§ 54-94. Miscellaneous provisions.

(a)

Interest of members in system. At no time prior to the satisfaction of all liabilities under the system with respect to members and retirees and their spouses or beneficiaries shall any part of the corpus or income of the fund be used for or diverted to any purpose other than for their exclusive benefit.

(b)

No reduction of accrued benefits. No amendment or ordinance shall be adopted by the city council which shall have the effect of reducing the then-vested accrued benefits of members or a member's beneficiaries.

(c)

Qualification of system. It is intended that the system will constitute a qualified public pension plan under applicable provisions of the Code for a qualified plan under Code Section 401(a) and a governmental plan under Code Section 414(d), presently in effect or hereafter amended. Any amendment of this article or modification of the system may be made retroactive, if necessary or appropriate to qualify or maintain the system as a plan meeting the requirements of applicable provisions of the Code, presently in effect or hereafter amended, or any other applicable provisions of the federal tax laws, presently in effect or hereafter amended or adopted, and regulations promulgated or issued thereunder.

(d)

Use of forfeitures. Forfeitures arising from termination of service of members shall be used only to reduce future city contributions.

(e)

Prohibited transactions. Effective as of January 1, 1989, a board may not engage in a transaction prohibited by Internal Revenue Code Section 503(b).

(f)

USERRA. Effective December 12, 1994, notwithstanding any other provision of this system, contributions, benefits and service credit with respect to qualified military service are governed by Internal Revenue Code Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended. To the extent that the definition of "credited service" sets forth contribution requirements that are more favorable to the member than the minimum compliance requirements, the more favorable provisions shall apply.

(g)

Vesting.

(1)

Member will be 100 percent vested in all benefits upon attainment of the plan's age and service requirements for the plan's normal retirement benefit; and

(2)

A member will be 100 percent vested in all accrued benefits, to the extent funded, if the plan is terminated or experiences a complete discontinuance of employer contributions.

(h)

Electronic forms. In those circumstances where a written election or consent is not required by the plan or the Internal Revenue Code, an oral, electronic, or telephonic form in lieu of or in addition to a written form may be prescribed by the board. However, where applicable, the board shall comply with Treasury Regulations Section 1.401(a)-21.

(Ord. No. 2007-29, § 1, 9-18-07; Ord. No. 2010-26, § 1, 9-28-10; Ord. No. 2012-32, § 1, 12-11-2012)