(a) Limitation of benefits. The accrued benefit paid to a participant under this plan when expressed as an annual benefit may not exceed $160,000.00, as adjusted by the Commissioner of Internal Revenue for any limitation year. The limitation year is the calendar year. If the payment of benefits begins before age 62, the accrued benefit may not exceed the actuarial equivalent of $160,000.00 limit, as adjusted. If payment commences after age 65, it may not exceed the actuarial equivalent of an annual benefit of $160,000.00 beginning at age 65. Regardless of a participant's average compensation, an accrued benefit of not more than $1,000.00 multiplied by the number of complete years of credited service, up to a maximum benefit of $10,000.00, under this and all other defined benefit plans of the city will not violate this section if the participant has not participated in any defined contribution plan maintained by the City.

Except as provided below, a benefit payable in a form other than a straight life annuity must be adjusted to an actuarial equivalent straight life annuity before applying the limitations of this section. For limitation years beginning before January 1, 1995, such actuarial equivalent straight life annuity is equal to the annuity benefit computed using a five percent interest rate and the mortality table specified in the plan for adjusting benefits in the same form. For limitation years beginning after December 31, 1994, the actuarially equivalent straight life annuity is equal to the greater of (i) the annuity benefit computed using the interest rate and mortality table specified in the plan for adjusting benefits in the same form and (ii) the annuity benefit computed using the interest rate specified in the plan for adjusting benefits in the same form and the mortality table prescribed by the Secretary of the Treasury based on the Commissioner of Internal Revenue Service's Standard Table used to determine reserves for group annuity contracts issued on the date as of which present value is being determined. No actuarial adjustment to the benefit is required for the value of a qualified joint and survivor annuity, benefits that are not directly related to retirement benefits (such as the qualified disability benefit, pre-retirement death benefits, and post-retirement medical benefits, if any), and the value of post-retirement cost-of-living increases made in accordance with code section 415(d) and section 1.415-3(c)(2)(iii) of the income tax regulations.

The annual benefit limitation beginning prior to age 62 shall be determined as the lesser of the equivalent annual benefit computed using the interest rate and mortality table (or other tabular factor) specified in the plan for purposes of determining actuarial equivalence for early retirement benefits, and the equivalent annual benefit computed using the mortality table prescribed by the Secretary of the Treasury based on the Commissioner of Internal Revenue Service's Standard Table used to determine reserves for group annuity contracts issued on the date as of which present value is being determined.

Effective January 1, 1987, the maximum benefit dollar amount will be multiplied by a fraction, the numerator of which is the length of a participant's years of plan participation and the denominator of which is ten.

In the case of an individual who was a participant of the plan on or before December 31, 1982, or December 31, 1986, the maximum benefit will not be less than the participant's accrued benefit as of December 31, 1982, and December 31, 1986.

All defined benefit plans of the City, whether or not terminated, will be treated as one defined benefit plan for purposes of the limitations in this section.

The limitations described in subsection (a) of this section shall not apply to preretirement death benefits, but preretirement death benefits must meet the "incidental" requirements of treasury regulation section 1-401-1(b)(i).

For distributions with annuity starting dates on or after January 1, 2002, the mortality table used for purposes of adjusting any benefit or limitation under section 415(b)(2)(B), (C), or (D) of the code is the table prescribed in Rev. Rul. 2001-62.

(c) Restrictions on payments to highly compensated employees.