§ 13-26. Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Actuarial Equivalence or Actuarially Equivalent means that any benefit payable under the terms of this Plan in a form other than the normal form of benefit shall have the same actuarial present value on the date payment commences as the normal form of benefit.

(1)

For purposes of establishing the actuarial present value of any form of payment other than a lump sum distribution, commencing on or after January 1, 1984, all future payments shall be discounted for interest and mortality by using seven percent interest and the UP-1984 Mortality Table, with ages set ahead five years in the case of disability retirees.

(2)

In the case of a lump sum distribution made on or after January 1, 1984, the actuarial present value shall be determined on the basis of the same mortality rates as described in subsection (1) of this definition and the Pension Benefits Guaranty Corporation's lump sum interest rates for private sector plans (historic lump sum rates), which rates are in effect:

a.

90 days prior to the Participant's date of termination if distribution is made within six months of such date of termination; or

b.

90 days prior to the distribution date if distribution is made later than six months after the Participant's date of termination.

(3)

Subsection (2) above shall apply only to Participants hired on or before January 29, 1985. Participants hired after January 29, 1985 shall not be entitled to a lump sum retirement benefit unless the lump sum payment is $5,000.00 or less.

Bal Harbour Village Employees' Pension Plan and Trust means the Plan and Trust as set forth in this article and any amendments to this article.

Beneficiary means any Person or legal representative entitled to receive payment of any benefit on the death of a Participant or former Participant.

Compensation means the base pay paid by the Village to the employee for services rendered. Compensation shall include payments made by the Village to an employee on account of sickness, illness, incapacity (including short-term disability), vacation and holiday time accrued under a formal program adopted by the Village. Compensation shall not include any severance or settlement payments which might be made at termination of employment. Compensation shall not include overtime pay, shift differentials, bonuses, or other extra benefits such as payments by the Village for group insurance, hospitalization and like benefits. The annual Compensation of each employee taken into account under the Plan for any year shall not exceed the amount allowed by Internal Revenue Code, section 401(a)(17).

Continuous Employment means the most recent period of uninterrupted employment during which an employee has been continuously employed by the Village. Such period shall include any leave of absence for a period not exceeding two years, or for a period otherwise provided hereunder or by law, granted by the Village on a uniform and nondiscriminatory basis for education purposes, job training programs or health, and any period of absence in connection with military service during which the employee's reemployment rights are protected by law; provided the employee returns to the employment of the Village on or prior to the expiration date of such leave of absence or after separation from military service as provided by law. The period of employment shall be extended for sickness, illness, incapacity (including short-term disability), vacation and holiday time accrued under a formal program adopted by the Village. The period of time shall not be extended for severance and settlement time. An employee who does not return to the employment of the Village within the stated period shall be considered to have terminated employment as of the date of commencement of such leave. An employee whose employment by the Village has been otherwise severed and who is later reemployed shall be deemed to be a new employee as of the date of his reemployment; provided that an employee may opt to leave his or her contributions in the trust for up to five years in anticipation of reemployment. In the event that the employee is reemployed within the five-year period, the prior continuous service shall be credited, (not including the period of separation) as it applies to any benefit under this plan.

Dates.

(1)

Effective Date of the Original Pension Trust Agreement means October 1, 1955.

(2)

Anniversary Date means the anniversary of the effective date in each subsequent year.

(3)

Entry Date means the Anniversary Date as of which an employee shall become a Participant.

(4)

Amended Plan Effective Date means September 19, 1989 the date as of which this article becomes effective.

(5)

Plan Year means the 12-month period from October 1 through September 30.

Dual Service Employee means a former Employee who:

(1)

Subsequently became a participant in the Bal Harbour Village Police Officers' Pension Plan and Trust (as defined in Section 13-40), with no interruption in employment with the Village;

(2)

Has less than six years Continuous Employment hereunder; and.

(3)

Has no right to any benefit hereunder, except a return of contributions in accordance with subsection 13-31(c)(1), which had not been exercised.

Employee means any Person other than a Police Officer who is employed by the Village as a regular, full-time employee in a normal employer-employee relationship.

Final Average Compensation means the monthly equivalent of the arithmetic average of the highest 36 consecutive months of Compensation out of the last ten years immediately prior to a Participant's date of retirement or termination.

Fund means the trust fund established in this article as part of the Plan and from which benefits will be paid to Participants and Beneficiaries.

Participant means any employee who is eligible to participate under this trust and whose application for participation has been accepted by the Retirement Board. Participant shall not include any employee with respect to whom a distribution shall have been made or whose benefits under the trust shall have been terminated under the provisions of the trust and who has not reentered the employment of the Village, nor any employee who shall have been retired under this article.

Plan means the Village pension plan as contained in this article, and all amendments thereto.

Qualified Military Service means any service in the uniformed service (as defined in Chapter 43 of Title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service (Section 414(u)(5) of the Internal Revenue Code).

Retirement Board means the board of trustees as appointed by the Village Council and any successor trustees, as constituted under the provisions of section 13-34 and as vested with the responsibilities and powers described therein.

Spouse means the legally wedded Spouse of the employee Participant at the time of the employee Participant's death.

USERRA means Uniformed Services Employment and Reemployment Rights Act (P.L. 103-353).

Village means Bal Harbour Village, or any municipal organization which shall assume the obligations of this Plan and trust as provided in this article with respect to its employees.

(Code 1974, § 13-16; Ord. No. 337, § 1(13-3), 9-19-89; Ord. No. 363, § 1, 7-16-91; Ord. No. 447, § 1, 11-16-99; Ord. No. 493, § 2, 11-16-04; Ord. No. 582, § 2, 7-21-15)