HomeMy WebLinkAbout2010.12.14_Worksession AgendaPUBLIC NOTICE OF THE MEETING OF THE
OWASSO CITY COUNCIL
TYPE OF MEETING:
Special
DATE:
December 14, 2010
TIME:
6:00 p.m.
PLACE:
Old Central Building
109 N. Birch
Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board
at 5:00 PM on Friday, December 10, 2010. n A
M. Stevens, Deputy City Clerk
AGENDA
1. Call to Order
Mayor Bonebrake
2. Presentation by Mike Gibson on the FY 2010 Audit.
Mike Gibson
Attachment # 2
3. Discussion relating to Administrative Items
Ms. Bishop
Attachment # 3
A. Proposed Ordinance - Internal Revenue Service (IRS) Requirements for Oklahoma
Municipal Retirement Foundation (OMRF)
4. Discussion relating to Operational Items
Mr. Lehr
Attachment # 4
A. Final Plat -Temple Business Park
B. Proposed Bid Acceptance - Rayola Park Improvement Project
C. Proposed Bid Acceptance - Sports Park South Restroom Project
5. Discussion relating to City Manager Items
Mr. Ray
Attachment # 5
A. Quality of Life Initiative Update
B. Election Sign Survey
C. Rural Water District (RWD) Utility Billing Rate Calculations
D. Proposed Ordinances - Truancy and Child Seat Safety
E. City Manager Report
1. Sales Tax Report
6. Report from City Councilors
7. Adjournment
On
The City wit lout Limits.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Angela Hess
Finance Director
SUBJECT: Fiscal Year 2009 -2010
DATE: December 10, 2010
BACKGROUND:
The firm of Cole & Reed, P.C. has provided audit services to the city and its trust authorities for
the past five years. Mike Gibson from Cole & Reed, P.C. met with members of the City staff and
the City of Owasso's Audit Committee on December 2, 2010 to review and accept the annual
audit for the fiscal year ended June 30, 2010. Members of the Audit Committee are Bryan
Stovall, John Manning, Kevin Cavanah, Guy Nightingale, and Dennis Phillips.
The Audit Committee was provided the auditor opinion, management letter and annual
financial reports. The committee met independent of staff with Mr. Gibson to discuss any further
questions or concerns regarding the audit findings. Cole and Reed provided an unqualified
opinion and found no reportable material weaknesses related to the audit that would be
included in the management letter for fiscal year 2009 -10. The Audit Committee was satisfied
with the reports and related information.
The Comprehensive Annual Financial Report (CAFR) is prepared annually as part of the state -
required audit by an independent, certified and licensed auditor. The auditing firm reports their
findings to the Audit Committee as established by City Ordinance No. 872.
The City is responsible for completeness and accuracy of the annual report. The necessary
auditor reports are included in the audit prepared by Cole and Reed. The audit attests to the
City's compliance with Oklahoma State Law and federal reporting requirements.
Mr. Gibson will attend the Council work session on December 14th to present the audit and
respond to questions from Council members. Also, in attendance will be Kevin Cavanah, Chair
of the Audit Committee.
RECOMMENDATION:
The Audit Committee and staff intend to recommend City Council acceptance of the
Comprehensive Annual Financial Report for FY 2009 -10.
the City, wit t Limits.
TO: 1 he Honorable Mayor, and City Council
City of Owasso
FROM: Michele Den-ipsler yf �-
Hun)an Resources Director
SUBJECT: OMRF Defined Benefit Plan Amendment
Proposed Ordinance 11975
[SATE: December 10, 2010
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The Oklahoma Municipal Retirement Fund (OMRF) Defined Benefit Plan is the mandatory
retirement plan for all full -time employees who do not participate in the State Police and Fire
Retirement plans. The City and participating employees contribute to the plan based on an
annual actuarial study. Upon retirement, an employee's benefit is based on a calculation which
includes the average of their last 60 months salary and years of service.
The City Council is the designated Retirement Committee for the City's OMRF retirement plans.
Therefore all plan changes and /or modifications must be approved by the City Council. Staff
was notified that the Defined Benefit Master Plan and Joinder agreement for our plan has
recently been updated and approved by the Internal Revenue Service (IRS). According to IRS
regulations, approved updates must be formally adopted by the City Council acting as the
Retirement Committee. The changes are intended to clarify current plan language; more
clearly define "compensation," and update language /definitions as required by Internal
Revenue Code. The changes will not affect the city or employee's contributions or plan
benefits. Similar changes were presented and approved by the City Council last Fall for the
City's OMRF Thrift plan.
RECOMMENDATIOW
Staff is prepared to present a recommendation requesting approval of the revised OMRF Master
Defined Benefit Plan Joinder Agreement and Ordinance #975 updating our plan document at
the December 14, 2010 City Council meeting.
ATTACHMENTS,
1. Summary of Changes
2. Proposed Ordinance #975
3. Joinder Agreement
4. OMRF Master Defined Contribution Plan
Oklahoma Municipal Retirement Fund
Master Defined Benefit Plan and Joinder Agreement
Summary of Changes
The following summarizes the significant changes to the Oklahoma Municipal Retirement Fund Master
Defined Benefit Plan and Joinder Agreement recently approved by the IRS:
A. Master Defined Benefit Plan
Section
Description
2.1(b)
"Actuarial Equivalent." Incorporates a required reference to the mortality table that applies for
purposes of calculating /determining whether a Participant's annual benefit exceeds the limit contained
in Article X of the Plan.
2.1(f)
"Average Monthly Compensation." Now allows the Employer to select (in the Joinder Agreement)
the number of consecutive months that will be used to calculate Average Monthly Compensation, rather
than automatically using 60 months.
Provides that the number of consecutive months of service will include non - credited periods under an
Authorized Leave of Absence.
Also provides that if an Employee has less than the number of consecutive months selected by the
Employer in the Joinder Agreement, the Employee's actual consecutive months will be used to
calculate Average Monthly Compensation.
2.1(1)
"Compensation." Defines Compensation as wages for purposes of Code § 3401(a), plus certain other
amounts. Allows the Employer to specify modifications to the definition of Compensation in the
Joinder Agreement.
3.1
"Eligibility." Provides that the term "Employee" is defined in the Joinder Agreement. Also provides
that a person who has been classified as an independent contractor but is reclassified as an "Employee"
will not be eligible to participate in the Plan.
3.4
"Pick -up Contributions." Provides in part that a private letter ruling is required if the
sponsor /employer wishes a ruling on pick -up contributions.
4.1
"Normal Pension." Provides that an employee is eligible for a Normal Pension if his employment
classification has changed such that he is no longer eligible to participate in the Plan (e.g., a part-time
employee) on or after his Normal Retirement Date — provided that he is 100% vested.
7.2
"Other Forms of Payment." Now includes an Option G, which allows a payee to receive a
combination of Option F and Option D or Option E.
7.6(a)(1)
"Eligible Rollover Distribution." Provides that a portion of a distribution will not fail to be an eligible
rollover distribution because it consists of after -tax employee contributions that are not includible in
gross income — but restricts the type of plans that the portion may be paid to.
7.6(a)(ii)
"Eligible Retirement Plan." An "Eligible Retirement Plan" now includes an annuity contract
described in Code § 403(b); an eligible plan under Code § 457(b) that is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political subdivision that agrees to
separately account for transferred amounts.
Also, the definition of "Eligible Retirement Plan" now applies in the case of a distribution to a
Participant's surviving non - spouse Beneficiary — provided, however, that the direct rollover may only
be made to an individual retirement account or annuity described in Code § 408(a) or 408(b).
7.7
"Minimum Distribution Requirements." As required by Code §401(a)(9), for purposes of
4
determining the required minimum distributions beginning with the 2003 calendar year, this section
generally provides that a Participant's entire interest will be distributed, or begin to be distributed, no
5
later than the April 1 of the calendar year following the later of (a) the calendar year in which the
Participant attains age 70%2, or (b) the calendar year in which the Participant retires.
8.1(a)
Transfers to Another Category With Same Employer. This subsection provides that if an Employee
is transferred to a department, classification, or category with his Employer and is consequently no
longer eligible to participate in this Plan, his participation ceases and he does not continue to accrue
service for the purposes of benefit accruals or additional vesting credit.
9.1(a)(14)
Committee Powers. Expressly gives the Committee the power to appoint persons to perform certain
tasks, including but not limited to, persons to receive and separately account for certain payments and
payroll deductions consisting of contributions or assets under the Plan for the Fund.
9.1
City Treasurer and City Personnel Officer. Removed 9.1(c) and 9.1(d) from the old Plan. The Plan
no longer provides that the City Treasurer is the Treasurer of the Plan, and no longer provides that the
City Personnel Officer will assist in the administration of the Plan.
9.4
Abandonment of Benefits. Generally provides that if a Participant or Beneficiary is entitled to receive
benefits under the Plan, but their whereabouts are unknown, the benefits will be forfeited if the
Committee has mailed to such person notice of the right to receive benefits, and after one year, mails
the notice again. But this section also provides that if the whereabouts of such a lost Participant or
Beneficiary (whose benefits have been forfeited) later becomes known to the Committee and the person
makes a claim for benefits, the Committee shall reinstate the forfeited benefits.
9.5
Benefits Payable to Incompetents. Where payments are due to a minor or another person under legal
disability, at the discretion of the Committee, the payments may be made to either (a) a parent, spouse,
relative by blood or marriage; or (b) the person's legal representative.
10.2 -10.4
Limitation on Benefits. As required by Code § 415, these sections generally provide that the annual
benefit payable to a Plan Participant will not exceed $160,000 (this number is adjusted annually, and is
--_
$195,000 for 2010), but this amount is subject to adjustment as provided in 10.4(8).
10.12(a)-
Re- employment of Retired Employees. Where a retired Employee receives Pension payments and
(b)
then is later re- employed, the Pension payable upon his subsequent Retirement is equal to the sum of
(a) the amount he had been receiving for his prior Retirement, subject to cost -of- living adjustments,
payable under the same form of annuity elected for his prior Retirement; and (b) an amount determined
solely for his Compensation and Service with the Employer after re- employment, payable in the form
elected under Article V, VI, or VII.
12.3
Amendments. This section allows McAfee & Taft to adopt certain required amendments on behalf of
all Employers without each Employer being required to separately adopt the amendments.
B. Joinder Agreement
Section
Description
4
Definition of Compensation. Allows the Employer to exclude certain items (such as overtime and
bonuses) from the definition of Compensation.
5
Average Monthly Compensation. Allows the Employer to use either 36 consecutive months or 60
consecutive months for purposes of determining Participants' Average Monthly Compensation, which
is defined in Section 2.1(f) of the Master Plan Document and which is used in Section 5.1(a) of the
Master Plan Document to calculate Participants' normal pension.
-2-
AN ORDINANCE OF THE CITY OF OWASSO, OKLAHOMA
PROPOSED ORDINANCE NO. 975
AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM,
DEFINED BENEFIT PLAN FOR THE CITY OF OWASSO, OKLAHOMA
BY ADOPTING A REVISED AND RESTATED RETIREMENT PLAN;
PROVIDING RETIREMENT BENEFITS FOR ELIGIBLE EMPLOYEES OF
THE CITY OF OWASSO, OKLAHOMA; PROVIDING FOR PURPOSE AND
ORGANIZATION; PROVIDING FOR DEFINITIONS; PROVIDING FOR
ELIGIBILITY AND PARTICIPATION; PROVIDING FOR NON -
ALIENATION OF BENEFITS; LOSS ' OF BENEFITS FOR CAUSE AND
LIMITATIONS OF BENEFITS; PROVIDING FOR EMPLOYER AND
EMPLOYEE CONTRIBUTIONS; PROVIDING FOR ACCOUNTING,
ALLOCATION, AND VALUATION; PROVIDING BENEFITS; PROVIDING
FOR REQUIRED NOTICE PROVIDING FOR AMENDMENTS AND
TERMINATION; PROVIDING FOR TRANSFER TO AND FROM OTHER
PLANS; CREATING A RETIREMENT COMMITTEE AND PROVIDING
FOR POWERS, DUTIES, AND RIGHTS OF RETIREMENT COMMITTEE;
PROVIDING FOR PAYMENT OF CERTAIN OBLIGATIONS; PROVIDING
FOR DURATION AND PAYMENT OF EXPENSES; PROVIDING FOR
EFFECTIVE DATE; PROVIDING FOR VESTING SCHEDULES;
PROVIDING FOR A FUND TO FINANCE THE SYSTEM TO BE POOLED
WITH OTHER INCORPORATED CITIES, TOWNS AND THEIR
AGENCIES AND INSTRUMENTALITIES FOR PURPOSES OF
ADMINISTRATION, MANAGEMENT, AND INVESTMENT AS PART OF
THE OKLAHOMA MUNICIPAL RETIREMENT FUND; PROVIDING FOR
PAYMENT OF ALL CONTRIBUTIONS UNDER THE SYSTEM TO THE
OKLAHOMA MUNICIPAL RETIREMENT FUND FOR MANAGEMENT
AND INVESTMENT; PROVIDING FOR REPEALER AND
SEVERABILITY; ADOPTING THOSE AMENDMENTS MANDATED BY
THE INTERNAL REVENUE CODE; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT
TO -WIT:
Section 1. That pursuant to the authority conferred by the laws of the State of Oklahoma, and for the
purpose of encouraging continuity and meritorious service on the part of City employees and thereby
promote public efficiency, there is hereby authorized created, established, and approved and adopted,
effective as of January 1, 2011, the amended and restated Plan designated "Employee Retirement
System of the City of Owasso, Oklahoma, Defined Benefit Plan," (hereinafter called System), an
executed counterpart of which is marked Exhibit "A" (Joinder Agreement) and Exhibit "B"
(amended and restated plan) and attached hereto as part hereof.
Section 2. FUND. A fund is hereby provided for the exclusive use and benefit of the persons
entitled to benefits under the System. All contributions to such fund shall be paid over to and
received in trust for such purpose by the City. Such Fund shall be pooled for purposes of
management and investment with similar funds of other incorporated cities, towns, and municipal
trusts in the State of Oklahoma as a part of the Oklahoma Municipal Retirement Fund in accordance
with the trust agreement of the Oklahoma Municipal Retirement Fund, a public trust. The City shall
hold such contributions in the form received, and from time to time pay over and transfer the same to
the Oklahoma Municipal Retirement Fund, as duly authorized and directed by the Board of Trustees.
The Fund shall be nonfiscal and shall not be considered in computing any levy when the annual
estimate is made to the County Excise Board.
Section 3. APPROPRIATIONS. The City of Owasso, Oklahoma, is hereby authorized to incur the
necessary expenses for the establishment, operation, and administration of the System, and to
appropriate and pay the same. In addition, the City of Owasso, Oklahoma, is hereby authorized to
appropriate annually such amounts as are required in addition to employee contributions to maintain
the System and the Fund in accordance with the provisions of the Defined Benefit Plan. Any
appropriation so made to maintain the System and Fund shall be for deferred wages or salaries, and
for the payment of necessary expenses of operation and administration to be transferred to the
trustees of the Oklahoma Municipal Retirement Fund for such purposes and shall be paid into the
Fund when available, to be duly transferred to the Oklahoma Municipal Retirement Fund.
Section 4. EXECUTION. The Mayor and City Clerk be and they are each hereby authorized and
directed to execute (in counterparts, each of which shall constitute an original) the System
instrument, and to do all other acts and things necessary, advisable, and proper to put said System
and related trust into full force and effect, and to make such changes therein as may be necessary to
qualify the same under Sections 401(a) and 501(a) of the Internal Revenue Code of the United
States. The counterpart attached hereto as Exhibit "A" and Exhibit `B ", which has been duly
executed as aforesaid simultaneously with the passage of this Ordinance and made a part hereof, is
hereby ratified and confirmed in all respects.
This Committee is hereby authorized and directed to proceed immediately on behalf of the City of
Owasso, Oklahoma, to pool and combine the Fund into the Oklahoma Municipal Retirement Fund as
a part thereof, with similar funds of such other cities and towns, for purposes of pooled management
and investment.
Section 5. REPEALER. Any Ordinance inconsistent with the terms and provisions of this
Ordinance is hereby repealed, provided, however, that such repeal shall be only to the extent of such
inconsistency and in all other respects this Ordinance shall be cumulative of other ordinances
regulating and governing the subject matter covered by this Ordinance.
Section 6. SEVERABILITY. If, regardless of cause, any section, subsection, paragraph, sentence or
clause of this Ordinance, including the System as set forth in Exhibit "A" and Exhibit `B ", is held
invalid or to be unconstitutional, the remaining sections, subsections, paragraphs, sentences, or
clauses shall continue in full force and effect and shall be construed thereafter as being the entire
provisions of this Ordinance.
PASSED by the City Council of the City of Owasso, Oklahoma on the 21st day of December,
2010.
Doug Bonebrake, Mayor
ATTEST:
Sherry Bishop, City Clerk
(SEAL)
APPROVED as to form and legality this day of 2010.
Julie Lombardi, City Attorney
Exhibit A
OKLAHOMA MUNICIPAL RETIREMENT FUND
MASTER DEFINED BENEFIT PLAN
JOINDER AGREEMENT
City of Owasso, a city, town, agency, instrumentality, or public trust located in the State of Oklahoma, with
its principal office at Owasso, Oklahoma, hereby establishes a Defined Benefit Plan to be known as City of
Owasso Plan (the "Plan") in the form of The Oklahoma Municipal Retirement Fund Master Defined Benefit
Plan.
Except as otherwise provided herein, the defmitions in Article H of the Plan apply.
1. Dates.
[ ] This instrument is a new Plan effective
[ X ] This instrument is an amendment, restatement and continuation of the Previous Plan, which was
originally effective July 1, 1972. The effective date of this Joinder Agreement is January 1,
2011, except as otherwise stated in the Plan and the Joinder Agreement.
2. Employee.
The word "Employee" shall mean:
[ X ] Any person other than a Leased Employee who, on or after the Effective Date, is considered to
be a regular full -time employee in accordance with the Employer's standard personnel policies
and practices, and is receiving remuneration for such services rendered to the Employer
(including any elected official and any appointed officer or employee of any department of the
Employer, whether governmental or proprietary in nature), including persons on Authorized
Leave" of Absence. Employees shall not include independent contractors. Elected members of
the City Council shall not be considered to be Employees solely by reason of their holding such
ofce.
[ ] Any person other than a Leased Employee who, on or after the Effective Date, is considered to
be a regular employee in accordance with the Employer's standard personnel policies and
practices (including part-time, seasonal and temporary employees), and is receiving
remuneration for such services rendered to the Employer (including any elected official and any
appointed officer or employee of any department of the Employer, whether governmental or
proprietary in nature), including persons on Authorized Leave of Absence. Employees shall not
include independent contractors. Elected members of the City Council shall not be considered to
be Employees solely by reason of their holding such office.
[ ] Any person who, on or after the Effective Date, is an employee of the Employer and is.
The word "Employee" shall not include:
[ X ] Any person who is currently accruing benefits under any other state or local retirement system.
[ ] Any person who is.
3. Eligibility.
Eligible Employees shall commence participation in the Plan: (Select only one)
[ ] _ month(s) (any number of months up to twelve consecutive) after the Employee's Employment
Commencement Date.
[ X ] On the Employee's Employment Commencement Date.
4. Definition of Compensation.
Compensation shall exclude the item(s) listed below:
[ ] No exclusions.
[ ] Overtime pay.
[ X ] Bonuses.
[ X ] Commissions.
[ X ] Severance pay.
[ X ] Fringe benefits, expense reimbursements, deferred compensation and welfare benefits.
[ X ] Other: Accrued vacation or sick leave paid upon termination of employment and moving
expenses.
5. Average Monthly Compensation.
The considered period for purposes of the definition of "Average Monthly Compensation" in Section 2.1
of The Oklahoma Municipal Retirement Fund Master Defined benefit Plan is:
[ X ] sixty (60) consecutive months.
[ ] thirty-six (36) consecutive months.
6. The Employer hereby elects the following Plan design:
[ X ] Mandatory Contribution Option. An Employee shall be required to contribute to the Plan for
each Plan Year the percentage of his Compensation ( "Mandatory Contributions ") required by the
Plan. Mandatory Contributions shall be made by payroll deductions. An Employee shall
authorize such deductions in writing on forms approved by, and filed with, the Committee.
If the Employee's contributions are to be taxed deferred:
[ X ] Pick -Up Option. The Employer hereby elects to have the provisions of Section 3.4 of
the Plan apply. The Employer shall pick -up and pay the percentage of each
Participant's Compensation required to be contributed as of July 1, 1992 in lieu of
contributions by the Participant. No Participant shall have the option of receiving the
contributed amounts directly as Compensation.
[ ] Non - Contributory Option. Participants shall not be required nor permitted to contribute
to the Plan.
7. A. Payment Options. The Employer hereby elects the following minimum number of payments for
employees eligible to receive benefits under Article IV of the Plan:
[ X ] Sixty (60) monthly payments.
[ ] One hundred and twenty (120) monthly payments.
B. Plan Options. The Employer hereby elects the following plan designation and percentage used in
calculating benefits under Section 5.1 of the Plan.
[ ] Plan AAA - 3% with no maximum Years of Service
[ ] Plan AAA - 3% recognizing a maximum of 22 Years of Service
[ X ] Plan AA - 2.625%
[ ] Plan BB - 2.25%
[ ] Plan CC - 1.875%
[ ] Plan A - 1.5%
[ ] Plan B - 1.125%
[ ] Plan C -.75%
C. Normal Retirement Age. Normal retirement age shall be:
[ ] Age 65
[XI The earlier of (i) and (ii) as follows:
(i) age 65
(ii) the later of age 62 and the age at which the Participant has completed 30 years of
service.
Examples: An employee hired at age 20 who worked for 30 years and terminated at age 50
would be entitled to unreduced payments at age 62.
An employee hired at age 30 who worked for 25 years and terminated at age 55
would be entitled to unreduced payments at age 65.
[ ] Modified Rule of 80:
The earlier of (i) and (ii) as follows:
(i) age 65
(ii) the later of age 55 and the age at which the sum of the Participant's age in
completed years and the participant's number of completed years of credited service total 80
or greater. To be eligible, the Participant's age plus service must be at least 80 prior to
termination of employment.
Examples: 1. An employee hired at age 30 who worked for 25 years and terminated at
age 55 would be entitled to unreduced payments immediately. Age 55 plus 25
years equals 80.
Exhibit A — Page 2
2. An employee hired at age 20 who worked for 30 years and terminated at
age 50 would be entitled to unreduced payments at age 55. The employee has
age plus service points at age 50 but the minimum age for payment is 55.
3. An employee hired at age 25 who worked for 25 years and terminated at
age 50 would be entitled to unreduced payments at age 65. Age 50 plus 25
years is less than 80, so the Normal Retirement Age is 65.
D. Vesting Options. The Employer hereby elects the following vesting option to detennine an
Employee's eligibility to receive retirement benefits.
[ ] Ten Year Cliff Vesting Schedule
[ ] Seven Year Cliff Vesting Schedule
[ X ] Five Year Cliff Vesting Schedule
E. Service Credit Prior to Original Plan Effective Date. The Employer hereby elects to include the
following limitation of service prior to the original Plan effective date.
[ X ] No limitation
[ ] Service credit prior to the original Plan effective date shall not exceed _ years.
F. Service Buyback. The Employer hereby elects
[ ] No service buyback pursuant to Section 10.13 of the Plan
[ X ] The service buyback provisions of Section 10.13 of the Plan.
G. Service for Worker's Compensation Period. If a Participant is on an Authorized Leave of
Absence and is receiving worker's compensation during such Authorized Leave of Absence, such
Participant
[ X ] shall be credited with Service for such period for purposes of vesting only and not for
purposes of benefits, but no Employee contributions shall be made with respect to the
Participant for such period.
[ ] shall not be credited with Service for such period.
S. Contributions by Employees.
If Employees are required to contribute to the cost of providing benefits under this Plan, such
contributions shall be based on the plan designation selected in Section 713 above and shall apply to pay
periods commencing on and after July 1, 2001.
a. [ ] The Employee contribution formula in Section 3.3 of the Plan shall use the following
maximum percentage for the Plan Option selected in Section 713 of this Joinder Agreement:
Plan AAA — 6.0%
Plan AA - 5.25%
Plan BB - 4.5%
Plan CC - 3.75%
Plan A -3%
Plan B - 2.25%
Plan C - 1.5%
b. [ X ] The contribution formula shall be 4.26% of compensation. (Not to exceed the percentages in
above paragraph).
c. [ ] The contribution as annually determined each year shall be shared by the Employee and
Employer as follows:
Employee portion %
Employer portion %
(Employee plus Employer percentages must total 100 %.)
The contribution will be actuarially determined based on Plan assets and liabilities as of
January 1 of each year as a percent of payroll, which will then be shared between the
Employer and Employee as noted above. These contribution rates will be in effect from July
1 of that year until June 30 of the subsequent year.
Exhibit A — Page 3
9. Cost -of- Living Option.
For purposes of adjusting retiree and beneficiary pensions, the Employer hereby elects the following:
[ X ] No Cost -of- Living Option.
[ ] Cost -of- Living Option. This election applies to Sections 5.1 (Normal Pension), 5.4 (Deferred
Vested Pension), 6.3A and 6.3B (Death After Commencement of Pension), and 6.4 (Spouse's
Pension) and provides annual benefit increases of the smaller of three percent (3 %) or the
percentage change in the Consumer Price Index.
The effective date of the Cost -Of- Living Option shall be _, the original date that the Employer
elected the Cost -Of- Living Option.
10. Retiree Plan Improvement Option.
Benefits payable to or on behalf of a former Employee under Article V, Article VI, or Article VII of
the Plan, which are due or in the course of payment of the Effective Date of this Joinder Agreement,
shall
[ ] be increased according to the Plan Option elected herein. Such increased benefits shall be
reflected in any periodic payments due or paid on or after the Effective Date of the Joinder
Agreement. It is not intended for this change to be retroactive and any periodic payments due
prior to such date shall not be affected.
[ ] be increased by % effective . Such increased benefits shall be reflected in any periodic
payments due or paid after such date. It is not intended for this change to be retroactive and any
periodic payments due prior to such date shall not be affected.
[ X ] not be increased, but shall continue to be paid under the terns of the Previous Plan.
11. Limitations on Optional Benefit Forms.
Section 7.2 of the Plan provides for a lump sum payment form, an installment payment form that would
be payable over a fixed number of years (at which time all payments would cease), or the purchase of an
insured annuity. The Employer hereby elects the following:
[ X ] Optional benefit forms under Section 7.2 of the Plan will not be permitted.
[ ] Optional benefit forms under Section 7.2 of the Plan will be permitted, subject to Retirement
Committee approval for any such elections by an Employee, subject to the following
limitation(s):
(The above election has no effect on the joint and survivor optional benefit forms under Section 7.1).
12. Defined Contribution Option.
[ X ] Not applicable.
[ ] Participant shall be entitled to the benefit under this option, in addition to the benefit determined
according to Section 7B.
An account shall be created for each active Participant as of the effective date of the option. The
beginning balance of the account shall be the Participant's Contribution Accumulation. The
account shall be credited with:
(1) Mandatory Contributions made by the Participant after the effective date of the option.
(2) Investment earnings at same rate as earned by the Oklahoma Municipal Retirement Fund
(OMRF) Defined Benefit Fund.
As soon as administratively possible after termination of employment or death, the administrator
shall pay the Participant or Beneficiary if applicable, the account balance. The Participant may
elect to receive the benefit in any of the Benefit options permitted under the plan. The benefit
shall be the Actuarial Equivalent of the account balance at the time the benefit commences.
The administrator shall determine the method of determining the investment earnings and the
date such investment earnings are credited.
This option shall be effective _.
Exhibit A — Page 4
13. The Employer has consulted with and been advised by its attorney concerning the meaning of the
provisions of the Plan and the effect of entry into the Plan.
IN WITNESS WHEREOF City of Owasso has caused its corporate seal to be affixed hereto and this
instrument to be duly executed in its name and behalf by its duly authorized officers this day of
Attest:
Title:
(SEAL)
City of Owasso
Lo
Title:
14. The foregoing Joinder Agreement is hereby approved by the Oklahoma Municipal Retirement Fund this
day of ,
Attest:
Secretary
(SEAL)
OKLAHOMA MUNICIPAL RETIREMENT FUND
Title: Chairman
Exhibit A —Page 5
Exhibit B
OKLAHOMA MUNICIPAL RETIREMENT FUND
MASTER DEFINED BENEFIT PLAN
OKLAHOMA MUNICIPAL RETIREMENT FUND
MASTER DEFINED BENEFIT PLAN
TABLE OF CONTENTS
Page
ARTICLE I. Purpose and Organization .................................................... ............................... I
1.1 Purpose ........................................................................................ ............................... I-
1.2 Parties .......................................................................................... ............................... I-
ARTICLE II. Definitions and Construction ................................................. ...........................II -1
2.1 Definitions ...................................................................................... ...........................II -1
(a) Accrued Pension ................................................................... ...........................II -1
(b) Actuarial Equivalent .............................................................. ...........................II -1
(c) Adjustment Factor ................................................................. ...........................II -1
(d) Authorized Agent .................................................................. ...........................II -1
(e) Authorized Leave of Absence ................................................ ...........................II -1
(0 Average Monthly Compensation ........................................... ...........................II -1
(g) Beneficiary ............................................................................ ...........................II -2
(h) Break in Service ...................................... . ............. ................ ....:..... ................. II -2
(i) City Council .......................................................................... ...........................II -2
0) Code ...................................................................................... ...........................II -2
(k) Committee ............................................................................. ...........................II -2
(1) Compensation ........................................................................ ...........................II -2
(m) Contribution Accumulation ................................................... ...........................II -3
(n) Death Benefit ......................................................................... ...........................II -3
(o) Deferred Vested Pension ....................................................... ...........................II -3
(p) Disability ............................................................................... ...........................II -3
(q) Disability Pension .................................................................. ...........................II -3
(r) Early Pension ......................................................................... ...........................II -3
(s) Effective Date ........................................................................ ...........................II -3
(t) Employer ............................................................................... ...........................II -3
(u) Employment Commencement Date ...................................... ...........................II -4
(v) Fund ...................................................................................... ...........................II -4
(w) Joinder Agreement ................................................................. ...........................II -4
(x) Leased Employee .......... : .................................................................................. II -4
(y) Limitation Compensation ...................................................... ...........................II -4
(z) Municipality .......................................................................... ...........................II -4
(aa) Normal Pension ..................................................................... ...........................II -4
(bb) Normal Retirement Date ........................................................ ...........................II -4
(cc) Oklahoma Municipal Retirement Fund .................................. ...........................II -4
(dd) Participant ...................................................................... ............................... II -5
(ee) Pension .................................................................................. ...........................II -5
(ff) Plan ....................................................................................... ...........................II -5
(gg) Plan Administrator ................ . ........................................................................... II -5
(hh) Plan Year ............................................................................... ...........................II -5
i
(ii)
Previous Plan ......................................................................... ...........................II -5
6J)
Retirement ............................................................................. ...........................II
-5
(kk)
Service ................................................................................... ...........................II
-5
(11)
Severance Benefit ............................................................... :.............................
II -6
(mm) Trust Service Provider ........................................................... ...........................II
-6
(nn)
Trustee ................................................................................... ...........................II
-6
(oo)
U. S. Consumer Price Index ................................................... ...........................II
-6
(pp)
Year of Service ...................................................................... ...........................II
-6
2.2 Construction .................................................................................... ...........................II
-6
ARTICLE III. Contributions ......................................... ............................... ..........................III -1
3.1
Eligibility .................................................................................. ...............................
III -1
3.2
Contributions by Employer ...................................................... ...............................
III -1
3.3
Contributions by Employees .......................... ............................... ..........................
III -1
3.4
Pick -up Contributions ............................................................... ...............................
III -2
3.5
Transfer of Contributions ......................................................... ...............................
III -3
ARTICLEIV. Requirements for Retirement Benefits ........................... ............................... IV -1
4.1 Normal Pension ........................................................................ ............................... IV -1
4.2 Early Pension ................................................................................. .................'.........IV -1
4.3 Disability Pension .......................................................................... ...........................IV -1
4.4 Deferred Vested Pension .......................................................... ............................... IV -2
4.5 Pensions for Former Employees ................................................... ...........................IV -2
4.6 Termination of Employment - Vesting of Benefits .................. ............................... IV -3
ARTICLE V. Amount of Retirement Benefits ......................................... ............................... V -1
5.1 Normal Pension ......................................................................... ............................... V -1
5.2 Early Pension ............................................................................. ............................... V -1
5.3 Disability Pension ...................................................................... ............................... V -2
5.4 Deferred Vested Pension ........................................................... ............................... V -2
5.5 Accrued Credits and Vested Benefits Preserved ....................... ............................... V -2
ARTICLE VI. Severance and Death Benefits ........................................ ............................... VI -1
6.1
Severance Benefit ..................................................................... ............................... VI -1
6.2
Death Prior to Commencement of Pension .............................. ...............................
VI -1
6.3
Death After Commencement of Pension .................................. ...............................
VI -2
6.4
Spouse's Pension ...................................................................... .............................0.
VI -3
6.5
Designation of Beneficiary ....................................................... .............0................. VI -4
6.6
Severance of Death Benefits for Former Employees ............... ...............................
VI -5
ARTICLE VII. Optional Retirement Benefits ....................................... ..........0....................
VII -1
7.1
Joint and Survivor Options ............................ ............................... ..........................
VII -1
7.2
Other Forms of Payment ................................ ............................... ..........................
VII -1
7.3
Restrictions on Optional Forms ............................................... ...............................
VII -2
7.4
Other Benefits Canceled by Option ............... ............................... ..........................VII
-3
7.5
Options by Former Employee .................................................. ...............................
VII -3
7.6
Rollover to Another Plan or IRA ............................................. ...............................
VII -3
11
7.7 Minimum Distribution Requirements ...................................... ............................... VII -4
ARTICLE VIII. Employment Transfers ...................... ............................... .........................VIII -1
8.1
Transfers From This Plan ...................................................... ............................... VIII -1
8.2
Transfers to This Plan ............................................................ ...............................
VIII -1
8.3
Notice of Transfers ................................................................ ...............................
VIII -2
ARTICLEIX. Administration ................................................................ ...............................
IX -1
9.1
Administration .............................................................................. ...........................IX
-1
9.2
Bonds ........................................................................................ ...............................
IX -4
9.3
Benefit Payments ...................................................................... ...............................
IX -4
9.4
Abandonment of Benefits ......................................................... ...............................
IX -4
9.5
Benefits Payable to Incompetents ............................................. ...............................
IX -4
ARTICLEX. Limitations ............................................................................ ............................X
-1
10.1
Loss of Benefits for Cause ......................................................... ...............................
X -1
10.2
Annual Benefit - General ........................................................... ...............................
X -1
10.3
Limitation on Benefits ............................................................... ...............................
X -1
10.4
Definitions ................................................................................. ...............................
X -2
10.5
Predecessor Employer ............................................................... ...............................
X -9
10.6
Severance from Employment .................................................... ...............................
X -9
10.7
Year of Participation .................................... ..............................................................
X -9
10.8
Year of Service .......................................................................... ...............................
X -9
10.9
Other Rules: ..............................................................................................................
X -9
10.10
Participant Limitation Applicable to Deferred Contribution Option ......................
X -I 1
10.11
Re- employment of Former Employees .................................... ...............................
X -11
10.12
Re- employment of Retired Employees .................................... ...............................
X -11
10.13
Buyback of Service .................................................................. ...............................
X -11
ARTICLE XI. Guarantees and Liabilities .............................................. ...............................
XI -1
11.1
Non - Guarantee of Employment ................................................ ...............................
XI -1
11.2
Rights to Fund Assets ............................................................... ...............................
XI -1
11.3
Non - Alienation of Benefits ...................................................... ............................... XI -1
11.4
Disclaimer of Liability .............................................................. ...............................
XI -1
11.5
Indemnification of Trustees ...................................................... ...............................
XI -1
11.6
Payments Under a Qualified Domestic Relations Order: ........................................
XI -1
ARTICLEXII. Amendments ...................................... ............................... ..........................XII -1
12.1
Right to Amend ................... . ... ............ ...................................................................
XII -1
12.2
Amendments ............................................................................ ...............................
XII -1
12.3
Authority of Volume Submitter Practitioner to Amend for Adopting Employers.
XII -1
ARTICLEXIII.
Termination ....................................... ............................... .........................XIII
-1
13.1
Right to Terminate ................................................................. ...............................
XIII -1
13.2
Liquidation of Fund ............................................................... ...............................
XIII -1
13.3
Manner of Distribution .......................................................... ...............................
XIII -2
13.4
Consolidation or Merger ........................................................ ...............................
XIII -2
iii
13.5
Limitations ............................................................................. ...............................
XIII -2
ARTICLEXIV. General.; ...................................................................................................
XIV -1
14.1
Not Contract Between Employer and Participant .................. ...............................
XIV -1
14.2
Payment of Fees ..................................................................... ...............................
XIV -1
14.3
Governing Law ...................................................................... ...............................
XIV -1
14.4
Counterpart Execution ........................................................... ...............................
XIV -1
14.5
Severability ............................................................................ ...............................
XIV -1
14.6
Number and Gender ............................................................... ...............................
XIV -1
14.7
Compensation and Expenses of Administration .................... ...............................
XIV -1
14.8
Incorporation of Trust Agreement ......................................... ...............................
XIV -1
14.9
Mistake of Fact ...................................................................... ...............................
XIV -2
APPENDIX I
IMA
ARTT('IN I-
Purpose and Organization
1.1 Purpose: The purpose of this Plan is to encourage the loyalty and continuity of service
of the Participants, to provide retirement benefits for all eligible Employees of the Employer, as
hereinafter defined, who complete a period of faithful service and become eligible hereunder,
and to qualify the Plan under Sections 401(a) and 501(a) of the Code by meeting the
requirements of Code Section 414(d). The benefits provided by this Plan will be paid from a
Fund established by the Employer and will be in addition to the benefits Employees are entitled
to receive under any other programs of the Employer and from the Federal Social Security Act,
This Plan and the separate related Fund forming a part hereof are established and shall be
maintained for the exclusive benefit of the eligible Employees of the Employer and their
Beneficiaries.
1.2 Parties: The Oklahoma Municipal Retirement Fund hereby adopts and establishes this
Plan for the benefit of Employees of those Employers, as defined herein, formed, chartered or
incorporated under the laws of the State of Oklahoma, who wish to adopt it by executing a
Joinder Agreement which incorporates this Plan by reference.
I -1
ARTICLE II.
Definitions and Construction
2.1 Definitions: Where the following words and phrases appear in this Plan, they shall have
the respective meanings set forth below, unless their context clearly indicates to the contrary:
(a) Accrued Pension: The Pension (other than a Disability Pension) determined
under the Plan expressed in the form of a monthly benefit commencing at Normal Retirement
Date (or date of determination in the case of a Late Pension), which an Employee has accrued at
any time under the provisions of the Plan, regardless of his vested status, determined as if he had
then terminated employment.
(b) Actuarial Equivalent: Equality in value of the aggregate amounts expected to be
received under different forms of payment. Except as otherwise specifically noted, the
determination of such equality will be based on the use of the 1983 Group Annuity Table and
71/2% interest. For purposes of determining the benefit limitations under § 415(b)(2)(B), (C), or
(D) of the Internal Revenue Code as set forth in Section 10.2 of the Plan the applicable mortality
table for annuity starting dates prior to December 31, 2002 is set forth in Rev. Rul. 95 -6. 1995 -1
C.B. 80, and for annuity starting dates on or after December 31, 2002 is set forth in Rev. Rul.
2001 -62, 2001 -53, I.R.B. 632.
(c) Adjustment Factor: The words "Adjustment Factor" shall mean the cost of
living adjustment factor prescribed by the Secretary of the Treasury under Section 415(d) of the
Code for years beginning after December 31, 1987, as applied to such items and in such manner
as the Secretary shall provide.
(d) Authorized Agent: The City Clerk of the Employer or such other person
designated by the Employer to carry out the efficient operation of the Plan at the local level.
(e) Authorized Leave of Absence: Any absence authorized by the Employer under
the Employer's standard personnel practices applied to all persons under similar circumstances in
a uniform manner, including any required military service during which a Participant's re-
employment rights are protected by law; provided that he resumes employment with the
Employer within the applicable time period established by the Employer or by law.
Notwithstanding any provision of this Plan to the contrary, effective December 12, 1994,
contributions, benefits and service credit with respect to qualified military leave will be provided
in accordance with Section 414(u) of the Code.
(f) Average Monthly Compensation: The result obtained by dividing the total
Compensation paid to an Employee during a considered period by the number of months,
including fractional months, for which such Compensation was received. The considered period
shall be the number of consecutive months selected in Joinder Agreement within the last one
hundred twenty (120) months of service which yield the highest average Compensation. For
purposes of determining consecutive months, periods of credited service shall be bridged, if
interrupted with non - credited periods under an Authorized Leave of Absence. If an Employee
has less than the number of months of consecutive employment service selected in the Joinder
II -1
Agreement, the Employee's actual consecutive months shall be the basis for calculating the
Employee's Average Monthly Compensation hereunder.
(g) Beneficiary: Any person or entity designated or deemed designated by a
Participant as provided in Section 6.5 hereof.
(h) Break in Service: The expiration of ninety (90) days from the date the
Participant last performed Service for the Employer for which such Participant was entitled to
wages as defined in Section 3121(a) of the Code, unless the Participant is on Authorized Leave
of Absence. If an Employee does not resume employment with the Employer upon the
expiration of an Authorized Leave of Absence, the Participant will be deemed to be absent from
work on the first day of his Authorized Leave of Absence for purposes of determining if the
Participant has a Break in Service.
(i) City Council: The City Council (or Board of Trustees) of the Employer or other
duly qualified and acting governing authority of the Employer.
(j) Code: The Internal Revenue Code of 1986, as amended from time to time.
(k) Committee: The City Council of the Municipality, which shall act as the Plan
Administrator of the Plan as provided for under Article IX hereof.
(1) Compensation: Compensation means wages for federal income tax withholding
purposes, as defined under Code §3401(a), plus all other payments to an Employee in the course of
the Employer's trade or business, for which the Employer must furnish the Employee a written
statement under Code § §6041, 6051 and 6052, but determined without regard to any rules that
limit the remuneration included in wages based on the nature or location of the employment or
services performed (such as the exception for agricultural labor in Code §3401(a)(2)). The
Employer in its Joinder Agreement may specify modifications to the definition of Compensation,
for purposes of contribution allocations under the Plan. For purposes of determining an
Employee's compensation, any election by such Employee to reduce his regular cash
remuneration under Code Sections 125, 402(e)(3), 402(h), 403(b) or 132(f) shall be disregarded.
(1) Limitations. Notwithstanding anything herein to the contrary, for Plan Years
commencing after December 31, 1988 and before January 1, 1994, the annual Compensation of
each Participant taken into account under the Plan for any Plan Year shall not exceed $200,000, as
adjusted by the Secretary at the same time and in the same manner as under Section 415(d) of the
Code except that the dollar increase in effect on January 1 of any calendar year is effective for Plan
Years beginning in such calendar year and the first adjustment to the $200,000 limitation is effective
on January 1, 1990. For years beginning on or after January 1, 1994, the annual compensation limit
of each Participant taken into account for determining all benefits provided under the Plan for any
determination period shall not exceed $150,000, as adjusted for the cost -of- living in accordance
with section 401(a)(17)(B) of the Internal Revenue Code. The cost -of- living adjustment in effect
for a calendar year applies to any determination period beginning in such calendar year. If a
determination period consists of fewer than 12 months, the OBRA '93 annual compensation limit
will 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.
II -2
The annual Compensation of each Participant taken into account in determining benefit
accruals in any Plan Year beginning after December 31, 2001, shall not exceed $200,000.
Annual Compensation means Compensation during the Plan Year or such other consecutive 12-
month period over which Compensation is otherwise determined under the Plan (the
determination period). For purposes of determining benefit accruals in a Plan Year beginning
after December 31, 2001, Compensation for any prior determination period shall be $200,000.
The $200,000 limit on annual Compensation shall be adjusted for cost -of- living increases in
accordance with Section 401(a)(17)(B) of the Code. The cost -of- living adjustment in effect for a
calendar year applies to annual Compensation for the determination period that begins with or
within such calendar year.
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 applicable annual compensation limit in effect for that prior
determination period.
For limitation years beginning on and after January 1, 2001, for purposes of applying the
limitations described in this Subsection 2.1(1), Compensation paid or made available during such
limitation years shall include elective amounts that are not includible in the gross income of the
Employee by reason of Section 132(f)(4) of the Code.
(m) Contribution Accumulation: The Employee's aggregate contributions, plus
interest thereon accrued at the rate determined by the Trustee, compounded according to uniform
rules adopted by the Trustees. Prior to January 1, 1983 the interest rate for crediting interest was
three and one -half percent (3'/z %) per annum. In the event that the Employer has elected the
Defined Contribution Option in Section 12 of the Joinder Agreement, then, as of the effective
date of such election, the interest rate for determining the investment earnings on such amounts
contributed under such option shall be equal to the rate earned by the Fund.
(n) Death Benefit: The pension benefit described in Section 6.2 herein.
(o) Deferred Vested Pension: The pension benefit described in Sections 4.4 and 5.4
herein.
(p) Disability: A physical or mental condition which, in the judgment of the
Committee, totally and presumably permanently prevents an Employee from engaging in any
substantial gainful employment with the Employer. A determination of such disability shall be
based upon competent medical evidence.
(q) Disability Pension: The pension benefit described in Sections 4.3 and 5.3 herein.
(r) Early Pension: The pension benefit described in Sections 4.2 and 5.2 herein.
(s) Effective Date: The later of (i) the date specified in the Joinder Agreement, or (ii)
the first day on which the Plan has a Participant.
(t) Employer: A Municipality chartered, incorporated or formed under the laws of
the State of Oklahoma which executes the Joinder Agreement.
II -3
(u) Employment Commencement Date: The date on which the Employee's
employment with the Employer began.
(v) Fund: The fund established to provide the benefits under the Plan for the
exclusive benefit of the employees included in the Plan, and which will be pooled with similar
funds of other incorporated cities and towns of Oklahoma as a part of Oklahoma Municipal
Retirement Fund, for purposes of pooled management and investment.
(w) Joinder Agreement: The agreement by which the Employer adopts this Plan and
Fund as its Plan and Fund.
(x) Leased Employee: Any person (other than an employee of the recipient) who
pursuant to an agreement between the recipient and any other person ( "leasing organization ") has
performed services for the recipient (or for the recipient and related persons determined in
accordance with Section 414(n)(6) of the Code) on a substantially full time basis for a period of
at least one year, and such services are performed under primary direction or control by the
recipient. Contributions or benefits provided a leased employee by the leasing organization
which are attributable to services performed for the recipient employer shall be treated as
provided by the recipient employer.
A leased employee shall not be considered an employee of the recipient if: (I) such
employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer
contribution rate of at least 10% of compensation, as defined in Section 415(c)(3) of the Code, but
including amounts contributed pursuant to a salary reduction agreement which are excludable from
the employee's gross income under Section 125, Section 402(e)(3), Section 402(h)(1)(B) or Section
403(b) of the Code, (2) immediate participation, and (3) full and immediate vesting; and (ii) leased
employees do not constitute more than 20% of the recipient's nonhighly compensated work force.
(y) Limitation Compensation: Compensation as defined in Section 10.4(b) hereof.
(z) Municipality: (1) each and every incorporated municipality in the State of
Oklahoma; (2) public trusts having municipalities as Beneficiaries; (3) interlocal cooperatives
created pursuant to 74 Oklahoma Statutes, Sections 1001, et seq., between municipalities and /or
their public trust, and; (4) any other legal entity comprising a municipal authority as that term is
used in Chapter 48 of Title 11 Oklahoma Statutes, which has adopted the Plan and /or which has
become a Participant in the related trust according to the terms hereof.
(aa) Normal Pension: The pension benefit described in Sections 4.1 and 5.1 herein.
(bb) Normal Retirement Date: The later of (i) the Effective Date, or (ii) the first day
of the month coincident with or next following the later of the Normal Retirement Age as
designated in the Joinder Agreement, Section 7C, and (iii) the date he has satisfied the vesting
requirements specified in the Joinder Agreement to become 100% vested.
(cc) Oklahoma Municipal Retirement Fund: The trust created in accordance with
Sections 48 -101 et seq. of Title 11, Oklahoma Statutes 1981, to combine pension and retirement
funds in incorporated cities and towns of Oklahoma for purposes of management and investment,
represented by and acting through its Board of Trustees.
Il -4
(dd) Participant: Any Employee or former Employee who meets the eligibility
requirements and is covered under the Plan.
(ee) Pension: A series of monthly amounts which are payable to a person who is
entitled to receive benefits under the Plan.
(H) Plan: The Oklahoma Municipal Retirement Fund Master Defined Benefit Plan
set forth herein, and all subsequent amendments.
(gg) Plan Administrator: The persons who administer the Plan, pursuant to the
provisions of Article IX hereof.
(hh) Plan Year: The twelve (12) consecutive month period ending June 30th of each
year. The initial or final Plan Year may be less than a twelve (12) consecutive month period.
(ii) Previous Plan: The terms and provisions in the prior instruments governing the
Employer's qualified defined benefit retirement plan and related trust, and applying before the
Effective Date hereof, or any other date expressly specified herein if different from the Effective
Date, which prior instruments are amended, restated and superseded by this instrument.
6j) Retirement: Termination of employment after an Employee has fulfilled all
requirements for a Pension. Retirement shall be considered as commencing on the day
immediately following an Employee's last day of employment.
(kk) Service:
(1) A Participant's last continuous period during which the Participant was an
Employee of the Employer and/or any other Municipality prior to the earlier of his retirement or
Break in Service.
(i) Service includes employment with a Municipality other than the
Employer prior to the time that the other Municipality adopted the Plan if the other
Municipality credits a Participant's past service under its retirement plan; and
(ii) Service for the Employer does not include employment with any
Municipality if that service would not be included under the Municipality's retirement plan.
(2) Concurrent employment with more than one Municipality shall be credited
as only one period of Service.
(3) Any Authorized Leave of Absence shall not be considered as interrupting
continuity of employment, provided the Employee returns within the period of authorized absence.
Until such time as the City Council shall adopt rules to the contrary, credit for Service with the
Employer shall be granted for any period of Authorized Leave of Absence during which the
Employee's full Compensation is continued and contributions to the Fund are continued at the same
rate and made by or for him, but credit for Service with the Employer shall not be granted for any
period of authorized, nonpaid absence due to illness, union leave, military service, or any other
reason, unless arrangements are made with the City Council for the Employee's continued
II -5
participation and for contributions to be continued at the same rate and made by him or on his
behalf during such absence. Provided, however, if a Participant is on an Authorized Leave of
Absence and is receiving worker's compensation during such Authorized Leave of Absence, and if
the Employer so elects in the Joinder Agreement, such Participant shall be credited with Service for
such period for purposes of vesting only (and not for purposes of benefits) but no Employee
contributions shall be made with respect to the Participant for such period.
(4) The expiration of the term of office of an elected official shall not be
considered as interrupting continuity of employment, provided the official is re- elected for a
consecutive term.
(5) Any reference in this Plan to the number of years of service of an Employee
shall include fractional portions of a year.
(6) With respect to a Participant who was previously 100% vested in any other
Municipality's qualified retirement plan prior to becoming a Participant in this Plan, such
Participant's "Service" for purposes of determining years of service for vesting under this Plan shall
include the Participant's last continuous period during which the Participant was an employee of the
other Municipality.
Credit for service with the Employer shall not be granted for any period subsequent to the
Effective Date during which the Employee did not participate in the Plan and Employee
contributions to the Plan and Fund were not made by or for him except as specified above.
(11) Severance Benefit: The pension benefit described in Section 6.1 herein.
(mm) Trust Service Provider: The person appointed by the Trustees to supervise
operation of the Oklahoma Municipal Retirement Fund and to assist participating Municipalities
in the adoption and operation of the Plan.
(nn) Trustee: The Trustees appointed pursuant to the Trust Indenture establishing the
Oklahoma Municipal Retirement Fund.
(oo) U. S. Consumer Price Index: The Consumer Price index for all items as reported
in the Monthly Labor Review for the month of December of the immediately preceding calendar
year as published by the United States Department of Labor.
(pp) Year of Service: A 12 consecutive month period of service commencing on the
Employee's Employment Commencement Date, and any anniversary thereof.
2.2 Construction: The masculine gender, where appearing in the Plan, shall be deemed to
include the feminine gender, unless the context clearly indicates to the contrary. The words
"hereof," "herein," "hereafter" and other similar compounds of the word "here" shall mean and
refer to the entire Plan, not to any particular provision or Section.
II -6
ARTICLE III.
Contributions
3.1 Eligibility: An Employee, as defined in the Joinder Agreement, who has satisfied all the
requirements set forth in the Joinder Agreement shall be eligible to participate in the Plan. Any
person who has been classified by the Employer as an independent contractor and has had his
compensation reported to the Internal Revenue Service on Form 1099 but who has been
reclassified as an "employee" (other than by the Employer) shall not be considered as an eligible
Employee who can participate under this Plan; provided, if the Employer does reclassify such
worker as an "Employee," for purposes of this Plan, such reclassification shall only be
prospective from the date that the Employee is notified by the Employer of such reclassification.
3.2 Contributions by Employer: The Employer shall make contributions to the Fund in
such amounts and at such times as the City Council shall determine, acting under the advice of
the Plan's actuarial firm. All contributions made by the Employer to the Fund shall be
irrevocable, and shall be used for the exclusive benefit of the Employees covered by the Plan to
pay benefits under the Plan, or to pay expenses of the Fund. Forfeitures arising because of death
prior to Retirement, severance of Employment before an Employee becomes eligible for a
Pension, or any other reason shall be applied to reduce the cost of the Plan, not to increase the
benefits otherwise payable to the Employees.
3.3 Contributions by Employees: Unless the Employer selects the Non - Contributory
Option, each Employee shall contribute to the cost of providing benefits under this Plan while he
remains an Employee. Such annual contributions shall be the product of (i) the percentage
selected in Section 8 of the Joinder Agreement, and (ii) the Employee's Compensation.
Any required contributions by Employees shall be made by payroll deductions for each pay
period, or any series of pay periods as the Employer may deem most convenient, during the full
time of employment as an Employee. The City Council may, however, approve payment of such
contributions in a manner other than payroll deductions in any specific case or cases. (In any event
a Participant shall be deemed to consent and agree to the payroll deductions as provided for herein.)
If an Employee is granted a non -paid leave of absence authorized for any reason, his continued
participation in the Plan will depend upon his contributions being continued at the same rate and
made by or for him during such absence. While such contributions are continued during such non-
paid leave of absence, the Employee's Compensation shall be deemed to have continued at the same
rate for the purpose of computing the Employee's Average Monthly Compensation.
Provided, however, if a Participant is on an Authorized Leave of Absence and is receiving
worker's compensation during such Authorized Leave of Absence, such Participant shall be
credited with Service for such period for purposes of vesting only and not for purposes of benefits if
the Employer so elects in Section 7G of the Joinder Agreement, but no Employee contributions
shall be made wit. respect to the Participant for such period.
Each Employee in the service of the Employer on the Effective Date of the Plan hereof may
become a Participant in the Plan when first eligible by signing a written notice of participation,
agreeing to be bound by the terms and conditions hereof, and authorizing the Employer to deduct
from his Compensation the contributions required of him as provided in the Joinder Agreement,
III -1
hereof, and he shall be subjected to all other provisions of the Plan beginning on such date. An
Employee in the Service of the Employer who does not so elect to become a Participant as of the
date he is first eligible to do so, may so elect to become a Participant as of the first day of his pay
period coincidental with or next following the date as of which he gives to the Employer written
authority to commence deductions from his Compensation for the contributions required of him as
is provided in the Joinder Agreement. However, the Service of such a Participant shall not include
the period of such voluntary nonparticipation prior to the date as of which the Employee elects to
become a Participant in the Plan.
Each Employee employed on or after the original Effective Date of the Plan hereof shall, as
a condition of employment, become a Participant in the Plan as of the date on which he is first
eligible by signing a written notice of participation agreeing to be bound by the terms and conditions
hereof, and authorizing the Employer to deduct from his Compensation any contributions required
of him as provided in the Joinder Agreement hereof, and he shall be subject to all other provisions
of the Plan beginning on such date.
For each Employee who becomes a Participant in this Plan on the original Effective Date of
the Plan, Employee contributions and his participation shall first begin for the pay period
commencing on, or next following, that date. For each Employee who becomes a Participant in this
Plan after the original Effective Date of the Plan, Employee contributions and his participation shall
begin for the pay period commencing on or next following the date he becomes a Participant.
Such Employee contributions shall be fully vested in the contributor Employee at all times.
Upon retirement, death or termination of employment of an Employee for any reason, the retired or
terminated Employee, or his Beneficiary as the case may be, shall have the option to receive, in lieu
of any and all other benefits provided herein, his Contribution Accumulation. Furthermore, the
value of the total benefits payable to the Employee and /or his Beneficiary shall in no event be less
than his Contribution Accumulation as of the time of his termination of employment. However if
any benefit of any other kind is paid under this Plan, to or on behalf of an Employee, no
Contribution Accumulation shall be paid, but shall be deemed to have been included in the value of
the benefit so paid, unless the total value of such other benefit payments finally paid shall be less
than such Contribution Accumulation as of the time of the Employee's termination of employment,
in which case the difference shall be paid in a lump sum to the Employee and/or his Beneficiary.
3.4 Pick -up Contributions: If the Employer elects the Pick -Up Option in the Joinder
Agreement, all Participants shall be required to make the contributions specified in the Joinder
Agreement. These contributions shall be picked up and assumed by the Employer and paid to
the Fund in lieu of contributions by the Participant. Such contributions shall be designated as
Employer contributions for federal income tax purposes. Each Participant's Compensation will
be reduced by the amount paid to the Fund by the Employer in lieu of the required contribution
by the Participant. These contributions shall be excluded from the Participant's gross income for
federal income tax purposes and from wages for purposes of withholding under Sections 3401
through 3404 of ;he Code in the taxable year in which contributed. No Participant shall have the
option of receiving the contributed amounts directly as compensation. Contributions made by
the Employer under this election shall be designated as Employee contributions for purposes of
vesting, and determining Employee rights and the Employee's Contribution Accumulation and
III -2
shall be allocated to a separate account. A private letter ruling is required if the
sponsor /employer wishes a ruling on pick -up contributions.
3.5 Transfer of Contributions: All Employer and Employee contributions shall be directly
or immediately allocated, paid or delivered to the City Treasurer, as Treasurer of the Plan. Such
contributions shall be transferred and transmitted by the City Treasurer to the Fund for credit as
soon as administratively feasible.
I1I -3
ARTICLE IV.
Requirements for Retirement Benefits
4.1 Normal Pension: An Employee shall be eligible for a Normal Pension if his
employment is terminated on or after his Normal Retirement Date, or if his employment
classification has changed such that he is no longer eligible to participate in this Plan on or after
his Normal Retirement Date, provided he has met the 100% vesting requirements. Payment of a
Normal Pension shall commence as of the first day of the month coinciding with or next
following Retirement or change in employment classification, as applicable, and the last payment
shall be made as of the first day of the month in which the death of such Employee occurs;
provided however, that at the time of his death, if such Employee has received less than the
number of monthly payments elected by the Employer in Section 7 of the Joinder Agreement, his
Pension payments shall continue to his Beneficiary or Beneficiaries until a total of such number
of monthly payments as elected have been made to such Employee and such Beneficiary or
Beneficiaries. Normal Pension payments shall not be suspended for a retired Participant who
returns to work for the Employer in an employment classification which is not eligible to
participate in this Plan.
4.2 Early Pension: An Employee may elect early Retirement and be eligible for an Early
Pension if his employment is terminated on or after his 55th birthday and before his Normal
Retirement Date, provided he has met the 100% vesting requirements. Payment of an Early
Pension shall commence as of the Employee's Normal Retirement Date. However, if an
Employee requests the Committee to authorize the commencement of his Early Pension as of the
first day of any subsequent month which precedes his Normal Retirement Date, his Pension shall
commence as of the beginning of the month so requested, but the amount thereof shall be
reduced as provided in Section 5.2. The last payment of an Early Pension shall be made as of the
first day of the month in which the death of the retired Employee occurs; provided however, that
if the retired Employee has received less than the monthly payments as elected in Section 7 of
the Joinder Agreement at the time of his death, his Pension payments shall continue to his
Beneficiary or Beneficiaries until a total of such monthly payments have been made to such
Employee and such Beneficiary or Beneficiaries.
4.3 Disability Pension: An Employee shall be eligible for a Disability Pension if his
employment is terminated by reason of Disability, before his Normal Retirement Age, provided
he has met the 100% vesting requirements. Payment of a Disability Pension shall commence as
of the first day of the month coincidental with or next following the date of Retirement. The last
payment shall be made as of the first day of the month in which the death of the retired
Employee occurs, or if Disability ceases prior to his Normal Retirement Date, the first day of the
month in which Disability ceases.
Disability under the Plan shall be considered total and permanent, if on the basis of a
medical examination by a doctor or clinic appointed by the Committee, the Committee finds that the
Employee has a physical or mental condition which totally and presumably permanently prevents
him from engaging in any substantial gainful employment with the Employer.
Notwithstanding any other provisions of this Section, no Employee shall qualify for a
Disability Pension if the Committee determines that his Disability results from (a) chronic
IV -1
alcoholism, (b) addition to narcotics, (c) an injury suffered while engaged in a felonious or criminal
act or enterprise, or (d) service in the armed forces of the United states which entitles the Employee
to a veteran's disability pension.
Disability shall be considered to have ended and a Disability Pension shall cease if, prior to
his Normal Retirement Age, the Employee (a) engages in any substantial gainful employment
except for such employment as is found by the Committee to be for the primary purpose of
rehabilitation or not incompatible with a finding of total and permanent Disability, or (b) has
sufficiently recovered, in the opinion of the Committee based on a medical examination by a doctor
or clinic appointed by the Committee to be able to engage in regular employment with the Employer
and refuses an offer of employment by the Employer, or (c) refuses to undergo any medical
examination requested by the Committee provided that a medical examination shall not be required
more frequently than twice in any calendar year.
If Disability ceases before a retired Employee attains his Normal Retirement Date and the
Employee is re- employed by the Employer, the Pension payable upon his subsequent Retirement
shall be determined in accordance with the provisions of Section 10.6.
4.4 Deferred Vested Pension: An Employee shall be eligible for a Deferred Vested
Pension, if his employment is terminated before his 55th birthday and after he has met the 100%
vesting requirements. Payment of a Deferred Vested Pension shall commence as of the
Employee's Normal Retirement Date. However, if the Employee requests the Committee to
authorize the commencement of his Deferred Vested Pension as of the first day of the month
coinciding with or next following his 55th birthday, or as of the first day of any subsequent
month which precedes his Normal Retirement Date, his Pension shall commence as of the first
day of the month so requested, but the amount thereof shall be reduced as provided in Section
5.4.
4.5 Pensions for Former Employees: If an Employee's Service with the Employer
terminates, but his Service continues by virtue of his employment with a Municipality other than
the Employer, he, his spouse or other Beneficiaries shall only be then, or later become entitled to,
and limited to, such rights, benefits and options of any kind, under this Plan, if any, in the
amounts and on the terms and conditions, as provided in Article VIII - Employment Transfers.
IV -2
4.6 Termination of Employment - Vesting of Benefits:
(a) General: Except as provided in Section 10.1 hereof, when a Participant ceases to
be a Participant for any reason, he shall have vested and nonforfeitable rights in his Accrued
Benefits as set forth in one of the following vesting schedules as may be elected by the Employer
in the Joinder Agreement:
(i) Ten Year Cliff Vesting Schedule. The Ten Year Cliff Vesting Schedule is
as follows:
(ii)
(iii)
Years of Service
Less than: 10
At least: 10
Percent of Accrued
Benefit Vested
0%
100%
Seven Year Cliff Vesting Schedule. The Seven Year Cliff Vesting
Schedule is as follows:
Years of Service
Less than: 7
At least: 7
Percent of Accrued
Benefit Vested
0%
100%
Five Year Cliff Vesting Schedule. The Five Year Cliff Vesting Schedule is
as follows:
Years of Service
Less than: 5
At least: 5
IV -3
Percent of Accrued
Benefit Vested
0%
100%
ARTICLE V.
Amount of Retirement Benefits
5.1 Normal Pension:
(a) Basic Formula: An Employee who meets the requirements for a Normal Pension
shall receive a monthly amount equal to the product of (1), (2), and (3) as follows:
(1) The percentage associated with the Plan Option elected by the Employer in
Section 7B of the Joinder Agreement; multiplied by
(2) His Average Monthly Compensation; and multiplied by
(3) The number of his Years of Service credited with the Employer (but not with
any other Municipality), subject to the limitations in Section 7B of the Joinder Agreement.
(b) Cost -of- Living Adjustment: If the Cost -of- Living Option is elected in the
Joinder Agreement, the monthly amount of Normal Pension determined above under Subsection
(a) of this Section, or the amount of any optional form of Pension payable in lieu thereof to a
retired Employee or his contingent Beneficiary, shall be increased or decreased annually while
payable, commencing with the payment due on the first day of July coinciding with or next
following the later of (1) the effective date of the Cost -of- Living option, or (2) the date of the
Employee's Retirement, and continuing thereafter on the first day of each subsequent July during
which the Pension is payable. Each such increase or decrease shall be related to a change in the
cost -of- living based on the percentage change, if any, determined by a comparison of the U. S.
Consumer Price Index (as defined in Section 2.1(oo)) for the December next preceding the July
of the determination, with such U. S. Consumer Price Index for the December one year earlier;
provided however, that such yearly increase or decrease, if any, shall be limited to a maximum
change of three percent (3 %); and provided further, that such yearly decrease, if any, shall not
reduce the amount of Pension so adjusted, below the level established at the time of Retirement.
5.2 Early Pension:
(a) Basic Formula: An Employee who meets the requirements for an Early Pension
shall receive a monthly amount which shall be computed in the same manner as a Normal
Pension, considering his Compensation and Service credited with the Employer prior to
Retirement. If payment of an Early Pension commences prior to the Employee's Normal
Retirement Date, the amount determined above shall be reduced by 5% each full year plus 5%
pro -rata for the number of months in the period between the date as of which the Pension begins
and the Normal Retirement Date.
(b) Cost -of- Living Adjustment: If the Cost -of- Living option is elected in the
Joinder Agreement, the monthly amount of Early Pension determined above under `Subsection
(a) of this Section, or the amount of any optional form of Pension payable in lieu thereof to a
retired Employee or his contingent Beneficiary, shall be subject to annual cost -of- living
adjustments in the same manner as provided in Subsection 5.1(b), except that no such adjustment
shall be applicable for any period before the Early Pension payments commence, and for this
V -1
purpose only, the date such payments commence shall be treated as the Employee's Retirement
Date.
5.3 Disability Pension:
(a) Basic Formula: An Employee who meets the requirements for a Disability
Pension shall receive a monthly amount which shall be computed in the same manner as a
Normal Pension, considering his Compensation and Service credited with the Employer prior to
Retirement.
(b) Cost -of- Living Adjustment: If the Cost -of Living Option is elected in the
Joinder Agreement, the monthly amount of Disability Pension determined above under
Subsection (a) of this Section shall be subject to a cost -of- living adjustment in the same manner
as provided in Subsection 5.1(b), except that such adjustment shall not be applicable for any
period before the Disability Pension payments commence, and for this purpose only, the date
such payments commence shall be treated as the Employee's Retirement Date.
5.4 Deferred Vested Pension:
(a) Basic Formula: An Employee who meets the requirements for a Deferred
Vested Pension shall receive a monthly amount which shall be computed in the same manner as
a Normal Pension, considering his Compensation and Service credited with the Employer prior
to the termination of his employment. If payment of a Deferred Vested Pension commences
prior to the Employee's Normal Retirement Date, the amount determined above shall be reduced
by 5% each full year plus 5% pro -rata for the number of months in the period between the date
as of which the Pension begins and Normal Retirement Date.
(b) Cost -of- Living Adjustment: If the Cost -of- Living Option is elected in the
Joinder Agreement, the monthly amount of Deferred Vested Pension determined above under
Subsection (a) of this Section shall be subject to a cost -of- living adjustment in the same manner
as provided in Subsection 5.1(b), except, that such adjustment shall not be applicable for any
period before the Deferred Vested Pension payments commence, and for this purpose only, the
date such payments commence shall be treated as the Employee's Retirement Date.
5.5 Accrued Credits and Vested Benefits Preserved: The adoption of a new Joinder
Agreement by an Employer shall not operate to exclude, diminish, limit, or restrict the amount,
payments or continuation of payments of benefits accrued up to the Effective Date of the most
recent Joinder Agreement. The amount of such Accrued Pension benefits, if any, in the course
of payment immediately prior to such date, shall be continued under the provisions of such
Previous Plan, in the same manner and amounts, subject to the provisions of the Retiree Plan
Improvement Option in the Joinder Agreement.
V -2
ARTICLE VI.
Severance and Death Benefits
6.1 Severance Benefit: Upon termination of an Employee's employment with the Employer
prior to his Retirement, for a reason other than death, his contributions to the Fund shall cease
and he shall be entitled to receive a Severance Benefit equal in amount to the Employee's
Contribution Accumulation, which shall be in lieu of all other benefits under this Plan. Payment
of such benefit shall be made in a lump sum as soon as administratively feasible after the date of
termination of the Employee's employment and the Employee's request for payment. If such
termination of employment occurs after the Employee has met the requirements for Deferred
Vested Pension, he may receive in lieu of such Contribution Accumulation, the Pension for
which he is eligible under the provisions of Article IV, unless the Employee elects to receive
such Contribution Accumulation.
If any benefit of any other kind is paid under this Plan to or on behalf of an Employee, no
Severance Benefit shall be paid, but shall be deemed to have been included in the value of the other
benefit, unless the total of such other benefit payments finally made shall be less than his
Contribution Accumulation at the time of the Employee's termination of employment, in which
case the difference shall be paid to the terminated Employee if living, or if deceased, to his
Beneficiary.
6.2 Death Prior to Commencement of Pension: Upon the death of an active Employee or a
retired Employee prior to the date fixed for commencement of his Pension payments, the
Beneficiary designated by the Employee or retired employee shall be paid a Death Benefit in the
form of a Pension unless a spouse's pension becomes payable under Section 6.4.
(a) Basic Formula: Subject to the further provisions of Subsection (b) of this
Section 6.2, the amount of the Death Benefit Pension shall be equal to fifty percent (50 %) of the
monthly amount of the Normal Pension, as determined in Section 5.1 which the deceased
Employee had accrued at the time of his death considering the Employee's Compensation and
Service with the Employer prior to the date of his death. Payment of the Death Benefit Pension
under this Subsection shall commence as of the first day of the month coincident with or next
following the Employee's death. The last payment shall be made upon completion of the
number of monthly payments in the aggregate as elected in Section 7 of the Joinder Agreement.
Notwithstanding the foregoing, if any spouse's Pension becomes payable under Section 6.4, or if
any optional Pension was elected by such a retired Employee, and becomes effective under
Article VII, no such Death Benefit Pension under this Section 6.2 shall be paid at that time. The
terms of such Spouse's Pension or optional Pension as the case may be; shall control payments
after such death and the Death Benefit Pension provided for under this Section shall be thereby
canceled or inapplicable, except that upon the death of the spouse or the contingent Beneficiary,
his estate shall be paid the excess, if any, of the Employee's Contribution Accumulation as of the
date the Pension commenced or as of the date of death, if earlier, over the sum of the benefit
payments other than payments derived from Disability, previously received by the spouse or the
contingent Beneficiary.
(b) Cost -of- Living Adjustment: If the Cost -of- Living Option is elected in the
Joinder Agreement, the monthly amount of Death Benefit Pension determined above under
VI -1
Subsection (a) of this Section 6.2 or the amount of any optional form of Pension payable in lieu
thereof to the Beneficiary entitled thereto, shall be subject to a cost -of- living adjustment in the
same manner as provided in Subsection 5.1(b).
6.3 Death After Commencement of Pension:
(a) Normal Pension, Early Pension or Deferred Vested Pension: Upon the death
of a retired Employee after the date fixed for commencement of his Normal Pension payments or
Early Pension payments, Deferred Vested Pension payments as the case may be, and before he
has received the number of monthly payments elected in Section 7 of the Joinder Agreement, his
Beneficiary shall be entitled to a Death Benefit to be provided in the form of a Pension.
(1) Basic Formula: Subject to the further provisions of Subsection
(a)(2) of this Subsection 6.3(a), the amount of such Death Benefit Pension shall be equal to
the monthly amount of Normal Pension, Early Pension or Deferred Vested Pension which
the deceased retired Employee was eligible for or receiving at the time of his death.
Payment of such Death Benefit Pension shall commence as of the first day of the month
coincident with or next following the retired Employee's date of death. The last payment
shall be made upon the completion of the number of monthly payments in the aggregate as
elected in Section 7 of the Joinder Agreement to the retired Employee and the Beneficiary, if
living, or if deceased, the estate of the Beneficiary. This Death Benefit Pension shall not be
in addition to, but shall be one and the same as the continuation of Pension as provided in
Section 4.1, Section 4.2, or Section 4.4, as the case may be. However, no such Death
Benefit shall be paid but shall be canceled and inapplicable, if an optional form of payment
is elected and becomes effective under Article VII hereof.
(2) Cost -of- Living Adjustment: If the Cost -of- Living Option is elected
in the Joinder Agreement, the monthly amount of Death Benefit Pension determined -above
under Subsection (a)(1) of this Section 6.3 or the amount of any optional form of Pension
payable in lieu thereof to the Beneficiary or estate entitled thereto, shall be subject to a cost -
of- living adjustment in the same manner as provided in Subsection 5.1(b).
(b) Disability Pension: Upon the death of a retired Employee who was unmarried or
legally separated from his or her spouse, after the date fixed for commencement of his Disability
Pension payments and before he has received a total of the number of monthly Pension payments
as elected in Section 7 of the Joinder Agreement, and before the cessation of his Disability if
such death occurs prior to his Normal Retirement Date, his Beneficiary shall be entitled to a
Death Benefit to be provided in the form of a Pension.
(1) Basic Formula: Subject to the further provision of Subsection (b)(2) of this
Section 6.3(b), the amount of such Death Benefit Pension shall be equal to the monthly amount of
Disability Pension which the deceased retired Employee was eligible for or receiving at the time of
his death. Payment of such Death Benefit Pension shall commence as of the first day of the month
coincident with or next following the retired Employee's date of death. The last payment shall be
made upon the completion of the number of monthly payments in the aggregate as elected in
Section 7 of the Joinder Agreement to the retired Employee and the Beneficiary, if living, or if
deceased, to the estate of the Beneficiary.
VI -2
If the death of such retired Employee occurs after the cessation of his Disability and before
his Normal Retirement Date, and the total Disability Pension payments he had received was less
than his Contribution Accumulation as of the date of commencement of payments of such Disability
Pension, or as of the date of his death, if earlier, then his Beneficiary shall be entitled to a Death
Benefit. The amount of such Death Benefit shall be the excess of the retired Employee's said
Contribution Accumulation over the sum of such Pension payments, if any, previously received by
the retired Employee. Such Death Benefit shall be paid in cash in a single sum within 30 days after
the date of death.
If the retired Employee was married and not legally separated from his or her spouse at the
time of death, the applicable Death Benefit shall be that as provided in Section 6.4(b).
(2) Cost -of- Living Adjustment: If the Cost -of- Living Option is elected in the
Joinder Agreement, the monthly amount of Death Benefit Pension determined above under
Subsection (b)(1) of this Section 6.3 shall be subject to a cost -of- living adjustment in the same
manner as provided in Section 5.1(b).
6.4 Spouse's Pension:
(a) In- Service Death:
(1) Eligibility Requirements: The surviving spouse of a deceased Employee
shall be eligible for a spouse's Pension with payments commencing on the first day of the month
coinciding with or next following the Employee's date of death and payable for the spouse's
lifetime, or until the spouse's remarriage, provided that the Employee, as of the date of his or her
death, (a) was continuing in the active Service of the Employer, (b) had met the 100% vesting
requirement, (c) had not retired or begun receiving his or her Normal Pension, and (d) was not
legally separated from the surviving spouse.
(2) Amount of Spouse's Pension: A surviving spouse who meets the eligibility
requirements under Subsection (a)(1) of Section 6.4 above shall receive a monthly amount of
spouse's Pension equal to fifty percent (50 %) of the amount determined in Section 5.1 for a Normal
Pension considering the Employee's Compensation and Service with the Employer to the date of his
death. However, if the surviving spouse is more than ten years younger than the retired Employee
on the date of his death, the Spouse's Pension payable under this Subsection shall be reduced by one
percent (1 %) for each such year of age difference in excess of ten (10) years to compensate for the
longer period of expected payments.
(3) Cost -of- Living Adjustment: If the Cost-of-Living Option is elected in the
Joinder Agreement, the monthly amount of spouse's Pension determined above under Subsection
(a)(2) of this Section 6.4 shall be subject to a cost -of- living adjustment in the same manner as
provided in Subsection 5.1(b).
(b) Post bisability Retirement Death: The surviving spouse of a deceased, retired
Employee, who was receiving or was entitled to receive a Disability Pension on the date of his or
her death and who had received less than the number of monthly payments as elected in Section
7 of the Joinder Agreement of such Disability Pension, shall be eligible for a Spouse's Pension.
VI -3
(1) Basic Formula: Subject to the further provisions of Subsection (b)(2) of
this Section 6.4, the amount of such Spouse's Pension shall be equal to the monthly amount of
Disability Pension which the deceased retired Employee was eligible for or receiving at the time of
his death. Payment of such Spouse's Pension shall commence as of the first day of the month
coincident with or next following the retired Employee's date of death. The last payment shall be
made upon the completion of the number of monthly payments in the aggregate as elected in
Section 7 of the Joinder Agreement to the retired Employee and the surviving spouse, or if the
surviving spouse dies before such completion of payments, the remaining payments shall be made
to the estate of the deceased spouse.
(2) Cost -of- Living Adjustment: If the Cost -of- Living Option is elected in the
Joinder Agreement, the monthly amount of spouse's Pension determined above under Subsection
(b)(1) of this Section 6.4 shall be subject to a cost -of- living adjustment in the same manner as
provided in Section 5.1(b).
(c) Post - Termination Death Benefit After Deferred Vested Termination: The
surviving spouse of a deceased, retired Employee, who was entitled to receive a Deferred Vested
Pension but had not yet received any payments on the date of his or her death, shall be eligible
for a Spouse's Pension. Such Pension will commence on the first day of the month coinciding
with or next following the later of. (i) the Employee's date of death or (ii) the earliest date of
which the Employee could have begun receiving payments in accordance with Section 5.4. The
last payment shall be made upon the death or remarriage of the surviving spouse. A final death
benefit is the excess, if any, of the Employee's Contribution Accumulation over the sum of the
payments made to the Spouse.
(1) Basic Formula: Subject to the further provisions of Subsection (c)(2) of
this Section 6.4, the amount of such Spouse's Pension shall be equal to fifty percent (50 %) of the
Deferred Vested Pension to which the deceased, retired Employee was entitled to receive
commencing on his or her Normal Retirement Date and reduced in accordance with Section 5.4 for
the period between the date the Pension begins and the Normal Retirement Date. However, if the
surviving spouse is more than ten (10) years younger than the retired employee on the date of his
death, the Spouse's Pension payable under this Subsection shall be reduced by one percent (1 %) for
each such year of age difference in the excess of ten (10) years to compensate for the longer period
of expected payments.
(2) Cost -of- Living Adjustment: If the Cost -of- Living Option is elected in the
Joinder Agreement, the monthly amount of spouse's Pension determined above under Subsection
(c)(1) of this Section 6.4 shall be subject to a cost -of- living adjustment in the same manner as
provided in Subsection 5.1(b).
6.5 Designation of Beneficiary: Each active or retired Employee may designate a primary
Beneficiary or Beneficiaries and, in addition, may name a contingent Beneficiary or
Beneficiaries to receive any benefit that may become payable under Article VI hereunder by
reason of his death. If an Employee designates more than one Beneficiary, each shall share
equally unless the Employee specifies a different allocation or preference. Such designation
shall be made upon forms furnished by the Employer and may be revoked or changed at any tune
and from time to time without notice to any Beneficiary, and shall not be effective unless and
VI -4
until filed with the Committee. If an Employee fails to designate a Beneficiary, or if no
designated Beneficiary survives the Employee, the Death Benefit shall be paid to the Employee's
spouse, if living, or otherwise, to the estate of the Employee. Neither the Employer, the Board of
Trustees, nor the Fund shall be named as a Beneficiary.
For the purpose of this Plan, the production of a certified copy of the death certificate of any
Employee or other person shall be sufficient evidence of death, and the Committee shall be fully
protected in relying thereon. In the absence of such proof, the Committee may rely upon such other
evidence of death as it deems necessary or advisable.
6.6 Severance of Death Benefits for Former Employees: If an Employee's Service with
the Employer terminates, but his Service continues by virtue of his employment with a
Municipality other than the Employer, he, his spouse or other Beneficiaries shall only be then, or
later become, entitled to and limited to such rights, benefits and options of any kind, under this,
if any, in the amounts and on the terms and conditions, as provided in Article VIII, Employment
Transfers.
VI -5
ARTICLE VII.
Optional Retirement Benefits
7.1 Joint and Survivor Options: By filing a timely application with the Authorized Agent,
a married Employee not legally separated from his or her spouse may designate such spouse as
his contingent pensioner and elect ,to receive a Pension payable in accordance with one of the
following Actuarially Equivalent options in lieu of the Pension to which he may otherwise
become entitled upon Retirement.
Option A - Joint and 100% Survivor Annuity. A reduced Pension payable monthly
during the lifetime of the Employee with the provision that 100% of such monthly benefit shall be
payable to the Employee's contingent pensioner in monthly installments commencing on the first
day of the month following the month in which the Employee died and continuing thereafter during
the remaining lifetime of such contingent pensioner through the last monthly payment on or prior to
the contingent pensioner's death. The reduced Pension payable to the Employee shall be eighty -
three percent (83 %) plus or minus one percent (1%) for each year to the nearest year that the
contingent pensioner is older or younger respectively than the Employee multiplied by the Pension
payable to the Employee in the normal form.
Option B - Joint and 50% Survivor Annuity. An adjusted Pension payable monthly
during the lifetime of the Employee with the provision that fifty percent (50 %) of such monthly
benefit shall be payable to such Employee's contingent pensioner in monthly installments
commencing on the first day of the month following the month in which the Employee dies and
continuing thereafter during the remaining lifetime of the contingent pensioner through the last
monthly payment on or prior to such contingent pensioner's death. The reduced Pension payable to
the Employee shall be ninety -two percent (92 %) plus or minus one -half of one percent (0.5 %) for
each year to the nearest year that his contingent pensioner is older or younger respectively than the
Employee multiplied by the Pension payable to the Employee in the normal form.
Option C - Joint and 66 2/3% Survivor Annuity. An adjusted Pension payable for the
joint lifetime of the Employee and his contingent pensioner, and upon the death of either, payments
in the amount of sixty -six and two - thirds percent (66 2/3 %) of such adjusted Pension shall be
continued to the contingent pensioner during the contingent pensioner's lifetime through the last
monthly payment on or prior to such contingent pensioner's death. The reduced Pension payable to
the Employee shall be ninety -three percent (93 %) plus or minus seven - tenths of one percent (0.7 %)
for each year to the nearest year that the contingent pensioner is older or younger respectively than
the Employee multiplied by the Pension payable to the Employee in the normal form.
7.2 Other Forms of Payment: If the Employer has elected in the Joinder Agreement to
provide additional optional benefit forms, the Committee may, in its sole discretion, at the
request of an Employee (or contingent pensioner), direct that any benefit provided by the Plan be
paid in one of the following forms, provided that payments to the Employee (or contingent
pensioner) have not yet commenced and that payments in such other form shall be the Actuarial
Equivalent of the benefit otherwise payable. The optional forms of payment are as follows:
VII -1
Option D - Insured Annuity. Under this form, the payee will receive a nontransferable
annuity purchased from a duly licensed insurance company under either an individual or group
annuity contract. Such annuity may be in any of the forms otherwise payable hereunder.
Option E - Periodic Installments. Under this form, the payee will receive periodic
installments over a period of years not to exceed life expectancy or the life expectancy of the payee
and his designated Beneficiary. If his death occurs after payments commenced, any remaining
installments will be paid to his designated Beneficiary, or Beneficiaries, either periodically over the
remainder of the period originally established for the payee or in a lump sum, as selected by the
Committee. No future Cost -of Living adjustments will be made or considered in calculating the
payment under this optional form.
Option F - Lump -Sum Payment. Under this form, the payee will receive a single sum
payment in cash. No future Cost -of- Living adjustments will be made or considered in calculating
the payment under this optional form.
Option G — Combination. Under this form, the payee will receive a combination of Option
F and Option D or Option E, as selected by the payee.
The calculation of amounts payable under Option E and Option F above shall be based on
actuarial tables contained in the Appendix. The underlying interest rate shall be seven and one -half
percent (7'/2 %).
Annuity contracts purchased under Option D above must be priced on a basis deemed not to
be discriminatory under Title VII of the Civil Rights Act.
The Committee shall, if it deems appropriate, require an Employee (or contingent pensioner)
to submit evidence of good health as a condition to receipt of any such form of payment,
particularly any lump sum payment.
If a Pension payable under this Plan is less than fifty dollars ($50.00) per month, the
Committee may direct that, in lieu of such Pension, the Actuarial Equivalent thereof shall be paid in
a lump sum, or in a series of uniform monthly, quarterly, or annual amounts for life or for a
designated period of time.
7.3 Restrictions on Optional Forms: If payments have not yet commenced to an
Employee, an Employee may elect, change, or revoke an option if his election, change, or
revocation is filed in writing with the Authorized Agent. However, an election to receive
benefits in one of the forms described in Section 7.2 requires Committee approval. In the event
an Employee dies after he has begun to receive benefits under this Plan, his beneficiary or
contingent pensioner shall not be entitled to change the form of payment of the benefit. An
Employee receiving a Disability Pension is not eligible for any of the options. Notwithstanding
anything in this Section to the contrary, an Employee may elect any option without the approval
of the Authorized Agent at any time within the six month period next following the adoption of
this Plan by the Employer, provided that the Employee is in the employ of the Employer at the
time the election is made.
VII -2
An election made pursuant to this Article shall become inoperative in the event that no
contingent pensioner is surviving upon the Employee's Retirement Date.
If an Employee who makes an election pursuant to the requirements of this Section
continues in the Employer's employ after his Normal Retirement Date, no Pension payments shall
be made during the period of continued employment. If the Employee dies during such continued
employment and the contingent pensioner survives him, the election shall become operative so that
the contingent pensioner shall receive a Pension in accordance with the option elected commencing
on the first day of the month coinciding with or next following the death of the Employee. In the
event the contingent pensioner predeceases the Employee during such continued employment, the
election shall not become operative.
7.4 Other Benefits Canceled by Option: Any Contribution Accumulation, Pension,
Severance, Death, or other benefit that would otherwise have become payable under this Plan
shall be canceled and superseded by an option elected under Section 7.1 or any other form of
payment elected under Section 7.2 as of the date such option or other form of payment
commences.
7.5 Options by Former Employee: The provisions of this Article VII shall be applicable to
any former Employees entitled thereto under the provisions of Article VIII- Employment
Transfers.
7.6 Rollover to Another Plan or IRA: Notwithstanding any provision of the Plan to the
contrary that would otherwise limit a Distributee's election under this Section, a Distributee may
elect, at the time and in the manner prescribed by the Committee, to have any portion of an
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the
Distributee in a Direct Rollover. The Committee shall establish procedures for implementing
such Direct Rollover distribution.
(a) Definitions. For purposes of this Section 7.6, the following definitions shall
apply:
(i) "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 Section 401(a)(9) of the Code; and the portion of
any distribution that is not includable in gross income. With respect to distributions made after
December 31, 2001, a portion of a distribution shall not fail to be an eligible rollover distribution
merely because the portion consists of after -tax employee contributions which are not includible in
gross income. However, such portion may be paid only to an individual retirement account or
annuity described in Section 408(a) or (b) of the Code, or to a qualified defined contribution plan
described in Section 401(a) or 403(a) of the Code that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such distribution which is includible in
gross income and the portion of such distribution which is not so includible.
VII -3
(ii) "Eligible Retirement Plan ": An "Eligible Retirement Plan" is an individual
retirement account described in Section 408(a) of the Code, an individual retirement annuity
described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or
a qualified trust described in Section 401(a) of the Code, that accepts the Distributee's Eligible
Rollover Distribution. However, in the case of an Eligible Rollover Distribution to the surviving
spouse or a Participant's surviving Beneficiary (effective January 1, 2007), an Eligible Retirement
Plan is an individual retirement account or individual retirement annuity. With respect to
distributions made after December 31, 2001, an eligible retirement plan shall also mean an annuity
contract described in Section 403(b) of the Code and an eligible plan under Section 457(b) of the
Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality
of a state or political subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this Plan. The definition of eligible retirement plan shall also apply
in the case of a distribution to a surviving spouse or a Participant's surviving Beneficiary (effective
January 1, 2007), or to a spouse or former spouse who is the alternate payee under a qualified
domestic relation order, as defined in Section 414(p) of the Code. In the case of a nonspouse
beneficiary, the direct rollover may be made only to an individual retirement account or annuity
described in Code Section 408(a) or 408(b) ( "IRA ") that is established on behalf of the designated
Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Code Section
402(c)(11). Further, the determination of any required minimum distribution under Code Section
401(a)(9) that is ineligible for rollover shall be made in accordance with IRS Notice 2007 -7, Q &A 17
and 18, 2007 -5 I.R.B. 395.
(iii) "Distributee ": A "Distributee" includes a Participant or former Participant.
In addition, the Participant's spouse or former Participant's surviving spouse or surviving
Beneficiary (effective January 1, 2007) and the Participant's or former Participant's spouse or
former spouse who is the alternate payee under a qualified domestic relations order, as defined in
Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former
spouse.
(iv) "Direct Rollover ": A "Direct Rollover" is a payment by the Plan directly to
the Eligible Retirement Plan specified by the Distributee.
7.7 Minimum Distribution Requirements.
(a) General Rules.
(i) Effective Date. The provisions of this Section will apply for purposes of
determining required minimum distributions for calendar years beginning with the 2003 calendar
year.
(ii) Precedence. The requirements of this Section will take precedence over
any inconsistent provisions of the Plan.
(iii) Requirements of Regulations Incorporated. All distributions required
under this Section will be determined in accordance with Section 401(a)(9) of the Internal
Revenue Code, including the incidental death benefit requirement of Section 401(a)(9)(G), and
the Income Tax Regulations thereunder.
VII -4
(iv) TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Section, other than Subsection (iii), distributions may be made under a
designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax
Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to
Section 242(b)(2) of TEFRA.
(b) Time and Manner of Distribution.
(i) Required Beginning Date. The Participant's entire interest will be
distributed, or begin to be distributed, to the Participant no later than the Participant's required
beginning date.
(ii) Death of Participant Before Distributions Begin. If the Participant dies
before distributions begin, the Participant's entire interest will be distributed, or begin to be
distributed, no later than as follows:
(1) If the Participant's surviving spouse is the Participant's sole
designated beneficiary, then, except as provided in the adoption
agreement, distributions to the surviving spouse will begin by December
31 of the calendar year immediately following the calendar year in which
the Participant died, or by December 31 of the calendar year in which the
Participant would have attained age 70'/2, if later.
(2) If the Participant's surviving spouse is not the Participant's sole
designated beneficiary, then, distributions to the designated beneficiary
will begin by December 31 of the calendar year immediately following the
calendar year in which the Participant died.
(3) If there is no designated beneficiary as of September 30 of the year
following the year of the Participant's death, the Participant's entire
interest will be distributed by December 31 of the calendar year containing
the fifth anniversary of the Participant's death.
(4) If the Participant's surviving spouse is the Participant's sole
designated beneficiary and the surviving spouse dies after the Participant
but before distributions to the surviving spouse begin, this Subsection
(b)(ii), other than Subsection (b)(ii)(1), will apply as if the surviving
spouse were the Participant.
For purposes of this Subsection (ii) and Subsection (e), distributions are considered to
begin on the Participant's required beginning date (or, if Subsection (b)(ii)(4) applies, the
date distributions are required to begin to the surviving spouse under Subsection
(b)(ii)(1)). If annuity payments irrevocably commence to the Participant before the
Participant's required beginning date (or to the Participant's surviving spouse before the
date distributions are required to begin to the surviving spouse under Subsection
(b)(ii)(1), the date distributions are considered to begin is the date distributions actually
commence.
VII -5
(iii) Form of Distribution. Unless the Participant's interest is distributed in
the form of an annuity purchased from an insurance company or in a single sum on or before the
required beginning date, as of the first distribution calendar year distributions will be made in
accordance with Subsections (c), (d) and (e) of this Section. If the Participant's interest is
distributed in the form of an annuity purchased from an insurance company, distributions
thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code
and the Treasury regulations. Any part of the Participant's interest which is in the form of an
individual account described in Section 414(k) of the Code will be distributed in a manner
satisfying the requirements of Section 401(a)(9) of the Code and the Treasury regulations that
apply to individual accounts.
(c) Determination of Amount to be Distributed Each Year.
(i) General Annuity_Requirements. If the Participant's interest is paid in the
form of annuity distributions under the Plan, payments under the annuity will satisfy the
following requirements:
(1) the annuity distributions will be paid in periodic payments made at
intervals not longer than one year;
(2) the distribution period will be over a life (or lives) or over a period
certain not longer than the period described in Section (d) or (e);
(3) once payments have begun over a period certain, the period certain
will not be changed even if the period certain is shorter than the maximum
permitted;
(4) payments will either be nonincreasing or increase only as follows:
a by an annual percentage increase that does not exceed the
annual percentage increase in a cost -of- living index that is
based on prices of all items and issued by the Bureau of Labor
Statistics;
b to the extent of the reduction in the amount of the
Participant's payments to provide for a survivor benefit upon
death, but only if the beneficiary whose life was being used to
determine the distribution period described in Section (d) dies
or is no longer the Participant's beneficiary pursuant to a
qualified domestic relations order within the meaning of
Section 414(p);
c to provide cash refunds of employee contributions upon the
` Participant's death; or
d to pay increased benefits that result from a plan amendment.
VII -6
(ii) Amount - Required to be Distributed by Required Beginning Date. The
amount that must be distributed on or before the Participant's required beginning date (or, if the
Participant dies before distributions begin, the date distributions are required to begin under
Subsection (b)(ii)(1) or (2)) is the payment that is required for one payment interval. The second
payment need not be made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Payment intervals are the periods for which payments are
received, e.g., bi- monthly, monthly, semi - annually, or annually. All of the Participant's benefit
accruals as of the last day of the first distribution calendar year will be included in the calculation
of the amount of the annuity payments for payment intervals ending on or after the Participant's
required beginning date.
(iii) Additional Accruals After First Distribution Calendar Year. Any
additional benefits accruing to the Participant in a calendar year after the first distribution
calendar year will be distributed beginning with the first payment interval ending in the calendar
year immediately following the calendar year in which such amount accrues.
(d) Requirements For Annuity Distributions That Commence During
Participant's Lifetime.
(i) Joint Life Annuities Where the Beneficiary Is Not the Participant's
Spouse. If the Participant's interest is being distributed in the form of a joint and survivor
annuity for the joint lives of the Participant and a nonspouse beneficiary, annuity payments to be
made on or after the Participant's required beginning date to the designated beneficiary after the
Participant's death must not at any time exceed the applicable percentage of the annuity payment
for such period that would have been payable to the Participant using the table set forth in Q &A-
2 of Section 1.401(a)(9) -6T of the Treasury regulations. If the form of distribution combines a
joint and survivor annuity for the joint lives of the Participant and a nonspouse beneficiary and a
period certain annuity, the requirement in the preceding sentence will apply to annuity payments
to be made to the designated beneficiary after the expiration of the period certain.
(ii) Period Certain Annuities. Unless the Participant's spouse is the sole
designated beneficiary and the form of distribution is a period certain and no life annuity, the
period certain for an annuity distribution commencing during the Participant's lifetime may not
exceed the applicable distribution period for the Participant under the Uniform Lifetime Table
set forth in Section 1.401(a)(9) -9 of the Treasury regulations for the calendar year that contains
the annuity starting date. If the annuity starting date precedes the year in which the Participant
reaches age 70, the applicable distribution period for the Participant is the distribution period for
age 70 under the Uniform Lifetime Table set forth in Section 1.401(a)(9) -9 of the Treasury
regulations plus the excess of 70 over the age of the Participant as of the Participant's birthday in
the year that contains the annuity starting date. If the Participant's spouse is the Participant's
sole designated beneficiary and the form of distribution is a period certain and no life annuity,
the period certain may not exceed the longer of the Participant's applicable distribution period,
as determined under this Section (d)(ii), or the joint life and last survivor expectancy of the
Participant and the Participant's spouse as determined under the Joint and Last Survivor Table
set forth in Section 1.401(a)(9) -9 of the Treasury regulations, using the Participant's and
spouse's attained ages as of the Participant's and spouse's birthdays in the calendar year that
contains the annuity starting date.
VII -7
(e) Requirements For Minimum Distributions After the Participant's Death.
(i) Death After Distributions Begin. If the Participant dies after distribution
of his or her interest begins in the form of an annuity meeting the requirements of this Article,
the remaining portion of the Participant's interest will continue to be distributed over the
remaining period over which distributions commenced.
(ii) Death Before Distributions Begin.
a. Participant Survived by Designated Beneficiary. If the
Participant dies before the date distribution of his or her interest begins and there
is a designated beneficiary, the Participant's entire interest will be distributed,
beginning no later than the time described in Subsection (b)(ii)(1) or (2), over the
life of the designated beneficiary or over a period certain not exceeding:
(1) unless the annuity starting date is before the first
distribution calendar year, the life expectancy of the designated
beneficiary determined using the beneficiary's age as of the beneficiary's
birthday in the calendar year immediately following the calendar year of
the Participant's death; or
(2) if the annuity starting date is before the first distribution
calendar year, the life expectancy of the designated beneficiary determined
using the beneficiary's age as of the beneficiary's birthday in the calendar
year that contains the annuity starting date.
b. No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no designated beneficiary as of September 30 of
the year following the year of the Participant's death, distribution of the
Participant's entire interest will be completed by December 31 of the calendar
year containing the fifth anniversary of the Participant's death.
C. Death of Surviving Spouse Before Distributions to Surviving
Spouse-Begin. If the Participant dies before the date distribution of his or her
interest begins, the Participant's surviving spouse is the Participant's sole
designated beneficiary, and the surviving spouse dies before distributions to the
surviving spouse begin, this Section (e) will apply as if the surviving spouse were
the Participant, except that the time by which distributions must begin will be
determined without regard to Subsection (b)(ii)(1).
(f) Definitions.
(i) Designated Beneficiary. The individual who is designated as the
beneficiary under Sectioh 6.5 of the Plan and is the designated beneficiary under Section
401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9) -4 of the Treasury regulations.
(ii) Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's death, the first
VII -8
distribution calendar year is the calendar year immediately preceding the calendar year which
contains the Participant's required beginning date. For distributions beginning after the
Participant's death, the first distribution calendar year is the calendar year in which distributions
are required to begin pursuant to Subsection (b)(ii).
(iii) Life Expectancy. Life expectancy as computed by use of the Single Life
Table in Section 1.401(a)(9) -9 of the Treasury regulations.
(iv) Required Beginning_Date. The April 1 of the calendar year following the
later of the calendar year in which the Participant attains age 70' /z, or if later, retires.
VII -9
ARTICLE VIII.
Employment Transfers
8.1 Transfers From This Plan:
(a) To Another Category With This Employer: If an Employee is employed by
the Employer under this Plan and is transferred to employment with this Employer but under
another department, classification or category, so that he is no longer eligible to participate in
this Plan, such participation shall thereupon cease; his benefits shall remain in the Fund (unless
such Employee is eligible for his Normal Pension in accordance with Section 4.1); but he will
not continue to accrue service for the purposes of benefit accruals or additional vesting credit for
benefits under this Plan.
(b) To Another Municipality: If an Employee's employment by the Employer
under this Plan is terminated by virtue of his transfer to employment with another Municipality,
his participation in this Plan shall thereupon cease and he shall be subject to the following rules
and requirements relating to this Plan and his right and benefits hereunder:
(1) If he is eligible for a Pension under this Plan as of the date of such
employment transfer, such transfer shall be treated as his Retirement and thereupon he shall be
entitled to his Pension; or
(2) If he is not eligible for a Pension under this Plan as of the date of such
employment transfer, and he is, immediately upon such transfer of employment, covered by the
retirement plan under which such other Municipality participates in the Oklahoma Municipal
Retirement Fund, his Contribution Accumulation shall remain in the Fund and will continue to
accrue interest, and he will continue to accrue Service for the purpose of meeting eligibility
requirements for benefits under this Plan, but shall not be entitled to credit for Service while not a
member under this Plan for the purpose of computing the amount of any benefit under this Plan and
upon so meeting such eligibility requirements for benefits, he or his Beneficiaries shall be entitled to
such benefits.
8.2 Transfers to This Plan:
(a) From Another Category with This Employer: Effective for Plan Years
beginning on or after July 1, 1998, if a person becomes an Employee and a Participant under this
Plan immediately upon his transfer from full -time, regular employment with this Employer under
another department, classification or category where he is ineligible for membership only
because of the type of such employment, his Service accrued by virtue of such prior employment
shall not be counted in determining his eligibility for benefits hereunder and not in computing
the amount of such benefits, and he shall also be subject to all the other provisions of this Plan,
provided such transfer occurred prior to the adoption of this Plan. Provided, however, for Plan
Years ending prior to July 1, 1998, the rules of the prior Plan document shall apply with respect
to such transfers.
(b) From Another Municipality: If a person becomes an Employee and a
Participant under this Plan immediately upon his transfer from full -time, regular employment
VIII -1
with a Municipality other than this Employer, his Service accrued by virtue of such prior
employment shall be counted in determining his eligibility and vesting for benefits hereunder,
but not in computing the amount of such benefits, and he shall also be subject to all the other
provisions of this Plan. An Employee's eligibility for membership under this Plan will be
determined by applying the eligibility requirements in the Joinder Agreement as though the date
his credited service from the other Municipality began was his date of employment with this
Employer. Provided, however, no such Service shall be counted if the Participant was not 100%
vested in the other Municipality's qualified retirement plan and the Participant received a
distribution of his benefit under such Plan unless the distribution of his benefit was paid after
becoming vested with this Employer.
(c) Previously Fully Vested With Another Municipality: With respect to a
Participant who was previously 100% vested in any other Municipality's qualified retirement
plan prior to becoming a Participant in this Plan, such Participant's "Service" for purposes of
determining years of service for eligibility and vesting under this Plan shall include the
Participant's last continuous period during which the Participant was an employee of the other
Municipality.
8.3 Notice of Transfers: Immediately after any transfer of employment referred to in
Sections 8.1 or 8.2, the transferred Employee shall give written notice of such transfer to the
Authorized Agent on a form furnished by the Authorized Agent. Such Employee shall not be
penalized, however, for failure to give such notice. The Authorized Agent shall give immediate
notice in writing of such transfers to the Committee.
VIII -2
ARTICLE IX.
Administration
9.1 Administration: The Plan shall be administered by the Committee which is hereby
created and established and which shall be composed of the members of the City Council of the
Employer. The duties of the Committee shall be performed without compensation other than the
compensation, if any, which they receive as officers of the Employer unless additional
compensation is specifically provided for by action of the City Council. Any usual and
reasonable expenses incurred by the Committee in the administration of this Fund and Plan shall
be paid by the Employer.
(a) Committee: The Committee shall have such powers as may be necessary to
discharge its duties hereunder and under the document creating the Oklahoma Municipal
Retirement Fund, and under the contract for the pooling of the Fund with similar funds of other
Municipalities. Such powers shall include but not be limited to the following powers and duties:
(1) to delegate to, specify, direct, and supervise the performance of duties of the
Authorized Agent, as the agent of the Employer and Committee in matters relating to the Plan, and
the Fund, including but not limited to, the duties set forth below in Subsection 9.1(b) and including
any duties of the Employer under the Plan, or as set forth in this Subsection 9.1(a);
(2) acting by direction to the Authorized Agent to file a petition for nomination,
or otherwise nominate, and cast the ballot for the election of Trustees of the Oklahoma Municipal
Retirement Funds;
(3) to construe and interpret the Plan and resolve any ambiguities with respect to
any of the terms and provisions thereof as written and as applied to the operation of the Plan;
(4) decide all questions of eligibility and determine the amount, manner and
time of payment of any benefits hereunder;
(5) to prescribe procedures to be followed by Employees in filing applications
for benefits;
(6) to make a determination as to the right of any person to a benefit and to
afford any person dissatisfied with such determination the right to a hearing thereon;
(7) to receive from the Employer, the Trustees, the Trust Service Provider and
the Authorized Agent, such information as shall be necessary for the proper administration of the
Plan;
(8) to prepare and distribute, in such manner as it determines to be appropriate,
information explaining the Plan;
(9) to furnish the Employer, upon request, such annual reports with respect to
the administration of the Plan as are reasonable and appropriate;
IX -1
(10) to receive and review the valuation report and certification of the Plan,
prepared annually by the actuarial firm, and on the basis thereof to certify to the Employer's
budgetary authority an appropriate contribution rate in time for the incorporation, when necessary,
of the resulting costs in the budget, and make timely appropriations therefor;
(11) to receive and review reports from the auditor appointed by the Trustees, the
City Treasurer and City Auditors, of the financial condition of the Fund;
(12) to have full power, to manage and control, the Plan and Fund and to
authorize in writing, all payments from the Fund by written direction of the Authorized Agent, or
otherwise; and
(13) to sue in any court of competent jurisdiction for the enforcement of any
contract, claim or other right, and to defend against or to compromise, settle or otherwise dispose of
any claim or suit against the Employer, the Plan, or the City Treasurer, as Treasurer of the Plan.
(14) to appoint such person or persons as necessary to perform the following:
a. to receive and separately account for, payments, appropriations,
apportionments, allocations, payroll deductions, and any other assets, which are for, or
consist of contributions or assets under the Plan for the Fund, which are made by the
Employer, the Participants, or from any other source;
b, to transfer, remit, pay over and deliver, upon the written direction of
the Authorized Agent, as soon as practicable after his receipt thereof, all such
contributions and assets, to the Oklahoma Municipal Retirement Fund for management
and investment;
C. to keep as evidence and permanent records, all such written
directions of the Authorized Agent for such transfers and disbursements, maintain
accurate accounts and records of such receipts, transfers and disbursements, and keep
such other records and furnish such information and advice to the Employer, the City
Council, the Committee and the Authorized Agent as may be necessary and proper for
the performance of such duties in coordinating the administration and operation of the
Plan;
d. maintain- such records including vital statistics on health, age, sex,
birth, death, Compensation and length of Service of all the Participants of the Employer
or their beneficiaries who are included in the Plan or who are, or may become eligible for
such inclusion, as are necessary for the proper administration of the Plan, and furnish
such information as is requested by the Authorized Agent, or is requested by the
Administrator;
e. notify the Authorized Agent when any Participant is eligible for
Retirement under the Plan; and
f. attend meetings of the Committee while matters pertaining to the
Plan, the Employees or their beneficiaries are under consideration.
IX -2
The Committee shall have no power to waive or fail to apply any requirements of eligibility
for a Pension under the Plan. The Committee may adopt such rules, regulations and actuarial tables
as it deems necessary or desirable to administer the Plan. All such rules, regulations and decisions
shall be uniformly and consistently applied to all Employees in similar circumstances.
Any such rule or decision which is not inconsistent with the provisions of the Plan shall be
conclusive and binding upon all persons affected by it and there shall be no appeal from any ruling
by the Committee which is within its authority.
When making a determination or calculation, the Committee shall be entitled to rely upon
information furnished by the Trustees, the Trust Service Provider, the Employer, the Authorized
Agent, the legal counsel of the Employer, or the actuary for the Plan.
(b) Authorized Agent: An Authorized Agent shall be designated in writing by the
Committee and shall act as the agent of the Employer (but not the agent of the Trustees or the
Trust Service Provider of the Fund) in matters pertaining to the Plan and the Fund, to centralize
in one person the local administration and coordination thereof, and to file payroll and
contribution information, to file claims, forms and applications for Employees, and to advise
Employees, the Employer and the Committee. The Authorized Agent, under the control and
direction of the Committee, shall have such general duties as the Employer and the Committee
may deem necessary and proper for such purposes, which duties shall include but not be limited
to, the following:
(1) to coordinate the deduction of Employee contributions and to see that
Employer and Employee contributions are properly received and forwarded promptly to the Fund
for management and investment;
(2) to forward any communications directed to Employees and Beneficiaries by
the Trustees, the Trust Service Provider or the Fund;
(3) to lend assistance to Employees and Beneficiaries in filing applications for
benefits, and in communicating with the Employer, the Committee and the Trustees or the Trust
Service Provider of the Fund and to forward such communications to the addressees;
(4) to keep the Employer and Committee informed regarding Employer
contribution rates and funds required to meet the costs of the Plan;
(5) to assist the Committee in determining whether or not Employees are
eligible for participation in the Plan;
(6) to certify at the direction of the Committee that an Employee is on an
Authorized Leave of Absence, paid or unpaid; and
(7) to file at the direction of the Committee a petition or nomination, and cast a
ballot for election of Trustees of the Fund.
IX -3
(c) Plan Municipal Counselor: The Committee of the Employer shall appoint the
legal advisor of the Employer and the Committee, and such legal advisor shall represent them in
any legal matters, proceedings, or litigation.
9.2 Bonds: No bond to secure the performance of administrative duties in the operation of
the Plan and the Fund, shall be required of any persons or organizations unless required by law,
or unless required by the Trust indenture establishing Fund, or unless required by the Employer
for any persons or organizations engaged in the administration of the Plan. If such a bond is
required by law, the Trustees or the Employer, the premiums therefor shall be paid as expenses
of the Fund. Any agents, officials of employees of the Employer engaged in the administration
for the Plan shall be covered as to the performance of such administrative duties, by any official
or other bond covering their regular duties otherwise.
9.3 Benefit Payments: All benefits which are to be paid pursuant to the provisions of the
Plan, shall be paid under the direction of the Committee out of the applicable portion of the
Fund, upon written directions of the Committee acting through the Authorized Agent.
9.4 Abandonment of Benefits:
(a) If, anytime following the date either of a Participant or Beneficiary of a deceased
Participant becomes entitled to receive any non - deferred benefits under the Plan, then, if the
whereabouts of such Participant or Beneficiary is unknown, the benefits may be forfeited in certain
limited circumstances as provided hereafter. If the Committee has mailed to the Participant or
Beneficiary notice of the present right to receive benefits, and the Committee mails such notice
again after one year, then, if no claim has been received by the second anniversary of the first
mailing of the notice, the Accounts representing unclaimed Benefits (including those holding
Employee contributions) shall be forfeited.
(b) Each Participant and Beneficiary shall file with the Committee, from time to time in
writing, their post office address and each change of post office address, if any, and the Committee
shall not be obliged to search for or ascertain the whereabouts of any Participant or Beneficiary.
Any communication addressed to a Participant or Beneficiary at their last post office address filed
with the Committee, or if no such address was filed, then at their last post office address as shown
on the Employer's records, shall be binding on the Participant and the Beneficiary for all purposes
of the Plan and Trust.
(c) In the event that the whereabouts of a lost Participant, or lost Beneficiary of a
deceased Participant, ever becomes known to the Committee, and either of such parties makes a
claim for benefits, the Committee shall, if the Plan is in existence, reinstate any Benefits which have
been previously forfeited to satisfy such claim, including any applicable cost -of- living adjustments.
For purposes of this Subsection (c), the limitations under Section 415 of the Code shall not apply.
9.5 Benefits Payable to Incompetents: Any payments due hereunder to a minor or other
person under legal disability may be made, at the discretion of the Committee, (i) to a parent,
spouse, relative by blood or marriage, or (ii) the legal representative of the said person. The
Committee shall not be required to see to the application of any such payment, and the payee's
IX -4
receipt shall be a full and final discharge of all responsibility hereunder of the Employer, the
Committee and the Trustees.
IX -5
ARTICLE X.
Limitations
10.1 Loss of Benefits for Cause: In the event an Employee is discharged because of
embezzlement, fraud, dishonesty, or misappropriation of the Employer's property, and the
reasons for such discharge are confirmed by resolution of the City Council after such Employee
is afforded an opportunity to be heard, neither he, nor his Beneficiary, shall be entitled to receive
any benefit hereunder other than his Contribution Accumulation as of the date of his discharge,
regardless of his age and service on the date of his discharge. Likewise, such benefits to which
any retired Employee or his Beneficiary, or the Beneficiary of a deceased Employee would
otherwise be entitled under this Plan, shall be forfeited upon discovery, even after termination of
employment or death, of any such embezzlement, fraud, dishonesty, or misappropriation of the
Employer's property, by the Employee against the Employer.
10.2 Annual Benefit - General: The following limitations of this Article shall apply in
limitation years beginning on or after July 1, 2007, except as otherwise provided herein.
10.3 Limitation on Benefits:
(a) The Annual Benefit otherwise payable to a Participant under the Plan at any time
shall not exceed the Maximum Permissible Benefit. If the benefit the Participant would
otherwise accrue in a Limitation Year would produce an Annual Benefit in excess of the
Maximum Permissible Benefit, the benefit shall be limited (or the rate of accrual reduced) to a
benefit that does not exceed the Maximum Permissible Benefit,
(b) If the Participant is, or has ever been, a Participant in another qualified defined
benefit plan (without regard to whether the Plan has been terminated) maintained by the
Employer or a predecessor employer, the sum of the Participant's Annual Benefits from all such
plans may not exceed the Maximum Permissible Benefit. Where the Participant's Employer -
provided benefits under all such defined benefit plans (determined as of the same age) would
exceed the Maximum Permissible Benefit applicable at that age, the Employer will apply the
benefit accrual limit first to the plan that is not a broad -based participation plan.
(c) The application of the provisions of this Article shall not cause the Maximum
Permissible Benefit for any Participant to be less than the Participant's accrued benefit under all
the defined benefit plans of the Employer or a predecessor employer as of the end of the last
Limitation Year beginning before July 1, 2007 under provisions of the plans that were both
adopted and in effect before April 5, 2007. The preceding sentence applies only if the provisions
of such defined benefit plans that were both adopted and in effect before April 5, 2007 satisfied
the applicable requirements of statutory provisions, regulations, and other published guidance
relating to Code Section 415 in effect as of the end of the last Limitation Year beginning before
July 1, 2007, as described in Treas. Reg. Section 1.415(a)- 1(g)(4).
(d) The limitations of this Article shall be determined and applied taking into account
the rules in section 10.9.
X -1
10.4 Definitions:
(a) Annual Benefit: A benefit that is payable annually in the form of a straight life
annuity. Except as provided below, where a benefit is payable in a form other than a straight life
annuity, the benefit shall be adjusted to an actuarially equivalent straight life annuity that begins
at the same time as such other form of benefit and is payable on the first day of each month
before applying the limitations of this Article. For a Participant who has or will have
distributions commencing at more than one annuity starting date, the Annual Benefit shall be
determined as of each such annuity starting date (and shall satisfy the limitations of this Article
as of each such date), actuarially adjusting for past and future distributions of benefits
commencing at the other annuity starting dates. For this purpose, the determination of whether a
new starting date has occurred shall be made without regard to Treas. Reg. Section 1.401(a) -20.
Q &A 10(d), and with regard to Treas. Reg. Section 1.415(b)- 1(b)(1)(iii)(B) and (C).
No actuarial adjustment to the benefit shall be made for (a) survivor benefits payable to a
surviving spouse under a qualified joint and survivor annuity to the extent such benefits would
not be payable if the Participant's benefit were paid in another form; (b) benefits that are not
directly related to retirement benefits (such as a qualified disability benefit, preretirement
incidental death benefits, and postretirement medical benefits); or (c) the inclusion in the form of
benefit of an automatic benefit increase feature, provided the form of benefit is not subject to
Code Section 417(e)(3) and would otherwise satisfy the limitations of this Article, and the Plan
provides that the amount payable under the form of benefit in any Limitation Year shall not
exceed the limits of this Article applicable at the annuity starting date, as increased in subsequent
years pursuant to Code Section 415(d). For this purpose, an automatic benefit increase feature is
included in a form of benefit if the form of benefit provides for automatic, periodic increases to
the benefits paid in that form.
The determination of the Annual Benefit shall take into account Social Security supplements
described in Code Section 411(a)(9) and benefits transferred from another defined benefit plan,
other than transfers of distributable benefits pursuant to Treas. Reg. Section 1.411(d) -4, Q &A-
3(c), but shall disregard benefits attributable to employee contributions or rollover contributions.
Effective for distributions in Plan Years beginning after December 31, 2003, the determination
of actuarial equivalence of forms of benefit other than a straight life annuity shall be made in
accordance with Section 10.4(a)(1) or Section 10.4(a)(2).
(1) Benefit Forms Not Subject to 417(e)(3): The straight life annuity that is
actuarially equivalent to the Participant's form of benefit shall be determined under this Section
10.4(a)(1) if the form of the Participant's benefit is either (1) a nondecreasing annuity (other than
a straight life annuity) payable for a period of not less than the life of the Participant (or, in the
case of a qualified pre - retirement survivor annuity, the life of the surviving spouse), or (2) an
annuity that decreases during the life of the Participant merely because of (a) the death of the
survivor annuitant (but only if the reduction is not below 50% of the benefit payable before the
death of the survivor annuitant), or (b) the cessation or reduction of Social Security supplements
or qualified disability payments (as defined in Code Section 401(a)(11)).
(i) Limitation Years beginning before July 1, 2007. For Limitation Years
beginning before July 1, 2007, the actuarially equivalent straight life annuity is equal to the
annual amount of the straight life annuity commencing at the same annuity starting date that has
X -2
the same actuarial present value as the Participant's form of benefit computed using whichever
of the following produces the greater annual amount: (I) the interest rate specified in Section
2.1(b) of the Plan and the mortality table (or other tabular factor) specified in Section 2.1(b) of
the Plan for adjusting benefits in the same form; and (II) a 5 percent interest rate assumption and
the applicable mortality table defined in Section 2.1(b) of the Plan for that annuity starting date.
(ii) Limitation Years beginning on or after July 1, 2007. For Limitation Years
beginning on or after July 1, 2007, the actuarially equivalent straight life annuity is equal to the
greater of (1) the annual amount of the straight life annuity (if any) payable to the Participant
under the Plan commencing at the same annuity starting date as the Participant's form of benefit;
and (2) the annual amount of the straight life annuity commencing at the same annuity starting
date that has the same actuarial present value as the Participant's form of benefit, computed
using a 5 percent interest rate assumption and the applicable mortality table defined in Section
2.1(b) of the Plan for that annuity starting date.
(2) Benefit Forms Subject to Code Section 417(e)(3): The straight life annuity that is
actuarially equivalent to the Participant's form of benefit shall be determined under this
paragraph if the form of the Participant's benefit is other than a benefit form described in section
10.4(a)(1). In this case, the actuarially equivalent straight life annuity shall be determined as
follows:
(i) Annuity Starting Date in Plan Years Beginning After 2005. If the annuity
starting date of the Participant's form of benefit is in a Plan Year beginning after 2005, the
actuarially equivalent straight life annuity is equal to the greatest of (I) the annual amount of the
straight life annuity commencing at the same annuity starting date that has the same actuarial
present value as the Participant's form of benefit, computed using the interest rate specified in
Section 2.1(b) of the Plan and the mortality table (or other tabular factor) specified in Section
2.1(b) of the Plan for adjusting benefits in the same form; (II) the annual amount of the straight
life annuity commencing at the same annuity starting date that has the same actuarial present
value as the Participant's form of benefit, computed using a 5.5 percent interest rate assumption
and the applicable mortality table defined in Section 2.1(b) of the Plan; and (III) the annual
amount of the straight life annuity commencing at the same annuity starting date that has the
same actuarial present value as the Participant's form of benefit, computed using the applicable
interest rate defined in Section 2.1(b) of the Plan and the applicable mortality table defined in
Section 2.1(b) of the Plan, divided by 1.05.
(ii) Annuity Starting Date in Plan Years Beginning in 2004 or 2005. If the
annuity starting date of the Participant's form of benefit is in a Plan Year beginning in 2004 or
2005, the actuarially equivalent straight life annuity is equal to the annual amount of the straight
life annuity commencing at the same annuity starting date that has the same actuarial present
value as the Participant's form of benefit, computed using whichever of the following produces
the greater annual amount: (I) the interest rate specified in Section 2.1(b) of the Plan and the
mortality table (or other tabular factor) specified in Section 2.1(b) of the Plan for adjusting
benefits in the same form; and (11) a 5.5 percent interest rate assumption and the applicable
mortality table defined in Section 2.1(b) of the Plan.
If the annuity starting date of the Participant's benefit is on or after the first day of the first Plan
Year beginning in 2004 and before December 31, 2004, the application of this Section
X -3
10.4(a)(2)(i) shall not cause the amount payable under the Participant's form of benefit to be less
than the benefit calculated under the Plan, taking into account the limitations of this Article,
except that the actuarially equivalent straight life annuity is equal to the annual amount of the
straight life annuity commencing at the same annuity starting date that has the same actuarial
present value as the Participant's form of benefit, computed using the interest rate specified in
Section 2.1(b) of the Plan and the mortality table (or other tabular factor) specified in Section
2.1(b) of the Plan for adjusting benefits in the same form.
(b) Compensation: Compensation is defined as wages, salaries, and fees for
professional services and other amounts received (without regard to whether or not an amount is
paid in cash) for personal services actually rendered in the course of employment with the
employer maintaining the Plan to the extent that the amounts are includible in gross income
(including, but not limited to, commissions paid salespersons, compensation for services on the .
basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe
benefits, and reimbursements, or other expense allowances under a nonaccountable plan (as
described in Treas. Reg. Section § 1.62 -2(c), and excluding the following:
(i) Employer contributions (other than elective contributions described in
Code Sections 402(e)(3), 408(k)(6), 408(p)(2)(A)(i), or 457(b)) to a plan of deferred
compensation (including a simplified employee pension described in Code Section 408(k) or a
simple retirement account described in Code Section 408(p), and whether or not qualified) to the
extent such contributions are not includible in the employee's gross income for the taxable year
in which contributed, and any distributions (whether or not includible in gross income when
distributed) from a plan of deferred compensation (whether or not qualified);
(ii) Amounts realized from the exercise of a nonstatutory stock option (that is,
an option other than a statutory stock option as defined in Treas. Reg. Section 1.421- 1(b)), 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:
(iii) Amounts realized from the sale, exchange or other disposition of stock
acquired under a statutory stock option;
(iv) Other amounts that receive special tax benefits, such as premiums for
group -term life insurance (but only to the extent that the premiums are not includible in the gross
income of the employee and are not salary reduction amounts that are described in Code Section
125);
(v) Other items of remuneration that are similar to any of the items listed in (i)
through (iv).
For Limitation Years beginning more than 90 days after the close of the first regular legislative
session of the legislative body with authority to amend the Plan that begins on or after July 1,
2007, compensation for a Limitation Year shall also include compensation paid by the later of
21/2 months after an employee's severance from employment with the employer maintaining the
Plan or the end of the Limitation Year that includes the date of the employee's severance from
employment with the employer maintaining the Plan, if the payment is regular compensation for
services during the employee's regular working hours, or compensation for services outside the
X -4
employee's regular working hours (such as overtime or shift differential), commissions, bonuses,
or other similar payments, and, absent a severance from employment, the payments would have
been paid to the employee while the employee continued in employment with the employer.
Any payments not described above shall not be considered compensation if paid after severance
from employment, even if they are paid by the later of 2'/2 months after the date of severance
from employment or the end of the Limitation Year that includes the date of severance from
employment, except, payments to an individual who does not currently perform services for the
employer by reason of qualified military service (within the meaning of Code Section 414(u)(1))
to the extent these payments do not exceed the amounts the individual would have received if the
individual had continued to perform services for the employer rather than entering qualified
military service.
Back pay, within the meaning of Treas. Reg. Section 1.415(c)- 2(g)(8), shall be treated as
compensation for the Limitation Year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be included under this definition.
For Limitation Years beginning after December 31, 1997, or Compensation paid or made
available during such Limitation Year shall include amounts that would otherwise be included in
compensation but for an election under Code Sections 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or
457(b).
For Limitation Years beginning after December 31, 2000, Compensation shall also include any
elective amounts that are not includible in the gross income of the employee by reason of Code
Section 132(f)(4).
For Limitation Years beginning after December 31, 2001, Compensation shall also include
deemed Code Section 125 Compensation. Deemed Code Section 125 compensation is an
amount that is excludable under Code Section 106 that is not available to a Participant in cash in
lieu of group health coverage under a Code Section 125 arrangement solely because the
Participant is unable to certify that he or she has other health coverage. Amounts are deemed
Code Section 125 compensation only if the employer does not request or otherwise collect
information regarding the Participant's other health coverage as part of the enrollment process
for the health plan.
(c) Defined Benefit Dollar Limitation: Effective for Limitation Years ending after
December 31, 2001, the Defined Benefit Dollar Limitation is $160,000, automatically adjusted
under Code Section 415(d), effective January 1 of each year, as published in the Internal
Revenue Bulletin, and payable in the form of a straight life annuity. The new limitation shall
apply to Limitation Years ending with or within the calendar year of the date of the adjustment,
but a Participant's benefits shall not reflect the adjusted limit prior to January 1 of that calendar
year.
(d) Employer: For purposes of this Article, employer shall mean the employer that
adopts this plan, and all members of a controlled group of corporations, as defined in Code
Section 414(b), as modified by Code Section 415(h)), all commonly controlled trades or
businesses (as defined in Code Section 414(c), as modified, except in the case of a brother - sister
group of trades or businesses under common control, by Code Section 415(h)), or affiliated
X -5
service groups (as defined in Code Section 414(m)) of which the adopting employer is a part,
and any other entity required to be aggregated with the employer pursuant to Code Section
414(o).
(e) Formerly Affiliated Plan of the Employer: A plan that, immediately prior to
the cessation of affiliation, was actually maintained by the employer and, immediately after the
cessation of affiliation, is not actually maintained by the employer. For this purpose, cessation of
affiliation means the event that causes an entity to no longer be considered the employer, such as
the sale of a member controlled group of corporations, as defined in Code Section 414(b), as
modified by Code Section 415(h), to an unrelated corporation, or that causes a plan to not
actually be maintained by the employer, such as transfer of plan sponsorship outside a controlled
group.
(f) Limitation Year: The Plan Year. All qualified plans maintained by the
employer must use the same Limitation Year. If the Limitation Year is amended to a different
12- consecutive month period, the new Limitation Year must begin on a date within the
Limitation Year in which the amendment is made.
(g) Maximum Permissible Benefit: The Defined Benefit Dollar Limitation
(adjusted where required, as provided below).
(1) Adjustment for Less Than 10 Years of Participation or Service: If the
Participant has less than 10 years of participation with the Employer, the Defined Benefit Dollar
Limitation shall be multiplied by a fraction -- (i) the numerator of which is the number of Years
(or part thereof, but not less than one year) of Participation in the Plan, and (ii) the denominator
of which is 10. In the case of a Participant who has less than 10 Years of Service with the
Employer, the Defined Benefit Compensation Limit shall be multiplied by a fraction (1) the
numerator of which is the number of Years (or part thereof, but not less than one year) of Service
with the Employer, and (ii) the denominator of which is 10.
(2) Adjustment of Defined - Benefit- Dollar Limitation for Benefit
Commencement Before Age 62 or after Age 65: Effective for benefits commencing in
Limitation Years ending after December 31, 2001, the Defined Benefit Dollar Limitation shall be
adjusted if the annuity starting date of the Participant's benefit is before age 62 or after age 65.
If the annuity starting date is before age 62, the Defined Benefit Dollar Limitation shall be
adjusted under Subsection (g)(2)(i), as modified by (g)(2)(iii). If the annuity starting date is after
age 65, the Defined Benefit Dollar Limitation shall be adjusted under Subsection (g)(2)(ii), as
modified by, Subsection (g)(2)(iii),
(i) Adjustment of Defined Benefit Dollar Limitation for Benefit
Commencement Before Age 62.
I. Limitation Years Beginning Before July 1, 2Q07. If the annuity
starting date for the Participant's benefit is prior to age 62 and occurs in a Limitation Year
beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the Participant's
annuity starting date is the annual amount of a benefit payable in the form of a straight life
annuity commencing at the Participant's annuity starting date that is the actuarial equivalent of
the Defined Benefit Dollar Limitation (adjusted under Subsection (g)(1) above for years of
X -6
participation less than 10, if required) with actuarial equivalence computed using whichever of
the following produces the smaller annual amount: (1) the interest rate specified in Section
2.1(b) of the Plan and the mortality table (or other tabular factor) specified in Section 2.1(b) of
the Plan; or (2) a 5- percent interest rate assumption and the applicable mortality table as defined
in Section 2.1(b) of the Plan.
II. Limitation Years Beginning on or After July 1, 2007.
A. Plan Does Not Have Immediately Commencing Straight
Life Annuity Payable at Both Age 62 and the Age of Benefit Commencement. If the annuity
starting date for the Participant's benefit is prior to age 62 and occurs in a Limitation Year
beginning on or after July 1, 2007, and the Plan does not have an immediately commencing
straight life annuity payable at both age 62 and the age of benefit commencement, the Defined
Benefit Dollar Limitation for the Participant's annuity starting date is the annual amount of a
benefit payable in the form of a straight life annuity commencing at the Participant's annuity
starting date that is the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted
under Section 10.4( g)(1) for years of participation less than 10, if required) with actuarial
equivalence computed using a 5 percent interest rate assumption and the applicable mortality
table for the annuity starting date as defined in Section 2.1(b) of the Plan (and expressing the
Participant's age based on completed calendar months as of the annuity starting, date).
B. Plan Has Immediately Commencing Straight Life Annuity
Payable at Both Age 62 and the Age of Benefit Commencement. If the annuity starting date for
the Participant's benefit is prior to age 62 and occurs in a Limitation Year beginning on or after
July 1, 2007, and the Plan has an immediately commencing straight life annuity payable at both
age 62 and the age of benefit commencement, the Defined Benefit Dollar Limitation for the
Participant's annuity starting date is the lesser of the limitation determined under Section
10.4(g)(2)(i)(II)(A), and the Defined Benefit Dollar Limitation (adjusted under Section
10.4(g)(1) for years of participation less than 10, if required) multiplied by the ratio of the annual
amount of the immediately commencing straight life annuity under the Plan at the Participant's
annuity starting date to the annual amount of the immediately commencing straight life annuity
under the Plan at age 62, both determined without applying the limitations of this Article.
(ii) Adjustment of Defined Benefit Dollar Limitation for Benefit
Commencement After Age 65:
1. Limitation Years Beginning Before July 1, 2007. If the annuity
starting date for the Participant's benefit is after age 65 and occurs in a Limitation Year
beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the Participant's
annuity starting date is the annual amount of a benefit payable in the form of a straight life
annuity commencing at the Participant's annuity starting date that is the actuarial equivalent of
the Defined Benefit Dollar Limitation (adjusted under subsection (g)(1) above for years of
participation less than 10, if required) with actuarial equivalence computed using whichever of
the following produces the smaller annual amount: (1) the - interest rate specified in Section
2.1(b) of the Plan and the mortality table (or other tabular factor) specified in Section 2.1(b) of
the Plan; or (2) a 5- percent interest rate assumption and the applicable mortality table as defined
in Section 2.1(b) of the Plan.
►mil
II. Limitation Years Beginning On or After July 1, 2007.
A. Plan Does Not Have Immediately Commencing Straight Life Annuity Payable at
Both Age 65 and the Age of Benefit Commencement. If the annuity starting date for the
Participant's benefit is after age 65 and occurs in a Limitation Year beginning on or after July 1,
2007, and the Plan does not have an immediately commencing straight life annuity payable at
both age 65 and the age of benefit commencement, the Defined Benefit Dollar Limitation at the
Participant's annuity starting date is the annual amount of a benefit payable in the form of a
straight life annuity commencing at the Participant's annuity starting date that is the actuarial
equivalent of the Defined Benefit Dollar Limitation (adjusted under Subsection (g)(1) for years
of participation less than 10, if required), with actuarial equivalence computed using a 5 percent
interest rate assumption and the applicable mortality t able for that annuity starting date as
defined in Section 2.1(b) of the Plan (and expressing the Participant's age based on completed
calendar months as of the annuity starting date).
B. Plan Has Immediately Commencing Straight Life Annuity Payable at Both Age
65 and the Age of Benefit Commencement. If the annuity starting date for the Participant's
benefit is after age 65 and occurs in a Limitation Year beginning on or after July 1, 2007, and the
Plan has an immediately commencing straight life annuity payable at both age 65 and the age of
benefit commencement, the Defined Benefit Dollar Limitation at the Participant's annuity
starting date is the lesser of the limitation determined under Subsection (g)(2)(ii)II.A., and the
Defined Benefit Dollar Limitation (adjusted under Subsection (g)(1) for years of participation
less than 10, if required) multiplied by the ratio of the annual amount of the adjusted
immediately commencing straight life annuity under the Plan at age 65, both determined without
applying the limitations of this Article.
(iii) Notwithstanding the other requirements of this Subsection (g)(2), in
adjusting the Defined Benefit Dollar Limitation for the Participant's annuity starting date under
Subsections (g)(2)(i)I. and (g)(2)(i)II.A., (g)(2)(ii)I., (g)(2)(ii)II.A., no adjustment shall be made
to the Defined Benefit Dollar Limitation to reflect the probability of a Participant's death
between the annuity starting date and age 62, or between age 65 and the annuity starting date, as
applicable, if benefits are not forfeited upon the death of the Participant prior to the annuity
starting date. To the extent benefits are forfeited upon death before the annuity starting date,
such an adjustment shall be made. For this purpose, no forfeiture shall be treated as occurring
upon the Participant's death if the Plan does not charge Participants for providing a qualified
preretirement survivor annuity, as defined in Code Section 417(c), upon the Participant's death.
(3) Minimum benefit permitted: Notwithstanding anything else in this section to the
contrary, the benefit otherwise accrued or payable to a Participant under this plan shall be
deemed not to exceed the Maximum Permissible Benefit if:
(i) the retirement benefits payable for a Limitation Year under any form of
benefit with respect to such Participant under this plan and under all other defined benefit plans
(without regard to whether a plan has been terminated) ever maintained by the employer do not
exceed $10,000 multiplied by a fraction — (I) the numerator of which is the Participant's
number of Years (or part thereof, but not less than one year) of Service (not to exceed 10) with
the employer, and (II) the denominator of which is 10; and
(ii) the employer (or a predecessor employer) has not at any time maintained a
defined contribution plan in which the Participant participated (for this purpose, mandatory
employee contributions under a defined benefit plan, individual medical accounts under Code
Section 401(h), and accounts for postretirement medical benefits established under Code Section
419A(d)(1) are not considered a separate defined contribution plan).
10.5 Predecessor Employer: If the employer maintains a plan that provides a benefit which
the Participant accrued while performing services for a former employer, the former employer is
a predecessor employer with respect to the Participant in the Plan. A former entity that antedates
the employer is also a predecessor employer with respect to a Participant if, under the facts and
circumstances, the employer constitutes a continuation of all or a portion of the trade or business
of the former entity.
10.6 Severance from Employment: An employee has a severance from employment when
the employee ceases to be an employee of the employer maintaining the Plan. An employee
does not have a severance from employment if, in connection with a change of employment, the
employee's new employer maintains the Plan with respect to the employee.
10.7 Year of Participation: The Participant shall be credited with a Year of Participation
(computed to fractional parts of a year) for each accrual computation period for which the
following conditions are met: (1) the Participant is credited with at least the number of hours of
service (or period of service if the elapsed time method is used) for benefit accrual purposes,
required under the terms of the Plan in order to accrue a benefit for the accrual computation
period, and (2) the Participant is included as a Participant under the eligibility provisions of the
Plan for at least one day of the accrual computation period. If these two conditions are met, the
portion of a year of participation credited to the Participant shall equal the amount of benefit
accrual service credited to the Participant for such accrual computation period. A Participant
who is permanently and totally disabled within the moaning of Code Section 415(c)(3)(C)(i) for
an accrual computation period shall receive a Year of Participation with respect to that period.
In addition, for a Participant to receive a Year of Participation (or part thereof) for an accrual
computation period, the Plan must be established no later that the last day of such accrual
computation period. In no event shall more than one Year of Participation be credited for any
12 -month period.
10.8 Year of Service: For purposes of Section 10.4(g), the Participant shall be credited with a
Year of Service (computed to fractional parts of a year) for each accrual computation period for
which the Participant is credited with at least the number of hours of service (or period of service
if the elapsed time method is used) for benefit accrual purposes, required under the terms of the
Plan in order to accrue a benefit for the accrual computation period, taking into account only
service with the employer or a predecessor employer.
10.9 Other Rules:
(a) Benefits Under Terminated Plans. If a defined benefit plan maintained by the
employer has terminated with sufficient assets for the payment of benefit liabilities of all plan
Participants and a Participant in the Plan has not yet commenced benefits under the Plan, the
benefits provided pursuant to the annuities purchased to provide the Participant's benefits under
the terminated plan at each possible annuity starting date shall be taken into account in applying
/ME
the limitations of this Article. If there are not sufficient assets for the payment of all
Participants' benefit liabilities, the benefits taken into account shall be the benefits that are
actually provided to the Participant under the terminated plan.
(b) Benefits Transferred From the Plan. If a Participant's benefits under a defined
benefit plan maintained by the employer are transferred to another defined benefit plan
maintained by the employer and the transfer is not a transfer of distributable benefits pursuant
Treas. Reg. Section 1.411(d) -4, Q &A -3(c), the transferred benefits are not treated as being
provided under the transferor plan (but are taken into account as benefits provided under the
transferee plan). If a Participant's benefits under a defined benefit plan maintained lay the
employer are transferred to another defined benefit plan that is not maintained by the employer
and the transfer is not a transfer of distributable benefits pursuant to Treas. Reg. Section
1.411(d) -4, Q &A -3(c), the transferred benefits are treated by the employer's plan as if such
benefits were provided under annuities purchased to provide benefits under a plan maintained by
the employer that terminated immediately prior to the transfer with sufficient assets to pay all
Participants' benefit liabilities under the Plan. If a Participant's benefits under a defined benefit
plan maintained by the employer are transferred to another defined benefit plan in a transfer of
distributable benefits pursuant Treas. Reg. Section 1.411(d) -4, Q &A -3(c), the amount transferred
is treated as a benefit paid from the transferor plan.
(c) Formerly Affiliated Plans of the Employer. A formerly affiliated plan of an
employer shall be treated as a plan maintained by the employer, but the formerly affiliated plan
shall be treated as if it had terminated immediately prior to the cessation of affiliation with
sufficient assets to pay Participants' benefit liabilities under the Plan and had purchased annuities
to provide benefits.
(d) Plans of a Predecessor Employer. If the employer maintains a defined benefit
plan that provides benefits accrued by a Participant while performing services for a predecessor
employer, the Participant's benefits under a plan maintained by the predecessor employer shall
be treated as provided under a plan maintained by the employer. However, for this purpose, the
Plan of the predecessor employer shall be treated as if it had terminated immediately prior to the
event giving rise to the predecessor employer relationship with sufficient assets to pay
Participants' benefit liabilities under the Plan, and had purchased annuities to provide benefits;
the employer and the predecessor employer shall be treated as if they were a single employer
immediately prior to such event and as unrelated employers immediately after the event; and if
the event giving rise to the predecessor relationship is a benefit transfer, the transferred benefits
shall be excluded in determining the benefits provide under the Plan of the predecessor
employer.
(e) Special Rules. The limitations of this Article shall be determined and applied
taking into account the rules in Treas. Reg. Section 1.415(f) -1(d), (e) and (h).
(f) Aggregation with Multiemployer Pliins.
(i) If the employer maintains a multiemployer plan, as defined in Code
Section 414(f), and the multiemployer plan so provides, only the benefits under the
multiemployer plan that are provided by the employer shall be treated as benefits provided under
a plan maintained by the employer for purposes of this Article.
X -10
10. 10 Participant Limitation Applicable to Deferred Contribution Option: If the Defined
Contribution Option is elected in Section 12 of the Joinder Agreement the maximum permissible
amount which may be contributed or allocated to or made with respect to any Participant which
amount shall be the lesser of:
(1) $40,000, as adjusted for cost -of- living under Code Section 415(d)
(the "Defined Contribution Dollar Limitation "), or
(2) 100% of the Participant's Actual Compensation for the Limitation
Year.
Notwithstanding any provision of the Plan to the contrary, if the annual additions (within the
meaning of Code § 415) are exceeded for any participant, then the Plan may only correct such
excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set
forth in Revenue Procedure 2006 -27 or any superseding guidance, including, but not limited to,
the preamble of the final § 415 regulations.
10.11 Re- employment of Former Employees: If an Employee's employment is terminated
before he is eligible for a Pension and the Employee is subsequently re- employed by the
Employer, the Employee shall not receive any credit for his previous period of employment
unless he did not receive a distribution of Contribution Accumulation, except as otherwise
provided under Article VIII,- Employment Transfers. Such an Employee not so entitled to credit
for such previous period of employment shall be treated in the same manner as a person who was
not previously in the employment of any Municipality.
10.12 Re- employment of Retired Employees: If a former Employee retired under this Plan is
re- employed by the Employer, and again becomes an Employee under the Plan, no Pension
payments shall be made during the period of such re- employment. Upon the subsequent
termination of employment by such an Employee the Employee shall be entitled to receive a
Pension the amount of which is computed on the basis of his Compensation and Service with the
Employer prior to the date of his previous Retirement, as well as his Compensation and Service
with the Employer during the period of his re- employment. In the case of re- employment of a
retired Employee who received any Pension payments prior to his re- employment, the Pension
payable upon his subsequent Retirement shall be equal to the sum of (a) and (b), as follows:
(a) the same amount he had been receiving for his prior Retirement, adjusted for any
applicable cost -of- living adjustments, payable under the same form of annuity elected
for his prior Retirement, and
(b) an amount determined solely for his Compensation and Service with the Employer after
re- employment, payable in the form elected under Article V, VI or VII.
10.13 Buyback of Service: If the Employer` elects in the Joinder Agreement, then
notwithstanding anything to the contrary herein, a Participant who terminates employment with
the Employer and receives distribution of his Contribution Accumulation may be recredited with
his service if he repays his Contribution Accumulation with the interest that would have accrued
on such amount under the terms of the Plan.
X -11
ARTICLE XI.
Guarantees and Liabilities
11.1 Non- Guarantee of Employment: Nothing contained in this Plan shall be construed as a
contract of employment between the Employer and any Employee, or as a right of any Employee
to be contained in the employment of the Employer, or as a limitation of the right of the
Employer to discharge any of its Employees, with or without cause.
11.2 Rights to Fund Assets: No Employee shall have any right to, or interest in, any assets of
the Fund upon termination of his employment or otherwise, except as provided from time to time
under this Plan, and then only to the extent of the benefits payable to such Employee out of the
assets of the Fund. All payments of benefits as provided for in this Plan shall be made solely out
of the assets of the Fund and neither the Employer, the Trust Service Provider, the Authorized
Agent, nor any individual Trustee shall be liable in any manner.
11.3 Non - Alienation of Benefits: The Fund shall be exempt from legal process and no order
may be made to hold, seize, garnishee, or attach payments to any person as so provided in
Oklahoma Statutes, Title 60:327 and 328 or any statute of similar import. Except as duly
required under applicable law (including any domestic relations order) benefits payable under
this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or
involuntary, including any liability for alimony or other payments for property settlement or
support of a spouse or former spouse, or for any other relative of the Employee, but excluding
devolution by death or mental incompetency, prior to being received by the person entitled to the
benefit under the terms of the Plan. Except as may be duly required under applicable law, the
Fund shall not in any manner be liable for, or subject to, the debts, contracts, liabilities,
engagements, or torts of any person entitled to benefits hereunder and none of the unpaid Plan
benefits or Trust assets shall be considered an asset of the Employee in the event of his divorce,
insolvency, or bankruptcy.
11.4 Disclaimer of Liability: Neither the Employer, the Trust Service Provider, the
Authorized Agent, the Trustees, nor any individual Trustee guarantees the Fund in any manner
against loss or depreciation, and they shall not be liable for any act, or failure to act, which is
made in good faith pursuant to the provisions of the Plan. The Employer shall not be responsible
for any act, or failure to act, of the Trustees or the Trust Service Provider. The Trustees shall not
be responsible for any act, or failure to act, of the Employer or the Authorized Agent.
11.5 Indemnification of Trustees: The Trustees shall be indemnified from the assets of the
Fund against any and all liabilities arising by reason of any act, or failure to act, made in good
faith pursuant to the provisions of the Plan, including expenses reasonably incurred in the
defense of any claim relating thereto.
11.6 Payments Under a Qualified Domestic Relations Order:
(a) General: The Municipality shall follow the terms of any "Qualified Domestic
Relations Order" as defined in Subsection (b) below issued with respect to a Participant where such
XI- I
Qualified Domestic Relations Order grants to an "Alternate Payee" rights in the benefit of the
Participant.
(b) The term "Qualified Domestic Relations Order" means an order issued by the
District Court of the State of Oklahoma pursuant to the domestic relations laws of the State of
Oklahoma which relates to the provision of marital property rights to a spouse or former spouse of a
Participant and which creates or recognizes the existence of an Alternate Payee's right to, or assigns
to an Alternate Payee the right to receive a portion of the benefits payable with respect to a
Participant of the Plan.
(c) To qualify as an Alternate Payee, a spouse or former spouse must have been married
to the Participant for a period of not less than thirty (30) continuous months immediately preceding
the commencement of the proceedings from which the Qualified Domestic Relations Order issues.
(d) A Qualified Domestic Relations Order is valid and binding on the Trustees and the
Participant only if it meets the requirements of this Section.
(e) A Qualified Domestic Relations Order shall clearly specify:
(1) the name, social security number, and last -known mailing address (if any) of
the Participant, and the name and mailing address of the alternative payee covered by the order;
(2) the amount or percentage of the Participant's benefits to be paid by the Plan
to the Alternate Payee;
(3) the characterization of the benefit as to marital property rights, and whether
the benefit ceases upon the death or remarriage of the Alternate Payee; and,
(4) each plan to which such order applies.
(f) A Qualified Domestic Relations Order meets the requirements of this Section only
if such order:
(1) does not require the Plan to provide any type or form of benefit, or any
option not otherwise provided under the Plan;
(2) does not require the Plan to provide increased benefits; and,
(3) does not require the payment of benefits to an Alternate Payee which are
required to be paid to another Alternate Payee pursuant to another order previously determined to be
a Qualified Domestic Relations Order, or an order recognized by the Plan as a valid order prior to
the effective date of the Plan.
(g) A Qualified Domestic Relations Order shall not require payment of benefits to an
Alternate Payee prior to the actual retirement date of the Participant.
(h) The obligation of the Plan to pay an Alternate Payee pursuant to a Qualified
Domestic Relations Order shall cease upon the death of the Participant.
XI -2
(i) In the event a Qualified Domestic Relations Order requires the benefits payable to
an Alternate Payee to terminate upon the remarriage of said Alternate Payee, the Plan shall
terminate said benefit only upon the receipt of a certified copy of a marriage license, or a copy of
a certified order issued by the Court that originally issued said Qualified Domestic Relations
Order declaring the remarriage of said Alternate Payee.
0) This Section of the Plan shall not be subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. Section 1001, et seq., as
amended from time to time, or rules and regulations promulgated thereunder, and court cases
interpreting said Act.
(k) The Board of Trustees of the Oklahoma Municipal Retirement Fund shall
promulgate such rules as are necessary to implement the provisions of this Section.
(1) An Alternate Payee who has acquired beneficiary rights pursuant to a valid
Qualified Domestic Relations Order must fully comply with all provisions of the rules
promulgated by the Trustees pursuant to this Section in order to continue receiving his or her
benefits.
(m) Nothing in this Section shall grant a spouse or former spouse of a Participant any
property rights in the benefits of any Participant except as specifically authorized for Qualified
Domestic Relations Orders, and no spousal consent shall be required for a Participant to elect or
change elections pertaining to a benefit payable under this Plan.
XI -3
ARTICLE XII.
Amendments
12.1 Right to Amend: The Employer shall have the right to make from time to time any
amendment or amendments to this Plan, in whole or in part, which do not permit reversion of
any part of the Fund to the Employer except as provided in Section 13.4 and which do not cause
any part of the Fund to be used for, or diverted to, any purpose other than the exclusive benefit of
Employees included in the Plan. Any amendments to this Plan, in whole or in part, may be made
from time to time by the Employer by ordinance in the same manner as by this original adoption
ordinance, but no such amendatory action shall exceed the power and authority granted to the
Employer under the laws of the State of Oklahoma.
12.2 Amendments Each Employer agrees to adopt any amendments to this Plan which are
necessary for an initial or continued determination that the Plan is a qualified, tax exempt plan
under Sections 401(a) and 501(a) of the Code. Any such amendments will be an amendment of
the Employer's separate Plan if approved by the Trustee. The Employer may amend its separate
Plan in any respect and at any time, subject to the limitations of the Plan, by amendment of or
addition to the Joinder Agreement. However, the Oklahoma Municipal Retirement Fund
reserves the right to approve all Employer amendments.
12.3 Authority of Volume Submitter Practitioner to Amend for Adopting Employers.
Effective as of the date of the volume submitter advisory letter from the Internal Revenue
Service, the Volume Submitter Practitioner (the "Practitioner ") will amend the Plan on behalf of
all adopting employers, including those employers who have adopted the Plan prior to this
amended and restated Plan, for changes in the Code, regulations, revenue rulings, other
statements published by the Internal Revenue Service, including model, sample or other required
good faith amendments, but only if their adoption will not cause the Plan to be individually
designed, and for corrections of prior approved plans. These amendments will be applied to all
employers who have adopted the Plan.
The Practitioner will no longer have the authority to amend the Plan on behalf of any adopting
employer as of either: (1) the date the Internal Revenue Service requires the employer to file
Form 5300 as an individually designed plan as a result of an employer amendment to the Plan to
incorporate a type of plan not allowable in the Volume Submitter program, as described in Rev.
Proc. 2005 -16, or (2) as of the date the Plan is otherwise considered an individually designed
plan due to the nature and extent of the amendments. If the Employer is required to obtain a
determination letter for any reason in order to maintain reliance on the advisory letter, the
Practitioner's authority to amend the Plan on behalf of the adopting employer is conditioned on
the Plan receiving a favorable determination letter.
The Practitioner will maintain, or have maintained on its behalf, a record of the employers that
have adopted the Plan, and the Practitioner will make reasonable and diligent efforts to ensure
that adopting employers have actually received and are aware of all Plan amendments and that
such employers adopt new documents when necessary. This Section supersedes other provisions
of the Plan to the extent those other provisions are inconsistent with this Section.
XII -1
ARTICLE XIII.
Termination
13.1 Right to Terminate: The Employer may at any time terminate the Plan by proper
ordinance and may direct and require the Trustees to liquidate the Fund. If the Employer shall
for any reason cease to exist, the Plan shall terminate and the Fund shall be liquidated, unless
continued by a successor.
13.2 Liquidation of Fund: Upon termination of the Plan or a permanent discontinuance of
Employer contributions, the assets of the Fund which have been allocated for the Employees, and
interests of the Employees therein as determined by the actuaries, shall be liquidated, after
provision is made for the expenses of liquidation, by the payment (or provision for the payment)
of benefits accrued prior to the date of termination in the following order of precedence:
(a) The Contribution Accumulation of each Employee or former Employee entitled
thereto under Article VIII, as of the date of such Plan termination, or earlier date of death or
Retirement, less other benefit payments, if any, previously received in each case by or on behalf
of each such Employee, former Employee, or other eligible Beneficiary. Any such withdrawals
on the part of such persons will reduce their interests in distributions under categories (b), (c), (d)
and (e) below, on a proportionate basis, as determined by the actuary. Any such person may
elect not to take such withdrawals, and have the value thereof included in the actuary's
determination of his distributions under categories (b), (c), (d) and (e) below.
(b) Pensions or other benefits in course of payment to retired Participants, and
Beneficiaries of deceased Participants and immediate Pensions for Employees or former
Employees entitled thereto under Article VIII, who have reached their Normal Retirement Dates
but have not retired.
(c) Pensions deferred to Normal Retirement Date for Participation who have qualified
for an Early Pension.
(d) Pensions deferred to Normal Retirement Date for Participants who have qualified
for a Deferred Vested Pension.
If the funds available in any of categories (b), (c), or (d) are determined to be insufficient
to provide all such benefits the funds and benefits shall be apportioned among the various
persons, first in category (b), next in category (c), and next in category (d), in the same
proportion as each person's accrued credits bears to the accrued credits of all persons in each
such category on an Actuarial Equivalent basis as determined by the actuary.
(e) If the cost of providing for the benefits, first in category (b), next in category (c),
and next in category (d) is determined to be less than the total funds available, the balance will
revert to the Employer.
The benefit any such Participant is entitled to receive under this Plan shall be based on
the Employee's Compensation and Service accrued with the Employer prior to the date of
XIII -1
termination of the Plan, and his right to such benefit shall be considered as vested to the extent
funded, regardless of his age and years of Service on the date of termination of the Plan.
13.3 Manner of Distribution: Any distribution after termination of the Plan or permanent
discontinuance of Employer contributions, shall be made as soon as administratively feasible, at
such times and in such amounts so that no discrimination results, in cash, in securities or other
assets in kind (at fair market value), in continued direct payment Pensions, or in nontransferable
life insurance or annuity contracts, as the Committee in its discretion, shall determine. In making
such distribution, any and all determinations, divisions, appraisals, apportionments and
allotments so made shall be final and conclusive and not subject to question by any person.
13.4 Consolidation or Merger: Upon the Employer's liquidation, bankruptcy, insolvency,
sale, consolidation, or merger to or with another governmental unit in which such Employer is
not the surviving unit, the Plan and Fund will terminate and the Fund assets shall be held or
distributed as herein provided, unless the successor to the Employer assumes the duties and
responsibilities of the Employer by adopting this Plan, or by the establishment of a separate Plan
to which the Fund assets shall be transferred with the consent and agreement of the Employer.
13.5 Limitations: The order of priorities for distribution set forth above in Section 13.2, in
the event of termination of the Plan, shall be subject to (a) the limitations provided in Article X,
and (b) such distributions not being determined to be otherwise discriminatory by the
Commissioner of Internal Revenue. In the event such either the limitations under Article X
become effective or the Commissioner of Internal Revenue rules that the distributions are
otherwise discriminatory, adjustments shall be made in the said priorities and amounts of
distributions as may be necessary to satisfy the requirements of Article X or of the
Commissioner as the case may be.
XIII -2
ARTICLE XIV.
General
14.1 Not Contract Between Employer and Participant: Neither the creation of this Plan,
nor any amendment to it, nor the creation of any fund, nor the payment of benefits hereunder
shall be construed as giving any legal or equitable right to any Participant against the Employer
or against the Oklahoma Municipal Retirement Fund, except as provided herein, and all
liabilities under this Plan shall be satisfied, if at all, only out of the Fund held by the Oklahoma
Municipal Retirement Fund. Participation in the Plan shall not give any Participant any right to
be retained in the employ of the Employer, and the Employer hereby expressly retains the right
to hire and discharge any Participant at any time with or without cause, as if this Plan had not
been adopted, and any such discharged Participant shall have only such rights or interests in the
Fund as may be specified herein.
14.2 Payment of Fees: The Employer shall pay a fee in an amount determined and revised
from time to time by the Oklahoma Municipal Retirement Fund.
14.3 Governing Law: The validity, construction and administration of this Plan shall be
determined under the laws of the State of Oklahoma.
14.4 Counterpart Execution: This Plan may be executed in two or more counterparts, as
may be all amendments thereto be executed, and any one of the executed copies shall be deemed
an original.
14.5 Severability: Every provision of this Agreement is intended to be severable. If any term
or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity
shall not affect the validity of the remainder of this Plan.
14.6 Number and Gender: Pronouns and other similar words used herein in the masculine
gender shall be read as the feminine gender where appropriate; pronouns and other similar words
used herein in the neuter gender shall be read as the masculine or feminine gender where
appropriate; and the singular form of words shall be read as the plural where appropriate.
14.7 Compensation and Expenses of Administration: If a Trustee, a member of Oklahoma
Municipal Retirement Fund, or a member of the Committee is an Employee of the Employer, he
shall serve without any additional compensation. The Employer may pay all or part of the
expenses of administration of the Plan, including the compensation and expenses of the Trustee,
and any other expenses incurred at the direction of the Oklahoma Municipal Retirement Fund,
including, without limitation, fees of actuaries, accountants, attorneys, investment managers,
investment advisors and other specialists, and any other costs of administering the Plan. To the
extent that any of such expenses are not paid by the Employer, such expenses shall be paid by
the Oklahoma Municipal Retirement Fund out of the Fund.
14.8 Incorporation of Trust Agreement: The provisions of the Trust Indenture Establishing
the Oklahoma Municipal Retirement Fund are incorporated into and made a part of this Plan.
XIV -1
14.9 Mistake of Fact: All contributions to the Plan are made subject to the correctness of the
amount. In the event a contribution is made to the Plan and Trust by the Employer under a
mistake of fact concerning the correctness of such contribution, then the Oklahoma Municipal
Retirement Fund shall return such portion of such contribution which is in excess of the amount
that would have been contributed had there not occurred a mistake of fact within one year after
the payment of the contribution to the Oklahoma Municipal Retirement Fund.
In the case of amounts returned pursuant to this Section 14.9, no earnings attributable to
such amounts may be returned to the Employer, but losses attributable thereto shall reduce the
amount returned, and no such return shall reduce the balance of any Participant's Municipality
Contribution Accounts to less than the balance which would have been credited thereto had such
amount not been contributed.
XIV -2
WITNESS WHEREOF, and as conclusive evidence of the adoption of the foregoing
instrument comprising the Plan, the Oklahoma Municipal Retirement Fund has caused its
corporate seal to be affixed hereto and these presents to be duly executed in its name and behalf
by its proper officers thereunto authorized this 2 q' day of @ 4- r, 0/v .
OKLAHOMA MUNICIPAL RETIREMENT
FUND
ATTEST:
By
b'
(CORPORATE SEA t)
STATE OF OKLAHOMA )
) ss.
COUNTY OF OKLAHOMA )
A BEFORE ME, the undersigned a Notary Public in and for said County and State, on this
day of 5 a a,h , ; o/0 , personally appeared &Co ►'f e t i.11L, N s on , to me
known to be the identical person who subscribed the name of the Oklahoma Municipal
Retirement Fund, a municipal corporation, to the foregoing instrument as its Chairperson and
acknowledged to me that he executed the same as his free and voluntary act and deed and as the
free and voluntary act and deed of such corporation, for the uses and purposes therein set forth.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, the day and year last above
written. Z�
Notary Public
My Commission Expires:
(NOTARY SEAL)
a-72 `•
�p pg10511� Q
�N�y pUB1.NG ,�0
OF O
APPENDIX I
The following pages contain the actuarial factors needed to determine Actuarially
Equivalent options under the Plan.
Oklahoma Municipal Retirement Fund
Appendix I
LUMP SUM FACTORS BASED ON 5 OR 10 YEAR CERTAIN & LIFE NORMAL FORM
5 Years Certain & Life
10 Years
Certain & Life
Age
Immediate
Deferred to 55
Immediate
Deferred to 55
Deferred to 65
20
13.52555
0.84093
13.53249
0.85197
0.33065
21
13.50397
0.90430
13.51132
0.91617
0.35556
22
13.48098
0.97246
13.48875
0.98522
0.38236
23
13.45645
1.04576
13.46471
1.05949
0.41119
24
13.43030
1.12462
13.43908
1.13938
0.44219
25
13.40243
1.20944
13.41178
1.22532
0.47554
26
13.37272
1.30068
13.38271
1.31776
0.51142
27
13.34108
1.39884
13.35177
1.41720
0.55002
28
13.30736
1.50444
13.31884
1.52419
0.59154
29
13.27147
1.61805
13.28379
1.63929
0.63621
30
13.23325
1.74029
13.24651
1.76313
0.68427
31
13.19259
1.87182
13.20686
1.89639
0.73599
32
13.14933
2.01337
13.16473
2.03980
0.79164
33
13.10332
2.16569
13.11998
2.19412
0.85154
34
13.05440
2.32965
13.07249
2.36023
0.91600
35
13.00239
2.50612
13.02214
2.53902
0.98539
36
12.94725
2.69614
12.96889
2.73153
1.06011
37
12.88857
2.90069
12.91245
2.93877
1.14053
38
12.82622
3.12092
12.85276
3.16189
1.22713
39
12.76009
3.35809
12.78973
3.40217
1.32038
40
12.69006
3.61356
12.72329
3.66099
1.42083
41
12.61605
3.88883
12.65340
3.93988
1.52907
42
12.53799
4.18554
12.57997
4.24049
1.64573
43
12.45582
4.50549
12.50297
4.56464
1.77153
44
12.36952
4.85066
12.42233
4.91434
1.90725
45
12.27904
5.22323
12.33800
5.29180
2.05374
46
12.18435
5.62560
12.24990
5.69945
2.21196
47
12.08544
6.06045
12.15796
6.14000
2.38293
48
11.98222
6.53067
12.06207.
6.61639
2.56782
49
11.87454
7.03944
11.96207
7.13184
2.76787
50
11.76223
7.59025
11.85783
7.68989
2.98444
51
11.64503
8.18689
11.74916
8.29436
3.21904
52
11.52266
8.83351
11.63588
8.94947
3.47329
53
11.39479
9.53467
11.51786
9.65984
3.74898
54
11.26107
10.29538
11.39497
10.43053
4.04809
55
11.12118
11.12118
11.26717
11.26717
4.37279
56
10.97478
10.97478
11.13444
11.13444
4.72548
57
10.82160
10.82160
10.99687
10.99687
5.10882
58
10.66145
10.66145
10.85466
10.85466
5.52586
59
10.49434
10.49434
10.70814
10.70814
5.98006
60
10.32040
10.32040
10.55772
10.557`72
6.47547
61
10.13992
10.13992
10.40389
10.40389
7.01677
62
9.95332
9.95332
10.24720
10.24720
7.60941
63
9.76118
9.76118
10.08822
10.08822
8.25984
64
9.56419
9.56419
9.92760
9.92760
8.97568
65
9.36310
9.36310
9.76603
9.76603
9.76603
Oklahoma Municipal Retirement Fund
Appendix I
LUMP SUM - FACTORS BASED ON 5 OR 10 YEAR CERTAIN & LIFE NORMAL FORM
Basis: .75 (83GAM.M) +.25 (83GAM.F) - 7.5% Interest
5 Years Certain & Life
10 Years
Certain & Life
Ape
Immediate
Deferred to 55
Immediate
Deferred to 55
Deferred to 65
66
9.15871
9.15871
9.60428
9.60428
9.60428
67
8.95176
8.95176
9.44317
9.44317
9.44317
68
8.74284
8.74284
9.28351
9.28351
9.28351
69
8.53235
8.53235
9.12608
9.12608
9.12608
70
8.32065
8.32065
8.97163
8.97163
8.97163
71
8.10802
8.10802
8.82088
8.82088
8.82088
72
7.89486
7.89486
8.67452
8.67452
8.67452
73
7.68188
7.68188
8.53332
8.53332
8;53332
74
7.47013
7.47013
8.39802
8.39802
8.39802
75
7.26086
7.26086
8.26934
8.26934
8.26934
76
7.05545
7.05545
8.14789
8.14789
8.14789
77
6.85525
6.85525
8.03411
8.03411
8.03411
78
6.66140
6.66140
7.92827
7.92827
7.92827
79
6.47473
6.47473
7.83046
7.83046
7.83046
80
6.29580
6.29580
7.74065
7.74065
7.74065
81
6.12490
6.12490
7.65871
7.65871
7.65871
82
5.96211
5.96211
7.58445
7.58445
7.58445
83
5.80738
5.80738
7.51755
7.51755
7.51755
84
5.66051
5.66051
7.45765
7.45765
7.45765
85
5.52126
5.52126
7.40437
7.40437
7.40437
86
5.38942
5.38942
7.35747
7.35747
7.35747
87
5.26512
5.26512
7.31665
7.31665
7.31665
88
5.14823
5.14823
7.28145
7.28145
7.28145
89
5.03864
5.03864
7.25141
7.25141
7.25141
90
4.93649
4.93649
7.22610
7.22610
7.22610
91
4.84207
4.84207
7.20507
7.20507
7.20507
92
4.75535
4.75535
7.18788
7.18788
7.18788
93
4.67591
4.67591
7.17406
7.17406
7.17406
94
4.60337
4.60337
7.16321
7.16321
7.16321
95
4.53804
4.53804
7.15495
7.15495
7.15495
96
4.47961
4.47961
7.14893
7.14893
7.14893
97
4.42704
4.42704
7.14478
7.14478
7.14478
98
4.38017
4.38017
7.14216
7.14216
7.14216
99
4.33885
4.33885
7.14072
7.14072
7.14072
100
4.30308
4.30308
7.14006
7.14006
7.14006
101
4.27296
4.27296
7.13985.
7.13985
7.13985
102
4.24874
4.24874
7.13985
7.13985
7.13985
103
4.23059
4.23059
7.13985
7.13985
7.13985
104
4.21837
4.21837
7.13985
7.13985
7.13985
105
4.21133
4.21133
7.13985
7.13985
7.13985
106
4.20843
4.20843
7.13985
7.13985
7.13985
107
4.20843
4.20843
7.13985
7.13985
7.13985
Basis: .75 (83GAM.M) +.25 (83GAM.F) - 7.5% Interest
Oklahoma Municipal Retirement Fund
Appendix I
LUMP SUM FACTORS BASED ON 5 OR 10 YEAR CERTAIN & LIFE NORMAL FORM
PROCEDURES
1. Determine the normal form of annuity for the employer's plan: 5 year certain &.life or ,
10 year certain & life. Only the corresponding columns of Appendix I should be used.
2. If the Participant is eligible for immediate payment (under Early, Normal, or Late
Retirement) multiply the annual payment amount under the normal form (after any
reductions for early payment) by the "Immediate" factor for the Participant's payment
start age in completed months. Factors should be interpolated between the two
bracketing ages.
3. If the Participant is not eligible for immediate payment (Deferred Vested Retirement),
multiply the annual payment amount starting at age 65 under the normal form (after any
reductions for early payment) by the "Deferred to 55" factor for the Participant's age
at the time the lump -sum payment is to be made. Interpolate factors for the Participant's
age in completed months.
EXAMPLES
Age
Normal Form
Accrued Benefit
Reduced Early Benefit
Lump Sum Factor
Lump Sum
60 and 6 months
10 years certain & life
$500.00 / month
$387.50 / month
10.48080
12 x $387.50 x 10.48080 = $48,735.72
Age 45 and 6 months
Normal Form 5 years certain & life
Accrued Benefit $200.00 / month
Reduced Early Benefit at : $100.00 / month
Lump Sum Factor 5.42442
Lump Sum 12 x $100.00 x 5.42442 = $6,509.30
T City Wit out Lim €ts.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Karl Fritschen
Community Development Director
SUBJECT: Final Plat — Temple Business Park
DATE: December 10, 2010
BACKGROUND:
The City of Owasso has received a final plat for the review and approval of the Temple Business
Park final plat. The final plat proposes one (1) lot on 1.28 acres of property. The applicant wishes
to plat the property so that they may develop a heating and air conditioning unit commercial
sales facility. The subject property is located on North Main just to the west of the Brookwood
Apartments, east of the Owasso Public School's 7th Grade Center, and North of the Kum & Go
site.
SURROUNDING ZONING:
North: Recreation Center, RS -3 Zoning
South: Kum and Go, CG Zoning
East: Brookwood Apartment, RM -1 Zoning
West: The Owasso Public Schools 7th Grade Center, RS -3 Zoning
PROPERTY CHARACTERISTICS:
The subject property is 1.28 acres in size. The property is served by the City of Owasso water,
sanitary sewer, police, fire, and EMS service.
DEVELOPMENT PROCESS:
The first step in the development of a piece of property in Owasso is annexation. Annexation is
the method whereby land located outside the city limits is made a part of the city. Property
owners and land developers sometimes choose to have their property annexed into Owasso in
order to receive Owasso municipal services, such as police protection, refuse collection, and
sanitary sewer.
The second step in the development of a piece of property in Owasso is rezoning. When a
property is annexed into Owasso, by law it must come in classified for AG Agricultural use. In
order to develop the property, the land must be zoned for particular kinds of uses, such as
residential, office, commercial, or industrial. Rezoning decisions are made in accordance with
the growth policy displayed in the Owasso Master Plan.
One type of rezoning that a developer may choose to seek is a Planned Unit Development, or
PUD. When a development proposes to exhibit a mixture of uses with specific regulations and
standards unique to a particular tract of land, a PUD is often the preferred land use control
mechanism.
The third step in the development of a piece of property in Owasso is platting. A preliminary plat
is required for any development that proposes to divide land into two or more lots. Preliminary
plats illustrate the development concept for the property, and are often modified significantly
after being reviewed by the Technical Advisory Committee (TAC), and the Owasso Planning
Commission. Sometimes, difficult development issues such as existing utility lines, wells, or
easements are brought to light at the preliminary plat stage and must be remedied prior to
development.
After the preliminary plat has been reviewed by the City and various utility companies,
construction plans for the development's infrastructure are submitted. These plans include
specifications and drawings for stormwater drainage, streets and grading and erosion control,
waterlines, stormwater detention, and wastewater lines. Often, approval is required of other
agencies, such as the Department of Environmental Quality for wastewater collection and the
US Army Corps of Engineers for properties that may be development sensitive.
Once the property development proposal shows a division of lots that is acceptable to both the
developer and the City of Owasso, a final plat application is submitted. A final plat illustrates the
layout and dimension of lots included on the final plat, right -of -way widths, easements, and
other physical characteristics that must be provided for review by the City. After obtaining
approval from the TAC and Planning Commission, the final plat is considered by the City
Council. If approved, the final plat is filed with the office of the County Clerk and governs all
future development on that property.
The fourth step in the development of a piece of property in Owasso is the site plan. Site plans
are reviewed by the TAC. Issues such as building setbacks, parking, access, landscaping, and
building footprint are presented in the site plan. Once a site plan is approved, the development
is clear to apply for a building permit and to submit construction plans for the building's
foundation, plumbing, electrical system, and HVAC.
ANALYSIS:
The applicant is requesting the review and approval of the Temple Business Park final plat so
they may plat and eventually develop the property with a full commercial sales facility of
heating and air equipment and supplies. The property is zoned CG (Commercial General). The
designation outlines the development standards for the property in a commercial manner. The
proposed layout for the heating and air conditioning unit commercial sales use associated with
the plat is allowed by right according to the zoning designation.
According to the final plat, the developer would like to create one (1) 1.28 acre lot, which
would be the proposed site of the commercial sales entity.
The main access into the Temple Business Park will be from North Main Street. The applicant has
shown a total of 100' to be designated on the site plan for ingress and egress. The 100' that is
designated for ingress and egress would consist of two 50' points of access.
Any development that occurs on the subject property must adhere to all subdivision, zoning,
and engineering requirements including but not limited to paved streets, landscaping, and
sidewalks. Commercial sewer and water service will be provided by the City of Owasso. The
property will be subject to all payback fees, including Storm Siren fees of $35 per acre.
�2
4$
Y jF{
I
Final Subdivision Plat
TEMPLE BUSINESS PARK
AN ADDITION TO THE CITY OF OWASSO, BEING A SUBDIVISION IN THESE/4 OF THE SW /4 OF THE SE/4
OF SECTION 19. T -21 -N, R -14 -E OF THE I.B.&M., TULSA COUNTY, STATE OF OKLAHOMA
ADDITION HAS 1 LOT IN 1 BLOCK AND CONTAINS 1.28 ACRE MORE OR LESS.
IESSe n0DI1KM•
NAL NO. Sf >3
I � I
I A I If ni
a l al LOT 1 I
BLOCK 1 I I
�I 87D1 NORTH MAIN
4I
ii J IN
L,A «_• � I I
II
I — I
- - - -�- _ na•urr re+.,rnFw Yen
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h
0 20 40 60
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PUT xo.
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1'I.R I'IV >11:
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nfNNNiI; }II 1:11
H Ira<,1 HIT I1tLMt'R4R
M
ISp.T
R 14 E
FAST 64TH 61REEr NDRTH ,° ,•
�17:
�.
T
19 - = N7
31 was �e.A=
EAST eeTH STREET NO Hw,„,,,�.. ~,
TulsD County
LOCATION MAP
SCALE: 1' -o'
OWNER:
M A TEMPLE INVESTMENTS, LLC
P.O. BOX 721141
Oklohomo City, Oklohomo 73172
(405) 641 -8670
SURVEYOR:
WHITE SURVEYING COMPANY
9936 Eost 55th Ploce
TulsO, Oklohomo 74146
(918) 663-6924
0
Certificate 1 Authorization No. 1098
Renewal Dole: June 30, 2011
ENGINEER:
KHOURY ENGINEERING, INC.
1435 East 41st Street
Tulsa, OkOhomo 74105
(918) 712 -8768
Certificate of AWhorixotion No. 3751
Expires June 30, 2011
LEGEND:
U/E a UTILITY EASEMENT
L.N.A. - LIMITS OF NO ACCESS
BASIS OF BEARINGS:
BEARINGS SHOWN HEREON ARE BASED ON THE SOUTH
UNE OF THE SE /4 OF SECTION 19, T -21 -N, R -14 -E.
BEING ASSUMED S 89'51'08" W.
MONUMENT NOTES
ALL LOT AND BLOCK CORNERS ARE MARKED WITH NO.
3 DEFORMED RE -BAR, 18 INCHES LONG WITH YELLOW
PLASTIC CAP STAMPED "WHITE CA 1098" UNLESS NOTED
OTHERWISE,
FLOOD PLAIN NOTE:
THIS PROPERTY LIES IN ZONE "K- UNSHADED" FLOOD
HAZARD AREA PER F.I.R.M. COMMUNITY PANEL 140. 400462
0236H, AS LAST REVISED SEPTEMBER 22, 1999.
Temple Business Park, Tulsa County
Final Plat, October 6,201b
SHEET 1 OF 2
DEED OF DEDICATION AND DECLARATION OF RESTRICTIVE
COVENANTS KNOW ALL MEN BY THESE PRESENTS.
M A RNPIE tlI,tEIIIERIR. OF (TX[ "OMIIFR�RENO TIE . M Of ME FDiDMXO
DEECRRED Rill PROPERtt ONE YROPERN SRW1N1 M ME Cm a ONW550.
TASA COUNTY. S1A1E OF d(WpNk
ME LYDT NNF MR) DF TIE SdTNfAST dURTER (SC/N) OF ME SOUTHWEST
OVARIOt (SW %) DF MF SDVMUSf WMRR (SC/1) IDS AD IXC[M THE SOIIM
THEE µIMDRm F -fWR O Foo ,WD ISSS NID EM — ME NORM OME
NUMBED AM idlR ( 101) AMO IESS ANp EXCEP! ME WEST RFTY (SGT FLET
MEREOF OF EEC110FI IIINErzp (TS). TOIHNIN TWENTY ONE (11) MORTIT, RANOE
foURTEEN (TN). EAST DF ME TINA!- BASE MID MERRXW, n— LMINn•. STATE
m OKVREMA ACCd1DR1G TO ME UNTW SU1F3 ONERMYFM SUM.Y HEREOF.
— CAUSED TIE SANG TO . SUMEYED. —ED. AND PUTTED N COMFORMY
WITH ME MCWPNMMO PUT, AD — DFSDRNIFD ME — A VENUE BUfIN6f
PAR%• A ELVOMfNN N TE CM K tlM SSO. TIXSA CWMY. STATE Oi' CI(IMpTU.
SECTON h EASSENENTS AND UTILmES
C. WATER. SANITARY SEWER, MD STORM SEWER
nu oWNm µ M[ Lm sFNU. xm DVWD[ M[ weuc
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Fat oTttINIRY MMM[NNICE M PUNIC WATER
TIE Tµ ME SARARY SfW[R ME
OR AND
SaRR NAWS. PRpkeq OMRIFR OF Em SHALL PAY FOR TO PVNE
DR RfLO, m OF SUCH FMlRl6 CAUSED OR X[c6NTAl[D BY TIE AGIE W ME
OWNER M HIS ACFMIE OR CONTMCTORe.
I TN C 0f OOWMO. �wORR M — FSSONS SIWL AT Al TMES
CB OTORW6[ PROYDro FOR N TYS GEED OF D[OlGipil Fdl TO PIUPME oP
p�tNNLM4 MMRNNMG R[MDNX: M RFMkep Aw PCIRITJM CF TO M[lK WATp
SATAw 5(WF11 MNNG M STORM SEWER MNMS.
N M[ FDIEW MOD SET IORIII IMM'PC6LOES Np M aMM�[R a
AC0.RT l0 EE e011ND NERCBY BIIIAL R[MAI IM —EE NID FTTECT,
D. GAS SEANCE
M —E. NI 1. M A 1FMPlE 0—EMS, UC. INS CMR:ED TOSE PMS[MTS
TO BE —UTED MIS —Gr OF EOTO.
B:
NVAC: MNN A ttNPIL
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COI MYFO SS
ME mR[OOM6 DroIGMN! AXD MC FORLGOME COREMMR AND MAT RELTNCIRON
qR ONRF AMCC. SNE DR 1MI6FG REiE IdNdWLDC6 BFfORE IC Nr
14 CY AS PRd10[M
M M A TaMLE IEAk1T1AEbIS. LLa
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ACCEPTANCE OF DEDICATION By CTTY COUNCIL
BE R RLSOLRED WY TIE CdINdL OF TO Cm DF OIFTESO. VA. OF OKUHOMA
MAIM DEdG110N SlpwfT M TXE N111Fltro MAT Of ttMNE BUSIKESS PAK IS
HERFBf kCEPRII NMPTD H 1ME CdNNJL m OWASSO D1 iN6 _MY OF
x^10.
Cm CIEIWL AIRTgt
RE YE TIE uMe[RSIONF0. A NmARY M THE HATE OFOK—A DN
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PLRSOM NTIO IX6UI[0 ME WTNN AD NMCdM14uNSIMINEM 1WD kNNd1TE0DED
TS ME TNT W EXECUTED ME SAME A NB FREE MD WLINInTCY ACl MID DEED
TOR ME — MD MIRPOSES -REM EEPgESSro.
A UfILRY EASEMENTS
TETSUDPMIf1R OF OAS SEANCE TRtOYON DW AC[ME IIID EMPLOYEES SHALL
NM[ MF RIGA K kCC# M ALL SUCH [AS[u0m fMTYIN ON M
�� N1elC
MmARY PINIIC
DEEM A DYAt RFY[RE KLM ME OYMFR 006 IOREH DFDM tt Fdl
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w COYNISiMIx IXMRf3:
M
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F E R M
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rM?II�VAtt d
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T ME
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E
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R F
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caLNTr cum
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ucExs6
AND
FNCINFLK AD UND SWWSYORf.
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WAV EIIMEN ON SND PUT:
ME - ME OF EL RE.. DE
N TN[ 9OPNlp OF ME CA S[iMCf Nb THE OWNER Of M[ LOT AR[[S TO BE
Bdeq IfAfaY.
CERTIFlGTE OF COUNTY TREASURER
HoWORFF, NOMXO IIEIRFAI NWT. IROHRIrt MC CdISMUCfMM OF ORN[S. PAKNO
STATE Of ONCwDMA I W NFREWY CE— TENT I HASE E%AYNED TO RECORDS
AREAS. CUPNW. Md a MID PRAM rXE. LOUT PDE, INIDN. MME, SCR6MNO
NC[S. RRMNNC WNL4 AO OTxR SMFME RENq.FNpR TNT Po NOT CdOTnll[
E. PIMNC AND IANDSCAPMM, W11HIN EASEMENTS
Tdl A INYMES, LMS 1OE2
PERINGNO TO NI DILL 04 THEM Gi THE TMCF a FDA di THE NiMFKfD PUT Np
RIID TNT ALL M YAIDM TAKE IM E BEEN Plq fq S00), Nq NL
A OBSTRLCIl01I TO NIY FARUFM.
Aw PARN 6[RGNXO GSFYFM RKHfS XER[UNO[R SRWL B[ R[YdISNIC Iron
OF po/NDM
— . DF
ME TINT STAMOM 9ECURf(Y IDS eEp DEPDSIIED dARRWIEDRIE PYMEM OF
ME 1010 TA[G
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The City Wit nut Limits.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Roger Stevens
Public Works Director
SUBJECT: Recommendation for Contract Award
Rayola Park Improvements
DATE: December 10, 2010
BACKGROUND:
In February 2010, the Rayola Park Improvement Project was given approval by City Council. The
park serves as an important element of the City's park system and is a valuable open space that
serves the residents of the City and the patrons of the adjacent YMCA. The project will improve
the appearance and stability of the drainage way that runs through the park, including the
addition of small dams as water features; provide a continuous concrete walking path loop;
upgrade the site lighting; provide ADA compliant handicap accessible entrances; repair the two
park bridges. In mid - August, the Engineering Division of Public Works completed the design of
the park improvement plans.
The original bids for the project were opened on September 17, 2010, with three (3) bids
presented. All three bids were tabulated by City staff and proved to be in excess of the
engineer's estimate of $300,000. Staff examined options to reduce the scope or seek additional
funding of the project due to the cost exceeding the Department's engineering estimate and
the shortage of available funding. At this time, additional funding options were not sufficient to
meet the bids received. Staff had reason to believe that a reduction of scope and a second
bidding opportunity would allow additional contractors to bid this project in a competitive
bidding environment providing a more affordable project. At the October 5, 2010 Council
meeting, the Council approved the rejection of all three bids, as recommended by staff.
In mid - October, staff began working on the contract documents for re- bidding purposes and
contacted seven (7) respected contractors to ensure a more competitive bidding process. On
October 29, 2010, the project was re- advertised, and bids were opened on November 18, 2010.
Three (3) bids were received, with one of the bids being disqualified for failure to meet contract
requirements by not providing a complete bid set (second highest bid). The qualifying bid
amounts are as follows:
Bidder Base bid Alt 1 thru 8 Total Bid Other Costs Total Project Cost
Cherokee Pride $351,340.00 $19,950.00 $371,290.00 $22,000.00 $393,290.00
Tri -Star $318,159.05 $39,120.00 $357,279.05 $22,000.00 $379,279.05
Both of the qualifying bids are from respected contractors that the City has worked with in the
past, and both of their bids are approximately $100,000 lower than those of the qualified bidders
from the first bidding.
For the two bids received, the base bid includes the walking trail (concrete), drainage work,
some electrical work and the low water dams. The alternates include services such as trenching
for the electrical conduit, surveying, and painting the existing handrail and bridge. In addition,
the bridge deck work will be replaced and re- enforced and concrete storm drain box structures
will be added. The other cost line item of $22,000 is exclusive from the contract and includes
light pole and fixture cost, and removal of the existing wood electrical poles.
As mentioned above, our budget amount for this project is $308,000.00. That leaves a funding
gap of approximately $100,000.
In order to fund that gap, a request will be made to the City Council to utilize an additional
$106,000 from this year's (2010 -2011) CDBG funding. Staff has spoken with the CDBG
administrator at the Indian Nations Council of Governments (INCOG), who has approved the
use of 2010 -2011 funds for this project. If approved, that will mean that three years of CDBG
funding for the City will be used on the Rayola Project. Staff believes the use of additional
funding from this year's CDBG is appropriate in order to construct a quality project and improve
our "gateway" on US 169. City staff believes that any further reduction in the proposed project
scope would significantly reduce the impact and quality of the project.
FUNDING:
Funding for this project is currently available from three sources: the 2008 -2009 Community
Development Block Grant totaling $96,000, the 2009 -2010 Community Development Block Grant
totaling $98,000, and the Vision 2025 grant totaling $114,000. Additional funding will be
requested from the 2010 -2011 Community Development Block Grant totaling $106,000.
Funding Source
Amount
2008 -2009 Community Development Block Grant
$
96,000
2009 -2010 Community Development Block Grant
$
98,000
Vision 2025 Grant
$
114,000
2010-2011 Community Development Block Grant (Proposed)
$
106,000
Total:
$
414,000
RECOMMENDATION:
Staff has reviewed the bids and intends to recommend City Council award the 2010 Rayola Park
Improvements Project contract, including alternates 1 through 8, to Tri -Star Construction, LLC in
the amount of $357,279.05.
ATTACHMENT:
A. Bid Tabulation
BID DOCUMENTATION
Number of Bids:
Bids Opened By:
Witnesses:
Marcia Boutwell
John Feary
Daniel Dearing
CITY OF OWASSO, OKLAHOMA
Rayola Park Improvements Re -Bid
Bid Opening : November 18, 2010
BIDDER
BASE BID
ALT #1
ALT #2
ALT #3
ALT #4
ALT #5
ALT #6
ALT #7
ALT #8
Cherokee
Pride,
$348,340.00
$600.00
$6000.00
$3000.00
$1800.00
$3500.00
$1750.00
$1800.00
$1500.00
Sapulpa
Contech,
LLC,
Broken
Incomplete Bid
Arrow
Tri -Star
Const,
$318,159.05
$1350.00
$18,900.00
$6300.00
$1600.00
$3000.00
$4900.00
$1170.00
$1900.00
Catoosa
Apoft
The City wir "ut Limits.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: David Warren
Parks Director
SUBJECT: Bid Award
Sports Park South Restroom
DATE: December 10, 2010
BACKGROUND:
The FY 2010 -11 Budget included funding for several different projects throughout the City of
Owasso. Included in that project list was funding to provide improvements to the Owasso Sports
Park South. A total of $160,000 was budgeted in the Capital Improvements Fund for this
purpose.
In November, the Parks Department began the process of advertising for bids in order to provide
the Sports Park South restroom. The bid packet was developed with a base bid, and two
alternate bid item specifications. The base bid included the installation of a handicapped
accessible restroom at the Sports Park South, which would match the three existing restrooms
located at the Sports Park North. Alternate No.] was installation of approximately 625 feet of
sewer service line. Alternate No.2 was a standing seam metal roof.
All bids were to be received by November 29th, at 2:00 PM. Due to this restroom being identical
to the existing restrooms located at the Sports Park North, no pre -bid meeting was conducted.
A total of 7 bid packets were obtained following advertisement and a total of 4 companies
submitted bids. A copy o f f he bid tally sheet is attached for your information and review.
A review of the bids submitted indicates that 3 of the bids that were received are in compliance
with specifications. Staff is prepared to recommend the award of the Sports Park South restroom
and alternate No.l to TriStar Construction, as they were the qualifying low bidder at $140,490
and alternate No.l at $12,531. Having previously constructed a restroom facility for the City of
Owasso, staff has no concerns with their workmanship.
FUNDING:
Funds for the restroom improvements were included within the Capital Improvements Fund
budget in the amount of $160,000.
RECOMMENDATION:
Staff intends to recommend City Council award construction of the restroom and alternate No.1
at Sports Park South to TriStar Construction in the total amount of $ 153,021. Please note that the
remaining funds budgeted for this project will be utilized to provide a water tap and walkway to
this facility.
Sports Park South Restroo
Page 2
ATTACHMENT:
A. Bid Tally Sheet
B. Restroom Floor Plan and Elevation Profile
CITY OF OWASSO, OKLAHOMA
SPORTS PARK SOUTH RESTROOM
Bid Opening 11/29/2010
Number of Bids: 4
Bids Opened By: Marcia Boutwell
Witness: David Warren
BIDDER
BASE BID
ALT #1
ALT #2
Crestline Construction, Broken Arrow
$178,299.00
$19,600.00
$4,500.00
Builders Unlimited, Tulsa
$173,181.00
$4,419.00
$16,464.00
CEI Incorporated, Tulsa
$148,711.00
$31,000.00
$6,400.00
Tri -Star Construction, Catoosa
$140,490.00
$12,531.00
$4,500.00
Certification:
I, Marcia Boutwell, Contract Administrator, do hereby certify that, to the best of my knowledge, this Bid
Documentation is true and correct.
Signature: (s) Marcia Boutwell
Date: November 29, 2010
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The City wit out Limits.
TO: The Honorable Mayor and City Council
City of Owasso
FROM: Julie T. Lombardi
City Attorney
SUBJECT: Proposed Truancy Ordinance & Amendment of Mandatory Seat Belt Use
Ordinance
DATE: December 10, 2010
BACKGROUND:
A. Truancy
Reduction of student truancy is a goal jointly shared by the Owasso Police Department
and the Owasso Public Schools. As a part of that effort, the Police Department and the
schools have requested that the City of Owasso consider enactment of an ordinance
imposing penalties upon truant students. This ordinance would allow police officers to
issue a citation to any student deemed truant by the school. The definition of "truant"
and "truancy" shall be established by school district policy. School District policy
currently provides that a student is truant when he or she is absent, or is not in his or her
assigned area within the school at the designated time, without parental or school
permission.
The proposed ordinance authorizes the City's police officers to issue a citation to any
student deemed truant by the schools. The citation would compel a mandatory court
appearance by the truant student and would further require attendance at the court
proceeding by the student's parent or legal guardian. As in other juvenile matters
adjudicated in Owasso's Municipal Court, the judge may make an assessment of the
circumstances in each case and determine the appropriate sentence or other court
action. The Court's sentencing options include ordering the minor to return to school,
imposition of a fine and /or community service, referral for individual or family counseling,
referral of the truant student for an alcohol or drug assessment if indicated, and any
other incentives or consequences the Court determines are necessary.
Currently, police officers have few or no options when dealing with a student who refuses
to attend school. Not uncommonly, the request for law enforcement assistance is made
by the child's parent or guardian who is unable for whatever reason to compel school
attendance by the child. Under the proposed ordinance, police officers would be
authorized to issue a citation to the minor, which would require him or her to appear in
Municipal Court, thereby subjecting the truant child to the court's jurisdiction and
supervision. This is particularly desirable in situations where sanctions imposed by the
parent and the school are no longer effective in compelling school attendance by the
child.
B. Mandatory Seat Belt Use
Owasso Municipal Code Section 15 -308, "Mandatory Seat Belt Use," substantially mirrors
state law and requires that children under the age of four (4) to be placed in an
approved child passenger restraint system when travelling in a motor vehicle. However,
the companion state statute upon which that ordinance is based, 1 1 O.S. § 1112, entitled
"Child Passenger Restraint System" has recently been amended by the State Legislature
to increase the age of the child required to use a child passenger restraint system from
four (4) to six (6) years of age.
The Owasso Police Department and the Municipal Court have recommended
amendment of the City's ordinance to increase the age of a child required to use a
child passenger restraint system from four (4) to six (6) years commensurate with the
changes in the State law. In addition, the language contained within subsection (E) of
this section addressing fines which may be imposed upon violators has also been revised.
State law specifying what fines may be imposed by municipal courts is revised frequently.
The fine schedule used by Owasso's Municipal Court is reviewed annually and revisions
are made wherever needed so that the City's Municipal Court fine schedules are fully
compliant with state law limitations. Accordingly, staff consistently recommends removal
of old and /or inapplicable language specifying dollar amounts of allowable fines for any
particular offense. A proposed amendment of the City Code Section 15 -308 reflecting
the recommended changes is provided for your review.
PROPOSED ACTION:
Adoption of proposed Section 10 -426, "Truancy," and approval of the proposed amendment to
Section 15 -307, "Mandatory Seat Belt Use."
RECOMMENDATION:
Staff intends to recommend City Council approval of both the proposed Truancy ordinance and
the proposed amendment to the Mandatory Seat Belt Use ordinance.
ATTACHMENT:
A. Proposed Truancy Ordinance
B. Proposed Amendment to Mandatory Seat Belt Use Ordinance
CITY OF OWASSO, OKLAHOMA
PROPOSED ORDINANCE
AN ORDINANCE RELATING TO PART 10, OFFENSES & CRIMES, CHAPTER 4, OFFENSES AGAINST THE
HEALTH, WELFARE & MORALS, SECTION 10 -426, TRUANCY, OF THE CODE OF ORDINANCES OF THE CITY
OF OWASSO, OKLAHOMA, MAKING IT UNLAWFUL FOR CHILDREN BETWEEN THE AGES OF TWELVE (12)
AND EIGHTEEN (18) TO NEGLECT OR REFUSE TO ATTEND SCHOOL, AND AUTHORIZING ISSUANCE OF A
CITATION BY LAW ENFORCEMENT IF A CHILD IS DEEMED TRUANT AS DEFINED BY SCHOOL DISTRICT
POLICY.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO -WIT:
SECTION ONE (1): Part Ten, Offenses & Crimes,, Chapter Four, Offenses Against the Health,
Welfare & Morals, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be amended
and codified as follows:
SECTION 10 -426 TRUANCY
SECTION TWO (2):
A. It shall be unlawful for any child who is over the age of twelve (12) years and under the age
of eighteen (18) years, and who has not finished four (4) years of high school work, to
neglect or refuse to attend and comply with the rules of some public, private or other
school, or receive an education by other means for the full term the schools of the district
are in session; provided, that this section shall not apply if any child:
(1) Is prevented from attending school by reason of mental or physical ability, to be
determined by the Board of Education of the district upon a certificate of the school
physician or public health physician or, if no such physician is available, a duly licensed
and practicing physician;
(2 ) ' Is excused from attendance at school, due to an emergency, by the principal
teacher of the school in which the child is enrolled, at the request of the parent,
guardian, custodian or other person having control of such child;
(3) Who has attained his or her sixteenth birthday is excused from attending school by
the school administrator in the school district where the child attends school, and the
parent, guardian or custodian of the child unless and until it has been determined that
such action is for the best interest of the child and /or the community, and that such child
shall thereafter be under the supervision of the parent, guardian or custodian until the
child has reached the age of eighteen.
B. Any child under the age of eighteen (18) years who has been deemed truant by the school
administrator in the school district where the child attends school shall be subject to citation
by a law enforcement officer. A citation for truancy shall require a mandatory appearance
in Municipal Court by the child. A parent, guardian or custodian shall also appear in
Municipal Court with the child.
Proposed Ordinance: Truancy
Page 2
SECTION THREE (3): REPEALER
A. All ordinances, or parts of ordinances, in conflict with this ordinance are hereby repealed to the
extent of the conflict only.
SECTION FOUR (4): SEVERABILITY
B. If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the
remaining portion shall not be affected but shall remain in full force and effect.
SECTION FIVE (5): DECLARING AN EFFECTIVE DATE
C. The provisions of this ordinance shall become effective thirty (30) days from' the date of final
passage as provided by state law.
SECTION SIX (6): CODIFICATION
D. The City of Owasso Code of Ordinances.s hereby amended by adding a new ordinance to be
codified in Part 10, Chapter 4, as section 10= 426:,_
PASSED by the City Council of the City of Owasso, Oki" homa on the day of December, 2010.
Doug Bonebrake, Mayor
ATTEST:
Sherry Bishop, City Clerk.
(SEAL)
APPROVED as to form and legality this day of December, 2010.
Julie Lombardi
City Attorney
2
CITY OF OWASSO, OKLAHOMA
PROPOSED ORDINANCE
AN ORDINANCE RELATING TO PART 15, TRAFFIC AND VEHICLES, CHAPTER 3, VEHICLE EQUIPMENT,
SECTION 15 -308, MANDATORY SEAT BELT USE, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO,
OKLAHOMA, AMENDING SAME BY INCREASING THE AGE REQUIREMENT FOR CHILD PASSENGER
RESTRAINT SYSTEMS FROM FOUR (4) YEARS TO SIX (6) YEARS, TO REFLECT STATE STATUTE LANGUAGE
REGARDING THE SAME.
THIS ORDINANCE AMENDS PART 15, CHAPTER 3, OF THE CITY OF OWASSO CODE OF ORDINANCES BY
AMENDING SECTION 15 -308.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWAS ,OKLAHOMA, THAT, TO -WIT:
SECTION ONE (1): Part Fifteen, Traffic and Vehicles, rr Vehicle Equipment, Section
15 -308, Mandatory Seat Belt Use, of the Code of Ordinanc of Owasso, Oklahoma, shall
be amended as follows:
Section 15 -308 shall be amended to read as follows:
SECTION 15 -308 MANDATORY SEAT BE[JSE 14%hhh._
A. Every operator and fro - passenger of'o pgssV'nger car orated in the city shall wear a
properly adjusted and fa d sdfe y seat belt system, required to be installed in the motor vehicle
when manufactured p. nt to Federal Motor Vehicle Safety Standard 208. For the purposes of this
section, "passenger e =, , shall mean "automobile" as defined in Section 22.1 of Title 47 of the
Oklahoma Statutes exce"-,--.: at "passenger car" shall not include trucks, truck - tractors, recreational
vehicles, vans, motor cycles',or motorized bicycles.
B. This section shall not _apply to an operator or passenger of a passenger car in which the operator
or passenger possesses a written verification from a physician licensed in this state that he is unable
to wr a safety seat belt system for medical reasons. Provided, the issuance of such verification by
a physician, in good faith, shclll'not give rise to, nor shall such physician thereby incur, any liability
whatsoever in damages or otherwise, to any person injured by reason of such failure to wear a
safety seat belt system.
C. This section shall not apply to an operator of a motor vehicle who is a route carrier of the U.S.
Postal Service.
D. (1) Every driver when transporting a child under six (6) years of age in a motor vehicle
operated on the roadways, streets or highways of this city shall provide for the protection
of said child by properly using a child passenger restraint system. "Child passenger
restraint system" means an infant or child passenger restraint system that meets with the
federal standards for crash - tested restraint systems as set by the United States
Department of Transportation.
(2) Children at least six (6) years of age but younger than thirteen (13) years of age shall
be protected by use of a child passenger restraint system or a seat belt.
Proposed Ordinance: Seat Belt Use
Page 2
(3) The provisions of this section shall not apply to:
a. The driver of a school bus, taxicab, moped, motorcycle, or other
motor vehicle not required to be equipped with safety belts pursuant
to state or federal laws;
b. The driver of an ambulance or emergency vehicle;
C. The driver of a vehicle in which all of the seat belts are in use; and,
d. The transportation of children who for medical reasons are unable to
be placed in such devices.
(4) A law enforcement officer is hereby authorized to stop a vehicle if it appears that the
driver of the vehicle has violated the provisions of this section and. to give an oral
warning to said driver. The warning shall advise the driver of the possible danger to
children resulting from the failure to install or use a child passenger restrdint system or
seat belts in the motor vehicle.
E. Any person violating this section shall be
Court and authorized by Oklahoma State
SECTION TWO (2): REPEALER
All ordinances or parts o in confli
extent of the conflict
SECTION THREE (3):
a fine and court cost as determined by the
this ordinance are hereby repealed to the
If any part or parts of this -0TaTnn- 5`iMce care deemed'unconstitutional, invalid or ineffective, the
remaining portion shall not be affected but shall remain in full force and effect.
SECTION, FOUR (4): DECLARING AN EFFECTIVE DATE
The provisions of this ordinance shall become effective thirty (30) days from the date of final passage
as provided by state law.
SECTION FIVE (5): CODIFICATION
This ordinance, as amended, shall be codified in Part 15, Chapter 4, as section 15 -308 in the Owasso
Code of Ordinances.
Proposed Ordinance: Seat Belt Use
Page 3
PASSED by the City Council of the City of Owasso, Oklahoma on the day of
2010.
Doug Bonebrake, Mayor
ATTEST:
Sherry Bishop, City Clerk
(SEAL)
APPROVED as to form and legality this day ofd , 2Q10.
JUHE
City