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HomeMy WebLinkAbout468_Amend the Employee Retirement SystemTULSA COUNTY CLERK - JOAN HASTINGS RCPT 8549 01/05/94 14:00:22 DOC # 94001646 FEE 0.00 PGS 3 6/P 5581/1537-1539 CITY OF OWASSO, OKLAHOMA ORDINANCE NUMBER 468 AN ORDINANCE AMENDING THEEMPLOYEE RETIREMENT SYSTEM DEFINED BENEFIT PLAN OF OWASSO, OKLAHOMA; PROVIDING THEREIN FOR RETIREMENT BENEFITS - -DEATH AND SURVIVOR BENEFITS FOR ELIGIBLE EMPLOYEES OF OWASSO, OKLAHOMA, THEIR SURVIVING SPOUSES AND BENEFICIARIES; MAKING PARTICIPATION BY EMPLOYEES EMPLOYED AFTER THE EFFECTIVE DATE OF THE SYSTEM A MANDATORY CONDITION OF EMPLOYMENT; PROVIDING FOR AN EFFECTIVE DATE, AMENDMENT AND TERMINATION OF SUCH SYSTEM; AUTHORIZING AND RATIFYING EXECUTION OF THE FORMAL INSTRUMENTS AMENDING SUCH SYSTEM; PROVIDING FOR EMPLOYER AND EMPLOYEE CONTRIBUTIONS TO FUND THE BENEFITS, PAY OPERATING EXPENSES, AND FOR PORTABILITY OF BENEFITS OR REFUND OF EMPLOYEE CONTRIBUTIONS UPON EMPLOYEE LEAVING SERVICE; PROVIDING FOR A FUND TO FINANCE THE SYSTEM, TO BE COMBINED OR POOLED BY CONTRACT WITH OTHER INCORPORATED CITIES AND TOWNS WITH SIMILAR FUNDS OF SUCH CITIES AND TOWNS FOR PURPOSES OF MANAGEMENT AND INVESTMENT AS A PART OF THE OKLAHOMA MUNICIPAL RETIREMENT FUND SPONSORED BY THE OKLAHOMA MUNICIPAL LEAGUE; PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS AND FUND ASSETS BY THE TREASURER TO THE OKLAHOMA MUNICIPAL RETIREMENT FUND FOR MANAGEMENT AND INVESTMENT; PROVIDING FOR ADMINISTRATION OF SUCH SYSTEM BY A BOARD OF TRUSTEES AND AN AUTHORIZED AGENT APPOINTED BY THE OWASSO CITY COUNCIL; PROVIDING PENALTIES FOR FRAUD AND DISHONEST CONDUCT; DECLARING THE FUNDS TO BE EXEMPT FROM LEGAL PROCESS; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SEVERABILITY AND SAVING CLAUSE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT: Section One (1). The Employee Retirement System of the City of Owasso, Oklahoma, is hereby amended as reflected on the attached Exhibit "A ", which is incorporated herein and adopted by reference. These amendments shall become effective on the 1st day of July, 1993. Section Two (2). The Employee Retirement System of the City of Owasso, Oklahoma, except as modified in the attached Exhibit "A" shall remain in full force and effect according to its original terms and conditions. Section Three (3). The City Clerk and Mayor be and they are hereby authorized and directed to execute the amended Retirement System Plan documents and to do all the other acts necessary to put said amendment into effect. The executed amended document attached hereto as Exhibit "A" is hereby ratified and confirmed in all respects. Section Four (4). If, regardless of cause, any section, subsection, paragraph, sentence, or clause of this ordinance, including the System as set forth in Exhibit "A" 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. Section Five (5). 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 (i) Section One (1). The Employee Retirement System of the City of Owasso, Oklahoma, is hereby amended as reflected on the attached Exhibit "A ", which is incorporated herein and adopted by reference. These amendments shall become effective on the 1st day of July, 1993. Section Two (2). The Employee Retirement System of the City of Owasso, Oklahoma, except as modified in the attached Exhibit "A" shall remain in full force and effect according to its original terms and conditions. Section Three (3). The City Clerk and Mayor be and they are hereby authorized and directed to execute the amended Retirement System Plan documents and to do all the other acts necessary to put said amendment into effect. The executed amended document attached hereto as Exhibit "A" is hereby ratified and confirmed in all respects. Section Four (4). If, regardless of cause, any section, subsection, paragraph, sentence, or clause of this ordinance, including the System as set forth in Exhibit "A" 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. Section Five (5). 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 (i) 5581 1530 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 Six (6). This ordinance shall, upon passage, take effect thirty (30) days from the date of first publication as provided by state law. DATED this 3rd day of August, 1993. CITY OF OWASSO, OKLAHOMA By: Bob Randolph, Mayor ATTEST: Sherry Bishop, City Clerk APPROVED AS TO FORM: Ronald D Cates, City Attorney Affidavit Of Publication KATIE: OF OKLAHOMA TULSA COUNT. Y, ss. Bill R. Retherford, of lawful age, being duly sworn and authorized, says that he is the publisher of the OWASSO REPORTER a weekly panted in t"he City of OWASSC' 'DAsa County, Olk"PlIorna, a new,9paper qualified to legal notices, advert' blications a s provided in Section 106 of Title 25, Oklahoma Stall ales i971 and 1983 as amended, and thereafter, and comphes with, all other requirements of the laws ofGlklalioma widh reference to legal publications. Inat said notice, a true copy of which J.'s attached hereto, was published in the regular edition of said newspaper during the pe�od and time of publication and not in, a supplement, on the following dares: AUGUST 12, ,1993 this 12th day of August,1993 Notary Public My comitission.expires: March 20, 1997 PUBLISHER'S FEE$ 57.35 — Published In the Owasso Reporter, Owasso, Tulsa County, Okla- hom August 12, 1993. CITY OF OWASSO, I OKLAHOMA ORDINANCE NO. 468 AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM DEFINED BENEFIT PLAN OF OWASSO, OKLAHOMA; PROVIDING THEREIN FOR RETIREMENT BENEFITS,--DEATH AND SURVIVOR. BENEFITS FOR ELIGIBLE EMPLOYEES OF OWASSO, OKLAHOMA, THEIR SURVIVING SPOUSES AND BEN- EFICIARIES; MAKING PARTICIPA- TION BY EMPLOYEES EMPLOYED AFTER THE EFFEC- TIVE DATE OF THE SYSTEM A MANDATORY CONDITION OF EMPLOYMENT, PROVIDING FOR AN EFFECTIVE DATE, AMEND- MENT AND TERMINATION OF SUCH SYSTEM; AUTHORIZING AND RATIFYING EXECUTION OF THE FORMAL INSTRUMENTS AMENDING SUCH SYSTEM; PROVIDING FOR EMPLOYER AND EMPLOYEE CONTRIBU- TIONS TO FUND THE BENEFITS, PAY OPERATING EXPENSES, AND FOR PORTABILITY OF BEN- EFITS OR REFUND OF EMPLOY- EE CONTRIBUTIONS UPON EMPLOYEE LEAVING SERVICE; PROVIDING FORA FUND TO FINANCE THE SYSTEM, TO BE COMBINED OR POOLED BY CONTRACT WITH OTHER INCORPORATED CITIES AND TOWNS WITH SIMILAR FUNDS OF SUCH CITY AND TOWNS FOR PURPOSES OF MANAGEMENT AND INVESTMENT AS A PART OF THE OKLAHOMA - MUNICIPAL RETIREMENT FUND SPON- SORED BY THE OKLAHOMA BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT- Section One (1). The Employee Retirement System of the City of Owasso, Oklahoma. Is hereby amended as reflected on the attached Exhibit "A, which Is incor- porated 'herein and adopted by ref- erence. These amendments shall become effective on the I st day of July, 1991 Section Two (2). The Employee Retirement System of the City of Owasso, Oklahoma, except as modified in the attached Exhibit "A" shall remain In full force and affect according to its original terms and conditions. Section Three (3). The City Clerk and Mayor be and they are hereby authorized and directed to execute the amended Retirement System Plan documents and tondo all the other acts necessary to put said amendment into'effect. The execut- ed amended document attached hereto as Exhibit 'A' Is hereby rati- fled and confirmed In all respects. Section Four (4). 9, regardless of cause, any section, subsection, paragraph, sentence, or clause of this ordinance, including the Sys- tem as set forth in Exhibit 'A" is hold Invalid or to be unconstitution- al. the remaining sections, subsec- tions, paragraphs, sentences, or clauses shall continue In full force and effect and shall be construed thereafter as being the entire provi- sions of this ordinance. Section Five (5). Any ordinance Inconsistent with the terms and pro- visions of this ordinance Is hereby repealed; provided, however, that such repeat shall be only to the extent of such inconsistency and in all other respects this ordinance shall be cumulative of other ordi- nances regulating and governing the subject matter covered by this ordinance. FOR PAYMENT OF ALL CONTRI- shall upon ' * pa" ssage, take effect BUTIONS AND FUND ASSETS BY thirty (30) days from the date of first THE TREASURER TO THE OKLA- publication as provided by state HOMA MUNICIPAL RETIREMENT law. FUND FOR MANAGEMENT AND DATED this 3rd day of August, INVESTMENT; PROVIDING FOR 1993, ADMINISTRATION OF SUCH SYS- CITY OF OWASSO, OKLA- TEM BY A BOARD OF TRUSTEES HOMA AND AN AUTHORIZED AGENT APPOINTED BY THE OWASSO By: is/ Bob Randolph CITY COUNCIL; PROVIDING Bob Randolph, Mayor PENALTIES FOR FRAUD AND DISHONEST CONDUCT; ATTEST: /s/ Sherry Bishop DECLARING THE FUNDS TO BE Sherry Bishop, City Clerk EXEMPT FROM LEGAL PRO- CESS; REPEALING ALL ORDI- APPROVED AS TO FORM: NANCES OR PARTS OF ORDI- /a/ Ronald D. Cates NANCES IN CONFLICT HERE- WITH; PROVIDING A SEVERABIL- Ronald V. Cates, City Attorney ITY AND SAVING CLAUSE. TO: THE HONORABLE MAYOR AND CITY COUNCJ CITY OF OWASSO FROM: MICHELE DEMPSTER PERSONNEL SUBJECT: OKLAHOMA MUNICIPAL RETIREMENT FUND DATE: July 26, 1993 The Oklahoma Municipal Retirement Fund is a system by which City or Town, governments and municipally owned hospitals in Oklahoma are authorized by law to "pool" or "join' funds to provide for the retirement of their employees. The system was created on July 1, 1966, wiht 24 cities and towns as it s initial members. the City of Owasso became a member in July of 1972. All employees of the City of Owasso who do not participate in a state mandated retirement system, such as police and fire, participate in OMRF's Defined Benefit Plan BB< with a 5 year vesting period. Our Defined Benefit Plan pays benefits to retirees based on the average of the first highest consecutive annual salaties out of the last ten calendar years of service. An actuary is engaged by OMRF every two years to compute the contribution level necessary to provide funding for the benefits we offer. The total contributions needed according to our 1993 actuarial is 6.11 % of payroll for all participating employees. This is a slight reduction from the 6.42% that was required for 1992-93. According to Ordinance #455 adopted by Council June of 1992, the employee contirbues 60 % of the required contributions and the City's portion is the remaining 40%. Therefore, for 1993-94 each participating employee will contribute 3.67% of their gross Oay and the City will contribute 2.44%. COMMENTS Anytime there is a change inour plan it is necessary for the City Council to approve and sign new Joinder Agreements and Ordinances. The change inthe contribution reate is just one of the modifications that has beenmade to our plan. Attached is an outline of specific changes that have been made to the Master Benefit Plan. Some of these changes were required by the IRS, and others are changes that have been made by OMFR for clarification of benefits and simplification in administration. These changes have been reviewed by the staff and the staff has determined that these changes will not have an adverse impact on our plan or our employees. The noted changes have also been received and reviewed by Mr. Ron Cates. The staff recommends Council approval of the attached Joinder Agreement and Ordinance. (There are three copies of each to be signed.) RECOMMENDATION The staff recommends Council approval of the attached Joinder Agreement and ordinance. (There are three copies of each to be signed.) ATTACHMENT 1 . Outline of Specific Changes 2. OMRF Master Defined Benefit Plan and Trust as Amended and Restated July 1,1992 3. OMRF Master Defined Benefit Plan and Trust Joinder Agreement (3) 4. Ordinances (3) OUTLINE OF SPECIFIC CHANGES IN OMRF REVISED AND RESTATED DEFINED BENEFIT PLAN DOCUMENT ARTICL II 2.1 (b) Actuarial Equivalent - added the actuarial mortality table and interest rate (g) Code - Changed year of Internal Revenue Code from 1954 to 1986 (h) Compensation - Excluded referance (unless employee contributions are made). Added paragraph defining compensation in excess of $200,000 (i) Added 415 Compensation Definition (j) Added Highly Compensation Employee definition (r) Municipality - redefined (s) Normal Retirement Data - Eliminated reference to completion of ten years service and added ' the date he has satisfied the vesting requirements specified in the joinder agreement to become 100% vested (y) Retirement - reference to authorized leave of absence deleted. ARTICLE III 3.1 Contributions by Employers - deleted 100% vesting if vontributi9ons suspended. 3.2 Contributions by Employees - eliminated section (b) 3.4 Refund of Contributions - changed languate from as soon as practiable to administratively feasible ARTICLE IV 4.1 Normal Pension - eliminated reference to completion of ten years service and added has met the 100% vesting requirements. Deleted last sentence in 4.1. 4.2 Early Pension - eliminated ten years service reference to 100% vesting reference. Also deleted sentence "If the retired Employee dies before the date fixed for commencement of payments of his Early pension, no Early Pension shall be paid to or for him" 4.3 Disability Pension - eliminated ten year service reference to 100% vesting reference 4.4 Deferred Vested Pension - eliminated ten years service reference from 100% vesting reference. Eliminated "the Eployer has elected the Early Payments Option in the Joinder Agreement" Also deleted last two sentences in reference to Employee dying before the date fixed for commencement etc. ARTICEL V 5.1 A. Basic Formula (b) deleted - plus 1/2 of that portion of his Average Monthly Compensation which is in excess of $550. 5.1 B. Normal Pension Cost of living Adjustment - Changed from january to January instead of July to July 5.2 Early Pension A. Basic Formula - changed reduction percentage and period of time 5.3 Disability Pension A. Basic Formula - added "at normal retirement date and initial reduction, if any, shall be added to the Disability Pension currently being paidl" 5.4 Deferred Vested Pension A. Basic Formula - changed reduction percentage and period of time ARTIVE VI 6.1 Severance Benefit - payment of benefit in lump sum changed from "not later than ninety days to administratively feasible" 6.2 Death Prior to Commencement of Pension - first sentence changed to an amount equal to the accrued Benefit asif the Employee had attained Normal Retirement age at the time of his death 6.3 Death After Commencement of Pension A. Normal Pension, Early Pension or Deferred Vested Pension - Eliminated "or, if elected in Section 8 of the Joinder Agreement" c. Deferred Vested Pension - deleted 6.4 Spouse's Pension A.1. eligibility Requirements - eliminated ten year service reference to 100% vesting reference. c. Post-Terminiation - deleted first sentence reference to "if the Employer elects, in the Joinder Agreement, tohave this section apply" ARTICEL VII 7.2 Other Forms of Payment Option F - Lump sum Payment, second paragraph, Interest rate changed form 6% to 7 1/2 %. 7.3 Restrictions on Optional Forms - deleted time request for joint & Survivor Option ARTICLE VIII 8.1 Transfer From This System Section A.2. changed wording and indicated that Employee will not continue to accrue Service for the purpose of meeting eligibility requirements for benefits under this System 8.2 Tranfers to This System Section A, changed wording and indicated Employee's service accrued by virtue of prior employment shall not be counted in determining his eligibility for benefits. 10.3 maximum Annual Benefit Under Code Section 415 Represents all new language and eliminates old Section 10.3 - Restrictions on 25 highest paid employees 10.4 Adjustment to Annual Benefit and Limitations new section 10.5 Annual Benefit not in excess of $10,000 new section 10.6 Participation or service reduction new section 10.7 Multiple Plan reduction new section 10.8 Incorporation by reference new section OKLAHOMA MUNICIPAL RETIREMENT SYSTEM MASTER DEFINED BENEFIT PLAN AND TRUST AS AMENDED AND RESTATED JULY 1, 1992 OKLAROMA MUNICIPAL RETIREMENT SYSTEM IAASTER DEFINED BENEFIT PLAN AND TRUST T4BLE OF CONTENTS Page ARTICLE I Purpose and organization 1.1 - Purpose 1.2 - Parties ARTICLE 11 Definitions and Construction 2 2.1 - Definitions 2 2.2 - Construction ARTICLE III Contributions 9 3.1 - Contributions by Employer 9 3.2 - Contributions by Employees 9 3.3 - Pick-up Contributions 11 3.4 - Transfer of Contributions 11 ARTICLE IV Requirements for 'Retirement Benefits 12 4.1 - Normal Pension 12 4.2 - Early Pension 12 4.3 - Disability Pension 12 4.4 - Deferred Vested Pension 13 4.5 - Pensions for Former 'employees 14 ARTICLE V Amount of Retirement Benefits 15 5.1 - Normal Pension 15 5.2 - Early Pension 15 5.3 - Disability Pension 16 5.4 - Deferred Vested Pension 16 5.5 - Accrued Credits and Vested Benefits 17 ARTICLE VI Severance and Death 18 6.1 - Severance Benefit 18 6.2 - Death Prior to Commencement of Pension 18 6.3 - Death After Commencement of Pension 19 6.4 - spouse's Pension 21 6.5 - Designation of Beneficiary 23 6.6 - Severance of Death Benefits for Former Employees 23 ARTICLE VII Optional Retirement 24 7.1 - Joint and Survivor Options 24 7.2 - Other Forms of Payment, 25 7.3 - Restrictions on Optional Forms 26 7.4 - Other Benefits Cancelled by Option 26 7.5 - Options by Former Employers 26 OKLAROMA MUNICIPAL RETIREMENT SYSTEM MASTER DEFINED BENEFIT PLAN AND TRUST TABLE OF COEEENTS (Cont-d) Page ARTICLE VIII Employment Transfers 27 8.1 - Transfers From This System 27 8.2 - Transfers To This System 28 8.3 - Notice of Transfers 28 ARTICLE IX Administration 4 29 9.1 - Administration 29 9.2 - Bonds 33 9.3 - Benefit Payments 33 9.4 - Unclaimed Benefits 33 ARTICLE X Limitation 35 10.1 - Loss of Benefits for Cause 35 10.2 - Annual Benefit 10.3 - Maximum Annual Benefit under Code Section 415 35 10.4 - Adjustments to Annual Benefit and Limitations 37 10.5 - Annual Benefit Not in Excess of $10,000 39 10.6 - Participation or Service Reductions. 39 10.7 - Multiple Plan Reduction 39 10.8 - incorporation by Reference 42 10.9 - Re-employment of Former Employees 42 10.10- Re-employment of Retired -Employees 42 ARTICLE XIII Term 13.1 13.2 13.3 13.4 13.5 13.6 Termination 46 - Right to Terminate 46 - Liquidation of Fund 46 - Manner of Distribution 47 - Residual 47 - Consolidation or Merger 48 APPENDIXI 50 ARTICLE 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 regular, full-time Employees of the Employer, as hereinafter defined, who complete a period of faith- ful service and become eligible hereunder, and to the extent pay- ments are made as a result of total and Permanent Disability, to qualify as an accident or health plan within the meaning of Section 105 of the code in addition to qualifing under Section 401(a) and 501 (a) of the code. 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 eastablished 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 Master Plan for the benefit of Employ ees of those Employers, as defied 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 Master Defined Benefit Plan and Master Fund by reference. 2.1 Definitions: Where the following words and phrases appear in this System, 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, regard- less of his vested status, determined as if he had then terminated employment. (b) Actuarial Equivalent: ''quality in value of the aggre- gate amounts expected to be received under different forms of pay- ment. The determination of such equality will be based on the use of the 1983 Group Annuity Table for males and 7 1/2% interest. (c) Administrator: The person appointed by the Trustees to supervise operation of the Oklahoma Municipal r4etirement Fund and to assist participating municipalities in the adoption and operation of their retirement systems thereunder. (d) Authorized Agent: The City Clerk of the 7mpioyer or such other person designated by the employer to carry out the efficient operation of the System at the local level. (e) Average Monthly Compensation: The result obtained by dividing the total compensation (as defined below) 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 sixty (60) consecutive months within the last one hundred twenty (120) completed months of service which yield the highest average compensation. (f) City Council: The City Council (or Board of Trustees) or other duly qualified and acting governing authority of the Employer. (g) Code: The internal 7evenue Code of 1986, as amended from time to time. (h) Compensation: the total cash remuneration paid to an employee by the employer for personal services as reported on the employee's federal income tax withholding statement or statements (form w-2 or its subsequent equivalent), exlcuding, however, any extraordinary severance payments, such as accrued vacation or sick pay, and excluding special payments, such as moving expenses, and benefits provided under any employer sponsored employee benefit program. for purposes or determining an employee's compensation, any election by such employee to redue his regular cash remuneration under Code Section 125, 401(k), 414 (h) or 457 shall be disregarded. Compensation in excess of $200,000 shall be disregarded. Such amount shall be adjusted at the same time and in such manner as permitted under code section 415(d). in applying this limitation the famly group of a highly compensated participant who is subjec to the family member aggregation of code section 414(q)(6) becuase such participat is etiher a "five percent owner" of the employer or one of the ten (10) highly compensated employees paid as a single participant, except that for this purpose family members shall include only the affected participant's spouse and any lineal descendants who have not attained age ninteen (19) before the close of the year. if as a result of the application of such rules the adjusted $200,000 limitation is exceeded, then the limitation shall be prorated among the affected familiy members in proportion to each such family member's compensation prior to the application of this limitation. (i) 415 Compensation: Compensation as defined in Section 10.3(b). (j) Highly Compensated Employee: An 7mployee described in Code Section 414(q) and the Regulations thereunder, and generally means an Employee who performed services for the Pmployer during the "determination year" and is in one or more of the following groups: (1) Employees who received "415 Compensation" during the "look-back year" from the 'Pmployer in excess of $75,000. (2) Employees who received "415 Compensation" during the 'loosc-bacK year" from the Employer in excess of $50,000 and were in the Top Paid Group of Employees for the Plan Year. (3) Employees who during the "look-back year" were officers of the Employer (as that tqrm is defined within the meaning of the Regulations under Code Section 416) and received "415 Compensa- tion" during the "look-back year" from the Employer greater than 50 percent of the limit in effect under Code Section 415(b)(1)(k) for any such Plan Year. The number of officers shall be limited to the lesser of (i) 50 employees; or (ii) the greater of 3 employees or 10 percent of all employees. (4) Employees who are in the group consisting of the 100 Employees paid the greatest 11415 Compensation" during the "deter- mination year" and are also described in (1), (2) or (3) above when these paragraphs are modified to substitute "determination year" for "look-back year". The "determination yearn shall be the Plan Year for which testing is being performed, and the %nlooK-back year" shall be the immediately preceding twelve-month period. Por purposes of this Section, the determination of "415 Compensation" shall be based only on 11415 Compensation" which is actually paid and shall be made by including amounts that would otherwise be excluded from a Participant's gross income by reason of the application of Code Sections 125, 402(a)(8), 402( =q)(1)(B) and, in the case of Employer contributions made pursuant to a salary reduction agreement, by including amounts that would other- wise be excluded from a Participant's gross income by reason of the application of Coae section 403(b)® Additionally, the dollar threshold amounts specified in (1) and (2) above shall be adjust- ed at such time and in such manner as if provided in Regulations. Tn the case of such an adjustment, the dollar limits which shall be applied are those for the calendar year in which the I'deter- mination year" or "look-back year" begins. Tn determining who is a Righly Compensated Employee, Employees who are non-resident aliens and who received no earned income (within the meaning of Code Section 911(4)(2)) from the Employer constituting United States source income within the meaning of Code Section 861(a)(3) shall not be treated as Employees. Additionally, all affiliated 7inployers shall be taken into account as a single employer and Leased Employees within the meaning of Code Section 414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased Employees are covered by a plan described in Code Section 414(n)(5) and are not covered in any qualified plan maintained by the Pmployer. The exclusion of Leased Employees for this purpose shall be applied on a uniform and consistent basis for all the Employer's retirement plans, Fighly Compensated Former employees shall be treated as =ighly Compensated Employees without regard to whether they performed services during the "determination year". (k) Contribution Accumulations: The Employee's aggregate contributions, plus interset thereon accrued at the rate of six percent (6%) per annum, 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 1/2%) per annum. (l) Disablility: A physical or mental condition which, in the judgment ofthe Retirement Committee, totally and presumably permanently prevents an employee from engaging in any substantial gainful employment. A determination of such disability shall be based upon competent medical evidence. (m) Effective Date: The later of (i) the date specified inthe Joinder Agreement, or (ii) the first day on which the plan has a participant. (n) Employer: A Municipality chartered, incorporated or formed under the laws of the State of Oklahoma which executes the Joinder Agreement. (o) Fund: The fund established to provide the benefits under the system for the exclusive benfit of the employees included in the system, and which will be pooled with similar funds or other incorporated cities and towns of Oklahoma as a part of Oklahoma municipal retirement fund, for purposes of pooled management and investment. (p) Joinder Agreement: The agreement by which the employer adopts this plan and fund as its plan and fund. (q) Limitation Year: The twelve (12) consecutive month period ending on December 31st of each year. (r) Municipality: (1) each and every incorporated municipality in the state of oklahoma; (2) public trusts haing municipality(ies) as beneficiary(ies); (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 a plan or system as herein defined and which has become a participant in this trust according to the terms hereof. 5 (s) Normal Retirement Date: The later of (i) the effect- ive date, or (ii) the first day of the month coincident with or next following the later of the retirement age as designated in the Joinder Agreement, Section 5c, (iii) the date he has satisfied the vesting requirements specified in the Joinder Agreement to become 100% vested. (t) Oklahoma Municipal Retirement Fund® The trust (spon- sored by the Oklahoma -municipal League) 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 Oxlahoma for purposes of management and investment, represented by and acting through its Board of Trustees® (u) Participant: kny Employee or former Employee who meets the eligibility requirements and is covered under the system. (v) Pension: A series of monthly amounts which are pay- able to a person who is entitled to receive benefits under the System. (w) 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. (X) Previous Plan: The plan if any, being replaced and continued without interruption by adoption of a new Joinder Agree- ment. (y) 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. (z) Retirement Committee: The members of the City Council of the Fmployer who are designated hereunder to serve as the Board of Trustees to administer the system and Fund. 14 (aa) 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. Break in service meanss 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 Section3121(a) of the code unless the partici pant is on an 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) service includes employment with a municipality other than the employer prior to the time that the other municipality adopted the oklahoma municipal retirement fund if the other municipalty credits that past service under its plan; and (ii) Service for the Employer does not include employment with any Municipality if that service would not be included under the Municip- ality shall be credited as only one period of service. (3) Any leave of service which is authorized by the Employer in accordance with its uniform leave policy 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 absence during which the Employee's full compensation is continued and contributions to the fund are continued at the same rate and made for or for him, but credit for service with the employer shall not be granted for any period of authorized, conpaid 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 participation for the contributions to be continued at the same rate and made by him or on his behalf during such absence. (4) The expiration of the term of office of an elected official shall not be considered as interrupting continuity of employment, :1 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 Fmployee shall include fractional portions of a year® Credit for service with the Pmployer shall not be granted for any period subsequent to the Effective Date during which the Employee did not participate in the System and Employee contributions to the System and Fund were not made by or for him. (bb) System or Retirement System: Employee Retirement System of the adoptive Employer, the retirement system set foctih herein, as amended from time to time® (cc) Trustee: The Trustees appointed pursuant to the -rust Indenture establishing the Oklahoma Municipal Retirement 7und, (dd) U. S. Consumer Price Index: The Consumer Price Index for all items as reported in the Monthly Tabor Review for the month of June of the immediately preceding fiscal year as publish- ed by the United States Department of Tabor® The index to be used shall be the average of the computed and reported indices for all items for oKlanoma for the most recent twelve-month fiscal oeriod for which such information is published in said June issue. 2.2 Construction: The masculine gender, where appearing in the System, 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" snail mean and refer to the entire System, not to any particular provision or section. ARTICLE III Contributions 3.1 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 systems actuarial firm. all contributions made by the employer to the fund shall be paid to the city treasurer as treasurer of the system shall be irrevocable and shall be used for the exclusive benefit of the employees covered by the system to pay benefits under the system, or to pay expenses of the system and fund. forfeitures arising becuase 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 system, not to increase the benefits otherwise payable to the employees. 3 .2 Contributions by Employees: unless an Employer selects the Non-Contributory option, each Employee shall contribute to the cost of providing benefits under this System while he remains an employee. Such annual contributions shall be the product of the percentage contained in Section 6 of the Joinder Agreement for the Plan Option selected in Section 5 of the Joinder Agreement. 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® (Tn any event a Parti- cipant shall be deemed to consent and agree to the payroll deduct- ions as provided for herein.) if an Employee is granted a non-paid leave of absence authorized for any reason, his continued participation in the System 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 E'mployee's Compensation shall be deemed to have continued at the same rate for the purpose of computing the Employeels'Average Monthly Compensation. 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 System as of the date on which he is first eligible by signing a written notice of participation agreeing to oe 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 kgreement hereof, and he shall be subject to all other provisions of the System beginn- ing on such date® For each Employee who becomes a Participant in this System 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® Por each Employee who becomes a Participant in this System 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 contribu- tor 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 10 3.3 Pick-up Contributions: if the Employer elects the Pick-Up Option in the Joinder Agreement, all Participants shall be requir- ed to maze 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 cont- ributions shall be excluded from the Participant ®s gross income for federal income tax purposes and from wages for purposes of witnholdin,4 under Sections 3401 through 3404 of the Code in the taxable year in which contributed® No Participant shall have the option. or receiving the contributed amounts directly as compensa- tion® Contributions made by the 7mployer under this election shall be designated as 'Employee contributions for purposes of vesting, and determining Employee rights and the Employee's Cont- ribution Accumulation. 3.4 Transfer of Contributions: All Fmployer and 'Employee cont- ributions shall be directly or immediately allocated, paid or delivered to the City Treasurer; as Treasurer of the System. Such contributions shall be transferred and transmitted by the City Treasurer to the Oklahoma municipal Retirement Fund for credit to the Fund as soon as administratively feasible. M 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 65th birthday, 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, and the last payment shall oe made as of the first day of the month, in which the death of the retired Employee occurs; provided however, that at the time of his death, if the retired 'Employee has received less than the number of monthly payments elected by the Employer in Section 5 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. 4.2 Early Pension: An Employee may elect early Petirement 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 Fmployee's Mormal Retirement Date. T;owever, if an 7mployee requests the 'Retirement Committee to authorize the commencement of his :arty 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 tne retired Employee occurs; provided however, that if the retired Employee has received less than the monthly payments as elected in Section 5 of the Joinder Agreement at the tune 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 N-ormal 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 12 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 Tiormal 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 Retirement Committee, the Retirement Committee finds that the Employee has a physical or mental condition which totally and presumably permanently prevents him from engaging in any suoscantiai gainful employment with the Employer® -Notwithstanding any other provisions of this Section, no Employee shall qualify for a Disability pension if the Retirement Commit- tee determines that his Disability results from (a) chronic 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 disabililty 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 Retirement Committee to be For the primary purpose of rehabilitation or not incompatible with a finding of total and permanent Disability, or (b) has suff- iciently recovered, in the opinion of the Retirement Committee based on a medical examination by a doctor or clinic appointed by the Retirement Committee to be able to engage in regular employ- ment with the Employer and refuses an offer of employment by the Employer, or (c) refuses to undergo any medical examination requested by the Retirement Committee provided that a medical examination shall not be required more frequently than twice in any calendar year. ,f Disability ceases before a retired Rmployee attains his Normal Retirement Date and the Employee is re-employed by the Employer, the Pension payable upon his subsequent Retirement shall be deter- mined in accordance with the provisions of Section 10.9. 4.4 Deferred Vested Pensionsn 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 require- ments. Payment of a Deferred Vested Pension shall commence as of the Employee's Normal Retirement Date. 7owever, if the Employee requests the Committee to authorize the commencement of his Deferred Vested Pension as of the first day of the month 0 coinciding with or next following his 55th birthday, or as of th first day of any subsequent month which precedes his wormal Retirement Date, his Pension shall commence as of the first day the month so requested, but the amount thereof shall be reduced provided in Section 5.4. 4.5 Pension for former employees: if an employee's service with the employer terminates, but his service continues by virtue of his employment with a municapilty 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 system, if any, in the amounts and on the terms and conditions, as provided in Article VIII, Employment Transfers. ARTICE V Amount of retirement Benefits 5.1 Normal Pension: Z. Basic Formula: An Employee who meets the requirements for a Normal Pension shall receive a monthly amount equal to the product of (a), (b), and (c) as follows: (a) The percentage associated with the Plan Option elected by the Employer in Section 5 of the Joinder Agreement; multiplied by (b) his Average Monthly Compensation; and multiplied by (c) the number of his years of Service credited with the 'Smployer, subject to the limitations in Section 5o of the Joinder Agreement (but not with any other Municipal- Ity). B. Cost-of-Living Adjustment: if the Cost-of-Living option is elected in the Joinder Agreement, the monthly amount of Normal Pension determinea above under subsection k of this Section, or the amount of any optional form of Pension payable in lieu thereof to a retired Employee or his contingent pensioner or beneficiary, shall be increased or decreased annually while payable, commencing wits 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 tnereafter 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(dd)) 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 7,arlY 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 --,mployer prior to 15 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 days in the period between the date as of which the Pension begins and the Normal Retirement Date. A. Basic Formula: An Employee who meets the requirements for a Disability Pension shall receive a monthly amount which shall oe computed in the same manner as a Normal Pension, considering his Compensation and Service credited with the 'Pmployer prior to Retirement. B. Cost-of-Living Adjustment: If the Cost-of ;living Iption 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 5.1B, 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. 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 Defei:red Vested Pension commences prior to the 7.mployee's Normal Retirement Date, the amount determined above shall be reduced by 5% each full year plus 5% pro-rata for the number of days in the period between the date as of which the Pension begins and Normal Retirement Date. 16 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 5.1b, 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 payment sof 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 retireee plan improvment option in the Joinder agreement. 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 trust fund shall cease and he shall be entitled to receive a severance benefit equal in amount to the employee's contribution If any benefit of any other kind is paid under this System to or on behalf of an Employee, no Severance Benefit shall be paid, but shall oe deemed to have been included in the value of the other benefit, unless the total of such other benefit payments finally made stall be less than his Contribution Accumulation 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. 1. Basic Formula: Subject to the further provisions of Sub- paragraph No. 2 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 would have been eligible to receive 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 paragraph shall commence as of the-first day of the month coincident with or next following the Employee's death. Thelast payment shall be the 60th monthly payment made in accordance with this paragraph. 18 Notwithstanding the foregoing, if any Spouse's pension becomes payable under Section 6.4, or if any option 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 cancelled or inapplicable, excep that upon the death of the spouse or the contingent pensioner, his beneficiary or estate shall be paid the excess, if any, of the Employee's contribution Accumlation 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 pensioner. 2. Cost-of-Living Adjustment: If the Cost-ofLiving Option is elected in the Joinder Agreement, the monthly amount of Death Benefit Pension determined above under subparagraph No. 1 of this Subsection 6.2 or the amount of any optional from the Pension payable in lie thereof to the beneficiary or estate entitled thereto, shall be subject to a cost-of-living adjustment in the same manner as provided in subseciton 5.1B. 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 5 of the Joinder Agreement, his beneficiary shall be entitled toa Death Benefit to be provided in the form of a Pension. 1. Basic Formula: subject to the further provisions of sub- paragraph No. 2 of this subsection 6.3A, 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 conincident with or next folling 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 5 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 addtion 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 cancelled and inapplicable, if an optional form of payment is elected and becomes effective under Article V11 hereof. 2. Cost-of-Living Adjustment: if the Cost-of-Living .1ption is elected in the Joinder 'Agreement, the monthly amount of Death Benefit Pension determined above under Subparagraph No. 1 of this Subsection 6.3k 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 5.13. B. Diability Pension: Uon the death of a retied 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 5 of the Joinder Agreement, and before the cessation of his disability if such death occurs prior to his normal retirment 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 futher provision of Sub- paragraph No. 2 of this Subsection 6.3B, 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 at elected in Section 5 of the Joinder Agreement to the retired Employee and the beneficiary, if living, or if deceased, to the estate of the beneficiary. 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 7mployee 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 6a4B® 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 Subparagraph No® I of this Subsection 6,3B shall be subject to a cost-of-living adjustment in the same manner as provided in Subsection 5.1B. 6.4 Spouse's Pension: A. In-Service Death: i. Eligibility Requirements: The surviving spouse of a deceased Employee shall be eligi6le'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 continu- ing in the active Service of the Employer, (b) had met the 100% vesting requirement, (c) had not retired, and (d) was not legally separated from the surviving spouse. 2. Amount of Spouse's Pension: k Surviving spouse who meets the eligibility requirements under Paragraph 1 of Subsection 6.4A 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 Paragraph shall be reduced by one percent (1%) for each such year of age difference in excess of ten (10) years to compen- sate 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 Subparagraph No. 2 of this Subsec- tion 6.04, shall be subject to a cost-of-living adjustment in the same manner as provided in Subsection 5.1B, B. Post-Disability 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 wno had received less than the number of monthly payments as elected in Section 5 of th6 joinder Agreement of such Disability Pension, shall tie eligible for a Spouse's Pension. 21 1. Basic Formula: Subject to the further provisions of sub- paragraph No. 2 of this subsection 6.4B, the amount of such Spouse's Pension shall be equal to the monthly amount of 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 conincident with or next following the retired Employee's date of death. The last payment shall be mae upon the completion of the number of monthly payment sin the aggregate as elected in Section 5 of the Joinder Agreement to the retired Employee and the surving spouse, or if the surviving spouse dies before such completion of payments, and the remaining payments shall bemade to the estate of the deceased spouse. 2. Cost-of-Living Adjustment: if the Cost-of-riving option is -elected in the Joinder Agreement, the monthly amount of Spouse's Pension determined above under Subparagraph No. I of this Subsection 6.4B shall be subject to a cost-of-living adjustment in the same manner as provided in subsection 5.113. C. Post-Termination Death Benefit After Deferred Vested Termination: The surviving spouse of a deceased, retired Employee, --ho 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 Sub- paragraph No. 2 of this Subsection 6.4C, 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 Re-tirament Date and reduced in accordance with Section 5.4 for the period Between the dare and 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 dare of his death, the spouse's pension payable under this paragraph shall be reduced by 1 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 agreeent, the mothly amount of spouse's pension determined above under subparagraph no. 1 of this subsection 6.4 c shall be subject to a cost-of-living adjustment in the same manner as provided in subsection 5.1B. 6.5 Designation of Beneficiary: Each Active or retired Employee may designate a primary beneficiary or beneficiaries and, in addtion, may name a contingent beneficiary or benificiaries to receive any benefit that may become payable under artive VI here- under 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 revoded or chagned at any time and from time to time without notice to any beneficiary, and shall not be effective unless and until filed with the authorized agent. If an Employee fails to designate a benificary, or if no designated beneficiary survies the employee, the death beneift shall be paid to the employee's spouse, if living or to otherwise, to the estate of the employee. Neither the employer, the board of trustees or the fund shall be named as a beneificary. For the purose of this syste, the production of a certifed copy of the death certificate of any employee or other person shall be sufficient evidence of death, and the retirement committee shall be fully protected in relying thereon, in the absence of such proof, the retirement committee may rely upon such other evidance of death as it deems necessary or advisable. 6.6 Severance of Death Benefits for Former employees: if an Employee's service with the empoyer therminates but his servie continues by virtue of his employment with a municipality other than the employer, he his spouse or ther beneificiaries shall only be then, or later become, entitled to, and limited to such rights, beneifts and options of ayn kind, under this syste, if any, in the amounts and on the terms and conditions, as provided in Artilce VIII, Emplyment Transfers. 23 ARTICLE VII Optional Retirement Benefits 7.1 Joint and Survivor Captions 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 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 surviving spouse 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 surviving spouse through the last monthly payment on or prior to such surviving spouse's death. The reduced Pension payable to the Employee shall be ninety-two percent (92%) plus or minus one-half on one percent (0.5%) for each year to the nearest year that his surviving spouse 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% Last Survivor Annuity. ;kn adjusted Pension payable for the joi t lifetime of the Employee and his surviving spouse, 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 survivor during the survivor's lifetime through the last monthly payment on or prior to such survivor'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 W, year that the surviving spouse is older or younger respectively than the Employee multiplied by the Pension payable to the Employee in the normal form. 7.2 other For of Payment: If the Employer has elected in the Joinder Agreement to provide additional optional benefit forms, the Retirement Committee may, in its sole discretion, at the request of an Employee (or contingent pensioner), direct that any benefit provided by the System be paid in one of the following forms, provided that payments to the Employee for 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: Option 0 - 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 1,z' - 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 for-in. Option F - LLump-Sum Payment. Under this form, the payee will receive a single sum payment in cash (or kind, at fair market value); provided, however, if the payee is subject to the restrictions of Section 10.3 hereof, no such payment shall be made until the payee has entered into an agreement properly providing for repayment, and adequate security therefor, in the event such repayment is required in accordance with the applicable anti-dis- crimination rules of Code Section 401(a) No future Cost-of- Liviny adjustments will be made or considered in calculating the payment under this optional form The calculation of amounts payable under Option E and Option P above shall be based on actuarial tables contained in the Appen- dix The underlying interest rate shall be seven and one-half percent ( Annuity contracts purchased under option D above must be priced on a basis deemed not to be discriminatory under Title VTT of the Civil Rights Acz. 25 The Retirement 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 Retirement 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. An Employee may elect, change, or revoKe an option if his election, change, or revocation is filed in writing with the Authorized Agent. 7owever, an election to receive oenefits in one-of the forms described in Section 702 requires Retirement Committee approval. 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 an option without the approval of the Authorized Agent at any time within the six month period next following the adoption of this System by the Employer, provided that the Employee is in the employ of the Employer at the time the election is made. 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 oecome 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 Pmployee during such continued employment, the election shall not become operative. 7.4 Other Benefits Cancelled by option: Any Contribution Accumulation, Pension, Severance, Death, or other benefit that would otherwise have become payable under this plan shall be cancelled 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 becomes operative. 7.5 Options by Former Employee: The provisions of this Article V11 shall be applicable to any former Employees entitled thereto under the provisions of Article VTTT, Employment Transfers, M ARTICLE VITI Employment Transfers 2ke To Another Category with This Employer: If an Employee is employed by the Employer under this System and is transferred to employment with this Employer but under another department, class- ification or category, so that he is no longer eligible to parti- cipate in this System, such participation shall thereupon cease and he shall oe subject to the following rules and requirements relating to this System and his rights and benefits hereunder, to-wit: 1. if he is eligible for a Pension under this System 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 System as of the date of such employment transfer, his Contribution Accumula- tion shall remain in the Fund and will continue to accrue interest but he will not continue to accrue Service for the purpose of meeting eligibility requirements for benefits under this System, and shall not be entitled to credit for Service while not a member under this System for the purpose of computing the amount of any benefit under this System. Any transfer prior to the effective date of this amendment, the Employee will continue to accrue Service for the purpose of meeting the eligibility requirements for benefits under this System, and upon so meeting such eligi- bility requirements for benefits, he or his beneficiaries shall be entitled to such oerief its. B. To Another Municipality: if an Employee's employment by the Employer under this System is terminated by virtue of his transfer to employment with another Municipality, his membership in this System shall thereupon cease and he shall be subject to the following rules and requirements relating to this System and his right and benefits hereunder, to-wit: 1. if he is eligible for a Pension under this System 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 20 14. he is not eligible for a Pension under this System as of the date of such employment transfer, and he is, immediately upon such transfer of employment, covered by the retirement systain M 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 System, but shall not be entitled to credit for Service while not a member under this System for the purpose of computing the amount of any benefit under this System and upon so meeting such eligibility requirements for benefits, he or his beneficiaries shall be entitled to such benefits. 8.2 Transfers to This System: A. From Another Category with This Employer: if a person becomes an Employee and a Participant under this Sys'-eta -immediate- ly 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 System, provided such transfer occurred prior to the adoption of this plan. Any transfer prior to the effective date, such Service shall be counted for determining eligibility for benefits hereunder but not in computing the amount of such benefits. B. From Another Municipality: If a person becomes an Employee and a Participant under this System immediately upon his transfer from full-time, regular employment with a Municipality other than this Employer, his Service accrued by virtue of such prior employ- ment shall be counted in determining his eligibility 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 System. An Employee's eligibility for membership under this System 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. 803 Notice of Transfers: immediately after any transfer of employment referred to in Sect-Ions 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 not-ice in writing of such transfers to the Trust Administrator and the 'Retirement Committee. 28 ARTICLE IX Administration 9.1 Administration: The System shall be administered by a Board of Trustees (herein called the retirement committee) which is hereby created and established and which shall be composed of the Retirement 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 retirement committee in the administration of this fund and system shall be paid by the employer. A. Retirement Committee: The Retirement 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: a to delegate to, specify, direct, and supervise the per - formance of duties of the Authorized Agent, as the agent of the employer and Retirement Committee in matters relating to the System, the Fund, and the Oklahoma Municipal '4etirement Fund, including but not limited to, the duties set forth below in Subsection 9.1B and including any duties of the 'mployer under the System, or as set forth in this Sub- section 9.1A; bo 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; C. to construe and interpret the System, decide all questions of eligibility and determine the amount, manner and time of Payment of any benefits hereunder; d. to Prescribe Procedures to be followed by 7mployees in filing applications for benefits® e. 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; W f. to receive from the Employer, the Trustees, the Trust Administrator and the Authorized Agent, such information as shall be necessary for the proper administration of the System; g, to prepare and distribute, in such manner as it determines to be appropriate, information explaining the System; h. to furnish the Employer, upon request, such annual reports with respect to the administration of the System as are reasonable and appropriate; im to receive and review the valuation report and certification of the System, prepared every other year 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; j. 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; X. to have full power, to manage and control, the System and Fund and to authorize in writing, all payments from the Fund by written direction of the Authorized Agent, or otherwise; and 1a 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 Rmployer, the System., or the City Treasurer, as Treasurer of the System. The Retirement Committee shall have no power to waive or fail to apply any requirements of eligibility for a Pension under the System. The Retirement Committee may adopt such rules, regulations and actuarial tables as it deems necessary or desirable to administer the System. 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 System shall be conclusive and binding upon all persons affected by it and there shall be no appeal from any ruling by the Retirement Committee which is within its authority, M When making a determination or calculation, the Retirement Committee shall be entitled to rely upon information furnished by the Trustees, the Trust Administrator', the Employer, the Authorized Agent, the legal counsel of the Employer, or the actuary for the System. a. to coordinate the deduction of Employee contributions and to see that Employer and Employee contributions are properly received as such by the City Treasurer of the System and by him forwarded promptly to the Oklahoma Municipal Retirement Fund for management and investment; bm to forward any communications directed to Employees and beneficiaries by the Trustees, the Trust administrator or ,is Oklahoma Municipal Retirement Funds; C to lend assistance to Employees and beneficiaries in filing applications for benefits, and in communicating with the Employer, the Retirement Committee and the Trustees or the Trust Administrator of the Oklahoma Municipal Retirement Fund and to forward such communications to the addressees; d. to Keep the Employer and Retirement Committee informed regarding Employer contribution rates and funds required to meet the costs of the System; em to assist the ReticeKilent Committee in determining whether or not Employees are eligible for participation in the Sys Bern; f. to certify at the direction of the Retirement Committee 'Chat an Employee is on an authorized leave of absence, paid or unpaid; 31 g. to file at the direction of the Retirement Committee a petition or nomination, and cast a ballot for election of 'trustees of the Oxlahoma municipal Retirement 'Fund. C. City Treasurer: The City Treasurer of the Employer shall be the Treasurer of the System, and shall perform in such capacity such duties pertinent to the System as may be assigned by the Retirement Committee, including but not limited to, the following: a. to receive and separately account for, payments, appro- priations, apportionments, allocations, payroll deductions, and any other assets, which are for, or consist of contribu- tions or assets under the System for the Pund, -which are imade by the Employer, the Employees, 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 'Pund for management and investment; C. to keep as evidence and permanent records, all such written directions of the Authorized Agent for such transfers and disoursements, 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 Retirement 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 System. D. City Personnel officer: Any City Personnel Officer now or hereafter employed by the Employer, shall assist in the adminis- tration of the business of the System and its proper operation. I;e shall so act under the control and direction of the Authorized Agent, and shall have specific powers and duties including, but not limited to, the following: a. maintain such records including vital statistics on health, age, sex, birth, death, Compensation and length of Service of all the Employees of the 7,moloyer or their beneficiaries who are included in the System or who ace, or may become eligible for such inclusion, as are necessary for the proper adminstration of the System, and furnish such information as is requested by the Autohorized Agent, or is requested by the actuarial firm for preparing valuations and periodic expense analyses; b. notify the Authorized Agent when any Employee is eligible for 'Retirement under the System; and M C. attend meetings of the Retirement Committee while matters pertaining to the system, the Employees or their beneficiaries are under consideration. E Municipal Counselor: The City Attorney of the 'Employer shall be the legal advisor of the Pmployer and the Petirement Committee, and shall represent them in any legal matters, proceed- ings, or litigation. 9.2 Bonds: No oond to secure the performance of administrative duties in the operation of the System and Fund, shall be required of any persons or organizations unless required by law, or unless required by the Trust Indenture establishing The Oklahoma Munici- pal Fund, or unless required by the"Rmployer for any persons or organizations engaged in the administration of the System. if such a bond is required by law, the Trustees or the Employer, the premiums therefor shall be paid as expenses of the Oklahoma municipal Retirement Fund as to its members, agents, employees, municipal Retirement Fund, or as expenses of the Pinployer as to the administration of the System, Any agents, officials of employees of the Employer engaged in the administration for the System shall be covered as to the performance of such administra- tive 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 System, shall oe paid under the direction of the Retirement Committee out of the applicable portion of the nklahoma Municipal 'retirement 'mund, upon written directions of the Retirement Committee acting through the Author- zed Agent. 9.4 Unclaimed Benefits: If at, after or during the time when a benefl.t hereunder is payable to any beneficiary or distributee the "4eticemzent Committee through the Authorized Agent, upon request by the Trustees, the Trust Administrator, or at its own instance, shall mail by registered or certified mail to such ceneficiary or distributee, at his last known address, a written demand for his then address, or for satisfactory evidence of his continued life, or both, and if such beneficiary or distributee shall fail to furnish the same to the Authorized Agent within two (2) years from the mailing of such demand, then the Retirement Committee may, in its sole discretion, determine that such beneficiary or distributee has forfeited his rights to such benefit and may declare such benefit, or any unpaid portion 33 Thereof, terminated as if the death of the distributes (with no suriving beneficiary) had occurred on the date of the last payment made thereon or the date such beneficiary or distributee first became entitled to receive beneift payment, whichever is later. any such declaration by the Retirement Committee may later be revoked, but such revocation shall not entitle the beneficiary or distributee to receive any payments in respect to any period of time prior to the date of such revocation, unless and until such revocation is made, the actuary shall take forfeitures into account to reduce the funding requirements for the system and making subsequent actuarial reports, valuations, and certifications. all such forfeitures shall be and remain assets of the fund and in no event shall they escheat to any governmental until under any escheat law. ARTICLE X LIMITATIONS 10.1 Loss of Benefits for cuase: in the event an employee is discharged becuase of embezzlement, fraud, dishonesty, ormis- appropriation 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 beneificary, shall be entitled to receive any benefit hereunder other than his contribution accumulation as of the dare of his discharge, regardless of his age and service on the dare of his discharge. Likewise, such benefit to which any retired employee or his beneficiary, or the beneifciary of a deceased employee would otherwise be entitled under this system, shall be forgeited upon discovery, event after termination of employent or death, of any such embezzlement, fraud, dishonesty, or misappro- priation of the Employer's property, by the employee against the employer. 10.2 Annual Benefit: For the purposes of this Article, "annual benefit" means the benefit payable annually under the terms of the plan (exclusive of any benefit not required to be considered for purposes of applying the limitations of code section 415 to the ancillary benefit. if the benefit under the plan is payable in any other form the "annual benefit" shall be adjusted to the equi- valent of a straight life annuity. 10.3 Maximum Annual Benefit Under Code Section 415: (a) Notwithstanding the foregoing and subject to the exceptions below, the maximum "annual benefit" payable to a Participant under this Plan in any "limitation year" shall equal the lesser of: Cl) $90,000 or (2) one hundred percent (100%) of the PaxtIci;Dant's "415 Compensation" averaged over the three consecutive "limitation years" for actual number of "limit- ation years" for Employees who have been employed for less than three consecutive "limitation years") during which the 'Imployee had the greatest aggregate 11415 Compensation" from the Employer. (b) For Purposes of applying the limitations of Code Section 415, 11415 Compensation" shall include the Participant's wages, salaries, fees for professional service 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 an Employer maintaining the Plan to the extent that the amounts are includable in gross income (including, but not limited 35 to, commisions paid salesmen, compensation for services on the basis of a precentage or profits, commissions on insurance premiums, tips, bonuses, fringe benefits, reimbursements, and expense allowances, and in the case of a participant who is an employee within the meaning of code section 401(c)(1) and the regulations thereunder, the participant's earned income (as described in code section 401(c)(2) and the regulations there- under)) paid during the "limitation year". "415 Compensation" shall exclude (I)(3 contributions made by the Employer to a plan of deferred compensation to the extent that, before the application of the Code Section 415 limitations to the Plan, the contributions are got includable in the gross income of the Employee for the taxable year in which contributed. (B) contributions made by the Employer to a plan of deferred compensation to the extent that all or a portion of such contribu- tions are recharacterized as a voluntary Employee contribution, (C) Employer contributions made on behalf of an Employee to a simplified employee pension plan described in Code Section 408(k) to the exterit such contributions are excludable from the Employee's gross income, (0) any distributions from a plan of deferred compensation regardless of whether such amounts are includable in the gross income of the Employee when distributed except any amounts received by an Employee pursuant to an unfunded non-qualified plan to the extent such amounts are includable in the gross income of the Employee; (2) amounts realized from the exercise of a non - qualified stock option or when restricted stocK (or property) held by an Employee either becomes freely transfer- able or is no longer subject to a substantial risk of forfeiture; (3) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock opton; and (4) other amounts which receive special tax benefits, such as premiums for group term life insurance (but only to the extent that the premiums are not includable in the gross income of the Employee), or contributions made by the Employer (whether or not under a salary reduction agreement) towards the purchase of any annuity contract described in Code Section 403(b) (whether or not the contributions are excludable from the gross income of the Employee). for the purposes of this Section, the determination of "415 Compensation" shall be made by not including amounts that would otherwise be excluded from a Participant ®s gross income by reason of the application of Code Sections 125, 402(a)(8), 402(h)(1)(B) and, in the case of Employer contributions made pursuant to a salary reduction agreement, Code Section 403(6). 36 (c) For purposes of apploying the limitations of Code Section 415, the "limitation year" shall be the plan year. (d) notstanding anything in this Article to the contrary, if the plan was in existence on May 6, 1986, and had complied at all times with the requirements of Code Section 415, the maximum "annual benefit" for any individual who is a participant as of the first day of the "limitation year" beginning after December 31, 1986, shall not be less than the "current accrued benefit". "Current accrued benefit" shall neam a Participant's Accrued Benefit under the plan, determined as if the Participant had separated from service as of the close of the last "limitation year" beginning before January 1, 1987, when expressed as an annual benefit withinthe meaning of code section 415(b)(2). In determining the amount of a participant's "current accrued benefit", the following shall be disregared: (1) any chagnge in the terms and conditions of the plan after May 5, 1986. (e) The dollar limitation under Code section 415(b)(1)(A) stated in paragraph (a)(1) avoce shall be adjusted annually as provided in Code Section 415(d) pursuant to the regulations. the adjusted limiataion is effective as of January 1st of each calendar year and is applicable to "Limitation year" ending with or within that calendar year. (f) The limitation stated in paragraph (a)(2) above for particpants who have separated from service with a non-forgeitable right to an Accrued Benefit shall be adjusted annually as provided in code Section 415(d) pursuant to the regulations prescribed by the Secretary of the Treasury. (g) For purpose of this Article, all qualified defined benefit plans (whether terminated or not) ever maintained by the Employer shall be treated as one defined benefit plan, and all qualified defined contribution plans (whether terminated or not) ever maintained by the Employer shall be treated as one defined contribution plan. 10.4 Adjustments to Annual Benefit and Limitations: A. If the "annual benefit" begins before the participant's social security retirement age under the social security act, then the $90,000 limitation shall be reduced in such manner as the secretary of the treasury shall prescribe which is consistent with the reduction for old-age insurance benefits commencing before the social security retirement age under the social security act. 37 b. Notwithstanding section 10.4(a) above, for "limitation years" beginning prior to January 1, 1987, the $90,000 limit shall not be reduced if the annual benefit begins on or after age 62. If the "annual Benefit" begins before age 62, the $90,000 limitation shall be reduced so that it is the actuarial equivalent of the $90,000 limitation beginning at age 62. However, the $90,000 limitation shall not e actuarially reducced to less than (1) $75,000 if the "annual benefit" commences on or after age 55, or (2) the amount which is the actuarial equivalent of the $75,000 limitatino at age 55 if the "annual Benefit" commences prior to age 55. for purposes of adjusting the $90,000 limitation applicable prior to age 62 or the $75,000 limitation applicable prior to age 55, the adjustment shall be pade pursuant to Section 2.1(b) except that the interest rate assumption shall be greater of five percent (5%) or the rate specified in Section 2.1(b) and the moratily decrement shall be ignored to the extent that a forfeiture does not occur at death. c. if the "annual benefit" begins before age 62, then the $90,000 limitation shall be reduced so that it is the actuarial equivalent of the $90,000 limitation beginning at age 62. qowever the $90,000 shall not be actuarially reduced to less than: (1) $75,000 if the "annual benefit" commences on or after age 55, or (2) the amount which is the actuarial equivalent of the $75,000 limitation at age 55 if the "annual benefit" commences prior to age 55. For purposes of adjusting the $90,000 limitation applicable prior to age 62 or the $75,000 limitation applicable prior to age 55, the adjustment shall be made pursuant to Section 2.1(b) except that the interest rate assumption shall be the greater of five percent (5%) or the rate specified in Section 2.1(o) and the mortality decrement shall be ignored to the extent that a forfeiture does not occur at death. d. 'If the "annual benefit" begins after age 65, the $90,000 limitation shall be increased so that it is the actuarial equiva- lent of the $90,000 limitation at age 65. e. For purposes of adjusting the "annual benefit" to a straight life annuity, the adjustment shall be made pursuant to Section 2.1(b) except that the interest rate assumption shall be the greater of five percent (5%) or the rate specified in Section 2.1(b). f. For purposes of adjusting the $90,000 limitation applica- ble after the Participant's Social Security -,,etirement kge (or for Plan Years beginning prior to January 1, 1987, age 65), the adjustment shall be made plirsuant to Section 2.1(b) except that the interest rate assumption shall be the lesser of five percent (5%) or the rate specified in Section 2.1(b) and the mortality decrement shall be ignored to the extent that a forfeiture does not occur at death. 38 g. For purposes of Sections 10.2, 10.4(a), and 10.4(b), no adjustments under Code Section 415(4) shall be taken into account before the "limitation yearn for which such adjustment first takes effect. h. For purposes of Section 10.2, no adjustment is required for qualified joint and survivor annuity benefits, pre-retirement death benefits and post-retirement medical benefits. 10.5 Annual Benefit Not In Excess Of $10,000: This Plan may pay an "annual benefit" to any Participant in excess of his maximum "annual benefit" if the "annual benefit" derived from Employer contributions under ths Plan and all other defined benefit plans maintained by the Employer does not in the aggregate exceed $10,000 for the "limitation year" or for any prior "limita- tion year" and the Employer has not at any time maintained a defined contribution plan in which the Participant participated. For purposes of this paragraph, if this Plan provides for voluntary or mandatory Employee contributions, such contributions will not be considered a separate defined contribution plan main- tained by the Fmployer. 10.6 Participation Or Service Reductions: If a Participant has less than ten (10) years of Participation in the Plan at the time he begins to receive benefits under the Plan, the limitations in Sections 10.3(a)(1) and 10.4 shall be reduced by multiplying such limitations by a fraction (a) the numerator of which is the number of years of participation (or part thereof) in the Plan and (n) the denominator of which is ten (10), provided, however, that said fraction shall in no event be less than 1/10th. The limitations of Sections 10.3(a)(2), 10.5 and 10.7(b)(2)(A) and (B) shall be reduced in the same manner except the preceding sentence shall be applied with respect to years of service with the Employer rather than years of participation in the Plan. Additionally, to the extent provided in 'Regulations, the above described reductions to the limitations in sections 10.3(a)(1) (except for purposes of 10.7(b)(2)(U) and 10.4 shall be applied separately with respect to each change in the benefit structure of the Plan, 10.7 Multiple Plan Reduction: (a) -Suoject to the exception in Section 10.7(f) below, if an Employee is (or has been) a Participant in one or more defined benefit plans and one or more defined contribution plans maintained by the 7mployer, the sum of the defined benefit plan fraction and the defined contribution plan fraction for any '61imitation year" may not exceed 1.0. W (b) The defined benefit fraction for any "limitation year" is a fraction (1) the umerator of which is the projected "annual benefit" of the Participant under the Plan (determined as of the close of the "limitation year" pursuant to regulation 1.415-7(b)(3)), and (2) the denominator of which is the greater of the product of 1.25 multiplied by the "annual benefit" described in section 10.3(d) or the lesser of :(A) the procdut of1.25 multiplied by the maximum dollar limitation provided under section 10.3(a)(1) for such "limitation year", or (b) the product of 2.1(B) mutiplied by the amount which may be taken into accounty under section 10.3(a)(2) for such "limitation year) (2) Notwithstanding the foregoing, the numerator of the defined contribution plan fraction shall be adjusted pursuant to Regulation 1.415-7(d)(1) and questions T-6 and T-7 of Internal Revenue Service Notice 83-10. (3) For purposes of this Article, the term "participant's account" shall mean the account established and maintained by the Administrator for each Participant with respect to his total interest in the defined contribution plan maintained by the Employer resulting from "annual additions "® (4) For purposes of this Article, the term nannual addi- tions" shall mean the sum credited to a "participant's account" for any "limitation year" of (A) Employer contributions, (B) Employee contributions, (C) Forfeitures, (0) amounts allocated after March 31, 1984, to an individual medical account, as defined in Code Section 415(1)(2) which is part of a pension or annuity plan maintained by the Employer, and (E) amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to oost- retirement medical benefits allocated to the separate account of a key employee (as defined in Code Section 419A(d)(3)) under a welfare benefit plan (as defined in Code Section 419(e)) maintained by the 'Rmployer: Except, however, the percentage limitation referred to in paragraph 5 below shall not apply to: 40 (1) any contribution for medical benefits (within the meaning of Code Section 419A(f)(2)) after separation from service which is otherwise treated as an "annual addition" or (2) any amount otherwise treated as an "annual addition" under Code Section 415(1)(1) (6) For defined contribution plans in effect on or before July 1, 1982, the Administrator may elect, for any "limitation year" ending after December 31, 1982, that the amount taken into account in the denominator for every Participant for all "limitation years" ending before January 1, 1983 shall be an amount equal to the product of (A) the denominator for the "limitation year', ending in 1982 determined under the law in effect for the "limita- tion year" ending in 1982 multiplied by (B) the "transition fraction". (7) For purposes of the Preceding paragraph, the term "transition -Fraction" shall mean a fraction (A) the numerator of which is the lesser of (i) $51,875 or (ii) 2.1(b) multiplied by twenty-five percent (25%) of the Participant's '1415 Compensation" for the "limitation year" ending in 1981, and (3) the denominator of which is the lesser of (i) $41,500 or (ii) twenty-five percent (25%) of the Participant's "415 Compensation" for the "limitation year" ending in 1981 dthe sum of the defined oenefit plan fraction and the defined contribution plan fraction shall exceed 1.0 in any 111i'mitation year" for any Participant in this Plan for reasons other than described in Section 10.7(e), the Administrator shall adjust the numerator of the defined benefit plan fraction so that the sum of both fractions shall not exceed 1.0 in any "limitation year" for such Participant. 41 (e) If (1) the substitution of 1.00 for 1.25 and $41,500 for $51,875 above or (2) the excess benefit accruates or "annnual" additoins" provided for in Internal Revenue Service Notice 82-19 cause the 1.0 limitation to be exceeded for any participant in any "limitation year", such participant shall be subjec to the following restrictions for each future "limitation year" until the 1.0 limitation is satisfied: (A) the Participant's Accrued Benefit shall not increase (B) no "annual additions" may be credited to a "participant's account" and (C) no Employee contributions (Voluntary or mandatory( shall be made under any defined benefit plan or any defined contribution plan of the employer. 10.8 Incorporation By Reference: Notwithstanding anything contained in this krticle to the contrary, the limitations, adjustments and other requirements prescribed in this 'brticle shall at all times comply with the provisions of Code Section 415 ana the 'Regulations thereunder, the terms of which are specifi- cally incorporated herein by reference. 10.9 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 except as otherwise provided under Article VITT, 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. 10.10 Pe-employment of Retired Employees: If a former Rmployee retired under this System 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 reduced by the Actuarial equivalent of any Pension payments, - except Disability Pension payments, he received prior to his Normal Retirement Date during his previous period of Retirement. 42 ARTICLE XI Guarantees and Liabilities 11.1 Non-Guarantee of Employment: Nothing contained in this System 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 otherwisex except as provided from time to time under this system, and then other to the extend of the benefits payable to such Employee out of the assets of the fund. All payments of benefits as provided for in this system shall be made solely out of the assets of the fund and neither the employer, the trust administrator, the authorized agent, not any individual trustee shall be liable in any manner. 11.3 Non-Alienation of Benefits: The Pund 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 "qualified domestic relations order" as defined in Code Section 414(p)), benefits payable under this System 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 settle- alent Of support of a spouse or former spouse, or for any other relative of the 'Rmployee, 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 oenefits 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. 43 11.4 Disclaimer and Liability: Neither the Employer, the Trust Administrator, the Authorized Agent, the Trustees, not 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 system. The employer shall not be responsible for any act, or failure to act, of the trustees or the trust administrator. 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 System, including expenses reasonably incurred in the defense of any claim relating thereto. 44 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 system, i whole or in part, which do not pemrit reversion of any part of the fund to the employer ecept as provided in section 13.4 and which do not cuase any part of the fund to be used for, or diverted to, any purpose other than the exclusive benefit of employees included in the system. any amendments to this system, 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. 45 ARTICLE XIII Termination 13.1 Right to Terminate: The 7,mployer may at any time terminate the System by proper ordinance and may direct and require the Trustees to liquidate the Pund. If the F.imployer shall for any reason cease to exist, the System shall terminate and the Pund shall be liquidated, unless continued by a successor. 13.2 Liquidaton of Fund: Upon termination of the System 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 exprnses 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 VITT, 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 7,nployee, former 73mpicyee, or other eligible beneficiary. Any such withdrawals on the part of such persons will reduce their interests in distributions under categories (b), Cc), (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), Cc), (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 7mployees entitled thereto under Article VIII, who have reached their Mormall Retire- ment Dates but have not retired. (c) Pensions deferred to Normal Retirement Date for Partici- pation wno have qualified for an TEarly Pension. (d) Pensions deferred to Normal Retirement Date for partici- pants who have qualified for a Deferred Vested Pension, 46 If the funds available in either of catergories (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 cateory (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 catefory 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 be similarly used o the extent available to provide pensions deferred to Normal Retirement age for all other employees under the system or former employees entitled thereto under article VIII, at the time of termination of the plan in proportion to the actuarial value of each such employee's or former employee's accrued credits, on an actuarial equivalent basis as determined by the actuary for the system, as of the date of termination. The benefit any such participation is entitled to receive under this section shall be based on the employee's compensation setvice accrued with the employer prior to the date of terminatino of the system, and his right to such benefit shall be considered as vested regardless of his age and years of service on the date of termination of the system. 13.3 manner of Distribution: any distribution after termination of the system or permanent discontinuance of 7mployer 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 non- transferable life insurance or annuity contracts, as the Retirement 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 Residual Amounts: In no event shall the Employer receive any amounts from the Pund except that, upon termination of the System and notwithstanding any other provision of the System, the employer shall receive such amount, if any, as may be attributable to its contributions and as'may remain after the satisfaction of all liabilities of the System to the Employees or former employees 47 entitled thereto under krticle V111, and arising out of any variations between actual requirements and expected actuarial requirements. It shall be impossible for any part of the 7und to be used for or diverted to purposes other than the exclusive and sole benefit of the wmployees, such former P.mployees, or their beneficiaries. 13.5 Consolidation or Merger: Upon the employer's liquidation, bankrupcy, insolvence, sale, consolidation, or merger to or with another governmental unit in which such employer is not the surviving unit, the system 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 system, or by the establishment of a separate system to which the fund assets shall be transferred with the consent and agreement of the employer. 13.6 Limitations: The order of priorities for distribution set forth above in Section 13.2, in the event of termination of the System 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 krticle X become effective or the Commissioner 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 krticle X or of the Commissioner as the case may be. 48 IN WITNESS WHEREOF, and as conclusive evidence of the adoption of the foregoing instrument comprising the Oklahoma municipal Retirement System Master Defined Benefit Plan, the System, 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 4-day of STATE OF OKLAqOMA) )ss. COUNTY OF By BEFORE ME, the undersigned a Ntotary Public in and for said County and State, on this day of personally appeared to Me known to be the identical person who SUbscribed the name of the Oklahoma Municipal Retirement System, a municipal corporation, to the foregoing instrument as its Mayor 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 07 OFFICR, the day and year last above written. My CoMmiss ion Expires: (NOTARY SEAL) Notary Public 49 APPENDIX I The following pages contain the actuarial factors needed to determine Actuarially Equivalent options under the Plan, 50 t RMAL FORM. LIFE ANNUITY WITH 5 YEARS CERTAIN 5 yea.-- Deferred Age K &life To Age 55 20 13.52554 0.84093 21 13.50397 0.90430 22 13.43037 0.97245 23 13.45644 1.04576 24 13.43029 1.12462 25 13.40242 1.20944 26 13.37271 1.30068 27 13.34107 1.39884 28 13.30736 1.50443 29 13.27147 1.61805 30 13.23325 1.74029 31 13.19258 1.87182 32 13.14932 2.01336 33 13.10331 2.15569 34 13.05439 2.32964 35 13.00238 2.50612 36 12.94724 2.69614 37 12.38856 2.90068 38 12.32621 3.12091 39 12.76008 3,35808 40 12.62005 3.61355 41 12.61605 3.88883 42 12.53799 4.18554 43 12.45582 4.50548 44 12.36951 4.85066 45 12.27903 5.22322 46 11-2.18435 5.62560 47 12.08544 6.06044 48 11.98221 6.53066 49 11,87453 7.03943 50 11.76222 7.59024 51 11.64503 8.18688 52 11.52265 8.83350 53 11.39478 9.53467 54 11.26106 10.29537 55 11.12117 11.12117 56 10.97473 10.97478 57 10.82159 10.82159 58 10.66145 10.66145 59 10.49434 10.49434 60 10.32039 10.32039 61 10.13991 10.13991 -62 9.95332 9.95332 63 9.76116 9.76118 64 9.56419 9.56419 65 9.36310 9.36310 66 9.15871 9.15871 67 8.95176 8.95176 68 8.74283 8.74283 69 8.53235 8.53235 70 8.32065 8.32065 71 8.10802 8.10802 72 7.89485 7.89485 73 7.68188 7 74 7.47013 7.47013 75 7.26086 7.26086 76 7.05545 7.05545 77 6.85525 6.85525 78 6.66140 6.66140 79 6.47473 8.47473 80 6.29580 6.29580 81 6.12490 6.12490 82 5.96211 5.96211 83 5.80738 5.80738 84 5.66051 5.66051 85 5.52126 5.52126 86 5.38942 5.38942 87 5.26512 5.26512 88 5.14823 5.14823 39 5.03864 5.03864 90 4.93649 4.93649 91 4.84207 4.84207 92 4.75535 4.75535 93 4.67591 4.67591 94 4.60337 4.60337 95 4.53804 4.53804 96 4.47961 4.47961 97 4.42704 4.42704 98 4.38017 4.38017 99 4.33885 4.33885 100 4.30308 4.30308 101 4.27296 4.27296 102 4.24874 4.24874 103 4.23059 4.23059 104 4.21837 4.21837 105 4.21133 4.21133 106 4.20843 4.20843 107 4.20843 4.20843 108 4.20843 4.20843 109 4.20843 4.20843 110 4.20843 4.20843 Basis. .75 (83CAM)+.25(a,)W3 7.5% Interest ORDINANCE NUMBER 468 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 Six (6). Whereas, in the judgment of the Mayor and City Council of the City of Owasso, Oklahoma, the public peace, health, safety, and welfare of the City of Owasso, Oklahoma, and the inhabitants thereof demand the immediate passage of this ordinance, an emergency is hereby declared, the rules are suspended, and this ordinance shall be in full force and effect on its passage and publication. DATED this 3rd day of August, 1993, CITY OF OWASSO, OKLAHOMA By: Sherry Bishop, City Clerk Ronald D Cates, City Attorney ETHIBIT "A" MASTER DEFINED BENEFIT PLAN AND TRUST JOINDER AGREEMENT City of Owasso.. a city, town, acrency instrumentality, or public trust located in the State of Oklahoma, with its principal office at Owasso, Oklahoma, hereby establishes a Defined Benefit Plan and Trust to be known as City of Owasso Plan and Trust (the "Plan") in the form of The Oklahoma Municipal Retirement System Master Defined Benefit Plan and Trust. Except as otherwise provided herein, the definitions in Article H of the Plan apply, a. The Effective Date of this Joinder Agreement shall be July 1, 1993 . b The Effective Date of the Plan shall be July 1, 1972, the effective date of the original plan continued without interruption through adoption of this Joinder Agreement. Employee shall mean: Any person who, on or after the Effective Date, 1 31001-25 [X] the term employee shall not include any individual who is covered by an other state or local retirement system unless, with respect to the other state or local retirement system, the individual is in pay status currently receiving benefits and not an active participant. [X] Any person who, if last hired after July 1, 1972 had not reached his 60th birthday at the time of hiring 3. Eligibility 5. A. Payment O,ptions. The Employer hereby elects the following auninium 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 —Qpjjgm The Employer hereby elects the following plan designation and percentage used in calculating benefits under Section 5.1 of the Plan. Plan AA - 2.625 % [X] Plan BB - 125 % Plan CC - L875% Plan A - 1,5% Plan B - 1.25 % Plan C - .75 % C. Normal Retirement Age. Normal retirement age shall be: [ ] Age 65 [X] Age 62 and completion of 30 years of credited service. D. Y=ing—Qp1jQm. The Employer hereby elects the following vesting option to determine an employee's eligibility to receive retirement benefits. 10 Year Cliff Vesting 7 Year Cliff Vesting [X] 5 Year Cliff Vesting E. Service Credit Prior t �ffiv�. The Employer hereby elects to include the following limitation of service prior to the g effective date. [X] No limitation Service credit prior to the effective date shall not exceed years. 3 31001-25 6. Contributions by Employees. Plan AA - 5.25 % Plan Plan CC - 3.75 % Plan A -3% Plan B Plan b. The contribution formula shall be 0% of compensation. (Not to exceed the percentages in above paragraph). c. [X] Annual contribution (expressed as a percentage of payroll) shall For purposes of adjusting retiree and beneficiary pensions, the Employer hereby elects the following: W No Cost-of-Living Option. 4 3MI-23 The effective date of the Cost-Of-Living Option shall be -1 19—, the original date that the Employer elected the Cost-Of-Living Option. [X] not be redetermined, but shall continue to be paid under th+ terms of the Previous Plan. BEENFUUMM (The above election has not effect on the joint and survivor optional benefit forms under Section 7.1). 5 31001-25 10. The Committee, consisting of the following members, agrees to administer the Plan and Trust pursuant to the provisions thereof, Bob Randolph Name (Please print) Signature John Phillips Name (Please print) Si-nature Mary Lou Barnhouse Name (Please print) Signature C,h,,-rlpq T. Rivrris Name (Please print) Signature Rex L Bowen Name (Please print) Signature Name (Please print) Signature Name (Please print) Signature Name (Please print) Signature Name (Please print) Signature Name (Please print) Si-nature Name (Please print) Signature The Employer has consulted with and been advised by its attorney concerning the meaning of the provisions of the Plan and Trust Agreements and the effect of entry into the plan and Trust. 6 3IG'01-25 IN WITNESS WHEREOF the 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 offices this day of August , 1993. By: Title: (SEAL' City of Owasso The foregoing Joinder Agreement is hereby approved by The Oklahoma Municipal Retirement System this — day of By: Title: Attest: Secretary (Seal) 31001-25