GENERAL EMPLOYEE S RETIREMENT PLAN SUMMARY PLAN DESCRIPTION

Transcription

1 CITY OF DELRAY BEACH GENERAL EMPLOYEE S RETIREMENT PLAN SUMMARY PLAN DESCRIPTION EFFECTIVE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2014 Prepared July 2014

2 1 INTRODUCTION TO YOUR PLAN The City of Delray Beach has a defined benefit pension plan providing eligible employees with retirement and related benefits. This Summary Plan Description is a brief narrative of the official Plan (the Plan) and your rights, obligations and benefits under it. This Summary Plan Description is not meant to interpret, extend or change the provisions of the Plan in any way. A copy of the Plan is on file at your Employer s office and may be read by you, your beneficiaries, or your legal representatives. If you have any questions regarding either the Plan or this Summary Plan Description, you should ask the Plan s Administrator (561) In the event of any discrepancy between this Summary Plan Description and the actual provisions of the Plan, the Plan shall govern.

3 2 GENERAL INFORMATION ABOUT YOUR PLAN Name of Plan Employer City of Delray Beach General Employees Retirement Plan City of Delray Beach Plan Administrator Karen Schell, Pension Administrator City of Delray Beach Finance Department 100 Northwest 1 st Avenue Delray Beach, Florida Telephone: (561) Fax: (561) Designated Agent for Service of Legal Process Secretary General Employees Pension Plan Karen Schell City of Delray Beach Finance Department 100 Northwest 1 st Avenue Delray Beach, Florida Telephone: (561) Fax: (561) Retirement Committee The Retirement Committee consists of a Chairperson and four (4) other members all selected by the City Commission. It is responsible for the overall administration of the Plan. It has discretionary authority to construe the terms of the Plan and make determinations on questions which may affect your eligibility for benefits. The Retirement Committee may also retain the services of attorneys, accountants, actuaries, investment advisors and other professionals. The current Retirement Committee consists of: Vincent Dole Delray Beach Resident Francine Ramaglia Assistant City Manager Jim Smith Delray Beach Resident Stephen Swank Morrison & Swank, Accountants

4 3 Plan Year The Plan Year is each 12 month period beginning on October 1 st and ending on September 30 th. The Plan s fiscal records are maintained on this basis. Relevant Provisions of Local and State Laws The Plan is set forth in Chapter 35 of the Code of Ordinances of the City of Delray Beach (Plan Document). The most recent amendment to the Plan that is reflected in this Summary Plan Description is Ordinance No (Allows retirement committee to contract directly with actuary). The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes. Relevant Provisions of Collective Bargaining Agreements Certain employees covered by the Plan are members of the IAFF (Lifeguards) and SEIU (blue collar) collective bargaining units. The current (blue collar) collective bargaining agreement between the unit and the Employer covers the period from October 1, 2013 through September 30, Article Thirteen of the agreement refers to pension matters. Custodian The custodian of the Plan is responsible for the safe-keeping of securities owned by the Pension Fund. At the direction of the retirement Committee, the custodian also pays benefits to eligible retirees or beneficiaries, receives employee and employer deposits and pays expenses incurred by the Plan. The current custodian is: Actuary Salem Trust Company 455 Fairway Drive, Suite 103 Deerfield Beach, Florida The actuary analyzes plan experience each year, prepares retirement calculations and retirement options in accordance with the plan document, prepares an actuarial evaluation and costing of various recommendations at the request of the City, and prepares an annual actuarial

5 4 report which will detail the overall condition of the plan. This actuarial study is forwarded each year to the State of Florida Department of Insurance. The plan s actuary is currently: Gabriel, Roeder, Smith and Company (GRS) One East Broward Boulevard, Suite 505 Ft. Lauderdale, Florida Investment Manager(s) The investment manager is responsible for selecting the securities to be bought and sold by the Pension Fund, in accordance with guidelines established by the Retirement Committee. The current investment managers are: (Large Cap Value Equity Manager) The Boston Company Boston, Massachusetts (Intermediate Fixed Income) Denver Investments Denver, Colorado (Fixed Income Index Manager) State Street Global Advisors Boston, Massachusetts (Large Growth Equity) Dana Investment Advisors Brookfield, Wisconsin (International Equity) Harding, Loevner Funds, Inc. Chicago, Illinois (Mid-Cap Equity Index Fund Manager) RhumbLine Advisers Boston, Massachusetts (Large-Cap Value Equity Index Fund Manager) (Large -Cap Growth Index Fund Manager) RhumbLine Advisers RhumbLine Advisers Boston, Massachusetts Boston, Massachusetts (Convertible Bonds) Allianz GI Member You are a Member of the Plan if you fulfill the prescribed eligibility requirements (see Eligibility and Credited Service section). Beneficiary Your Beneficiary is each person designated by you to receive any payments that may become payable by the Plan upon your death. You should designate a Beneficiary when you become a Member of the Plan. Prior to retirement you may change your designation at any time upon written notification to the Plan Secretary (Plan Administration). After retirement you may change your Beneficiary but with such change subject to approval by the Retirement Committee.

6 5 Further, you will be responsible for paying any and all fees associated with the recalculation of your benefit due to your change of Beneficiary. CONTRIBUTIONS TO THE PLAN Benefits of the Plan are financed by contributions that are paid into the pension fund and by investment earning generated by investments of the pension fund. Contributions to the fund are made by: The Employee Effective October 6, 2010, all Plan participants whose positions are not covered by the SEIU Collective Bargaining Agreement shall contribute 3.05% of basic compensation to the Plan. Effective October 6, 2010, all Plan participants whose positions are covered by the SEIU Collective Bargaining Agreement shall contribute 3.05% of basic compensation to the Plan Those Plan participants who elect the optional enhanced multiplier (described in the Retirement Benefits section) shall contribute an additional 3.45% of basic compensation to the Plan, for a total of 6.50% of basic compensation. Your Employer Your Employer must contribute an amount determined by the Plan s actuary to be sufficient to systematically fund the benefits under the Plan. The Employer s contribution will vary depending on the experience of the Plan. Currently, Employer contributions are approximately 13.12% of covered payroll.

7 6 ELIGIBILITY AND CREDITED SERVICE Eligibility You are eligible to be a Member of the Plan if you are a full-time general employee of the Employer and you have completed one (1) year of Credited Service. Effective January 7, 2003, the Plan includes the City Manager (and assistants) upon their written election to participate in the Plan; the City Attorney (and assistants) upon their written election to participate in the Plan, and department heads who previously elected not to participate in the Plan, upon their written election to participate in the Plan. An employee s written election to participate in the Plan pursuant to this paragraph must be submitted to the Plan Secretary within ninety days following their date of employment in a position identified in this paragraph. Such written election shall be irrevocable. Any such employee who does not submit a timely written election to participate in the Plan pursuant to this paragraph shall not participate in the Plan for as long as he or she is employed by the City in a position identified in this paragraph. The following will not become Members of the Plan: Credited Service 1. City Commissioners. 2. Any person not classified by the City as a regular full-time employee. 3. Firefighters and police officers who are participants in retirement plans as provided for in F.S. Chapters 175 and 185 or other applicable City ordinances. Credited Service is used to compute the amount of pension benefit when you retire, to determine whether you are eligible for certain benefits, and to determine whether you are vested. Your Credited Service is equal to your length of continuous uninterrupted employment with the Employer from your last date of hire until your date of termination of employment, up to a maximum of 30 years. Vacations and other paid leaves of absence are included. Unpaid leaves of absence in excess of thirty days a calendar year are not included.

8 7 Break in Service If you terminate employment and later return to work for the Employer, you will be considered a new employee with no Credited Service for all purposes unless you elect to pay back to the Plan within 90 days of your reemployment a lump sum amount equal to any previous distributions received from the Plan, plus interest. The amount of interest required will be calculated based upon a 7% per annum rate for the period from date of original distribution to the date of repayment. If you elect to repay this amount, you will be granted the Credited Service earned prior to your previous termination of service. Military Service Should you terminate employment or take a leave of absence from the Employer in order to enter the military, your period of military service will be included in your Credited Service if you return to work for the Employer within the time limits set by federal law (employees performing military service for 30 days or less must report for reemployment on the first regularly scheduled workday within 8 hours after returning home; those serving more than 30 but less than 180 days in the military must report within 14 days, and those serving more than 180 days must report within 90 days). You would be required to make a contribution to the Plan in an amount that you would have contributed had you not taken the leave of absence. Your active duty in the military prior to your date of hire by the Employer is not included in your Credited Service unless you elect to buyback your prior military service.

9 8 Prior Military Service or Government Employment Your full-time employment with the federal government, including military service, or any state, county or city government prior to your initial employment with the City of Delray Beach will be added to your years of Credited Service, provided that: 1. You provide proof of the prior government employment to the Plan Secretary. 2. You are not receiving or will not receive any other retirement benefit based on such prior government service. 3. You have at least five years of Credited Service based on City employment and have not entered the DROP. (Refer to later explanation of DROP.) 4. You contribute to the fund the full actuarial cost of all service credits purchased. 5. You complete your purchase before you retire or terminate your employment with the City. 6. The maximum credit you may purchase is three (3) years. You may choose any one or a combination of the following options below to pay for the additional service: 1. Cash lump sum payment. 2. Direct transfer or rollover of an eligible rollover distribution from a qualified plan. 3. Time payment plan. Under this option you may elect to pay any remaining balance due for the purchase of Credited Service through payroll deduction on a time payment plan over a period of not more than five years, as approved by the Plan Secretary. Interest on such payments shall be paid based on the assumed rate of return of the Plan, and the Credited Service shall not be credited until all installments are paid.

10 9 RETIREMENT DATES Retirement Retirement means either termination of City employment and immediate entitlement to receive normal, early or disability retirement income or entry into the Deferred Retirement Option Plan (DROP) with immediate entitlement to receive normal retirement income benefits. Normal Retirement Date Normal Retirement Date is the earliest date when unreduced retirement benefits may be paid to you. For participants hired on or after October 6, 2010 the Normal Retirement Date is the first day of the month coincident with or next following the earlier of the date when you reach age 65 and complete ten years of credited service. For participants employed on or before October 5, 2010 and not within 10 years of attaining age 60 or 30 years of credited service as of that date, Normal Retirement Date is the first day of the month coincident with or next following the earlier of the date when you 1) reach age 62 and complete 10 years of credited service; or 2) complete 30 years credited service (regardless of your age), whichever occurs first. For participants who retire or terminate employment with 5 or more years of credited service prior to October 6, 2010, and for participants who are employed on October 5, 2010 within 10 years of attaining age 60 or 30 years of credited service as of that date, Normal Retirement Date is the first day of the month coincident with or next following the date when you 1) attain age 60 and complete 10 years of credited service, or 2) complete 30 years of credited service (regardless of your age), whichever occurs first. Early Retirement Date Your Early Retirement Date is the first day of the month coincident with or next following the earlier of the date when you 1) reach age 55 and complete 15 years of Credited Service; or 2) complete 20 years of Credited Service (regardless of your age), whichever occurs first. You may retire at any time following this date with reduced benefits as described in the Retirement Benefits section.

11 10 Late Retirement Date You may continue to work past your Normal Retirement Date. The date you actually stop working will be your Late Retirement Date. Review the description of the Deferred Retirement Option Plan (DROP) that would restrict work to a maximum of five years past the Normal Retirement Date.

12 11 RETIREMENT BENEFITS Normal Retirement Benefit The monthly benefit that you will receive if you retire on your Normal Retirement Date is your Normal Retirement Benefit. The amount of your Normal Retirement Benefit is based on the following factors: 1. Your Basic Compensation This is the amount of your base compensation excluding overtime pay, commissions, bonuses, expense allowances and all other extraordinary compensation. 2. Your Final Monthly Compensation This is the average of your Basic Compensation during the consecutive three year period within your last ten years of employment which produces the largest average. 3. Your years of Credited service at your Normal Retirement Date, up to a maximum of 30 years. The calculation of your Normal Retirement Benefit is as follows: 2.5% of your Final Monthly Compensation multiplied by your years of Credited Service, up to a maximum of 30 years. As an example, if your Final Monthly Compensation at your Normal Retirement Date is $2,500 and your Credited Service is 22 years, then the calculation is as follows: 2.5% x $2,500 x 22 years = $1,375 which would be your Normal Retirement Benefit payable each month. If you have ten or more years of Credited Service, you are entitled to a minimum aggregate retirement benefit of $500 a month. The retirement benefit is paid to you for the rest of your life in accordance with the Normal Form of Benefit Payment as described later (however, see the sections on Survivor Benefits After Retirement and Forms of Benefit Payments). Your benefits from this Plan are paid in addition to any benefits you may receive from Social Security.

13 12 Optional Enhanced Multiplier If you are a participant employed after April 5, 2005 (or after September 17, 2008 if in the SEIU) whose positions are not covered by the IAFF Lifeguard Collective Bargaining Agreement and you have not entered the DROP, you are eligible to elect an enhanced benefit multiplier by contributing an additional 3.45% of basic compensation to the Plan, for a total of 6.50% of basic compensation. The enhanced multiplier applies to future periods of credited service only (see below for past service applicability). If elected, the calculation of your Normal Retirement Benefit is as follows: 3% of your Final Monthly Compensation multiplied by your years of Credited Service earned after the election date plus 2.5% of your Final Monthly Compensation multiplied by your years of Credited Service earned before the election date. Your total Credited Service is limited to 30 years. As an example, if your Final Monthly Compensation at your Normal Retirement Date is $2,500, your Credited Service earned after the election date is 7 years, and your Credited Service earned before the election date is 15 years, then the calculation is as follows: (3% x $2,500 x 7 years) + (2.5% x $2,500 x 15 years) = $1, which would be your Normal Retirement Benefit payable each month. If you elect the enhanced multiplier for future Credited Service, you may also elect to purchase the enhanced multiplier for some or all periods of Credited Service earned prior to the date of the election. You must pay to the Plan the full actuarial cost of the enhanced multiplier. This payment must be made in a cash lump sum payment or by a direct rollover of an eligible rollover distribution from a qualified plan. If the enhanced multiplier is purchased for Credited Service earned before the election date, the calculation of your Normal Retirement Benefit is as described above, except the 3% multiplier would also apply to the Credited Service purchased as detailed in this paragraph. The election to receive the enhanced multiplier is irrevocable and must be made in writing on a form provided by the City.

14 13 Accrued (Earned) Benefit The portion of your Normal Retirement Benefit that you have earned at any point in time is your Accrued Benefit. Your Accrued Benefit is computed in the same way as the Normal Retirement Benefit, except you use your current Final Monthly Compensation and Credited Service in the calculation. The Accrued Benefit is a monthly amount which is payable starting on your Normal Retirement Date. Early Retirement Benefit If you decide to retire early, you may receive your Early Retirement Benefit on a deferred basis or immediately (if you meet the requirements for Early Retirement eligibility). 1. A deferred Early Retirement Benefit is a benefit that begins on your Normal Retirement Date and is paid for the rest of your life. The benefit is equal to your Accrued Benefit. 2. An immediate Early Retirement Benefit is a benefit that begins on your Early Retirement Date and is paid for the rest of your life. The benefit is equal to your Accrued Benefit but is reduced for the number of months by which the starting date of the benefit precedes your otherwise Normal Retirement Date. The benefit is reduced to take into account your younger age and the earlier commencement of benefit payments. The following table shows how much your benefit will be reduced if payments begin before your Normal Retirement Date: Number of Years Early Percentage Reduction 1 5% 2 10% 3 15% 4 20% 5 25% 6 30% 7 35% 8 40% 9 45% 10 50%

15 14 Late Retirement Benefit The amount of your monthly Late Retirement Benefit is calculated and paid in the same way as the Normal Retirement Benefit. However, your Final Monthly Compensation and Credited Service, not to exceed 30 years, as of your actual retirement date are used in the calculation. Deferred Retirement Option Plan (DROP) If you are eligible for fully vested Normal Retirement, you may elect to enter the DROP. Election to enter the DROP is voluntary, but it is irrevocable once DROP payments begin. If you enter the DROP, you will cease to accrue a benefit in the Plan and you will no longer be eligible for disability or preretirement death benefits. Your Credited Service and Final Monthly Compensation as of the first date of participation in the DROP will be used to calculate your retirement benefit. If you enter the DROP, the monthly benefit that you would have received if you had retired on your election date will be paid into a DROP account. Currently, DROP accounts are administered by ICMA with you selecting how your account will be invested. You may participate in the DROP for a maximum of five years (60 months). At the end of five years you must terminate your employment with the City. Upon your retirement the balance in your DROP account will become payable. Currently, as DROP accounts are administered by the ICMA, distribution options would be pursuant to that Plan. Should you pass away during your participation in the DROP, your Beneficiary will receive your DROP account balance plus any other survivorship benefits that may be payable.

16 15 DISABILITY RETIREMENT If you become totally and permanently disabled as provided by the Plan, you may be eligible for a disability benefit. In the case of a disability incurred in the line of duty, you will be eligible for a benefit regardless of your length of service. In the case of a disability that is not incurred in the line of duty, you will only be eligible for a benefit if you have at least ten years of Credited Service. The amount of your benefit due to a line of duty disability is equal to 60% of your Final Monthly Compensation at the date of your disability, less any primary Social Security benefits you may receive, and less Workers Compensation benefits to the extent such benefits, when added to your disability pension benefit, exceed your Final Monthly Compensation at the date of disability. This disability benefit is payable until 1) you recover from the disability, 2) you reach age 65 if you become disabled at age 60 or less (at which time you will begin receiving a normal retirement benefit), 3) five years after the commencement of your benefits if you became disabled after age 60 (at which time you will begin receiving a normal retirement benefit), or 4) your death. The amount of your benefit due to a non-line of duty disability is equal to 2% of your Final Monthly Compensation at date of disability, multiplied by your Credited Service, subject to a maximum monthly retirement income equal to 50% of your Final Monthly Compensation, less any primary Social Security benefits you may receive, and less Workers Compensation benefits to the extent such benefits, when added to your disability pension benefit, exceed your final monthly compensation at the date of disability. This disability benefit is payable until 1) you recover from the disability, 2) you reach age 65 if you become disabled at age 60 or less (at which time you will begin receiving a normal retirement benefit), 3) five years after the commencement of your benefits if you became disabled after age 60 (at which time you will begin receiving a normal retirement benefit), or 4) your death. Please note that if you are receiving a disability benefit, the Retirement Committee has the right to annually review your condition to determine if you are still disabled and thus entitled to continue to receive such disability benefit.

17 16 SURVIVOR BENEFITS Before Retirement Service Connected Death Benefit: If you die in the line of duty, the following is payable: 1. To your spouse, or other designated Beneficiary, a lump-sum payment of $10,000; plus 2. To your spouse, until the earlier of his or her death or remarriage, a monthly income equal to 60% of your Final Monthly Compensation at the date of death; or to a designated Beneficiary other than your spouse, until death, a monthly income equal to the actuarial equivalent of a lifetime benefit payable to you in the amount of 60% of your Final Monthly Compensation at the date of death; plus 3. For each child until he or she attains the age of 18, and for each child from age 18 until age 22 who is a full-time student in an accredited school, there shall be payable an additional monthly income equal to 7 ½% of your Final Monthly Compensation. The maximum monthly income for the spouse and children combined shall not exceed 75% of your Final Monthly Compensation at the date of death. The nonstudent child s monthly income shall terminate on the first day of the month next preceding the earlier of the child s death, marriage, or the attainment of age 18; the monthly income of a child who is a fulltime student shall terminate on the first day of the month next preceding the earlier of the child s death, marriage, or the attainment of age 22. Legally adopted children shall be eligible for a monthly income in the same manner as natural children. Non-Service Connected Death Benefit: If you die not in the line of duty, the following is payable: 1. If you have at least one but less than five years of Credited Service, a lump-sum payment of $5,000, payable to your spouse, or other designated Beneficiary. 2. If you have five or more years of Credited Service, the following is payable: a. To your spouse or other designated Beneficiary, a lump-sum payment of $10,000; plus b. To your spouse, until the earlier of his or her death or remarriage, a monthly income equal to 65% of your normal retirement income which has accrued to the date of death; subject to a minimum of 20% of your Final Monthly Compensation at the date of death; or to a designated Beneficiary other than your spouse, until death, a monthly income equal to the actuarial equivalent of a lifetime benefit payable to you in the

18 17 amount of 65% of your normal retirement income which has accrued to the date of death; plus c. For each child until he or she attains the age of 18, and for each child from age 18 until age 22 who is a full-time student in an accredited school, there shall be payable an additional monthly income equal to 7 ½% of your Final Monthly Compensation. The maximum monthly income for the spouse and children combined shall not exceed 50% of your Final Monthly Compensation at the date of death. The nonstudent child s monthly income shall terminate on the first day of the month next preceding the earlier of the child s death, marriage, or the attainment of age 18; the monthly income of a child who is a full-time student shall terminate on the first day of the month next preceding the earlier of the child s death, marriage, or the attainment of age 22. Legally adopted children shall be eligible for a monthly income in the same manner as natural children. In no event may the total of benefit payments to you and your Beneficiary be less than your own accumulated contributions. After Retirement If you were receiving a form of retirement payment which provided for a survivor s benefit to be paid after your death, your Beneficiary will receive payments following your death. A later page describes the various forms of retirement payments.

19 18 VESTED RETIREMENT BENEFIT If you terminate employment, other than by reason of retirement, disability or death, you may be entitled to a deferred Vested Retirement Benefit. This benefit is equal to your Accrued Benefit on your termination date multiplied by your vested interest. The following chart shows your vested interest in your Accrued Benefit. Vesting Schedule Completed Years Vested Of Credited Service Interest Less than 5 0% 5 50% 6 60% 7 70% 8 80% 9 90% 10 or more 100% The vested benefit is payable when you reach your Normal Retirement Date. REFUND OF CONTRIBUTIONS If you terminate employment you may receive a refund of your contributions with interest. If you have 10 or more years of Credited Service when you terminate, a non-compounded simple interest rate of five percent (5%) will be applied to the principal balance of your accumulated contributions as of December 31 of that year. If you have less than 10 years, the interest rate will be three percent (3%). The taxable portion of any refund you receive is subject to an automatic 20% withholding for federal income tax purposes. This tax can be deferred, however, if you roll the taxable portion over to an Individual Retirement Account (IRA) or another qualified plan. This rollover will result in no tax being due until you begin withdrawing funds from the IRA or other qualified plan. The rollover of the distribution, however, MUST be made directly by the Plan to your chosen IRA or other qualified plan.

20 19 FORMS OF BENEFIT PAYMENTS Normal Form of Benefit Payment Unless you elect otherwise at or before retirement, your pension is payable as a Single Life Annuity. This is a series of monthly payments payable for your life; upon your death, all benefits will cease. Election of Optional Forms of Benefit Payments You have the right at any time on or before your actual retirement date to elect not to have your retirement benefit paid in the Normal Form. Your benefit would then be paid in the form which you choose. You may choose among the options described below and revoke any such elections and make a new election at any time before your actual retirement date. You must make such an election by written request to the Plan Secretary. Such an election shall be subject to the approval of the Retirement Committee. This election also applies to terminated Participants who are eligible for payment of deferred Vested Retirement Benefits. The options available are as follows: 1. Option 1 Ten Year Certain Life Thereafter Annuity You may elect to receive a modified retirement benefit with 120 monthly payments guaranteed. If you die before receiving 120 payments, the payments will continue to your designated beneficiary until a total of 120 payments have been made. If you live longer than ten years, payments are continued for the rest of your life, ceasing upon your death. 2. Option 2 Joint and Survivor Annuity You may elect to receive a modified monthly retirement benefit during your lifetime and, following your death, a designated percentage of the monthly benefit would be paid for the remaining life of your Beneficiary. You may elect a continuing percentage of 100%, 75%, 66 2/3% or 50% of your monthly benefit to be paid to your Beneficiary upon your death. Election of this option is null and void if your Beneficiary dies before you, unless you designate another

21 20 Beneficiary by requesting so in writing to the Plan Secretary and by paying to the Plan the full cost of determining the adjusted monthly benefit based on your new Beneficiary. 3. Option 3 Other You may elect another optional form which is subject to the approval of the Retirement Committee and which is actuarially equivalent to the Normal Form of Benefit. If you have ten or more years of Credited Service, you or your designated Beneficiary are entitled to a minimum aggregate retirement benefit of $500 a month. In no event may the total of benefit payments to you and your Beneficiary be less than your own accumulated contributions.

22 21 AMENDMENT OR TERMINATION OF THE PLAN The Plan may be amended or terminated at any time by the Employer. If the Plan were terminated, you would immediately become fully vested in the benefit you had earned so far. All of the assets of the Plan would be allocated to the Members according to certain classes of priority. Only after all accrued benefits have been paid and any other liabilities have been satisfied could any remaining money be returned to the Employer. IMPORTANT NOTICE There are certain circumstances which may result in the disqualification, ineligibility, denial, loss, forfeiture, suspension or deferral of your benefits in this Plan. The following is a list of these circumstances: 1. If you terminate employment before reaching your Normal or Early Retirement Date and you do not have enough Credited Service to have earned a vested interest, no benefits will be payable except for a return of your own contributions with interest as described in the Section entitled Refund of Contributions. 2. No credit is allowed either for benefit accrual or vesting purposes for any period during which you are not classified as a full-time employee. 3. Your retirement benefit will not be payable until actual retirement date, even if you continue to work beyond the Normal Retirement Date. 4. In the event that this Plan terminates and the available Plan assets are less than the value of all Accrued Benefits, then your Accrued Benefit may be reduced. 5. Your Accrued Benefit may be forfeited if you are convicted of certain felonies as provided by State law (Chapter F.S.). 6. Payment of your benefits may be subject to an income deduction order made pursuant to a state domestic relations law.

23 22 YOUR RESPONSIBILITIES 1. Retain this Summary Plan Description with your other important papers for later reference or for replacement by updated versions and supplemental notices, if any. 2. Upon hire, complete and sign a Pension Designation of Beneficiary Form. 3. Keep your Pension Designation of Beneficiary Form updated to express your wishes. 4. If you terminate employment, check to see if you are entitled to a Vested Retirement Benefit and the date payable. 5. If you should terminate employment with rights to a deferred Vested Retirement Benefit, then, shortly before the date on which it is to begin, you should contact and notify the Plan Secretary to begin such payments. 6. Upon your retirement under Early or Normal Retirement, complete the form necessary to indicate which Optional Form of Benefit you desire.

24 23 CLAIMS AND PROCEDURES Claim Procedures Claims for benefits under the Plan must be filed in writing with the Plan Secretary. If you are eligible for any benefits from this Plan, you will be provided with a notification form showing the amount of your benefit and options, if any, and the earliest date on which such benefit is payable. Your request for Plan benefits shall be considered a claim for Plan benefits, and it will be subject to a full and fair review. If your claim is wholly or partially denied, the Retirement Committee shall furnish you with a written notice of this denial. This written notice must be provided to you within a reasonable period of time (120 days as the Retirement Committee meets quarterly) after the receipt of your claim by the Retirement Committee. The written notice must contain the following information: 1. The specific reason or reasons for the denial; 2. Specific reference to those Plan provisions on which the denial is based; 3. A description of any additional information or material necessary to correct your claim and an explanation of why such material or information is necessary; and 4. Appropriate information as to the steps to be taken if you or your Beneficiary wishes to submit your claim for review. If notice of the denial of a claim is not furnished to you in accordance with the above within a reasonable period of time, your claim shall be deemed denied. You will then be permitted to proceed to the review stage described in the following paragraphs. If your claim has been denied, and you wish to submit your claim for review, you must follow the Claims Review Procedure.

25 24 Claims Review Procedure 1. Upon the denial of your claim for benefits, you may file your claim for review in writing with the Retirement Committee. 2. You must file the claim for review no later than 30 days after you have received written notification of the denial of your claim for benefits. 3. You may review all pertinent documents relating to the denial of your claim and submit any issues and comments in writing to the Retirement Committee. 4. Your claim for review must be given a full and fair review. If your claim is denied, the Retirement Committee must provide you with written notice of this denial within 60 days after the Retirement Committee s receipt of your written claim for review. There may be times when this 60 day period may be extended. This extension may only be made, however, where there are special circumstances which are communicated to you in writing within the 60 day period. If there is an extension, a decision shall be made as soon as possible, but not later than 105 days after receipt by the Retirement Committee of your claim for review. 5. The Retirement Committee s decision on your claim for review shall be communicated to you in writing and shall include specific references to the pertinent Plan provisions on which the decision was based. 6. If the Retirement Committee s decision on review is not furnished to you within the time limitations described above, your claim shall be deemed denied on review.

26 25 PERTINENT ACTUARIAL INFORMATION 10/01/ /01/2012 Number of Members of the Plan Active Employees Those Receiving or Due to Receive Benefits Annual Payroll of Active Members Annual Rate of Benefits in Pay Status Actuarial Accrued Liability Net Assets Available for Benefits (Actuarial Value) Unfunded (Overfunded) Actuarial Accrued Liability Required Contribution to be made to the Plan Over and Above Contributions by Members of the Plan Required Contributions as % of Payroll of Active Members Required Contribution to be Paid During Year Ending $ 16,527,919 5,618, ,950,532 99,910,051 4,040,481 2,168, % 09/30/ $ 16,937,526 5,180,711 98,323,171 94,643,819 3,679,352 2,093, % 09/30/2014 Note: Market Value Basis Rate of Return as of: 09/30/ %

27 26 PENSION FUND INCOME AND DISBURSEMENTS Year Ending 09/30/2013 Year Ending 09/30/2012 Market Value at Beginning of Period $ 92,675,849 $ 80,267,519 Income Member Contributions Employer Contributions Other Contributions Investment Earnings Dividends & Interest Realized & Unrealized Gain (Loss) Total Investment Earnings Other Income Total Income Disbursements Monthly Benefit Payments Lump Sum Distributions Refunds of Contributions Investment Related Expenses Other Administrative Expenses Insurance Premiums Other Expenses Total Disbursements 815,493 2,093, ,202,865 10,895,724 12,098, ,007,851 4,825, , ,685 68, ,199, ,748 2,128, ,006 13,733,610 14,354, ,235,030 4,408, , , , ,826,700 Net Increase During Period 9,808,340 12,408,330 Market Value at End of Period 102,484,189 92,675,849