ALACHUA COUNTY LIBRARY DISTRICT PENSION BOARD OF TRUSTEES AGENDA

Transcription

1 ALACHUA COUNTY LIBRARY DISTRICT PENSION BOARD OF TRUSTEES AGENDA DATE: THURSDAY July 11, 2013 TIME: PLACE: 10:30 AM HEADQUARTERS LIBRARY, MEETING ROOM A, 401 EAST UNIVERSITY AVENUE, GAINESVILLE, FL I. APPROVAL OF AGENDA II. MINUTES OF MARCH 14, 2013 Recommendation: The Pension Board of Trustees approve the Minutes of March 14, 2013 Attachment: Minutes of March 14, 2013 III. IV. UNFINISHED BUSINESS (There were no items submitted in this category.) NEW BUSINESS A. Alachua County Library District Pension Trust Fund Performance Review Flash Report for the Period Ending June 30, 2013 Mr. Johnson, Bogdahn Consulting, LLC Background: Mr. Johnson presented the report to the Pension Advisory Committee on July 10, The Pension Advisory Committee forwarded the report to the Pension Board of Trustees. Recommendation: The Pension Board of Trustees accept the report. Attachment: Pension Trust Fund Performance Review - Flash Report for the Period Ending - June 30, 2013 B. Alachua County Library District Pension Plan Restated and Amended Effective October 1, 2012 Ms. Rendeiro, USI Consulting Group Benefits Counsel Background: USI Consulting Group Benefits Counsel Jill Rendeiro has prepared the attached updated plan document for the Alachua County Library District Pension Plan, which has been restated to comply with current applicable statutory and regulatory requirements for Cycle C, which is the applicable IRS remedial amendment cycle for governmental plans. Generally, the IRS requires that this restatement of your Plan document include all technical updates and guidance issued on or before October of This restatement includes changes required by the Pension Protection Act, HEART Act (Heroes Earnings Assistance and Relief Tax Act of 2008), and WRERA (Worker, Retiree, and Employer Recovery Act of 2008). The document also incorporates the discretionary amendments that

2 have been adopted since the last restatement. Also, the late retirement and death benefit sections have been clarified. The Alachua County Library District Pension Plan Restated and Amended Effective October 1, 2012, has been reviewed and approved as to form by the County Attorney s office. This restated and amended plan was reviewed by the Pension Advisory Committee on July 10, Recommendation: The Pension Board of Trustees approve the Alachua County Library District Pension Plan Restated and Amended Effective October 1, 2012 as presented and authorize the Pension Board of Trustees Chair to sign. Attachment: Alachua County Library District Pension Plan Restated and Amended Effective October 1, 2012 C. Alachua County Library District Pension Plan Amendment for PPA, HEART Act and Other Law Changes Ms. Rendeiro, USI Consulting Group Benefits Counsel Background: USI Consulting Group Benefits Counsel Jill Rendeiro has prepared and will present the attached Amendment for PPA, HEART Act and Other Law Changes. The Alachua County Library District Pension Plan Amendment for PPA, HEART Act and Other Law Changes has been reviewed and approved as to form by the County Attorney s office. This Amendment was reviewed by the Pension Advisory Committee on July 10, Recommendation: The Pension Board of Trustees approve the Alachua County Library District Amendment for PPA, HEART Act and Other Law Changes and authorize the Pension Board of Trustees Chair to sign the amendment. Attachment: Alachua County Library District Pension Plan Amendment for PPA, HEART Act and Other Law Changes D. Beneficiary Destination Ms. Livingston, Library Director Background: Ms. Georgia Young retired on September 30, 2012 and began drawing payments from the Alachua County Library District Pension Plan effective October 1, Ms. Young passed away on May 27, Ms. Young s contributions to the pension plan totaled $19, Prior to her death, Ms. Young received $10, in pension payments. The actuary for the plan calculated a death benefit in the amount of $8, due for the remaining portion of her contributions. The life annuity does not require a beneficiary, but in the event of death prior to employee receiving an amount equal to employee contributions, there is a payout for the balance. Ms. Young did not list a beneficiary on her pension application. The Pension Advisory Committee reviewed this information at their meeting on July 10, 2013 and will provide their recommendation. Recommendation: The Pension Board of Trustees approve distribution of the

3 death benefit to the estate of Ms. Young. Attachment: ACLD Pension Plan Article IX V. VI. VII. INFORMATIONAL ITEMS THAT REQUIRE NO ACTION (There were no items submitted in this category.) CITIZEN COMMENT ADJOURNMENT

4 Thursday, March 14, :30 A.M. Headquarters Library Meeting Room A 401 East University Avenue Gainesville, Florida The Alachua County Library District Pension Board of Trustees met in regular session. PRESENT: Chair Lee Pinkoson, presiding, Vice-Chair Susan Bottcher, Trustees Charles S. Chestnut IV, Yvonne Hinson-Rawls, Robert Hutch Hutchinson and Leanetta McNealy, Ph. D. ALSO PRESENT: Library Director Shaney T. Livingston, Assistant County Attorney William Harlan, Clerk J. K. Irby, Assistant Clerk/Finance Director Todd Hutchison, Deputy Clerk Bob Decker The meeting was not televised. Chair Pinkoson opened the meeting at 10:31 A.M. I. APPROVAL OF THE AGENDA Trustee Bottcher moved approval of the agenda. The motion carried 5-0 with Trustee Hinson-Rawls out of the room. II. MINUTES OF OCTOBER 25, 2012 Trustee Bottcher moved approval of the Minutes of the October 25, 2012 Pension Board of Trustees meeting. The motion carried 5-0 with Trustee Hinson-Rawls out of the room. III. UNFINISHED BUSINESS (There were no items submitted in this category.) IV. NEW BUSINESS A. Alachua County Library District Pension Trust Fund Performance Review for the Period Ending December 31, 2012 Staff Recommended Action: Accept the report. Julie Baker of Bogdahn Consulting, LLC presented the above item. Trustee Hinson-Rawls entered the room at 10:35 A.M.

5 Thursday, March 14, :30 A.M. Trustee Bottcher moved to accept the report. The motion carried 6-0. B. Revised Investment Policy Statement Staff Recommended Action: Approve the Revised Investment Policy Statement. Julie Baker of Bogdahn Consulting, LLC presented the above item. Trustee Hutchinson moved to approve the Revised Investment Policy Statement. The motion carried 6-0. C. Defined Benefit Actuarial Valuation Report as of October 1, 2012 Staff Recommended Action: Accept the report. Frederica Daniels of USI Consulting Group presented the above item. Trustee Hinson-Rawls moved to accept the report. The motion carried 6-0. D. Actuarial Impact Statement as of October 1, 2012 Staff Recommended Action: Approve the Actuarial Impact Statement as of October 1, Frederica Daniels of USI Consulting Group presented the above item. Trustee Hinson-Rawls moved to approve the Actuarial Impact Statement as of October 1, The motion carried 6-0. V. INFORMATIONAL ITEMS THAT REQUIRE NO ACTION (There were no items submitted in this category.) VI. CITIZEN COMMENT There were no citizens present who wished to provide comments to the Board of Trustees.

6 Thursday, March 14, :30 A.M. VII. ADJOURNMENT There being no further business the meeting was adjourned at 11:04 A.M. J. K. Irby, Clerk to the Library District Pension Board of Trustees

7 Alachua County Library District Employees' Pension Trust Fund Flash Report June 30, 2013

8 Asset Allocation & Performance Market Value $ Allocation % Alachua County Library District Employees' Pension Trust Fund Asset Allocation & Performance Performance(%) QTD FYTD 1 YR 3 YR 5 YR Inception As of June 30, 2013 Total Fund (Gross) 20,214, /01/2006 Total Fund Policy Difference All Public Plans-Total Fund Median N/A N/A N/A N/A N/A N/A Total Fund (Net) 20,214, /01/2006 Total Fund Policy Difference Total Equity 13,040, /01/2006 Total Equity Policy Difference Total Domestic Equity 11,292, /01/2006 Total Domestic Equity Policy Difference IM U.S. Multi-Cap Core Equity (MF) Median N/A N/A N/A N/A N/A N/A Total International Equity 1,747, N/A N/A /01/2010 MSCI AC World ex USA Difference N/A N/A 1.20 IM International Multi-Cap Core Equity (MF) Median N/A N/A N/A N/A N/A N/A Total Fixed Income 6,785, /01/2006 Total Fixed Income Policy Difference IM U.S. Broad Market Fixed Income (SA+CF) Median N/A N/A N/A N/A N/A N/A Inception Date

9 Market Value $ Allocation % Alachua County Library District Employees' Pension Trust Fund Asset Allocation & Performance Performance(%) QTD FYTD 1 YR 3 YR 5 YR Inception As of June 30, 2013 Domestic Equity Vanguard Total Stock (VITSX) 11,292, N/A N/A /01/2010 Russell 3000 Index Difference N/A N/A 0.10 IM U.S. Multi-Cap Core Equity (MF) Median N/A N/A N/A N/A N/A N/A International Equity Manning and Napier (EXOSX) 1,747, N/A N/A /01/2010 MSCI AC World ex USA Difference N/A N/A 1.19 IM International Multi-Cap Core Equity (MF) Median N/A N/A N/A N/A N/A N/A Fixed Income Sawgrass 5,928, N/A N/A /01/2010 Barclays Intermediate Aggregate Index Difference N/A N/A 0.04 IM U.S. Broad Market Fixed Income (SA+CF) Median N/A N/A N/A N/A N/A N/A Vanguard TIPS (VAIPX) 856, N/A N/A /01/2010 Barclays U.S. Treasury: U.S. TIPS Index Difference N/A N/A IM U.S. TIPS (MF) Median N/A N/A N/A N/A N/A N/A Cash Accounts R&D 388, N/A N/A /01/2010 Inception Date

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11 Financial Reconciliation Market Value 10/01/2012 Net Transfers Contributions Distributions Management Fees Alachua County Library District Employees Pension Trust Fund Financial Reconciliation Other Expenses Income October 1, 2012 To May 31, 2013 Apprec./ Deprec. Market Value 05/31/2013 Total Equity 11,427,685 33, ,933 1,624,372 13,234,985 Total Domestic Equity 9,849,344 28, ,417 1,434,584 11,434,673 Vanguard Total Stock (VITSX) 9,849,344 28, ,417 1,434,584 11,434,673 Total International Equity 1,578,341 5, , ,789 1,800,312 Manning and Napier (EXOSX) 1,578,341 5, , ,789 1,800,312 Total Fixed Income 6,917,908 22, ,551-2, , ,048 6,891,905 Sawgrass 5,998,812 19, ,551-2,204 88,497-97,633 5,999,751 Vanguard TIPS (VAIPX) 919,097 2, ,640-58, ,155 Cash Accounts R&D 316,691-56, , , , ,778 Mutual Fund Cash Total Fund 18,662, , ,010-7,551-67, ,079 1,468,324 20,506,668

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13 ALACHUA COUNTY LIBRARY DISTRICT PENSION PLAN Restated and Amended Effective October 1, 2012

14 Table of Contents PREAMBLE... 1 ARTICLE I - DEFINITIONS... 2 ARTICLE II - ELIGIBILITY AND CREDITED SERVICE... 6 ARTICLE III - RETIREMENT DATE AND TERMINATION BENEFITS ARTICLE IV - NORMAL RETIREMENT BENEFITS ARTICLE V - DEATH BENEFITS ARTICLE VI - OPTIONAL FORMS OF RETIREMENT BENEFITS ARTICLE VII - CONTRIBUTIONS ARTICLE VIII - AMENDMENT AND TERMINATION OF PLAN ARTICLE IX - GENERAL PLAN ADMINISTRATION ARTICLE X - PENSION COMMITTEE ARTICLE XI - TRUST FUND AND BOARD OF TRUSTEES ARTICLE XII - GENERAL PROVISIONS EXECUTION OF PENSION PLAN AND TRUST AGREEMENT APPENDIX A... 34

15 PREAMBLE WHEREAS, Alachua County Library District (the Employer ), a Special Independent Tax District operating the Alachua County Library System, heretofore established a Pension Plan and Trust Fund, effective for the year beginning October 1, 1987; and, WHEREAS, the Pension Plan has been subsequently amended and restated; and WHEREAS, effective October 1, 2012, the Employer desires to amend and restate the Plan in its entirety, incorporating all amendments thereto adopted since the last restatement as well as the final regulations under Code Section 415, the applicable provisions of the Pension Protection Act of 2006 ( PPA ), the Worker, Retiree and Employer Recovery Act of 2008 ( WRERA ), and the Heroes Earnings Assistance and Relief Tax Act of 2008 ( HEART Act ); and WHEREAS, the Plan is a governmental Plan within the meaning of the Section 414(d) of the Code and shall be interpreted in a manner this is consistent with such designation; WHEREAS, under the terms of the Plan, the Employer has the authority to amend the Plan; NOW, THEREFORE, effective October 1, 2012, except as otherwise herein provided, the Employer hereby amends and restates the Plan in its entirety to incorporate all amendments and to include the statutory, regulatory, and guidance changes specified in the 2012 Cumulative List of Changes in Plan Qualification Requirements (2012 Cumulative List) contained in Internal Revenue Service Notice and the qualification requirements and guidance published before the issuance of such list, as may be applicable to governmental plans. 1

16 ARTICLE I - DEFINITIONS 1. Actuarial Equivalent means a benefit payable under the terms of this Plan in a form other than the normal form of benefit which has the same actuarial present value on the date payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted for interest and mortality by using seven percent (7%) interest and the 1983 Group Annuity Mortality Table for Males. 2. Actuary means one who is skilled in calculations involving compound interest and life contingencies who shall be a Member of the Society of Actuaries or the American Academy of Actuaries and who is enrolled under subtitle C of Title III of the Employee Retirement Income Security Act of Beneficiary means any person, except a Pensioner, who is in receipt of a pension or other benefits, payable from the funds of the Plan; or any person designated by a Member of the Plan to receive benefits from the Plan upon the Member s death. If any payment is due to be made to a Participant s surviving Beneficiary, and no Beneficiary survives or if the Participant has not designated a Beneficiary, the Participant s Beneficiary shall be the Participant s surviving spouse or, if none, the Participant s surviving children, in equal shares or, if none, the Participant s estate. 4. Board means the Board of Trustees created to administer the Plan, being the Alachua County Library District Board of Governors. 5. "Code" means the Internal Revenue Code of 1986, as amended or replaced from time to time, and the U. S. Department of Treasury regulations promulgated thereunder. 6. City Plan means the employee s pension plan of the City of Gainesville, Florida, as set forth in Chapter 20 of the Code of Ordinances of the City of Gainesville on the date immediately preceding the effective date of this Plan. 7. Compensation means total cash compensation paid by the Library as reported on IRS Form W-2, plus any cash deferrals under the flexible spending account. Compensation in excess of the limitations set forth in Section 401(a)(17) of the Internal Revenue Code shall be disregarded. The limitation on Compensation for an eligible employee shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, For this purpose, eligible employee is an individual who was a Member before the first plan year beginning after December 31, Effective for Plan Years beginning after December 31, 2008, and to the extent the Employer provides for differential wage payments while a person, while on active military duty, is performing services in the uniformed services, such differential wage payments shall be considered as compensation in accordance with Code Section 414(u). Pursuant to state law, effective July 1, 2011 (October 1, 2013 for employees covered by a collective bargaining agreement), Compensation shall exclude pay for overtime in excess of 300 hours in any twelve month period. Compensation shall also exclude any payment for unused paid time off (PTO) leave that was earned on or after July 1, 2011 (October 1, 2013 for employees covered by a collective bargaining agreement). 8. Credited Service means the total number of Months of Service with the Library expressed in terms of full and fractional years. Additional Months of Service shall be credited in accordance with Appendix A for unused paid time off (PTO) leave that exceeds any cash-out portion. In the event the employment of a Member is terminated, by reason of layoff, and such Member is subsequently re-employed by the Library, the Credited Service to which he/she was entitled as 2

17 of his/her termination date shall be included in any further computation of Credited Service if he/she refunds withdrawn contributions, if any, as described in Article II. Further provided, that in the event the employment of a Member is terminated, other than by reason of layoff, and such Member is subsequently re-employed by the Library, the Credited Service to which he/she was entitled as of his/her termination date shall be included in any further computation of Credited Service: a. If he/she was entitled to a termination benefit, or, b. If such a Member was not entitled to a termination benefit and his/her number of calendar months that he/she was not employed is less than his/her aggregate Months of Service credited under the plan as of his/her termination date, and, c. He/she has refunded withdrawn contributions as provided in Article II. 9. Day of Service means each day for which a member is: a. Paid, or entitled to payment, by the Library for performance of duties; b. Paid, or entitled to payment, by the Library on account of a period of time during which no duties are performed, (e.g., vacation, holiday, illness or jury duty; unless otherwise provided in applicable personnel policies or collective bargaining agreements. c. Each day for which back pay, irrespective of mitigation or damages, has been either awarded to or agreed to by the Library; provided, however, that the same day shall not be credited as a day of service more than once. 10. Early Retirement means the first day of the month coincident with, or next following Retirement, in accordance with the terms of the plan, at an age earlier than Normal Retirement Age. 11. Effective Date of the Plan means the date on which the operation of the plan is to commence for the purpose of determining eligibility, benefits, and related matters, which is hereby fixed as the first day of October, Employee means a person employed by the Library and so classified in the personnel records of the Library as occupying a part-time or full-time budgeted permanent position, including "Probationary Employees and "Permanent Employees. 13. Exempt Employee means Employees exempt from the provisions of the Fair Labor Standards Act. These are salaried employees who are not eligible for overtime pay. 14. Final Average Earnings means the average of the annual (twelve (12) consecutive months) Compensation received by an employee during any thirty-six (36) consecutive months of employment by the Library during which the employee received the highest Compensation paid him/her by the Library; provided, however, for employees who are demoted for disciplinary reasons by the Library, said terms shall refer to the greater of: a. The average of the annual (twelve (12) consecutive months) Compensation received by that employee during his/her final thirty-six (36) consecutive months of employment with the Library; or, b. The average of the annual (twelve (12) consecutive months) Compensation received by an employee during any thirty-six (36) Consecutive months of employment by the Library subsequent to the demotion during which the employee received the highest Compensation paid him/her by the Library. 15. FRS Plan means the Florida Retirement System Pension Plan, which the Library joined effective January 1,

18 16. Fund or Pension Fund means all sums of money paid into the Plan by the Library and Members of the Plan, together with earnings and appreciation of the same, less disbursements made from said money, in accordance with the Plan, and less any losses or depreciation of asset value. 17. Library means Alachua County Library District Board or Alachua County Library, as the context requires. 18. Member means any person who is included in the Membership of the Plan. 19. Month of Service means a one month period beginning on the day of the month corresponding to a Member s date of employment, during which such Member has earned at least ten (10) Days of Service; provided however, that ten (10) Days of Service will be deemed to have been earned in each month of service in which occurs: a. An approved paid leave of absence, not to exceed ninety (90) days, authorized by the Library, in accordance with a uniform policy applied on a nondiscriminatory basis to all Members similarly situated; or b. Voluntary or involuntary service in the armed forces of the United States for a period not greater than one enlistment, provided that the Member is legally entitled to reemployment pursuant to the provisions of any federal law applicable to veterans re-employment rights, and any amendments thereto, and is re-employed by the Library within the manner provided by law and under the conditions prescribed by law. In the event the employment of a Member is terminated, and such former Member is subsequently re-employed by the Library, the Member s date of employment for purpose of determining additional Months of Service shall be reestablished as his/her date of reemployment. 20. Normal Annuity Form means a monthly annuity payable from date of Retirement to death. 21. Normal Cost means the annually accruing cost of pension benefits granted under this Plan. 22. Normal Retirement Age means the first day of the month coincident with, or next following the age at which an employee first becomes eligible for normal Retirement under Article III of the Plan. 23. Pension means an annual amount, payable in equal monthly installments throughout the life of a retired employee, payable from the funds of the Plan. 24. Pension Committee means a committee established to advise the Board of Trustees on matters related to the Pension Plan. 25. Pensioner means a Member who has retired with a Pension payable from the funds of the Plan. 26. Permanent Employee means an employee of the Library who works at least twenty (20) hours per week on a continuous basis, fifty-two (52) weeks per year and has successfully completed the initial probationary period. 27. Plan or Pension Plan means the system of retirement benefits contained herein and all amendments thereto. 28. Probationary Employee means an employee of the Library who works at least twenty (20) hours per week on a continuous basis and who has not yet completed the initial six month probationary period. Based on performance, an initial probationary period may be extended for a period not to exceed three additional months. Following the successful completion of the initial 4

19 or extended probationary period, an employee shall be entitled to the full benefits and privileges afforded to Permanent Employees. 29. Retirement means withdrawal from the service of the Library with a Pension granted in accordance with the provisions of this plan. 30. Retirement Annuity Option means an optional form of retirement income, other than the Normal Annuity Form, which an employee may elect in accordance with the terms of this Plan. 31. Service Retirement means Retirement from employment of the Library with a Pension based upon service in the employ of the Library. 32. Trustee means the Board of Trustees of the Pension Plan established hereunder. 33. Vesting means the date the employee completes five (5) years of Credited Service. 5

20 ARTICLE II - ELIGIBILITY AND CREDITED SERVICE 1. Members a. All employees of the Library on October 1, 1986, who were members of the City Plan immediately prior thereto would become Members of this Plan as of that date. b. All other Permanent Employees of the Library shall become Members of the Plan on the first day of the month following (or coinciding with) the date of their employment as Permanent Employees, except as provided in Section 3 below. c. All Permanent Employees who are Exempt Employees who irrevocably elect on or before July 1, 2005 to transfer from the Library District s Deferred Compensation Program and become Members of the Pension Plan shall become Members of the Plan effective on October 1, Such Permanent Employees shall receive no Credited Service for prior service, except pursuant to Section 3. d. Effective January 1, 2008, the Library shall join the Florida Retirement System (the FRS ), and notwithstanding paragraph (b), above, any Library employee hired on or after such date shall not be permitted to enter the Pension Plan. Each Library employee hired prior to January 1, 2008 shall be given a one-time, irrevocable election to either freeze his/her accrued pension benefit under the Pension Plan effective December 31, 2007 and join the FRS Plan, or remain in the Pension Plan as constituted on the date of election. Such election must be completed and returned to the Library administration by no later than November 9, Failure to make any election shall be deemed to be an affirmative election to remain covered by the Pension Plan. Library employees electing to join the FRS Plan may not at any future date elect to return to the Pension Plan. 2. Service Before the Effective Date of the Plan a. A Member of the Plan who contributed to the predecessor City Plan prior to October 1, 1965, will be given full credit for all service to the Library as a full-time Permanent Employee before August 1, b. All other Members of the Plan will be given full credit for service to the Library from the date of permanent employment or from January 1, 1964, whichever date is later, except as provided in Section 3 below. 3. Special Adjustments to Credited Service a. Exempt Employees hired before October 1, 1996, on whose behalf the Library is making employer contributions to the deferred compensation program pursuant to Code 457, shall not accrue Credited Service under this Plan nor receive any increase in final average earnings during the period for which such contributions are made. Those Exempt Employees who elected to transfer from the Library District s deferred compensation program (established pursuant to Code 457) to the Pension Plan, effective October 1, 1996, shall have Months of Service for continuous employment before that date, up to a maximum of ten (10) years, considered as Credited Service, only for purposes of vesting upon termination of employment and for eligibility for Retirement at age sixty-five (65) with ten (10) years of Credited Service, for eligibility for Retirement after twenty (20) years of service before the age of sixty-five (65), and for early Retirement. For purposes of calculation of the accrued benefit, the transferring employee shall accrue Credited Service under this Plan only after October 1,

21 Those Exempt Employees who irrevocably elect on or before July 1, 2005 to transfer from the Library District s Deferred Compensation Program (established pursuant to Code 457) to the Pension Plan, effective on October 1, 2005 shall have Months of Service for continuous employment before that date up to a maximum of ten (10) years, considered as Credited Service, only for purposes of Vesting upon termination of employment and for eligibility for Retirement at age sixty-five (65) with ten (l0) years of Credited Service, for eligibility for Retirement after twenty (20) years of service before the age of sixty-five (65), and for early Retirement, exclusive of purchase of Credited Service as provided for below. For purposes of calculation of the accrued benefit, the transferring employee shall accrue Credited Service under this Plan only after October 1, 2005, unless Credited Service is purchased as provided for below. Requirements for Purchase of Credited Service: (1) The Exempt Employee contributes to the fund the sum that he/she would have contributed, based on his/her Compensation and the Member contribution rate in effect at the time that the Credited Service is requested, had he/she been a Member of the Plan for the years or fractional parts of years for which he/she is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services rendered in connection with the purchase of the years of Credited Service. (2) The Exempt Employee requests the purchase of Credited Service in writing on or before July 1, (3). Payment by the Exempt Employee of the required amount shall be made on or before September 30, 2005, but not later than the Retirement date, and shall be made in one lump sum payment upon receipt of which Credited Service shall be given. b. For Library employees as of October 1, 1986, Credited Service shall include previous employment by the City of Gainesville in non-library related positions. c. For employees who did not sign a waiver of rights to future benefits under the City Plan, and whom therefore did not have funds transferred on their behalf to this plan, Credited Service shall not include any period of time prior to October 1, d. For purposes of calculation of the accrued benefit, the Credited Service of any Member making an election on or prior to November 9, 2007 to join the FRS Plan shall be frozen as of December 31, However, solely for purposes of determining a Member s vested right to his/her accrued benefit under the Pension Plan, any Member electing to join the FRS Plan shall continue to accrue Credited Service on and after January 1, 2008 as long as he/she remains employed by the Library. Once such a transferring former Member accrues at least five years of Credited Service, he/she shall become 100% vested in his/her accrued benefit earned through December 31, Temporary and Seasonal Employees This plan shall not be construed to include any temporary, or seasonal employees. If a temporary employee or seasonal employee subsequently becomes a Permanent Employee of the Library as defined herein, he/she shall not receive Credited Service for the period of employment as a temporary or seasonal employee. 7

22 5. Questions and Membership Employees shall have the right to appeal all questions of eligibility to the Board, whose decision shall be final and binding on all interested parties. 6. Re-employed Members In the event employment of a Member, entitled to a termination benefit, is terminated, and he/she is subsequently re-employed by the Library prior to his/her benefit commencement date, he/she shall continue to be entitled to the Credited Service he/she had previously earned, and shall again participate in the plan and accrue benefits after such date of re-employment, in accordance with the terms of the plan. A Member whose employment with the Library terminated prior to his/her entitlement to any termination benefits and who has had the amount, if any, he/she contributed to this plan repaid without interest, shall no longer be a Member of the plan and shall not be entitled to receive any benefits under the plan. If such Member is subsequently re-employed by the Library, he/she may recoup his/her previous Credited Service to which he/she was previously entitled, as provided in Article I and if he/she, within ninety (90) days from the date of his/her re-employment, refunds the amount of contributions paid out, plus interest at the plan s assumed rate as stated in the most recent actuarial valuation report filed with the State of Florida pursuant to Chapter (2), Florida Statutes, for each year and portion thereof of his/her absence. The preceding terms of this paragraph notwithstanding, in no event shall either of the following classes of former Members, who are subsequently reemployed by the Library on or after January 1, 2008, be permitted to again participate in the Pension Plan: i. Any former Member who, in accordance with the terms of paragraph 1.d., elected to transfer to the FRS Plan prior to the date of his/her termination of employment with the Library. ii. Any former Member who, in accordance with the terms of paragraph 1.d., elected to remain in the Pension Plan but subsequently terminated employment with the Library. 7. Separation from Employment for Military Service a. The years or fractional parts of a year that a Member serves in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, after separation from employment as an employee with the Library to perform training or service, and reemployment on or after December 12, 1994, shall be added to his/her years of Credited Service for all purposes, including Vesting, provided that: i. The Member must return to his/her employment as an employee within one (1) year from the earlier of the date of his/her military discharge or his/her release from service. ii. The Member deposits into the Plan the same sum that the Member would have contributed if he/she had remained an Employee during his/her absence. The Member must deposit all missed contributions within a period equal to three (3) times the period of military service, but not more than five (5) years from the date of reemployment or he/she will forfeit the right to receive Credited Service for his/her military service pursuant to this subsection. iii. The maximum credit for military service pursuant to this subsection shall be five (5) years. 8

23 iv. The Member must have been discharged or released from service under honorable conditions. v. This subsection is intended to satisfy the minimum requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L ). To the extent that this subsection does to meet the minimum standards of USERRA, as it may be amended form time to time, the minimum standards shall apply. b. In the case of a death occurring on or after January 1, 2007, if a Member dies while performing qualified military service (as defined in Code Section 414(u), the Plan will credit the Member s qualified military service as years of Credited Service for all purposes, including Vesting, as though the Member had resumed employment under USERRA immediately prior to the Member s death. 9

24 ARTICLE III - RETIREMENT DATE AND TERMINATION BENEFITS 1. Eligibility for Service Retirement a. Normal Retirement A Member of the Plan shall be eligible to retire under the terms of the Plan upon the earlier of the date he/she completes twenty (20) years of Credited Service or more at any age, or upon the date he/she completes five (5) years of Credited Service and attains age sixty-five (65). In such event he/she shall be entitled to and shall be paid an annuity calculated in accordance with Article IV. b. Early Retirement An employee who is a Member and has fifteen (15) years of Credited Service and has attained age fifty-five (55) may make application for early Retirement. On the recommendation of the Library Director and approval of the Board, the employee may retire on the first day of any month following his/her becoming eligible therefore as provided in this section. In such event he/she shall be paid an annuity calculated in accordance with Article IV except that the amount so computed shall be reduced by five-twelfths (5/12) of one (1) percent of said amount for each month by which his/her early Retirement date is less than the date he/she would have reached age sixty-five (65). c. Late Retirement Any Member of the Plan, whose employment continues beyond his/her sixty-fifth (65th) birthday, shall continue to participate in the Plan until actual Retirement. In such event, no retirement benefit will be paid to the Participant until he/she actually retires. Commencing on the first day of the month following actual Retirement, he/she shall be entitled to and shall be paid an annuity calculated in accordance with Article IV based on his/her years of Credited Service and Final Average Earnings as of his/her actual Retirement date. If, solely due to a reasonable administrative delay, payments do not commence on the first day of the month following actual Retirement, payments shall commence as soon as practicable, and such Member shall be entitled to back payments without interest from the first day of the month following actual Retirement. d. Termination of Employment A Member whose employment with the Library terminates prior to the completion of at least five (5) years of Credited Service, for any reason, shall not be entitled to any benefits under the Plan, provided however, that amounts contributed by Members shall be paid without interest to the Member or as applicable the Member s Beneficiary. A Member, whose employment with the Library terminates after the completion of at least five (5) years of Credited Service, but prior to Retirement, shall be entitled to a termination benefit. Previous to October 1, 1996, "five (5) years" in the context of his/her paragraph was replaced by "ten (10) years". Payment of the termination benefit shall be governed by the following provisions of this section. i. Benefit Amount A Member who is entitled to a termination benefit shall receive a monthly Retirement equal to his/her accrued benefit, except as provided in Article VI, determined as of his/her date of termination. 10

25 ii. Benefit Commencement Date. The benefit commencement date of a Member with at least five (5) years Credited Service but less than twenty (20) years Credited Service shall be the first day of the month after he/she has attained age sixtyfive (65). To the extent that commencement of such benefits is delayed beyond this date due to the failure of a former employee to contact the Committee within a reasonable time before his/her benefit commencement date, such former employee shall commence benefits as soon as practicable after completing any appropriate forms as the Committee shall require and shall be entitled to back payments without interest from the first day of the month after he/she had attained age sixty-five. iii. Benefit Payments The termination benefit shall be payable on the first day of each month. The first payment shall be made on the benefit commencement date, and benefits shall be payable thereafter according to the terms of the accrued benefit for the Member s lifetime. A Member may modify the amount and conditions of payment described in this section by electing an option in accordance with the optional forms of benefit section, in which event the termination benefit shall be paid in accordance with the terms of such option. e. Distribution of Benefits i. Notwithstanding any other Plan provision, payment of the Member s retirement income shall be made in accordance with Treasury regulations under Section 401(a)(9) of the Code, as applicable to governmental plans, which are incorporated herein by reference. ii. If the retirement income is payable before the Member s death, it shall commence not later than the Required Beginning Date and be distributable over one of the following periods: A. the life of the Member, B. the joint and survivor lives of the Member and the Member s designated Beneficiary, C. a period certain not extending beyond the life expectancy of the Member, or D. a period certain not extending beyond the joint and survivor life expectancies of the Member and the Member s designated Beneficiary. iii. Where a form of retirement income payment has commenced in accordance with the preceding paragraph and the Member dies before his/her entire interest in the Plan has been distributed, the remaining portion of such interest in the Plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the Member s death. iv. If the Member s death occurs before the distribution of his/her interest in the Plan has commenced, Member s entire interest in the Plan shall be distributed within five (5) years of Member s death, unless it is to be distributed in accordance with the following rules: A. The Member s remaining interest in the Plan is payable to his/her Spouse, issue or dependent; B. The remaining interest is to be distributed over the life of the Spouse, issue or dependent or over a period not extending beyond the life expectancy of the Spouse, issue or dependent; and C. Such distribution begins within one year of the Member s death unless the Member s Spouse, issue or dependent shall receive the remaining 11

26 interest in which case the distribution need not begin before the date on which the Member would have attained 70-1/2 and if the Spouse, issue or dependent dies before the distribution to the Spouse, issue or dependent begins, his/her Section shall be applied as if the Spouse, issue or dependent were the Member. v. Notwithstanding any other Plan provision, no benefit shall be paid under an optional form unless the incidental death benefit requirements of Section 401(a)(9) and applicable regulations thereunder are satisfied. vi. A Member s Required Beginning Date shall be the April 1 of the calendar year following the later of the calendar year in which the Member attains age 70-1/2, or the calendar year in which the Member retires. 12

27 ARTICLE IV - NORMAL RETIREMENT BENEFITS 1. Service Retirement Pension In the event of normal retirement or late retirement the retiring employee shall be entitled to and shall be paid a monthly Pension beginning with the month of Retirement and continuing until death, except as provided in Article VI. The amount of the monthly Pension to which a retired employee will be entitled will be equal to two (2) percent of his/her Final Average Earnings multiplied by the number of years of Credited Service divided by twelve (12). 2. Pension Payments Pension payments shall be made monthly beginning at the beginning of the first month of Retirement and continuing until the month in which he/she dies, unless a Retirement Annuity Option has been elected, in which case payments will be made in accordance with the option. 3. Cost of Living Increases a. Beginning October 1, 2001, and as of each subsequent October 1, all retirees and beneficiaries who are receiving monthly benefits shall have their benefits adjusted for changes in the cost-of-living as measured by the Consumer Price Index for the one year period ending on the preceding June 30. Prior to October 1, 2004, the percentage increase in benefits shall be limited to a maximum of two percent (2%) with regard to any such one-year period. b. Beginning October 1, 2004, and as of each subsequent October 1, the limit for the percentage increase in benefits, due to the change in the cost-of-living as measured by Consumer Price Index, shall be increased from two percent (2.0%) to two and two-tenths percent (2.2%) for years in which the change in the Consumer Price Index is a positive percent. c. Beginning effective October 1, 2009, in determining the possible adjustment in benefits to all retirees and beneficiaries who are receiving monthly benefits as of such date, changes in the cost-of-living as measured by the Consumer Price Index for the one-year period ending on the preceding June 30 shall continue to be employed in such determination; provided, however, that in no event shall the annual cost-of-living adjustment be less than zero percent (0%) for a one-year period in which the change in the Consumer Price Index is a negative percent on June 30. In such a year, there shall be no adjustment in benefits to all retirees and beneficiaries who are receiving monthly benefits as of the following October 1. d. The preceding terms of this Section 3 notwithstanding, any cost-of-living increase in the initial year of Retirement shall be prorated in order to reflect the number of months from the retiree s annuity starting date to the following October 1 when the cost-of living adjustment is being determined. 4. Maximum Benefits a. Basic Limitation Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable with respect to a Member under this Plan shall not exceed one hundred sixty thousand dollars ($160,000). For purposes of applying the above limitation, benefits payable in any form other than a straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury Regulations, so that such benefits are the actuarial equivalent of a straight life annuity. For purposes of this Section, the following benefits shall not be taken into account: 13

28 i. Any ancillary benefit which is not directly related to retirement income benefits; ii. Any other benefit not required under 415(b)(2) of the Code and Regulations thereunder to be taken into account for purposes of the limitation of 415(b)(1) of the internal Revenue Code. b. Participation in Other Defined Benefit Plans. The limitation of this Section with respect to any Member who at any time has been a Member in any other defined benefit plan (as defined in 414(j) of the Code) maintained by the Library shall apply as if the total benefits payable under all defined benefit plans in which the Member has been a Member were payable from one (1) plan. c. Adjustments in Limitations. i. In the event the Member s retirement benefits become payable before age sixtytwo (62), the one hundred sixty thousand dollar ($160,000) limitation prescribed by this Section shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of 415(b) of the Code, so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a one hundred sixty thousand dollar ($160,000) annual benefit beginning at age sixty-two (62). ii. The reductions provided for in i. above shall not be applicable to pre-retirement death benefits paid pursuant to Article V of this Plan. iii. In the event the Member s retirement benefit becomes payable after age sixtyfive (65), for purposes of determining whether this benefit meets the limitation set forth in subsection a. herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty-five (65). This adjustment shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his/her delegate. d. Less than Ten (10) Years of Service. The maximum retirement benefits payable under this Section to any Member who has completed less than ten (10) years of Credited Service with the Library shall be the amount determined under subsection a. of this Section multiplied by a fraction, the numerator of which is the number of the Member s years of Credited Service and the denominator of which is ten (10). The reduction provided for in this subsection shall not be applicable to pre-retirement death benefits paid pursuant to Article V of this Plan. e. Ten Thousand Dollar ($10,000) Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limitations set forth in this Section if the benefits payable with respect to such Member under this Plan and under all other qualified defined benefit pension plans to which the Library contributes do not exceed ten thousand dollars ($10,000) for the applicable plan year and for any prior plan year, and the Library has not at any time maintained a qualified defined contribution plan in which the Member participated. f. Reduction of Benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Member s benefit under any defined benefit plans in which Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administrator of such other plans, and next, by reducing or a1locating excess 14

29 forfeitures for defined contribution plans in which the Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such Member. g. Cost-of-Living Adjustments. The limitations as stated in subsections a., b. and c. herein shall be adjusted to the time payment of a benefit begins in accordance with any cost-or-living adjustments prescribed by the Secretary of the Treasury pursuant to 415(d) of the Code. h. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: i. The normal retirement benefit or Pension payable to a retiree who becomes a Member of the Plan and who has not previously participated in such Plan, on or after January 1, 1980, shall not exceed one hundred percent (100%) of his/her Final Average Earnings. However, nothing contained in this Section shall apply to supplemental retirement benefits or to Pension increases attributable to cost-of living increases or adjustments. ii. No Member of the Plan shall be allowed to receive a retirement benefit or Pension which is in part or in whole based upon any service with respect to which the Member is already receiving or will receive in the future a retirement benefit or Pension from a different employer s retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. 15

30 ARTICLE V - DEATH BENEFITS 1. Death While an Active Member a. Death of a Non-vested Member. If a non-vested Member actively employed by the Library dies prior to his/her eligibility for normal or early Retirement, no death benefits shall be payable from the plan, provided however, that amounts contributed by Members shall be paid without interest to the Member s Beneficiary. b. Death of Vested Member Prior to Retirement Eligibility. If an actively employed vested Member dies prior to his/her eligibility for early Retirement or normal Retirement, an immediate lump sum benefit will be payable to the Member s Beneficiary, equal to the Actuarial Equivalent of the survivor portion of the Member s vested benefit as if he/she had been eligible to retire and had retired with a pension, actuarially reduced for commencement prior to age sixty-five (65), on the day before he/she died and elected the 10 Year Certain and Life Option. However, in no event shall such lump sum be less than the amounts contributed by the Member without interest. c. Death of a Vested Member Eligible for Retirement. If a vested Member actively employed by the Library dies subsequent to his/her eligibility for normal or early Retirement, benefit payments will be made to the Member s Beneficiary in accordance with the Joint Annuity Option as though the Member had retired on the day before he/she died. In lieu of the foregoing, the Beneficiary may elect to receive the survivor portion of the Member s vested benefit as if he/she had retired on the day before he/she died and elected the 10 Year Certain and Life Option. 2. Death Subsequent to Termination of Employment But Prior to Benefit Commencement a. Death of Terminated Member Prior to Retirement Eligibility. If a vested Member dies subsequent to termination of employment but prior to eligibility for retirement, an immediate lump sum benefit will be payable to the Member s Beneficiary, equal to the actuarial equivalent of the survivor portion of the Member s vested benefit as if he/she had had been eligible to retire and had retired with a pension, actuarially reduced for commencement prior to age sixty-five (65), on the day before he/she died and elected the 10 Year Certain and Life Option. However, in no event shall such lump sum be less than the amounts contributed by the Member without interest. b. Death of a Terminated Member After Election of Form of Benefit. If a terminated, vested Member dies subsequent to his/her eligibility for normal Retirement or early Retirement, but prior to benefit commencement, and had elected an optional form of benefit, as provided in Article VI, benefit payments will be made to the Beneficiary in accordance with the terms of said option as though the employee had commenced benefits on the day before he/she died, provided, however, that amounts contributed by Members who elected the normal form shall be paid without interest to the Member s Beneficiary immediately as a lump sum. c. Death of a Terminated Member After Eligibility for Retirement. If a terminated, vested Member dies subsequent to his/her eligibility for normal or early Retirement, but had not elected an optional form of benefit as provided in Article VI, benefit payments will be made to the Member s Beneficiary in accordance with the Joint Annuity Option as though the Member had retired on the day before he/she died. In lieu of the foregoing, the Beneficiary may elect to receive the survivor portion of the Member s vested benefit as if he/she retired on the day before he/she died and elected the 10 Year Certain and Life Option. 16

31 3. Death After Benefit Commencement If a Member dies subsequent to his/her benefit commencement date, no death benefit shall be payable unless the Member had elected an optional form of benefit, as provided in Article VI, in which case the terms of the optional form selected shall apply, provided however, that amounts contributed by Members in excess of retirement benefits paid to the Member shall be paid without interest to the Member s Beneficiary immediately as a lump sum. 4. Optional Lump Sum If, as of the date a death benefit becomes payable in accordance with paragraphs 1(c), 2(b) or 2(c) of this Article V, the Actuarial Equivalent lump sum value of such benefit does not exceed $5,000, the Beneficiary may elect to receive an immediate Actuarial Equivalent lump sum payment in lieu of annuity payments. 5. Death While Performing Qualified Military Service Effective January 1, 2007, the survivors of a Member who dies while performing qualified military service as defined in Code Section 414(u) shall be entitled to any death benefits that would have been payable under the Plan had the Participant resumed employment with the Employer prior to his death, and then terminated such employment on account of death. 17

32 ARTICLE VI - OPTIONAL FORMS OF RETIREMENT BENEFITS 1. Retirement Annuity Option Upon a Member becoming eligible to receive an annuity, he/she may elect to receive annuity benefits payable under the plan in the form of a joint survivor annuity instead of a Normal Annuity Form, which shall be the Actuarial Equivalent of the annuity he/she would receive under the Normal Annuity Form. If any Member who has a spouse at his/her benefit commencement date, fails to make such an election it will be assumed that he/she elected Option A below with his/her spouse as the Beneficiary and if the Member does not have a spouse at his/her benefit commencement date, it will be assumed that the Member elected the Normal Annuity Form. a. Option A - Joint Annuity Option A reduced monthly retirement benefit which shall be payable during the joint lifetime of the Member and his/her Beneficiary, with two-thirds (2/3) of such reduced annuity amount continuing after the death of the Member during the lifetime of the Beneficiary. If the Beneficiary predeceases the Member, one hundred (100) percent of the reduced benefit will continue to be received by the Member. b. Option B - Joint and last Survivor Annuity Option A reduced monthly retirement benefit which shall be payable during the joint lifetime of the Member and his/her Beneficiary, with two-thirds (2/3) of such reduced benefit amount continuing automatically after the death of either Member or Beneficiary, payable for the lifetime of the survivor. c. Option C -10 Year Certain and Life Option A reduced monthly retirement benefit which shall be payable for the lifetime of the Member. In the event of death before the Member has received retirement benefits for a period of 10 years, the same monthly benefit will be paid to the Beneficiary for the balance of such 10 year period. The election of a Retirement Annuity Option shall be deemed automatically canceled at the death of the proposed Beneficiary prior to the Member s benefit commencement date. Provided, however, a retired Pensioner may change his/her option after benefit commencement either from a Retirement Annuity Option or to a Retirement Annuity Option in the event of: 1) divorce or legal separation, when the same has been considered and approved by the court granting same as a part of the settlement or 2) the marriage of an unmarried employee who becomes married after the date of benefit commencement. The benefits paid under such changed annuity shall be the Actuarial Equivalent to the remaining value of the former annuity determined as of the date of the benefit change. No option may be elected unless the distribution is for a term not exceeding the life (lives) of the Member, or the Member and his/her spouse, if applicable, measured as of the benefit commencement date, or if the Beneficiary is not the Member s spouse over the life expectancy of the Member, or the life expectancies of the Member and his/her Beneficiary. 18

33 ARTICLE VII - CONTRIBUTIONS 1. Pension Fund The Alachua County Library Pension Fund shall be the fund in which shall be accumulated all contributions made to the fund and from which shall be paid benefits and other payments in accordance with this Article. 2. Member Contributions 3. Library Contributions a. Member contributions to the plan shall be at the rate of four (4) percent of Compensation. b. Contributions provided for in this Article shall be deducted from the compensation of each Member, for each and every pay period, so long as the Member is performing eligible service. Each Member shall be deemed to consent and agree to the deduction made and provided for herein)and payment of his/her compensation less said deduction shall be full and complete discharge of all claims and demands whatsoever for the service rendered by said Member during the period covered by such payment, except as to the benefits provided by this plan. c. Any terminating Member of the Plan, who is not Vested according to Article III, 1, (d), who has made contributions to the Plan, may receive from the Fund a refund of those contributions. Such refund constitutes a waiver of the Member s participation in the Plan. In addition to the contributions provided for here to be paid by Members of the Plan, the Library shall deposit in the fund annually a sum which, together with the contributions from Members and other sources of income to the fund, shall be sufficient to fund the Normal Cost of the plan and to amortize the unfunded actuarial accrued liability of the plan over a period not longer than thirty (30) years. If the amortization schedule for the unfunded actuarial accrued liability is to be based on a contribution derived in whole or in part from a percentage of payroll of the plan membership, the assumption as to payroll growth shall not exceed the average payroll growth for the three (3) years prior to the development of the amortization schedule. Any forfeitures arising shall be applied to reduce future employer contributions to the plan. No forfeited amount shall be applied to change benefit amounts for Members. 4. Amortization Schedule Effective October 1, a. If the amortization schedule for unfunded liability is to be based on a contribution derived in whole or in part from a percentage of the payroll of the system or plan Membership, the assumption as to payroll growth shall not exceed the average payroll growth for the 10 years prior to the latest actuarial valuation of the system or plan unless a transfer, merger, or consolidation of government functions or services occurs, in which case the assumptions for payroll growth may be adjusted and may be based on the membership of the retirement plan or system subsequent to such transfer, merger, or consolidation. b. An unfunded liability amortization schedule that includes a payroll growth assumption and is in existence on September 30, 1996, or is established thereafter, may be continued using the same payroll growth assumption, or one not exceeding the payroll growth assumption established at the start of the schedule, regardless of the actual 10-year average payroll growth rate, provided that: 19

34 (i) The assumptions underlying the payroll growth rate are consistent with the actuarial assumptions used to determine unfunded liabilities, including, but not limited to, the inflation assumption; and (ii) The payroll growth rate is reasonable and consistent with future expectations of payroll growth. c. An unfunded liability amortization schedule that does not include a payroll growth assumption and is in existence on September 30, 1996, or is established thereafter, may be continued or modified to include a payroll growth assumption, provided that such assumption does not exceed the 10-year average payroll growth rate as of the actuarial valuation date such change in the amortization schedule commences. Such schedule may be continued thereafter, subject to the reasonable and consistent requirements in paragraph (b). 20

35 ARTICLE VIII - AMENDMENT AND TERMINATION OF PLAN 1. Amendment of Plan The Alachua County Library District Pension Board of Trustees shall have the right at any time to modify, alter, or amend the plan in whole or in part; provided, however, that no amendment shall cause or permit any portion of the fund to be diverted to purposes other than the exclusive benefit of Members and beneficiaries, or to reduce any benefits or amounts already vested in the Members according to the provisions of this plan. No amendment shall have the effect of revesting in the Alachua County Library District any portion of the fund, except such amount as may remain in the fund after the satisfaction of all liabilities under the plan. 2. Termination of Plan The Alachua County Library District Pension Board of Trustees reserves the right to terminate the plan and its contributions thereunder at any time, the termination to be effective at the close of business on a date designated. If the plan is terminated and contributions to it completely discontinued, the Board shall continue to administer the Fund in accordance with the provisions hereof. In the event of termination, or complete discontinuance of contributions, the Fund held on the effective date of such termination or discontinuance shall be administered for the sole benefit of the then Members, active and retired, and Beneficiaries then receiving benefits and any further Beneficiaries entitled to receive benefits, who are designated by any of said Members. Subjects to the provisions of this Section 2, the Fund shall be promptly allocated by the Board in an equitable manner to provide benefits for the persons stated in this Section 2, in accordance with the provisions of the plan, and in the following order of priority: a. Member contributions b. Members already retired under the normal retirement provisions of this plan and those eligible for normal Retirement but not actually retired, and their Beneficiaries, in proportion to and to the extent of the then actuarially determined present value of the benefits payable. If any funds remain, then, c. Members already retired or eligible for Retirement under the early Retirement provisions of this plan and their Beneficiaries in the same manner as b above. If any funds remain, then, d. Vested Members and their Beneficiaries in the same manner as b above, but based upon Credited Service and Final Average Earnings as of the date of termination of the Plan. If any funds remain, then, e. All other Members and their beneficiaries in the same manner as b above, but based upon Credited Service and Final Average Earnings as of the date of termination of the Plan. The funds may be distributed in one sum to the persons entitled to said benefits in the proportion of the then present value of said benefits, or the allocation may be carried out pursuant to such other method or in such other equitable manner as the Board may direct. 21

36 ARTICLE IX - GENERAL PLAN ADMINISTRATION The Board shall administer the Plan subject to the provisions hereof, with all powers necessary to enable it to properly carry out its duties in that respect. Not in limitation, but in amplification of the foregoing, the Board shall have the power to construe this Plan and to determine all questions that may arise hereunder. It shall determine all questions relating to the eligibility of employees to participate in this Plan and the amount of retirement allowance or other benefits to which any Member or Beneficiary may become entitled hereunder. The decisions of the Board upon all matters within the scope of its authority shall be final. The Board shall establish rules and procedures to be followed by the Alachua County Library District (ACLD) Administration Office in its administrative duties related to pension matters performed on behalf of the Board. In addition, the Board shall establish rules and procedure to be followed by the Members or Beneficiaries in filing application for benefits and for furnishing and verifying proofs necessary to establish age, Credited Service, earnings and any other matters required in order to establish the right to benefits in accordance with the Plan. The Alachua County Library District Administration Office shall receive all applications for benefits. Upon receipt by the Administration Office of such an application, it shall determine all facts which are necessary to establish the right of the applicant to the right of a hearing with respect to any findings of fact or determination. Under the direction of the Board, the ACLD Administration Office shall prepare and distribute to the Members, in such manner as it shall deem appropriate, information concerning the Plan. To enable the Board to perform its functions, the Library shall supply full and timely information to the Board of all matters relating to the earnings of all Members, their length of service, Retirement, death or other cause for termination of employment, and such other pertinent facts as the Board may require. All such information shall be made available to the Actuary for use in performing annual actuarial valuations of the Plan. The Library shall notify the corporate custodian in writing of the members of the Board and any changes therein, and shall certify to the signatures of said members. The Board shall, thereupon, advise the corporate custodian of such facts and issue such instructions as may be required by the corporate custodian in order for it to perform its duties under the Plan. The Board and the Library shall be entitled to rely upon all tables, valuations, certificates and reports made by a certified public accountant or Actuary selected or approved by the Board. The Library and its Board and the corporate custodian shall not be held liable in any respect for action taken or suffered by them in good faith in reliance upon the advise or opinion of any such Actuary, accountant or counsel, and all action so taken or suffered shall be conclusive upon each of them and upon all other persons interested in the Plan. The Board shall appoint such agents, as it may deem necessary for the effective performance of its duties, whether ministerial or discretionary, as the Board may deem expedient or appropriate, including the corporate custodian, investment managers, and actuarial, accounting, legal, and other professional services. The compensation of such agents shall be fixed by the Board. Action of the Board shall be determined by the vote or other affirmative expression of a majority of its members in attendance where a quorum is present. The Board shall hold meetings upon written notice at such place or places and at such time or times as it may from time to time determine. Meetings may be called by the Board or any two members. A majority of the members of the Board at the time in office shall constitute a quorum for the transaction of business. 22

37 Members of the Board shall service without compensation for services as such, but the Library shall pay or reimburse the Board for all expenses reasonably incurred by the Board, including the compensation of its agents. 23

38 ARTICLE X - PENSION COMMITTEE 1. Appointment and Term of Office The Pension Committee shall consist of five (5) or more persons, including the Library Director or his/her designee, one Member of the Plan to be elected by the actively employed Members of the Plan for a three (3) year term, and three (3) current members of the Alachua County Library Board of Trustees (a Board appointed by the Governing Board, as provided in Chapter , Florida Statutes). Each committee member shall be a fiduciary with respect to the Plan. Any member may resign at any time by notice in writing filed with the Board. Vacancies shall be filled promptly in such manner that the composition shall be as herein prescribed. 2. Organization of Committee The committee shall elect a chairperson from among its members and a secretary who need not be a member of the committee. Any action of the committee shall be determined by the concurring vote or other affirmative expression of a majority of its members in attendance where a quorum is present. The committee shall hold meetings upon written notice of at least twentyfour (24) hours, at such place or places and at such time or times as it may from time to time determine. Meetings may be called by the chairman or any two members. A majority of the members of the committee at the time in office shall constitute a quorum for the transaction of business. 3. Responsibility of the Committee For and on behalf of the Board, the committee shall be charged with advising the Board regarding the operation and administration of the Plan, subject specifically to the documents and instruments establishing and governing the Plan. Not in limitation, but in amplification of the foregoing, the committee shall oversee the Alachua County Library District Administration Office in its administrative duties to: a. Consider all questions relating to eligibility for membership and benefits, b. Determine or have determined pursuant to its direction the amount of retirement or other benefits payable under the Plan, forms. c. Assist in the establishment of uniform rules, procedures, and administrative d. Receive all applications for membership and for benefits, determine all necessary facts, and make recommendations to the Board as appropriate, e. Hold hearings with respect to any fact or determination, f. Distribute information concerning the Plan, and g. Perform any other fiduciary and administrative duties required under this Plan which are not specifically allocated to other fiduciaries. To enable the committee to perform its functions, the Library shall supply full and timely information to the committee of all matters relating to the earnings of all Members, their length of service, Retirement, death or other cause for termination of employment, and such other pertinent facts as the committee may require. The committee shall have no power in any way to modify, alter, add to, or subtract from any provisions of the Plan. 24

39 4. Records of the Committee All acts and determination of the committee shall be duly recorded by the secretary thereof, or under his/her supervision, and all such public records, together with such other documents as may be necessary for the administration of the Plan shall be preserved in the custody of such secretary. Such public records and documents shall at all times be open for inspection, and for the purpose of making copies, by any person designated by the Library or the public in accordance with the Florida Public Records Law. 5. Committee Members - Standards of Responsibility Committee Members, in the performance of their duties, must conform and act pursuant to the documents and instruments establishing and governing the Plan. Members shall carry out their duties with the care, skill, prudence and diligence, which a prudent person acting in a like capacity would use under conditions prevailing at the time. 25

40 ARTICLE XI - TRUST FUND AND BOARD OF TRUSTEES 1. Trust Fund A trust fund is hereby established as part of the Plan. The trust fund shall consist of all contributions by the Library and by Members and all other increments and accruals thereto. The Fund shall be held, administered and invested by the Board of Trustees, in the manner hereinafter provided. 2. Powers of Trustees The Board shall have the authority to appoint an independent investment manager(s) who is a bank with trust powers or is registered as an investment adviser under the Investment Advisers Act of 1940, for purposes of managing all or a portion or of the fund. Subject to the restrictions imposed by such appointment, the Board shall hold and manage the fund and shall have all powers necessary, proper and convenient for the preservation, management and direction thereof, including, but not by way of limitation, authority to: a. Invest and reinvest the fund in such securities or in such property real or personal, wherever situated, as the Board shall deem advisable, including but not limited to, stocks, common or preferred, bonds and other evidences of indebtedness or ownership, although the same may not be of the character permitted for Trustees investment by the laws of the State of Florida. The Board shall be vested with full legal title to said fund. All contributions from time to time paid, and the income thereof, without distinction between principle and income, shall be held and administered in a single trust fund and the Board shall not be required to segregate or invest separately any portion of the fund. b. Invest and reinvest the property of the trust in common trust funds or diversified pension funds or mutual funds maintained by the corporate custodian and available only to pension and profit sharing trustees which meet requirements of Section 401(a) of IRC (1954) or any statute of similar import, and such common trust fund or mutual funds shall constitute an integral part of this Plan and trust. c. Invest fund assets in deposits in a bank or financial institution supervised by the United States or a State even though the bank or financial institution is the corporate custodian of the Plan, provided that any such deposit bears a reasonable rate of interest. The Board may invest cash or cash equivalents in a money market fund composed of anyone or any combination of the following: US Treasury obligations, commercial paper, certificates of deposit and other similar money market instruments or in variable amount notes, master notes, master saving accounts, master certificates of deposit and any similar instrument, including repurchase agreements. The Board, in the performance of its duties, must exercise the care, skill, prudence and diligence which a prudent person acting in a like capacity would use under conditions prevailing at the time. d. Cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee as it may direct, or it may retain them unregistered an in form permitting transferability, but the books and records of the trust shall at all times show that all investments are part of the fund. e. Retain in cash and keep unproductive of income such amount of the trust as it may deem advisable, having regard for the cash requirements of the trust. f. Buy, sell, convert, redeem, exchange, or otherwise dispose of, any real or personal property or securities held by it at public or private sale, without notice or advertisement for cash or upon credit, without obligation on the part of any person dealing with 26

41 the Board to see to the application of the proceeds of or to inquire into the validity, expediency or propriety of any such disposition; manage, operate, repair, improve or mortgage or lease for any length of time any real or personal property held in the trust; make, execute, acknowledge and deliver any and all deeds, leases, contracts, assignments, waivers, releases or other instruments; borrow money in any amount and upon any terms and conditions, for purposes of this agreement, and may pledge or mortgage any property held in the trust to secure the repayment of any such loan. g. Vote upon any stocks, bonds or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; deposit such stock or other securities in any voting trust or any protective or like committee or with the Trustee or with depositories designated thereby; amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, exercise any of the powers of an owner with respect to stocks, bonds, or other investments, comprising the trust fund which it may deem to be to the best interest of the trust fund to exercise. The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained. h. Consult with counsel, who may be counsel for the Library, and shall not be held liable in acting on advice from counsel with respect to legal questions. i. Where any action which the Board is required to take or any duty or function which it is required to perform, either under the terms of this Plan or under the general law applicable to it as Trustee, can reasonably be taken or performed only after receipt by it of specific information, certification, direction or instructions, the Board shall incur no liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it. j. Any overpayments or underpayments from the trust fund to a retired Member or Beneficiary caused by errors of computation shall be adjusted with interest at the rate per annum approved by the Board. Overpayments shall be charged against retirement payments next succeeding the correction. Underpayments shall be made up from the trust fund. k. The Board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits herein provided for and shall be under no duty or obligation to inquire into the sufficiency of the payments made into the fund. l. In any application to or proceeding or action in the courts, only the Library and the Board shall be necessary parties, and no Member or other person having an interest in the Fund shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. 3. Delegation of Powers In the event the Board does appoint one or more independent investment managers to direct the investments of all or part of the assets of the trust fund, the corporate custodian may serve as custodian only and carry out the investment directions of the duly appointed investment manager(s). The corporate custodian, in such event, shall not be responsible for investment performance of that portion of the fund in carrying out and implementing the instructions of the investment managers; however, the Board shall nevertheless periodically and continuously, no less than on a quarterly basis, monitor and review reports of the investment manager regarding investment performance of the fund. 27

42 4. Corporate Custodian The Board shall appoint a corporate custodian, which may also serve as investment manager, for the purpose of carrying out designated responsibilities of the Board, including but not limited to payment of benefits, maintaining complete accountings of the Fund, preparation of income tax forms, and any other of the responsibilities of the Board enumerated above and delegated to it by the Board. The corporate custodian shall be a trust company or national or state bank with trust powers. In the event the custodian shall deem it necessary to withhold any distribution pending compliance with legal requirements with respect to probation of the estates, payment or provision for estate or inheritance taxes or for death duties or otherwise, it shall notify the Library and the Board of Trustees and shall thereafter take no action pending receipt of the Board s instructions for distribution and an agreement from the Library, in form satisfactory to the custodian, to indemnify the custodian from any liability arising out of non-compliance with such requirements. The custodian may resign at any time by giving written notice to the Board. Upon such resignation becoming effective, the custodian shall render to the Board an accounting of its administration of the Fund during the period following that covered by its last full accounting and shall perform all acts necessary to transfer the assets of the fund to its successor. The Board may remove the custodian at any time upon the delivery of sixty (60) days written notice. In the event of such removal, the custodian shall be under the same duty to account and to transfer the assets of this fund to its successor as provided in the case of resignation. The custodian may reserve such sums as deemed necessary to defray its expenses in setting its accounts, to pay any of its compensation due and unpaid, and to discharge any obligation of the trust for which the custodian may be liable; but if the sums so reserved are not sufficient for these purposes, the custodian shall be entitled to recover the amount of any deficiency from either the custodian or the successor custodian or both. The custodian shall keep accurate and detailed accounts of all its receipts, investments and disbursements under his/her Plan. As of the end of each fiscal-year, and at such other times as the Board shall direct, the custodian shall determine the net worth of the assets of the trust and report such valuation to the Board in writing. In determining such net worth, the custodian shall evaluate the assets of the trust at their fair market value as of such valuation date. The custodian shall be paid such compensation for its services under this Plan as shall be agreed upon from time to time between the Board and the custodian; such compensation shall be paid either directly from the trust, or else by the Library. In addition, all other fees and expenses arising by reason of service performed in connection with this shall be paid either from the trust, or directly by the Library. 5. Direct Transfers of Eligible Rollover Distributions Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee s ejection under this Section, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. For purposes of this Section, the following definitions apply: a. Eligible Rollover Distribution. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee s designated Beneficiary, or for a specified period of ten years or more; any 28

43 distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includible in gross income. Any portion of any distribution which would be includible in gross income will be an eligible rollover distribution if the distribution is made to an individual retirement account or annuity described in section 408(a) or (b) of the Code (a traditional IRA); a Roth individual retirement account or annuity described in 408A (a Roth IRA ); or to a qualified defined benefit, defined contribution or annuity plan described in section 401(a) or 403(a) of the Code, or to an annuity contract described in 403(b), if such plan or contract provides for separate accounting for amounts so transferred (including interest thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. Notwithstanding the above, a distribution shall not fail to be an eligible rollover distribution merely because a portion of the distribution consists of after-tax voluntary Employee contributions which are not includible in gross income, provided that the recipient eligible retirement plan has agreed to account separately for such after-tax amounts. b. Eligible Retirement Plan. An eligible retirement plan is a traditional IRA, a Roth IRA, an annuity plan described in section 403(a) of the Code, an annuity contract described in section 403(b) of the Code, an eligible deferred compensation plan described in section 457(b) of the Code which is maintained by an eligible employer described in section 457(e)(l)(A) of the Code and which agrees to separately account for amounts transferred into such plan from this Plan, or a qualified plan described in section 401(a) of the Code, that accepts the distributee s eligible rollover distribution. With respect to a distribution to a non-spouse Beneficiary made in Plan Years after December 31, 2006, an eligible retirement plan shall mean an Individual Retirement Account (IRA) the Beneficiary establishes for purposes of receiving the distribution. In the case of a nonspouse beneficiary, the direct rollover may be made only to a traditional IRA or Roth IRA that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA pursuant to the provisions of section 402(c)(11). c. Distributee. A distributee includes an employee or former employee. The employee s Beneficiary is a distributee with regard to the interest of the Beneficiary. In addition, distributee shall include a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in 414(p) of the Code. d. Direct Rollover. A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. 6. Rollovers or Transfers into the Fund. On or after January 1, 2002, the Plan will accept, solely for the purpose of purchasing Credited Service as provided herein, permissible Member requested transfers of funds from other retirement or pension plans, Member rollover cash contributions and/or direct cash rol1overs of distributions made on or after January 1, 2002, as follows: Plans. a. Transfers and Direct Rollovers or Member Rollover Contributions from Other The Plan will accept either a direct rollover of an eligible rollover distribution or a Member contribution of an eligible rollover distribution from a qualified plan described in section 401(a) or 403(a) of the Code, from an annuity contract described in section 403(b) of the Code or from an eligible plan under section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. The Plan will also accept legally permissible Member requested transfers of funds from other retirement or pension plans. 29

44 b. Member Rollover Contributions from IRAs. The system will accept a Member rollover contribution of the portion of a distribution from an individual retirement account or annuity described in section 408(a) or 408(b) of the Code that is eligible to be rolled over and would otherwise be includible in gross income. 30

45 ARTICLE XII - GENERAL PROVISIONS 1. Construction The headings and subheadings in this Plan have been inserted for convenience or reference only, and are to be ignored in any construction of the provisions hereof. 2. Employment 3. Claims The adoption and maintenance of the Plan shall not be deemed to constitute a contract between the Library and any Member or employee, or to be a consideration for, inducement to, or condition of, employment of any person. Nothing herein contained shall be construed to give any employee the right to be retained in the employ of the Library or to interfere with the right of the Library to terminate the employment of any employee at any time, nor upon dismissal or upon his/her voluntary termination of employment, to have any right or interest in the fund other than as is herein provided. Further, no person shall be entitled to remain in employment, regardless of age, if in the opinion of the Library such person is incapable of or fails to satisfactorily perform his/her assigned job functions, for reasons of physical infirmity, emotional or mental impairment, lack of aptitude for the position held or for other cause. However, discharge, forced Retirement, refusal to hire or denial of promotion may not be determined solely on the basis of age. Any payment to a Member or Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims hereunder against the corporate custodian, the Board and the Library, any of whom may require such Member or Beneficiary, as a condition precedent to such payment, to execute a receipt and release therefore in such forms as shall be determined by the corporate custodian, the Board or the Library, as the case may be. 4. Spendthrift Clause a. In general, no benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void, nor shall any such benefit be in any manner liable for or subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such benefit. For purposes of this paragraph, there shall not be taken into account any voluntary and revocable assignment of not to exceed ten percent (10%) of any benefit payment. The preceding sentence shall not, however, apply to any assignment or alienation made for the purposes of defraying Plan administration costs. b. Paragraph (a) shall apply to the creation, assignment, or recognition of a right to any benefit payable with respect to a Member for a domestic relations order, except not if the order is determined to be a "qualified domestic relations order". The Plan shall make payment of benefits in accordance with the applicable requirements of any qualified domestic relations order. The term "qualified domestic relations order" means a domestic relations order which creates or recognizes the existence of an alternate payee s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a Member under the Plan, and with respect to which the requirements below are met, and, the term "domestic relations order" means any judgment, decree, or order (including approval of a property settlement agreement) which relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a Member and is made pursuant to a State domestic relations law (including a community property law). 31

46 5. Incompetents If any Member or Beneficiary is a minor or is, in the judgment of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment due him/her under the Plan, the Board may, unless and until claims shall have been made by a duly appointed guardian or committee of such person, make such payment or any part thereof to such person s spouse, children, or other person deemed by the Board to have incurred expenses or assumed responsibility for the expenses of such person. Any payment so made shall be complete discharge of any liability under the Plan for such payment. 6. Written Communications Required Any notice, request, instruction or other communication required to be given or made hereunder shall be made in writing and either personally delivered to the addressee or deposited in the United States mail fully postpaid and duly addressed to such addressee at the last address for notice shown on the records of the Board. 7. Copy Available to Members A copy of this Plan and any and all future amendments thereto shall be available to Members for inspection at all reasonable times. 8. Non-Discrimination Wherever it is provided in this Plan directly or by implication that the Board or any other person or persons concerned with the administration of the Plan and fund shall exercise discretion in the making of any decision, such discretion shall be exercised so as not to discriminate among persons similarly situated. 9. Plan Governed by Florida Law 10. Multiple Copies The Plan shall be construed in accordance with the laws of the State of Florida. This agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. 11. Acceptance The Board of Trustees, by joining in the execution of this Plan and trust agreement, hereby confirms its acceptance and approval and agrees to carry out the provisions hereof on its part as trustee. 12. Separability Clause If any provision of this Plan and trust shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective. 32

47 EXECUTION OF PENSION PLAN AND TRUST AGREEMENT IN WITNESS WHEREOF, the Library and the Board of Trustees have caused this Indenture to be executed by their duly authorized officers and their respective seals to be affixed and duly attested as of this day of, 20. PENSION BOARD OF TRUSTEES OF THE ALACHUA COUNTY LIBRARY DISTRICT BY: Chair ATTEST: BY: Clerk of Circuit Court APPROVED AS TO FORM: BY: ALACHUA COUNTY ATTORNEY 33

48 Alachua County Library District Pension Plan APPENDIX A Alachua County Library District Pension Plan Unused PTO Conversion Chart for Additional Credited Service Unused PTO Hours Equivalent to # of (Range from # to #) Additional Months of Credited Service

49 ALACHUA COUNTY LIBRARY DISTRICT PENSION PLAN AMENDMENT FOR PPA, HEART ACT AND OTHER LAW CHANGES (Governmental Defined Benefit Plan) ARTICLE I PREAMBLE 1.1 Adoption and effective date of Amendment. The Employer, the sponsor of a governmental plan pursuant to the Code 414(d), adopts this Amendment to the Plan to reflect recent law changes. This Amendment is effective as indicated below for the respective provisions. 1.2 Superseding of inconsistent provisions. This Amendment supersedes the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. 1.3 Employer s election. The Employer adopts the default provisions of this Amendment except as otherwise elected in Article II. 1.4 Construction. Except as otherwise provided in this Amendment, any reference to Section in this Amendment refers only to sections within this Amendment, and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment, and does not relate to any Plan article, section or other numbering designations. 1.5 Effect of restatement of Plan. If the Employer restates the Plan, then this Amendment shall remain in effect after such restatement unless the provisions in this Amendment are restated or otherwise become obsolete (e.g., if the Plan is restated onto a plan document which incorporates PPA provisions). ARTICLE II EMPLOYER ELECTIONS The Employer only needs to complete the questions in Sections 2.2 through 2.7 below in order to override the default provisions set forth below. 2.1 Default Provisions. Unless the Employer elects otherwise in this Article, the following defaults will apply: a. The applicable mortality table described in Amendment Section 3.3.3(c) is effective for years beginning after December 31, b. Nonspousal beneficiary rollovers are permitted effective for distributions made after December 31, c. In-Service distributions prior to Normal Retirement Age are not permitted. d. Continued benefit accruals pursuant to the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act) are not provided. e. Unless an election is made under Section 2.6, the applicable interest rate shall be based upon the same lookback month and stability period in effect under the Plan prior to the adoption of this Amendment. Page 1 of 8

50 2.2 Effective date of applicable mortality table set forth in Amendment Section 3.3.3(c). The applicable mortality table described in Amendment Section 3.3.3(c) is effective for years beginning after December 31, 2007, unless an alternative is elected below: [ ] The applicable mortality table described in Amendment Section 3.3.3(c) is effective for years, including a portion of a year, beginning after (may be a date after December 31, 2007 and before January 1, 2009.) 2.3 Non-spousal rollovers (Article IV). Non-spousal rollovers are permitted after December 31, 2006 unless elected below (Article IV provides that such distributions are always permitted after December 31, 2009): [ ] Use the following instead of the default (select one): 1. [ ] Not permitted. 2. [ ] Permitted effective (not earlier than January 1, 2007 and not later than January 1, 2010). 2.4 In-Service distributions (Article VIII). In-Service Distributions prior to Normal Retirement Age are not permitted unless elected below: [ ] In-Service distributions will be allowed for Participants at age 62 effective as of the first day of the 2007 Plan Year unless another age and/or date is elected below: 1. [ ] age (may not be earlier than 62) 2. [ ] effective as of (may not be earlier than the first day of the 2007 Plan Year). 2.5 Continued benefit accruals (Article XII). Continued benefit accruals for the Heart Act (Amendment Section 12.2) will not apply unless elected below: [ ] The provisions of Amendment Section 12.2 apply. 2.6 Applicable interest rate. For purposes of Amendment Section 13.2, unless otherwise elected below, the stability period and the lookback month are set forth in the Plan. (If an alternative election is being made, then a selection at both a. and b. must be made.) a. The stability period for purposes of determining the Applicable Interest Rate is: 1. [ ] One calendar month 2. [ ] One Plan Year quarter 3. [ ] One calendar year quarter 4. [ ] One Plan Year 5. [ ] One calendar year b. The lookback month relating to the Stability Period is the: 1. [ ] first calendar month preceding the first day of the Stability Period 2. [ ] second calendar month preceding the first day of the Stability Period 3. [ ] third calendar month preceding the first day of the Stability Period 4. [ ] fourth calendar month preceding the first day of the Stability Period 5. [ ] fifth calendar month preceding the first day of the Stability Period 6. [ ] average rate for two or more calendar months preceding the first day of the Stability Period (specify which of the first through fifth months are averaged) Page 2 of 8

51 ARTICLE III PENSION FUNDING EQUITY ACT OF 2004 AS MODIFIED BY SUBSEQUENT LEGISLATION 3.1 General Rule. This Article applies to the determination of the Code Section 415 limits Effective date. The Employer adopts this Article III to reflect certain provisions of the Pension Funding Equity Act of 2004 (PFEA), as modified by the Pension Protection Act of 2006 and the Worker, Retiree and Employer Recovery Act of Except as otherwise provided herein, effective for distributions in Plan Years beginning after December 31, 2003, the required determination of actuarial equivalence of forms of benefit other than a straight life annuity shall be made in accordance with this Article Definition of "Applicable Mortality Table." The "applicable mortality table" means the applicable mortality table within the meaning of Code Section 417(e)(3)(B) (as described in Article XIII). 3.2 Benefit Forms Not Subject to the Present Value Rules of Code Section 417(e)(3) Form of benefit. The straight life annuity that is actuarially equivalent to the Participant s form of benefit shall be determined under this Section 3.2 if the form of the Participant s benefit is either: (a) (b) A nondecreasing annuity (other than a straight life annuity) payable for a period of not less than the life of the Participant (or, in the case of a qualified pre-retirement survivor annuity, the life of the surviving spouse), or An annuity that decreases during the life of the Participant merely because of: (1) The death of the survivor annuitant (but only if the reduction is not below 50% of the benefit payable before the death of the survivor annuitant), or (2) The cessation or reduction of Social Security supplements or qualified disability payments (as defined in Code Section 401(a)(11)) Limitation Years beginning before July 1, For Limitation Years beginning before July 1, 2007, the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant s form of benefit computed using whichever of the following produces the greater annual amount: (a) (b) the interest rate and the mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form; and a 5 percent interest rate assumption and the "applicable mortality table" defined in the Plan for that annuity starting date Limitation Years beginning on or after July 1, For Limitation Years beginning on or after July 1, 2007, the actuarially equivalent straight life annuity is equal to the greater of: (a) The annual amount of the straight life annuity (if any) payable to the Participant under the Plan commencing at the same annuity starting date as the Participant s form of benefit; and Page 3 of 8

52 (b) The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant s form of benefit, computed using a 5 percent interest rate assumption and the applicable mortality table defined in the Plan for that annuity starting date. 3.3 Benefit Forms Subject to the Present Value Rules of Code Section 417(e)(3) Form of benefit. The straight life annuity that is actuarially equivalent to the Participant s form of benefit shall be determined as indicated under this Section 3.3 if the form of the Participant s benefit is other than a benefit form described in Section Annuity Starting Date in small plans for Plan Years Beginning in 2009 and later. Notwithstanding anything in this Amendment to the contrary, if the annuity starting date of the Participant s form of benefit is in a Plan Year beginning in or after 2009, and if the Plan is maintained by an eligible employer as defined in Code Section 408(p)(2)(C)(i), the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant s form of benefit, computed using whichever of the following produces the greater annual amount: (a) (b) The interest rate and the mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form; and A 5.5 percent interest rate assumption and the applicable mortality table described in Article XIII Annuity Starting Date in Plan Years Beginning After Except as provided in Section 3.3.2, if the annuity starting date of the Participant s form of benefit is in a Plan Year beginning after December 31, 2005, the actuarially equivalent straight life annuity is equal to the greatest of: (a) (b) (c) The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant s form of benefit, computed using the interest rate and the mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form; The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant s form of benefit, computed using a 5.5 percent interest rate assumption and the applicable mortality table for the distribution under Regulations Section 1.417(e)-1(d)(2) (determined in accordance with Article XIII for Plan Years after the effective date specified below); and The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant s form of benefit, computed using the applicable interest rate for the distribution under Regulations Section 1.417(e)-1(d)(3) (determined in accordance with Article XIII for Plan Years after the effective date of that Article) and the applicable mortality table for the distribution under Regulations Section 1.417(e)-1(d)(2) (determined in accordance with Article XIII for Plan Years after the effective date specified below), divided by The effective date of the applicable mortality table above is for years beginning after December 31, 2007, unless a later date is elected in Amendment Section 2.2. Page 4 of 8

53 3.3.4 Annuity Starting Date in Plan Years Beginning in 2004 or If the annuity starting date of the Participant s form of benefit is in a Plan Year beginning in 2004 or 2005, the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant s form of benefit, computed using whichever of the following produces the greater annual amount: (a) (b) The interest rate and the mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form; and A 5.5 percent interest rate assumption and the applicable mortality table for the distribution under Regulations Section 1.417(e)-1(d)(2). ARTICLE IV DIRECT ROLLOVER OF NON-SPOUSAL DISTRIBUTION 4.1 Non-spouse beneficiary rollover right. For distributions after December 31, 2009, and unless otherwise elected in Amendment Section 2.3, for distributions after December 31, 2006, a nonspouse beneficiary who is a designated beneficiary under Code Section 401(a)(9)(E) and the Regulations thereunder, by a direct trustee-to-trustee transfer ( direct rollover ), may roll over all or any portion of his or her distribution to an Individual Retirement Account (IRA) the beneficiary establishes for purposes of receiving the distribution. In order to be able to roll over the distribution, the distribution otherwise must satisfy the definition of an "eligible rollover distribution" under Code Section 401(a)(31). 4.2 Certain requirements not applicable. Although a non-spouse beneficiary may roll over directly a distribution as provided in Section 4.1 of this Amendment, the distribution, if made prior to January 1, 2010, is not subject to the direct rollover requirements of Code Section 401(a)(31) (including Code Section 401(a)(31)(B)), the notice requirements of Code Section 402(f) or the mandatory withholding requirements of Code Section 3405(c). If a non-spouse beneficiary receives a distribution from the Plan, the distribution is not eligible for a 60-day (non-direct) rollover. 4.3 Trust beneficiary. If the Participant s named beneficiary is a trust, the Plan may make a direct rollover to an IRA on behalf of the trust, provided the trust satisfies the requirements to be a designated beneficiary within the meaning of Code Section 401(a)(9)(E). 4.4 Required minimum distributions not eligible for rollover. A non-spouse beneficiary may not roll over an amount that is a required minimum distribution, as determined under applicable Regulations and other Internal Revenue Service guidance. If the Participant dies before his or her required beginning date and the non-spouse beneficiary rolls over to an IRA the maximum amount eligible for rollover, the beneficiary may elect to use either the 5-year rule or the life expectancy rule, pursuant to Regulations Section 1.401(a)(9)-3, A-4(c), in determining the required minimum distributions from the IRA that receives the non-spouse beneficiary s distribution. ARTICLE V ROLLOVER OF AFTER-TAX AMOUNTS 5.1 Direct rollover to qualified plan/403(b) plan. For taxable years beginning after December 31, 2006, a Participant may elect to transfer employee after-tax contributions by means of a direct rollover to a qualified plan or to a 403(b) plan that agrees to account separately for amounts so Page 5 of 8

54 transferred (including interest thereon), including accounting separately for the portion of such distribution which is includible in gross income and the portion of such distribution which is not includible in gross income. ARTICLE VI PARTICIPANT DISTRIBUTION NOTIFICATION day notification period. For any distribution notice issued in Plan Years beginning after December 31, 2006, any reference to the 90-day maximum notice period requirements of Code Sections 402(f) (the rollover notice) is changed to 180 days. 6.2 [Reserved]. 6.3 [Reserved]. ARTICLE VII QUALIFIED DOMESTIC RELATIONS ORDERS 7.1 Permissible QDROs. Effective on or after April 6, 2007, to the extent provided for under applicable state law for a governmental plan, a domestic relations order that otherwise satisfies the requirements for a qualified domestic relations order (QDRO) will not fail to be a QDRO: (i) solely because the order is issued after, or revises, another domestic relations order or QDRO; or (ii) solely because of the time at which the order is issued, including issuance after the annuity starting date or after the Participant s death. 7.2 Other QDRO requirements apply. A domestic relations order described in Section 7.1 is subject to the same requirements and protections that apply to QDROs. ARTICLE VIII [deleted not applicable to Governmental Plans] ARTICLE IX DIRECT ROLLOVER TO ROTH IRA 9.1 Roth IRA rollover. For distributions made after December 31, 2007, a Participant or beneficiary may elect to roll over directly an eligible rollover distribution to a Roth IRA described in Code Section 408A(b). For this purpose, the term eligible rollover distribution includes a rollover distribution described in Article V, if applicable. ARTICLE X [Deleted Not Applicable to Governmental Plans] ARTICLE XI [Deleted Not Applicable to Governmental Plans] ARTICLE XII HEART ACT PROVISIONS 12.1 Death benefits. In the case of a death occurring on or after January 1, 2007, if a Participant dies while performing qualified military service (as defined in Code 414(u)), the Participant s Beneficiary is entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the Participant had resumed Page 6 of 8

55 employment and then terminated employment on account of death. Moreover, the Plan will credit the Participant s qualified military service as service for vesting purposes, as though the Participant had resumed employment under USERRA immediately prior to the Participant s death Benefit accrual. If, pursuant to Amendment Section 2.6, the Employer elects to apply this Section 12.2, then for benefit accrual purposes, the Plan treats an individual who, on or after January 1, 2007, dies or becomes disabled (as defined under the terms of the Plan) while performing qualified military service with respect to the Employer as if the individual had resumed employment in accordance with the individual s reemployment rights under USERRA, on the day preceding death or disability (as the case may be) and terminated employment on the actual date of death or disability. (a) Determination of benefits. The Plan will determine the amount of Employee contributions of an individual treated as reemployed under this Section 12.2 for purposes of applying Code Section 414(u)(8)(C) on the basis of the individual s average actual employee contributions for the lesser of: (i) the 12-month period of service with the Employer immediately prior to qualified military service; or (ii) if service with the Employer is less than such 12-month period, the actual length of continuous service with the Employer Differential wage payments. For years beginning after December 31, 2008: (i) an individual receiving a differential wage payment, as defined by Code 3401(h)(2), is treated as an employee of the employer making the payment; (ii) the differential wage payment is treated as compensation for purposes of Code 415(c)(3) and Treasury Reg (c)-2 (e.g., for purposes of Code 415, top-heavy provisions of Code 416, determination of highly compensated employees under Code 414(q), and applying the gateway requirement under the Code 401(a)(4) regulations); and (iii) the Plan is not treated as failing to meet the requirements of any provision described in Code 414(u)(1)(C) (or corresponding Plan provisions) by reason of any contribution or benefit which is based on the differential wage payment. Differential wage payments (as described herein) will also be considered compensation for all Plan purposes unless otherwise elected at Amendment Section 2.1. Section 12.3(iii) above applies only if all employees of the Employer performing service in the uniformed services described in Code 3401(h)(2)(A) are entitled to receive differential wage payments (as defined in Code 3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the Employer, to make contributions or receive benefits based on the payments on reasonably equivalent terms (taking into account Code 410(b)(3), (4), and (5)). ARTICLE XIII CHANGE IN APPLICABLE INTEREST RATE AND APPLICABLE MORTALITY ASSUMPTION 13.1 Effective date. Except as provided by the Pension Benefit Guaranty Corporation (PBGC) and IRS, the limitations of this Article shall first apply in determining the amount payable to a Participant having an annuity starting date in a Plan Year beginning on or after January 1, Applicable interest rate. For purposes of the Plan's provisions relating to the calculation of the present value of a benefit payment that is subject to Code Section 417(e), as well as any other Plan provision referring directly or indirectly to the "applicable interest rate" or "applicable mortality table" used for purposes of Code Section 417(e), any provision prescribing the use of the annual rate of interest on 30-year U.S. Treasury securities shall be implemented by instead using the rate of interest determined by applicable interest rate described by Code Section 417(e) after its amendment by PPA. Specifically, the applicable interest rate shall be the adjusted first, Page 7 of 8

56 second, and third segment rates applied under the rules similar to the rules of Code Section 430(h)(2)(C) for the calendar month (lookback month) before the first day of the Plan Year in which the annuity starting date occurs (stability period), or such other lookback month and stability period as elected in Amendment Section 2.6. For this purpose, the first, second, and third segment rates are the first, second, and third segment rates which would be determined under Code Section 430(h)(2)(C) if: (a) (b) (c) Code Section 430(h)(2)(D) were applied by substituting the average yields for the month described in the preceding paragraph for the average yields for the 24-month period described in such section, and Code Section 430(h)(2)(G)(i)(II) were applied by substituting "Section 417(e)(3)(A)(ii)(II) for "Section 412(b)(5)(B)(ii)(II)," and The applicable percentage under Code Section 430(h)(2)(G) is treated as being 20% in 2008, 40% in 2009, 60% in 2010, and 80% in Applicable mortality assumption. For purposes of the Plan's provisions relating to the calculation of the present value of a benefit payment that is subject to Code Section 417(e), as well as any other Plan provision referring directly or indirectly to the "applicable mortality table," any provision directly or indirectly prescribing the use of the mortality table described in Revenue Ruling shall be amended to prescribe the use of the applicable annual mortality table within the meaning of Code Section 417(e)(3)(B), as initially described in Revenue Ruling * * * * * * This amendment has been executed this day of,. Name of Plan: Alachua County Library District Pension Plan Name of Employer: Alachua County Library District By: Page 8 of 8

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