§ 43-61. Maximum benefits.

(a)

Code Section 415 Limitations on Benefit Attributable to Employer Contributions (Includes [F.S.] ch. 175 Contributions).

(1)

Basic limitation on benefit: Notwithstanding any provision in the plan to the contrary and except as provided in subsection (2) below, the annual benefit payable to a participant under the plan and any other defined benefit plans, to the extent attributable to employer contributions, shall not exceed the lesser of:

a.

The defined benefit dollar limitation; or

b.

One hundred percent of the participants average compensation for the three consecutive calendar years (or actual number of years, if less than three) during which the participant actively participated in the plan or other defined benefit plans and has the greatest aggregate compensation.

(2)

Exception: The limitations under subsection (a) shall not apply if the participants annual benefit attributable to employer contributions under the plan or any other defined benefit plans does not in the aggregate exceed $10,000.00 and the participant has not at any time participated in any defined contribution plans.

(3)

Adjustments to basic limitation.

a.

Adjustment for early retirement: If a participant's benefit under the plan commences before age 62, the defined benefit dollar limitation shall be adjusted (in the manner prescribed by the Secretary of the Treasury) so that it is the actuarial equivalent (determined using the applicable interest rate and mortality table under Code Section 417(e)(3)) of an annual benefit equal to the defined benefit dollar limitation commencing at age 62. The reduction under this subparagraph shall not reduce the limitation of paragraph (a)(i) below (1) $75,000.00 if the benefit begins at age 55, or (2) if the benefit begins before age 55, the equivalent of the $75,000.00 limitation for age 55.

b.

Adjustment for deferred retirement: If a participant's benefit under the plan commences after age sixty-five, the defined benefit dollar limitation shall be adjusted (in the manner prescribed by the Secretary of the Treasury) so that is the actuarial equivalent determined using the applicable interest rate and mortality table under Code Section 417(e)(3) of an annual benefit equal to the defined benefit dollar limitation commencing at age 65.

c.

Adjustment for less than ten years of participation: If a participant has completed less than ten years of participation in the plan, the defined benefit dollar limitation shall be adjusted by multiplying it by a fraction, the numerator of which is the participant's number of years (or part thereof) of participation in the plan and the denominator of which is ten provided, such adjustment shall in no event reduce the defined benefit dollar limitation to an amount which is less than one-tenth of the defined benefit dollar limitation (as determined without regard to this subsection).

d.

Adjustment for less than ten years of vesting service: If a participant has completed less than ten years of service, the limitation referred to in subsection (a)(ii) above and the exception described in subsection (b) above shall be adjusted by multiplying the amounts described in such limitation and exception by a fraction, the numerator of which is the participant's number of years of service (or part thereof) and the denominator of which is ten provided, such adjustments shall in no event reduce the limitation or exception amount to a figure which is less than one-tenth of such limitation or exception amount (as determined without regard to this subsection).

(4)

Preservation of current accrued benefit: The maximum annual benefit under the plan of a participant who was a participant as of the first day of the first limitation year beginning on or after January 1, 1987, shall not be less than such participant's current accrued retirement benefit.

(b)

Combined plan limitation. If a firefighter is or has been a participant in one or more defined benefit plans and/or one or more defined contribution plans maintained by the city and such firefighters (hereinafter referred to as the "multiple plan participant") participation in such multiple plans will cause, in a particular limitation year, the limitations of Code Section 415 to be violated, then the benefit payable under the Ocala Employees Retirement System shall be reduced so that the benefit payable under the Ocala Employees Retirement System will be the maximum benefit which may be paid to the multiple plan participant without causing a violation of Code Section 415 after considering the benefits and contributions for the multiple plan participant under all other plans which must be considered in determining benefits and contributions for purposes of the limitations of Code Section 415. The effect of this section shall be to limit the total benefits payable under all plans to an amount that will not cause a violation of Code Section 415.

(Ord. No. 2891, § 12, 10-13-98)