§ 22-902. Member Contributions.
(1) Member Contributions for Current Service.
(a) General Rule; exception. Member contributions shall be made to the Retirement System on behalf of each member for current service except for any period of service in which a limitation on contributions is imposed by Tax Code Sections 401(a)(17) and/or 415 of the Tax Code.
(b) Pickup contributions; treatment for purposes of Tax Code. All member contributions required to be made for current service rendered by a member on or after January 1, 1983 shall be picked up by the City by means of payroll deduction and shall be treated as employer contributions for purposes of Section 414(h) of the Tax Code.
(c) Treatment for other purposes. For all other purposes under this Title and otherwise, such pickup contributions shall be treated as contributions made by a member in the same manner and to the same extent as contributions made by a member prior to January 1, 1983.
(2) Basic Contribution Rate. Subject to subsection (3), below, member contributions shall be made at the following basic contribution rates: 166
(a) Members of Plan J who are not covered under the Federal Social Security Act, as amended: 167
(.1) For members represented by AFSCME, District Council 47, or District Council 33 (except for guards represented by DC 33, provided that this exception shall expire on December 9, 2016), and for municipal employees not represented by a union: 168
(.a) Through and including December 31, 2014, six percent (6%) of compensation.
(.b) For the period January 1, 2015, through December 31, 2015, six and one-half percent (6.5%) of compensation; except that, for OHCD employees, the rate shall be six percent (6%) 169 of compensation.
(.c) For the period January 1, 2016, and thereafter, seven percent (7%) of compensation.
(.2) For guards represented by DC 33:
(.a) Through and including November 13, 2014, six percent (6%) of compensation.
(.b) For the period November 14, 2014, through December 8, 2016, the greater of (i) six percent (6%) of compensation; or (ii) fifty percent (50%) of the aggregate normal cost for all members in Plan J. 170
(.3) For all other members, six percent (6%) of compensation.
(b) Members of Plan J who are covered by the Federal Social Security Act, as amended (except for guards represented by DC 33, provided that this exception shall expire December 9, 2016), three and three-quarters percent (3.75%) of that portion of compensation which is subject to tax under the Federal Insurance Contributions Act (26 U.S.C. §§ 3101 et seq.) plus six percent (6%) of that portion of compensation which is not subject to such tax, exclusive of that portion of such tax attributable to coverage for hospital insurance benefits; plus, for members represented by AFSCME, District Council 47, or AFSCME, District Council 33, and for municipal employees not represented by a union: 171
(.1) for the period January 1, 2015, through December 31, 2015, one-half of one percent (0.5%) of compensation (except for municipal employees of the Auditing Department, not in the civil service, for whom this additional one-half of one percent (0.5%) shall apply for the period July 1, 2015, through December 31, 2015; and except for OHCD employees, for whom this additional one-half of one percent (0.5%) shall not apply); plus,
(.2) for the period January 1, 2016, and thereafter, one percent (1%) of compensation.
(b.1) Members of Plan J who are guards represented by DC 33 and who are covered by the Federal Social Security Act, as amended: 172
(.1) Through and including November 13, 2014: three and three-quarters percent (3.75%) of that portion of compensation which is subject to tax under the Federal Insurance Contributions Act (26 U.S.C. §§ 3101 et seq.) plus six percent (6%) of that portion of compensation which is not subject to such tax, exclusive of that portion of such tax attributable to coverage for hospital insurance benefits. 173
(.2) For the period November 14, 2014, through the day before the effective date of the ordinance adding this clause to subsection (2)(b.1)(.2), the greater of (i) the amount calculated pursuant to subsection (2)(b.1)(.1) above; or (ii) fifty percent (50%) of the aggregate normal cost for all members in Plan J. 174
(c) Members of Plan D, six percent (6%) of compensation.
(d) Members of Plan X, six percent (6%) of compensation.
(e) Members of Plan '10 who are police or fire employees, the required contributions shall be as follows, provided that no contributions shall be required of any employee with more than twenty (20) years of credited service: 175
(.1) For members hired or rehired on or before June 30, 2017:
(.a) For the period preceding July 1, 2017: five and one-half percent (5.5%) of compensation.
(.b) For the period July 1, 2017, through June 30, 2018: six and forty-two hundredths percent (6.42%) of compensation.
(.c) For the period July 1, 2018, and thereafter: seven and thirty-four hundredths percent (7.34%) of compensation.
(.2) For members hired or rehired on or after July 1, 2017: eight percent (8%) of compensation.
(f) Members of Plan '10 who are municipal employees or elected officials, a percentage amount equal to fifty percent (50%) of the aggregate normal cost percentage for members of Plan '10 who are municipal employees or elected officials, as reported in the most recent actuarial valuation report of the Retirement System. The provisions of subsection 22-902(4) ("Election to cease contributions") shall not apply. 176
(g) Members of Plan A, Plan B, Plan L, Plan Y, or Plan 16, such contributions as the Board shall determine based on the most recent actuarial valuation report, in accordance with the following: 177
(.1) Separate basic contribution rates shall be determined for members of each of Plan A, Plan B, Plan L, Plan Y, or Plan 16. 178
(.2) For members of Plan L, Plan Y, and Plan 16, the required contributions shall equal the sum of the amounts calculated pursuant to the applicable portions of clauses (.a) through (.e), below: 179
(.a) Such percent of the aggregate normal cost for all members in such plans as set forth in subsections (i) through (iv) below, including but not necessarily limited to, the normal cost for service retirement benefits, separation service retirement benefits; optional early retirement benefits, disability benefits, death benefits, survivor benefits, and expenses; provided, however, that for that portion of the benefits under Plan L which exceeds those available to members of Plan Y, the required Plan L contribution for each employee shall equal a proportionate share of one hundred percent (100%) of the aggregate normal cost of such greater benefits for all such members:
(i) For members of Plan L; for members of Plan Y, except employees of the Sheriff's Office represented by Lodge 5 of the F.O.P., and except guards represented by DC 33, provided that this exception for guards shall expire on December 9, 2016; and for members of Plan 16: thirty percent (30%).
(ii) For members of Plan Y who are employees of the Sheriff's Office represented by Lodge 5 of the F.O.P. and who were hired before January 1, 2012: thirty percent (30%).
(iii) For members of Plan Y who are employees of the Sheriff's Office represented by Lodge 5 of the F.O.P. and who were hired on or after January 1, 2012: fifty percent (50%).
(iv) For members of Plan Y who are guards represented by DC 33:
(A) Until November 13, 2014: thirty percent (30%).
(B) From November 14, 2014, through December 8, 2016: fifty percent (50%).
(.b) For members represented by AFSCME, District Council 47, or AFSCME, District Council 33 (except guards represented by DC 33, provided that this exception shall expire on December 9, 2016), and for municipal employees not represented by a union and for elected officials, for the period January 1, 2015, through December 31, 2015, one-half of one percent (0.5%) of compensation (except for municipal employees of the Auditing Department, not in the civil service, for whom this additional one-half of one percent (0.5%) shall apply for the period July 1, 2015, through December 31, 2015; and except for OHCD employees, for whom this additional one-half of one percent (0.5%) shall not apply), and, for the period January 1, 2016, and thereafter, one percent (1%) of compensation; and
(.c) for members represented by AFSCME, District Council 47, hired on or after March 5, 2014; for municipal employees in the civil service not represented by a union, hired on or after May 14, 2014; for members represented by AFSCME, District Council 33 (except guards represented by DC 33 and OHCD employees, provided that this exception shall expire on December 9, 2016), hired on or after September 9, 2014; for municipal employees not in the civil service and not represented by a union, hired or first elected on or after November 14, 2014; and for OHCD employees hired on or after December 1, 2015, an additional one percent (1%) of compensation; and
(.d) for elected officials first elected on or after November 14, 2014, an additional one percent (1%) of compensation; and 180
(.e) for members of Plan 16 represented by Lodge 5 of the F.O.P. who are employees of the Sheriff's Office or the Register of Wills, an additional two percent (2%) of compensation.
(.3) For members in Plan A and Plan B, the required employee contribution shall equal the sum of the amounts calculated pursuant to the applicable portions of clauses (.a), (.b), and (.c) below, provided that the percentage of compensation set forth in clause (.a) is at least equal to thirty percent (30%) of the normal cost for members in Plan A and Plan B. If the percentage of compensation set forth in clause (.a) below does not equal thirty percent (30%) of the normal cost, the contribution percentage will be adjusted to equal thirty percent (30%) of the normal cost. For members of Plan B hired before January 1, 2010, and for members of Plan A hired before October 15, 2010, if the percentage of compensation set forth in clause (.a) exceeds fifty percent (50%) of the normal cost, the contribution percentage will be adjusted so as not to exceed fifty percent (50%) of such normal cost. 181
(.a) For members of Plan B hired before January 1, 2010, and for members of Plan A hired before October 15, 2010, five percent (5%) of compensation. For members of Plan B hired on or after January 1, 2010, and for members of Plan A hired on or after October 15, 2010, six percent (6%) of compensation. 182
(.b) For members hired or rehired on or before June 30, 2017:
(i) For the period July 1, 2017, and thereafter: An additional ninety-two hundredths percent (0.92%) of compensation.
(ii) For the period July 1, 2018, and thereafter: An additional ninety-two hundredths percent (0.92%) of compensation.
(.c) For members hired or rehired on or after July 1, 2017: An additional two and one-half percent (2.5%) of compensation.
(.4) Member contributions shall be determined as a uniform percentage of compensation for all members in a plan.
(.5) Cost to members may change yearly depending on fluctuations in the normal cost of the Retirement System. Changes in the cost to members shall take effect on the first day of the first pay period ending after the first anniversary of the actuarial valuation affecting the change.
(.6) Additional contributions may be required pursuant to the vesting provisions in Section 22-301 of this Title.
(3) Additional contributions. 183 Contributions for municipal employees and elected officials shall be made at the rate set forth in the applicable provisions of subsection (2), above, plus an amount equal to the following, provided that, for members of Plan 16, the term "annual salary" in this subsection (3) shall mean the lesser of the member's annual salary as provided for in subsection 22-105(4.1) or the Stacked Hybrid Cap:
(a) for employees earning an annual salary of more than forty-five thousand dollars ($45,000) but not more than fifty-five thousand dollars ($55,000), excluding overtime: one-half of one percent (0.5%) of compensation.
(b) for employees earning an annual salary of more than fifty-five thousand dollars ($55,000) but not more than seventy-five thousand dollars ($75,000), excluding overtime: one and one-half percent (1.5%) of compensation.
(c) for employees earning an annual salary of more than seventy-five thousand dollars ($75,000) but not more than one hundred thousand dollars ($100,000), excluding overtime: two percent (2%) of compensation.
(d) for employees earning an annual salary of more than one hundred thousand dollars ($100,000), excluding overtime: two and three-quarters percent (2.75%) of compensation.
(4) Election to cease contributions. 184 No member of the Retirement System will be required to pay contributions to the System after having attained the maximum allowable credited service upon which the member's pension will be calculated.
(a) When the maximum allowable credited service has been attained, whether through continuous membership by employment or through the purchase of credits for prior City service or through the purchase of credits for governmental service or leaves of absence, the employee may elect to suspend all further pension contributions. The election shall be made in writing by the employee to the Board.
(.1) The employee will be entitled to receive a refund, without interest, of all contributions made by the employee after the date of completion of the maximum allowable credited service.
(b) An employee who has attained the maximum allowable credited service through continuous membership by employment or through the purchase of credits for prior City service or the purchase of credits for leaves of absence and who had previously elected to purchase governmental service in accordance with provisions of Section 22-802 may elect to forfeit credit for that service. An employee who elects to forfeit that credit shall be reimbursed the entire amount of the cost, including interest and penalties, paid by the employee for the purchase of credit for this prior governmental service.
(c) Any employee who elects to cease his/her contributions to the pension system under subsection 22-902(4) shall have their pension benefit frozen as of the date their employee contributions cease. 185
(d) For purposes of this Section, the phrase "maximum allowable credited service" means that amount of service which, when multiplied by the applicable percentage or fraction for the member's plan, as provided in Section 22-301, to calculate the member's pension, would yield the maximum pension provided in this Title, expressed as a percentage of average final compensation, based on the member's average final compensation at the time the member makes the election in subsection 22-902(4)(a). 186
Notes
166 | Amended, Bill No. 161013 (approved December 9, 2016).
167 | Amended, Bill No. 140205 (approved May 14, 2014). See note 37 for effective date provisions. Amended, Bill No. 140741 (approved November 14, 2014). See note 23 for effective date provisions. Amended, Bill No. 150720 (approved December 1, 2015).
168 | Amended, Bill No. 161013 (approved December 9, 2016); amended, Bill No. 180557-A (approved June 21, 2018).
169 | Enrolled bill read "...six (6.0%)...."
170 | Amended, Bill No. 161013 (approved December 9, 2016); amended, Bill No. 180557-A (approved June 21, 2018).
171 | Amended, Bill No. 140205 (approved May 14, 2014). See note 37 for effective date provisions. Amended, Bill No. 140741 (approved November 14, 2014). See note 23 for effective date provisions. Amended, Bill No. 150720 (approved December 1, 2015); amended, Bill No. 161013 (approved December 9, 2016); amended, Bill No. 180557-A (approved June 21, 2018).
172 | Added, Bill No. 140741 (approved November 14, 2014). See note 23 for effective date provisions. Amended, Bill No. 150720 (approved December 1, 2015).
173 | Amended, Bill No. 161013 (approved December 9, 2016).
174 | Amended, Bill No. 161013 (approved December 9, 2016).
175 | Added, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 8, 2011). See note 4 for effective date provisions. Amended, Bill No. 180557-A (approved June 21, 2018).
176 | Added, Bill No. 110836-A (approved December 21, 2011); amended, Bill No. 140205 (approved May 14, 2014). See note 37 for effective date provisions. Amended, Bill No. 140743 (approved November 14, 2014). See note 28 for effective date provisions. Amended, Bill No. 161013 (approved December 9, 2016).
177 | Renumbered, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Renumbered, Bill No. 110836-A (approved December 21, 2011); amended, Bill No. 161013 (approved December 9, 2016).
178 | Amended, Bill No. 161013 (approved December 9, 2016).
179 | Amended, Bill No. 110836-A (approved December 21, 2011); amended, Bill No. 140205 (approved May 14, 2014). See note 37 for effective date provisions. Amended, Bill No. 140741 (approved November 14, 2014). See note 23 for effective date provisions. Amended, Bill No. 140743 (approved November 14, 2014). See note 28 for effective date provisions. Amended, Bill No. 150720 (approved December 1, 2015); amended, Bill No. 161013 (approved December 9, 2016); amended, Bill No. 180557-A (approved June 21, 2018).
180 | Enrolled Bill No. 150720 deleted former subsection (.d) but failed to account for and renumber subsection (.e); renumbered, and internal cross-reference renumbered, by Code editor.
181 | Amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 8, 2011). See note 4 for effective date provisions. Amended, Bill No. 180557-A (approved June 21, 2018).
182 | Added, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 8, 2011). See note 4 for effective date provisions.
183 | Added, Bill No. 161013 (approved December 9, 2016); amended, Bill No. 180599-A (approved June 21, 2018). See note 5 for effective date provisions. Amended and subsection (3.1) deleted, Bill No. 180991 (approved December 21, 2018).
184 | Renumbered, Bill No. 161013 (approved December 9, 2016).
185 | Amended, Bill No. 161013 (approved December 9, 2016).
186 | Comment: This Section incorporates the terms of Bill No. 20, approved February 7, 1997. Subsection (d) is added to provide clarification by defining a term left undefined in the original bill.[Editor's note: The comment above appears in Bill No. 980843 (approved January 13, 1999).] Subsection amended, Bill No. 161013 (approved December 9, 2016).
