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freed through forfeitures that arise__for anv reason shall only be used to reduce employer contribution and to nay reasonable administrative expenses of the system. 21. Article III of Chapter 30 of the Code of the City of Portsmouth, Virginia is amended by adding a new Division 6 as follows: DIVISION 6. -MAXIMUM BENEFITS AND OTHER LIMITATION AND PE IAL ULE Sec 30-253 -Limitation on creditable compensation taken into account Notwithstanding anv other nrovision of this article extent in the case of an emnlovee who first became a member before July 1 1996 creditable compensation taken into account for nurooses of determining benefits under the system shall be limited by the compensation limit pursuant to Section 401(al(171 of the Internal Revenue Code of 1986. as amended For purooses of apnlvin~ the limitation annlicable to each year. the limit for a plan year shall be the limitation in effect for the calendar year in which the plan year begins determined without increases in the limitation for subsequent years. An emnlovee who first became a member before July 1 1996 shall be considered a ~randfathered emnlovee for nurooses of Section 401(al(171 of the Internal Revenue Code. Sec 30-254 -Limitation on annual benefit and special ve tiny rule (al Notwithstanding anv other nrovision of this article. the annual benefit under the system of anv member and any related death or other benefit shall. if necessary be reduced to the extent reauired by Section 415(bl of the Internal Revenue Code of 19RF_ ac amended ac adiusted by the Secretary of the_Treasurv pursuant to Section 415(dl of the Internal Revenue Code of 1986. as amended. all as annlicable to governmental plans Notwithstanding the fore~oin~, adiustments in the dollar limitation under Section 415(bl of the Internal Revenue Code of 1986 shall only be annlicable to benefits provided by this system with respect to a member who is an eligible emnlovee at the time the adiustment is effective. In comnarin~ the system benefit to the dollar limitation system benefits must be converted to an annual benefit (as defined in Section 415 of the Internal Revenue C'~cle of 19861 bv. except as providedd below. converting a benefit navahle in a fern, ether rho„ a straight life annuity to an actuarially equivalent straight life annuity before applvin~ the limitations of this section. The annual benefit does not include anv benefits attributable to employee contributions or the assets transferred from a aualified plan that was not maintained by a particinatn~ employer. No actuarial adiustment to the benefit is reauired for (il the value of a ioint and survivor annuity. (iil the value of benefits that are not directly related to retirement benefits (such as the aualified dicah;l;ty benefit nrP_ retirement death benefits. and post-retirement medical benefitsl and (iiil the value of nnct_ retirement cost-of-living increases made in accordance with Section 415(dl of the Internal Revenue Code of 1986 and Inc Tax Recs Section 1 415-3(cl(21(iiil Section 415(dl of the A-12