2006 New York Code - Excess Benefit Plan.

 
    §  13-196  Excess  benefit  plan.  1.  As  used  in  this section, the
  following words and phrases shall have the following meanings, unless  a
  different meaning is plainly required by the context:
    (a) "Retirement benefits" shall mean benefits payable to a beneficiary
  by  the  retirement  system  or  a variable supplements fund established
  pursuant to this chapter which are subject to the limitations imposed by
  section 415(b) of the Internal Revenue Code.
    (b) "Beneficiary" shall mean a  person  who  is  receiving  retirement
  benefits from the retirement system.
    (c)   "Excess  benefit  plan"  shall  mean  the  excess  benefit  plan
  established by this section for the sole purpose of paying  benefits  as
  permitted under section 415(m) of the Internal Revenue Code.
    (d) "Eligible participant" shall mean a beneficiary who is entitled to
  replacement  benefits  from  the  excess benefit plan for a plan year in
  accordance with subdivisions four and five of this section.
    (e) "Replacement benefits" shall mean  the  benefits  payable  by  the
  excess benefit plan to an eligible participant as determined pursuant to
  subdivision five of this section.
    (f)  "Internal  Revenue  Code" shall mean the Federal Internal Revenue
  Code of 1986, as amended.
    (g) "Plan year" shall mean  the  limitation  year  of  the  retirement
  system  as  provided in section six hundred twenty of the retirement and
  social security law.
    2. There is hereby  established  an  excess  benefit  plan,  the  sole
  purpose  of which shall be to provide replacement benefits, as permitted
  by section 415(m) of the Internal Revenue Code, to  beneficiaries  whose
  annual  retirement  benefits  have  been  reduced  because such benefits
  exceed the limitations imposed by section 415(b) of the Internal Revenue
  Code. The excess benefit plan shall be  administered  by  the  board  of
  trustees of the retirement system.
    3.  There  is  hereby  established  a  fund  to be known as the excess
  benefit fund which shall be maintained for the sole purpose of providing
  replacement benefits to eligible participants in the excess benefit plan
  established by this section, as permitted under section  415(m)  of  the
  Internal  Revenue  Code.  Such  fund  shall  consist  of  such  employer
  contributions as shall be made thereto pursuant to  subdivision  six  of
  this  section.  Such  contributions  to the excess benefit fund shall be
  held separate and apart from the assets held by the other funds  of  the
  retirement  system,  provided,  however,  that  the assets of the excess
  benefit fund may be invested with the other  retirement  system  assets,
  but  such  excess  benefit fund assets shall be accounted for separately
  from the other retirement system assets.
    4.  All  beneficiaries  of  the  retirement  system  whose  retirement
  benefits  for a plan year are being reduced because of section 415(b) of
  the Internal Revenue Code shall be eligible participants in  the  excess
  benefit  plan  for  that  plan year. Participation in the excess benefit
  plan shall be determined for each  plan  year.  No  beneficiary  of  the
  retirement system shall be an eligible participant in the excess benefit
  plan  for any plan year for which his or her retirement benefits are not
  reduced because of section 415(b) of the Internal Revenue Code.
    5. (a) For each plan year  in  which  a  beneficiary  is  an  eligible
  participant  in the excess benefit plan, such eligible participant shall
  receive replacement benefits from the excess benefit plan equal  to  the
  difference  between the full amount of the retirement benefits otherwise
  payable to the eligible participant for that  plan  year  prior  to  any
  reduction  because  of  section 415(b) of the Internal Revenue Code, and
  the retirement benefits payable to the  eligible  participant  for  that
  plan  year  as reduced because of section 415(b) of the Internal Revenue


  Code. No replacement benefits for any plan year shall be  paid  pursuant
  to  this  subdivision to any beneficiary who is not receiving retirement
  benefits from the retirement system for that plan year.
    (b) Replacement benefits pursuant to this section shall be paid at the
  same  time  and  in the same manner as the retirement benefits which are
  being replaced. At no time shall an eligible  participant  be  permitted
  directly  or  indirectly  to defer compensation under the excess benefit
  plan.
    6. (a) The required employer contributions to the excess benefit  fund
  for  each  plan  year  shall be an amount, as determined by the actuary,
  which is necessary to pay the total amount of replacement benefits  that
  are  payable  pursuant to this section to eligible participants for that
  plan year.
    (b) Such required employer contributions shall be paid into the excess
  benefit fund from an allocation of  the  employer  contribution  amounts
  paid by the city and other public employers pursuant to sections 13-127,
  13-130  and  13-131  of  this chapter and other applicable provisions of
  law. Such allocation of employer contribution amounts shall be paid into
  the excess benefit fund at such times and in such amounts as  determined
  by the actuary.
    (c) The benefit liabilities of the excess benefit plan shall be funded
  on  a plan year to plan year basis, provided, however, that any employer
  contributions to the  excess  benefit  fund,  including  any  investment
  earnings  on  such  contributions, which are not used to pay replacement
  benefits for the current plan year shall  be  used  to  pay  replacement
  benefits for future plan years.
    7.  The  right  of  an  eligible  participant  to  receive replacement
  benefits pursuant to this section, and the replacement benefits received
  pursuant to this section, shall be exempt from any  state  or  municipal
  tax,  and  shall not be subject to execution, garnishment, attachment or
  any other process whatsoever,  and  shall  be  unassignable,  except  as
  otherwise  specifically  provided for benefits payable by the retirement
  system.
    8. Nothing contained in this section shall be  construed  to  mean  or
  imply  that  variable  supplements  payments from a variable supplements
  fund  established  pursuant  to  this  chapter  constitute  pension   or
  retirement  allowance  payments,  or  that any such variable supplements
  fund constitutes a pension or retirement system or fund.
    9. Nothing contained in this section shall be construed  as  affecting
  in  any  way  the  eligibility  of  any  person for variable supplements
  pursuant to applicable provisions of this chapter.