Bay City |
Code of Ordinances |
Chapter 2. ADMINISTRATION |
Article XI. POLICE AND FIRE PENSION PLAN AND RETIREMENT SYSTEM |
§ 2-516. Actuarial assumptions.
Actuarial equivalence will be determined on the basis of the interest rate and mortality tables adopted by the board of trustees. Actuarial assumptions that will be used to determine the amount or level of any optional benefit forms will be the actuarial equivalent of the normal retirement benefit. Optional benefits provided under the plan shall be actuarially adjusted in relation to the straight life annuity. For purposes of determining the IRC § 415 limitations, the interest rate assumptions will not be less than the greater of five percent or the rate specified in the plan for determining actuarial equivalence for the particular form of retirement benefit. The actuarial early retirement reduction and reduction of the dollar limit if the employee has less than ten years of participation under IRC § 415 does not apply to income received as a pension or annuity as a result of an employee's personal injury, sickness or death and shall be administered in accordance with IRC § 415(b)(2), as amended.
(Ord. No. 2002-8, § 6, 5-20-02)