2006 New York Code - Excess Benefit Plan.

 
    §  13-267.1  Excess  benefit  plan.  a.  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:
    (1) "Retirement benefits" shall mean benefits payable to a beneficiary
  by  the pension fund or a variable supplements fund established pursuant
  to subchapter three or four of this chapter which  are  subject  to  the
  limitations imposed by section 415(b) of the Internal Revenue Code.
    (2)  "Beneficiary"  shall  mean  a  person who is receiving retirement
  benefits from the pension fund.
    (3)  "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.
    (4) "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 d and e of this section.
    (5)  "Replacement  benefits"  shall  mean  the benefits payable by the
  excess benefit plan to an eligible participant as determined pursuant to
  subdivision e of this section.
    (6) "Internal Revenue Code" shall mean the  Federal  Internal  Revenue
  Code of 1986, as amended.
    (7)  "Plan year" shall mean the limitation year of the pension fund as
  provided in section six hundred twenty  of  the  retirement  and  social
  security law.
    b.  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 pension fund.
    c. 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 f 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
  pension  fund,  provided, however, that the assets of the excess benefit
  fund may be invested with the other pension fund assets, but such excess
  benefit fund assets shall be accounted for  separately  from  the  other
  pension fund assets.
    d. All beneficiaries of the pension fund 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 pension fund  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.
    e.  (1)  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 pension fund for that plan year.
    (2) 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.
    f. (1) 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.
    (2) Such required employer contributions shall be paid into the excess
  benefit fund from an allocation of  the  employer  contribution  amounts
  paid  pursuant to section 13-228 of this subchapter 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.
    (3) 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.
    g. 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  pension
  fund.
    h.  Nothing  contained  in  this section shall be construed to mean or
  imply that variable supplements payments  from  a  variable  supplements
  fund  established  pursuant  to subchapter three or four of this chapter
  constitute pension or retirement allowance payments, or  that  any  such
  variable  supplements fund constitutes a pension or retirement system or
  fund.
    i. 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 subchapter three or  four  of  this
  chapter.