§ 54-173. Military service prior to employment.

A participant may voluntarily purchase credited service under the plan for periods of active duty in the U.S. Armed Forces prior to employment with the City of Port Orange, in accordance with this section.

(1)

The maximum amount of credited service that may be purchased pursuant to this section is four years.

(2)

Credited service purchased pursuant to this section shall be applicable to accrual of monthly benefits and eligibility for normal or early retirement only. Such credited service shall not count towards vesting under the plan.

(3)

The participant must provide proof of service in the U.S. Armed Forces in the form of an official Discharge Summary (Form DD214). A participant must not be eligible for a military pension based on any period of service for which creditable service is claimed pursuant to this section.

(4)

Credited service that may be purchased must relate to full-time active duty in the U.S. Armed Forces, and not reserve status.

(5)

The purchase of credited service pursuant to this section must be made within 90 days following the effective date of this section, or within six months of hire by the city, whichever is later. Additionally, the city may designate a window period during which participants may purchase credited service pursuant to this section.

(6)

The participant will be responsible for the entire purchase amount, and payment shall be due upon acceptance of the city's calculation of the purchase amount. The participant may purchase less than the full amount that the participant is entitled to, in complete years only. The election form prepared by the city will indicate the purchase amount for each year of credited service claimed, as well as the total purchase amount.

[(7)]

The participant will be responsible for paying the cost of the actuarial calculations required to calculate the purchase amount. This will be paid upon application for the buyback and is nonrefundable.

[(8)]

The actuary of the City of Port Orange Defined Benefit Retirement Plan will determine the amount of the participant's purchase. The purchase amount is equal to the present value of the increase in the participant's benefit, assuming the participant retires at the 25 or 30 year early retirement date, or from the participant normal retirement date, whichever produces the larges purchase amount. The calculation will be based on the actuarial assumptions in use by the plan actuary for the annual valuation report, as approved by the city council, after the council's receipt of the retirement committee's recommendation.

[(9)]

The participant may pay for the purchase of credited service under this section through a cash payment, or through a direct transfer from a section 457 plan or another qualified plan in accordance with the Internal revenue Code and regulations adopted thereunder.

(Ord. No. 2007-6, § 6, 2-27-2007)