DRAFT ATTACHMENT B - Agenda Item 9E
ATTACHMENT B - Agenda Item 9E DRAFT AMENDMENT TO THE SOLANO COUNTY TRANSIT PARS RETIREMENT PLAN WHEREAS, the Solano County Transit (the “Employer”) has adopted the Solano County Transit PARS Retirement Plan effective July 1, 2012; and WHEREAS, in accordance with Section 6.2 of the Plan, the Employer has the authority to determine any questions arising in connection with the interpretation, application or administration of the Plan; and WHEREAS, the Employer has the right to amend the Plan in accordance with Section 6.3 of the Plan; and WHEREAS, the Employer desires to amend the Plan to further clarify the Plan’s intended operation. NOW, THEREFORE, BE IT RESOLVED, the Plan is amended effective July 1, 2016, as follows: 1.
Article I, Section 1.1, Eligibility for Benefits, is hereby amended and restated to read: 1.1
Eligibility for Benefits
An Employee shall be eligible to receive Retirement Benefits under this Plan if he or she meets the requirements under the applicable tier of eligibility below: Tier I (a)
is a full-time Employee of the Employer or a regular part-time Employee of the Employer working twenty (20) or more hours per week, on or after June 11, 2012;
(b)
was hired by the Employer on or before December 31, 2012;
(c)
is at least sixty (60) years of age;
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DRAFT (d)
has completed at least five (5) Years of Service with the Employer as of the last day of employment with the Employer;
(e)
has terminated employment with the Employer; and
(f)
has applied for benefits under this Plan.
Tier II (a)
is a full-time Employee of the Employer, or a regular part-time Employee of the Employer working twenty (20) or more hours per week, on or after January 1, 2013;
(b)
was hired or rehired by the Employer on or after January 1, 2013;
(c)
is at least sixty (60) years of age;
(d)
has completed at least five (5) Years of Service with the Employer as of the last day of employment with the Employer;
2.
(e)
has terminated employment with the Employer; and
(f)
has applied for benefits under the Plan.
Article III, Section 3.1, Retirement Benefits, is hereby amended and restated to read: 3.1
Retirement Benefit The Retirement Benefit shall be paid in the Normal Form of Benefit and shall be
an amount equal to one-twelfth (1/12) of the product of the PARS Age Factor, times Benefit Service, times Final Pay. If the Member has accrued Benefit Service under both Tier I and Tier II, then the benefit above shall be the sum of two equations. There shall be a separate equation based on the appropriate PARS Age Factor, Final Pay, and Benefit Service earned under each respective tier of eligibility.
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DRAFT
3.
Article III, Section 3.4, Pre-Retirement Death Benefit, is hereby amended and restated to
read: 3.4
Pre-Retirement Death Benefit A Pre-Retirement Death Benefit shall be provided for those actively employed
Employees of the Employer who die after attaining sixty (60) years of age and after completing at least five (5) Years of Service with the Employer. If the Employee dies prior to attaining sixty (60) years of age but after having completed at least five (5) Years of Service with the Employer, the benefit will commence the first of the month following the date that the Employee would have turned sixty (60) years of age. The benefit shall be equal to the Member’s Retirement Benefit, actuarially reduced as if the Member had retired on his or her date of death and elected a 100% joint-and-survivor option. The benefit will be paid over the lifetime of the surviving spouse or registered domestic partner. There is no pre-retirement death benefit payable, with the exception of the Withdrawal Benefit under Section 3.6, if there is no surviving spouse or registered domestic partner. 4.
Article III, Section 3.5, Deferred Retirement Benefit, is hereby amended and restated to
read: 3.5
Deferred Retirement Benefit Employees eligible pursuant to Section 1.1(a) who terminate employment with
the Employer after completing five (5) Years of Service with the Employer, but prior to age sixty (60), will receive a Deferred Retirement Benefit to begin as early as age sixty (60), payable pursuant to Section 3.1.
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DRAFT Notwithstanding the above, in lieu of the Deferred Retirement Benefit, an Employee may elect to receive at termination of employment one hundred percent (100%) of his or her Employee Contributions plus interest credited at three percent (3%) per annum. 5.
Article III, Section 3.6, Withdrawal Benefit, is hereby amended and restated to read: 3.6
Withdrawal Benefit Employees who terminate employment or are terminated whether voluntarily,
involuntarily, by death, disability, or in any other manner, and do not qualify for Retirement Benefits, may receive a refund of his or her Employee Contributions plus interest credited at three percent (3%) per annum. 6.
A new section 3.8, Reinstatement, is added to Article III as follows: 3.8
Reinstatement A Member who commences benefits pursuant to Section 1.2, who subsequently
reinstates into active employment with the Employer on or after January 1, 2013, shall have Retirement Benefits ceased throughout the Member’s entire reinstatement period. The cost-of-living adjustment described in Section 5.1 will not apply throughout the Member’s entire reinstatement period.
Upon applying for benefits following
reinstatement, benefits shall resume as of the first day of the month following retirement under the Plan. The benefit shall equal the sum of the monthly benefit payable at the month prior to reinstatement into active employment with the Employer, plus an amount equal to one-twelfth (1/12) of the product of the Tier II PARS Age Factor at the reinstatement retirement date, times Years of Service earned during the reinstatement period, times Final Pay.
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DRAFT 7.
Article IV, Section 4.1 Vesting, is hereby amended by adding the following sentence to
the end of the section. 4.1
Vesting Employees who terminate employment with the Employer prior to satisfying the
vesting requirements under Section 1.1, and at a later date are rehired by the Employer, shall be credited with prior Years of Service with the Employer to count toward vesting and benefit service, provided the Employee has not taken a distribution of his or her Employee Contribution Account pursuant to Section 3.6. 8.
The definition of “Benefit Service” under Article VIII, Section 8.1, is hereby amended and
restated to read: “Benefit Service” means the sum total of full and partial Years of Service with the Employer. 9.
A new definition of “Year of Service” is added to Section 8.1 as follows: “Year of Service” means: Employees shall accrue 0.1 years of service to be credited toward vesting and benefit service for each month of full-time compensated service with the Employer where Employee contributions are made pursuant to Section 2.1.
For Employees
working less than full time, the monthly accrual shall be credited based on the following table: Employee’s Regular Work Schedule
Monthly Service Credit Accrual
20 to 27 hours per week
0.05
28 to 35 hours per week
0.075
36 to 40 hours per week
0.1
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DRAFT Service credit shall be prorated for Employees working a partial month based on the employees actual wages for that month divided by their monthly wage rate. Employees moving from their regular work schedule to another work schedule during the month shall accrue service credit based on the days worked under each schedule. In no event will more than one year of service be credited in any Plan Year. Notwithstanding the above, Employees who have terminated employment with the Employer and at a later date are rehired by the Employer, shall not receive credit for prior years of service with the Employer if the Employee has taken a distribution of his or her Employee Contribution Account pursuant to Section 3.6.
IN WITNESS WHEREOF, this Amendment is hereby adopted effective as of July 1, 2016.
Solano County Transit By: Mona Babauta Its: Executive Director Dated:
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Example 1: Employee works full-time from July 1, 2016 to June 30, 2017: Service Credit Earned: 1.0 Year
Employee accrues 0.1 years of service credit for each month of full-time service Employee cannot receive more than 1.0 year of service during the plan year
Example 2: Employee works full-time from July 1, 2016 to April 30, 2017: Service Credit Earned: 1.0 Year
Employee accrues 0.1 years of service credit for each month of full-time service After 10 months of full-time service during the plan year, the employee would have earned 1.0 year of service
Example 3: Employee works full-time from July 1, 2016 to December 31, 2016: Service Credit Earned: 0.6 Years
Employee accrues 0.1 years of service credit for each month of full-time service based on 6 months of service
Example 4: Employee works full-time from July 1, 2016 to October 15, 2016. Employee earns $2,500 in October 2016 with a monthly base rate of $5,000: Service Credit Earned: 0.35 Years
Employee accrues 0.1 years of service credit for each month of full-time service for 3 months In final month (October 2016), employee receives 0.05 Years of service credit based on a ratio of earned wages to monthly base rate ($2,500/$5,000)
Example 5: Regular part-time salaried employee works on a 34 hours per week basis from July 1, 2016 to June 30, 2017. Service Credit Earned: 0.9 Years
Employee accrues 0.075 years of service credit for each month of service for 12 months (i.e., 12 x .075 = 0.9)
Example 6: Regular part-time salaried employee works on a 22 hours per week basis from July 1, 2016 to June 30, 2017. Service Credit Earned: 0.6 Years
Employee accrues 0.05 years of service credit for each month of service for 12 months (i.e., 12 x .05 = 0.6)
Example 7: Regular part-time salaried employee works on a 22 hours per week basis from July 1, 2016 to October 15, 2016. Employee earns $1,500 in October 2016 with a monthly base rate of $3,000:
Service Credit Earned: 0.175 Years
Employee accrues 0.05 years of service credit for each month of service for 3 months In Final Month (October 2016), employee receives 0.025 years of service credit based on a ratio of earned wages to monthly base rate ($1,500/$3,000)
Article I, Section 1.1, Eligibility for Benefits, is hereby amended and restated to read: 1.1
Eligibility for Benefits
An Employee shall be eligible to receive Retirement Benefits under this Plan if he or she meets the requirements under the applicable tier of eligibility below: Tier I (a)
is a full-time Employee of the Employer or a regular part-time Employee of the Employer working twenty (20) or more hours per week, on or after June 11, 2012;
(b)
was hired by the Employer on or before December 31, 2012;
(c)
is at least sixty (60) years of age;
Page 1 of 6
DRAFT (d)
has completed at least five (5) Years of Service with the Employer as of the last day of employment with the Employer;
(e)
has terminated employment with the Employer; and
(f)
has applied for benefits under this Plan.
Tier II (a)
is a full-time Employee of the Employer, or a regular part-time Employee of the Employer working twenty (20) or more hours per week, on or after January 1, 2013;
(b)
was hired or rehired by the Employer on or after January 1, 2013;
(c)
is at least sixty (60) years of age;
(d)
has completed at least five (5) Years of Service with the Employer as of the last day of employment with the Employer;
2.
(e)
has terminated employment with the Employer; and
(f)
has applied for benefits under the Plan.
Article III, Section 3.1, Retirement Benefits, is hereby amended and restated to read: 3.1
Retirement Benefit The Retirement Benefit shall be paid in the Normal Form of Benefit and shall be
an amount equal to one-twelfth (1/12) of the product of the PARS Age Factor, times Benefit Service, times Final Pay. If the Member has accrued Benefit Service under both Tier I and Tier II, then the benefit above shall be the sum of two equations. There shall be a separate equation based on the appropriate PARS Age Factor, Final Pay, and Benefit Service earned under each respective tier of eligibility.
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DRAFT
3.
Article III, Section 3.4, Pre-Retirement Death Benefit, is hereby amended and restated to
read: 3.4
Pre-Retirement Death Benefit A Pre-Retirement Death Benefit shall be provided for those actively employed
Employees of the Employer who die after attaining sixty (60) years of age and after completing at least five (5) Years of Service with the Employer. If the Employee dies prior to attaining sixty (60) years of age but after having completed at least five (5) Years of Service with the Employer, the benefit will commence the first of the month following the date that the Employee would have turned sixty (60) years of age. The benefit shall be equal to the Member’s Retirement Benefit, actuarially reduced as if the Member had retired on his or her date of death and elected a 100% joint-and-survivor option. The benefit will be paid over the lifetime of the surviving spouse or registered domestic partner. There is no pre-retirement death benefit payable, with the exception of the Withdrawal Benefit under Section 3.6, if there is no surviving spouse or registered domestic partner. 4.
Article III, Section 3.5, Deferred Retirement Benefit, is hereby amended and restated to
read: 3.5
Deferred Retirement Benefit Employees eligible pursuant to Section 1.1(a) who terminate employment with
the Employer after completing five (5) Years of Service with the Employer, but prior to age sixty (60), will receive a Deferred Retirement Benefit to begin as early as age sixty (60), payable pursuant to Section 3.1.
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DRAFT Notwithstanding the above, in lieu of the Deferred Retirement Benefit, an Employee may elect to receive at termination of employment one hundred percent (100%) of his or her Employee Contributions plus interest credited at three percent (3%) per annum. 5.
Article III, Section 3.6, Withdrawal Benefit, is hereby amended and restated to read: 3.6
Withdrawal Benefit Employees who terminate employment or are terminated whether voluntarily,
involuntarily, by death, disability, or in any other manner, and do not qualify for Retirement Benefits, may receive a refund of his or her Employee Contributions plus interest credited at three percent (3%) per annum. 6.
A new section 3.8, Reinstatement, is added to Article III as follows: 3.8
Reinstatement A Member who commences benefits pursuant to Section 1.2, who subsequently
reinstates into active employment with the Employer on or after January 1, 2013, shall have Retirement Benefits ceased throughout the Member’s entire reinstatement period. The cost-of-living adjustment described in Section 5.1 will not apply throughout the Member’s entire reinstatement period.
Upon applying for benefits following
reinstatement, benefits shall resume as of the first day of the month following retirement under the Plan. The benefit shall equal the sum of the monthly benefit payable at the month prior to reinstatement into active employment with the Employer, plus an amount equal to one-twelfth (1/12) of the product of the Tier II PARS Age Factor at the reinstatement retirement date, times Years of Service earned during the reinstatement period, times Final Pay.
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DRAFT 7.
Article IV, Section 4.1 Vesting, is hereby amended by adding the following sentence to
the end of the section. 4.1
Vesting Employees who terminate employment with the Employer prior to satisfying the
vesting requirements under Section 1.1, and at a later date are rehired by the Employer, shall be credited with prior Years of Service with the Employer to count toward vesting and benefit service, provided the Employee has not taken a distribution of his or her Employee Contribution Account pursuant to Section 3.6. 8.
The definition of “Benefit Service” under Article VIII, Section 8.1, is hereby amended and
restated to read: “Benefit Service” means the sum total of full and partial Years of Service with the Employer. 9.
A new definition of “Year of Service” is added to Section 8.1 as follows: “Year of Service” means: Employees shall accrue 0.1 years of service to be credited toward vesting and benefit service for each month of full-time compensated service with the Employer where Employee contributions are made pursuant to Section 2.1.
For Employees
working less than full time, the monthly accrual shall be credited based on the following table: Employee’s Regular Work Schedule
Monthly Service Credit Accrual
20 to 27 hours per week
0.05
28 to 35 hours per week
0.075
36 to 40 hours per week
0.1
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DRAFT Service credit shall be prorated for Employees working a partial month based on the employees actual wages for that month divided by their monthly wage rate. Employees moving from their regular work schedule to another work schedule during the month shall accrue service credit based on the days worked under each schedule. In no event will more than one year of service be credited in any Plan Year. Notwithstanding the above, Employees who have terminated employment with the Employer and at a later date are rehired by the Employer, shall not receive credit for prior years of service with the Employer if the Employee has taken a distribution of his or her Employee Contribution Account pursuant to Section 3.6.
IN WITNESS WHEREOF, this Amendment is hereby adopted effective as of July 1, 2016.
Solano County Transit By: Mona Babauta Its: Executive Director Dated:
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Example 1: Employee works full-time from July 1, 2016 to June 30, 2017: Service Credit Earned: 1.0 Year
Employee accrues 0.1 years of service credit for each month of full-time service Employee cannot receive more than 1.0 year of service during the plan year
Example 2: Employee works full-time from July 1, 2016 to April 30, 2017: Service Credit Earned: 1.0 Year
Employee accrues 0.1 years of service credit for each month of full-time service After 10 months of full-time service during the plan year, the employee would have earned 1.0 year of service
Example 3: Employee works full-time from July 1, 2016 to December 31, 2016: Service Credit Earned: 0.6 Years
Employee accrues 0.1 years of service credit for each month of full-time service based on 6 months of service
Example 4: Employee works full-time from July 1, 2016 to October 15, 2016. Employee earns $2,500 in October 2016 with a monthly base rate of $5,000: Service Credit Earned: 0.35 Years
Employee accrues 0.1 years of service credit for each month of full-time service for 3 months In final month (October 2016), employee receives 0.05 Years of service credit based on a ratio of earned wages to monthly base rate ($2,500/$5,000)
Example 5: Regular part-time salaried employee works on a 34 hours per week basis from July 1, 2016 to June 30, 2017. Service Credit Earned: 0.9 Years
Employee accrues 0.075 years of service credit for each month of service for 12 months (i.e., 12 x .075 = 0.9)
Example 6: Regular part-time salaried employee works on a 22 hours per week basis from July 1, 2016 to June 30, 2017. Service Credit Earned: 0.6 Years
Employee accrues 0.05 years of service credit for each month of service for 12 months (i.e., 12 x .05 = 0.6)
Example 7: Regular part-time salaried employee works on a 22 hours per week basis from July 1, 2016 to October 15, 2016. Employee earns $1,500 in October 2016 with a monthly base rate of $3,000:
Service Credit Earned: 0.175 Years
Employee accrues 0.05 years of service credit for each month of service for 3 months In Final Month (October 2016), employee receives 0.025 years of service credit based on a ratio of earned wages to monthly base rate ($1,500/$3,000)
