HomeMy WebLinkAboutMINUTES - 12112012 - SD.5RECOMMENDATION(S):
ADOPT Resolution No. 2012/504 which would amend and restate the Contra Costa County Replacement Benefits
Plan on behalf of the County of Contra Costa, the Housing Authority of Contra Costa County, and the Contra Costa
County Fire Protection District; AUTHORIZE the Chair to sign the revised Plan; and DELEGATE administration of
the revised Plan to the Auditor-Controller.
FISCAL IMPACT:
None. The Plan would be amended for consistency with the California Public Employees Pension Reform Act.
BACKGROUND:
County, Contra Costa County Fire Protection District, and Housing Authority employees receive retirement benefits
from the Contra Costa County Employees Retirement Association (“CCCERA.”). However, Internal Revenue Code
section 415 (b) puts an annual limit on the amount of retirement benefits that CCCERA may pay to a retiree, even if,
but for the limitation, the retiree would have been due additional retirement benefits. Internal Revenue Code section
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 12/11/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Ted Cwiek, 925-335-1766
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: December 11, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Robert Campbell, Auditor-Controller, David Twa, County Administrator, Sharon Anderson, County Counsel, Marilyn Leedom, Retirement
Administrator, Ted Cwiek, Human Resources Director, Daryl Louder, Chief/CCC Fire Protection District, Joseph Villarreal, Executive Director/Housing
Authority
SD. 5
To:Board of Supervisors
From:Ted Cwiek, Human Resources
Date:December 11, 2012
Contra
Costa
County
Subject:Amend Replacement Benefits Plan To Comply With California Public Employees Pension Reform Act
BACKGROUND: (CONT'D)
415 also permits an employer to adopt a replacement benefits plan to pay those benefits that the retiree has earned
but CCCERA cannot pay. The County Employees Retirement Law, in Government Code section 31899.4,
requires each County and District to provide a replacement benefits program for retirees whose benefits are
limited by Internal Revenue Code section 415 (b). On October 24, 2006, the Board of Supervisors adopted the
required Replacement Benefits Plan. The Plan applies to the County, the Contra Costa County Fire Protection
District, and the Housing Authority. The Plan covers all employee groups for the County and for these other
Board governed entities. Under the Plan, the County must pay the retiree the difference between the amount
CCCERA can pay and the amount that the employee would have received from CCCERA, but for the section 415
(b) limit. The replacement benefits paid by the County cannot exceed this amount. (Gov. Code, § 31899.4 (a).)
The County receives a credit from CCCERA for payments made under the Plan.
Effective January 1, 2013, the California Public Employees Pension Reform Act (“PEPRA”), (Statutes of 2012,
Ch. 296, 297), places new restrictions on Replacement Benefit Plans. PEPRA prohibits employers from offering a
Replacement Benefits Plan to new employees, as defined. In addition, after 2012, employers may not expand an
existing Replacement Benefits Plan to cover an additional employee group not previously covered under the plan.
(Gov. Code, § 7522.30.)
With the passage of PEPRA, it is necessary to amend the Replacement Benefits Plan to ensure that its terms are
consistent with the new law. The amendments would specify that the Plan does not apply to new employees as
defined by PEPRA and would revise the definition of plan member accordingly. The amendments would not
extend the Plan to any employee group that is not already covered by the existing Plan. Finally, the amendments
would clarify that Article 9.2, “No Vested Rights” applies to all employees and retirees covered by the Plan. Upon
adoption of the amended and restated Contra Costa County Replacement Benefits Plan, the County will comply
with the requirements of Government Code sections 31899 et. seq. and with PEPRA.
CONSEQUENCE OF NEGATIVE ACTION:
The terms of the Contra Costa County Replacement Benefits Plan may not be consistent with PEPRA.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
Resolution No. 2012/504
Replacement Benefits Plan
CONTRA COSTA COUNTY
REPLACEMENT
BENEFITS PLAN
(Adopted October 24, 2006)
(Amended and Restated December 11, 2012)
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TABLE OF CONTENTS
Page
Article 1. Establishment and Status of Plan ................................................................................1
Article 1.1 Establishment .................................................................................................................1
Article 1.2 Effective Date ................................................................................................................1
Article 1.3 Portion of CCCERA ......................................................................................................1
Article 1.4 Purpose and Tax Status of this Plan ...............................................................................1
Article 1.5 PEPRA Compliance .......................................................................................................2
Article 2. Definitions ......................................................................................................................2
Article 2.1 Plan Definitions .............................................................................................................2
Article 3. Participation ..................................................................................................................4
Article 3.1 CCCERA Members With Benefits Limited by Section 415(b) .....................................4
Article 3.2 Commencement of Participation ...................................................................................4
Article 3.3 Cessation of Participation ..............................................................................................4
Article 3.4 Recommencement of Participation ................................................................................4
Article 3.5 Eligible Survivors ..........................................................................................................4
Article 3.6 No One Else Shall Receive Benefits ..............................................................................5
Article 4. Retirement Benefits Payable ........................................................................................5
Article 4.1 Member to Provide Notice and Information For Calculation of Benefits .....................5
Article 4.2 Amount of Benefit - Initial Determination ....................................................................5
Article 4.3 Amount of Benefit - Redetermination ...........................................................................6
Article 4.4 Amount of Benefits - Eligible Survivors .......................................................................7
Article 4.5 Timing of Payments .......................................................................................................8
Article 4.6 Form of Benefit Paid ......................................................................................................8
Article 4.7 Taxes ..............................................................................................................................8
Article 4.8 Determination Solely by Plan Administrator .................................................................9
Article 5. Exemption from Process; Assignments Prohibited ...................................................9
Article 5.1 Prohibition Against Assignment ....................................................................................9
Article 5.2 Payment Upon Marital Dissolution or Legal Separation ...............................................9
Article 6. Administration ............................................................................................................10
Article 6.1 Powers of the Plan Administrator ................................................................................10
Article 6.2 Absolute Discretion of the Administrator ....................................................................11
Article 6.3 Costs of Administration ...............................................................................................11
Article 6.4 Claims Review Procedure ............................................................................................11
Article 6.5 Correction of Errors .....................................................................................................12
Article 6.6 Written Communications Mailed .................................................................................12
Article 7. Source of Benefits ........................................................................................................12
Article 7.1 Unfunded Plan .............................................................................................................12
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Article 7.2 No Employee Deferrals ...............................................................................................13
Article 7.3 No use of CCCERA Assets .........................................................................................13
Article 8. Miscellaneous ...............................................................................................................13
Article 8.1 Applicable Law ............................................................................................................13
Article 8.2 No Service Rights ........................................................................................................13
Article 8.3 Benefit Limits ..............................................................................................................13
Article 9. Amendment or Termination of Plan .........................................................................13
Article 9.1 Right to Amend or Terminate ......................................................................................13
Article 9.2 No Vested Rights Created ............................................................................................14
1
CONTRA COSTA COUNTY
REPLACEMENT BENEFITS PLAN
Article 1. Establishment and Status of Plan
Article 1.1 Establishment
The County of Contra Costa, State of California, hereby establishes and adopts a
retirement plan entitled the Contra Costa County Replacement Benefits Plan” (the
“Plan”) to provide annual retirement benefits otherwise earned by and payable to
certain members of the Contra Costa County Employees’ Retirement Association
(“CCCERA”) but which are limited by the rules of Section 415(b) of the Internal
Revenue Code of 1986, as amended (“Code”). CCCERA is a tax qualified
retirement plan under Section 401(a) of the Code and is a governmental plan as
defined in Section 414(d) of the Code.
Article 1.2 Effective Date
This Plan shall be effective, and benefits shall be payable from this Plan, for
periods beginning as of January 1, 2006 or as of such other date on which this
plan is made effective by the Board of Supervisors for retired Members who were
employees of the County, or for retired Members who were employees of a
District, as provided herein. Benefits payable as of the Effective Date shall
include amounts that were otherwise payable under Government Code sections
31899 et seq. for any prior period of time, without interest.
Article 1.3 Portion of CCCERA
This Plan shall be deemed a “portion” of CCCERA solely to the extent required
by, and within the meaning of Section 415(m)(3) of the Code as in effect on
January 1, 2006, and not for any other purpose.
Article 1.4 Purpose and Tax Status of this Plan
(a) In accordance with Section 415(m) of the Code, this Plan is solely for
the purpose of providing to retired members of CCCERA, and to their eligible
survivors, that part of the annual benefit otherwise payable under CCCERA that
exceeds the limitations on benefits imposed by Section 415(b) of the Code.
(b) It is intended that this Plan be treated as an “exempt governmental
deferred compensation plan” described in Section 3121(v)(3) of the Code;
therefore payments under this Plan are not included as wages subject to Social
Security taxes.
(c) No assets directly or indirectly relating to this Plan shall be held in
trust, or otherwise held or set aside for the exclusive benefit of participants and
2
their beneficiaries. This Plan shall be unfunded within the meaning of the federal
income tax laws.
Article 1.5 PEPRA Compliance
(a) In accordance with Government Code section 7522.43, this Plan and
the benefits provided hereunder are not offered to any new employees of the
County or to any new employees of a District as defined in the California Public
Employees Pension Reform Act (“PEPRA.”) Each employee of the County who
is not a new employee as defined in PEPRA is called a current employee or a
former employee of the County. Each employee of a District who is not a new
employee as defined in PEPRA is called a current or former employee of a
District.
(b) In accordance with Government Code section 7522.43, the group to
which this Plan and the benefits provided hereunder is offered (the “Group”) is
every current and former employee of the County, and every former and current
employee of a District, who is not a new employee as defined in PEPRA and
whose benefits under CCCERA are now or may in the future be limited by
Section 415 (b) for periods on and after the Effective Date and who is not
prohibited from receiving benefits from a replacement benefits plan under the
terms of PEPRA.
(c) The only persons who receive benefits under this Plan are those
current and former employees of the County or of a District (and their Eligible
Survivors) whose benefits payable by CCCERA are actually limited by Section
415 (b) now or in the future. This Plan calls such current and former employees
of the County or of a District “Participants.” However, the broader group to
which this Plan and the benefits provided hereunder are offered (the “Group”)
includes every current and former employee of the County and every current and
former employee of a District, who is not a new employee as defined in PEPRA.
This distinction between “Participants” and the “Group” is required because
precisely which members of the Group actually are Participants who receive
benefits hereunder may vary year by year depending on multiple factors including
federal tax rules.
Article 2. Definitions
Article 2.1 Plan Definitions
Terms used in this Plan shall have the meaning set out below.
Beginning Date means the first date during a Plan Year with respect to which
payment begins under this Plan.
3
Board of Supervisors means the Board of Supervisors of the County of Contra
Costa.
CCCERA means the Contra Costa County Employees’ Retirement Association.
CERL means the County Employees Retirement Law of 1937 as set out in the
California Government Code.
Code means the Internal Revenue Code of 1986, as amended, and any rules and
regulations issued thereunder.
Commencement Date means the date of commencement of participation in this
Plan as set out in Article 3.2 hereof.
County means the County of Contra Costa, State of California.
District means any public agency other than the County which is included in
CCCERA pursuant to the CERL and which is governed by the Board of
Supervisors.
Effective Date means the first date with respect to which benefits are payable
under this Plan as set out in Article 1.2 hereof.
Eligible Survivor means the surviving spouse, surviving child or children,
surviving parent or parents, or surviving beneficiary designated by the Member,
to whom benefits are payable from CCCERA on the death of the Member.
Member means a member, as defined in the CERL, of CCCERA who is a former
or current employee of the County, or who is a former or current employee of a
District, and who on and after January 1, 2013, is not a new employee as defined
in PEPRA and who is in the Group to which this Plan is offered as provided in
Article 1.5.
Participant means a retired member who participates in this Plan pursuant to
Article 3 hereof. An Eligible Survivor is not a Participant in this Plan, but is a
beneficiary who receives benefits under this Plan with respect to a Participant or
Member.
PEPRA means the California Public Employees Pension Reform Act.
Plan means this Contra Costa County Replacement Benefits Plan.
Plan Administrator means the County of Contra Costa, State of California.
Plan Year means the 12-month period beginning on January 1 and ending on
December 31.
4
Section 415 means Section 415 of the Code.
Article 3. Participation
Article 3.1 CCCERA Members With Benefits Limited by Section 415(b)
Participation in this Plan is limited solely to retired Members whose benefits
payable by CCCERA are limited by Section 415(b) for periods on and after the
Effective Date.
Article 3.2 Commencement of Participation
A retired Member who is eligible under Article 3.1 shall commence participation
in this Plan on the first date, on or after the Effective Date, with respect to which
his or her benefits payable from CCCERA cannot be fully paid because of the
limits of Section 415(b). This date is the Commencement Date.
Article 3.3 Cessation of Participation
Participation in this Plan shall cease as of the first date for which benefits payable
to the retired Member from CCCERA are no longer limited by Section 415(b) and
therefore can be fully paid by CCCERA. Participation shall also cease on the
retired member’s death or when the retired Member’s CCCERA benefits cease.
Article 3.4 Recommencement of Participation
If a Participant has ceased participation in this Plan, would be eligible if his or her
benefits were limited by Section 415(b) as provided in Article 3.1, and at a later
date the full payment of his or her CCCERA benefits is again limited by Section
415(b), he or she shall again commence participation as provided in Article 3.2
hereof and shall cease participation as provided in Article 3.3 hereof.
Article 3.5 Eligible Survivors
Any Eligible Survivor of a Member shall receive benefits under this Plan as of the
first date (on or after the Effective Date) on which benefits payable to him or her
from CCCERA cannot be fully paid because of the limits of Section 415(b). The
Eligible Survivor’s benefits paid under this Plan shall cease as of the first date for
which his or her CCCERA benefit is no longer limited by Section 415(b) and
therefore can be fully paid by CCCERA. The Eligible Survivor’s benefits paid
under this Plan shall recommence at a later date if full payment of his or her
CCCERA benefits is again limited by Section 415(b), and shall thereafter cease as
of the next date that full payment of the CCCCERA benefit is no longer limited
by Section 415(b).
5
Article 3.6 No One Else Shall Receive Benefits
No one other than a person described in this Article shall receive any benefits
under this Plan, except as required by qualified domestic relations orders or
applicable law.
Article 4. Retirement Benefits Payable
Article 4.1 Member to Provide Notice and Information For Calculation of
Benefits
(a) To receive benefits under this Plan in any Plan Year, a Participant or
Eligible Survivor must:
(1) Notify the County, in writing at the time and in the manner
specified by the Plan Administrator, with written supporting documentation from
CCCERA reasonably acceptable to the Plan Administrator, that his or her benefits
payable from CCCERA cannot be fully paid because of the limits of Section
415(b); and
(2) After giving such notice to the County, obtain from CCCERA
and provide to the County all information necessary or appropriate, as determined
by the Plan Administrator, for the County to fulfill its obligations under this Plan
including but not limited to the determination and redetermination of CCCERA
benefits and the form of payment of CCCERA benefits; and
(3) To the extent necessary or appropriate as determined by the
Plan Administrator, each time his or her benefits from CCCERA change, comply
with subsections (1) and (2) above; and
(4) To the extent he or she receives notice from CCCERA that the
limits of Section 415(b) either no longer apply to the receipt of benefits or the
amount of benefits payable by CCCERA on account of the limits of section
415(b) have changed, so notify the County in writing, at the time and in the
manner specified by the Plan Administrator.
(5) The Plan will not pay interest on benefits, and there will be no
actuarial adjustment of benefits if claims for benefits are made after the time
specified by the Plan Administrator.
Article 4.2 Amount of Benefit – Initial Determination
(a) Upon receipt of the notice and information from the Participant
required by Article 4.1, the Plan Administrator shall initially determine the benefit
to be paid under this Plan in any Plan Year to a Participant at the Participant’s
Commencement Date under the following steps.
6
(1) Determine the Participant’s benefits payable at the time of the
Commencement Date under CCCERA without regard to the limits of Section
415(b) and after taking into account the form of CCCERA benefit selected by the
Participant.
(2) Determine the amount of the Participant’s CCCERA benefits
(if any) attributable, at the Commencement Date, to after-tax member
contributions, rollovers and direct transfers which are excluded from the limits of
Section 415(b) to the extent provided by the Code, after taking into account the
form of CCCERA benefit selected by the Participant.
(3) Subtract the amount determined in (2) from the amount
determined under (1); this is the amount subject to the Section 415(b) limits for
the Participant.
(4) Determine the maximum benefits payable to the Participant
from CCCERA under the then current benefit payment limits of Section 415(b),
ignoring any benefits determined under (2) to the extent provided by the Code.
The determination under this step (4) shall take into account items such as the
applicable dollar limits, the form of benefit payment chosen, the date that the
Participant first became a Member, and whether he or she qualifies for special
limits under Section 415(b) such as those for certain safety members.
(5) Subtract the amount determined under (4) from the amount
determined under (3). If the amount in (3) is greater than that in (4), the
difference is the initial benefit paid under this Plan. If the amount in (4) is equal
to or greater than the amount in (3), then no benefits are payable under this Plan.
(b) The total retirement benefit that will be paid to Participant in any year
will be the sum of the benefit paid under this Plan and the benefit paid under
CCCERA, including amounts attributable to both County and after tax Member
contributions. Therefore, the total retirement benefit that will be paid to a
Participant under this Plan and CCCERA is the sum of the amounts in (2), (4) and
(5) above. However, this Plan and CCCERA shall be separate entities and shall
be administered separately. In addition, separate checks will be paid for the
benefits under this Plan and CCCERA; the Plan Administrator shall provide
separate tax reporting for the benefits paid under this Plan; and no assets of
CCCERA shall be used, directly or indirectly, to pay for benefits or
administration or any other costs of this Plan.
Article 4.3 Amount of Benefit – Redetermination
(a) The Plan Administrator may rely on the determination by CCCERA,
for purposes of administering CCCERA in accordance with Section 415(b) of the
amounts set out under each of steps (1) through (5) in paragraph (a) of Article 4.2.
7
(b) As of each January 1 following the Participant’s Commencement Date
(or the date of commencement of benefits under this Plan for any Eligible
Survivor), the Participant’s, or Eligible Survivor’s benefit under this Plan shall be
redetermined by following each of steps (1) through (5) of Article 4.2(a), but
using the then current amounts determined by applying (i) cost of living
adjustments and other changes (if any) to the benefits provided under CCCERA,
and (ii) cost of living adjustments and other changes (if any) to the maximum
benefit limits established by Section 415(b).
(c) At the Plan Administrator’s discretion, the amount of every
Participant’s and Eligible Survivor’s benefits may be redetermined as of a date
other than January 1 for administrative convenience or if there is a material
change in the rules governing the maximum benefit limits established under
Section 415(b) or a material change in CCCERA benefits.
(d) The Plan Administrator may rely on the redetermination by CCCERA
for purposes of administering CCCERA, in accordance with Section 415(b), of
any amounts in this Article.
Article 4.4 Amount of Benefits – Eligible Survivors
Eligible Survivors shall be entitled to benefits under this Plan as follows:
(a) Eligible Survivors shall be entitled to benefits under this Plan only if
they are entitled to benefits that are limited by Section 415(b) under CCCERA
after the death of a Member or Participant.
(b) The benefit paid to an Eligible Survivor under this Plan shall be
determined as if he or she were the Participant, substituting in the calculations
under Articles 4.1 or 4.2, as applicable, the amounts due to the Eligible Survivor
for the amounts due to the Participant.
8
Article 4.5 Timing of Payments
(a) In any Plan Year, benefits shall only be paid under this Plan to a
Participant or Eligible Survivor after the date in the Plan year that the benefits
paid to such person from CCCERA have reached the maximum annual benefit
that CCCERA can pay under Section 415(b) for that Plan Year. The day after the
maximum annual benefit payment from CCCERA is reached is the Beginning
Date for the Participant or Eligible Survivor for that Plan Year. The Beginning
Date may change from Plan Year to Plan Year as the amount payable under this
Plan is redetermined.
(b) The amount of benefits provided under this Plan shall be paid
annually, no later than the end of the Plan Year in which benefits are payable
under this Plan to a Participant or to an Eligible Survivor.
(c) If a retired Participant is reemployed by the County or a District and
on reemployment his or her CCCERA benefits cease, then his or her benefits
under this Plan shall cease at the same time. Benefits shall resume (if at all) under
this Plan when the Member again starts to receive benefits under CCCERA. At
that time, a recalculation shall be made under Article 4.3 hereof, treating the first
month for which CCCERA benefits resume as if it were a date of recalculation
under Article 4.2. Similar rules shall apply if the benefits of an Eligible Survivor
under CCCERA cease (or resume) under CCCERA for any reason, including
without limitation ceasing to be an Eligible Survivor.
Article 4.6 Form of Benefit Paid
The benefit paid to a Participant or Eligible Survivor under this plan shall be paid
in the same form as benefits are paid to him or her under CCCERA. For example,
if the CCCERA benefit is paid as a 100% pension to the member and 50%
survivor benefit to his or her surviving spouse, the same benefit form shall be paid
under this Plan.
Article 4.7 Taxes
The Plan Administrator shall have full authority to withhold any and all taxes that
are or may be due from any and all amounts paid under the Plan (including but
not limited to income and payroll taxes), to pay them to the appropriate
government agency, and to file and distribute necessary or appropriate tax reports
and forms.
9
Article 4.8 Determination Solely by Plan Administrator
The Plan Administrator shall have the sole authority and discretion to determine
the amount of benefits (if any), payable under this Plan.
Article 5. Exemption from Process; Assignments Prohibited
Article 5.1 Prohibition Against Assignment
(a) No benefit payable from the Plan to any Participant or Eligible
Survivor or any other person shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any
attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge
the same shall be void. No such benefit shall in any manner be liable for, or
subject to, the debts, contracts, liabilities, engagements, or torts of any such
person, nor shall it be subject to execution, attachment or any process whatsoever
for or against such person, except to such extent as may be permitted by Section
704.110 of the Code of Civil Procedure or as required by law.
(b) Nothing in this Plan shall prohibit a Participant or Eligible Survivor
from voluntarily agreeing to the assignment of benefits payable under this Plan.
Such assignment shall be in accordance with rules established by the Plan
Administrator and may be by payroll withholding or any other mechanism that is
approved by the Plan Administrator, at its sole discretion.
Article 5.2 Payment Upon Marital Dissolution or Legal Separation
The provisions of Article 5.1 will not apply in the case of any property
settlements upon marital (or registered domestic partner) dissolution or legal
separation which are made in accordance with a domestic relations order (DRO)
issued in accordance with state domestic relations law. The provisions of Article
5.1 will apply in the case of any property settlement upon marital (or registered
domestic partner) dissolution or legal separation which is made in accordance
with a domestic relations order that is not qualified in accordance with this
Article.
When the County is served with a domestic relations order involving a
Participant, the Plan Administrator shall:
(a) Notify the Participant (or Eligible Survivor) and the former spouse,
registered domestic partner or dependent covered by the domestic relations order
of the receipt of the order with a notice which explains the procedures for
determining the qualified status of domestic relations orders; and
(b) Under procedures established by the Plan Administrator, determine
the qualified status of the domestic relations order.
10
For purposes of this Article, “domestic relations order” means any judgment,
decree, or order made in accordance with state domestic relations law which
relates to the provision of child support, spousal maintenance, or marital property
rights of any spouse, former spouse, registered domestic partner, former
registered domestic partner, child, or other dependent of a Participant. A
domestic relations order shall not be considered a qualified DRO with respect to
this Plan if it is inconsistent with the Plan.
Article 6. Administration
Article 6.1 Powers of the Plan Administrator
The County shall administer the Plan, and in such capacity shall be the Plan
Administrator. In addition to the powers of the Plan Administrator specified
elsewhere in the Plan, the Plan Administrator shall be responsible for the general
administration and interpretation of the Plan and for carrying out its provisions,
and shall have such powers as may be necessary or appropriate to discharge its
duties hereunder, including, without limitation, the following:
(a) The Plan Administrator may adopt such Plan regulations,
interpretations and procedures as it deems are necessary or appropriate for the
effective operation of the Plan;
(b) The Plan Administrator shall have the right to delegate administrative
duties with regard to the management and operation of the Plan. No employee or
agent of the Plan Administrator shall have the authority to modify this Plan or to
make representations, warranties, or inducements that may provide benefits or any
other payment other than as set forth in this Plan and the applicable plan
regulations. Any such representations, warranties, or inducements shall be null
and void;
(c) The Plan Administrator shall act with respect to this Plan separately
and apart from any duties that he or she may have with respect to any other
retirement plan;
(d) The Plan Administrator shall determine all issues relating to the rights
of Participants and Eligible Survivors and any other persons, and any legal
representatives thereof, under the terms of the Plan, including but not limited to
eligibility, the amount and time of payment of the benefit (if any) and the
calculation of any benefit under the Plan;
(e) The Plan Administrator shall determine any factual questions arising
in connection with the Plan’s operation or administration after such investigation
or hearing as the Plan Administrator deems necessary or appropriate;
11
(f) The Plan Administrator may engage legal, administrative, actuarial,
investment, accounting, consulting or other services as the Plan Administrator
deems necessary or appropriate; and
(g) The Plan Administrator may request and receive from Districts,
Members and Participants and other appropriate persons such information as
necessary or appropriate for the proper administration of the Plan, including,
without limitation, information to determine each Participant’s eligibility to
participate in the Plan and the benefits payable to each Participant or his or her
Eligible Survivor.
Article 6.2 Absolute Discretion of the Administrator
The Plan Administrator (or any individual acting on its behalf) shall, in its sole
and absolute discretion, construe and interpret the terms and conditions of the
Plan and any issue arising out of, relating to, or resulting from the administration
and operation of the Plan, which interpretation or construction shall be final and
binding on all parties, including, without limitation, any District, Member,
Participant or Eligible Survivor. When making a determination or calculation, the
Plan Administrator shall, in its sole and absolute discretion, be entitled to rely
upon information furnished by CCCERA, Districts, Members, Participants and
Eligible Survivors or other individuals acting on their behalf.
Article 6.3 Costs of Administration
The costs of administration of the Plan shall be paid by the County and the
Districts. Such expenses shall include, but are not limited to, expenses for
professional, legal, accounting, and other services and other necessary or
appropriate costs of administration. No costs or expenses of administering this
Plan shall be paid, directly or indirectly, by CCCERA. Further, no assets of
CCCERA shall be used, directly or indirectly, to pay for benefits or
administration or any other costs (direct or indirect) of this Plan.
Article 6.4 Claims Review Procedure
Any person who has a claim for benefits under this Plan and who does not receive
such benefits must make a written claim for benefits with the Plan Administrator
at the time and in the form and manner determined by the Plan Administrator.
The Plan will not pay interest on benefits, and there will be no actuarial
adjustment of benefits, if the claim is made after the time specified by the Plan
Administrator. The Plan Administrator shall provide notice in writing to any
person whose claim for benefits under the Plan is denied, and the Plan
Administrator shall provide such person a review of its decision with respect to
such claim, if requested in writing by the person who had made the claim. The
decision of the Plan Administrator shall be final and binding on all parties.
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Article 6.5 Correction of Errors
If an error or omission is discovered in the administration of the Plan, the Plan
Administrator shall take such action as may be necessary or appropriate to correct
the error. Any overpayment of benefits from this plan shall be returned to the
Plan Administrator immediately on demand by the Plan Administrator with
interest as calculated by the Plan Administrator. The Plan Administrator may
take all necessary or appropriate action including but not limited to filing suit, to
recover overpayments of benefits under the Plan and interest thereon.
Overpayments and interest thereon may be set off against subsequent benefit
payments owed under the Plan. Additionally, any person who receives or holds
any overpayments shall hold such amounts plus interest thereon in trust for the
benefit of the Plan Administrator.
Article 6.6 Written Communications Mailed
All written notices or communications to Participants and Eligible Survivors and
any other person who may be entitled to benefits under this Plan shall be effective
when sent by first class United States mail to the individual’s last known address.
Any notice or document required to be given to or filed with the Plan
Administrator shall be properly given or filed if delivered or sent by first class
United States mail, postage prepaid, to the County’s Auditor-Controller.
Article 7 Source of Benefits
Article 7.1 Unfunded Plan
(a) The Plan shall be unfunded within the meaning of the federal tax laws.
Ownership of any assets, whether cash or other investments which might be used
to pay any amount under the Plan, shall at all times remain solely in the County or
in the Districts (with the County acting as their agent). Participants and Eligible
Survivors and any other persons who might be entitled to amounts under this Plan
shall not have any property interest, preferred claims, liens or any other beneficial
interest whatsoever in any assets of the County or the Districts, and shall have
only general creditor status with respect to the County and the Districts. Any
rights created under this Plan shall be mere unsecured contractual rights against
the County, or the District, by which the Participant was formerly employed.
(b) Benefits due under this Plan shall be paid by the County from its
general assets, which are subject to the claims of the County’s general creditors.
With respect to benefits due to former employees of the Districts (or their Eligible
Survivors), the County shall pay benefits from its general funds after receiving
money from the Districts to pay these benefits; any amounts received from a
District shall be held as general assets of the County, which are subject to the
claims of the County’s general creditors. The County shall also pay all costs,
charges and expenses relating to this Plan from the same asset sources. The
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County may require reimbursement from Districts for their proportionate share of
all costs, charges and expenses relating to the Plan.
Article 7.2 No Employee Deferrals
No employee contributions or deferrals shall be made or allowed under the Plan at
any time. In accordance with Section 415(m), no election to defer compensation
under this Plan shall be provided, at any time or in any manner, to any person.
Article 7.3 No use of CCCERA Assets
County and District assets used to provide benefits under this Plan shall not be
commingled with the monies of CCCERA or any other qualified plans, nor shall
this Plan ever receive or use any assets of CCCERA.
Article 8 Miscellaneous
Article 8.1 Applicable Law
This Plan shall be governed by the laws of the State of California and applicable
federal law.
Article 8.2 No Service Rights
Nothing in this Plan or in any resolution or regulation concerning this Plan shall
be construed as giving to a Participant any right to be retained in the service of the
County or any District.
Article 8.3 Benefit Limits
(a) Nothing in this Plan shall be construed as creating an entitlement to
any benefits greater than the difference between the amount of benefits that can
be paid by CCCERA without regard to the limitations of Section 415 and what
can be provided by CCCERA taking into account the limitations of Section 415.
(b) Payment of a benefit under this Plan does not create any eligibility for
any additional benefits provided by this Plan, by CCCERA or under any other
program maintained by the County or Districts.
Article 9 Amendment or Termination of Plan
Article 9.1 Right to Amend or Terminate
The County has the right to amend or terminate this Plan at any time and in any
manner for any reason whatsoever and may do so in its sole discretion.
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Article 9.2 No Vested Rights Created
No employee or retiree of the County or of a District shall have any vested right
to continuance of the Plan or to continuance of benefits thereunder. The County
reserves the right, without limitation, at any time to terminate or modify the Plan,
and such termination or modification shall supersede and override any claim to
“vested rights” that any person may otherwise have with respect to benefits under
this Plan.
Executed on this ___________ day of ______________ 2012 pursuant to
Resolution Number 2012/504 of the Board of Supervisors of the County of Contra
Costa adopted on December 11, 2012.
_______________________________________________
Chair of the Board of Supervisors of Contra Costa County