALL BE TREATED AS THE ONLY HIGHLY
COMPENSATED EMPLOYEE.
THE "DETERMINATION YEAR" SHALL BE THE PLAN YEAR. THE
"LOOK-BACK YEAR" SHALL BE THE TWELVE (12) MONTH PERIOD
IMMEDIATELY PRECEDING THE "DETERMINATION YEAR."
A "HIGHLY COMPENSATED FORMER EMPLOYEE" INCLUDES ANY
EMPLOYEE WHO SEPARATED FROM SERVICE (OR WAS DEEMED TO HAVE
SEPARATED) BEFORE THE DETERMINATION YEAR, PERFORMS NO SERVICE
FOR THE EMPLOYER DURING THE DETERMINATION YEAR, AND WAS A
HIGHLY COMPENSATED ACTIVE EMPLOYEE FOR EITHER THE SEPARATION
YEAR OR ANY DETERMINATION YEAR ENDING ON OR AFTER THE
EMPLOYEE'S FIFTY-FIFTH (55TH) BIRTHDAY.
IF AN EMPLOYEE IS, DURING A DETERMINATION YEAR OR LOOK-
BACK YEAR, A FAMILY MEMBER OF EITHER A "5 PERCENT OWNER" WHO
IS AN ACTIVE OR FORMER EMPLOYEE OR A HIGHLY COMPENSATED
EMPLOYEE WHO IS ONE OF THE TEN (10) MOST HIGHLY COMPENSATED
EMPLOYEES RANKED ON THE BASIS OF COMPENSATION PAID BY THE
EMPLOYER DURING SUCH YEAR, THEN THE FAMILY MEMBER AND THE 5-
PERCENT OWNER OR TOP-TEN HIGHLY COMPENSATED EMPLOYEE SHALL BE
AGGREGATED. IN SUCH CASE, THE FAMILY MEMBER AND 5-PERCENT
OWNER OR TOP-TEN HIGHLY COMPENSATED EMPLOYEE SHALL BE TREATED
AS A SINGLE EMPLOYEE RECEIVING COMPENSATION AND PLAN
CONTRIBUTIONS OR BENEFITS EQUAL TO THE SUM OF SUCH
COMPENSATION AND CONTRIBUTIONS OR BENEFITS OF THE FAMILY
MEMBER AND 5-PERCENT OWNER OR TOP-TEN HIGHLY COMPENSATED
EMPLOYEE. FOR PURPOSES OF THIS SECTION, "FAMILY MEMBER"
INCLUDES THE SPOUSE, LINEAL ASCENDANTS AND DESCENDANTS OF THE
EMPLOYEE OR FORMER EMPLOYEE AND THE SPOUSES OF SUCH LINEAL
ASCENDANTS AND DESCENDANTS. THE DETERMINATION OF WHO IS A
HIGHLY COMPENSATED EMPLOYEE, INCLUDING THE DETERMINATIONS OF
-6-
- - LAW OFFICES mACDONALD AND GOREN, PROFESSIONAL COR•ORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 46006 WO 945-6640 THE NUMBER AND IDENTITY OF EMPLOYEES IN THE TOP-PAID GROUP,
THE TOP ONE HUNDRED (100) EMPLOYEES, THE NUMBER OF EMPLOYEES
TREATED AS OFFICERS AND THE COMPENSATION THAT IS CONSIDERED,
WILL BE PURSUANT TO CODE SECTION 414(Q) AND ITS REGULATIONS.
(P) EMPLOYEE CONTRIBUTIONS MEANS CONTRIBUTIONS BY AN
EMPLOYEE TO THE DC PART OF THIS RETIREMENT SYSTEM. THIS
RETIREMENT SYSTEM ALLOWS NONDEDUCTIBLE EMPLOYEE CONTRIBUTIONS
TO THE DC PART.
(Q) ENTRY DATE FOR THE DC PART MEANS THE DATE SIX
MONTHS AFTER A MEMBER INCURS HIS FIRST HOUR OF COMPENSATED
EMPLOYMENT FOR THE COUNTY.
4...e9-(R) Final Average Compensation means the average of
the annual Compensations paid a Member during any 5
consecutive years of credited service producing the highest
average, contained within the 10 years of credited service
immediately preceding the Member's last termination of
employment with the County, if the Member has at least 5
years of credited service. Final average Compensation means
the aggregate amount of compensation paid a Member divided by
the Member's years and fraction of a year of credited service
if the Member has less than 5 years of credited service.
(S) FISCAL YEAR, LIMITATION YEAR OR PLAN YEAR MEANS THE
CALENDAR YEAR. IF THE LIMITATION YEAR IS AMENDED TO A
DIFFERENT TWELVE (12) CONSECUTIVE MONTH PERIOD, THE NEW
LIMITATION YEAR MUST BEGIN ON A DATE WITHIN THE LIMITATION
YEAR THAT THE AMENDMENT IS MADE.
(T) FIXED ACCOUNT MEANS AN ACCOUNT IN THE DC PART THAT
HAS BECOME NONFORFEITABLE AND SEGREGATED, REGARDLESS OF
WHETHER SAME IS COMMINGLED WITH ANY OTHER ACCOUNTS. SUCH
ACCOUNT SHALL INCLUDE ALL ACCOUNTS MAINTAINED IN THE DC PART
FOR THE EMPLOYEE.
(U) LOANS. NOTWITHSTANDING ANY PROVISION HEREIN TO THE
CONTRARY, THIS RETIREMENT SYSTEM DOES NOT ALLOW LOANS TO
MEMBERS.
(V) LUMP SUM MEANS ONE OR MORE PAYMENTS MADE WITHIN A
SINGLE TAXABLE YEAR OF THE RECIPIENT.
(W) PARTICIPANT OR MEMBER MEANS A PERSON WHO IS
ELIGIBLE, AND PARTICIPATES HEREIN.
A NON-VESTED PARTICIPANT OR MEMBER MEANS A MEMBER WHO
DOES NOT HAVE ANY NONFORFEITABLE RIGHT TO AN ACCRUED BENEFIT.
A VESTED PARTICIPANT OR MEMBER MEANS A MEMBER WHO HAS A
NONFORFEITABLE RIGHT TO AN ACCRUED BENEFIT.
-7-
LAW OFFICES 41ACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST DROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 411009 (•10) 645 5940 •
+14-(X) Pension means a series of equal monthly payments
by the DE PART OF THE Retirement System. Payment may be for
a temporary period or throughout the future life of a retired
Member or beneficiary.
(Y) PROVISIONAL ACCOUNT MEANS AN ACCOUNT WHICH HAS NOT
BECOME FIXED PURSUANT TO SECTION 76 (FIXED ACCOUNTS).
44-). (Z) Retired Member means an individual who is being
paid a Pension on account OR WAS PAID A LUMP SUM BECAUSE of
the individual's Membership in the Retirement System.
+104(AA) Service means personal service rendered the
County while a Member of the Retirement System and qualifying
military service pursuant to Sections 11 and 12.
Membership in Retirement System.
Section 4. An individual who is employed by the County, its
offices or departments in a permanent position normally
requiring 1000 or more hours of work per year shall be a
Member of the Retirement System unless employed in an
excluded position enumerated in Section 5. In case of doubt
the Retirement Commission shall decide who is a Member.
Excluded Positions.
Section 5. Excluded positions are:
(a) Positions as employees of the Board of County Road
Commissioners.
(b) Positions which are compensated on a basis not
subject to the withholding of Federal income taxes or FICA
taxes by the County or to existing fringe benefits provided
by the County.
(c) Positions filled by temporary employees.
(d) Any position held by a retired Member.
(e) Any position held by a person who is included by
law in any other pension or retirement system by reason of
the compensation paid by the County, except the Federal Old
Age, Survivors and Disability Insurance program.
(f) Positions for which the County pays less than 30
percent of all compensation received by the employee from all
governmental units.
-8-
•IRMiNGHAM, MICHIGAN 48000 (RIO S45.1040 LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 3.110 EAST BROWN STREET, SUITE Termination of Membership.
Section 6. An individual shall cease to be a Member upon
termination of employment by the County, or upon ceasing to
be employed in a position normally requiring 1,000 or more
hours of work per year, or upon becoming employed in an
excluded position. Upon re-employment by the County, or
transfer into a position that is not excluded, the individual
shall again become a Member.
Vested Termination of Membership.
Section 7. A Member OF THE DE PART OF THE RETIREMENT SYSTEM
who ceases to be a Member for a reason other than retirement
or death, and who has 8 or more years of credited service and
leaves on deposit in the Retirement System the Member's
accumulated Member contributions shall be a vested former
Member.
A MEMBER OF THE DC PART OF THE RETIREMENT SYSTEM WHO
CEASES TO BE A MEMBER FOR A REASON OTHER THAN RETIREMENT OR
DEATH SHALL BE ENTITLED TO THE FOLLOWING PERCENTAGE OF HIS
ACCOUNT BALANCE, BASED ON:
YEARS OF CREDITED SERVICE PERCENTAGE VESTED
LESS THAN 3 0%
3 BUT LESS THAN 4 20%
4 BUT LESS THAN 5 40%
5 BUT LESS THAN 6 60%
6 BUT LESS THAN 7 80%
7 YEARS OR MORE 100%
(A) FOR THE DC PART, THE "DISTRIBUTION DATE" MEANS
THIRTY DAYS AFTER THE VALUATION DATE FOLLOWING THE EARLIER OF
THE MEMBER'S DEATH BEFORE RECEIPT OF ANY DISTRIBUTION FROM
THE DC PART OR TERMINATION OF EMPLOYMENT.
(B) FOR THESE PURPOSES, FORFEITURE OF A PART OF A
MEMBER'S ACCOUNT SHALL OCCUR ON THE DISTRIBUTION OF THE
VESTED PART OF THE MEMBER'S ACCOUNT.
(C) ANY MEMBER WHO TERMINATES EMPLOYMENT WHEN HE IS A
NON-VESTED MEMBER SHALL BE DEEMED TO HAVE RECEIVED A
DISTRIBUTION AND FORFEITED HIS ACCOUNT ON THE EARLIER OF:
(1) WHEN HE RECEIVES A DISTRIBUTION OF ANY
VOLUNTARY CONTRIBUTIONS AND THE EARNINGS THEREON;
(2) WHEN FORFEITURE OCCURS UNDER SUBPARAGRAPH (B);
OR
-9-
MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST DROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 45009 4410 645-594 (3) WHEN HE INCURS A ONE-YEAR BREAK-IN-SERVICE.
Credited Service; Earning of.
Section 8. Service rendered by a Member shall be credited to
the Member's individual credited service account in
accordance with rules the Retirement Commission shall
prescribe. A Member in a position designated by the County
as a part-time position shall receive credit for a fraction
of a year. The fraction shall be equal to the number of
regular hours worked during the year divided by the number of
full-time hours for the year. In no case shall
- more than one year of credited service be
credited on account of all service rendered by a Member in
any one calendar year.
- less than ten days of service in a calendar month
be credited as a month of service.
- less than ten months of service in a calendar
year be credited as a year of service.
Credited Service; Forfeiture of.
Section 9. Credited service shall be forfeited if an
individual ceases to be a Member and does not qualify as a
vested former Member. Credited service shall be forfeited if
an individual receives a refund of accumulated Member
contributions.
Credited Service; Reinstatement of.
Section 10. A Member may have forfeited credited service
restored upon satisfaction of each of the following
conditions:
(a) The Retirement System is paid the total amount of
accumulated Member contributions previously withdrawn plus IN
THE DB PART ONLY, compound interest from the dates of with-
drawal to the dates of repayment at rates stipulated by the
Retirement Commission;
(b) The repayment is initiated and completed within the
time period established by the Retirement Commission, which
period shall not end before the first anniversary of the
Member's re-employment;
-10-
(c) The Member was re -employed in a County position
involving Membership in the Retirement System within 3 years
of the Member 's last termination of Membership.
Intervening Military Service; Conditions for Credited
Service.
0 0 O Section 11. A Member who leaves the employ of the County to
enter any armed service of the United States during any
• period of compulsory military service shall be entitled to 4
• credited service for periods of active duty lasting 30 or
more days, if each of the following conditions are satisfied:
a (a) The individual is re-employed by the County within
1 year from and after the date of termination of active duty;
i (b) The individual becomes a Member and pays the :.2 Retirement System the total amount of accumulated Member
contributions previously withdrawn, plus compound interest - from the dates of withdrawal to the dates of repayment;
(c) The individual has at least 10 years of credited 0 ▪ service, not including any credited service acquired for 7 non-intervening military service under the provisions of
4 Section 12; 2
(d) IN THE DB PART OF THE RETIREMENT SYSTEM ONLY, the 0 individual pays the Retirement System 5% of the individual 's
2 annual, full -time rate of compensation at time of payment
multiplied by the period of service being claimed; 0
O (e) No more than 5 years of credited service shall be
O granted on account of all military service of the Member; 8
(f) Credited service shall not be granted for periods
• of military service which are or could be used for obtaining
O or increasing a benefit from another retirement system.
2
O
• Non-intervening Military Service; Conditions for Credited 0 • Service.
3
Section 12. A Member who has served in any armed service of ▪ the United States shall be entitled to credited service for
• periods of active duty lasting 30 or more days, if each of
• the following conditions are satisfied:
(a) The Member has at least 8 years of credited service
WITH OAKLAND COUNTY, not including any credited service
acquired for intervening military service under the
provisions of Section 11;
-11-
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN SUITE 200, BIRMINGHAM, MICHIGAN ••009 (.10) 4165.S9 (b) IF, IN THE DB PART OF THE RETIREMENT SYSTEM ONLY,
the Member pays the Retirement System 5% of the Member's
annual, full time rate of Compensation at time of payment
multiplied by the period of service being claimed;
(c) Armed service credited a Member under this
paragraph shall not exceed the smaller of two (2) years and
the difference between five (5) years and the intervening
armed service credited the Member under Section 11;
(d) Credited service shall not be granted for periods
of military service which are or could be used for obtaining
or increasing a benefit from another retirement system;
(e) The Member entered the armed service before June 1,
1980 or entered during a time of war or emergency condition
on or after June 1, 1980;
(f) The Member elects to purchase the service and
contributes the required amount to the DB PART OF THE
Retirement System within one (1) year of the Member's
Eligibility Date. The Eligibility Date for County employees
whose employment is not subject to collective bargaining is
January 1, 1989. The purchase of non-intervening military
service will apply to a County employee whose employment is
subject to collective bargaining only if included in the
applicable bargaining agreement. If included, the
Eligibility Date will be as specified in the RELEVANT
COLLECTIVE BARGAINING agreement.
Reciprocal Retirement System.
Section 13. The retirement system is a reciprocal Retirement
System under the provisions of Act 88, Public Acts of 1961,
as amended.
Benefit groups; Composition of.
Section 14. The following benefit groups are designated for
the purpose of determining benefit eligibility conditions,
benefit amounts, and Member contribution rates:
(a) Benefit group general - option A. All Members not
included in benefit group Sheriff's Department whose
employment agreements with the County indicate that they are
option A employees.
(b) Benefit group general - option B. All Members not
included in benefit group Sheriff's Department whose
-12-
LAW OFFICES MACOONALO AND GOREN, PROFESSIONAL CORPORATION 260 EAST •MOWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 46000 (610) 645-5940 employment agreements with the County indicate that they are
option B employees.
(c) Benefit group Sheriff's Department - DEPUTY
SHERIFF'S ASSOCIATION - OPTION C. All Members employed in
the Sheriff's Department who are covered by a COLLECTIVE
bargaining agreement between the County and the Oakland
County Deputy Sheriffs Association.
(D) BENEFIT GROUP SHERIFF'S DEPARTMENT - COMMAND
ASSOCIATION - OPTION D. ALL MEMBERS EMPLOYED IN THE
SHERIFF'S DEPARTMENT WHO ARE COVERED BY A COLLECTIVE
BARGAINING AGREEMENT BETWEEN THE COUNTY AND THE OAKLAND
COUNTY COMMAND OFFICERS ASSOCIATION.
Benefit Groups; Effect on Retirement Eligibility
Section 15. Benefit eligibility conditions shall be those
applicable to the Member's benefit group at time of
termination of Membership. If the Member has less than 2
years of credited service under the Member's last benefit
group, benefit eligibility conditions shall be those
applicable to the benefit group under which the Member last
earned at least 2 years of credited service.
Benefit groups; Effect on Pension Amount.
Section 16. Pension amounts IN THE DB PART OF THE RETIREMENT
SYSTEM shall be separately determined for each benefit group
to.r—willch THAT the Member has credited service WITH, using
THE Retirement System provisions in effect at time of
termination of Membership. The amount of a pension under
optional form of payment SL (Section 19) is equal to the sum
of separate amounts determined in accordance with the benefit
formula applicable to each benefit group under which the
retiring individual MEMBER has credited service. The amount
of pension attributable to credited service under a
particular benefit group is equal to a fraction of the amount
of pension determined as if the 1.;4413,444a. MEMBER'S total
credited service in force was under the benefit group. The
numerator of the fraction is the lAdjulduall..s. MEMBER'S
credited service under the benefit group. The denominator of
the fraction is the IndluidualL MEMBER'S total credited
service.
Normal Retirement; Conditions for.
Section 17. An individual may retire with EITHER a normal
retirement pension FOR THE DB PART OR WITH HIS ACCOUNT FROM
-13-
THE DC PART upon satisfaction of each of the following
requirements:
0
5 (b) Membership is terminated before the date of
0 0 retirement;
a (C) The individual meets the applicable age and/or
• service requirements for normal retirement.
0 • Normal Retirement; Age and Service Requirements.
6 Section 18. The age and/or service requirements for normal
retirement are:
(a) Benefit group general - option A. The individual
has attained age 55 years and has 25 or more years of
credited service, or the individual has attained age 60 years
and has 8 or more years of credited service. 0
(b) Benefit group general - option B. The individual
• has attained Age 55 years and has 25 or more years of 0 • credited service, or the individual has attained Age 60 years
• and has 8 or more years of credited service. 0
O (C) BENEFIT GROUP SHERIFF'S DEPARTMENT - DEPUTIES -
O OPTION C. THE INDIVIDUAL HAS 25 OR MORE YEARS OF CREDITED
SERVICE WITH THE SHERIFF'S DEPARTMENT, REGARDLESS OF AGE OR
O
•
HAS ATTAINED AGE 60 AND HAS 8 OR MORE YEARS OF CREDITED
SERVICE.
'40`
(D) Benefit group 51w.ritt SHERIFF'S Department -
COMMAND - OPTION D. The individual has attained Age 50 years 0 O and has 25 or more years of credited service with the 0 • Sheriff's Department, or the individual has attained Age 55
O and has 25 or more years of credited service WITH THE COUNTY,
• or the individual has attained Age 60 years and has 8 or more 0 • years of credited service. 0
Upon normal retirement as provided in this section an
• individual shall be paid a pension computed according to 0 Sections 19 and 20.
Normal Retirement; Pension Amount.
Section 19. The applicable benefit amount under form of
payment SL (Straight Life) FOR THE DB PART is computed as
follows:
(a) A written application for retirement, in the form
prescribed by the Retirement Commission, has been filed with
the Retirement System;
-14-
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST ORDINN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 40000 (11I0) 645 5040 (a) Benefit group general - option A. 2 percent (.02)
of the Member's Final Average Compensation multiplied by
years of credited service.
(b) Benefit group general - option B. 1.8 percent
(.018) of the Member's Final Average Compensation multiplied
by years of credited service.
(c) Benefit group shazzill SHERIFF'S Department
(COMMAND). 2 percent (.02) of the Member's Final Average
Compensation multiplied by years of credited service.
(D) BENEFIT GROUP SHERIFF'S DEPARTMENT (DEPUTIES). FOR
PLAN YEARS BEGINNING JANUARY 1, 1994, 2.2 PERCENT (.022) OF
THE MEMBER'S FINAL AVERAGE COMPENSATION MULTIPLIED BY YEARS
OF CREDITED SERVICE.
If the Member or vested terminated Member has credited
service with more than one benefit group, the pension amount
• • UNDER shall be computed - • • - - '
Section 16.
THE APPLICABLE BENEFIT AMOUNT UNDER THE DC PART PAYABLE IN A
LUMP SUM SHALL BE THE VALUE OF THE MEMBER'S FIXED ACCOUNT.
Normal Retirement; Pension Maximum.
Section 20. The maximum amount of a pension FROM THE DB PART
AND financed by County contributions is 75 percent (.75) of
an individual's Final Average Compensation.
Retirement; Vested Former Member.
Section 21. (a) A vested former Member OF THE DB PART may
retire
- upon attainment of Age 55 with 25 or more years of
credited service.
- upon attainment of Age 50 with 25 or more years of
credited service with the Sheriff's Department.
- upon attainment of Age 60.
(b) Withdrawal of accumulated Member contributions FROM
THE DB PART and forfeiture of credited service attributable
to a period during which contributions to the Retirement
-15-
rtn 171,11,1-17
CUM
ha Qndd by that datQ-.
171 r) I (-1177n Ica 1-1 CL1_117
County--
CUG 71 1"1 rTmr m /GI IM LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 2IID EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN ABDO* (RIO 647-5440 System were required by or on behalf of the vested former
Member shall constitute forfeiture of all rights in and to
the portion of the pension attributable to the forfeited
credited service.
(c) Upon retirement as provided in this section a
vested former Member shall be paid a pension computed
according to the provisions of Sections 19 and 20 as in
effect on the date the employee ceased to be a Member.
Re-employment by County; Effect on Pension Payments.
ONE OF THE FOLLOWING CONDITIONS SHALL APPLY TO A RETIRED
MEMBER WHO IS RECEIVING A PENSION OR RETIREMENT BENEFIT FROM
A PLAN UNDER MCLA 46.12a IF THE RETIRED MEMBER BECOMES
EMPLOYED BY A COUNTY THAT HAS ESTABLISHED A PLAN UNDER MCLA
46.12a:
(A) PAYMENT OF THE PENSION OR RETIREMENT BENEFIT TO THE
RETIRED MEMBER SHALL BE SUSPENDED IF THE RETIRED MEMBER IS
EMPLOYED BY THE COUNTY FROM WHICH THE RETIRED MEMBER RETIRED
AND THE RETIRED MEMBER DOES NOT MEET THE REQUIREMENTS OF
SUBDIVISION (B). SUSPENSION OF THE PAYMENT OF THE PENSION OR
RETIREMENT BENEFIT SHALL BECOME EFFECTIVE THE FIRST DAY OF
THE CALENDAR MONTH THAT FOLLOWS THE SIXTIETH DAY AFTER THE
RETIRED MEMBER IS EMPLOYED BY THE COUNTY. PAYMENT OF THE
PENSION OR RETIREMENT BENEFIT SHALL RESUME ON THE FIRST DAY
OF THE CALENDAR MONTH THAT FOLLOWS TERMINATION OF THE
EMPLOYMENT. PAYMENT OF THE PENSION OR RETIREMENT BENEFIT
SHALL BE RESUMED WITHOUT CHANGE IN AMOUNT OR CONDITIONS BY
REASON OF THE EMPLOYMENT. THE RETIRED MEMBER SHALL NOT BE A
MEMBER OF THE PLAN DURING THE PERIOD OF EMPLOYMENT.
-16-
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST MROWN 5 TTTTT , SUITE 200, SIRMINGH•PO, MICHIGAN 45006 OHO 643-5•60 (B) PAYMENT OF THE PENSION OR RETIREMENT BENEFIT TO THE
RETIRED MEMBER SHALL CONTINUE WITHOUT CHANGE IN AMOUNT OR
CONDITIONS BY REASON OF EMPLOYMENT BY THE COUNTY FROM WHICH
THE RETIRED MEMBER RETIRED IF ALL OF THE FOLLOWING
REQUIREMENTS ARE MET:
(1) THE RETIRED MEMBER MEETS ONE OF THE FOLLOWING
REQUIREMENTS:
(A) FOR ANY RETIRED MEMBER, IS EMPLOYED BY
THE COUNTY FOR NOT MORE THAN 1,000 HOURS IN ANY 12-MONTH
PERIOD AS DETERMINED IN THE MERIT SYSTEM.
(B) FOR A RETIRED MEMBER WHO WAS NOT AN
ELECTED OR APPOINTED COUNTY OFFICIAL AT RETIREMENT, IS
ELECTED OR APPOINTED AS A COUNTY OFFICIAL FOR A TERM OF
OFFICE THAT BEGINS AFTER THE RETIRED MEMBER'S RETIREMENT
ALLOWANCE EFFECTIVE DATE.
(C) FOR A RETIRED MEMBER WHO WAS AN ELECTED
OR APPOINTED COUNTY OFFICIAL AT RETIREMENT, IS ELECTED OR
APPOINTED AS A COUNTY OFFICIAL TO A DIFFERENT OFFICE FROM
WHICH THE RETIRED MEMBER RETIRED FOR A TERM OF OFFICE THAT
BEGINS AFTER THE RETIRED MEMBER'S RETIREMENT ALLOWANCE
EFFECTIVE DATE.
(D) FOR A RETIRED MEMBER WHO WAS AN ELECTED
OR APPOINTED COUNTY OFFICIAL AT RETIREMENT, IS ELECTED OR
APPOINTED AS A COUNTY OFFICIAL TO THE SAME OFFICE FROM WHICH
THE RETIRED MEMBER RETIRED FOR A TERM OF OFFICE THAT BEGINS
NOT LESS THAN 2 YEARS AFTER THE RETIRED MEMBER'S RETIREMENT
ALLOWANCE EFFECTIVE DATE.
(2) THE RETIRED MEMBER IS NOT ELIGIBLE FOR ANY
BENEFITS FROM THE COUNTY OTHER THAN THOSE REQUIRED BY LAW OR
OTHERWISE PROVIDED TO THE RETIRED MEMBER BY VIRTUE OF HIS OR
HER BEING A RETIRED MEMBER.
(3) THE RETIRED MEMBER IS NOT A MEMBER OF THE PLAN
DURING THE PERIOD OF REEMPLOYMENT, DOES NOT RECEIVE
ADDITIONAL RETIREMENT CREDITS DURING THE PERIOD OF
REEMPLOYMENT, AND DOES NOT RECEIVE ANY INCREASE IN PENSION OR
RETIREMENT BENEFITS BECAUSE OF THE EMPLOYMENT UNDER THIS
SUBDIVISION.
(C) PAYMENT OF THE PENSION OR RETIREMENT BENEFIT TO THE
RETIRED MEMBER SHALL CONTINUE WITHOUT CHANGE IN AMOUNT OR
CONDITIONS BY REASON OF THE EMPLOYMENT IF THE RETIRED MEMBER
BECOMES EMPLOYED BY A COUNTY OTHER THAN THE COUNTY FROM WHICH
THE RETIRED MEMBER RETIRED. FOR THE PURPOSES OF MEMBERSHIP
AND POTENTIAL BENEFIT ENTITLEMENT UNDER THE PLAN OF THE OTHER
-17-
• 11 LAw OFFICES MAcOor4ALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, HIRMINGHAM, MICHIGAN 46009 (1110) 642•66140 COUNTY, THE RETIRED MEMBER SHALL BE CONSIDERED IN THE SAME
MANNER AS AN INDIVIDUAL WITH NO PREVIOUS RECORD OF EMPLOYMENT
BY THAT COUNTY.
Form of payment of a pension.
Section 23. A Member may elect to have pension payments FROM
THE DB PART made under any one, and only one, of the
following forms of payment and name a survivor Beneficiary.
The election and naming of survivor Beneficiary shall be made
on a form furnished by and filed with the Retirement System
prior to the date the first pension payment is made. An
election of form of payment may not be changed on or after
the date the first pension payment is made. A named survivor
Beneficiary may not be changed on or after the date the first
pension payment is made if form of payment A, B or D is
elected. A named survivor Beneficiary may be changed or may
be more than one person if form of payment SL or C is
elected. A named survivor Beneficiary must have an insurable
interest in the life of the Member or vested former Member
when named.
Payment shall be made under form of payment SL if there is
not a timely election of another form of payment.
The amount of pension under forms of payment A, B, C, D or E
shall have the same actuarial present value, computed as of
the effective date of the pension, as the amount of pension
under form of payment SL. (ACTUARIAL ASSUMPTIONS USED TO
DETERMINE THE AMOUNT OR LEVEL OF ANY OPTIONAL BENEFIT FORMS
SHALL RESULT IN THE ACTUARIAL EQUIVALENT OF THE NORMAL
RETIREMENT BENEFIT PAYABLE UNDER THE PLAN).
No payments shall be made to a survivor Beneficiary under
form of payments A, B, C or D if duty death benefits under
Section 33 become payable on account of the death of the
retired Member.
Form of Payment SL - Straight Life Pension. The retired
Member is paid a pension for life under form of payment SL.
All payments stop upon the death of the retired Member.
Form of Payment A - Life Payments with Full Continuation to
Survivor Beneficiary. The retired Member is paid a reduced
pension for life under form of payment A. Upon the death of
the retired Member during the lifetime of the named survivor
Beneficiary, the named survivor Beneficiary is paid the full
amount of reduced pension until death.
Form of Payment B - Life Payments with One-Half Continuation
to Survivor Beneficiary. The retired Member is paid a
-18-
---- LAW OFFICES 04•CEIONALo AND GOREN, PROFESSIONAL CORPORATION 2e0 EAST BROWN STREET, SUITE 200, •iRmiNGHAM, MICHIGAN 4,6009 (e10) ORS-SORG reduced pension for life under form of payment B. Upon the
death of the retired Member during the lifetime of the named
survivor Beneficiary, the named survivor Beneficiary is paid
one-half the amount of reduced pension until death.
Form of Payment C - Life Payments with Ten Years Certain.
The retired Member is paid a reduced pension for life under
form of payment C. Upon the death of the retired Member, if
the retired Member received fewer than 120 monthly pension
payments, the named survivor Beneficiary is paid the full
amount of reduced pension for the remainder of 120 months.
If the named survivor Beneficiary has died before the retired
Member, or dies before the 120 months have elapsed, the
remaining monthly payments shall be paid to the estate of the
last alive of the retired Member and the named survivor
Beneficiary.
Form of Payment D - Life Payments with Continuation to
Survivor Beneficiary with Pop-up.
(1) Full Continuation - The retired Member is paid
a reduced pension for life under form of payment D-1. Upon
the death of the retired Member during the lifetime of the
named survivor Beneficiary, the named survivor Beneficiary is
paid the full amount of reduced pension until death. Should
the named survivor Beneficiary die before the retired Member,
the retired Member's pension shall be recomputed (pop-up) to
a straight life pension (form of payment SL).
(2) One-Half Continuation - The retired Member is
paid a reduced pension for life under form of payment D-2.
Upon the death of the retired Member during the lifetime of
the named survivor Beneficiary, the named survivor
Beneficiary is paid one-half the amount of reduced pension
until death. Should the named survivor Beneficiary die
before the retired Member, the retired Member's pension shall
be recomputed (pop-up) to a straight life pension (form of
payment SL).
Form of Payment E - Life Payments with Social Security
Equating. The retired Member is paid an increased pension
until Age 65 and a reduced pension for life thereafter under
form of payment E. The increased pension payable until Age
65 shall approximate the sum of the reduced pension payable
after Age 65 and the retiring Member's estimated Age 65
Social Security primary insurance amount. Form of payment E
is available only to Members who retire after attaining Age
60 and before attaining Age 65. All payments stop upon the
death of the retired Member.
-19--
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 2150 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 48009 (810) 849•5940 Disability Retirement; Conditions for.
Section 24. The Retirement Commission may retire a Member
who bocomas IS incapacitated loz FROM continued employment by
the County if each of the following conditions are met:
(a) Application for disability retirement is filed with
the Retirement Commission by either the Member or the
Member's Department Head;
(b) The Member has 10 or more years of credited
service;
(c) The Member undergoes all medical examinations and
tests ordered by the Retirement Commission, and releases to
the Retirement Commission all medical reports and records
requested by the Retirement Commission;
(d) The medical director certifies to the Retirement
Commission in that (i) the Member is mentally or physically
totally incapacitated for continued employment by the County,
(ii) the incapacity is likely to be permanent and (iii) the
Member should be retired. The effective date of a disability
retirement shall not predate (i) the date of disability, or
(ii) the date the Member ceases to be paid by the County FOR
ACTIVE SERVICES;
(e) If the Member does not concur in the opinion of the
medical director, a medical committee shall be appointed.
The medical committee shall be composed of the medical
director, one physician named by the Member and one physician
named by the other 2 physicians. If the medical committee
certifies to the Retirement Commission in writing, by
majority opinion, that (i) the Member is mentally or
physically totally incapacitated for continued employment by
the County and (ii) the incapacity is likely to be permanent,
the majority opinion of the medical committee shall supersede
the certification of the medical director.
Disability Retirement; Pension OR BENEFITS Amount; Form of
Payment.
Section 25. (A) The amount of a disability pension FROM THE
DB PART shall be computed in the same manner as a normal
retirement pension, based upon the Member's credited service
and Compensations earned until the termination of County
employment. Section 20 shall apply. The disability retired
Member WHO IS IN THE DB PART shall have the right to elect
form of payment SL, A, B, C or D provided in Section 23.
(B) THE AMOUNT OF THE DISABILITY BENEFIT FROM THE DC
PART SHALL BE THE VALUE OF THE MEMBER'S FIXED ACCOUNT. THE
-20-
LAW OFFICES NACDON•LD AND GOREN, PROFESSIONAL CORPORATION 240 EAST SROWN STREET, SUITE 200, IIIRMINGHAM, MICHIGAN 4110012 WO) 643•31140 DISABLED OR RETIRED MEMBER SHALL RECEIVE HIS PAYMENT IN A
LUMP SUM.
Disability Retirement; Special Provisions if Duty Incurred.
Section 26. The following exceptions to the provisions of
Sections 24 and 25 shall apply if the Retirement Commission
finds that the Member's disability is the direct and
proximate result of the Member's performance of duty as an
employee of the County:
the requirement of 10 years of credited service shall be
waived;
credited service shall include years and fraction of a
year, if any, between the effective date of the
disability pension and the date the Member would attain
age 60 years;
THE MEMBER SHALL BE 100% VESTED IN HIS ACCRUED BENEFIT
IN THE DB PART AND IF A MEMBER IN THE DC PART, 100%
VESTED IN HIS MEMBER'S ACCOUNT.
Disability Retirement; Limitation on Pension Amount.
Section 27. (a) The amount of a disability pension shall
not exceed the difference between one hundred percent of the
disability retired Member's gross annual rate of compensation
at date of retirement and the amount of the disability
retired Member's considered income.
(b) A disability retired Member's considered income is
the annualized sum of the following amounts:
(1) Remuneration for personal services rendered in
any gainful employment;
(2) Worker's compensation weekly benefits,
redemptions and settlements on account of the same disability
for which retired. If there is a redemption or settlement of
the worker's compensation benefit, weekly benefits at the
established amount shall be considered to continue until the
weekly benefits equal the amount of the redemption or
settlement. Thereafter, the Member will be considered to
have no income from worker's compensation benefits. Worker's
compensation benefits for bona fide medical expenses, as
determined by the Retirement Commission, shall not be
considered income;
(3) Unemployment insurance or similar payments by
reason of the Member's County employment.
-21-
EAST IBROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 41009 WO 445-5940 LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION If a disability retired Member's considered income for a year
exceeds the Member's gross annual rate of compensation at
date of retirement, such excess shall be carried forward as
considered income for the following year.
(c) Application of the limitation shall be to the
amount of pension under form of payment SL. The effect of an
election of any other form of payment shall be taken into
account after application of the provisions of this section.
(d) The Retirement Commission shall periodically
request substantiated income information from the retired
Member. Failure to provide the requested information within
ninety (90) days of the request shall cause suspension of
payment of the pension until the information is received BY
THE RETIREMENT COMMISSION.
Disability Retirement; Continuation Subject to
Re-examination; Suspension/Termination of Pension.
Section 28. (a) At least once each CALENDAR year during the
first 5 CALENDAR years following a Member's retirement for
disability and at least once in every 3 CALENDAR year period
thereafter, the Retirement Commission may require a
disability retired Member to undergo a medical or other
re-evaluation by the medical director if the individual has
not attained Age 60 years. If the disability retired Member
refuses to submit to re-evaluation, payment of the pension
may be suspended by the Retirement Commission. If the
refusal continues for on year 12 CONTINUOUS MONTHS, the
Retirement Commission may revoke the disability retired
Member's rights in and to the disability pension. A
disability pension shall be terminated if the medical
director reports that the disability retired Member is no
longer mentally or physically totally incapacitated for
continued employment by the County and the Retirement
Commission concurs with the report.
(b) The Membership status of a terminated disability
retired Member who is returned to County employment shall be
governed by the provisions of Sections 4 and 5 EXCEPT THAT
THEY SHALL BECOME A MEMBER OF THE DC PART FOR FUTURE
BENEFITS. Actual credited service at time of disability
retirement shall be restored when the Member again acquires
Membership. Credited service shall not be granted for the
period of disability retirement unless the Member was in
receipt of a disability pension on account of a disability
arising out of and in the course of County employment.
(c) A disability retired Member whose benefit has been
terminated who does not reacquire Membership and restoration
-22-
BIRMINGHAM, MICHIGAN 4•009 (.iO) ••9-5940 of credited service shall have actual credited service at
time of disability retirement restored if such restoration
enables the individual to become a vested former Member.
Survivor Pension; Conditions for Automatic Pension to Spouse.
Section 29. A pension shall be paid for life to the
surviving spouse of a deceased Member OF THE DB PART if the
following conditions are met:
(a) The Member was married to the surviving spouse at
time of death; and either
(b) The Member had 10 or more years of credited service
and died while an Employee of the County; or
(c) The Member was a vested former Member who had 20 or
more years of credited service.
• THE BENEFIT FOR THE SURVIVING SPOUSE OF A DECEASED MEMBER OF
• THE DC PART SHALL BE THE VALUE OF THE MEMBER'S FIXED ACCOUNT
• IF THE ABOVE CONDITIONS ARE MET. 0
4 • Survivor Pension; Amount of Automatic Pension to Spouse. 0
• Section 30. The amount of the automatic survivor pension 0 ; 4 FROM THE DB PART shall be computed as if the deceased Member
O had retired the day preceding death with a normal retirement
O benefit (Sections 17-20) and nominated the spouse as the
• survivor Beneficiary. If the deceased Member had 15 or more
O years of service or had attained Age 60, the survivor pension
11 • will be calculated as if form of payment A (Section 23) had
been elected. If the deceased Member had fewer than 15 years
of service and was under Age 60, the survivor pension will be
calculated as if form of payment B (Section 23) had been
elected. The spouse pension shall commence at the time 0 • stipulated in Section 39. Upon the death of the spouse, the
pension shall terminate.
0
4 • Survivor Pension; Elective Beneficiary; Conditions for
• Coverage.
Section 31. (a) A Member may name a contingent survivor
4 beneficiary for the exclusive purpose of being paid a pension
under the provisions of this section. The naming of a
contingent survivor beneficiary shall be made on a form
provided by and filed with the Retirement System. The named
contingent survivor beneficiary may be changed or the
election revoked at any time.
-23-
LAW OFFICES MACOON•LD AND GOREN, PROFESSIONAL CORPORATION 200 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN AllOOD OHO) 64S-SDA0 (b) A pension shall be paid to the named contingent
survivor beneficiary, for life, IF THE DECEASED MEMBER WAS IN
THE DB PART OF THE RETIREMENT SYSTEM AND if each of the
following conditions are met:
(1) The Member dies while an employee of the
County.
(2) The Member, at time of death, has 25 or more
years of credited service; or, is Age 60 years or older and
has 10 or more years of credited service.
(3) The named contingent survivor beneficiary is
found by the Retirement Commission to have been dependent
upon the deceased Member for at least 50 percent of the
individual's financial support.
(C) IF THE DECEASED MEMBER WAS IN THE DC PART OF THE
RETIREMENT SYSTEM AND EACH OF THE CONDITIONS IN (B) ARE
SATISFIED, THEN THE DEATH BENEFIT PAID TO THE CONTINGENT
SURVIVOR BENEFICIARY SHALL BE THE VALUE OF THE MEMBER'S FIXED
ACCOUNT IN A LUMP SUM.
Survivor Pension; Elective Beneficiary; Amount of Pension.
Section 32. The amount of pension paid to the elective
Beneficiary FROM THE DB PART shall be computed as if the
deceased Member had retired under the applicable normal
retirement provisions (Sections 17 - 20) the day preceding
death, elected form of payment A, and named the elective
beneficiary as survivor beneficiary. The pension shall
terminate upon the death of the elected beneficiary. FOR A
MEMBER IN THE DC PART, THE DEATH BENEFIT PAID SHALL BE THE
VALUE OF THE FIXED ACCOUNT AS OF THE DATE BEFORE
DISTRIBUTION. DISTRIBUTION FROM THE DC PART SHALL BE IN A
LUMP SUM.
Survivor Pension; Special Provisions if Duty Incurred.
Section 33. In the event a Member OF THE DB PART dies, or
disability retired Member dies within 3 years of the date of
retirement, and the Retirement Commission finds that the
death is the direct and proximate result of the Member's or
disability retired Member's performance of duty as an
employee of the County and if worker's compensation is
granted on account of the death arising out of and in the
course of County employment, the following provisions shall
apply in lieu of Sections 29 through 32:
(a) If the Member had not retired, the accumulated
Member contributions shall be refunded in accordance with
Section 53;
-24-
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, •I1FMINGHAM, MICHIGAN 48009 (WO) •46•6940 (b) The surviving spouse of the deceased Member or
retired Member shall receive a pension equal to the spouse's
weekly worker's compensation converted to an annual basis.
The spouse's pension shall begin upon termination of the
statutory period for payment of the worker's compensation and
shall continue until the earlier of the spouse's remarriage
or death. As used in this section, the term spouse means the
person to whom the Member or retired Member was married at
the time the Member's or retired Member's last employment
with the County was terminated;
(c) If the deceased Member or retired Member leaves an
unmarried child or children under age 18 years, each such
child shall receive a pension equal to the child's weekly
worker's compensation converted to an annual basis. The
child's pension shall begin upon termination of the statutory
period for payment of the worker's compensation and shall
continue until the earliest of the child's adoption,
marriage, attainment of age 18 years or death. If there is
no spouse to receive a spouse's pension or the spouse's
pension is terminated, each such child's pension shall be
increased by an equal share of the spouse's pension;
(d) The deceased Member's or retired Member's parents
shall each receive a pension equal to such parent's weekly
worker's compensation converted to an annual basis. The
parent's pension shall begin upon termination of the
statutory period for payment of the parent's worker's
compensation and shall continue until tha—earIlax—ol
zamazzIago—oz death;
(e) In no case shall the sum of the annual benefits
provided in paragraphs (b), (c) and (d) of this section
exceed the greater of (i) $4,800 and (ii) 2 percent of the
deceased Member's or retired Member's final average
compensation multiplied by the Member's or retired Member's
credited service not to exceed 37.5 years.
Survivor Pension; Only One Pension Payable.
Section 34. No pension payments shall be made under the
provisions of Sections 29 and 30 if any pension is or will be
paid under the provisions of Sections 31 and 32. No pension
payments shall be made under the provisions of Sections 29,
30, 31 and 32 if any pension is or will be paid under the
provisions of Section 33.
Post -Retirement Benefit Increases
Section 35. Each monthly pension which becomes effective on
or after January 1, 1969 shall be redetermined each May 1
-25-
Par-aciat.-agia
of.--Annua-1
engf it Retirement Date LAW OFFICE5 NACOONALD AND GOREN, pRoTCSSioNAL coRPORATION 210 EAST BROWN sTRBET, SuiTE 200, BIRMINGHAM, MICHIGAN 41009 (siO) 045-5940 that is at least 12 full months after the effective date of
the pension. The redetermined amount shall be the amount of
the pension otherwise payable increased by 1.5 percent for
each full year between the effective date of the pension and
the date of redetermination. The redetermined amount shall
not exceed the amount resulting from multiplying (a) times
(b) and dividing the product by (c), where
- (a) is the amount of the pension otherwise payable,
- (b) is the average of the C. P. I.- W for the calendar year
immediately preceding the date of the redetermination, and
- (c) is the average of the C. P. I. W for the calendar
year immediately preceding the effective date of the pension.
The redetermined amount shall not be less than the amount of
the pension otherwise payable. "The amount of the pension
otherwise payable" means the monthly amount of pension which
would be payable disregarding these provisions redetermining
benefit amounts after retirement. "C. P. I. - W" means the
Consumer Price Index for Urban Wage Earners and Clerical
Workers - United States City Average as determined by the
United States Department of Labor and in effect for January
1988. If the C. P. I. - W is restructured after 1988 in a
manner materially changing its character, the Retirement
Commission, after receiving the advice of the Actuary, shall
change the application of the C. P. I. - W so that, as far as
is practicable, the general effect of using the restructured
C. P. I. - W shall be similar to the general effect of using
the C. P. I. - W before restructuring.
July-_laso-SpeciaL-Saymeat
9xprQhed in the following
I941-and-Rzlar
1.3.64--thx-augh-1949.
19-14--thr.Q494-19-12 -831.
I973-thzaagh-1945
1944—th=4.10—.6-113..89 „La.
-26-
LAW OFFICES mACOONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST •R0WN STREET, SUFTE 100, IIIRMINGHAM. MICHIGAN ARGOS (1110) ••s•Se• Guaranteed Minimum Aggregate Payout.
Section 36. If all pension payments permanently terminate
before there has been paid an aggregate amount equal to the
retired Member's, deceased Member's, or deceased vested
former Member's accumulated Member contributions at time of
retirement, the difference between the amount of accumulated
Member contributions and the aggregate amount of pension
payments made shall be paid to such individual or individuals
as the former Member may have named on a form provided by and
filed with the Retirement System. If no such named
individual survives, the difference shall be paid to the
legal representative of the last to survive of the individual
who was being paid a pension or the named individuals.
Pensions; Application for.
Section 37. The date of a Member's retirement FROM EITHER
THE DB PART OR THE DC PART shall be not less than 30 days nor
more than 90 days after the Member files with the Retirement
Commission, on forms provided by the Board, a written
application for retirement.
Pensions; Payment of.
Section 38. All payments from the Retirement System shall be
made according to the provisions of law, this resolution and
procedures approved by the Retirement Commission.
Pensions; Commencement, Duration and Change.
Section 39. (a) A normal or disability pension shall
commence on the date of the Member's or vested former
Member's retirement. A survivor pension for a Member who
died while employed by the County shall commence on AS OF the
day following the Member's death. A survivor pension for a
vested former Member shall commence on the date the vested
former Member would have been eligible to retire (Section 21)
based upon the credited service and retirement provisions in
effect on the date of the Member's death. A post-retirement
survivor pension shall commence the day following the retired
Member's death.
(b) Pensions FROM THE DB PART are paid in 12 equal
installments on the last day of each month. If the
commencement date of a pension is not the first day of a
calendar month, the amount of the first pension payment shall
be pro-rated in proportion to the number of days between the
commencement date and the last day of the calendar month
-27-
• •
IF;
•
•
containing the commencement date. BENEFITS FROM THE DC PART
ARE PAID IN A LUMP SUM.
(c) A pension FROM THE DB PART shall terminate at the
end of the calendar month in which the event causing the
termination occurred. Payment for the month of termination
shall be pro-rated in proportion to the number of days
between the first day of the calendar month and day on which
the terminating event occurred.
(d) A change in the amount of a pension shall occur, if 4
• not specified elsewhere, on the first day of the calendar
month next following the date of the event causing the
• change. 0
Denial of Claim for Benefits; Appeal to Retirement
• Commission.
Section 40. (A) A benefit claimant shall be notified in
• writing, within 30 days, of a denial of a claim for benefits.
• The notification shall contain the basis for denial. The
• benefit claimant may appeal the denial and request a hearing
• before the Retirement Commission. The appeal shall be in 0 0 • writing and filed with the Retirement Commission within 90 0 • days of the date of the notification of denial. The request 4
0 • for appeal shall contain a statement of the claimant's
• reasons for believing the denial to be improper. The 0 • Retirement Commission shall schedule a hearing of the appeal
0 • within 60 days of receipt of the request for appeal.
0
(B) PROTECTION FROM REPRISAL. NO PERSON MAY BE
O
•
DISCHARGED, FINED, SUSPENDED, EXPELLED, DISCIPLINED, OR
OTHERWISE DISCRIMINATED AGAINST FOR EXERCISING ANY RIGHT THAT
HE IS ENTITLED TO OR FOR COOPERATION WITH ANY INQUIRY OR
INVESTIGATION UNDER THE PROVISIONS OF THIS RETIREMENT SYSTEM
• OR ANY GOVERNING LAW OR REGULATIONS. 0 0 0 NO PERSON SHALL, DIRECTLY OR INDIRECTLY, THROUGH THE USE
a OR THREATENED USE OF FRAUD, FORCE OR VIOLENCE, RESTRAIN,
COERCE OR INTIMIDATE ANY MEMBER OR BENEFICIARY FOR THE 0 • PURPOSE OF INTERFERING WITH OR PREVENTING THE EXERCISE OF OR
2 ENFORCEMENT OF ANY RIGHT, REMEDY OR CLAIM THAT HE IS ENTITLED
TO UNDER THE RETIREMENT SYSTEM OR ANY GOVERNING LAW OR
REGULATIONS. 0
Retirement Commission; Authority and Responsibility.
Section 41. The administration, management and
responsibility for the proper operation of the Retirement
System, and for interpreting and making effective the
-28-
LAW OFFICES HACOONALD AND GOREN, PROFESSIONAL CORPORATION 280 EAST 8ROWM STREET, SUITE 200, BIRMINGHAM, micHia•N •soog 0010 s•s-so•0 provisions of the retirement resolution are vested in a
Retirement Commission. THE RETIREMENT COMMISSION SHALL HAVE
POWER TO CONSTRUE THIS RESOLUTION, ANY SUCH CONSTRUCTION MADE
IN GOOD FAITH SHALL BE FINAL AND CONCLUSIVE. THE RETIREMENT
COMMISSION SHALL HAVE THE POWER TO CORRECT ANY DEFECT, SUPPLY
ANY OMISSION, OR RECONCILE ANY INCONSISTENCIES IN SUCH MANNER
AND TO SUCH EXTENT AS IT SHALL DEEM PROPER TO CARRY OUT THE
OBJECTIVES OF THIS RESOLUTION. THE RETIREMENT COMMISSION
SHALL BE THE SOLE, FINAL AND CONCLUSIVE JUDGE OF SUCH
PROPRIETY AND SHALL ACT IN A UNIFORM AND NON-DISCRIMINATORY
MANNER.
Retirement Commission; Composition of.
Section 42. The Retirement Commission shall consist of the
following nine individuals:
(a) The chairperson of the Board of County
Commissioners by virtue of that office;
(b) The County Executive by virtue of that office;
(c) The chairperson of the County Finance Committee by
virtue of that office;
(d) The County Treasurer by virtue of that office;
(e) A citizen, who is an elector in Oakland County who
is not eligible for Membership in the Retirement System or
benefits under the Retirement System and who does not hold
any other office or appointment with the County, to be
selected by the Board of County Commissioners.
(f) Three Members of.the Retirement System who are not
elected officials, to be elected by the Members of the
Retirement System. The three Commissioners shall be from
different County departments.
(g) A retired Member of the Retirement System who
resides in Oakland County, to be elected by the retired
Members of the Retirement System.
The Retirement Commission shall establish rules and
regulations for elections required by paragraph (f) and (g).
Retirement Commission; Term of Office; Oath of Office;
Vacancies.
Section 43. (a) The term of office of the Member elected
Commissioners shall be 4 years. The term of office of the
-29-
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 250 EAST •ROWN , SUITE 21212, •IRM1NGHAM, MICHIGAN 45005 (510) 545-5540 citizen Commissioner shall be 4 years, one term expiring each
year. The term of office of the retired Member Commissioner
shall be 2 years.
(b) Each Commissioner shall, prior to taking office,
take an oath of office administered by the County Clerk.
(c) A vacancy shall occur on the Retirement Commission
if a Member elected Commissioner ceases to be a Member. A
vacancy shall occur on the Retirement Commission if a
Commissioner resigns. If a Member elected Commissioner
becomes employed in the same County department as another
Member elected Commissioner, the transferring Commissioner
shall be considered to have resigned. A vacancy shall occur
if at any time the Retirement Commission determines that a
Commissioner does not meet the requirements specified in
Section 42 for his or her position on the Retirement
Commission. A vacancy shall be filled within 90 days, for
the unexpired term, in the same manner as the position was
previously filled.
Retirement Commission Meetings; Quorum; Voting; Record of
Proceedings.
Section 44. (a) The Retirement Commission shall hold
meetings regularly, at least one in each calendar month and
shall designate the time and place thereof. All meetings of
the Retirement Commission shall be public. Notice of the
meetings will be posted in the County building prior to the
meeting date.
(b) Five attending commissioners shall constitute a
quorum at any meeting of the Retirement Commission.
(c) Each attending commissioner shall be entitled to 1
vote on each question before the Retirement Commission. At
least 4 concurring votes shall be required for a valid action
by the Retirement Commission.
(d) The Retirement Commission shall adopt its own rules
of procedure and shall keep a written record of its
proceedings.
Retirement Commission; Officers; Services.
Section 45. (a) The Retirement Commission shall elect from
its Membership a chairperson and a vice chairperson.
(b) The Retirement Commission shall appoint an
individual who shall be the secretary to the Retirement
-30-
PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 41005 (hHO) 645.5540 LAW OFFICES Commission and the administrative officer of the Retirement
System.
(c) The County Treasurer shall be the treasurer of the
Retirement System. The treasurer shall be custodian of the
assets of the Retirement System except as to such assets as
the Retirement Commission may from time to time place in the
custody of a nationally chartered bank or trust company.
(d) The Corporation Counsel shall be legal advisor to
the Retirement Commission.
(e) The Retirement Commission shall designate as the
medical director a physician who is not eligible to
participate in the Retirement System as a Member, retired
Member or Beneficiary. The medical director shall hold
office at the pleasure of the Commission.
(f) The Retirement Commission shall designate an
actuary who shall advise the Board on the actuarial operation
of the Retirement System. Actuary shall mean a Member of the
American Academy of Actuaries. A partnership or corporation
may be designated as actuary if the duties of actuary are
performed by or under the direct supervision of an individual
who meets the preceding requirement.
(g) The Retirement Commission is authorized and
empowered to employ such professional and other services as
it requires for the proper discharge of its responsibilities.
Such services shall be engaged and compensated in the same
manner that similar services are engaged and compensated by
other departments of the County. The Retirement Commission
may utilize the services of County employees if made
available.
Retirement Commission; Reports.
Section 46. The Retirement Commission shall prepare an
annual report for each fiscal year. The annual report shall
contain information about the financial, actuarial and other
activities of the Retirement System during the fiscal year.
A copy of the annual report shall be furnished to the Board
of County Commissioners. The Retirement Commission shall
furnish the Board of County Commissioners such other
information about the Retirement System as the Board of
County Commissioners may from time to time request.
LAW OFFICES 12AcoONALO AND GOREN, PROFESSIONAL CORPORATION 260 EAST •ROWN STREET, SUITE 200, •IIRMINGHAM, plicNioAN 460125 (um) 64g•s640 Retirement Commission; Investment Authority and Restrictions.
Section 47. (A) The Retirement Commission is the trustee of
the monies and assets of the Retirement System. The
Retirement Commission has the authority and power to invest
and re-invest the monies and assets of the Retirement System
subject to all terms, conditions, limitations and
restrictions imposed by the State of Michigan on the
investments of public employee retirement systems. The
Retirement Commission shall have full power to hold, sell,
assign, transfer and dispose of any securities of the
Retirement System. The Retirement Commission may employ
investment counsel to advise the Board in the making and
disposition of investments.
In exercising its discretionary authority with respect to the
management of the monies and assets of the Retirement System,
the Retirement Commission shall exercise the care, skill,
prudence. and diligence, under the circumstances then
prevailing, that an individual of prudence acting in a like
capacity and familiar with such matters would use in the
conduct of an enterprise of like character and similar
objectives. THIS SHALL INCLUDE DIVERSIFYING THE RETIREMENT
SYSTEM'S INVESTMENTS SO AS TO MINIMIZE THE RISK OF LARGE
LOSSES, UNLESS UNDER THE CIRCUMSTANCES IT APPEARS NOT PRUDENT
TO DO SO. THIS STANDARD SHALL NOT BE APPLIED TO INVESTMENTS
IN ISOLATION BUT RATHER IN THE CONTEXT OF THE RETIREMENT
SYSTEM'S PORTFOLIO AND AS A PART OF THE OVERALL INVESTMENT
STRATEGY, WHICH SHALL INCORPORATE RISK AND RETURN OBJECTIVES
REASONABLY SUITED TO THE RETIREMENT SYSTEM.
(B) EXCEPT FOR FRAUD, GROSS NEGLECT OR MALFEASANCE,
JUDICIALLY DETERMINED, NO OFFICER, DIRECTOR, OR EMPLOYEE OF
THE COUNTY, FIDUCIARY OR RETIREMENT COMMISSION SHALL BE
PERSONALLY LIABLE FOR ACTS DONE HEREUNDER, OR FOR THE MAKING,
RETENTION OR SALE OF ANY INVESTMENT OR REINVESTMENT MADE AS
PROVIDED HEREIN, OR FOR THE FAILURE TO INVEST OR REINVEST ANY
FUNDS OF THE TRUST, OR FOR ANY LOSS TO OR DIMINUTION OF THE
TRUST NOR SHALL THE RETIREMENT COMMISSION OR ANY FIDUCIARY BE
PERSONALLY LIABLE FOR OR ANSWERABLE TO ANY MEMBER OR ANY
OTHER PERSON IN CONNECTION WITH THE EXERCISE OF ANY
DISCRETION UNDER THIS RETIREMENT SYSTEM. NO TRUSTEE OR OTHER
FIDUCIARY SHALL BE LIABLE OR RESPONSIBLE FOR THE ACTS OR
OMISSIONS OF ANY OTHER TRUSTEE OR FIDUCIARY.
(C) NOTWITHSTANDING PARAGRAPH (B), NO FIDUCIARY WITH
RESPECT TO THE RETIREMENT SYSTEM SHALL BE EXCUSED FROM
LIABILITY FOR A BREACH OF FIDUCIARY RESPONSIBILITY OF ANOTHER
TRUSTEE OR OTHER FIDUCIARY OF THE RETIREMENT SYSTEM IN THE
FOLLOWING CIRCUMSTANCES:
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LAW OFFICES MACDONALD AND GOREN. PROFESSIONAL CORPORATION 2E0 EAST DROWN STREET, SUITE 200, SIRMINGH•M, MICHIGAN ARDOR WO 13•3-79•0 (1) IF HE PARTICIPATES KNOWINGLY IN, OR KNOWINGLY
UNDERTAKES TO CONCEAL, AN ACT OR OMISSION OF A TRUSTEE OR
FIDUCIARY, KNOWING SUCH ACT IS A BREACH OF FIDUCIARY
RESPONSIBILITY;
(2) IF, BY HIS FAILURE TO COMPLY WITH SUBPARAGRAPH
(1) IN THE ADMINISTRATION OF HIS SPECIFIC RESPONSIBILITIES AS
A FIDUCIARY OF THE RETIREMENT SYSTEM, HE HAS ENABLED THE
OTHER FIDUCIARY TO COMMIT A BREACH OF FIDUCIARY
RESPONSIBILITY; OR
(3) IF HE HAS KNOWLEDGE OF A BREACH BY ANOTHER
FIDUCIARY UNLESS HE MAKES REASONABLE EFFORTS UNDER THE
CIRCUMSTANCES TO REMEDY THE BREACH.
Retirement Commission; Use of Monies and Assets; Prohibited
Actions.
Section 48. (a) All monies and assets of the Retirement
System shall be held and invested for the sole purpose of
meeting the legitimate obligations of the Retirement System
and shall be used for no other purpose.
(b) Members of the Retirement Commission and its
employees are prohibited from:
(1) Having a beneficial interest, direct or
indirect, in an investment of the Retirement System.
(2) Borrowing money or assets of the Retirement
System.
(3) Receiving any pay or emolument from any
individual or organization providing services to the
Retirement System other than compensation for personal
services or reimbursement of authorized expenses paid by the
Retirement System.
Retirement Commission; Compensation.
Section 49. The Commissioners, except for the employee
Member Commissioners and the retired Member Commissioner,
shall be paid a per diem for attending meetings of the
Commission. All Commissioners shall be reimbursed for the
actual and necessary expenses they incur in performing their
duties as Commissioners.
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST GROWN STREET, SUITE 200, eirRMINGHAM, MICHIGAN 48004 (II40) 41145-51340 Retirement Commission; Experience Tables and Regular
Interest.
Section 50. The Retirement Commission shall from time to
time adopt such mortality and other tables of experience, and
a rate or rates of regular interest, as are necessary in the
proper operation of the DB PART OF THE Retirement System on
an actuarial basis. "ACTUARIAL BASIS" MEANS A FORM OF
BENEFIT DIFFERING IN TIME, PERIOD, OR MANNER OF PAYMENT FROM
A SPECIFIC BENEFIT PROVIDED BY THE RETIREMENT SYSTEM BUT
HAVING THE SAME VALUE.
IN THE EVENT THIS SECTION IS AMENDED, THE ACTUARIAL
EQUIVALENT OF A MEMBER'S ACCRUED BENEFIT ON OR AFTER THE DATE
OF CHANGE SHALL BE DETERMINED AS THE GREATER OF (1) THE
ACTUARIAL EQUIVALENT OF THE ACCRUED BENEFIT AS OF THE DATE OF
CHANGE COMPUTED ON THE OLD BASIS, OR (2) THE ACTUARIAL
EQUIVALENT OF THE TOTAL ACCRUED BENEFIT COMPUTED ON THE NEW
BASIS.
Financial Objective of the Retirement System; County
Contributions.
Section 51. (a) The financial objective of the DB PART OF
THE Retirement System is to receive contributions each fiscal
year that are sufficient to (i) fund the actuarial cost of
benefits likely to be paid on account of credited service
earned by Members during the fiscal year, and (ii) fund the
unfunded actuarial cost of benefits likely to be paid on
account of credited service earned by Members prior to the
fiscal year over a period of not more than 40 years.
Contribution requirements shall be determined by annual
actuarial valuation using a generally recognized level
percent of payroll actuarial cost method.
(B) THE FINANCIAL OBJECTIVES OF THE DC PART OF THE
RETIREMENT SYSTEM IS TO RECEIVE CONTRIBUTIONS EACH FISCAL
YEAR THAT ARE SUFFICIENT TO FUND THE DC PART.
-04(C) The Retirement Commission shall certify to the
Board of County Commissioners the amount of annual
contribution needed to meet the financial objective and the
Board of County Commissioners shall appropriate and cause the
contribution to be paid to the Retirement System.
(D) LIMITATION.
(1) A COUNTY CONTRIBUTION FOR ANY PLAN YEAR SHALL
BE MADE ONLY IF SAME WOULD BE A CODE SECTION 404 ALLOWABLE
DEDUCTION IF THE COUNTY WERE A TAXABLE ENTITY. THE
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LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPoltAtiON 260 EAST enowr4 STREET, SUITE 200, BIRMINGHAM, MICHIGAN 45009 WO 9A5-S960 CONDITIONS OF TAX DEDUCTIBILITY SHALL CONCLUSIVELY BE
PRESUMED TO BE A CONDITION OF SUCH CONTRIBUTION. NO
CONTRIBUTION SHALL BE MADE IF IT WILL CAUSE THE ANNUAL
ADDITION TO EXCEED THE LESSER OF (A) TWENTY-FIVE PERCENT
(25%) OF A MEMBER'S 415 COMPENSATION FOR A LIMITATION YEAR OR
(B) THE GREATER OF: (I) THIRTY THOUSAND AND 00/100 DOLLARS
($30,000.00); OR (II) ONE-FOURTH (1/4) OF THE CODE SECTION
415(B)(1) DEFINED BENEFIT DOLLAR LIMITATION FOR THE
LIMITATION YEAR. THE COMPENSATION LIMITATION REFERRED TO IN
(A) SHALL NOT APPLY TO ANY CONTRIBUTION FOR CODE SECTIONS
401(H) OR 419A(F)(2) MEDICAL BENEFITS WHICH ARE OTHERWISE
TREATED AS ANNUAL ADDITIONS UNDER CODE SECTIONS 415(1)(1) OR
419A(D)(2).
(2) NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO
THE CONTRARY, AND PURSUANT TO TAX REFORM ACT OF 1986 SECTION
1106(H), THIS RETIREMENT SYSTEM HEREBY INCORPORATES THE
LIMITATIONS OF CODE SECTION 415 BY THIS REFERENCE. PURSUANT
TO THIS INCORPORATION BY REFERENCE,
(I) ANY MEMBER WHO PARTICIPATES OR PARTICIPATED IN
BOTH DEFINED BENEFIT PLAN(S) (AS DEFINED IN ERISA
SECTION 3(35)] AND/OR DEFINED CONTRIBUTION PLAN(S) SHALL
HAVE THEIR ANNUAL ADDITION FURTHER LIMITED. IN NO EVENT
SHALL THE SUM OF THE DEFINED BENEFIT FRACTION AND THE
DEFINED CONTRIBUTION FRACTION EXCEED 1.0 ("COMBINED PLAN
FRACTION").
(II) (1) THE DEFINED BENEFIT FRACTION IS A
FRACTION-- (A) THE NUMERATOR OF WHICH IS THE
MEMBER'S ACCRUED BENEFIT IN ALL DEFINED BENEFIT
PLANS MAINTAINED BY THE COUNTY (WHETHER OR NOT
TERMINATED) (DETERMINED AS OF THE CLOSE OF THE PLAN
YEAR), AND (B) THE DENOMINATOR OF WHICH IS THE
LESSER OF -
(I) THE PRODUCT OF 1.25 MULTIPLIED BY
THE CODE SUBSECTION 415(B)(1)(A) DOLLAR
LIMITATION FOR SUCH PLAN YEAR, OR
(II) THE PRODUCT OF -
(A) 1.4, MULTIPLIED BY
(B) THE AMOUNT WHICH MAY BE TAKEN
INTO ACCOUNT UNDER CODE SUBSECTION
415(B)(1)(B) FOR SUCH INDIVIDUAL FOR THE
PLAN YEAR.
(2) NOTWITHSTANDING THE ABOVE, IF THE MEMBER
PARTICIPATED IN A PLAN IN EXISTENCE ON JULY 1,
1982, THE DENOMINATOR OF THIS FRACTION SHALL NOT BE
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LAW OFFICEs mACDONALD AND GOREN, PROFESSioNAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIG•N •6009 (610) LESS THAN 125% OF THE SUM OF THE ANNUAL BENEFITS
UNDER SUCH PLAN WHICH THE MEMBER HAD ACCRUED AS OF
THE LATER OF SEPTEMBER 30, 1983 OR THE END OF THE
LAST LIMITATION YEAR BEGINNING BEFORE JANUARY I,
1983. THE PRECEDING SENTENCE APPLIES ONLY IF THE
DEFINED BENEFIT PLANS INDIVIDUALLY AND IN THE
AGGREGATE SATISFIED THE REQUIREMENTS OF CODE
SECTION 415 AS IN EFFECT AT THE END OF THE 1982
LIMITATION YEAR.
(3) NOTWITHSTANDING THE LIMITATIONS IN
(II)(1), IF THE MEMBER WAS A PARTICIPANT AS OF THE
FIRST DAY OF THE FIRST LIMITATION YEAR BEGINNING
AFTER DECEMBER 31, 1986, IN ONE OR MORE DEFINED
BENEFIT PLANS MAINTAINED BY THE COUNTY WHICH WERE
IN EXISTENCE ON MAY 6, 1986, THE DENOMINATOR OF
THIS FRACTION WILL NOT BE LESS THAN 125 PERCENT OF
THE SUM OF THE ANNUAL BENEFITS UNDER SUCH PLAN
WHICH THE MEMBER HAD ACCRUED AS OF THE CLOSE OF THE
LAST LIMITATION YEAR BEGINNING BEFORE JANUARY I,
1987, DISREGARDING ANY CHANGES IN THE TERMS AND
CONDITIONS OF THE PLAN AFTER MAY 5, 1986. THE
PRECEDING SENTENCE APPLIES ONLY IF THE DEFINED
BENEFIT PLANS INDIVIDUALLY AND IN THE AGGREGATE
SATISFIED THE REQUIREMENTS OF SECTION 415 FOR ALL
LIMITATION YEARS BEGINNING BEFORE JANUARY 1, 1987.
(III) THE DEFINED CONTRIBUTION FRACTION IS A
FRACTION -- (A) THE NUMERATOR OF WHICH IS THE SUM OF THE
ANNUAL ADDITIONS AS OF THE CLOSE OF THE PLAN YEAR FOR
ALL DEFINED CONTRIBUTION PLANS (WHETHER OR NOT
TERMINATED) MAINTAINED BY THE COUNTY FOR THE CURRENT AND
ALL PRIOR LIMITATION YEARS (INCLUDING THE ANNUAL
ADDITIONS ATTRIBUTABLE TO THE MEMBER'S NONDEDUCTIBLE
EMPLOYEE CONTRIBUTIONS TO ALL DEFINED BENEFIT PLANS,
WHETHER OR NOT TERMINATED, MAINTAINED BY THE COUNTY),
AND THE ANNUAL ADDITIONS ATTRIBUTABLE TO ALL WELFARE
BENEFIT FUNDS, AS DEFINED IN CODE SECTION 419(E), AND
INDIVIDUAL MEDICAL ACCOUNTS, AS DEFINED IN CODE SECTION
415(L)(2), MAINTAINED BY THE COUNTY) AND (B) THE
DENOMINATOR OF WHICH IS THE SUM OF THE LESSER OF THE
FOLLOWING AMOUNTS DETERMINED SEPARATELY FOR SUCH PLAN
YEAR AND FOR EACH PRIOR YEAR OF SERVICE WITH THE COUNTY
(REGARDLESS OF WHETHER A DEFINED CONTRIBUTION PLAN WAS
MAINTAINED BY THE COUNTY):
(1) THE PRODUCT OF 1.25, MULTIPLIED BY THE
APPLICABLE DOLLAR LIMITATION FOR SUCH PLAN YEAR
[DETERMINED WITHOUT REGARD TO CODE SUBSECTION
415(C)(6)], OR
(2) THE PRODUCT OF -
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LAW OFFICES MACDONALD AHD GOREN, PROFESSIONAL CORPORATION 360 EAST SHOWN STREET, SUITE 300, IHRISINGHAM, MICHIGAN 411009 WO •45-5940 4..
(I) 1.4, MULTIPLIED BY -
(II) THE AMOUNT WHICH MAY BE TAKEN INTO
ACCOUNT UNDER CODE SUBSECTION 415(C)(1)(B) FOR
THE MEMBER FOR THAT PLAN YEAR.
(3) IF THE COMBINED PLAN FRACTION EXCEEDS 1.0, THE
ANNUAL ADDITIONS TO THE EMPLOYER'S DEFINED CONTRIBUTION PLANS
SHALL BE LIMITED NOTWITHSTANDING ANY FORMULA OR PROVISION, TO
SUCH AMOUNT AS WILL REDUCE SUCH SUM TO 1.0. STEPS TO REDUCE
SUCH FRACTION SHALL FIRST BE BY LIMITING OR ELIMINATING ANY
VOLUNTARY CONTRIBUTIONS; SECOND BY REALLOCATING ANY
FORFEITURES TO OTHER MEMBERS; AND LASTLY BY REDUCING THE
CONTRIBUTION FORMULA. IF, DUE TO A REASONABLE ERROR IN
ESTIMATING A MEMBER'S COMPENSATION, OR DUE TO THE ALLOCATION
OF FORFEITURES, AN EXCESS ANNUAL ADDITION EXISTS, SUCH EXCESS
SHALL BE DISPOSED OF AS FOLLOWS:
(I) NON-DEDUCTIBLE VOLUNTARY EMPLOYEE
CONTRIBUTIONS SHALL BE RETURNED TO THE MEMBER AS
NECESSARY;
(II) IF AN EXCESS STILL EXISTS, THE EXCESS AMOUNT
SHALL BE USED TO REDUCE EMPLOYER CONTRIBUTIONS FOR SUCH
MEMBER IN THE NEXT, AND SUCCEEDING, LIMITATION YEARS.
IF THE MEMBER WAS NOT COVERED BY THE PLAN AT THE END OF
THE LIMITATION YEAR, SUCH EXCESS SHALL BE APPLIED TO
REDUCE THE COUNTY'S CONTRIBUTIONS FOR ALL REMAINING
MEMBERS IN THE NEXT, AND SUCCEEDING, LIMITATION YEARS.
(4) IF THE EMPLOYER CONTRIBUTION THAT WOULD
OTHERWISE BE ALLOCATED TO THE MEMBER'S ACCOUNT WOULD CAUSE
THE ANNUAL ADDITIONS FOR THE LIMITATION YEAR TO EXCEED THE
MAXIMUM PERMISSIBLE AMOUNT, THE AMOUNT ALLOCATED SHALL BE
REDUCED SO THAT THE ANNUAL ADDITIONS FOR THE LIMITATION YEAR
EQUAL THE MAXIMUM PERMISSIBLE AMOUNT.
(5) "SECTION 415 COMPENSATION." FOR PURPOSES OF
THE LIMITATION CONTAINED IN THIS SECTION, THE FOLLOWING SHALL
APPLY. "SECTION 415 COMPENSATION" IS A MEMBER'S EARNED
INCOME, WAGES, SALARIES, AND FEES FOR PROFESSIONAL SERVICES
AND OTHER AMOUNTS RECEIVED FOR PERSONAL SERVICES ACTUALLY
RENDERED IN THE COURSE OF EMPLOYMENT WITH THE COUNTY
(INCLUDING, BUT NOT LIMITED TO, COMMISSIONS PAID SALESMEN,
COMPENSATION FOR SERVICES ON THE BASIS OF A PERCENTAGE OF
PROFITS, COMMISSIONS ON INSURANCE PREMIUMS, TIPS AND
BONUSES), AND EXCLUDING THE FOLLOWING:
(I) EMPLOYER CONTRIBUTIONS TO A PLAN OF DEFERRED
COMPENSATION WHICH ARE NOT INCLUDIBLE IN THE EMPLOYEE'S
GROSS INCOME FOR THE TAXABLE YEAR IN WHICH CONTRIBUTED,
OR EMPLOYER CONTRIBUTIONS UNDER A SIMPLIFIED EMPLOYEE
-37-
it
it
Section 52.
Member Contributions; Amounts.
PENSION PLAN TO THE EXTENT SUCH CONTRIBUTIONS ARE
DEDUCTIBLE BY THE EMPLOYEE, OR ANY DISTRIBUTIONS FROM A
PLAN OF DEFERRED COMPENSATION;
0 (II) AMOUNTS REALIZED FROM THE EXERCISE OF A NON-
.
4 QUALIFIED STOCK OPTION, OR WHEN RESTRICTED STOCK (OR
PROPERTY) HELD BY THE EMPLOYEE EITHER BECOMES FREELY
TRANSFERABLE OR IS NO LONGER SUBJECT TO A SUBSTANTIAL
RISK OF FORFEITURE; 0
O (III) AMOUNTS REALIZED FROM THE SALE, EXCHANGE OR
OTHER DISPOSITION OF STOCK ACQUIRED UNDER A QUALIFIED
STOCK OPTION; AND
(IV) OTHER AMOUNTS WHICH RECEIVED SPECIAL TAX
BENEFITS, OR CONTRIBUTIONS MADE BY THE EMPLOYER (WHETHER
OR NOT UNDER A SALARY REDUCTION AGREEMENT) TOWARDS THE
PURCHASE OF AN ANNUITY DESCRIBED IN CODE SECTION 403(3)
(WHETHER OR NOT THE AMOUNTS ARE ACTUALLY EXCLUDIBLE FROM
THE GROSS INCOME OF THE EMPLOYEE).
4 a a... a Mi a Tom m a a ''• . (A) 0 ▪ VOLUNTARY EMPLOYEE CONTRIBUTIONS. EACH MEMBER IN THE DC PART
• MAY MAKE VOLUNTARY CONTRIBUTIONS TO THE DC PART OF THE 0 RETIREMENT SYSTEM. THE SUM OF SUCH CONTRIBUTIONS FOR ALL
YEARS OF SERVICE ARE SUBJECT TO THE CODE SECTION 415 LIMITS.
THE VOLUNTARY CONTRIBUTIONS SHALL BE SUBJECT TO INVESTMENT BY
• THE RETIREMENT COMMISSION UNLESS THE MEMBER IS DIRECTING HIS
4 VESTED ACCOUNT. ANY CONTRIBUTIONS MADE BY A MEMBER SHALL, IN 0
ALL EVENTS BE THE INDEPENDENT VOLUNTARY ACT OF SUCH MEMBER
AND SHALL NOT BE DEPENDENT UPON OR ALTER OR AFFECT THE
OBLIGATIONS OF OR CONTRIBUTIONS BY THE COUNTY.
(B) METHOD OF CONTRIBUTION. EACH MEMBER MAY MAKE SUCH
• VOLUNTARY CONTRIBUTIONS ONLY BY PERIODIC PAYROLL
O WITHHOLDINGS. THE MEMBER SHALL DELIVER WRITTEN INSTRUCTIONS
4 TO THE RETIREMENT COMMISSION EXPRESSING SUCH INTENT. SAME 0 ▪ SHALL INDICATE THE SPECIFIC AMOUNT PER PAYROLL PERIOD TO BE
VOLUNTARILY CONTRIBUTED.
(1) THE COUNTY IS AUTHORIZED TO DEDUCT SUCH AMOUNT O FROM ENSUING SALARY PAYMENTS AND HOLD SAME IN TRUST UNTIL
PAID OVER TO THE RETIREMENT COMMISSION. SAME SHALL BE PAID
TO THE RETIREMENT COMMISSION NOT LESS FREQUENTLY THAN THIRTY
(30) DAYS AFTER THE DATE OF THE AFFECTED PAYROLL.
(2) THE AMOUNT OF PERIODIC WITHHOLDING
CONTRIBUTIONS CAN BE EITHER INCREASED OR DECREASED ON A
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LAW OFFICES MACOONALO ANC) GOREN, PROFESSIONAL CORPORATION 240 EAST BROWN STREET, SUITE 200, •IRMINOHAM, MICHIGAN 48000 (810) 645•5040 QUARTERLY BASIS. ANY SUCH CHANGE SHALL BECOME EFFECTIVE FROM
AND AFTER THE NEXT OCCURRING PAY DAY. HOWEVER, IF A MEMBER
REDUCES HIS SALARY DEDUCTION TO 0% HE SHALL BE PRECLUDED FROM
REINSTATING PERIODIC PAYROLL WITHHOLDING FOR ONE CALENDAR
QUARTER. THE EXERCISE OF THIS RIGHT BY A MEMBER SHALL NOT BE
A WAIVER OF HIS RIGHTS TO AGAIN CHANGE OR TO REINSTATE, AT
ANY TIME IN THE FUTURE, HIS CONTRIBUTIONS.
(C) ADMINISTRATION OF VOLUNTARY EMPLOYEE
CONTRIBUTIONS. UPON THE RETIREMENT COMMISSION'S RECEIPT OF
SUCH VOLUNTARY CONTRIBUTIONS, THE RETIREMENT COMMISSION SHALL
ESTABLISH A VOLUNTARY CONTRIBUTION ACCOUNT FOR SUCH MEMBER.
SAME SHALL HAVE PERIODIC MEMORANDUM CREDITS AND DEBITS MADE
TO IT TO REFLECT THE AMOUNTS OF VOLUNTARY CONTRIBUTIONS AND
THE ALLOCATION OF NET EARNINGS OR LOSSES FROM INVESTMENTS.
THIS ADJUSTMENT SHALL BE FOR EARNINGS AND RE-EVALUATION OF
ASSETS IN THE SAME MANNER AS COUNTY CONTRIBUTIONS. THE
ADJUSTED VOLUNTARY CONTRIBUTION ACCOUNTS SHALL AT ALL TIMES
BE FULLY VESTED AND NONFORFEITABLE, BUT THE WITHDRAWAL OF
SUCH AMOUNTS FROM THE TRUST SHALL BE PERMITTED ONCE DURING
THE PLAN YEAR AND SHALL BE LIMITED TO PRINCIPAL ONLY AND
EXCLUDE ANY EARNINGS ON SUCH CONTRIBUTION WHILE THE MEMBER IS
AN EMPLOYEE OF THE COUNTY. NO FORFEITURE SHALL BE DEEMED TO
HAVE OCCURRED SOLELY AS A RESULT OF A MEMBER'S WITHDRAWAL OF
EMPLOYEE CONTRIBUTIONS.
(D) (1) AVERAGE CONTRIBUTION PERCENTAGE TEST.
EMPLOYEE CONTRIBUTIONS FOR PLAN YEARS BEGINNING AFTER
DECEMBER 31, 1986, TOGETHER WITH ANY MATCHING CONTRIBUTIONS
AS DEFINED IN CODE SECTION 401(M) SHALL BE LIMITED SO AS TO
MEET THE FOLLOWING AVERAGE CONTRIBUTION PERCENTAGE ("ACP')
NONDISCRIMINATION TESTS OF SECTION 401(M):
THE ACP FOR MEMBERS WHO ARE HIGHLY COMPENSATED
EMPLOYEES ("HCES") FOR EACH PLAN YEAR AND THE ACP FOR MEMBERS
WHO ARE NON-HIGHLY COMPENSATED EMPLOYEES ("NON-HCES") FOR THE
SAME PLAN YEAR MUST SATISFY ONE OF THE FOLLOWING TESTS:
(I) EITHER THE ACP FOR HCES FOR THE PLAN YEAR
SHALL NOT EXCEED THE ACP FOR NON-HCES FOR THE SAME PLAN
YEAR MULTIPLIED BY 1.25; OR
(II) THE ACP FOR HCES FOR THE PLAN YEAR SHALL NOT
EXCEED THE ACP FOR NON-HCES FOR THE SAME PLAN YEAR
MULTIPLIED BY TWO (2), PROVIDED THAT THE ACP FOR HCES
DOES NOT EXCEED THE ACP FOR NON-HCES BY MORE THAN TWO
(2) PERCENTAGE POINTS.
(2) FOR THESE PURPOSES, THE CONTRIBUTION
PERCENTAGE FOR ANY HCE WHO IS ELIGIBLE TO HAVE CONTRIBUTION
PERCENTAGE AMOUNTS ALLOCATED TO HIS OR HER ACCOUNT UNDER TWO
OR MORE PLANS DESCRIBED IN CODE SECTION 401(A), OR
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LAW OFFICES MACDONALD AND GOREN. PROFESSIONAL CORPORATION 260 EAST DROWN STIRECT, SUITE 200, BIRMINGHAM, MICHIGAN 4110129 (1110) ARRANGEMENTS DESCRIBED IN CODE SECTION 401(K) THAT ARE
MAINTAINED BY THE SAME EMPLOYER SHALL BE DETERMINED AS IF THE
TOTAL OF SUCH CONTRIBUTION PERCENTAGE AMOUNTS WAS MADE UNDER
EACH PLAN. IF AN HCE PARTICIPATES IN TWO OR MORE CASH OR
DEFERRED ARRANGEMENTS THAT HAVE DIFFERENT PLAN YEARS, ALL
CASH OR DEFERRED ARRANGEMENTS ENDING WITH OR WITHIN THE SAME
CALENDAR YEAR SHALL BE TREATED AS A SINGLE ARRANGEMENT.
(3) IN THE EVENT THAT THIS RETIREMENT SYSTEM
SATISFIES THE REQUIREMENTS OF CODE SECTIONS 401(M) OR
401(A)(4) ONLY IF AGGREGATED WITH ONE OR MORE OTHER PLANS, OR
IF ONE OR MORE OTHER PLANS SATISFY THE REQUIREMENTS OF SUCH
CODE SECTIONS ONLY IF AGGREGATED WITH THIS RETIREMENT SYSTEM,
THEN THIS SECTION SHALL BE APPLIED BY DETERMINING THE
CONTRIBUTION PERCENTAGE OF EMPLOYEES AS IF ALL SUCH PLANS
WERE A SINGLE PLAN. PLANS MAY BE AGGREGATED IN ORDER TO
SATISFY CODE SECTION 401(M) ONLY IF THEY HAVE THE SAME PLAN
YEAR.
(4) FOR PURPOSES OF DETERMINING THE CONTRIBUTION
PERCENTAGE OF A MEMBER WHO IS ONE OF THE TEN MOST HIGHLY-PAID
HCES, THE CONTRIBUTION PERCENTAGE AMOUNTS AND COMPENSATION OF
SUCH MEMBER SHALL INCLUDE THE CONTRIBUTION PERCENTAGE AMOUNTS
AND COMPENSATION FOR THE PLAN YEAR OF FAMILY MEMBERS (AS
DEFINED IN CODE SECTION 414(Q)(6)). FAMILY MEMBERS OF HCES
SHALL BE DISREGARDED AS SEPARATE EMPLOYEES IN DETERMINING THE
CONTRIBUTION PERCENTAGE BOTH FOR MEMBERS WHO ARE NON-HCES AND
HCES.
(5) IN DETERMINING THE CONTRIBUTION PERCENTAGE
TEST, EMPLOYEE CONTRIBUTIONS SHALL BE CONSIDERED TO HAVE BEEN
MADE IN THE PLAN YEAR IN WHICH CONTRIBUTED TO THE TRUST.
(6) THE THIRD PARTY PLAN ADMINISTRATOR SHALL
MAINTAIN RECORDS FOR THE COUNTY SUFFICIENT TO DEMONSTRATE
SATISFACTION OF THE ACP TEST.
(7) THE DETERMINATION AND TREATMENT OF THE
CONTRIBUTION PERCENTAGE OF ANY MEMBER SHALL SATISFY SUCH
OTHER REQUIREMENTS AS MAY BE PRESCRIBED BY THE SECRETARY OF
THE TREASURY.
(8) DEFINITIONS FOR THE PURPOSES OF THIS SECTION:
(I) "AGGREGATE LIMIT" MEANS THE SUM OF (A) 125
PERCENT OF THE ACP OF NON-HCES AND (B) THE LESSER OF
200% OR TWO PLUS THE ACP.
(II) "AVERAGE CONTRIBUTION PERCENTAGE" MEANS THE
AVERAGE OF THE CONTRIBUTION PERCENTAGES OF THE ELIGIBLE
MEMBERS IN A GROUP.
-40-
SUITE 200, BIRMINGHAM, MICHIGAN 4111000 (.10) 645•31140 LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 200 EAST •PlOWN (III) "CONTRIBUTION PERCENTAGE" MEANS THE RATIO
(EXPRESSED AS A PERCENTAGE) OF THE MEMBER'S CONTRIBUTION
PERCENTAGE AMOUNTS TO THE MEMBER'S COMPENSATION FOR THE
PLAN YEAR (WHETHER OR NOT THE EMPLOYEE WAS A MEMBER FOR
THE ENTIRE PLAN YEAR).
(IV) "CONTRIBUTION PERCENTAGE AMOUNTS" MEANS THE
EMPLOYEE CONTRIBUTIONS FOR THE MEMBER FOR THE PLAN YEAR.
(V) "ELIGIBLE MEMBER" MEANS ANY EMPLOYEE WHO IS
ELIGIBLE TO MAKE AN EMPLOYEE CONTRIBUTION.
(VI) "EMPLOYEE CONTRIBUTION" MEANS ANY
CONTRIBUTION MADE TO THIS RETIREMENT SYSTEM BY OR ON
BEHALF OF A MEMBER THAT IS INCLUDED IN THE MEMBER'S
GROSS INCOME IN THE YEAR IN WHICH MADE AND THAT IS
MAINTAINED UNDER A SEPARATE ACCOUNT TO WHICH EARNINGS
AND LOSSES ARE ALLOCATED.
(VII) "MATCHING CONTRIBUTIONS" MEANS AN EMPLOYER
CONTRIBUTION MADE TO THIS OR ANY OTHER DEFINED
CONTRIBUTION PLAN ON BEHALF OF A MEMBER ON ACCOUNT OF AN
EMPLOYEE CONTRIBUTION MADE BY SUCH MEMBER, OR ON ACCOUNT
OF A MEMBER'S ELECTIVE DEFERRAL, UNDER A PLAN MAINTAINED
BY THE EMPLOYER.
(9) (I) NOTWITHSTANDING ANY OTHER PROVISION OF THIS
RETIREMENT SYSTEM, EXCESS AGGREGATE CONTRIBUTIONS, PLUS
ANY INCOME AND MINUS ANY LOSS ALLOCABLE THERETO, SHALL
BE DISTRIBUTED NO LATER THAN THE LAST DAY OF EACH PLAN
YEAR TO MEMBERS TO WHOSE ACCOUNTS SUCH EXCESS AGGREGATE
CONTRIBUTIONS WERE ALLOCATED FOR THE PRECEDING PLAN
YEAR. EXCESS AGGREGATE CONTRIBUTIONS OF MEMBERS WHO ARE
SUBJECT TO THE FAMILY AGGREGATION RULES SHALL BE
ALLOCATED AMONG FAMILY MEMBERS IN PROPORTION TO THE
MEMBER OF EACH FAMILY MEMBER THAT IS COMBINED TO
DETERMINE THE COMBINED ACP. IF SUCH EXCESS AGGREGATE
CONTRIBUTIONS ARE DISTRIBUTED MORE THAN 2 1/2 MONTHS
AFTER THE LAST DAY OF THE PLAN YEAR IN WHICH SUCH EXCESS
AMOUNTS AROSE, A TEN (10) PERCENT EXCISE TAX SHALL BE
PAID BY THE COUNTY AS TO THOSE AMOUNTS. SUCH EXCISE TAX
SHALL NOT BE PAID OR REIMBURSED BY THE RETIREMENT
SYSTEM. EXCESS AGGREGATE CONTRIBUTIONS SHALL BE TREATED
AS ANNUAL ADDITIONS.
(II) DETERMINATION OF INCOME OR LOSS: EXCESS
AGGREGATE CONTRIBUTIONS SHALL BE ADJUSTED FOR ANY INCOME
OR LOSS UP TO THE DATE OF DISTRIBUTION. IF THE INCOME
OR LOSS ALLOCABLE TO EXCESS AGGREGATE CONTRIBUTIONS CAN
NOT BE CALCULATED ON A DAILY BASIS, SAME SHALL BE THE
SUM OF: (1) INCOME OR LOSS ALLOCABLE TO THE MEMBER'S
EMPLOYEE CONTRIBUTION ACCOUNT FOR THE PLAN YEAR
-41-.
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST DROWN STREET, SUITE 200, IIIRMINGHAM, MICHIGAN 411001/ (610) 642.2540 MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS SUCH
MEMBER'S EXCESS AGGREGATE CONTRIBUTIONS FOR THE YEAR AND
THE DENOMINATOR IS THE MEMBER'S ACCOUNT BALANCE(S)
ATTRIBUTABLE TO CONTRIBUTION PERCENTAGE AMOUNTS WITHOUT
REGARD TO ANY INCOME OR LOSS OCCURRING DURING SUCH PLAN
YEAR; AND (2) TEN PERCENT OF THE AMOUNT DETERMINED UNDER
(1) MULTIPLIED BY THE NUMBER OF WHOLE CALENDAR MONTHS
BETWEEN THE END OF THE PLAN YEAR AND THE DATE OF
DISTRIBUTION, COUNTING THE MONTH OF DISTRIBUTION IF
DISTRIBUTION OCCURS AFTER THE 15TH OF SUCH MONTH.
(III) ACCOUNTING FOR EXCESS AGGREGATE
CONTRIBUTIONS: EXCESS AGGREGATE CONTRIBUTIONS SHALL BE
DISTRIBUTED FROM THE MEMBER'S EMPLOYEE CONTRIBUTION
ACCOUNT.
(IV) "EXCESS AGGREGATE CONTRIBUTIONS" MEANS FOR
ANY PLAN YEAR, THE EXCESS OF:
(1) THE AGGREGATE CONTRIBUTION PERCENTAGE
AMOUNTS TAKEN INTO ACCOUNT IN COMPUTING THE
NUMERATOR OF THE CONTRIBUTION PERCENTAGE ACTUALLY
MADE ON BEHALF OF HCES FOR SUCH PLAN YEAR, OVER
(2) THE MAXIMUM CONTRIBUTION PERCENTAGE
AMOUNTS PERMITTED BY THE AC!' TEST (DETERMINED BY
REDUCING CONTRIBUTIONS MADE ON BEHALF OF HCES IN
ORDER OF THEIR CONTRIBUTION PERCENTAGES BEGINNING
WITH THE HIGHEST OF SUCH PERCENTAGES).
Member Contributions; Refunds.
Section 53. (a) An individualL.s WHO IS IN THE DB PART OF
THE RETIREMENT SYSTEM CAN HAVE HIS accumulated Member
contributions shall —be refunded if the following conditions
are met:
(1) Membership in the Retirement System has been
terminated for at least 30 days, or the individual has been
laid off for at least 30 days;
(2) The individual has not met the applicable age
and service condition for normal retirement (Section 18);
(3) A disability pension (Sections 24 - 26) is not
payable or being paid to the individual;
(4) A non-duty survivor pension (Sections 29 - 32)
is not payable or being paid on the individual's behalf; AND
-42-
MACDONALD AND (5) The individual makes application for the
refund on a form provided by and filed with the Retirement
System.
0 (b) If an individual dies and no pension becomes or
P will become payable on account of the death, the individual's
accumulated Member contributions shall be refunded in
accordance with the deceased individual's instructions made
O on a form provided by and filed with the Retirement System.
• .1.1.—t.haz,a—ba—rh.o. ABSENT such instructions or if the individuals
O who are to be paid the refund AQ—laicigiaz—.1.14ei ARE NO LONGER
ALIVE, the accumulated Member contributions shall be refunded
to the legal representative of the deceased individual
• MEMBER. 0
(c) Payments of refunds of accumulated contributions,
as provided for in this resolution, may be made in monthly
installments according to such rules and regulations as the
Retirement Commission shall from time to time adopt.
(d) Except as otherwise provided in this resolution,
after 3 years from the date an employee ceases to be a
• Member, any balance of accumulated contributions standing to
the Member's credit, in the reserve for accumulated Member
contributions unclaimed by the Member or the Member's legal
• representative, shall be transferred to the reserve for 0 • undistributed investment income.
0
O Reserve for Accumulated Member Contributions.
0
Section 54. (a) The reserve for accumulated Member
• contributions is the account IN THE DB PART in whichWHERE 0
THERE is accumulated the Member contributions deducted from
• the compensation of Members and which shall be charged with
refunds of accumulated Member contributions and transfers of
accumulated Member contributions as provided in this
resolution. Continuation of employment by the Member shall
constitute consent and agreement to the deduction of the
applicable Member contribution, if any. Payment of
compensation less the deduction shall be full and complete
discharge of all claims and demands for compensation for
personal service rendered the County except as to benefits
provided in this resolution. Compensation before deduction
of any Member contributions shall be considered the Member's
compensation for purposes of satisfying minimum compensation
requirements.
(b) The officer or officers responsible for preparing
the payroll shall certify to the Retirement Commission on
each payroll the amount of contribution to be deducted from
the compensation of each Member. Each of these amounts shall
-43-
LAW OFFICES MACDONALD AND GORE14, PROFESSIONAL CORPORATION 2g0 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 48009 (RIO) 645.5940 be deducted, and when deducted shall be paid to the
Retirement System. Each such amount shall be credited to the
account of the individual Member from whose compensation the
deduction was made.
(c) A Member's accumulated contributions shall be
transferred from the reserve for accumulated Member
contributions to the reserve for pension payments if a
pension becomes payable on account of the Member's retirement
or death.
Reserve for Pension Payments.
Section 55. (a) The reserve for pension payments is the
account IN THE DB PART willabt THAT is credited with transfers
from the reserve for accumulated Member contributions and the
reserve for employer contributions and which is charged with
all pension payments and refunds of accumulated Member
contributions which have been transferred to this account.
(b) If a disability pension is terminated and the
individual again becomes a Member or becomes a vested former
Member, any excess of the accumulated Member contributions
transferred to this account as a result of the disability
retirement over the aggregate amount of pension paid shall be
transferred to the reserve for Member contributions.
(c) Each year following receipt of the report of the
annual actuarial valuation FOR THE DB PART, if the balance in
the reserve for pension payments is less than the actuarial
present value of Pensions being paid retired Members and
beneficiaries, a transfer of the difference between the
present value and the reserve balance shall be authorized
from the reserve for employer contributions. The pending
transfer shall be taken into account by the actuary when
making the actuarial valuation. If the balance in the
reserve for pension payments is greater than the actuarial
present value of pensions being paid, the Retirement
Commission may, in its discretion, authorize a transfer of
not more than the difference between the reserve balance and
the present value to the reserve for employer contributions.
Reserve for Employer Contributions.
Section 56. The reserve for employer contributions IN THE DB
PART is the account to which is credited County contributions
and from which shall be made transfers to the reserve for
pension payments.'
-44-
Reserve for Undistributed Investment Income.
Section 57. The reserve for undistributed investment income
IN THE DB PART is the account to which is credited all 0 interest, dividends, and other income from Retirement System
r assets, all gifts and bequests, and, all other monies
received by the Retirement System the disposition of which is
not specifically provided. There shall be transferred from
O this reserve account all amounts required to credit interest 0
• to the other reserve accounts. Any balance remaining after
• interest has been credited to the other reserve accounts 0 2
•
shall be transferred to the reserve for employer
contributions.
0
• Reserve for Administrative Expenses.
Section 58. (a) The reserve for administrative expenses is
the account to which shall be credited all money provided by
the County to pay the administrative expenses of the
• Retirement System and to which shall be charged all budgeted
• and authorized administrative expenses.
(b) Whenever the Retirement Commission determines the 0 • balance in the account is more than sufficient to cover
• current charges, the excess of any part thereof may be used O • to fund contingency reserves or meet special requirements of
the other reserve accounts. Whenever the balance in the 0 ▪ account is insufficient to cover current charges, the amount
O of the insufficiency shall be transferred to the account from
O
•
the reserve for employer contributions.
7. • Assets OF DB PART not Segregated.
Section 59. The descriptions of the reserve accounts IN THE
• DB PART shall be interpreted to refer to the account records
O of the Retirement System and not to the segregation of monies 0
or assets by reserve account.
4 0 O Interest Credited to Reserve Accounts.
Section 60. (a) The Retirement Commission shall annually
credit interest on the individual beginning of year balances
in the reserve for accumulated Member contributions, and on ▪ the mean balance in each of the other reserves of the DB PART
OF THE Retirement System for the preceding fiscal year. No
• interest shall be credited to the balances in the reserve for
accumulated Member contributions for Members whose County
employment has terminated by the end of the year unless the
Member is a vested former Member. The amounts of interest so
-45-
LAW Of FICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 2 00 , BIRMINGHAM, MICHIGAN 48009 (810) 646-81240 • I
credited shall be charged to the reserve for undistributed
investment income.
(b) The Retirement Commission shall determine the rate
or rates of interest to be used for crediting of interest.
Assignments Prohibited.
Section 61. (a) The right of an individual to a pension, to
a refund of accumulated Member contributions, the pension
itself, or any other right accrued or accruing to any
individual, and the monies and assets of the Retirement
System, shall not be subject to execution, garnishment,
attachment, the operation of bankruptcy or insolvency law, or
other process of law, except as provided in Section 62 (b) or
as specifically required by State of Michigan or Federal law
and shall be unassignable except as provided in Section 61
(b) OR (C) or as required by State of Michigan or Federal
law.
(b) If an individual is covered under a group insurance
or prepayment plan participated in by the County, and makes a
permitted election to continue such coverage as a retired
Member or as a beneficiary, the individual may authorize the
Retirement Commission to deduct from the individual's
a1.1QuiaJwAit payments SUCH AMOUNT AS required to continue
coverage under such group insurance or prepayment plan.
(C) THE PROHIBITION OF SUBPARAGRAPH (A) SHALL NOT APPLY
TO THE CREATION, ASSIGNMENT, OR RECOGNITION OF A RIGHT TO ANY
BENEFIT PAYABLE TO A MEMBER PURSUANT TO A DOMESTIC RELATIONS
ORDER, IF SUCH ORDER IS DETERMINED BY THE RETIREMENT
COMMISSION TO BE IN ACCORDANCE WITH THE ELIGIBLE DOMESTIC
RELATIONS ORDER ACT, MCLA 38.1701, JUNE 27, 1991.
NOTWITHSTANDING THE FOREGOING, IF THE RETIREMENT COMMISSION
DETERMINES SUCH ORDER IS AN "ELIGIBLE DOMESTIC RELATIONS
ORDER" ("EDRO") AND IF THE RETIREMENT COMMISSION DETERMINES
THAT THE EDRO APPLIES TO A MEMBER IN THE DC PART OF THE
RETIREMENT SYSTEM AND REQUIRES PAYMENT BEFORE THE MEMBER
WOULD HAVE OTHERWISE BEEN ENTITLED TO PAYMENT, THE RETIREMENT
COMMISSION SHALL MAKE DISTRIBUTION TO THE "ALTERNATE PAYEE"
IDENTIFIED IN THE EDRO FROM THE DC PART ONLY WITHIN SIXTY
(60) DAYS AFTER THE CLOSE OF THE PLAN YEAR THE DETERMINATION
THAT THE ORDER IS A EDRO IS MADE, BUT IN NO EVENT LATER THAN
EIGHTEEN (18) MONTHS AFTER RECEIPT OF A COPY OF SUCH ORDER.
(D) NO RIGHTS AGAINST COUNTY. NOTHING CONTAINED HEREIN
SHALL BE CONSTRUED AS GIVING AN EMPLOYEE OR ANY OTHER PERSON,
ANY LEGAL OR EQUITABLE RIGHTS AGAINST THE COUNTY OR THE
RETIREMENT COMMISSION, EXCEPT AS EXPRESSLY GRANTED HEREIN, OR
AS GIVING ANY PERSON THE RIGHT TO BE RETAINED IN THE SERVICE
-46-
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 4110011 (NO) 645-3040 OF THE COUNTY, AND AN EMPLOYEE SHALL REMAIN SUBJECT TO
CONTROL AND TO DISCHARGE TO THE SAME EXTENT AS HERETOFORE.
Subrogation; Right of Setoff.
Section 62. (a) If an individual or an individual's estate
or beneficiary becomes entitled to a pension, or any other
benefit payable upon retirement, by the County or the Oakland
County Employees' Retirement System (the "System ) as the
result of an accident or injury caused by the act or omission
of any third party(s), the County and the System shall be
subrogated to the rights of said individual against such
third party(s) to the extent of the benefits the County and
the System pays or becomes liable to pay, either to or on
behalf of an employee, retired Member, and/or beneficiary.
For the purposes of this section, the subrogation rights of
the County and the System extend to and include the
actuarially determined, present day value of all payments and
benefits which the County or the System either pays, provides
for in a reserve account, or becomes liable to pay, either
to, or on behalf of, an employee, retired Member, and/or
beneficiary. The County and the System shall be subrogated
to any and all rights to, or recovery of, damages (including
actual, consequential, or punitive damages, and costs or
fees) by an employee, retired Member, and/or beneficiary from
any third party(s) even where the damages recoverable from a
third party(s) were not for the same items of injury as those
for which the County of Oakland and the System benefits were
paid, provided for in reserve, or payable. Upon request, the
employee, retired Member, and/or beneficiary will execute and
deliver to the County and the System an assignment and/or
such other instruments that may be required and do whatever
else is necessary to secure such rights for the County and
the System. If an individual (or his or her beneficiary)
becomes entitled to a pension or any other benefit payable
upon retirement, by the County or the System, as the result
of an accident or injury caused by the act or omission of any
third party(s), such individual (or his or her beneficiary or
estate) shall not commence or institute any claim or action
against the third party(s) without (1) prior written notice
to the County and the System, (2) permitting the County
and/or the System, within their discretion, to join such
claim or action (as its interest appears by reason of this
section), and (3) assigning all or a portion of any recovery
from such claim or action to the County and/or the System, as
provided above, in order to effectuate the purposes of this
section. The claimant(s) in such claim or action shall at
all times advise the County and System of the nature of the
claim and action, the defenses asserted, the ongoing status
of the claim and action, and all settlement discussions and
negotiations. The claimant(s) shall promptly furnish the
-47-
LAW OFFtCES MACOONALO AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 410009 ONO) 645 5E140 County and System with copies of all relevant court papers,
pleadings, medical reports, and other such documents. The
claimants shall not release, settle, waive, or modify any
such claim without the prior written consent of the County
and System. Failure to comply with the requirements set
forth in this Section 62(a) shall (1) constitute a waiver of
all rights and a release of all claims, up to the amount of
the claim, by an employee, retired Member, or beneficiary to
a pension or other benefits from the County and the System
(which waiver shall be effective notwithstanding the prior
commencement of benefit payments), and (2) give to the County
and System, in addition to all other rights available to them
in law or equity, the right of recovery against the employee,
retired Member, his estate, or beneficiary, as to any monies
previously paid. In no event, will the subrogation or
waiver and release) provided for herein reduce any benefit to
which the employee, retired Member, beneficiary, or estate,
but for a disability may be eligible.
(b) The ratizamant system shall have the right of
setoff to recover overpayments made by the zelt....LrQm49AZ system
and the County shall have the right of setoff to satisfy any
claim arising from embezzlement or fraud committed by a
Member, retired Member, vested former Member, beneficiary, or
other individual having a claim to benefits.
Correction of Errors; POWER TO AMEND
Section 63. (A) The Retirement Commission shall correct
errors in the records of the Retirement System. The
Retirement Commission shall seek to recover overpayments and
shall make up underpayments. Recovery of overpayments may be
accomplished by reducing the amount of future payments so
that the actuarial present value of actual payments to the
recipient is equal to the actuarial present value of the
payments to which the recipient was correctly entitled.
(B) THE COUNTY RESERVES THE RIGHT TO AMEND THIS
RESOLUTION. THE COUNTY SPECIFICALLY RESERVES THE RIGHT TO
AMEND THE RETIREMENT SYSTEM RETROACTIVELY IN ORDER TO COMPLY
WITH CODE SECTION 401(A). NO REASON IS NECESSARY FOR THE
AMENDMENT, REGARDLESS OF WHETHER: (1) FOR REASONS OF BUSINESS
NECESSITY; OR (2) FOR THE PURPOSE OF CAUSING THE RETIREMENT
SYSTEM AND TRUST TO QUALIFY, AND CONTINUE TO QUALIFY, UNDER
THE CODE AS SET FORTH IN THE RECITALS. NO SUCH AMENDMENT,
EXCEPT UPON WRITTEN CONSENT, SHALL INCREASE THE DUTIES OR
LIABILITIES OF THE RETIREMENT COMMISSION OR DIMINISH ITS
COMPENSATION, OR DEPRIVE ANY MEMBER OR BENEFICIARY OF ANY
THEN VESTED EQUITABLE INTEREST IN THE RETIREMENT SYSTEM. A
DECISION OF THE RETIREMENT COMMISSION SHALL, EXCEPT IN THE
ABSENCE OF GOOD FAITH, BE BINDING UPON THE MEMBERS,
-48-
STREET, SUITE 200, BIRMINGHAM, MICHIGAN 460011 (RIO 645 5940 2
VI PROFESSIONAL CORPORATION BENEFICIARIES, AND ALL OTHER PERSONS INTERESTED, AS TO
WHETHER OR NOT ANY AMENDMENT DOES DEPRIVE A MEMBER OR ANY
OTHER PERSON OF ANY VESTED INTEREST ALREADY EXISTING OR DOES
ADVERSELY AFFECT SUCH INTEREST. IN NO EVENT SHALL ANY
AMENDMENT HAVE THE EFFECT OF VESTING IN THE COUNTY ANY RIGHT,
TITLE OR INTEREST TO ANY ASSETS HELD AS PART OF THE TRUST.
ANY AMENDMENT SHALL BE EFFECTIVE WHEN SIGNED BY THE DULY
AUTHORIZED OFFICER OR OFFICERS OF THE BOARD OF COMMISSIONERS
AND FILED WITH THE RETIREMENT COMMISSION. IF THE COUNTY
AMENDS OR HAS AMENDED THE VESTING SCHEDULE, THE PERCENTAGE
THEN NONFORFEITABLE OR VESTED SHALL NOT BE REDUCED AS A
RESULT OF SUCH AMENDMENT. ANY MEMBER WITH THREE (3) YEARS OF
SERVICE DETERMINED AT THE END OF THE ELECTION PERIOD SHALL
HAVE AN IRREVOCABLE ELECTION TO HAVE THE NONFORFEITABLE
PERCENTAGE OF HIS ACCRUED BENEFIT DERIVED FROM COUNTY
CONTRIBUTIONS AND FORFEITURES DETERMINED UNDER THE VESTING
SCHEDULE AS AMENDED OR A PRIOR VESTING SCHEDULE. SUCH
ELECTION SHALL COMMENCE ON THE DATE THE AMENDMENT WAS ADOPTED
AND SHALL TERMINATE NO LATER THAN SIXTY (60) DAYS AFTER THE
LATER OF: (I) THE EFFECTIVE DATE OF THE AMENDMENT; (II) THE
DATE OF ADOPTION OF THE AMENDMENT TO THE VESTING SCHEDULE; OR
(III) THE DATE EACH MEMBER WHO IS ELIGIBLE TO MAKE SUCH
ELECTION RECEIVES WRITTEN NOTICE OF THE AMENDED VESTING
SCHEDULE BECOMING OPERATIONAL.
NOTWITHSTANDING THE PRECEDING PARAGRAPH, A MEMBER'S
PROVISIONAL ACCOUNT MAY BE REDUCED TO THE EXTENT PERMITTED
UNDER CODE SECTION 412(C)(8). FOR PURPOSES OF THIS
PARAGRAPH, A PLAN AMENDMENT WHICH HAS THE EFFECT OF
DECREASING A MEMBER'S PROVISIONAL ACCOUNT OR ELIMINATING AN
OPTIONAL FORM OF BENEFIT, WITH RESPECT TO BENEFITS
ATTRIBUTABLE TO SERVICE BEFORE THE AMENDMENT SHALL BE TREATED
AS REDUCING AN ACCRUED BENEFIT. FURTHER, NO AMENDMENT TO THE
RETIREMENT SYSTEM SHALL HAVE THE EFFECT OF DECREASING A
MEMBER'S VESTED INTEREST DETERMINED WITHOUT REGARD TO SUCH
AMENDMENT AS OF THE LATER OF THE DATE SUCH AMENDMENT IS
ADOPTED OR THE DATE IT BECOMES EFFECTIVE.
O
4
O Internal Revenue Code Qualification.
0 • Section 64. (a) The County intends the Retirement System to
• be a qualified pension plan under CODE Section 401 ol the 0 • Int.Aal-Rau,eame-C,oda,-aa-amaA4ad, QZ-4414.C414-5-QZ-p.04-L-S-W-A4-14-f-
law, and that the trust be an exempt organization under CODE
Section 501 QL-thQ-Intaznal-Rausinua-CQda. The Retirement
Commission may adopt, or recommend to the Board of County
Commissioners for adoption, such additional provisions to the
Retirement System as are necessary to fulfill this intent.
THE COUNTY SHALL NOT BE ENTITLED TO RECEIVE OR RECOVER
ANY PART OF ITS CONTRIBUTIONS TO THE TRUST OR THE EARNINGS
-49-
I. AW OF F1C ES MACDONALD AND GOREN, PROFESSIONAt CORPORATION 250 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 46009 (610) 643 5940 THEREOF. NOTWITHSTANDING THE PRECEDING SENTENCE, OR ANY
OTHER PROVISION OF THIS RESOLUTION, IF THE INTERNAL REVENUE
SERVICE DETERMINES BY LETTER RULING THAT THE DC PART OF THE
RETIREMENT SYSTEM DOES NOT INITIALLY QUALIFY UNDER CODE
SECTION 401(A) AND RELATED SECTIONS AND REGULATIONS, THEN THE
COUNTY MAY RECOVER ITS CONTRIBUTIONS TO THE DC PART MADE
PRIOR TO SUCH DETERMINATION AND ABANDON OR OTHERWISE
TERMINATE THE DC PART, PROVIDED THAT: (I) SUCH RIGHT OF
RECOVERY SHALL IN ALL EVENTS BE SATISFIED BY DELIVERY TO THE
COUNTY OF THE THEN CURRENT MARKET VALUE OF THE ASSETS OF THE
DC PART; (II) SAME SHALL BE ACCOMPLISHED WITHIN TWELVE (12)
MONTHS OF THE RETIREMENT SYSTEM'S LOSS OF ITS INITIAL
QUALIFICATION; AND (III) SAME SHALL ONLY BE ALLOWED IF
APPLICATION TO THE INTERNAL REVENUE SERVICE FOR SUCH
QUALIFICATION IS MADE BY THE TIME PRESCRIBED BY LAW FOR
FILING THE COUNTY'S APPLICATION FOR ADVANCED DETERMINATION OF
THE DC PART OF THE RETIREMENT SYSTEM'S TAX QUALIFICATION. IN
THIS EVENT, NO MEMBER NOR ANY BENEFICIARY OF A MEMBER SHALL
HAVE OR ACQUIRE ANY VESTED INTEREST IN SAID CONTRIBUTIONS
MADE BY THE COUNTY, EXCEPT TO THE EXTENT THAT DISTRIBUTIONS
MAY HAVE BEEN MADE.
(b) Retirement benefits provided under this Resolution
shall not exceed the governmental plan limits set forth in
Internal Revenue Code Section 415 and rulings—pazt.a..i4al.ndg
tlovast4t, THE REGULATIONS THEREUNDER.
(C) THE CORPUS OF INCOME OF THE TRUST MAY NOT BE
DIVERTED TO OR USED FOR OTHER THAN THE EXCLUSIVE BENEFIT OF
THE MEMBERS OR THEIR BENEFICIARIES.
(D) (1) ALL PLAN DISTRIBUTIONS SHALL BE DETERMINED AND
MADE IN ACCORDANCE WITH THE PROPOSED REGULATIONS UNDER CODE
SECTION 401(A)(9), INCLUDING THE MINIMUM DISTRIBUTION
INCIDENTAL BENEFIT REQUIREMENT OF SECTION 1.401(A)(9)-2 OF
THE PROPOSED REGULATIONS.
(2) THE REQUIRED BEGINNING DATE OF DISTRIBUTIONS
TO A MEMBER SHALL BE THE LATER OF APRIL 1 OF THE CALENDAR
YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE MEMBER ATTAINS
AGE 70 1/2 OR APRIL 1 OF THE CALENDAR YEAR FOLLOWING THE
CALENDAR YEAR IN WHICH THE EMPLOYEE RETIRES.
(E) IN THE EVENT OF TERMINATION OR PARTIAL TERMINATION
OF THIS RETIREMENT SYSTEM, THE RIGHTS OF ALL AFFECTED
EMPLOYEES TO BENEFITS ACCRUED TO THE DATE OF SUCH TERMINATION
OR PARTIAL TERMINATION (TO THE EXTENT FUNDED AS OF SUCH DATE)
SHALL BE NONFORFEITABLE.
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAi CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 46009 (610 645 3040 Fraud Penalty.
Section 65. Whoever with intent to deceive shall make any
statement or report under this resolution which is untrue, or
shall falsify or permit to be falsified any record or records
of the Retirement System, or who shall otherwise violate the
provisions of this resolution as it may from time to time be
amended, with intent to deceive, shall be guilty of a
misdemeanor and upon conviction shall be fined not trok—axcd
IN EXCESS OF $500, or shall be imprisoned for not ta—vixciaQd
MORE THAN 90 days, or both, in the discretion of the court,
together with payment of costs of prosecution.
Severability.
Section 66. THIS RESOLUTION SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF MICHIGAN. WHEREVER NECESSARY, PRONOUNS OF ANY
GENDER SHALL BE DEEMED SYNONYMOUS, AS SHALL SINGULAR AND
PLURAL PRONOUNS. THE TABLE OF CONTENTS AND THE HEADINGS OF
SECTIONS AND PARAGRAPHS ARE INCLUDED SOLELY FOR CONVENIENCE
AND SHALL NOT AFFECT, OR BE USED IN CONNECTION WITH, THE
INTERPRETATION OF THIS RESOLUTION. If any section or part of
a section of this resolution is for any reason held to be
invalid or unconstitutional, such holding shall not be
construed as affecting the validity of the remaining sections
of the resolution or the resolution in its entirety.
Repeal.
Section 67. All resolutions or other provisions of law
inconsistent with the provisions of this resolution are
hereby repealed to the extent of such inconsistency as far as
authority is vested in the Board of Commissioners to repeal
same.
Headings.
Section 68. The heading of any section of these rules that
precedes the section number shall in no way be deemed to be a
part of that section or of this resolution, nor be used to
construe this section more broadly or narrowly than the text
of the section would indicate, but shall be deemed to be
inserted only for the purposes of convenience to persons
using this resolution.
PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 49009 11910) 64S S1240 i
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C , • z o C o • I LAW OFFICES ELIGIBLE ROLLOVER DISTRIBUTIONS
SECTION 69. THIS SECTION APPLIES TO DISTRIBUTIONS MADE ON OR
AFTER JANUARY 1, 1993. NOTWITHSTANDING ANY PROVISION OF THE
RETIREMENT SYSTEM 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
RETIREMENT COMMISSION, TO HAVE ANY PORTION OF AN ELIGIBLE
ROLLOVER DISTRIBUTION PAID DIRECTLY TO AN ELIGIBLE RETIREMENT
PLAN SPECIFIED BY THE DISTRIBUTEE IN A DIRECT ROLLOVER. AS
OF JANUARY 1, 1993 THE ONLY LUMP SUM PAYMENTS PERMITTED BY
THE DB PART OF THE RETIREMENT SYSTEM ARE FOR NON-VESTED
PARTICIPANTS WHO TERMINATE SERVICE. WITH THE ADOPTION OF THE
DC PART OF THE RETIREMENT SYSTEM, LUMP SUM PAYMENTS ARE
AVAILABLE TO MEMBERS OF THE DC PART.
DEFINITIONS
(1) ELIGIBLE ROLLOVER DISTRIBUTION: AN ELIGIBLE
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 OF TEN YEARS OR MORE;
ANY DISTRIBUTION TO THE EXTENT SUCH DISTRIBUTION IS REQUIRED
UNDER CODE SECTION 401(A)(9), AND THE PORTION OF ANY
DISTRIBUTION THAT IS NOT INCLUDABLE IN GROSS INCOME
(DETERMINED WITHOUT REGARD TO THE EXCLUSION FOR NET
UNREALIZED APPRECIATION WITH RESPECT TO EMPLOYER SECURITIES).
(2) ELIGIBLE RETIREMENT PLAN: AN ELIGIBLE RETIREMENT
PLAN IS AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN CODE
SECTION 408(A), AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN
CODE SECTION 408(B), AN ANNUITY PLAN DESCRIBED IN CODE
SECTION 403(A), OR A QUALIFIED TRUST DESCRIBED IN CODE
SECTION 401(A), 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 ONLY.
(3) DISTRIBUTEE: A DISTRIBUTEE INCLUDES AN EMPLOYEE OR
FORMER EMPLOYEE. IN ADDITION, THE EMPLOYEE'S OR FORMER
EMPLOYEE'S SURVIVING SPOUSE AND THE EMPLOYEE'S OR FORMER
EMPLOYEE'S SPOUSE OR FORMER SPOUSE WHO IS THE ALTERNATE PAYEE
UNDER AN ELIGIBLE QUALIFIED DOMESTIC RELATIONS ORDER, AS
DEFINED IN MCLA 36.1701, ARE DISTRIBUTEES WITH REGARD TO THE
INTEREST OF THE SPOUSE OR FORMER SPOUSE.
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LAW OFFICES MACEIONALT) AND GOREN PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 441009 (15,0)1 645 59410 (4) DIRECT ROLLOVER: A DIRECT ROLLOVER IS A PAYMENT BY
THE PLAN TO THE ELIGIBLE RETIREMENT PLAN SPECIFIED BY THE
DISTRIBUTEE.
TRANSITION RULES RELATING TO FIRST PLAN YEAR AND EMPLOYEES
TRANSFERRING FROM THE OAKLAND COUNTY EMPLOYEES' RETIREMENT
SYSTEM AS RESTATED JUNE, 1991
SECTION 70. (A) PLAN ADJUSTMENT TO ACCOUNT BALANCES. THE
PRESENT VALUE OF THE LUMP SUM ACTUARIAL EQUIVALENT OF EACH
MEMBER'S ACCRUED BENEFIT IN THE DB PART SHALL BE DETERMINED
AS OF THE DATE ESTABLISHED BY THE MERIT SYSTEM OR APPLICABLE
COLLECTIVE BARGAINING AGREEMENT. EACH SUCH MEMBER SHALL BE
PROVIDED WITH WRITTEN NOTICE OF SAID AMOUNT AND GIVEN 12
MONTHS IN WHICH TO ELECT TO EITHER PARTICIPATE IN THE DC PART
OR CONTINUE AS A MEMBER OF THE DB PART OF THE RETIREMENT
SYSTEM.
(B) ESTABLISHMENT OF ACCOUNT BALANCES. THOSE MEMBERS
OF THE JUNE, 1991 RESTATED RETIREMENT SYSTEM WHO ELECT TO
PARTICIPATE IN THE DC PART OF THE RETIREMENT SYSTEM SHALL
HAVE SEPARATE ACCOUNTS ESTABLISHED FOR THE TRANSFER OF ASSETS
TO THIS DC PART OF THE RETIREMENT SYSTEM AND BE 100% VESTED
IN THE TRANSFERRED ACCOUNT BUT SUBJECT TO THE VESTING
SCHEDULE OF SECTION 7 AS TO THE COUNTY'S POST DECEMBER 31,
1993 CONTRIBUTION.
(C) EFFECT ON 415. AMOUNTS TRANSFERRED PURSUANT TO
THIS SECTION SHALL NOT BE TAKEN INTO ACCOUNT IN DETERMINING
THE COMPONENT OF THE ANNUAL ADDITION ATTRIBUTABLE TO EMPLOYEE
CONTRIBUTIONS.
(D) (1) AMOUNTS IN A MEMBER'S ROLLOVER ACCOUNT MAY NOT
BE WITHDRAWN BY, OR DISTRIBUTED TO THE MEMBER, IN WHOLE OR IN
PART, EXCEPT AS PROVIDED IN SUBPARAGRAPH (2).
(2) AT THE MEMBER'S NORMAL RETIREMENT DATE, OR
SUCH OTHER DATE WHEN THE MEMBER IS RECEIVING A DISTRIBUTION
FROM THE DC PART OF THE RETIREMENT SYSTEM SHALL BE ENTITLED
TO RECEIVE BENEFITS, THE FAIR MARKET VALUE OF THE MEMBER'S
ROLLOVER ACCOUNT SHALL BE ADDED TO THE AMOUNTS OTHERWISE
AVAILABLE.
(3) THE MEMBER'S ROLLOVER ACCOUNT SHALL SHARE IN
INCOME EARNED, INVESTMENT GAINS AND LOSSES ATTRIBUTABLE
THERETO, LESS ANY EXPENSES IN THE SAME MANNER AS ANY OTHER
ACCOUNT.
LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 45006 WO) 645 5940 PROVISIONAL ACCOUNTS.
SECTION 71. THE RETIREMENT COMMISSION SHALL REQUIRE THAT ITS
THIRD PARTY PLAN ADMINISTRATOR MAINTAIN SEPARATE PROVISIONAL
ACCOUNTS FOR EACH MEMBER OF THE DC PART. EACH PROVISIONAL
ACCOUNT SHALL REFLECT ALLOCATIONS, FORFEITURES, EARNINGS,
LOSSES, PAYMENTS, WITHDRAWALS AND EXPENSES. SEPARATE
PROVISIONAL ACCOUNTS SHALL BE MAINTAINED IN EACH OF THE
FOLLOWING CATEGORIES:
1. COUNTY CONTRIBUTIONS (PROVISIONAL ACCOUNT);
2. MEMBER ROLLOVERS;
3. VOLUNTARY EMPLOYEE CONTRIBUTIONS;
4. DIRECTED INVESTMENT; AND
5. FIXED ACCOUNTS.
ERROR IN ALLOCATION.
SECTION 72. IF AS A RESULT AN ERROR IN ESTIMATING A MEMBER'S
COMPENSATION, ALLOCATION OF FORFEITURES OR OTHER FACTS AND
CIRCUMSTANCES SET OUT IN REGULATION 1.415-6(B)(6), THE
"ANNUAL ADDITIONS" WOULD CAUSE THE SECTION 51(D) LIMITATIONS
TO BE EXCEEDED, THE RETIREMENT COMMISSION SHALL (1) RETURN
ANY VOLUNTARY EMPLOYEE CONTRIBUTIONS CREDITED FOR THE
LIMITATION YEAR TO THE EXTENT THAT THE RETURN WOULD REDUCE
THE "EXCESS AMOUNT" IN THE MEMBER'S ACCOUNTS; (2) HOLD ANY
"EXCESS AMOUNT" REMAINING AFTER THE RETURN OF ANY VOLUNTARY
EMPLOYEE CONTRIBUTIONS IN A "SECTION 415 SUSPENSE ACCOUNT;"
(3) ALLOCATE AND REALLOCATE THE "SECTION 415 SUSPENSE
ACCOUNT" IN THE NEXT LIMITATION YEAR (AND SUCCEEDING
LIMITATION YEARS IF NECESSARY) TO ALL MEMBERS IN THE
RETIREMENT SYSTEM BEFORE ANY COUNTY OR EMPLOYEE CONTRIBUTIONS
ARE MADE TO THE RETIREMENT SYSTEM FOR SUCH LIMITATION YEAR;
(4) NOTIFY THE COUNTY TO REDUCE COUNTY CONTRIBUTIONS TO THE
RETIREMENT SYSTEM FOR SUCH LIMITATION YEAR BY THE AMOUNT OF
THE "SECTION 415 SUSPENSE ACCOUNT" ALLOCATED AND REALLOCATED
DURING SUCH LIMITATION YEAR.
"EXCESS AMOUNT" FOR A LIMITATION YEAR MEANS THE EXCESS,
IF ANY, OF (1) THE ANNUAL ADDITIONS WHICH WOULD BE CREDITED
TO A MEMBER'S ACCOUNT UNDER THE TERMS OF THE DC PART WITHOUT
REGARD TO THE CODE SECTION 415 LIMITATIONS OVER (2) THE
MAXIMUM ANNUAL ADDITION AS LIMITED BY SECTION 51(D).
"SECTION 415 SUSPENSE ACCOUNT" MEANS AN UNALLOCATED
AMOUNT EQUAL TO THE SUM OF "EXCESS AMOUNTS" FOR ALL MEMBERS
1
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Ii LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, MICHIGAN 46009 010) 1145 S 040 DURING THE LIMITATION YEAR. THE "SECTION 415 SUSPENSE
ACCOUNT" SHALL NOT SHARE IN ANY EARNINGS OR LOSSES.
THE RETIREMENT SYSTEM MAY NOT DISTRIBUTE "EXCESS
AMOUNTS" EXCEPT ON RETIREMENT SYSTEM TERMINATION. UPON
RETIREMENT SYSTEM TERMINATION, ONLY MEMBERS WHO DO NOT HAVE A
ONE (1) YEAR BREAK-IN-SERVICE OR HAVE NOT RECEIVED A
DISTRIBUTION OF THEIR FIXED ACCOUNT SHALL SHARE IN THE
"EXCESS AMOUNTS."
FORFEITURES.
SECTION 73, THE RETIREMENT COMMISSION SHALL MAINTAIN A
"FORFEITURE ACCOUNT" FOR THE DC PART OF THE RETIREMENT
SYSTEM. THE "FORFEITURE ACCOUNT" MEANS THE AMOUNT HELD BY
THE RETIREMENT COMMISSION OF AMOUNTS IN EXCESS OF THE
MEMBER'S NONFORFEITABLE AMOUNT WHERE EMPLOYMENT HAS
TERMINATED AND YEARS OF SERVICE DO NOT ENTITLE HIM TO THE
FULL BENEFIT OF HIS PROVISIONAL ACCOUNT. THE "FORFEITURE
ACCOUNT" SHALL BE USED TO REDUCE THE COUNTY'S CONTRIBUTION.
ADJUSTMENT OF ACCOUNT - OTHER ADJUSTMENT.
SECTION 74. (A) EARNINGS, LOSSES, APPRECIATION,
DEPRECIATION. AS OF EACH SUCCEEDING ANNIVERSARY DATE, OR
OTHER VALUATION DATE, THE THIRD PARTY PLAN ADMINISTRATOR
PROVIDING SERVICES TO THE RETIREMENT COMMISSION SHALL ADJUST
THE PROVISIONAL ACCOUNTS OF ALL MEMBERS TO REFLECT:
(1) THE NET EARNINGS OR LOSSES OF THE TRUST
(DETERMINED ON AN ACCRUAL BASIS FOR PURPOSES OF THIS
PARAGRAPH) AND
(2) THE NET INCREASE OR DECREASE IN THE VALUE OF
THE TRUST.
FOR THIS PURPOSE, ALL ASSETS SHALL BE VALUED AT THEIR
FAIR MARKET VALUE AS OF THE VALUATION DATE. UNLESS AN
ACCOUNT IS INVESTED AT THE DIRECTION OF THE MEMBER,
ADJUSTMENT SHALL BE MADE TO EACH ACCOUNT IN THE SAME
PROPORTION AS EACH ACCOUNT, AT THE BEGINNING OF THE PERIOD
HEARS TO THE AGGREGATE BALANCES OF ALL SUCH ACCOUNTS AT THE
BEGINNING OF THE PERIOD, BUT RECOGNIZING ONLY THOSE ACCOUNTS
WHICH ARE ACTIVE AND HAVE NOT BECOME FIXED ACCOUNTS AND
SEGREGATED DURING SUCH PERIOD.
(B) ACCOUNTING FOR ALLOCATIONS. THE RETIREMENT
COMMISSION'S THIRD PARTY PLAN ADMINISTRATOR SHALL ESTABLISH
ACCOUNTING PROCEDURES FOR THE PURPOSE OF MAKING THE
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LAW Oii ICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 280 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 48009 (810) 6aS 30/10 ALLOCATIONS TO MEMBER'S ACCOUNTS PROVIDED FOR IN THIS
PARAGRAPH.
(C) EXPENSES. THE EXPENSES OF THE TRUST (INCLUDING BUT
NOT LIMITED TO LEGAL FEES, ADMINISTRATIVE COSTS AND
RETIREMENT COMMISSION'S COMPENSATION) SHALL (UNLESS PAID BY
THE COUNTY) BE PAID AND ACCOUNTED FOR AS PART OF THE EARNINGS
AND LOSSES ABOVE.
NOTWITHSTANDING THE PRECEDING SENTENCE, ANY EXPENSES
WHICH THE THIRD PARTY PLAN ADMINISTRATOR AND/OR THE
RETIREMENT COMMISSION MAY INCUR WITH SPECIAL REFERENCE TO ANY
MEMBER OR HIS ACCOUNT SHALL FIRST BE CHARGED AGAINST THAT
PART OF THE ACCOUNT WHICH IS ATTRIBUTABLE TO COUNTY
CONTRIBUTIONS TO THE EXTENT SAME IS SUFFICIENT. ANY UNPAID
BALANCE SHALL BE ACCOUNTED FOR AS PART OF THE EXPENSES, BUT
SHALL IF POSSIBLE BE LATER REIMBURSED TO THE OTHER AFFECTED
ACCOUNTS OUT OF FUTURE CREDITS TO SUCH MEMBER'S ACCOUNT.
(D) DISTRIBUTIONS OF BENEFITS. THE RETIREMENT
COMMISSION'S THIRD PARTY PLAN ADMINISTRATOR SHALL REDUCE EACH
ACCOUNT FOR ANY DISTRIBUTIONS OR BENEFITS.
APPRAISALS DURING PLAN YEAR.
SECTION 75. THE THIRD PARTY PLAN ADMINISTRATOR SHALL PROVIDE
DAILY ACCOUNTING OF THE VALUE OF THE TRUST FUND. SUCH
INTERVENING APPRAISALS AND ADJUSTMENTS SHALL USE THE SAME
PROCEDURES USED FOR THE ANNUAL APPRAISAL AND ADJUSTMENTS ON
EACH ANNIVERSARY DATE.
FIXED ACCOUNTS.
SECTION 76. WHEN A MEMBER OF THE DC PART'S EMPLOYMENT
TERMINATES, HE SHALL CONTINUE TO BE A MEMBER SOLELY FOR THE
PURPOSE OF RECEIVING BENEFITS PAYABLE OR DISTRIBUTABLE
HEREUNDER; PROVIDED FURTHER THAT:
(A) EXCEPT AS PROVIDED IN SUBPARAGRAPH (B), IF A MEMBER
OF THE DC PART'S EMPLOYMENT TERMINATES, HIS ACCOUNT SHALL
BECOME FIXED AND NONFORFEITABLE AS OF THE CLOSE OF THE
VALUATION DATE COINCIDING WITH THE DAY OF SUCH TERMINATION.
(B) IF A MEMBER OF THE DC PART'S EMPLOYMENT TERMINATES
FOR ANY REASON OTHER THAN DEATH, DISABILITY, NORMAL OR LATER
RETIREMENT, HIS ACCOUNT SHALL BECOME FIXED AND NONFORFEITABLE
ONLY AFTER APPLICATION OF THE VESTING SCHEDULE CONTAINED IN
SECTION 7.
(C) THE BALANCE OF A FIXED ACCOUNT SHALL INCLUDE ANY
CONTRIBUTIONS OR OTHER ITEMS WHICH HAVE BEEN OR SHOULD BE
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• I LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST DROWN STREET, SUITE 200, •IRMINGHAM, MICHIGAN •6009 (quo) 445 5940 11
CREDITED OR DEBITED TO SUCH ACCOUNT AS OF THE ANNIVERSARY
DATE OR VALUATION DATE OR PRIOR THERETO.
THEREAFTER NO FURTHER CREDITS OR DEBITS SHALL BE MADE TO
SAID ACCOUNT, EXCEPT FOR:
(1) DISTRIBUTIONS,
(2) SPECIAL EXPENSES CHARGEABLE TO THE ACCOUNT,
AND
(3) ADJUSTMENTS PER SUBPARAGRAPHS (D) AND (F).
(D) THE RETIREMENT COMMISSION SHALL TAKE THE FOLLOWING
STEPS WHEN A PROVISIONAL ACCOUNT BECOMES FIXED. IF ASSETS
EQUAL TO THE FIXED ACCOUNT CAN BE SEGREGATED WITHOUT
DETRIMENT OR FINANCIAL LOSS TO THE OTHER MEMBERS, THEN SAME
SHALL BE SEGREGATED AND/OR POOLED WITH OTHER FIXED ACCOUNTS.
THE FIXED ACCOUNT ASSETS SHALL BE ADMINISTERED AS FOLLOWS:
(1) AS OF EACH VALUATION DATE, THE RETIREMENT
COMMISSION SHALL ADJUST ALL FIXED ACCOUNTS TO REFLECT THE
EARNINGS OR LOSSES, APPRECIATION OR DEPRECIATION OF THE FIXED
ACCOUNT ASSETS;
(2) THESE ADJUSTMENTS SHALL BE IN THE SAME
PROPORTION AS THE BALANCE EACH FIXED ACCOUNT BEARS TO THE
AGGREGATE BALANCES OF ALL FIXED ACCOUNTS, BOTH AS OF THE
PREVIOUS VALUATION DATE.
(E) UNLESS THE ACCOUNT IS A DIRECTED INVESTMENT ACCOUNT
AS PROVIDED IN SECTION 81, IF THE FIXED ACCOUNTS HAVE BEEN
SEGREGATED, SAME SHALL BE DEPOSITED IN INTEREST-BEARING
SAVINGS ACCOUNTS AND/OR INVESTED AND REINVESTED IN DIRECT
OBLIGATIONS OF THE UNITED STATES GOVERNMENT AND/OR IN
OBLIGATIONS, THE PRINCIPAL OF WHICH IS GUARANTEED BY SUCH
GOVERNMENT, INCLUDING MONEY MARKET ACCOUNTS INVESTED
PRIMARILY IN GOVERNMENT BACKED SECURITIES. IF THE FIXED
ACCOUNT IS A DIRECTED INVESTMENT ACCOUNT, SAME SHALL BE
INVESTED AT THE MEMBER'S DIRECTION.
(F) A MEMBER'S FIXED ACCOUNT:
(1) SHALL BE DISTRIBUTED NO LATER THAN SIXTY (60)
DAYS AFTER THE TERMINATION OF EMPLOYMENT.
(2) DISTRIBUTIONS SHALL BE MADE IN A LUMP SUM.
(3) IF THE MEMBER DIES BEFORE HIS FIXED ACCOUNT
HAS BEEN DISTRIBUTED, THE BALANCE REMAINING SHALL BE
DISTRIBUTED PURSUANT TO SECTION 80 (DEATH).
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HOWEVER, IF A MEMBER'S FIXED ACCOUNT CANNOT BE
DETERMINED BY THE THIRD PARTY PLAN ADMINISTRATOR BY THE DATE
ON WHICH SUCH DISTRIBUTION SHOULD COMMENCE, OR IF THE MEMBER
CANNOT BE LOCATED, DISTRIBUTION OF HIS FIXED ACCOUNT SHALL 0 • • BEGIN SIXTY (60) DAYS AFTER THE DATE THAT HIS FIXED ACCOUNT • • CAN BE DETERMINED OR AFTER THE DATE THE RETIREMENT COMMISSION
3 LOCATES THE MEMBER. NOTHING CONTAINED HEREIN SHALL ALLOW A • MEMBER TO DEFER RECEIPT OF THE COMMENCEMENT OF DISTRIBUTION
O PAST APRIL I OF THE CALENDAR YEAR FOLLOWING THE LATER OF THE • • PLAN YEAR HE ATTAINS AGE 701/2 OR TERMINATES EMPLOYMENT WITH
THE COUNTY. 4
< NORMAL RETIREMENT
• SECTION 77. IF A MEMBER OF THE DC PART'S EMPLOYMENT
TERMINATES ON OR AFTER HIS NORMAL RETIREMENT AGE HE WILL BE
• DEEMED TO HAVE RETIRED. THE RETIREMENT COMMISSION SHALL
DISTRIBUTE THE FIXED ACCOUNT AS FOLLOWS:
(A) PAYMENT OF THE FIXED ACCOUNT SHALL BE IN A LUMP SUM
NOT LATER THAN SIXTY (60) DAYS AFTER TERMINATION OF
• EMPLOYMENT.
(B) DISTRIBUTION MAY BE MADE IN CASH OR IN KIND - OR A
COMBINATION THEREOF, PROVIDED NO DISCRIMINATION IN VALUE
RESULTS.
• LATE RETIREMENT.
O SECTION 78. A MEMBER WHO CONTINUES IN THE EMPLOY OF THE
COUNTY PAST HIS NORMAL RETIREMENT AGE SHALL REMAIN A MEMBER
IN THE RETIREMENT SYSTEM FOR ALL PURPOSES, AND SHALL BE FULLY
VESTED IN HIS ACCOUNT BALANCE AND IN ANY SUBSEQUENT ADDITIONS
UPON HIS ATTAINING NORMAL RETIREMENT AGE BUT NO RETIREMENT
BENEFITS SHALL BE PAYABLE TO HIM UNTIL HIS ACTUAL RETIREMENT.
AT THE TIME OF HIS ACTUAL RETIREMENT, BENEFITS SHALL BE PAID
• TO THE MEMBER AS IF HE HAD RETIRED ON HIS NORMAL RETIREMENT
2 DATE EXCEPT THAT HIS ACTUAL RETIREMENT DATE SHALL BE SUB-
. STITUTED FOR ANY REFERENCE TO THE NORMAL RETIREMENT DATE.
TERMINATION OF EMPLOYMENT.
SECTION 79. (A) THE RETIREMENT COMMISSION SHALL DETERMINE
THE NONFORFEITABLE INTEREST OF A MEMBER WHO TERMINATES HIS
EMPLOYMENT FOR REASONS OTHER THAN DEATH, DISABILITY, OR
ATTAINMENT OF NORMAL RETIREMENT AGE. NOTHING CONTAINED
HEREIN SHALL BE INTERPRETED AS ALLOWING THE FORFEITURE OF A
MEMBER'S OTHERWISE NONFORFEITABLE BENEFITS FOR CAUSE.
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I
Ii LAM. OFFICES MACOONAiD AND GOREN, PROFESSIONAL CORPORATION 250 EAST BROWN STREET. SUITE 200, BIRMINGHAM. MICHIGAN .48009 WO) m45 54240 (B) THAT PART OF THE MEMBER'S ACCOUNT THAT HE IS NOT
ENTITLED UNDER SUBPARAGRAPH (A) SHALL BE ALLOCATED AS A
FORFEITURE. HOWEVER, SUCH AMOUNT SHALL NOT BE DEEMED A
FORFEITURE AND NO DISTRIBUTION OR REALLOCATION SHALL TAKE
PLACE UNTIL AFTER THE DISTRIBUTION DATE EXCEPT THAT SUCH
REALLOCATION SHALL BE AS OF THE VALUATION DATE IMMEDIATELY
PRECEDING THE DISTRIBUTION DATE. THE NONFORFEITABLE PART OF
HIS ACCOUNT SHALL BE PAID IN ACCORDANCE WITH SECTION 77 BUT
AS OF THE DISTRIBUTION DATE.
IN THE EVENT THE TERMINATED MEMBER DIES BEFORE RECEIVING
HIS NONFORFEITABLE FIXED ACCOUNT, SAME SHALL BE PAID IN
ACCORDANCE WITH SECTION 77. IF ANY FORMER MEMBER WHO IS
REEMPLOYED BY THE COUNTY AND SUCH FORMER MEMBER RECEIVED, OR
WAS DEEMED TO HAVE RECEIVED, A DISTRIBUTION OF HIS ENTIRE
VESTED INTEREST BEFORE HIS REEMPLOYMENT, HIS FORFEITED
ACCOUNT SHALL BE REINSTATED ONLY IF HE REPAYS THE FULL AMOUNT
DISTRIBUTED TO HIM BEFORE THE EARLIER OF FIVE (5) YEARS AFTER
THE FIRST DATE ON WHICH THE MEMBER IS SUBSEQUENTLY REEMPLOYED
BY THE COUNTY OR IN THE EVENT OF A DEEMED DISTRIBUTION, UPON
THE REEMPLOYMENT OF SUCH FORMER MEMBER. IN THE EVENT THE
FORMER MEMBER DOES REPAY THE FULL AMOUNT DISTRIBUTED TO HIM,
OR IN THE EVENT OF A DEEMED DISTRIBUTION, THE UNDISTRIBUTED
PART OF THE MEMBER'S ACCOUNT MUST BE RESTORED IN FULL,
UNADJUSTED BY ANY GAINS OR LOSSES OCCURRING SUBSEQUENT TO THE
ANNIVERSARY DATE OR OTHER VALUATION DATE COINCIDING WITH OR
PRECEDING HIS TERMINATION. THE SOURCE FOR SUCH REINSTATEMENT
SHALL FIRST BE ANY FORFEITURES OCCURRING DURING THE PLAN
YEAR. IF SUCH SOURCE IS INSUFFICIENT, THEN THE COUNTY SHALL
CONTRIBUTE AN AMOUNT NECESSARY TO RESTORE ANY SUCH FORFEITED
ACCOUNTS.
DEATH.
SECTION 80. IF A MEMBER DIES AFTER HIS ACCOUNT BECAME FIXED
FOR ANY REASON OTHER THAN DEATH, BUT BEFORE DISTRIBUTION OF
HIS FIXED ACCOUNT, THE FIXED ACCOUNT SHALL BE DISTRIBUTED TO
HIS DESIGNATED BENEFICIARY. THE AMOUNT SHALL BE ONE HUNDRED
PERCENT (100%) OF THE MEMBER'S ACCOUNT BALANCE.
DISTRIBUTIONS SHALL BE MADE WITHIN SIXTY (60) DAYS AFTER THE
MEMBER DIED UNLESS THE RETIREMENT COMMISSION RECEIVES
CONFLICTING CLAIMS.
INVESTMENT OPTIONS (DIRECTED INVESTMENT).
SECTION 81. EACH MEMBER OF THE DC PART WHO IS AT LEAST 40%
VESTED SHALL HAVE FLEXIBILITY TO DESIGNATE THE INVESTMENT
FUND(S) THAT THE VESTED PART OF THE COUNTY'S CONTRIBUTIONS
(AND ROLLOVERS FROM THE DB PART) ARE TO BE INVESTED. THE
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LAW OFFICES MACDONALD AND GOREN. PROFESSIONAL CORPORATION 240 EAST DROWN STREET, SUITE 200, BIRMINGH•M, MICHIGAN 40009 (610) A453540 RETIREMENT COMMISSION SHALL DETERMINE WHICH INVESTMENT FUNDS
SHALL BE AVAILABLE. THERE SHALL BE AT LEAST FOUR SUCH
INVESTMENT FUNDS WITH THE FOLLOWING INVESTMENT OBJECTIVES:
I. A FIXED INCOME FUND DESIGNED TO ACHIEVE MAXIMUM
CURRENT INCOME CONSISTENT WITH PRESERVATION OF
CAPITAL BY INVESTING PRIMARILY IN FIXED-INCOME
SECURITIES;
2. A COMMON STOCK FUND DESIGNED TO ACHIEVE LONG-TERM
CAPITAL GROWTH PRIMARILY THROUGH CAPITAL
APPRECIATION, WITH INCOME A SECONDARY
CONSIDERATION, BY INVESTING IN EQUITY-TYPE
SECURITIES;
3. A MONEY MARKET FUND DESIGNED TO ACHIEVE MAXIMUM
CURRENT INCOME CONSISTENT WITH LIQUIDITY AND
PRESERVATION OF CAPITAL BY INVESTING IN MONEY
MARKET SECURITIES;
4. A U.S. GOVERNMENT MONEY MARKET FUND DESIGNED TO
ACHIEVE MAXIMUM CURRENT INCOME CONSISTENT WITH
PRESERVATION OF CAPITAL BY INVESTING IN SHORT-TERM,
MARKETABLE OBLIGATIONS ISSUED OR GUARANTEED BY THE
UNITED STATES GOVERNMENT OR BY AGENCIES OR
INSTRUMENTALITIES OF THE UNITED STATES GOVERNMENT
WHETHER OR NOT THEY ARE GUARANTEED BY THE FULL
FAITH AND CREDIT OF THE FEDERAL GOVERNMENT.
5. A BALANCED FUND DESIGNED TO ACHIEVE MAXIMUM LONG
TERM TOTAL RATE OF RETURN CONSISTENT WITH PRUDENT
INVESTMENT RISK BY INVESTING A COMMON STOCK AND
OTHER EQUITY SECURITIES, BONDS AND OTHER DEBT
SECURITIES, AND MONEY MARKET INSTRUMENTS. THE
INVESTMENT ADVISER SHALL HAVE THE ABILITY TO VARY
THE INVESTMENTS AMONG EQUITY AND DEBT SECURITIES
AND MONEY MARKET INSTRUMENTS DEPENDING UPON ITS
ANALYSIS OF MARKET TRENDS. TOTAL RATE OF RETURN
CONSISTS OF CURRENT INCOME, INCLUDING DIVIDENDS,
INTEREST AND DISCOUNT ACCRUALS AND CAPITAL
APPRECIATION.
6. AN AGGRESSIVE GROWTH FUND DESIGNED TO ACHIEVE
GROWTH OF CAPITAL BY INVESTING IN SECURITIES
SELECTED SOLELY ON THE BASIS OF POTENTIAL FOR
CAPITAL APPRECIATION; INCOME, IF ANY, IS AN
INCIDENTAL CONSIDERATION;
7. A GNMA/MORTGAGE SECURITIES FUND DESIGNED TO ACHIEVE
MAXIMUM CURRENT INCOME CONSISTENT WITH SAFETY OF
PRINCIPAL AND MAINTENANCE OF LIQUIDITY BY INVESTING
PRIMARILY IN MORTGAGE-RELATED SECURITIES, INCLUDING
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LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 260 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 46009 (610) SECURITIES ISSUED BY THE GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION ("GNMA");
8. AN INDEX FUND DESIGNED TO PROVIDE INVESTMENT
RESULTS THAT CORRESPOND TO THE PRICE AND YIELD
PERFORMANCE OF PUBLICLY-TRADED COMMON STOCKS IN THE
AGGREGATE, AS REPRESENTED BY THE STANDARD & POOR'S
500 COMPOSITE STOCK PRICE INDEX (THE "INDEX"). THE
FUND SHALL BE NEITHER SPONSORED BY, NOR AFFILIATED
WITH, STANDARD & POOR'S CORPORATION.
PLUS SUCH OTHER INVESTMENTS AS THE RETIREMENT COMMISSION
SHALL SELECT.
EACH MEMBER WHO IS AT LEAST 40% VESTED SHALL ADVISE THE
RETIREMENT COMMISSION HOW HE WANTS THE VESTED PART OF HIS
ACCOUNT BALANCE INVESTED. IF A MEMBER WHO IS AT LEAST 40%
VESTED FAILS TO NOTIFY THE RETIREMENT COMMISSION, IT SHALL BE
PRESUMED THAT HE HAS ELECTED THAT HIS VESTED ACCOUNT BE
INVESTED IN THE BALANCED FUND. IF A MEMBER WISHES TO UTILIZE
MORE THAN ONE FUND, HE SHALL NOTIFY THE RETIREMENT COMMISSION
OF THE PERCENTAGE OF HIS VESTED ACCOUNT BALANCE TO BE
INVESTED IN EACH FUND, AND, EXCEPT AS PROVIDED IN THE LAST
PARAGRAPH OF THIS SECTION, SUCH PERCENTAGE MUST EITHER BE IN
EXACT MULTIPLES OF 1% OR WHOLE DOLLAR AMOUNTS OR SUCH OTHER
MULTIPLES DETERMINED BY THE THIRD PARTY ADMINISTRATOR
MAINTAINING THE RECORDS OF EACH MEMBER'S ACCOUNTS.
A MEMBER OF THE DC PART WHO IS AT LEAST 40% VESTED MAY
CHANGE HIS ELECTION OF INVESTMENT FUNDS, PROVIDED THAT ALL
MEMBERS WHO ARE AT LEAST 40% VESTED ARE TREATED UNIFORMLY.
THE RETIREMENT COMMISSION SHALL ADOPT SUCH RULES AND
PROCEDURES AS IT DEEMS ADVISABLE AS TO ALL MATTERS RELATING
TO THE SELECTION AND USE OF THE INVESTMENT FUNDS. IF THERE
IS ANY INCONSISTENCY BETWEEN SUCH RULES AND ANY PROVISIONS
ABOVE, THE ABOVE PROVISIONS SHALL BE DISREGARDED.
IF A MEMBER WHO IS AT LEAST 40% VESTED DESIRES, HE MAY
DIRECT THAT COUNTY CONTRIBUTIONS BE INVESTED IN ONE FUND AND
HIS CONTRIBUTIONS AND ROLLOVER CONTRIBUTIONS BE INVESTED IN
ANOTHER FUND OR FUNDS.
DURATION; TERMINATION; ASSUMPTION
SECTION 82. (A) DURATION. THIS RETIREMENT SYSTEM SHALL
CONTINUE UNTIL THE TRUST FUND HAS BEEN PAID OUT AND
DISTRIBUTED.
(B) TERMINATION; ASSUMPTION. IT IS THE COUNTY'S
PRESENT INTENTION TO PERMANENTLY MAINTAIN THE RETIREMENT
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PROFESSIONAL CORPORATION 280 EAST •ROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 4•009 (1110) /345•5540 SYSTEM AND CONTINUE TO MAKE CONTRIBUTIONS PROVIDED, HOWEVER,
THAT:
(1) THE COUNTY RESERVES THE RIGHT TO REVOKE THIS
RESOLUTION AND/OR TERMINATE OR SUSPEND FURTHER CONTRIBUTIONS
TO THE TRUST.
(2) THE RETIREMENT SYSTEM SHALL AUTOMATICALLY
TERMINATE UPON THE COUNTY'S LEGAL DISSOLUTION, OR UPON ITS
ADJUDICATION AS A BANKRUPT OR INSOLVENT, OR UPON ITS MAKING A
GENERAL ASSIGNMENT FOR THE BENEFIT OF CREDITORS, OR UPON A
RECEIVER BEING APPOINTED FOR ITS ASSETS.
(3) IN THE EVENT OF ANY TERMINATION, PARTIAL
TERMINATION, OR COMPLETE DISCONTINUANCE OF CONTRIBUTIONS, THE
COUNTY AND THE RETIREMENT COMMISSION SHALL GIVE PROMPT NOTICE
THEREOF TO THE COMMISSIONER OF INTERNAL REVENUE; AND, SUBJECT
TO SUBPARAGRAPH (C) BELOW EACH MEMBER'S ACCOUNT SHALL BECOME
FULLY VESTED AND NONFORFEITABLE. IN THE CASE OF A PARTIAL
TERMINATION, THIS PARAGRAPH SHALL APPLY ONLY TO THAT PORTION
OF THE RETIREMENT SYSTEM TERMINATED.
(C) LIQUIDATION OF TRUST. IN THE EVENT OF THE DC PART
OF THIS RETIREMENT SYSTEM'S TERMINATION, THE RETIREMENT
COMMISSION SHALL LIQUIDATE ALL INVESTMENTS AND DETERMINE THE
VALUE OF EACH MEMBER'S ACCOUNT UNDER SECTION 76 (FIXED
ACCOUNTS) AS OF THE DATE OF TERMINATION AS FOLLOWS:
(I) ADJUSTMENT SHALL BE MADE TO EACH ACCOUNT TO
COVER ANY EXPENSES OF DISTRIBUTION AND FINAL LIQUIDATION.
THE RETIREMENT COMMISSION SHALL PAY THE BALANCE OF EACH
MEMBER'S ACCOUNT AS DESCRIBED IN SECTION 77.
(2) BEFORE MAKING ANY PAYMENTS, DISTRIBUTIONS OR
ASSIGNMENTS, HOWEVER, THE RETIREMENT COMMISSION AND ITS LEGAL
COUNSEL, SHALL FIRST BE PAID THEIR EXPENSES AND CHARGES
INCIDENT TO THE OPERATION OF THE TRUST AND THE TERMINATION
THEREOF, BY THE COUNTY. IF THE COUNTY DOES NOT PAY SUCH
EXPENSES AND CHARGES, THE RETIREMENT COMMISSION SHALL HAVE A
LIEN ON THE CASH AND OTHER PROPERTY REMAINING IN ITS HANDS, 9 THE ASSETS DISTRIBUTABLE TO THE MEMBERS BEING LIABLE FOR A
iJC PRO RATA SHARE THEREOF UNTIL THE RETIREMENT COMMISSION AND
THEIR COUNSEL HAVE BEEN PAID.
Ii
3
(D) TERMINATION OF TRUST. NOTWITHSTANDING TERMINATION
OF THE RETIREMENT SYSTEM, THE TRUST SHALL TERMINATE WHEN AND
(3) IN ANY EVENT, THE RETIREMENT COMMISSION SHALL
NOT BE REQUIRED TO MAKE ANY DISTRIBUTIONS UNTIL WRITTEN
EVIDENCE OF APPROVAL BY THE COMMISSIONER OF INTERNAL REVENUE
OF SUCH TERMINATION AND DISTRIBUTION HAS BEEN SUBMITTED TO
THE RETIREMENT COMMISSION.
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LAW OFFICES MACDONALD AND GOREN, PROFESSIONAL CORPORATION 360 EAST BROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 41005 (WO) 1545 5940 IF, BUT NOT UNTIL, THE TRUST FUND HAS BEEN ENTIRELY PAID OUT
AND DISTRIBUTED IN ACCORDANCE WITH THIS RESOLUTION.
EXECUTION OF INSTRUMENTS.
SECTION 83. (A) ANY INSTRUMENT OR DOCUMENT TO BE PROVIDED BY
THE COUNTY SHALL BE PROPERLY EXECUTED IF EXECUTED IN THE NAME
OF THE COUNTY BY ANY OFFICER OR OFFICERS THEREOF; OR WHERE
PROVIDED BY THE RETIREMENT COMMISSION, IF EXECUTED AS
FOLLOWS:
(1) IF EXECUTED IN THE RETIREMENT COMMISSION'S
NAME BY EITHER THE TREASURER OR SECRETARY OF THE RETIREMENT
COMMISSION, AND
(2) IN THE CASE OF ANY CORPORATE TRUSTEE (WHETHER
OR NOT THE SOLE TRUSTEE), IF EXECUTED AS TRUSTEE IN THE NAME
OF THE CORPORATION UNDER ITS CORPORATE NAME BY ANY OFFICER OR
OFFICERS THEREOF; PROVIDED, FURTHER THAT ANY INTERESTED
PARTIES SHALL BE FULLY PROTECTED IN RELYING UPON ANY
INSTRUMENT OR DOCUMENT SO EXECUTED, AND, SUCH EXECUTION SHALL
BE CONCLUSIVE PROOF THAT ANY SIGNATURE IS DULY AUTHORIZED AND
THAT ANY SUCH INFORMATION IS TRUE AND CORRECT.
(B) COUNTY ACTIONS. WHENEVER THE COUNTY IS PERMITTED
OR REQUIRED TO DO OR PERFORM ANY ACT OR EXECUTE ANY DOCUMENT,
IT SHALL BE DONE, PERFORMED OR EXECUTED BY OR AT THE
DIRECTION OF ITS BOARD OF COMMISSIONERS OR BY OFFICERS OR
AUTHORIZED AGENTS OF THE COUNTY, AND MAY BE EVIDENCED BY
RESOLUTIONS CERTIFIED BY THE COUNTY CLERK.
INDEMNIFICATION BY COUNTY.
SECTION 84. THE COUNTY HEREBY AGREES TO INDEMNIFY AND SAVE
HARMLESS ANY MEMBER OF THE RETIREMENT COMMISSION OR OTHER
FIDUCIARY AGAINST ANY LIABILITIES INCURRED BY ANY OF THEM IN
THE EXERCISE AND PERFORMANCE OF THEIR POWERS AND DUTIES,
EXCEPT WHERE ATTRIBUTABLE TO THEIR FRAUD, GROSS NEGLECT OR
MALFEASANCE, AS JUDICIALLY DETERMINED; IF SAME CAN BE DONE
WITHOUT AFFECTING THE CODE SECTION 401(A) QUALIFICATION OF
THE RETIREMENT SYSTEM, ANY AMOUNTS PAID BY THE COUNTY SHALL
BE REIMBURSED TO THE COUNTY OUT OF THE TRUST, IF SUFFICIENT
FUNDS ARE AVAILABLE, AND SHALL BE AN EXPENSE FOR PURPOSES OF
SECTION 74 (EXPENSES).
LIABILITY INSURANCE.
SECTION 85. THE RETIREMENT COMMISSION MAY PURCHASE, AS AN
AUTHORIZED EXPENSE OF THE RETIREMENT SYSTEM, LIABILITY
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4."
41 INSURANCE FOR THE RETIREMENT SYSTEM AND/OR FOR ITS
i FIDUCIARIES TO COVER LIABILITY OR LOSSES OCCURRING BY REASON
OF AN ACT OR OMISSION OF A FIDUCIARY. SUCH INSURANCE b CONTRACT MAY PERMIT RECOURSE BY AN INSURER AGAINST THE 0 FIDUCIARY FOR BREACH OF A FIDUCIARY OBLIGATION.
a ANY FIDUCIARY MAY PURCHASE INSURANCE TO PROTECT HIMSELF
IN THE EVENT OF A BREACH OF FIDUCIARY DUTY AND THE COUNTY MAY
ALSO PURCHASE INSURANCE TO COVER THE POTENTIAL LIABILITY OF
• ONE OR MORE PERSONS WHO SERVE IN A FIDUCIARY CAPACITY.
SERVICE IN MULTIPLE CAPACITIES.
SECTION 86. ANY PERSON OR GROUP OF PERSONS MAY SERVE IN MORE
a THAN ONE FIDUCIARY CAPACITY AS TO THIS RETIREMENT SYSTEM,
SPECIFICALLY INCLUDING SERVICE BOTH AS A TRUSTEE AND AS PLAN 6 ADMINISTRATOR.
In
3
LIMITATIONS ON FIDUCIARY LIABILITY.
• SECTION 87. NOTHING IN THIS RETIREMENT SYSTEM SHALL PREVENT
• A FIDUCIARY FROM RECEIVING ANY BENEFIT THAT HE IS OTHERWISE
ENTITLED TO AS A MEMBER OR BENEFICIARY. HOWEVER, THE BENEFIT L7,
MUST BE COMPUTED AND PAID CONSISTENT WITH THE TERMS OF THIS 0 • RETIREMENT SYSTEM AS APPLIED TO ALL OTHER MEMBERS AND
6 BENEFICIARIES. THIS RETIREMENT SYSTEM SHALL NOT BE
INTERPRETED TO PREVENT ANY FIDUCIARY FROM RECEIVING
REASONABLE COMPENSATION FOR SERVICES RENDERED, OR FOR THE 0
O REIMBURSEMENT OF EXPENSES PROPERLY AND ACTUALLY INCURRED IN
THE PERFORMANCE OF HIS DUTIES WITH THE RETIREMENT SYSTEM;
EXCEPT THAT NO PERSON SO SERVING WHO ALREADY RECEIVES FULL—
TIME PAY FROM THE COUNTY SHALL RECEIVE COMPENSATION FROM THIS
RETIREMENT SYSTEM, EXCEPT FOR REIMBURSEMENT OF EXPENSES
PROPERLY AND ACTUALLY INCURRED. A FIDUCIARY IS ALSO ENTITLED
TO SERVE IN THIS CAPACITY IN ADDITION TO BEING AN OFFICER, 0 • EMPLOYEE, AGENT, OR OTHER REPRESENTATIVE OF ANY PARTY—IN-
2 INTEREST.
1 0 INVESTMENT MANAGER. 1
SECTION 88. WHEN AN INVESTMENT MANAGER HAS BEEN APPOINTED,
HE IS REQUIRED TO ACKNOWLEDGE IN WRITING THAT HE HAS
3 UNDERTAKEN A FIDUCIARY RESPONSIBILITY WITH RESPECT TO THE
RETIREMENT SYSTEM.
IN ORDER TO SERVE AS AN INVESTMENT MANAGER A PERSON MUST
QUALIFY AS:
—64—
:
1! CORPORATION 260 EAST 14ROWN STREET, SUITE 200, BIRMINGHAM, MICHIGAN 419009 11610) 545 5540 PROFESSIONAL Mi a 0
0
•
0
0
• LAW OFFICES (A) A REGISTERED INVESTMENT ADVISER UNDER THE
INVESTMENT ADVISER ACT OF 1940; OR
(13) A BANK, AS DEFINED IN THAT ACT; OR
(C) AN INSURANCE COMPANY DULY AUTHORIZED TO PERFORM
SUCH SERVICES UNDER THE LAWS OF MORE THAN ONE STATE; OR
(D) BE AN INDIVIDUAL OR BUSINESS ENTITY, WHETHER A
CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY WHOSE
PRIMARY PROFESSION IS ACTING AS AN INVESTMENT COUNSELOR AND
ADVISOR.
ENFORCEMENT.
SECTION 89. THE RETIREMENT COMMISSION SHALL CONSULT WITH ANY
INVESTMENT MANAGER, WHEN ACTING, WITH RESPECT TO ANY AND ALL
INVESTMENT DECISIONS, OTHER THAN MINISTERIAL DECISIONS AND
SHALL COOPERATE WITH THE INVESTMENT MANAGER TO CARRY OUT SUCH
INVESTMENT PLANS, PROGRAMS, STRATEGIES AND ACTS AS MAY BE
CONCEIVED BY THE INVESTMENT MANAGER; PROVIDED, HOWEVER, AND
NOTWITHSTANDING THE FOREGOING, UPON RECEIPT OF WRITTEN
RECOMMENDATIONS FROM THE DULY APPOINTED INVESTMENT MANAGER,
THE RETIREMENT COMMISSION SHALL BE ACCORDED A REASONABLE TIME
TO EXAMINE AND REVIEW THE OVERALL INVESTMENT PLAN AND
STRATEGY, INITIALLY AND FROM TIME TO TIME, BEFORE
IMPLEMENTING THE SAME, AND MAY REFUSE TO IMPLEMENT THE SAME,
IN WHOLE OR IN PART, IF THE RETIREMENT COMMISSION SHALL
DETERMINE, IN THE EXERCISE OF ITS FIDUCIARY RESPONSIBILITY,
THAT IMPLEMENTATION OF ALL OR ANY PART OF SAID INVESTMENT
PLAN AND STRATEGY WOULD NOT BE REASONABLY PRUDENT IN THE
CIRCUMSTANCES. WRITTEN NOTICE OF SUCH DETERMINATION SHALL BE
GIVEN BY A TRUSTEE, THE INVESTMENT ADVISOR AND THE OTHER
TRUSTEES. NOTWITHSTANDING ANYTHING ELSE HEREIN OR AS
PROVIDED BY STATUTE OR REGULATION TO THE CONTRARY, NO TRUSTEE
SHALL BE LIABLE FOR ANY LOSS OR DETRIMENT ARISING DIRECTLY OR
INDIRECTLY FROM ANY ACT OR OMISSION TO ACT AS DIRECTED BY AN
INVESTMENT MANAGER OR FROM ANY SALE, FAILURE TO SELL,
RETENTION OF ASSETS OR INVESTMENT ACTIVITY OR FAILURE OF
ACTIVITY BASED UPON A RESULT, DIRECTLY OR INDIRECTLY FROM THE
DIRECTIONS FROM INVESTMENT MANAGEMENT OR FROM THE FAILURE OR
REFUSAL OF ANY TRUSTEE, ACTING IN DISCHARGE OF ITS FIDUCIARY
RESPONSIBILITY HEREUNDER, TO IMPLEMENT ALL OR ANY PART OF THE
INVESTMENT PLAN AND STRATEGY OF ANY INVESTMENT MANAGER. IF
NECESSARY TO PROTECT THE INTERESTS OF THE RETIREMENT SYSTEM
OR ANY MEMBER OR BENEFICIARY, A FIDUCIARY SHALL SEEK THE
ASSISTANCE OF SUCH CIVIL OR CRIMINAL COURTS OF COMPETENT
JURISDICTION OR SUCH REGULATORY OR ADMINISTRATIVE AGENCIES AS
MAY BE APPROPRIATE UNDER THE CIRCUMSTANCES.
-65-
Resolution #94185 June 23, 1994
n rib A
Moved by Gosling supported by Powers the Finance Committee Report be
accepted.
A sufficient majority having voted therefor, the report was accepted.
Moved by Gosling supported by Powers the resolution be adopted.
AYES: Johnson, Kaczmar, Kingzett, Law, McCulloch, Miltner, Moffitt, Newby,
Oaks, Obrecht, Palmer, Pernick, Powers, Schmid, Taub, Wolf, Aaron, Crake,
Dingeldey, Douglas, Garfield, Gosling, Huntoon, Jensen. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
i HERE'
1
"ROV 0R EnOING RESOLUTION
44
IEBrooke Patters.% County Executive Date
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on June 23, 1994 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and a
County of Oakland at Pontiac, Michigan this 23rd day of/Uthe 1
A /
ed the seal of the
/7
D. Allen, County Clerk