§ 31-64.1. Limitations on benefits.

(a)

Defined benefit limitations.

(1)

Notwithstanding any other provisions in this article, the maximum annual benefit to which a member is entitled from the fund shall not exceed the application limitations of IRC section 415(b). The limitations of IRC section 415(b) and the final Treasury Regulations promulgated thereunder, as published on April 5, 2007, are hereby incorporated by reference. The limitations shall be applied on a uniform basis with respect to all similarly situated members in a limitation year.

The maximum benefits provided under the fund shall not exceed the maximum amounts permitted by IRC section 415(b). The amount payable to a member in any limitation year shall not exceed the IRC section 415(b) limit applicable at the annuity commencement date, without regard to the cost-of-living adjustments described in paragraph (3) below. If there is any discrepancy between the provisions of this subsection 31-64.1 and the provisions of IRC section 415, such discrepancy shall be resolved in such a way as to give full effect to the provisions of IRC section 415.

(2)

If the maximum annual benefit under this article (but for this section) would exceed the limitations of IRC section 415(b), the maximum annual benefit under any other defined benefit plan required to be aggregated with the fund shall be reduced under the other defined benefit plan prior to the reduction of the maximum annual benefit from the fund, in accordance with final Treasury Regulation section 1.415(a)-1(d)(3)(iii).

(3)

In the event that the annual pension otherwise payable to a member who has retired or terminated employment has been limited by IRC section 415(b) as it existed at the member's retirement or termination date, the member's annual pension shall be adjusted for increases in the cost-of-living, as permitted by final Treasury Regulation section 1.415(d)-1, pursuant to Treasury Regulation section 1.415(a)-1(d)(3)(v), which is incorporated by reference.

(4)

For purposes of determining a member's maximum benefit, remuneration paid or made available to the member during the limitation year shall include amounts described in IRC section 415(c)(3) and final Treasury Regulation section 1.415(c)-2(a). In addition, post-severance remuneration shall mean post-severance remuneration as defined in final Treasury Regulation section 1.415(c)-2(e)(3)(ii), and any payment that is for accrued bona fide sick, vacation or other leave, but only if the member would have been able to use the leave if employment had continued; payment to an individual who does not currently perform services for the participating employer by reason of qualified military service, to the extent these payments do not exceed the amounts the individual would have received had the individual continued to perform services for the participating employer rather than entering qualified military service; and any payment that is made to a member who is totally and permanently disabled as determined by the Virginia Workers' Compensation Commission, provided salary continuation applies to all members who are permanently and totally disabled for a fixed or determinable period. Further, for limitation years beginning on and after July 1, 2009, (i) an individual who is in qualified military service and receiving a differential wage payment, as defined by IRC section 3401(h)(2), from the city shall be treated as an employee of the city, and (ii) in accordance with IRC section 414(u)(7), the differential wage payment shall be treated as remuneration.

(b)

Required minimum distributions.

(1)

Notwithstanding anything herein to the contrary, the benefit of each member shall commence no later than April 1 of the calendar year following the later of (i) the calendar year in which the member attains age seventy and one-half (70½), or (ii) the calendar year in which the member retires. This period shall be known as the member's required beginning date. The fund is intended and believed to be in compliance with a reasonable and good faith interpretation of IRC section 401(a)(9). IRC section 401(a)(9) is incorporated by reference herein. The requirements of this section shall apply to any distribution of a member's retirement allowance and override any distribution option in the fund that is otherwise inconsistent with IRC section 401(a)(9) and take precedence over any inconsistent provisions of the fund.

(2)

Retirement distributions may only be made over a period not to exceed the life of the member or the joint lives of the member and the member's beneficiary. For this purpose, the form of distribution shall include the death benefits payable under section 31-62.

(3)

If the distribution of a member's benefit has commenced and the member dies before the member's entire benefit has been distributed to the member, the remaining portion of such benefit shall be distributed at least as rapidly as under the form of distribution in effect at the member's date of death. For this purpose, the form of distribution shall include the death benefits payable under section 31-62.

(4)

If a member dies before distributions begin, the member's benefit will be distributed in accordance with the following:

a.

If a benefit is paid to a spouse or dependent child pursuant to section 31-60 (other than subsection (e) thereof), section 31-61 (other than subsection (b) thereof), or section 31-63 (other than subsection (a) thereof), such benefit shall commence no later than December 31 of the calendar year immediately following the calendar year in which the member died. The benefit to such spouse or dependent child shall be paid over the period specified in sections 31-60, 31-61, or 31-63, as applicable, which period shall not exceed the life of the spouse or dependent child.

b.

If the benefit is paid other than as described in subsection a., above, any distribution payable under the terms of this article shall be completed no later than December 31 of the calendar year immediately following the calendar year in which the member died.

The benefits payable under the provisions of this article may not be paid in any form which would violate the required distribution requirements of this subsection.

(Ord. No. 7131-14, § 1)

(Ord. No. 7131-14, § 1)