LAPORTE COUNTY SHERIFF'S DEPARTMENT PERSONNEL RETIREMENT PLAN AND BENEFIT PLAN SUMMARY OF PLAN PROVISIONS

Transcription

1 LAPORTE COUNTY SHERIFF'S DEPARTMENT PERSONNEL RETIREMENT PLAN AND BENEFIT PLAN SUMMARY OF PLAN PROVISIONS Page1

2 LAPORTE COUNTY SHERIFF'S DEPARTMENT PERSONNEL RETIREMENT PLAN AND BENEFIT PLAN The following is a summary of the provisions of your retirement plan and benefit plan. Because this is only a summary, your exact benefits and rights under the plans may differ from your impression of your benefits and rights after reading this summary. In the ev en t of any variation between the information in this summary and the provisions of the plans, the plans will prevail. Copies of the plans are available for inspection in the Sheriff s office during normal business hours. 1. EFFECTIVE DATE The plans were originally effective January 1, The latest restatement of the retirement plan is January 1, The benefit plan was last amended by a Second Amendment, effective February 1, ELIGIBILITY All County Policemen, Sheriff and Deputy Sheriff, as defined by the Indiana Code. 3. PARTICIPANT'S CONTRIBUTION Effective January 1, 1989, a participant will contribute an annual amount equal to one dollar ($1.00) to the program. Prior to January 1, 1989, a participant was required to contribute an amount equal to four percent (4%) of his salary to the program. 4. SERVICE PURCHASE PROGRAM This program is a voluntary program that allows a participant to buy additional years of service for certain types of prior employment. Prior service credited under certain public retirement funds may be purchased to be used in the calculation of the earned pension benefit. The cost is based upon the amount of service being purchased. Further information regarding this program is available through the Sheriff's office. 5. NORMAL RETIREMENT AGE For an employee who becomes a participant on or after January 1, 2004, he may retire and begin receiving his earned pension benefit at any time after the attainment of age sixty (60) and the completion of thirteen (13) years of service. For an employee who became a participant prior to January 1, 2004, he may retire and begin receiving his earned pension benefit at any time after the attainment of age sixty (60). Page2

3 6. NORMAL RETIREMENT BENEFIT The normal retirement benefit is a monthly benefit determined as follows: (1) two and one-half percent (2½%) of the participant's average monthly compensation during his highest paid five (5) years of service, plus one dollar ($1.00); this sum multiplied by the participant's years of credited service up to twenty (20) years; and (2) an additional two percent (2%) of the participant's average monthly compensation during his highest paid five (5) years of service multiplied by his years of credited service in excess of twenty (20) years up to an additional twelve (12) years; the total benefit under (I) and (2) shall not exceed a maximum of seventy-four percent (74%) of average monthly compensation during the highest paid five (5) years plus twenty dollars ($20.00). 7. EARLY RETIREMENT AGE A participant with twenty (20) or more years of service with the Sheriff's Department may retire at any time after the attainment of age fifty (50). 8. EARLY RETIREMENT BENEFIT The monthly amount of his early benefit shall be based on the participant's service and average monthly compensation earned as of his early retirement date. 9. SPECIAL EARLY RETIREMENT AGE A participant with twenty (20) or more years of service with the Sheriff s Department may retire at any time after the attainment of age forty-five (45). l0. SPECIAL EARLY RETIREMENT BENEFIT The monthly amount of his special early retirement benefit shall be equal to his normal retirement benefit, reduced five-twelfths percent (5/12%) for each month that the date benefits first commence precedes the participant's fiftieth (50 th ) birthday. Page3

4 11. COST OF LIVING ADJUSTMENTS TO RETIREES The monthly benefit paid to retirees may increase each July 1 after January 1, 1993, to reflect cost of living increases. The amount of the cost of living increase, if any, will depend on the change in the Consumer Price Index. However, the annual cost of living increase will never exceed three percent (3%). Only participants who retired as of an Early Retirement Date, Special Early Retirement Date, Normal Retirement Date or Late Retirement Date and who have attained age fifty-five (55) are eligible for the cost of living increase. 12. SEVERANCE BENEFIT (termination for reasons other than disability or death) A participant will be 100% vested upon severance from employment because of retirement. If a participant hired on or after January 1, 2004, severs employment after ten (10) years of service with the Sheriff's Department and before retirement, he shall be entitled to a vested percentage of his earned pension benefit shown in the following table: Credited Service At Severance Less than but less than but less than but less than or more Vested Percentage Of Earned Benefit 0% 25% 30% 35% 100% In lieu of the above vested benefit, he may elect to withdraw the "net amount" of his contributions. If a participant severs employment prior to completing ten (10) years of service with the Sheriff's Department for reasons other than retirement, he shall only be entitled to the "net amount" of his contribution. The net amount of contributions is payable upon severance from employment. The vested benefit is payable at age fifty (50). If a participant hired prior to January 1, 2004, severs employment after five (5) years of service with the Sheriff s Department and before retirement, he shall be entitled to a vested percentage of his earned pension benefit shown in the following table: Credited Service At Severance Less than 5 5 but less than 6 6 but less than 7 7 but less than 8 8 or more Vested Percentage Of Earned Benefit 0% 25% 30% 35% 100% Page4

5 In lieu of the above vested benefit, he may elect to withdraw the "net amount" of his contributions. If a participant severs employment prior to completing five (5) years of service with the Sheriff s Department for reasons other than retirement, he shall only be entitled to the "net amount" of his contribution. The net amount of contributions is payable upon severance from employment. The vested benefit is payable at age fifty (50). If a participant elects to receive his earned pension benefit rather than the net amount of his contributions, he must notify the Committee of his current address by his seventieth (70th) birthday. Failure to notify the Committee will result in the forfeiture of the participant's earned pension benefit. The Committee has the power to forfeit the earned pension benefit of any participant whose employment is severed due to dishonesty or misconduct. 13. DEFERRED RETIREMENT OPTION PROGRAM (DROP) When a participant elects to commence his earned pension benefit, he will also be given an opportunity to elect an optional form of monthly payment available under the Plan. In addition, the plan offers a combination of a lump sum payment and a monthly payment for participants who elect to enter the "DROP." "DROP" stands for deferred retirement option plan. After a participant is age sixty (60), or age fifty (50) with twenty (20) years of service, he may elect the DROP if he has not yet completed thirty-two (32) years of service. The DROP allows the participant to accumulate the monthly payments that he would have received from the time he enters the DROP until he severs employment. When he severs employment, he will receive 1) monthly payments equal to the monthly benefit earned as of the date he entered the DROP plus 2) the accumulated payments in a cash lump sum, a direct rollover to another retirement plan or an IRA or as an additional monthly benefit, whichever he elects. If you would like more information about the DROP, please contact the Sheriff s office. 14. DEATH BENEFIT FOR PARTICIPANTS NOT ENTERED IN THE "DROP" (Retirement Plan) In the event of the death of a married or unmarried participant prior to the commencement of his benefit from the retirement plan, his beneficiary shall receive a refund of the net amount of his contributions. The "net amount" is equal to the total of his contributions from wages less any amount paid him from the funds plus interest at three percent (3%) compounded annually. In addition to a refund of the net amount of contributions, if a married participant who has a vested benefit in the plan dies before commencement of his benefit, his spouse shall receive a monthly benefit for her lifetime based on the survivor benefit that would have been payable if the participant had received the benefit he was entitled to at his date of death in the form of a joint and 100% survivor option payable as of the later of his date of death or the date he would have satisfied the requirements for early retirement. The death benefit will be available to the spouse the first day of the month following the later of the participant's date of death or the date the Participant would have satisfied the requirements for early retirement. In addition, a participant s dependents will receive the dependent s pension as shown in Item 16. Page5

6 15. DEATH BENEFIT FOR "DROP" PARTICPANTS (Retirement Plan) The DROP Benefit Accumulation will be paid in a lump sum as follows: 1) to the surviving spouse, 2) if there is no surviving spouse, equally among surviving children, 3) if there are no surviving children, equally between the participant's parents, 4) if there are no surviving parents, to the participant's estate. If the DROP Benefit Accumulation is less than the net amount of the participant's contributions, the beneficiary will also receive the net amount of his contributions minus t h e DROP Benefit Accumulation. (The net amount of his contributions equals the total amount of his contributions less any amount paid from the funds plus interest at three percent (3%).) If a married participant dies before commencement of his benefit, his spouse will receive a monthly benefit for her lifetime based on the survivor benefit that would have been payable if the participant had received the DROP Frozen Benefit he was entitled to at his date of death in the form of a joint and 100% survivor option payable as of his date of death. In addition, a participant's dependents will receive the dependents' pension as shown in Item 16 below. 16. DEPENDENTS' PENSION In the event of the death of a participant prior to his severance from employment, his surviving spouse or dependent parent will receive two hundred dollars ($200) a month for the remaining life of the spouse or dependent parent. In the event of the death of a participant who retired on or after January 1, 1986, his surviving spouse or dependent parent will receive two hundred dollars ($200) a month for the remaining life of the spouse or dependent parent. However, in the case of a retired participant, payment will be made to the surviving spouse only if the participant was continuously married to the same spouse from his retirement date to his date of death. In addition, a monthly benefit equal to three hundred dollars ($300) per month shall be payable on behalf of each dependent child under the age of eighteen (18) until the earlier of the child's eighteenth (18th) birthday or the child's date of death. Page6

7 17. GROUP LIFE INSURANCE Each participant shall be covered by twenty-five thousand ($25,000) life insurance plus a matching amount of accidental death insurance while employed by the Department. Life insurance coverage will continue after retirement only if the retiree makes application with the insurance company within 31 days after retirement and pays the premiums to the insurance company. If the retiree does not contact the insurance company and make appropriate application, insurance coverage will not continue after retirement. 18. DISABILITY BENEFIT The Sheriff and the Merit Board will determine if a participant qualifies as a disabled participant. Then, the Sheriff and the Merit Board will set the amount of any disability payment from the benefit plan, based on the circumstances of each case. However, the amount of the disability payment from the benefit plan cannot exceed a reasonable amount, if the disability is the result of line of duty activities. The amount of the disability payment from the benefit plan cannot exceed the participant's projected retirement benefit payable from the retirement plan, if the disability is not the result of line of duty activities. A disability expense reimbursement may be made for the actual medical expenses incurred due to the disability. The amount of the disability payments and/or expense reimbursement paid by the benefit plan will be reduced by any amount paid under Workmen's Compensation to the disabled participant. The disability benefit from the retirement plan will equal the ''net a m o u n t " of the participant's contributions paid in a monthly benefit or a lump sum amount, as elected by the participant. Page7