18-22 Electing to Participate in the Public Employee's Retirement Fund's MyChoice: Retirememnt Savings Plan As Administered by the Indiana Public Retirement System

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SECTION II: Retirement Plans Offered. The City of South Bend elects to offer the following retirement plan(s) under the Public Employees' Retirement Fund: Both PERF Hybrid and My Choice: Retirement Savings Plan shall be offered to all new employees. The employee may choose the retirement plan in which the employee will participate. This choice of options shall only apply to new employees hired after July 1, 2018. Existing employees shall continue to receive benefits through the currently offered PERF Hybrid system. SECTION III: Default Plan. If an employee is eligible to choose membership in either the Fund or the Plan, and that employee fails to make an election within the period set forth in IC 5-10.3-12-20 and 35 IAC 1.3-4-1, said employee will be enrolled automatically and irrevocably in the My Choice: Retirement Savings Plan ("the Plan"). SECTION IV: Employee Contribution. That, effective as of the 1 st day of July, 2018,the City of South Bend, Indiana shall pay 1 %s% of the mandatory contribution for Teamsters employees who are members of PERF, or in the amount specified in the current Collective Bargaining Agreement. The term"mandatory contribution" means the mandatory 3% of gross wages required to be contributed in order for an employee to participate in the Plan. Said employees shall not be entitled to choose to receive the contributed amounts directly. The contributed amounts will be paid by the employer to the specified pension fund. For all other classifications of employees, the City of South Bend, Indiana shall not pay any of the mandatory contribution requirement. Instead, said contributions shall be paid by the employee via a 3%reduction of the employee's salary, or as specified by City policy. Such contributions will not be included in the employee's gross income for certain tax reporting purposes, that is, for federal, state, or local income tax withholding, until distributed either though a pension benefit or a lump sum payment. Such contributions will be included in the employee's gross income for FICA taxes when they are made. These contributions are made on a pre-tax basis but are paid by the employee through a payroll deduction. SECTION V: Employer Contribution. The employer contribution shall consist of the normal cost and supplemental rate, as required by INPRS. The "normal cost" is part of the rate employers pay into the employee's MyChoice: Retirement Savings Plan. This amount may range from 0% to the percentage that would produce the normal cost for participation in the fund under IC 5-10.2-2-11. The "supplemental rate" funds the unfunded liability in the Plan, and is paid to INPRS, not the employee's MyChoice: Retirement Savings Plan account. Both the normal rate and the supplemental rate are subject to change annually as determined by INPRS and the City will adjust its contribution rates in accordance with any INPRS changes. 3