43.1. The Retirement Plan is a public pension plan, intended to constitute a tax-qualified governmental retirement plan under Sections 401(A) and 414(D) of the Internal Revenue Code of 1954, as amended (the "Code"). The assets of the Retirement Plan are held in a separate trust, exempt from taxation under Section 501(A) of the Code, for exclusive benefit of the members and beneficiaries of the Retirement Plan. The Retirement Plan Trust also is intended to constitute an independent public trust pursuant to Article XXIX of the Constitution of the State of Arizona. The City of Phoenix Employees’ Retirement Law of 1953 shall be construed in a manner consistent with the tax-qualified governmental status of the Retirement Plan whenever possible.

43.2. In accordance with the obligations and requirements imposed on tax-qualified governmental pension plans under the Code, the Retirement Plan is, and shall continue to be, administered and operated in accordance with the compensation limitations set forth in Section 401(A)(17) of the Code, the contribution and benefit limitations set forth in Section 401(A)(16) and Section 415 of the Code, and the eligible rollover distribution requirements of Section 401(A)(31) of the Code. The Retirement Plan is, and shall continue to be, operated and maintained in reasonable and good faith compliance with the required minimum distribution requirements set forth in Section 401(A)(9) of the Code. To the extent required, the provisions of Code Sections 401(A)(9), 401(A)(16), 401(A)(17) and 401(A)(31) (and the applicable treasury regulations promulgated thereunder) are incorporated herein by this reference and the Retirement Board is authorized to adopt any and all policies necessary for proper implementation of the aforementioned code requirements.

43.3. Section 10.1 of the Retirement Plan authorizes the Retirement Board to adopt actuarial assumptions appropriate and necessary for the administration of the Retirement Plan. For purposes of compliance with Section 401(A)(25) of the Code, the actuarial assumptions adopted by the Retirement Board shall be set forth in an "Addendum to Section 10.1 of the City of Phoenix Employees’ Retirement Law of 1953" which shall be updated by the Board from time to time as necessary and maintained in the offices of the Executive Secretary to the Retirement Board.

43.4. Section 27 of the Retirement Plan requires mandatory contributions to the Retirement Plan from each member. The mandatory member contributions are deducted from the eligible compensation of each member on a pre-tax basis and deposited into the Retirement Plan Trust through an employer pick-up arrangement structured and operated in accordance with Section 414(H) of the Code and the terms of the private letter ruling issued to the Retirement Plan by the Internal Revenue Service on April 18, 1986.