SEC. 16.55. ADDITIONAL CONTRIBUTIONS.

Any member, except persons who are members under Sections 8.540 and 8.565 of the Charter, may elect to contribute at rates in excess of those provided in this Article for the purpose of providing additional benefits, but the exercise of this privilege by a member shall not place on the City and County any additional financial obligation. The provisions of Section 16.54 of this Code shall apply also to additional contributions. The Retirement Board, upon application, shall furnish to such member information concerning the nature and amount of additional benefits to be provided by such additional contribution.

(Bill No. 1125, Ord. No. 4073(C.S.), Sec. 36)

(a) As used in Sections 16.55-1 to 16.55-4, inclusive, “public service” means:

(1) Service rendered as an employee or officer of an agency of the government of the United States, including both civilian and military service;

(2) Service rendered as an employee or officer of the State of California; and

(3) Service rendered as an employee or officer of a public agency in the State of California which, with respect to such service, maintained a locally administered defined benefit plan or was entitled to participate in the Public Employees’ Retirement System of the State of California under a contract between such public agency and the Public Employees’ Retirement System.

(b) For purposes of this Section 16.55-1, a person shall be considered as being in public service only while they were receiving compensation from the public agency of which they were an employee or officer.

(c) “Public service,” as used in this Section 16.55-1, does not include service as defined in subsections (a)(1), (2), or (3) with respect to which a person became a member of any other retirement system supported wholly or in part by public funds and with respect to which they continue to receive credit in such other system or with respect to which they are entitled to receive a retirement allowance under such other system.

(Added by Ord. 171-70, App. 5/28/70; amended by Ord. 308-08, File No. 080379, App. 12/16/2008; Ord. 104-23, File No. 230375, App. 6/2/2023, Eff. 7/3/2023)

Any member of the Retirement System under Sections A8.509, A8.584 or A8.587 of the Charter who was in public service prior to becoming a member of this Retirement System shall have the right to elect to make contributions pursuant to Section 16.55-3 of this Code and to receive credit in this system as miscellaneous City and County service for all or any part of the time they were in such public service; provided, that a member so electing must elect to receive credit for no less than six months of such public service or all of their public service where the total period of their public service is less than six months.

Said election shall be made in writing on a form provided by the Retirement System. Said election may be made at any time before the date the member files the application to retire or the effective date of their retirement, whichever is later.

The time period and amount of public service for which a member elects to contribute and the fact that they are not entitled to receive credit in another retirement system by virtue of such service must be certified to by an officer of the public agency to which they rendered such public service and by an officer of the retirement system of which they were a member with respect to such service, or must otherwise be established to the satisfaction of the Retirement Board.

(Added by Ord. 171-70, App. 5/28/70; amended by Ord. 308-08, File No. 080379, App. 12/16/2008; Ord. 104-23, File No. 230375, App. 6/2/2023, Eff. 7/3/2023)

Any member of the Retirement System under Sections A8.509, A8.584 and A8.587 of the Charter, who elects, pursuant to Section 16.55-2, to make contributions and receive credit as miscellaneous City and County service for all or any part of the time they were in public service, shall contribute to the Retirement Fund an amount equal to the product of:

(a) the monthly compensation earnable by said member on the date they make a lump sum payment to purchase the prior public service credit or deliver to the Retirement System a signed installment payment agreement to purchase the prior public service credit, multiplied by

(b) the normal cost percentage of the applicable miscellaneous plan as published in the most recent actuarial valuation adopted by the Retirement Board, multiplied by

(c) the number of months of prior public service being purchased.

(d) In addition, members who make payment by other than lump sum payment shall pay interest on the unpaid balance of the amount payable into the Retirement Fund under this Section, commencing on the date of the member’s election to make such contributions, at the rate of interest currently being used from time to time under the Retirement System.

Payment of the contributions required by this Section shall be made in a lump sum or by installment payments. Installment payments shall be made at times and in a manner fixed by the Retirement Board; provided, that the period for completion of such payments shall not exceed five years. All payments required by this Section must be received by the Retirement System before the date the member files the application to retire or the effective date of the member’s retirement, whichever is later.

Any member who elects to purchase credit for prior public service by installment payments may, at any time during the period for making such installment payments, complete the purchase by lump sum payment.

Except as prohibited by the Internal Revenue Service, any member who elects to purchase credit for prior public service by installment payments may, at any time prior to completion of payment for such purchase, revoke their election. Such revocation shall be in writing and shall be effective only if filed with the Retirement System. Upon such revocation of election, the member shall have the option to receive a refund of all of the contributions which they have made pursuant to such election or to receive credit for the prior public service purchased up to the date of the revocation. If said member elects to receive a refund, then they shall thereafter not have the right to elect to receive credit for the public service which was the subject of said revoked election.

All contributions made pursuant to this Section, and the interest thereon shall be considered to be and shall be administered as contributions of the member; provided that only the share of said contributions representing the member’s contributions, including interest, shall be considered when

calculating benefits payable pursuant to Sections A8.509(f), A8.584-6 and A8.587-6 of the Charter.

(Added by Ord. 171-70, App. 5/28/70; amended by Ord. 308-08, File No. 080379, App. 12/16/2008; Ord. 104-23, File No. 230375, App. 6/2/2023, Eff. 7/3/2023)

Upon completion of payment of contributions in the amount specified in Section 16.55-3, the member shall be credited with miscellaneous City and County service in the amount of public service for which they have elected to receive credit as miscellaneous City and County service pursuant to Section 16.55-2. The miscellaneous City and County service with which the member is so credited shall be credited as current service.

(Added by Ord. 171-70, App. 5/28/70; amended by Ord. 308-08, File No. 080379, App. 12/16/2008; Ord. 104-23, File No. 230375, App. 6/2/2023, Eff. 7/3/2023)

The Retirement Board shall adopt such rules and regulations as may be necessary and appropriate to carry out the provisions of Section 16.55-1 through 16.55-4, inclusive, of this Code.

(Added by Ord. 171-70, App. 5/28/70)

This Section shall extend the following rights in the Retirement System to members of any other public agency retirement system (hereinafter “reciprocal system”) which adopts similar reciprocal provisions in their retirement ordinances or plans pursuant to Sections 20042, 20043, 31840.2 and 45310.5 of the Government Code, and who by contract agree to extend the benefits thereof to the Retirement System; provided that such member enters employment and becomes a member under the Retirement System of the reciprocal system within six months of terminating their employment under such other reciprocal system or the Retirement System.

(a) Notwithstanding any provisions of the Retirement System or a reciprocal system plan in the matter of vesting, any member subject to Charter Sections 8.509, 8.559, 8.584, 8.585, 8.586 and 8.588 whose movement between systems occurs as herein specified shall have the right to elect to leave their accumulated contributions on deposit irrespective of the amount of such contributions or length of service. Interest on said accumulated contributions shall accrue at plan rates. If a member does not vest or qualify for a reciprocal benefit the member shall receive a refund of contributions plus interest.

(b) The average monthly salary during any period of service as a member of a reciprocal system shall be considered compensation earned or earnable by a member of the Retirement System for purposes of computing final average compensation for such member according to the applicable Charter provisions, provided the member retires concurrently under both systems and is credited with such period of service under one reciprocal system at the time of retirement.

(c) For the sole purpose of meeting minimum service qualifications for benefits and retirement allowances under the Retirement System, service shall also include service rendered as an officer or employee of a reciprocal system if the salary for such service constitutes compensation earned or earnable by a member of this system. For police and fire members of the Retirement System subject to Charter Sections 8.559, 8.585, 8.586 and 8.588, if Retirement System service is less than 25 years at the time of retirement, the member shall receive a pro rata portion of the benefit for 25 years of service.

Police and fire members of the Retirement System subject to Charter Sections 8.559, 8.585, 8.586 and 8.588, with 25 or more years of service credit with the Retirement System, shall receive benefits based on Retirement System service only as defined by Charter Sections 8.559, 8.585, 8.586 and 8.588.

(d) Any retirement or death allowance payable to or on account of a police or fire member of the Retirement System subject to Charter Sections 8.559 and 8.585 shall be adjusted in accordance with the provisions of Charter Sections 8.559-6 and 8.585-6, provided that any increase or decrease shall be related to the rank or position that said member held for at least one year immediately prior to terminating City service and provided further that if the member's accrued service credit is less than 25 years, the Charter Section 8.559-6 and 8.585-6 adjustments will be multiplied by a fraction where the denominator is 25 and the numerator is equal to the member's accrued service credit at the date of termination of City service.

(e) A member shall be retired for disability and receive a retirement allowance based on the service credited to the member at the time of retirement during any period in which they receive a disability retirement allowance under a reciprocal system; provided, that such allowance shall not exceed an amount which when added to the allowance paid under the reciprocal system equals the allowance which would be paid for a non-service connected disability if all the member’s service had been credited under the reciprocal system; and provided further, that such allowance shall in no event be less than an annuity which is the actuarial equivalent of the member’s contributions, whether or not the disability is for service connected reasons. The minimum allowance provisions of the City Charter will not be applied if the member has less than 10 years of credited service under the Retirement System. In such a case, the disability allowance paid by the Retirement System shall be based on San Francisco service only.

(f) The death benefit for a member who dies from non-industrial causes as a member of a reciprocal system shall not exceed an amount which when added to the death benefit paid for such member under the reciprocal system equals the death benefit payable under that system had all reciprocal service been rendered under that system; provided, however, that such death benefit shall be at least the amount of the member's accumulated contributions in the Retirement System. If death is caused by industrial injury or disease in the reciprocal system, the death benefit shall be the amount of the member's accumulated contributions in the Retirement System. For a member of the Retirement System who dies from nonindustrial causes, the minimum allowance provisions will not be applied if the member needs service rendered in a reciprocal system to meet minimum service qualification for a survivor allowance. In such a case, the allowance paid by the Retirement System shall be based on San Francisco service only.

(g) The Retirement Board shall on the request of a reciprocal system supply information and data necessary for administration of such system as it is affected by membership in and service credited under the Retirement System.

(h) Interpretation of this Section shall be made consistent with the City Charter and with reference to interpretations that have been made relative to the reciprocal benefit provisions of the Public Employees' Retirement System and 1937 County Employees' Retirement Act upon which this Section is based and which this Section is intended to implement. This Section shall not apply to members who transfer solely within the Retirement System between miscellaneous, police and fire plans.

(i) These provisions shall apply only to a member whose termination and entry into employment resulting in a change in membership from the Retirement System to such other reciprocal system or from such other reciprocal system to the Retirement System occurred after such acceptance by

the Board of Supervisors or after the effective date specified in the agreement; provided, however, that provisions relating to computation of final compensation shall apply to any other member if such provision would have applied had the termination and entry into employment occurred after such acceptance or determination by a system's governing board.

(j) Reciprocal rights under this Section shall be modified as necessary to conform to amendments to the Public Employees' Retirement Law or the County Employees' Retirement Law of 1937 as provided in Government Code Section 20042.

(Added by Ord. 275-88, App. 6/29/88; amended by Ord. 371-90, App. 11/13/90; Ord. 104-23, File No. 230375, App. 6/2/2023, Eff. 7/3/2023)

(a) When Internal Reciprocity Applies. Subject to the provisions of Charter Section 8.500-1, including but not limited to the effective dates therein, when a person ceases to be a member of the Retirement System under Charter Section 8.509, 8.559, 8.584, 8.585, 8.586 or 8.588, or is granted a leave of absence to work in another city position, and then within six months, again becomes a member of the Retirement System under a different set of Charter provisions, this section shall allow such member to receive reciprocal benefits within the Retirement System if the member retires concurrently under all benefit provisions.

(b) Summary of Internal Reciprocity. Reciprocal benefits within the Retirement System shall mean that: (1) all service credit earned within the Retirement System shall be used for qualification purposes, (2) final compensation shall include compensation earned while a member under any set of Charter provisions and (3) pension benefit calculations shall be prorated based on service credit earned and determined according to the provisions and percentages specified under each set of Charter sections.

(c) Procedures. Notwithstanding any provisions of the Retirement System concerning vesting, on and after April 1, 1993, any member whose movement between different sets of Charter provisions occurs as specified in Paragraph (a), shall have the right to elect on the form specified by the Retirement System to leave their accumulated contributions on deposit irrespective of the amount of such contributions or the length of service. Interest on said accumulated contributions shall continue to accrue at plan rates. If the member does not qualify for reciprocal benefits or vest, the member shall receive a refund of contributions plus interest.

Members of the retirement system on and after April 1, 1993, who received refunds of pension contributions prior to April 1, 1993 for periods of membership that would otherwise qualify for reciprocity benefits within the Retirement System, may redeposit those contributions plus interest at plan rates at any time before death or retirement, whichever occurs first, and qualify for reciprocity within the Retirement System.

Members of the Retirement System on and after April 1, 1993, who had periods of City employment prior to becoming members of the Retirement System that would otherwise qualify for reciprocity benefits within the Retirement System, may receive service credit by paying member contributions plus interest at plan rates based on the compensation received during those periods of employment at any time before death or retirement, whichever occurs first, and qualify for reciprocity within the Retirement System.

(d) Final Compensation. Average final compensation shall be based on all compensation earned or earnable by a member during any period of membership under the Retirement System, provided that the member is credited with such period of service at the time of retirement and provided

further that pension benefit calculations shall be prorated based on service credit earned and determined according to the provisions, including, but not limited to the final compensation provisions, and percentages specified under each set of Charter provisions.

(e) Qualification Purposes. For the sole purpose of meeting minimum service qualifications for benefits and retirement allowances under the Retirement System, service shall include any service credit earned under the Charter provisions of the Retirement System as described in Paragraph (a) above.

For police and fire members of the Retirement System, if service credit as defined by Charter Sections 8.559-10, 8.585-10, 8.586-10 and 8.588-10 is less than 25 years at the time of retirement, the member shall receive a pro rata portion of the benefit for 25 years of service. Police and fire members of the Retirement System with 25 or more years of service credit with the Retirement System, shall receive police and fire benefits based only on the portion of Retirement System service credit defined by Charter Sections 8.559-10, 8.585-10, 8.586-10 and 8.588-10; they shall receive miscellaneous retirement benefits based only on the portion of Retirement System service credit earned under Charter Sections 8.509 and 8.584.

(f) Cost-of-Living Adjustments. Cost-of-living adjustments for any retirement or death allowance shall be prorated based on the member's accrued service credit under Charter Sections 8.509, 8.559, 8.584, 8.585, 8.586 or 8.588.

Any retirement or death allowance payable to or on account of a police or fire member of the Retirement System subject to Charter Sections 8.559 and 8.585 shall be adjusted in accordance with the provisions of Charter Section 8.559-6 and 8.585-6, provided that any increase or decrease shall be related to the rank or position that said member held for at least one year immediately prior to terminating police or fire service and provided further that if the member's accrued service credit under Charter Section 8.559-10 or 8.585-10 is less than 25 years, the Charter Section 8.559-6 and 8.585-6 adjustments will be multiplied by a fraction where the denominator is 25 and the numerator is equal to the member's accrued service credit under Charter Section 8.559-10 or 8.585-10.

(g) Disability Benefits. When a member is retired for disability, they shall receive a disability retirement allowance based on all service credit earned in the retirement system provided that the disability allowance allowed under any earlier set of Charter provisions shall not exceed an amount which when added to the allowance provided under the current set of Charter provisions equals the allowance which would be paid for a nonservice connected disability if all the member’s service had been credited under the set of Charter provisions in which the member was last active prior to the effective date of their disability retirement. If a member is retired for a service connected disability under Charter Sections 8.559, 8.585, 8.586 or 8.588, then they will be entitled to an additional refund or vesting benefit under the provisions of Charter Sections 8.509 or 8.584.

er’s service had been credited under the set of Charter provisions in which the member was last active prior to the effective date of their disability retirement. If a member is retired for a service connected disability under Charter Sections 8.559, 8.585, 8.586 or 8.588, then they will be entitled to an additional refund or vesting benefit under the provisions of Charter Sections 8.509 or 8.584.

(h) Death Benefits. If an active member, under Charter Sections 8.559, 8.585, 8.586 or 8.588, dies by reason of an industrial injury or illness, then the death benefit may include the refund of the member's accumulated contributions in the Retirement System relating to service credit under Charter Sections 8.509 and 8.584. In all other death cases, the death benefit shall not exceed an amount which equals the death benefit payable had all reciprocal service been rendered under the plan in which the member was active immediately before the time they died.

(i) Interpretation Consistent With PERS. Interpretation of this section shall be made consistent with the Charter Section 8.500-1 and with reference to interpretations that have been made relative to the reciprocal benefit provisions of the Public Employees' Retirement System and The 1937 County Employees' Retirement Act. This section shall apply to members who transfer solely within the Retirement System as described in Paragraph (a) above.

(j) Concurrent Accrual of Benefits Prohibited. With the exception of adult hourly credits, members shall not accrue pension benefits concurrently under Charter Section 8.509, 8.559, 8.584, 8.585, 8.586 or 8.588. For internal reciprocity purposes, a person shall be deemed to be an active member under only the set of Charter provisions as determined by their pension contributions at the time of any particular pension event.

(Added by Ord. 231-93, App. 7/22/93; Ord. 104-23, File No. 230375, App. 6/2/2023, Eff. 7/3/2023)

SEC. 16.56. WITHDRAWAL OF ACCUMULATED ADDITIONAL CONTRIBUTIONS MADE PURSUANT TO SECTION 16.55-5.

Any person who is a member of the San Francisco City and County Employees' Retirement System and has made additional contributions pursuant to Administrative Code Section 16.55 shall have the right to elect, in writing on a form furnished by the system and to be filed at the office of said system, to withdraw forthwith all or any part of his accumulated additional contributions and to receive repayment in a lump sum; provided, however, that the right of withdrawal of said funds shall be limited to not more than three in number during said employee's tenure of employment in the City and County service and membership in the Retirement System.

(Amended by Ord. 226-66, App. 9/1/66)

SEC. 16.61-1. IMPLEMENTATION OF INTERNAL REVENUE CODE SECTION 414(h)(2).

(a) The purpose of this section is to implement the provisions contained in Section 414(h)(2) of the Internal Revenue Code of the United States concerning the tax treatment of employee contributions paid by the City and County on behalf of affected employees and to adopt the limitations set forth in Sections 401(a) and 415 of the Internal Revenue Code.

Pursuant to Section 414(h)(2) contributions to a pension plan, although designated under the plan as employee contributions, when paid by the employer in lieu of contributions by the employee, under circumstances in which the employee does not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer, may be excluded from the gross income of the employee until these amounts are distributed or made available to the employee.

(b) Notwithstanding any other provisions to the contrary, the City and County may pick up, for the sole and limited purpose of deferring taxes as authorized by Section 414(h)(2) of the Internal Revenue Code [26 U.S.C.A. 414(h)(2)] and Section 17501 of the California Revenue and Taxation Code, all or a portion of the contributions required to be paid by a member of the Retirement System. Nothing herein shall be construed to mean that any contributions so picked up by the City are to be treated as City contributions for any purpose other than the sole and limited purpose specified herein. No pickup shall be made pursuant to this section except upon a determination by the Controller as required by subsection (e) below.

The provisions of this Section shall be administered on a bargaining unit basis and shall be subject to any applicable meet and confer laws.

Any appropriate representation unit recognized by the City and County, by and through the employee organization certified to represent it, may opt out of the provisions of this Section by meeting and conferring with the City and County's Employee Relations Division for a memorandum of understanding to so provide. In the event such agreement is reached, contributions of the employees involved shall be treated for all purposes in the same manner and to the same extent as members' contributions made prior to the operative date of this Section.

A memorandum of understanding arrived at under this subsection shall continue in effect from year to year, subject to termination by notice by the employee organization which had negotiated the memorandum of understanding, served not less than ninety days prior to the proposed date of termination.

(c) No member shall have the option of choosing to receive directly the contributions picked up by the City and County instead of having such amounts paid to the Retirement System.

(d) The contributions picked up by the City and County shall be treated for all purposes, other than taxation, in the same manner and to the same extent as members' contributions made prior to the operative date of this section.

(e) This section shall be operative only so long as the City and County's pickup of employee contributions continues to be excludable from the gross income of members under the provisions of Internal Revenue Code Section 414(h)(2).

The City and County shall retain the authority periodically to increase, reduce or eliminate, subject to meet and confer where legally appropriate, the pickup by the City and County of all or a portion of the contributions required to be paid by a member of the Retirement System, as authorized by Section 414(h)(2), Internal Revenue Code.

(f) The employer pickup shall work as follows:

1. General Rule-Full Pickup. All employee contributions required under the Retirement System for amounts earned on and after an effective date to be specified by the Controller ("the Effective Date") shall be paid by the respective member's employer in lieu of contributions by the member. The member shall have no right to alter the amount of such contribution, nor shall the member have the right to receive directly the contributed amounts instead of having the employer pay them to the Retirement System.

2. Exception-Reduced Pickup.

a. Employer Contribution. A member may elect as specified below to have his or her employer contribute in lieu of the employee's contribution, the amount of the reduced rate of contributions specified in Charter Section 8.514(a), effective for amounts earned on and after the Effective Date. The member shall have no right to alter the amount of such employer contribution on his or her behalf, nor shall the member have the right to receive directly the contributed amounts instead of having the employer pay them to the Retirement System.

b. Right of Further Employee Contribution. The member shall continue to have the right to make further contributions as specified in Charter Section 8.514(a) so that the total contributed on his or her behalf by (i) the member's employer and (ii) the member equals the total employee contribution otherwise required under the Retirement System.

c. Timely Election of Reduced Pickup. In order to qualify for the reduced pickup, the member must complete the Retirement System's form electing the reduced pickup and then timely file such form with the Retirement System.

(i) The Controller shall specify an election period which shall begin on an Election Date and end on a Cutoff Date. The Cutoff Date shall be prior to the Effective Date. For members who are earning compensation subject to Retirement System contributions on the Election Date, the election form must be filed with the Retirement System no later than the Cutoff Date. The election shall become effective for earnings on and after the Effective Date.

riod which shall begin on an Election Date and end on a Cutoff Date. The Cutoff Date shall be prior to the Effective Date. For members who are earning compensation subject to Retirement System contributions on the Election Date, the election form must be filed with the Retirement System no later than the Cutoff Date. The election shall become effective for earnings on and after the Effective Date.

(ii) For members who are not earning compensation subject to Retirement System contributions on the Election Date, but who do so at some time after that date, the election form must be filed with the Retirement System on the first day after the Election Date that the member earns such compensation. The election shall become effective for earnings on and after the later of (i) the Effective Date or (ii) the date that the employee files the election with the Retirement System.

3. Irrevocability.

a. Members Electing Full Pickup. All members who did not timely file the election specifying the reduced pickup shall have the further contribution picked up and shall have no further opportunity to elect the reduced pickup.

b. Members Electing Reduced Pickup. All members who timely filed the election specifying the reduced pickup shall have only the reduced rate contribution picked up and shall have no further opportunity to elect the full pickup.

4. Exception: Employees Covered by Certain Memoranda of Understanding.

a. Coverage Under a Memorandum of Understanding Specifying Pickup Treatment. If a duly certified bargaining unit enters into a memorandum of understanding with the employer that specifies that employees covered by the memorandum of understanding who are members of the Retirement System will have (i) the full pickup, or (ii) no pickup, then all members so covered shall be treated as described in that memorandum of understanding for as long as they are covered by it.

b. Cessation of Coverage Under a Memorandum of Understanding Specifying Pickup Treatment. If a member ceases to be covered by a memorandum of understanding with the employer specifying how covered employees will be treated with respect to the pickup, then:

(i) If the member had not previously had the opportunity to elect the reduced pickup, the member shall be offered such election on the first day on which the member earns compensation subject to Retirement System contributions following cessation of coverage under the memorandum of understanding.

(ii) If the member previously had the opportunity to choose the reduced pickup, then the member's pickup shall again be treated as it was prior to coverage under the memorandum of understanding.

5. Employees Not Covered by Social Security. The Controller may specify different Effective Dates for employees covered by Social Security and for employees not covered by Social Security. Those not covered by Social Security will not be offered the reduced pickup election.

(Added by Ord. 349-89, App. 10/10/89; amended by Ord. 37-90, App. 1/30/90)

SEC. 16.61-2. ADOPTION OF INTERNAL REVENUE CODE SECTION 415 LIMITATIONS.

(a) Notwithstanding any other provision of the Charter or Administrative Code to the contrary, the benefits payable by the Retirement System to any person who becomes a member of the Retirement System on or after January 1, 1990, shall be subject to the limitations set forth in Section 415 of the Internal Revenue Code.

(b) The benefits payable to any person who became a member of the Retirement System prior to January 1, 1990, shall be determined by the vested rights rule and shall be subject to the greater of the following limitations as provided in Section 415(b)(10) of the Internal Revenue Code:

(1) The limitations set forth in Section 415 of the Internal Revenue Code.

(2) The accrued benefit formula of a member under the Retirement System (determined without regard to any amendment to the benefit formula made after October 14, 1987).

(c) This subsection shall be operable only so long and to the extent necessary for the Retirement System to maintain qualified status under the Internal Revenue Code.

(Added by Ord. 349-89, App. 10/10/89)

SEC. 16.61-3. ADOPTION OF INTERNAL REVENUE CODE SECTION 401 LIMITATIONS.

Notwithstanding any other provision of the Charter or Administrative Code, any benefits payable on account of any member of the Retirement System shall be subject to the limitations set forth in Section 401(a) of the Internal Revenue Code.

The total benefits payable on account of any member of the Retirement System shall also be determined by the vested rights rule. Any reduction in benefits payable because of Section 401(a) limitations shall be made up by payments from a trust fund maintained and funded by the City and County. The administration and accounting for this fund shall be carried out by Retirement System staff.

(Added by Ord. 349-89, App. 10/10/89)