GEORGIA MUNICIPAL EMPLOYEES BENEFIT SYSTEM

This document is a formal summary of the City of Cornelia’s Defined Benefit Retirement Plan, as amended and restated effective January 6, 2026. This plan is administered through the Georgia Municipal Employees Benefit System (GMEBS).

Plan Administration & Type

• Administrator: Georgia Municipal Employees Benefit System (GMEBS).

• Plan Type: A Defined Benefit Plan, which provides a “definitely determinable” monthly benefit to employees upon retirement, rather than a balance based on investment fluctuations.

• Adoption Status: This is an amendment and restatement of a pre-existing GMEBS plan (originally effective in 1972) to comply with updated federal tax laws (IRS 2020 Cumulative List) and to introduce specific local benefit changes.

Eligibility & Participation

• Eligible Regular Employees: Generally includes all full-time staff working at least 30 hours per week and 6 months per year.

• Elected/Appointed Officials: The Mayor and City Council members are eligible to participate.

• Participation: Enrollment is mandatory for all eligible employees. There is no waiting period; participation begins as soon as the employee meets eligibility criteria.

Service Credit Provisions

The plan calculates benefits based on Credited Service, which includes:

• Past Service: Credit for years worked for the City of Cornelia prior to joining the GMEBS plan.

• Portability: Service with other GMEBS-participating employers can be used to meet the minimum time requirements for vesting and retirement eligibility.

• Military/Government Service: While the summary mentions options for prior military and governmental service, the City has currently marked these as not creditable or subject to specific individual elections within the document.

Key 2026 Amendment: Retirement Qualifications

The most significant update in this document is the establishment of a new retirement threshold:

• Alternative Normal Retirement (55 & 25): Employees in service on or after January 6, 2026, can retire with full benefits if they have reached age 55 and completed 25 years of service.

• Standard Normal Retirement: Typically occurs at age 65 with 5 years of service (or as otherwise defined in the Basic Plan Document).

• Early Retirement: Available at age 55 with 10 years of service, though benefits are usually reduced for early payment.

Benefits and Vesting

• Vesting: The period of service required before an employee has a right to their retirement benefits (typically 5 or 10 years depending on the class of employee).

• Benefit Formula: Monthly benefits are calculated based on the employee’s “Final Average Earnings” and total years of “Credited Service.”

• Death Benefits: The plan provides for “In-Service” and “Terminated Vested” death benefits for beneficiaries if a participant passes away before retirement.