Sec. 120.401. - Excess benefit arrangement.

(a) General. The City of Jacksonville herby creates and establishes a qualified excess benefit arrangement pursuant to Section 415(m) of the Internal Revenue Code of 1986, as amended (the "Code"). The excess benefit arrangement shall be separate from and in addition to both the City of Jacksonville General Employees' Retirement Plan and the City of Jacksonville Corrections Officers' Retirement Plan (collectively, the "Retirement System"). (b) Purpose. The purpose of the excess benefit arrangement is to pay to eligible payees of the Retirement System certain benefits that exceed, and otherwise would be reduced by, the limitations on benefits imposed by Section 415(b) of the Code. (c) Eligibility. Any payee under the Retirement System shall be eligible to participate in the excess benefit arrangement whenever his or her earned benefit under the Retirement System exceeds the maximum benefit limit imposed by Section 415(b) of the Code. Participation in the excess benefit arrangement shall continue for as long as the payee's earned benefit under the Retirement System is reduced by the application of the maximum benefit limit imposed by Section 415(b) of the Code. (d) Benefit. (1) During the period of eligibility, each eligible payee of the Retirement System shall be entitled to receive an amount equal to the difference of the gross amount of the bi-weekly retirement benefit the payee would have been entitled to receive under the Retirement System if not for the limitations on benefits imposed by Section 415(b) of the Code and the gross amount of the reduced bi-weekly retirement benefit actually paid to the payee under the Retirement System, as determined by an actuary engaged by the Pension Board of Trustees. (2) Benefits due under the excess benefit arrangement shall be paid by the City of Jacksonville directly to each payee. All payments under the excess benefit arrangement shall be made on or about the same date the City of Jacksonville pays the payee his or her regular bi-weekly retirement or survivor benefit due under the Retirement System and shall be made by separate transaction. (3) The benefits provided by this Section shall not be subject to execution, garnishment, attachment or any other process of any court with respect to a payee under the excess benefit arrangement, except for income deduction orders and federal income tax levies. (e) Administration. (1) The City of Jacksonville hereby appoints the Pension Board of Trustees to administer the excess benefit arrangement for and on behalf of the City of Jacksonville. (2) The Pension Board of Trustees shall compile and maintain all records necessary or appropriate for the administration of the excess benefit arrangement pursuant to this Section. (f) Funding. (1) The Pension Board of Trustees, in consultation with an actuary engaged by the Pension Board of Trustees for purposes of this Section, shall advise the City of Jacksonville of the annual amount necessary to fund and pay benefits pursuant to this Section and such other information as the City of Jacksonville reasonably deems necessary. (2) All amounts required to be funded and paid by the City of Jacksonville pursuant to this Section shall be maintained in a separate account and shall not be co-mingled with any asset of the Retirement System. (3) If additional retirements during the then current year result in the need for additional funds by the City of Jacksonville, as determined by the Pension Board of Trustees in consultation with an actuary engaged by the Pension Board of Trustees for purposes of this Section, then the Pension Board of Trustees shall promptly inform the City of Jacksonville of the same by, and the City of Jacksonville shall promptly fund such additional amounts. (4) The City of Jacksonville shall be solely responsible for funding the excess benefit arrangement. No payee contributions or deferrals, directly or indirectly, by election or otherwise shall be made or allowed under the excess benefit arrangement. The excess benefit arrangement shall be unfunded within the meaning of federal tax law. (5) The City of Jacksonville shall pay the amounts required by this Section at the same time it pays the normal cost to the Retirement System. (g) Actuarial Gain. Any actuarial gain resulting from this Section shall be credited to the City of Jacksonville's normal cost in the next following actuarial valuation. (Ord. 2005-859-E, § 1)