2.64.200 - Retirement pensions.
A. Eligibility. Participants in the fund shall be eligible under either subsection 1. or subsection 2., as applicable:
1. Whenever a person who first becomes a fund participant before September 1, 2011 shall have completed ten years of service credit and attained the age of fifty-five years or completed seven years of service credit and attained the age of sixty years, or shall have completed thirty years of service credit regardless of age, such participant shall be entitled to be retired from such service in accordance with the applicable terms and conditions established in this chapter upon application. An application for pension benefits shall be filed no later than thirty days after the effective termination date of such person. Upon a finding of good cause by the board of trustees, the board may extend the deadline for filing such application. The term good cause shall mean that the failure of the applicant to timely file such application was the result of circumstances beyond the applicant's control, rather than intentional, or the result of conscious indifference. The burden of establishing good cause shall always be upon the applicant, and good cause must be shown in the record.
2. Whenever a person who first becomes a fund participant on or after September 1, 2011 shall have completed seven years of service credit and attained the age of sixty years, or shall have completed thirty-five years of service credit regardless of age, such employee shall be entitled to be retired from such service in accordance with the applicable terms and conditions established in this chapter upon application. An application for pension benefits shall be filed no later than thirty days after the effective termination date of such person. Upon a finding of good cause by the board of trustees, the board may extend the deadline for filing such application. The term good cause shall mean that the failure of the applicant to timely file such application was the result of circumstances beyond the applicant's control, rather than intentional, or the result of conscious indifference. The burden of establishing good cause shall always be upon the applicant, and good cause must be shown in the record.
3. The phrase "effective termination date" shall mean "the date when a participant separates from service from the city, whether voluntarily or involuntarily, whereby pension contributions may no longer be made for the benefit of the participant by either the participant or the city."
B. Benefits. Participants in the Fund, shall, depending upon the applicable facts and circumstances, receive benefits under either subsection 1. or subsection 2., or both, as provided by the applicable provisions of this chapter, and as further provided in subsections 3. and 4.:
1. Effective September 1, 1984, any person so retired, who was first a fund participant before September I, 2011, shall be entitled to receive a monthly pension from the fund in an amount equal to: (1) two and one- half percent of the monthly average of the pensionable gross compensation received by the participant during the three years immediately preceding retirement; or (2) two and one-half percent of the monthly average of the base salary received by the participant during the year immediately preceding retirement; or (3) two and one-half percent of the monthly base salary the participant is entitled to receive for the month immediately preceding retirement, whichever is greater, multiplied by the number of completed years of service, plus 0.2083 of one percent of such average or entitled monthly pay for each complete or fractional part of a month of service which is not part of a complete year, or
2. Any person so retired who was first a fund participant on or after September 1, 2011 shall be entitled to receive a monthly pension from the fund in an amount equal to two and one-fourth percent of the monthly average of the pensionable gross compensation received by the participant during the last three years immediately preceding retirement (for purposes of 2.64.200(F), the last three years immediately preceding retirement shall mean the last three years immediately preceding retirement which the participant received service credit), multiplied by the number of completed years of service credit, plus 0.1875 of one percent of such average monthly pay for each complete or fractional part of a month which is not part of a complete year; provided, however, that under no circumstance shall said monthly pension exceed ninety percent of the participant's three year average monthly pensionable gross compensation, and
3. Unless otherwise approved by the board of trustees, the monthly pension of a participant who was first a participant before September 1, 2011 will be computed on the basis of the monthly base salary the participant is entitled to receive for the month immediately prior to retirement.
4. Pensionable gross compensation received by a participant that exceed the amount he is entitled to be paid in the permanent position to which he has been regularly appointed, shall be excluded from the computation of monthly pension benefits.
5. For the purposes of this plan, the term "pensionable gross compensation" shall refer to the gross income paid by the city to the participant and shall include service time increases, sick leave pay taken in the normal course of employment, vacation leave pay taken in the normal course of employment, vacation leave pay taken in the normal course of employment, shift differential, and mandatory overtime that is part of the participant's fixed, periodic compensation. Payments not considered pensionable gross compensation are:
a. Except those items listed in the first sentence of this section, including, without limitation, salary increases, and compensation determined by the city to have been paid to a participant solely for the purpose of increasing a participant's retirement benefit under the plan.
b. Compensation that had previously been provided in kind to the participant by the city or paid directly by the city to a third party other than the plan for the benefit of the participant.
c. Any one-time or ad hoc payments made to a participant.
d. Severance or any other payment that is granted or awarded to a participant in connection with or in anticipation of a separation from employment.
e. Payments for unused vacation, annual leave, personal leave, sick leave, or compensatory time off, however denominated, paid in a lump sum, regardless of when reported or paid.
f. Any employer-provided allowance, reimbursement, or payment, including, but not limited to, one made for housing, vehicle, or uniforms, except for incentive payments that are permanent and included in a participant's gross compensation by the city.
g. Employer contributions to the plan.
h. Any bonuses paid.
i. Any compensation paid as a result of an interim promotion or provisional pay differential that is not made permanent by the city.
j. Any compensation paid by the city after separation from service of the participant, including, without limitation, any payments made to a participant to settle a claim with the plan and any third party costs paid by the city on behalf of the participant.
k. Any other form of compensation that would not be considerable pensionable gross compensation under applicable state or federal law.
C. The city council may from time to time adopt by resolution early and deferred retirement tables for participants, providing schedules deemed by the council to be actuarially sound under which a participant who has attained the age as set forth in said tables may retire, and either receive a retirement pension immediately or at a later date, based on a percentage of his pay as provided in subsection B. of this section, according to the length of his service at that time, provided however, such an early or deferred retirement for a participant who first became a fund participant before September 1, 2011 shall begin no earlier than age 40 if such person has at least ten years of pension service credit or begin no earlier than age 45 if such person has at least seven years of pension service credit, and such an early or deferred retirement for a participant who first became a fund participant on or after September 1, 2011 shall begin no earlier than age 45 if such person has at least seven years of pension service credit. If such schedules are adopted, any participant whose age and length of service are included in the tables shall be allowed to retire and to receive, either immediately or at a later date, a retirement pension in accordance therewith, in lieu of repayment of his contributions, provided however, such an early or deferred retirement for a participant who first became a fund participant before September 1, 2011 shall begin no earlier than age 40 if such person has at least ten years of pension service credit or begin no earlier than age 45 if such person has at least seven years of pension service credit, and such an early or deferred retirement for a participant who first became a fund participant on or after September 1, 2011 shall begin no earlier than age 45 if such person has at least seven years of pension service credit. The provisions for minimum payments under Section 2.64.250 shall have no application to benefits paid under early or deferred retirement tables. Upon the death of a participant retired for early retirement and receiving a retirement pension, any death benefits to which his survivors are entitled under this chapter, shall be computed on the basis of the appropriate percentage of retirement benefit which he was receiving. Upon the death of a participant on deferred retirement and not yet receiving a retirement pension, the following choices shall be available to the survivors:
1. The death allowance may begin immediately and the death benefits shall be computed on the basis of the appropriate percentage of retirement benefit he would have been entitled to receive if he had retired and received an allowance as of the date of his death.
2. The death allowance may begin at a later date (not later than the date the participant would have attained age fifty-five years for the persons who first were fund participants before September 1, 2011, or age sixty years for the persons who first were fund participants on or after September 1, 2011) and the death benefit shall be computed on the basis of the appropriate percentage of retirement benefit he would have been entitled to receive if he had retired and received an allowance as of the above later date.
3. The survivors may choose, subject to the agreement of the pension board, to receive a refund of the participant's contributions. If at the time of death of a participant on deferred retirement, there are no survivors entitled to a death allowance, his contributions shall be refunded to his estate.
4. If the survivors are unmarried children under nineteen years of age, the choice of one of the three preceding options shall be made by their legally appointed guardian, or if no guardian has been appointed, the person having custody of the unmarried child or children under nineteen and subject to the approval of the pension board.
5. A participant may elect to receive early or deferred pension benefits and shall be entitled to select an optional retirement settlement as provided in Section 2.64.240. Such an election and selection shall be made at the time the participant applies for a pension, and neither the election nor selection of optional retirement settlement may be changed after an application for a pension has been approved by the board.
D. At the time the salary ceiling on which contributions and benefits were computed was raised from two hundred dollars a month to four hundred dollars a month, certain participants elected to remain under the two hundred dollar ceiling, thus contributing to and receiving from the fund at a rate of one-half the rate applicable to participants generally. In the case of those participants who so elected, the contributions to the fund (both by the city and by the participant) and the benefits payable shall be computed as if the participant's salary or wages were one-half the actual amount.
E. A participant who is otherwise entitled to retire from service and who is terminated for cause may, if such termination is appealed within the time period allowed for such an appeal and in accordance with applicable procedures for such appeals, submit an application for retirement during the period allowed for submitting such appeals. Such application for retirement shall be held in abeyance subject to the outcome of the appeal. In the absence of such an appeal, and upon a showing of good cause as provided in subsection A. of this section, such participant shall file an application for pension benefits no later than thirty days after the effective date of termination. Any participant who has been terminated for cause during the two-year period prior to February 11, 1997, the adoption of this revised subsection, and at a time when such participant was otherwise entitled to pension benefits and who did not appeal such termination, may submit an application for pension benefits. Such application shall be filed no later than thirty days from February 11, 1997, the effective date of this revised subsection.
F. Retirement pension of regular part-time employees who elect to participate in the fund will be calculated as follows:
1. For purposes of calculating benefits earned from regular part-time service, service credit shall be accrued as follows: for each year worked, or part thereof, the number of hours actually worked will be aggregated and expressed as a ratio of hours worked to a base of full-time equivalent hours over the same period. Service credit so earned shall then be multiplied by two and one-half percent for the persons who first became fund participants before September 1, 2011, or two and one-fourth for the persons who first became fund participants on or after September 1, 2011, of a full-time equivalent yearly final base salary to arrive at the benefit due.
2. Pension service credit time towards eligibility will accrue on a calendar basis, provided the part-time employee has worked a minimum of one thousand hours per year. Part-time service credit towards eligibility will accrue on a pro-rata basis for employees working less than one thousand hours per year.
3. For purposes of benefit calculations for part-time employees, "final pay" shall mean the full-time equivalent base pay for part-time employment, but shall otherwise be defined as currently provided in this chapter.
4. For calculating minimum pensions due in cases of accidental death or job-related disability, the minimum pension will be defined as a pro-rata share of the full-time hours worked in the twelve months preceding death or injury. However, any participant in full-time status at the time of the death or injury shall be entitled to full-time minimum pension, past service history notwithstanding.
5. Minimum regular pension benefits shall be construed as a pro-rata share of the full-time minimum pension wherein the proration will represent the estimated proportion of full-time hours worked over the service life of the retiree.
6. Persons who elect to participate in the pension fund shall have the further option of paying into the fund, in one lump sum, at any time prior to submitting an application for retirement, the amount of contributions which they would have paid, had they been members of the fund from the date of their original appointments, or any late date, but not to include any time during breaks in service, plus interest at the rate of seven and one-half percent per annum, compounded annually, on the total amount for the period from the date when the first contribution would have been made to the date when the total is actually paid. Any buy-back shall be made in one lump sum. In the case of nongrant-funded employees, the city will make corresponding contributions, without interest, in accordance with the formula in effect at such previous time; provided, however, that such participants must pay interest at the current actuarial rate assumption approved by the board on the employer contributions for the portion of buy-back periods which are longer than five years, as well as the interest on participant contributions; further provided, however, that this provision relating to paying interest on employer contributions shall not apply to persons who are eligible for membership on October 12, 1993, the time the ordinance codified in this section is adopted. Periods of buy-back without interest on the employer portion of contribution shall cover the first continuous or intermittent service most immediately contiguous to the date of the buy-back. Periods of buy-back on which interest on the employer portion of contribution is payable shall cover continuous or intermittent service most immediately contiguous to the period of buy-back without payment of interest on the employer portion. Notwithstanding anything contained in this subsection to the contrary, the city or other approved employer shall not pick-up or pre-tax, pursuant to Section 2.64.500, buy-back contribution payments made pursuant to this subsection.
7. A retiree of the pension fund who is rehired as a regular part-time employee by the city and elects to participate in the pension fund, shall have his final pension benefit calculated in two (or more) distinct parts representing the two (or more) distinct periods of service, and as further provided in Section 2.64.120 H. of this Code, as such subsections are germane depending on the applicable facts and circumstances.
G. Limit of benefits.
1. Notwithstanding any other provision herein, the annual benefit provided with respect to any plan participant who retires and is eligible to receive benefits may not exceed the benefits allowed for a governmental defined benefit plan qualified under Internal Revenue Code Section 401 or its successor statute and such limit shall increase each year to the extent permitted by annual cost-of-living increase adjustments announced by the Secretary of the Treasury under Internal Revenue Code Section 415(d) or a successor statute. Such increased benefit limits shall apply to participants who have retired and are eligible to receive benefits, including participants who have commenced to receive benefits, before the effective date of the adjustment.
2. If the combined benefits from two or more defined benefit plans sponsored by the city would otherwise exceed the limits imposed by subparagraph 1. and Internal Revenue Code Section 415(b) or successor statutes, the benefits provided under this plan shall be reduced to the extent necessary to comply with those requirements.
(Ord. 16619 §§ 9—11, 2007; Ord. 16076 § 10, 2005; Ord. 16075, 2005; Ord. 13219 (part), 1997; Ord. 13086 §§ 1, 2, 1997; Ord. 11680 (part), 1993; Ord. 11593 (part), 1993; Ord. 9684, 1989; Ord. 8348, 1985; Ord. 8145 (part), 1984; prior code § 17-7) (Ord. No. 17637, § 6, 8-30-2011; Ord. No. 18089, §§ 6, 7, 9, 10-29-2013; Ord. No. 18782, § k, 4-17-2018; Ord. No. 019688, § 2, 11-19-2024)
