§ 24.1603 — Benefit

§24.1603 Benefit

(a) The benefit under this Plan shall be the difference between the benefit that would be payable to the Member under the Retirement System, if it were not reduced by Section 415 of the Code, and the benefit actually payable to the Member, as reduced by Section 415 of the Code. (b) Appropriate adjustments in accordance with Section 415 of the Code and the regulations thereunder shall be made in determining the benefit both reduced and unreduced in regard to Section 415 of the Code, including but not limited to taking into account the form of the benefit payable. (c) Any amount payable to a Member or beneficiary pursuant to this Plan shall be paid in the same form of benefit, at the same times and for the same period as benefits are paid to the Member or beneficiary under the Retirement System. (d) The benefits for Deferred Option Retirement Plan (“DROP”) participants are not impacted by the limits of Section 415 of the Code until the member terminates employment at the end of the member’s DROP participation period. To the extent possible, and with respect to DROP benefits from set forth in Division 14 of the San Diego Municipal Code, the Board shall arrange for any DROP benefits to be paid from the Retirement System and not from this Plan. (e) The City and Unified Port District shall make appropriate arrangements to deduct from all amounts paid under this Plan any taxes required to be withheld with respect to this Plan by any government or governmental agency. To the extent any payroll taxes (including FICA taxes) are due on benefits paid under this Plan, the City and Unified Port District shall: (1) pay such taxes due, if any, from the employer; (2) collect such taxes due, if any, from the participant or beneficiary by withholding the taxes from payments otherwise due under this Plan; and (3) take all reasonable steps to reduce such taxes.

(Added 3–19–2001 by O–18930 N.S.)