36-05. Benefits.
1. SERVICE RETIREMENT ALLOWANCE. a. To File Request. Any member in active service may retire on or after reaching the minimum service retirement age, upon filing with the board a request for retirement and a retirement allowance on a form provided by the board for that purpose. The request shall be filed not less than 30 days nor more than 90 days prior to the effective date of retirement. A member whose allowance would be less than $25 per month shall be paid a lump sum amount which is the actuarial equivalent of the allowance and the member shall not be eligible to receive any other benefits under this system. The board may adjust the minimum allowance under this paragraph, 1-a, sub. 6-b-2, sub. 6-b-3, sub. 6-d-2, and sub. 10-a-3, provided however that the minimum monthly allowance of $25 may not be increased by more than the cost of living increase as measured by the increase in the Consumer Price Index-All Urban Consumers-CPI-U U.S. Cities Average as reported by the U.S. Department of Labor Bureau of Labor Statistic between January 1, 1973 and the effective date of the adjustment. A member whose allowance is less than the minimum allowance shall be paid a lump sum amount that is the actuarial equivalent of the allowance in lieu of receiving any other benefits under this system. In the event a policeman who has elected an option under sub. 7 dies between the date of his or her application and the effective date or his or her retirement, the policeman shall be treated as though he or she died immediately after his or her retirement became effective. (Par. a am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972. Par. a am. File #950521, July 28, 1995; eff. Oct. 3, 1995, Par. a am. File #001665, April 10, 2001; eff. June 27,2001. Par. a am. File #010197, June 19, 2001; eff. Aug. 29, 2001. Par. a am. File #020598, July 27, 2004; eff. Oct. 12, 2004.)
b. Minimum Age. The minimum service retirement age shall be, in the case of firemen and policemen, age 57, for members enrolled in the retirement system prior to January 1, 2014, age 60, and for all other members, age 65. (Par. b am. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
d. Retirement Allowance. d-1. General City Employee. For a general city employee enrolled as a member in the retirement system prior to January 1, 2014, a service retirement allowance shall equal 2% of the member's final average salary times the total number of years of all creditable service, including all other creditable and prior service credits at the percentage specified in this act and applied to the member's final average salary in the retirement system as defined in this act. For a general city employee who enrolls as a member in the retirement system on or after January 1, 2014, the service retirement allowance shall equal 1.6% of the member’s final average salary times the total number of years of all creditable service, including all other creditable and prior service credits at the percentage specified in this act and applied to the member’s final average salary in the retirement system as defined in this act. The member shall be guaranteed that if the total benefit in the form of a monthly retirement allowance, either under a maximum allowance or under any optional plan elected by such member pursuant to sub. 7, does not equal the amount of the member's contributions as provided for in s. 36-08-7, together with interest to the date of retirement, then the balance of the member's contributions with interest shall be payable in a lump sum amount to a designated beneficiary or to an estate entitled thereto. The guarantee provided for shall be applicable also to a retirement which was in effect as of January 1, 1971, without adjustment, and shall also be applicable to all retirements which occur after January 1, 1971, and to retirements under subs. 1-e, f and g, 2, 3 and 6. The service retirement allowance for members who retire between January 1, 1989 and December 31, 1994, shall not exceed the lesser of an amount established by the U.S. secretary of the treasury or 100% of final average salary under s. 415 of the Internal Revenue Code. The service retirement allowance for members who retire on or after January 1, 1995 shall not exceed an amount established by the secretary of the treasury under s. 415 of the Internal Revenue Code. (Subd. 1 am. File #890633, July 25, 1989; eff. Oct. 14, 1989. Subd. 1 am. File #961325, Dec. 17, 1996; eff. Mar. 10, 1997. Par. d-1 am. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
d-2. A member shall receive a pro rata retirement allowance based upon the above formula for service for any period less than a full year. (S. 2, Ch. Ord. 344, Nov. 18, 1968.)
d-3. General City, Age 55. Effective January 1, 1996, a general city employee enrolled as a member in the retirement system prior to January 1, 2014, who attains the age of 55 years and completes 30 years of creditable service in the employes' retirement system shall be eligible for a service retirement allowance as computed under subds. 1 and 2. (Subd. 3 cr. File #941981, April 25, 1995, eff. July 12, 1995. Par. d-3 am. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
d-4. General City, Age 60. Not-withstanding subd. 3, effective January 1, 2014, a general city employee who enrolls as a member in the retirement system on or after January 1, 2014, who attains the age of 60 years and completes 30 years of creditable service in the retirement system shall be eligible for a service retirement allowance as computed under subds. 1 and 2. (Par. d-4 cr. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
e. Firemen or Policemen, Creditable Service. The annual service retirement allowance of firemen and policemen shall consist of: (Par. e-0 am. Ch. Ord. 511, File #80-597-b, Oct. 27, 1981.)
e-1. A service retirement allowance equal to 2.25% of the member's final average salary times the number of years of creditable service up to and including 25 years of service and 2.4% of the member's final average salary times the number of years of creditable service thereafter; such credit shall be applicable only to service as a fireman or policeman. Service of policemen in the years 1979 through 1994 and service of firemen commencing March 1, 1983, and thereafter through December 31, 1994, shall be credited at the rate of 2.5% of the member's final average salary per year for each such year of creditable service or part thereof. Firemen and policemen in active service on or after January 1, 1995 shall be credited at the rate of 2.5% of the member's final average salary for each year of creditable service or part thereof as a fireman or policeman. The service retirement allowance of firemen who retire on or after March 1, 1985, and policemen who retire on or after November 3, 1988, shall not exceed 100% of the member's final average salary. The service retirement allowance of policemen who retire on or after July 1, 1989, and firemen who retire on or after March 1, 1989, shall not exceed 90% of the member's final average salary provided, however, that the application of this limitation shall not operate to diminish that portion of a policemen's retirement allowance attributable to creditable service earned through July 1, 1989 or a firemen's retirement allowance attributable to creditable service earned through March 1, 1989. (Subd. 1 am. Ch. Ord. 552, File #85-118-a, July 16, 1985, eff. Sept. 30, 1985. Subd. 1 am. Ch. Ord. 554, File #85-845, Oct. 1, 1985, eff. Dec. 15, 1985. Subd. 1 am. File #872401, May 17, 1988, eff. Aug. 2, 1988. Subd. 1 rc. File #872396, Sept. 20, 1988, eff. Dec. 5, 1988. Subd. 1 am. File #881667, Dec. 20, 1988, eff. March 13, 1989. Subd. 1 am. File #890633, July 25, 1988, eff. Oct. 14, 1989. Subd. 1 am. File #890982, Sept. 19, 1989, eff. Dec. 6, 1989. Subd. 1 am. File #891650, Jan. 16, 1990, eff. Apr. 4, 1990. Subd. 1 am. File #892369, Apr. 9, 1990, eff. June 26, 1990. Subd. 1 am. File #911154, Oct. 15, 1991, eff. Dec. 31, 1991. Subd. 1 am. File #911820, Feb. 11, 1992; eff. Apr. 13, 1992. Subd. 1 am. File #901684, July 28, 1992, eff. Sept. 30, 1992. Subd. 1 am. File #940423, July 15, 1994; eff. Sept. 28, 1994. Subd. 1 am. File #950521, July 28, 1995; eff. Oct. 3, 1995. Subd. 1 am. File #950597, Sept. 27, 1995; eff. Dec. 13, 1995.)
e-2. A fireman or policeman shall receive a pro rata retirement allowance based upon the above formula for service for any period less than a full year. (Subd. 2 rc. Ch. Ord. 344, File #68-726, Nov. 18, 1968.)
f. Firemen or Policemen. A fireman or policeman who has attained the age of 52 years and has completed 25 years of creditable service in the employes' retirement system in that capacity shall be eligible for a service retirement allowance as computed under par. e. A fireman represented by Local 215, IAFF, in active service on or after January 1, 1998, or a fireman who is not represented by Local 215, IAFF, in active service on or after January 1, 2000 shall be eligible for a service retirement allowance as calculated under par. e. if he or she participates in the combined fund and attains the age of 49 years and completes 22 years of creditable service as a fireman or policeman. A policeman represented by the MPA, in active service on or after January 1, 1998, a policeman represented by MPSO, in active service on or after January 1,1999, or a policeman who is not represented by the MPA or MPSO in active service on or after January 1, 2000 shall be eligible for a service retirement allowance as calculated under par. e if he or she participates in the combined fund and completes 25 years of creditable service as a policeman or fireman. A fireman, including a person who was a fireman prior to June 1, 1989, shall have all service in a position whose duty it is to provide emergency medical service included in the computation of creditable service for purposes of determining eligibility for a service retirement allowance under this paragraph and for purposes of computing creditable service under subs. 6-e and 7-b-4. Notwithstanding the foregoing, a policeman who is first enrolled in the retirement system on or after December 20, 2015, shall be eligible for a service retirement allowance calculated under par. e if he or she participates in the combined fund and has attained the age of 50 years and has also completed 25 years of creditable service as a policeman in the retirement system. Notwithstanding the foregoing, a fireman who is first enrolled in the retirement system on or after July 30, 2016, shall be eligible for a service retirement allowance calculated under par. e if he or she participates in the combined fund and has attained the age of 52 years and has also completed 25 years of creditable service as a fireman in the retirement system. (Par. f am. File #900682, Sept. 25, 1990; eff. Dec. 11, 1990. Par. f am. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. f am. File #151274, Feb. 9, 2016; eff. April 26, 2016. Par. f am. File #151451, Feb. 9, 2016; eff. April 26, 2016. Par. f am. File #160124, July 26, 2016; eff. Oct. 11, 2016. Par. f am. File #141568, Sept. 20, 2016; eff. Dec. 6, 2016.)
g. Elected Officials. The annual service retirement allowance for elected officials elected to office by vote of the people, except the mayor, shall equal 2.6% of the member's final average salary times the number of years of creditable service accrued as an elected official for years of service prior to 1996 and 2.5% of the member's final average salary times the number of years of creditable service accrued as an elected official for years of service on or after January 1, 1996. The annual service retirement for the mayor shall equal 2.6% of the mayor's final average salary times the number of years of creditable service accrued for years of service prior to 1996, and 2% of the mayor's final average salary times the number of years of creditable service accrued for years of service on or after January 1, 1996. Notwithstanding the foregoing, the annual service retirement allowance for an elected official who enrolls as a member in the retirement system on or after January 1, 2014, shall equal 1.6% of the member’s final average salary times the number of years of creditable service accrued as an elected official. Service before or after service for elected officials shall be credited at the rate applicable to such service. (Par. g am. File #920411, July 7, 1992; eff. Sept. 22, 1992. Par. g am. File #931035, Nov. 9, 1993; eff. Jan. 29, 1994. Par. g am. File #950766,October 17, 1995; eff. January 2, 1996. Par. g am. File #951082, Nov. 28, 1995; eff. Feb. 13, 1996. Par. g am. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
h. Escalator. h-1. Firemen who retire on a service retirement allowance under subs. 1-b or f or 3-c-3 between March 1, 1990 and December 31, 1992, policemen who retire on a service retirement allowance under subs. 1-b or f or 3-c-3 between January 1, 1990 and December 31, 1992, and firemen or policemen represented by the Milwaukee Police Association, with 25 years of creditable service as a fireman or policeman who separate from service between January 1, 1993 and December 31, 1994 and elect a deferred retirement under sub. 6-e, shall be eligible for a pension escalator in the amount of $50 per month on the 4th annual anniversary of service retirement, an additional escalator of $50 per month on the 7th annual anniversary after service retirement and an additional $50 per month on the 10th annual anniversary after service retirement.
h-3. An escalator under subd. 1 included in a fireman's or policeman's service retirement allowance at the date of death shall be included for purposes of determining a spouse's survivor allowance upon death of such fireman or policeman under Options 2 and 3 and such spouse's survivor allowance under Option 2 shall be escalated in the amount of $50 per month and under Option 3 in the amount of $25 per month at such times as such fireman's or policeman's pension would have been escalated under subd. 1 had the fireman or policeman continued to live. If a fireman or policeman elects Option 4 and selects a reduced service retirement allowance payable in equal installments during the fireman's or policeman's life with the provision that after the fireman's or policeman's death the surviving spouse shall receive an allowance payable in equal installments during the spouse's life which is a proportionate share of the member's reduced service retirement allowance, the escalator under subd. 1 included in the fireman's or policeman's service retirement allowance at the date of death shall be included for purposes of determining the proportionate share of the spouse's survivor allowance upon death of such fireman or policeman and the spouse's survivor allowance shall be escalated by an amount computed by multiplying $50 by the spouse's proportionate share at such times as the fireman's or policeman's service retirement allowance would have been escalated under subd. 1 had the fireman or policeman continued to live. If a fireman or policeman elects Option 4 and selects a reduced service retirement allowance with the provision that after the fireman's or policeman's death the surviving spouse shall receive an allowance but does not select a payout option referred to in this subdivision the escalator included in the fireman's or policeman's service retirement allowance at the date of death shall not be included in determining the spouse's survivor allowance upon death of such fireman or policeman but such spouse's survivor allowance shall be escalated $25 for each escalation the member received or would have been entitled to receive under subd. 1 if the member would have continued to live.
h-4. General city employees who retire on a service retirement allowance under sub. 1-b or 1-d-3, on or after January 1, 1993 (on or after August 16, 1994 for employees represented by the Milwaukee Building and Construction Trades Council, AFL-CIO), and retired general city employees receiving a duty disability retirement allowance, who have attained the minimum service retirement age and convert to service retirement allowance on or after January 1, 1993 (on or after August 16, 1994 for employees represented by the Milwaukee Building and Construction Trades Council, AFL-CIO), shall be eligible for a pension escalator of 2% effective with the installment next following the 8th annual anniversary of service retirement and an additional 2% pension escalator in each successive year effective on each subsequent anniversary of the first adjustment. Each successive adjustment shall be computed on the service retirement allowance as previously adjusted. General city employees receiving retirement benefits under sub. 6-b-2 and 3, 6-c or 6-d-2 shall not be eligible for a pension escalator under this subdivision. If a member who is eligible for an adjustment under this subd. dies without receiving an adjustment prior to death, a beneficiary who is eligible for a spouse survivor allowance under sub. 7-b-2 shall be eligible for a pension escalator in the amount of 2% effective with the installment in which the member would have received an adjustment had the member lived. If the member has received an adjustment under this subd. prior to death, a beneficiary who is eligible for a spouse survivor allowance under sub. 7-b-2 shall be eligible for a pension escalator in the amount of 2% effective with the installment in which the member next would have received an adjustment had the member lived. If a general city employee who has elected a protective survivorship option under sub. 7-b-4 dies on or after January 1, 1993, while in active service, a beneficiary who is eligible for a spouse survivor allowance under sub. 7-b-2 shall be eligible for a pension escalator in the amount of 2% effective with the installment next following the 8th annual anniversary of the commencement of the spouse survivor allowance. After the first adjustment to the spouse survivor allowance, there shall be an additional 2% escalator to the spouse survivor allowance in each successive year effective on each subsequent anniversary of the first adjustment to the spouse survivor allowance. Each successive adjustment to the spouse survivor allowance shall be computed on the spouse survivor allowance as previously adjusted. Beneficiaries, other than spouses receiving survivor benefits under sub. 7-b-2 and 4, shall not be eligible for a pension escalator. After January 1, 2000 this subd. shall not apply to members, retired members (or spouse survivors if the member or retired member is deceased) who participate in the combined fund and spouse survivors of members and retired members who participate in the combined fund.
h-5-a. A general city employee in active service on or after January 1, 2000, who participates in the combined fund and was enrolled as a member of the retirement system prior to January 1, 2014, shall be eligible for an annual pension escalator of 1.5% effective with the installment next following the second, third and fourth anniversary of his or her retirement, and an annual pension escalator of 2% effective with the installment next following the fifth and each successive anniversary of his or her retirement if he or she retires on a service retirement allowance under par. b or d, a deferred retirement allowance under sub. 6-b-2 or d-2, or an immediate allowance under sub. 6-b-3 or c. Each successive annual increase to the member’s allowance under this subd. shall be calculated on the retirement allowance as previously increased. If a member eligible for an adjustment under this subd. retires on a duty disability retirement allowance and converts to a service retirement allowance, the member’s adjustment following conversion shall be first payable with the installment next following the second anniversary of his or her conversion and the percentage increase of the annual escalator payable on each anniversary following conversion shall be calculated by reference to the member’s date of conversion to a service retirement allowance rather than by reference to the member’s date of retirement on disability. If a member who is eligible for an adjustment under this subd. elects a retirement option under sub. 7-b-1, b-2 or b-3 with a spouse survivor allowance payable to the member’s surviving spouse after the member’s death in proportionate share to the member’s reduced retirement allowance, and the member dies after receiving a retirement allowance, the spouse survivor allowance payable on the member’s death shall be calculated as a proportionate share of the member’s retirement allowance including adjustments under this subd. up to the date of death and the spouse survivor allowance shall be increased by an annual pension escalator payable at the same time and in the same percentage as the increase the member would have received, had the member lived. If a member who is eligible for an adjustment under this subd. elects a protective survivorship option under sub. 7-b-4, with a spouse survivor allowance payable on the member’s death in proportionate share to the member’s reduced retirement allowance and the member dies while in active service, the spouse survivor allowance payable on the member’s death, shall be increased by an annual pension escalator to the spouse survivor allowance payable at the same time and in the same percentages as the increases the member would have received had the member retired on the date of the member’s death. Each successive annual increase to the spouse survivor allowance under this subd. shall be calculated on the spouse survivor allowance as previously increased.
h-5-b. A general city employee who enrolls as a member in the retirement system on or after January 1, 2014 and who retires on a service retirement allowance under sub. 1-b or d shall be eligible for an annual pension escalator of 2% effective with the installment next following the fifth anniversary and each successive anniversary of his or her retirement. Each successive annual increase to the member’s allowance under this subparagraph shall be calculated on the retirement allowance as previously increased. General city employees receiving retirement benefits under subs. 2-a, 3, 6-b-2 and 3, 6-c or d-2 shall not be eligible for a pension escalator. If a member who is eligible for an adjustment under this subparagraph dies without receiving an adjustment prior to death, a beneficiary who is eligible for a spouse survivor allowance under subs. 7-b-1, 2 and 3 shall be eligible for a pension escalator in the amount of 2% of the spouse survivor’s proportionate allowance effective with the installment in which the member would have received an adjustment had the member lived. If the member has received an adjustment under this subparagraph prior to death, a beneficiary who is eligible for a spouse survivor allowance under subs. 7-b-1, 2 and 3 shall be eligible for a pension escalator in the amount of 2% of the spouse survivor’s proportionate allowance effective with the installment in which the member next would have received an adjustment had the member lived. If a general city employee who has elected a protective survivorship option under sub. 7-b-4 dies while in active service, a beneficiary who is eligible for a spouse survivor allowance under subs. 7-b-1, 2 and 3 shall be eligible for a pension escalator in the amount of 2% of the spouse survivor’s proportionate allowance effective with the installment next following the fifth annual anniversary of the commencement of the spouse survivor allowance. After the first adjustment to the spouse survivor allowance, there shall be an additional 2% escalator to the spouse survivor allowance in each successive year effective on each subsequent anniversary of the first adjustment to the spouse survivor allowance. Each successive adjustment to the spouse survivor allowance shall be computed on the spouse survivor allowance as previously adjusted. Beneficiaries, other than spouses receiving survivor benefits under sub. 7-b, shall not be eligible for a pension escalator.
h-5-c. City employees represented by Milwaukee District Council 48, AFSCME, AFL-CIO, the Technicians, Engineers and Architects of Milwaukee, the Association of Scientific Personnel, the Association of Municipal Attorneys, SEIU Healthcare District 1199 Wisconsin/Staff Nurses Council, Local 195, IBEW, AFL-CIO, Local 75, Journeyman Plumbers and Gasfitters Union, AFL-CIO , Local 494, IBEW, AFL-CIO, Machine Shop, District 10, IAMAW, AFL-CIO, Joint Bargaining Unit Local 139, IUOE, AFL-CIO/Milwaukee District Council 48, AFSCME, AFL-CIO, Local 494, IBEW, AFL-CIO, Fire Equipment Dispatchers, Public Employees’ Union #61, LIUNA, AFL-CIO, CLC, and nonmanagement/nonrepresented employes who during the calendar years 2010 and 2011 retire from active service on a normal service retirement allowance, including allowances under par. d-3, or on an immediate retirement allowance under par. 6-c, and their surviving spouses, shall receive a 2% pension escalator effective with the installment next following the first anniversary of their retirement. City employees represented by Local 494, IBEW-AFL-CIO, Electrical Group, who during the period commencing June 1, 2010, and ending December 31, 2011, retire from active service on a normal service retirement allowance, including allowances under par. d-3, or on an immediate retirement allowance under par. 6-c, and their surviving spouses, shall receive a 2% pension escalator effective with the installment next following the first anniversary of their retirement. Employees of Milwaukee public schools represented by Milwaukee Building and Construction Trades Council, AFL-CIO, who during the period commencing August 1, 2010, and ending December 31, 2010, retire from active service on a normal service retirement allowance, including allowances under par. d-3, or on an immediate retirement allowance under par. 6-c, and their surviving spouses, shall receive a 2% pension escalator effective with the installment next following the first anniversary of their retirement. Employees of Milwaukee public schools represented by, and clerical employees exempt from, Local 1053, AFL-CIO, District Council 48, and employees of Milwaukee public schools represented by Local 1616, AFL-CIO, District Council 48, who during the period commencing June 21, 2011, and ending December 31, 2011, retire from active service on a normal service retirement allowance, including allowances under par. d-3, or on an immediate retirement allowance under par. 6-c, and their surviving spouses, shall receive a 2% pension escalator effective with the installment next following the first anniversary of their retirement. City employees represented by Milwaukee Building and Construction Trades Council, AFL-CIO, who during the period commencing August 1, 2010, and ending December 31, 2011, retire from active service on a normal service retirement allowance, including allowances under par. d-3, or on an immediate retirement allowance under par. 6-c, and their surviving spouses, shall receive a 2% pension escalator effective with the installment next following the first anniversary of their retirement.
h-6. Firemen or policemen in active service on or after January 1, 1993, who become eligible to retire on a service retirement allowance under sub. 1-b or f on or after January 1, 1993, firemen or policemen who retire on a duty disability retirement allowance of 75% of current annual salary for their position under sub. 3-c-1-a between January 1, 1993 and December 31, 1994 and thereafter convert to a service retirement allowance under sub. 3-c-3-c, policemen in active service on or after January 1, 1995 who separate from service with 25 years of creditable service as a policeman and elect a deferred retirement allowance under sub. 6-e, firemen or policemen who retire on a duty disability allowance of 75% of current salary for their position under sub. 3-c-1-a on or after January 1, 1995 and who are eligible to elect between a service retirement allowance and a duty disability allowance under sub. 3-c-3-f, firemen or policemen who participate in the combined fund and who separate from service on or after January 1, 2000, and elect a deferred retirement under sub. 6-b-2, d-2 or e, and firemen or policemen who participate in the combined fund and who separate from service on or after January 1, 2000 and elect an immediate allowance under sub. 6-b-3 or c shall have the monthly service retirement pension installment which they received in the preceding December increased by the cost of living increase as measured by the increase in the Consumer Price Index (All Urban Consumers - CPI-U) U.S. Cities Average as reported by the U.S. Department of Labor, Bureau of Labor Statistics, for the preceding calendar year, but in no event shall such increase be in an amount which exceeds 3% of such installment. For firemen or policemen who become eligible to retire on service retirement allowance between January 1, 1993 and December 31, 1994, and firemen or policemen who retire on a duty disability allowance between January 1, 1993 and December 31, 1994 and subsequently convert to service retirement allowance, the first increase in the monthly installment shall occur on March 1 of the calendar year following the first full calendar year of the member's service retirement or conversion to a service retirement and subsequent increases in the monthly installment shall occur in the installment next following each subsequent anniversary on March 1 of each calendar year thereafter. For firemen or policemen who retire or become eligible to retire on a service retirement allowance on or after January 1, 1995, policemen who separate from active service on or after January 1, 1995 and elect a deferred retirement allowance under sub. 6-f, firemen or policemen who retire on a duty disability allowance on or after January 1, 1995, and firemen and policemen who participate in the combined fund and who separate from active service on or after January 1, 2000 and elect a deferred retirement under sub. 6-b-2, d-2 or e, or an immediate allowance under sub. 6-b-3 or c, the first increase shall occur in the monthly installment next following the first full year of the member's service retirement, deferred retirement, immediate allowance or election between a service retirement or duty disability retirement and subsequent increases in the monthly installment shall occur in the installment next following each annual anniversary thereafter. If a member who is eligible for an increase under this subd. selects a retirement option under sub. 7-b-1, b-2, b-3 or b-4 with a spouse survivor allowance payable to the member's surviving spouse after the member's death in a proportionate share to the member's reduced service retirement allowance, the spouse survivor allowance payable on death shall be computed based on the amount of the member's service retirement allowance including increases under this subd. at the date of death and the monthly survivor allowance installment shall be increased by the cost of living as calculated in the manner provided for the member under this subd. If the member dies after service retirement but prior to receiving an increase pursuant to this subd., the spouse survivor allowance shall be increased effective with the pension installment in which such member would have received an increase had the member lived. If the member dies after having received an increase prior to death under this subd., the spouse survivor allowance shall be increased effective with the pension installment in which the member would have received the next increase had the member lived. If the member has selected a retirement option under sub. 7-b-4 and dies in active service on or after January 1, 1993, the spouse survivor allowance shall be increased effective with the pension installment payable March 1 of the calendar year next following the first full calendar year after the member's death. After the first increase to the spouse survivor allowance monthly installment, there shall be an additional increase for the cost of living in the spouse survivor allowance calculated in the manner provided for the member under this subd. in each successive year effective with the pension installment on the anniversary of the previous increase to the survivor allowance. Except as otherwise specifically provided herein, this subd. shall not apply to firemen or policemen or the spouse survivors of firemen or policemen who receive a retirement allowance authorized under sub. 6-b-2, 6-b-3, 6-c or 6-d-2.
h-7. A fireman represented by Local 215, in active service on or after January 1, 1998, a policeman represented by the MPA, in active service on or after January 1, 1998, a policeman represented by the MPSO, in active service on or after January 1, 1999, or an unrepresented policeman and fireman in active service on or after January 1, 2000 (and his or her spouse survivor if the member is deceased), shall receive a minimum annual cost of living adjustment at the time of their annual cost of living adjustment under subd. 6 of not less than 2% if the member participates in the combined fund and retires on a service retirement allowance under par. b or f, or if the member participates in the combined fund and dies in active service after electing a protective survivor option with a spouse survivor receiving a proportional share of the member’s pension. The minimum annual cost of living adjustment shall be calculated on the service retirement allowance or spouse survivor allowance as previously increased. (Par. h cr. File #891650, Jan. 16, 1990; eff. April 4, 1990. Par. h rn to h-1 File #900239, July 10, 1990; eff. Sept. 25, 1990. Par. h-1 am. File #940423, July 15, 1994; eff. Sept. 28, 1994. Par. h-1 am. File #950521, July 28, 1995; eff. Oct. 3, 1995. Par. h-1 am. File #950597, Sept. 27, 1995; eff. Dec. 13, 1995. Par. h-2 cr. File #900239, July 10, 1990; eff. Sept. 25, 1990. Par. h-2 rp. File #950521, July 28, 1995; eff. Oct. 3, 1995. Par. h-3 cr. File #900239, July 10, 1990; eff. Sept. 25, 1990. Par. h-3 am. File #911154, Oct. 15, 1991; eff. Dec. 31, 1991. Par. h-4 cr. File #921978, April 8, 1993; eff. June 16, 1993. Par. h-4 am. File #940667, July 29, 1994; eff. Oct. 17, 1994. Par. h-4 am. File 941981, April 25, 1995; eff. July 12, 1995. Par. h-4 am. File #950869, Oct. 17, 1995; eff. Jan. 2, 1996. Par. h-4 csra. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. h-5 cr. File #921978, April 8, 1993; eff. June 16, 1993. Par. h-5 csra, (h-5 consolidated as part of h-4) File #991585, April 11, 2001,eff. Jan. 19, 2001. Par. h-5 cr. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. h-6 cr. File #940423, July 15, 1994; eff. Sept. 29, 1994. Par. h-6 am. File #950521, July 28, 1995; eff. Oct. 3, 1995. Par. h-6 am. File #950597, Sept. 27, 1995; eff. Dec. 13, 1995. Par. h-6 am File #991585, April 11, 2000; eff. January 19, 2001. Par. h-7 cr. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. h-5 rn to h-5-a, File #090613, Sept. 22, 2009, eff. Dec. 9, 2009. Par. h-5-b cr. File #090613, Sept. 22, 2009, eff. Dec. 9, 2009. Par. h-5-b am. File #090951, Dec. 1, 2009, eff. Feb. 16, 2010. Par. h-5-b am. File #091068, Dec. 22, 2009; eff. March 10, 2010. Par. h-5-b am. File #091214, Jan. 20, 2010; eff. April 5, 2010. Par. h-5-b am. File #091308, Mar. 2, 2010; eff. May 18, 2010. Par. h-5-b am. File #091530, Mar. 24, 2010; eff. June 1, 2010. Par. h-5-b am. File #091609, May 25, 2010; eff. August 10, 2010. Par. h-5-b am. File #100173, June 15, 2010; eff. August 25, 2010. Par. h-5-b am. File #100241, July 7, 2010; eff. Sept. 22, 2010. Par. h-5-b am. File #100574, Sept. 21, 2010; eff. Dec. 6, 2010. Par. h-5-b am. File #101070, Jan. 19, 2011; eff. March 29, 2011. Par. h-5-b am. File #101418, April 12, 2011; eff. June 28, 2011. Par. h-5-a am File #121701, May 21, 2013; eff. Aug. 10, 2013. Par. h-5-b rn to c File #121701, May 21, 2013; eff. Aug. 10, 2013. Par. h-5-b cr. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
i. Employees retired prior to January 1, 1993.
i-1. The benefits payable under this paragraph are not deferred compensation for services performed by retired members. Any provision of ch. 36 to the contrary notwithstanding, the benefits payable under this paragraph and the terms and conditions under which they are payable are neither contractually guaranteed by the city and the board nor vested in any beneficiary thereof. The city expressly reserves the unilateral right to amend or repeal this paragraph without notice and hearing to or consent of any beneficiary. Members and survivors who separated and received benefits under sub. 6-b-2, 6-b-3, c, d-2 or e shall not be eligible for benefits under this paragraph. This subd. shall not apply on or after January 1, 2000 to retired members and spouse survivors who participate in the combined fund.
i-1-a. Members who retired prior to October 1, 1987 on a service retirement allowance under par. b or f and members who retired on a duty disability allowance and converted to a service retirement allowance under sub. 3-b or 3-c-3 prior to October 1, 1987 shall be eligible for a catch-up adjustment to their service retirement allowance payable with the first installment next following January 1, 1996. Such adjustment shall be a percentage change to the retirement allowance equal to the greater of the total percentage change in the cost of living for each full calendar month between the eighth anniversary of the member's service retirement and October 1, 1995 or the total percentage change required to bring the member's allowance to 60% of the whole inflation adjusted value of the member's allowance at the time of retirement. The percentage change in the cost of living shall be measured by the increase in the Consumer Price Index (All Urban Consumers - CPI-U) U.S. Cities as reported by the U.S. Department of Labor, Bureau of Labor Statistics. The whole inflation adjusted value of a pension at the time of retirement shall be the sum of the product of the service retirement allowance at the time of retirement multiplied by the total percentage change in the cost of living during each full calendar month between retirement and October 1, 1995 added to the member's service retirement allowance at the time of retirement. Beneficiaries other than spouses receiving survivor benefits or protective survivor benefits shall not be eligible for benefits under this subparagraph. If a member eligible for a service retirement allowance under par. b or f elected a protective survivor option, expressed as a percentage of the member's pension, and died while in active service prior to October 1, 1987, the surviving spouse under such option shall be eligible for a catch-up adjustment to their survivor allowance payable with the first installment next following January 1, 1996 in a percentage change to the survivor allowance equal to the greater of the total percentage change in the cost of living for each full calendar month between the eighth anniversary of the member's death and October 1, 1995 or the total percentage change required to bring the survivor allowance to 60% of the whole inflation adjusted value of the survivor allowance at the date of death. If a member, who retired prior to October 1, 1987 on a service retirement allowance under par. b or f, elected a spouse survivor option, expressed as a percentage of the member's pension, and died following retirement, but prior to October 1, 1995, the surviving spouse under such option shall be eligible for a catch-up adjustment to their survivor allowance payable with the first installment next following January 1, 1996 in a percentage change to the survivor allowance equal to the greater of the total percentage change in the cost of living for each full calendar month between the eighth anniversary of the member's retirement and October 1, 1995 or the total percentage change required to bring the survivor allowance to 60% of the whole inflation adjusted value of the spouse survivor allowance at the time of the member's retirement. If a member, retired prior to October 1, 1987 on a service retirement allowance under par. b or f, elected a spouse survivor option, expressed as a percentage of the member's pension and dies while eligible for catch-up under subpar. a, the surviving spouse under such option shall have the member's catch-up included in the member's allowance in calculating the spouse survivor allowance expressed as a percentage of the member's allowance.
i-2-a. Members who retired prior to January 1, 1993 on a service retirement allowance under par. b or f and members who retired on a duty disability allowance and converted to a service retirement allowance under sub. 3-b or 3-c-3 prior to January 1, 1993 shall be eligible for a pension escalator to their service retirement allowance of up to 2% effective with the installment next following the later of the 8th annual anniversary of service retirement or January 1, 1996 and an additional pension escalator of up to 2% in each successive year effective on each subsequent anniversary of the first adjustment. The first escalator shall be computed on the service retirement allowance as previously adjusted under subd. 1-a. Each successive escalator shall be computed on the service retirement allowance as previously escalated. The payment of each pension escalator or successive escalator first payable in 1997 or in a year subsequent to 1997 shall be subject to the limitations of s. 36-08-2-a. Beneficiaries other than spouses receiving survivor benefits or protective survivor benefits under sub. 7-b-2 shall not be eligible for benefits under this subparagraph. If a member, who elected a spouse survivor option and retired prior to January 1, 1993 on a service retirement allowance under par. b or f, dies, a surviving spouse who is eligible for a spouse survivor allowance under sub. 7-b-2 shall be eligible for a spouse survivor pension escalator to their survivor allowance of up to 2% effective with the installment next following the later of the 8th anniversary of the member's service retirement or January 1, 1996. If a member elected a protective survivor option and died prior to January 1, 1993 while in active service, a surviving spouse who is eligible for a spouse survivor allowance under sub. 7-b-2 shall be eligible for a spouse survivor pension escalator to their spouse survivor allowance of up to 2% effective with the installment next following the later of the eighth anniversary of the member's death or January 1, 1996. A spouse receiving a spouse survivor pension escalator shall be eligible for an additional escalator of up to 2% in each successive year effective on each subsequent anniversary of the first escalator to the spouse survivor allowance. The first escalator shall be calculated on the spouse survivor allowance as previously adjusted under this subd. Each successive escalator to the spouse survivor allowance shall be computed on the spouse survivor allowance as previously escalated. The payment of each escalator or successive escalator first payable in 1997 or in a year subsequent to 1997 shall be subject to the limitations of s. 36-08-2-a. After January 1, 2000 this subpar. shall not apply to members, retired members or spouse survivors (if the member or retired member is deceased) who participate in the combined fund and spouse survivors of members and retired members who participate in the combined fund.
i-2-b. Effective January 1, 2000, the annual escalator payable under par. h-5-a shall be extended to a general city employee, fireman or policeman, retired on a service retirement allowance under par. b, d-3 or f, a general city employee, a fireman or policeman, retired on a duty disability retirement allowance who converted to a service retirement allowance or a general city employee, a fireman or policeman separated from service who retired on a deferred retirement allowance under sub. 6-b-2, d-2 or e or an immediate allowance under sub. 6-b-3 or c and their spouse survivor eligible to receive a proportionate share of the member’s allowance if the member (or spouse survivor if the member is deceased) is a participant in the combined fund and the member is a general city employee retired on a service retirement allowance, duty disability retirement allowance or separated from service prior to January 1, 2000 or a fireman or policeman retired on a service retirement allowance, duty disability retirement allowance or separated from service prior to January 1, 1993. If a member eligible for an escalator under this subpar. was eligible for an annual escalator under subpar. a prior to January 1, 2000, the annual escalator payable under this subpar. shall be effective upon the anniversary of the escalator payable under subpar. a if such anniversary is different from the anniversary of the installment next following service retirement. If a member referred to above retires on a duty disability retirement allowance and converts to a service retirement allowance the conversion date shall be used for purposes of determining both the eligibility and the percentage increase of the annual escalator to which the member or spouse survivor is eligible. Effective January 1, 2000, the annual escalator payable under par. h-6 shall be extended to a fireman and policeman who retired on a duty disability retirement allowance of 75% of current salary for their position under sub. 3-c-1-a between October 17, 1992 and December 31, 1994 if he or she is eligible to elect between a service retirement allowance and a duty disability allowance under sub. 3-c-f effective with the installment next following one year after eligibility for an election to convert to a service retirement. Effective January 1, 2000 the annual escalator payable under par. h-6 shall be extended to a fireman or policeman who separated from service between January 1, 1993 and December 31, 1999 and retired on a deferred retirement allowance under sub. 6-b-2 or 6-d-2 or separated from service between January 1, 1995 and December 31, 1999 and retired on a deferred retirement allowance under sub. 6-e or separated from service between January 1, 1993 and December 31, 1999 and retired on an immediate allowance under sub. 6-b-3 or c and his or her spouse survivor eligible to receive a proportionate share of the member’s allowance if the member (or spouse survivor if the member is deceased) is a participant in the combined fund and the member separated from service prior to January 1, 2000. If a member who is eligible for an increase under this subpar. dies on or after January 1, 2000 his or her spouse’s proportionate share of spouse survivor allowance shall be computed based on the amount of the deceased member’s allowance including increases at the date of death and the spouse survivor shall be eligible for an annual escalator to his or her spouse survivor allowance at the same time and in the same percentages as the deceased member would have received had the deceased member continued to live. (Par. i cr. File #942016, July 14, 1995; eff. Sept. 27, 1995. Par. i-1-0 am. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. i-1-a and b csrn. to i-1-a, File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. i-2-a and b csra. to i-2-a, File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. i-2-b cr. File # 991585, April 11, 2000; eff. Jan. 19, 2001. Par. i-2-b am. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
j. Internal Revenue Code. In this paragraph, for purposes of testing under s. 415 of the Internal Revenue Code, the limitation year shall be the calendar year.
j-1. Requirements. Notwithstanding any other provisions of the retirement system to the contrary, the member contributions paid to and retirement benefits paid from the plan shall be limited to such extent as may be necessary to conform to the requirements of s. 415 of the Internal Revenue Code for a qualified pension plan.
j-2. Participation in Other Qualified Plans: Aggregation of Limits.
j-2-a. The s. 415(b) of the Internal Revenue Code limit with respect to any member who at any time has been a member in any other defined benefit plan as defined in s. 414(j) of the Internal Revenue Code maintained by the member's employer in this plan shall apply as if the total benefits payable under all such defined benefit plans in which the member has been a member were payable from one plan.
j-2-b. The s. 415(c) of the Internal Revenue Code limit with respect to any member who at any time has been a member in any other defined contribution plan as defined in s. 414(i) of the Internal Revenue Code maintained by the member's employer in this plan shall apply as if the total annual additions under all such defined contribution plans in which the member has been a member were payable from one plan.
j-3. Basic 415(b) Limitation.
j-3-a. Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in s. 415(b) of the Internal Revenue Code, subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in s. 415(b)(1)(A) of the Internal Revenue Code, subject to the applicable adjustments in s. 415(b) of the Internal Revenue Code and subject to any additional limits that may be specified in the retirement system. In no event shall a member’s annual benefit payable under the plan in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to s. 415(d) of the Internal Revenue Code and the regulations thereunder.
j-3-b. For purposes of s. 415(b) of the Internal Revenue Code, "annual benefit" means a benefit payable annually in the form of a straight life annuity, with no ancillary benefits, without regard to the benefit attributable to after-tax employee contributions, except pursuant to s. 415(n) of the Internal Revenue Code, and to rollover contributions as defined in s. 415(b)(2)(A) of the Internal Revenue Code. The "benefit attributable" shall be determined in accordance with U.S. treasury regulations.
j-3-c. The annual pension benefit payable to a member who has a freeze date specified in this paragraph shall not be less than the member's old law benefit. A member's old law benefit shall be the benefit the member was entitled to as of December 31, 1994 (the "freeze date") determined without regard to any changes in the terms and conditions of the retirement system after December 8, 1994.
j-4. Adjustments to Basic 415(b) Limitation for Form of Benefit.
j-4-a. If the benefit under the plan is other than the form specified in par. j-3, then the benefit shall be adjusted so that it is the equivalent of the annual benefit, using factors prescribed in U.S. treasury regulations.
j-4-b. If the form of benefit without regard to the automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor annuity, then subpar. a is applied by either reducing the s. 415(b) of the Internal Revenue Code limit applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent amount, determined using the assumptions specified in U.S. treasury regulation s. 1.415(b)-1(c)(2)(ii), that takes into account the additional benefits under the form of benefit as follows:
j-4-b-1 For a benefit paid in a form to which s. 417(e)(3) of the Internal Revenue Code does not apply (generally, a monthly benefit), the actuarially equivalent straight life annuity benefit that is the greater of:
j-4-b-1-a. The annual amount of the straight life annuity ,if any, payable to the member under the plan commencing at the same annuity starting date as the form of benefit to the member; or
j-4-b-1-b. The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using a 5% interest assumption ,or the applicable statutory interest assumption; and
j-4-b-1-b-1. For years prior to January 1, 2009, the applicable mortality tables described in U.S. treasury regulation s. 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62); and
j-4-b-1-b-2. For years after December 31, 2008, the applicable mortality tables described in s. 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing s. 417(e)(3)(B) of the Internal Revenue Code); or
j-4-b-2. For a benefit paid in a form to which s. 417(e)(3) of the Internal Revenue Code applies (generally, a lump sum benefit), the actuarially equivalent straight life annuity benefit that is the greatest of:
j-4-b-2-a. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience; or
j-4-b-2-b. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using a 5.5 percent interest assumption, or the applicable statutory interest assumption; and
j-4-b-2-b-1. For years prior to January 1, 2009, the applicable mortality tables for the distribution under U.S. treasury regulation s. 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62); and
j-4-b-2-b-2. For years after December 31, 2008, the applicable mortality tables described in s. 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing s. 417(e)(3)(B) of the Internal Revenue Code); or
j-4-b-2-c. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit computed under U.S. treasury regulation s. 1.417(e)-1(d)(3); and
j-4-b-2-c-1.or years prior to January 1, 2009, the applicable mortality tables for the distribution under U.S. treasury regulation s. 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62); and
j-4-b-2-c-2. For years after December 31, 2008, the applicable mortality tables described in s. 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing s. 417(e)(3)(B) of the Internal Revenue Code), divided by 1.05.
j-4-c. The actuary may adjust the 415(b) of the Internal Revenue Code limit at the annuity starting date in accordance with subpar. b-1 and 2.
j-5. Benefits For Which No Adjustment of the 415(b) Limit is Required.
For purposes of this section, the following benefits shall not be taken into account in adjusting these limits:
j-5-a. Any ancillary benefit which is not directly related to retirement income benefits.
j-5-b. That portion of any joint and survivor annuity that constitutes a qualified joint and survivor annuity.
j-5-c. Any other benefit not required under s. 415(b)(2) of the Internal Revenue Code and U.S. treasury regulations thereunder to be taken into account for purposes of the limitation of s. 415(b)(1) of the Internal Revenue Code.
j-6. Other Adjustments in 415(b) Limitation.
j-6-a. If the member's retirement benefits become payable before age 62, the limit prescribed by this paragraph shall be reduced in accordance with U.S. treasury regulations pursuant to the provisions of s. 415(b) of the Internal Revenue Code, so that such limit, as so reduced, equals an annual straight life benefit, when such retirement income benefit begins, which is equivalent to a $160,000, as adjusted, annual benefit beginning at age 62.
j-6-b. If the member's benefit is based on at least 15 years of service as a full-time employee of any police or fire department or on 15 years of military service, the adjustments provided for in subpar. a shall not apply.
j-6-c. The reductions provided for in subpar. a shall not be applicable to pre-retirement disability benefits or pre-retirement death benefits.
j-7. Less than 10 Years of Participation or Service Adjustment for 415(b) Limitations. The maximum retirement benefits payable to any member who has completed less than 10 years of participation shall be the amount determined under subd. 3, as adjusted under subd. 4 or subd. 6, multiplied by a fraction, the numerator of which is the number of the member's years of participation and the denominator of which is 10. The limit under subd. 8 concerning the $10,000 limit shall be similarly reduced for any member who has accrued less than 10 years of service, except the fraction shall be determined with respect to years of service instead of years of participation. The reduction provided by this subdivision cannot reduce the maximum benefit below 10% of the limit determined without regard to this subdivision. The reduction provided for in this subdivision shall not be applicable to pre-retirement disability benefits or pre-retirement death benefits.
j-8. $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a member shall be deemed not to exceed the s. 415 of the Internal Revenue Code limit if the benefits payable, with respect to such member under this plan and under all other qualified defined benefit pension plans to which the member's employer contributes, do not exceed $10,000 for the applicable limitation year and for any prior limitation year and the employer has not at any time maintained a qualified defined contribution plan in which the member participated.
j-9. Effect of COLA without a Lump Sum Component on 415(b) Testing. Effective on and after January 1, 2009, for purposes of applying the limits under s. 415(b) of the Internal Revenue Code (the "Limit") to a member with no lump sum benefit, all of the following shall apply:
j-9-a. A member’s applicable Limit shall be applied to the member's annual benefit in the member's first limitation year without regard to any cost-of-living adjustments under pars. h and i.
j-9-b. To the extent that the member's annual benefit equals or exceeds the Limit, the member shall no longer be eligible for cost-of-living increases until such time as the benefit plus the accumulated increases are less than the Limit. Thereafter, in any subsequent limitation year, a member’s annual benefit, including any cost-of-living increases under pars. h and i, shall be tested under the then-applicable benefit Limit, including any adjustment to the s. 415(b)(1)(A) of the Internal Revenue Code dollar limit under s. 415(d) of the Internal Revenue Code, and the regulations thereunder.
j-10. Effect of COLA with a Lump Sum Component on 415(b) Testing. On and after January 1, 2009, with respect to a member who receives a portion of the member's annual benefit in a lump sum, a member's applicable Limit shall be applied taking into consideration cost-of-living increases as required by s. 415(b) of the Internal Revenue Code and applicable U.S. treasury regulations.
j-11. Repayments of Cashouts. Any repayment of contributions, including interest, to the plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or another governmental plan maintained by the retirement system, a retirement system sponsored by the state of Wisconsin or by a unit of local government in the state of Wisconsin shall not be taken into account for purposes of s. 415 of the Internal Revenue Code, in accordance with applicable U.S. treasury regulations.
j-12. Reduction of Benefits Priority. Reduction of benefits or contributions to all plans, where required, shall be accomplished by first reducing the member's benefit under any defined benefit plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be determined by the plan and the plan administrators of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be established by the plan and the plan administrators for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the plans and the plan administrators of all other plans covering such member.
j-13. Section 415(c) Limitations on Contributions and Other Additions.
j-13-a. For purposes of this subdivision, effective January 1, 2002, unless otherwise provided, after-tax member contributions or other annual additions with respect to a member may not exceed the lesser of either:
j-13-a-1. $40,000, as adjusted pursuant to s. 415(d) of the Internal Revenue Code; or
j-13-a-2. 100% of the member's compensation.
j-13-b. Annual additions are defined to mean the sum, for any year, of employer and member contributions to a defined contribution plan, post-tax member contributions to a defined benefit plan, except for purposes of service purchases, and forfeitures credited to a member's individual account. Member contributions are determined without regard to rollover contributions and without regard to employee contributions to a simplified employee pension which are excludable from gross income under s. 408(k)(6) of the Internal Revenue Code and to picked-up employee contributions that are paid to a defined benefit plan. The compensation limit referred to in subpar. a-2 shall not apply to any contribution for medical benefits, within the meaning of s. 419A(f)(2) of the Internal Revenue Code, after separation from service which is treated as an annual addition.
j-13-c. For purposes of applying s. 415(c) of the Internal Revenue Code and for no other purpose, the definition of “compensation”, where applicable, shall be compensation actually paid or made available during a limitation year, except as noted below and as permitted by U.S. treasury regulation s. 1.415(c)-2, or successor regulation. However, member contributions picked up under s. 414(h) of the Internal Revenue Code shall not be treated as compensation.
j-13-d. “Compensation” shall be defined as wages within the meaning of s. 3401(a) of the Internal Revenue Code and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under ss. 6041(d), 6051(a)(3) and 6052 of the Internal Revenue Code, and shall be determined without regard to any rules under s. 3401(a) of the Internal Revenue Code that limit the remuneration included in wages based on the nature or location of the employment or the services performed, such as the exception for agricultural labor in s. 3401(a)(2) of the Internal Revenue Code. However, the following adjustments shall also apply:
j-13-d-1. For limitation years beginning on and after January 1, 2002, “compensation” shall also include amounts that would otherwise be included in compensation but for an election under ss. 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the Internal Revenue Code. “Compensation” shall also include any elective amounts that are not includible in the gross income of the member by reason of s. 132(f)(4) of the Internal Revenue Code.
j-13-d-2. For limitation years beginning on and after January 1, 2009, “compensation” for the limitation year shall also include compensation paid by the later of 2½ months after a member's severance from employment or the end of the limitation year that includes the date of the member's severance from employment if any of the following are true:
j-13-d-2-a. The payment is regular compensation for services during the member's regular working hours, or compensation for services outside the member's regular working hours, such as overtime or shift differential, commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the member while the member continued in employment with the employer; or
j-13-d-2-b. The payment is for unused accrued bona fide sick, vacation or other leave that the member would have been able to use if employment had continued; or
j-13-d-2-c. Payments pursuant to a nonqualified unfunded deferred compensation plan, but only if the payments would have been paid to the member at the same time if the member had continued employment with the employer and only to the extent that the payment is includible in the member's gross income.
j-13-d-3. Any payments not described in subpar. d-2 are not considered compensation if paid after severance from employment, even if they are paid within 2½ months following severance from employment, except for payments to the individual who does not currently perform services for the employer by reason of qualified military service, within the meaning of s. 414(u)(1) of the Internal Revenue Code, to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the employer rather than entering qualified military service.
j-13-d-4. An employee who is in qualified military service, within the meaning of s. 414(u)(1) of the Internal Revenue Code, shall be treated as receiving compensation from the employer during such period of qualified military service equal to whichever of the following is applicable:
j-13-d-4-a. The compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for the absence during the period of qualified military service; or
j-13-d-4-b. If the compensation the employee would have received during such period was not reasonably certain, the employee's average compensation from the employer during the 12-month period immediately preceding the qualified military service, or, if shorter, the period of employment immediately preceding the qualified military service.
j-13-d-5. Back pay, within the meaning of U.S. treasury regulation s. 1.415(c)-2(g)(8), shall be treated as “compensation” for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.
j-13-e. If the annual additions for any member for a plan year exceed the limitation under s. 415(c) of the Internal Revenue Code, the excess annual addition shall be corrected as permitted under the Employee Plans Compliance Resolution System or similar Internal Revenue Service correction program.
j-13-f. For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this subdivision shall not exceed the annual limit under s. 401(a)(17) of the Internal Revenue Code. (Par. j cr. File #060488, Sept. 26, 2006; eff. Dec. 12, 2006. Par. j rc. File #150113; June 2, 2015; eff. August 18, 2015.)
2.
ORDINARY DISABILITY RETIRE-MENT ALLOWANCE. a. Years of Service. a-1. Upon the application for ordinary disability retirement made by a member in active service, or the head of the department or agency employing him where such member is prevented from filing because he is incapacitated, and who has had 10 or more years of creditable service such member may be retired by the board not less than 30 and not more than 90 days next following the date of filing such application for an ordinary disability retirement allowance, provided the medical council, after a medical examination of such member, shall certify that such member is mentally or physically incapacitated for the further performance of duty, that such incapacity is likely to be permanent, and that such member should be retired. (Subd. 1 am. Ch. Ord, 382, File #71-2300, Mar. 21, 1972.)
a-2. If, however, such member has less than 10 years of creditable service, he may apply for disability retirement allowance, but such allowance shall be limited in the duration of its payment to a period of time equal to 1/4 of the entire period of service rendered by such member. If a member granted a limited disability retirement allowance under this subsection is not restored to active service, there shall be refunded to him at the time of the termination of his retirement allowance a lump sum equal in amount to the difference between the amount of his accumulated contributions at the time of his retirement and the sum of the payments actually made to him during his disability retirement which is the actuarial equivalent of his accumulated contributions, conditioned as provided in sub. 6-a. (Subd. 2 am Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
a-3. Any pre-existing physical condition as determined from a medical examination conducted for the city in connection with the employment of a member shall be deemed a bar to coverage of any disability benefits under this act as a direct or indirect result of such disability. (Subd. 3 cr. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
a-4. A fireman whose duty it is to provide emergency medical services and who was enrolled as a fireman on June 1, 1989, shall continue to be eligible for an ordinary disability retirement allowance under pars. a and b for a period of 5 years from the date of enrollment as a fireman and shall have all service in a position whose duty it is to provide emergency medical services included for the purpose of computation of creditable service under this par. and the computation of the entire period of service under par. b. (Subd. 4 cr. File #890598, July 25, 1989; eff. Oct. 14, 1989.)
b. Disability Allowance. The ordinary disability retirement allowance shall consist of 90% of the service retirement allowance based on the creditable service to the time of disability, with a minimum allowance of 25% of his final average salary, provided that no retirement allowance shall exceed 90% of the allowance the member would receive were his service continued to the minimum service retirement age. (Par. b am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
c. Firemen and Policemen. Firemen and policemen shall be entitled to ordinary disability benefits as stated hereafter:
c-1. Firemen and policemen who are retired on ordinary disability prior to January 1, 1971, shall be entitled to benefits provided in pars. a and b.
c-2. Firemen and policemen hired before January 1, 1971, but who were in active service on or after January 1, 1971, shall select either the benefits provided in pars. a and b, or the benefits provided under subd. 3.
c-3. The minimum ordinary disability retirement allowance shall consist of an amount equal to 25% of the member's final average salary provided he or she has 5 years of service as a fireman or policeman; for each year of service in excess of 5 years of such service as a fireman or policeman, he shall receive an additional 2% of his or her final average salary. The maximum ordinary disability retirement allowance which shall be payable to any fireman or policeman member on ordinary disability under this subsection shall be limited to 50% of such member's final average salary. Firemen or policemen shall receive a pro rata retirement allowance based upon this formula for service for any period less than a full year. (Subd. 3 am. File #020471, July 16, 2002; eff. Oct. 1, 2002.)
c-4. Firemen and policemen hired after January 1, 1971, shall be entitled to the benefits provided in subd. 3 and shall be entitled to no other selection. (Subd. 4 cr. Ch. Ord. 394, File #72-1435, Nov. 14, 1972.)
d. Death Prior to Retirement. In the event a policeman or general city employee who applies for an ordinary disability retirement allowance on or after January 1, 1985 or a fireman who applies for an ordinary disability retirement allowance on or after March 1, 1985, dies prior to retirement but after selecting an option under sub. 7, the application shall continue to be processed as though such member shall have continued to live and if such application is approved, the election of an optional benefit shall become effective on the date of the member's death. This paragraph shall not apply in the event of accidental death benefits payable under sub. 5. (Par. d cr. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985.)
e. Effective January 1, 2000, the annual escalator payable under sub. 1-h-5-a shall be extended to a general city employee who was enrolled as a member of the retirement system prior to January 1, 2014 and retires, or is retired before January 1, 2000 on an ordinary disability retirement allowance and a fireman or policeman who retired prior to January 1, 1993 and on an ordinary disability retirement allowance and his or her spouse survivor receiving a proportionate share of the member’s pension if the member (or spouse survivor if the member is deceased) is a participant in the combined fund. Effective January 1, 2000, the annual escalator payable under sub. 1-h-6 shall be extended to a fireman or policeman who retires on or after January 1, 1993 on an ordinary disability retirement allowance and his or her spouse survivor receiving a proportionate share of the member’s pension if the member (or spouse survivor if the member is deceased) is a participant in the combined fund. If a member who is eligible for an increase under this paragraph dies while on ordinary disability on or after January 1, 2000, his or her spouse’s proportionate share spouse survivor allowance shall be computed based on the amount of the member’s ordinary disability retirement allowance including increases at the date of death. The annual escalator shall be payable to the member or spouse survivor at same times and in the same percentages as the increases the member would have received had the member retired on a service retirement allowance on the date of his or her ordinary disability retirement. (Par. e cr. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. e am File #121701, May 21, 2013; eff. Aug. 10, 2013.)
3.
DUTY DISABILITY RETIREMENT ALLOWANCE. a. While in Active Service. Any member in active service who shall become permanently and totally incapacitated for duty as the natural and proximate result of an injury occurring at some definite time and place while in the actual performance of duty shall, upon filing a request for retirement with the board on a form provided by the board for that purpose, be entitled to a duty disability retirement allowance to begin not less than 30 nor more than 90 days after the filing of the application therefor, provided the medical council or medical panel after a medical examination of such member shall certify that such member is mentally or physically incapacitated for further duty as a result of such service injury and such incapacity is likely to be permanent and such member should be retired. No beneficiary entitled to a duty disability retirement allowance shall receive any allowance on account of ordinary disability. No person first employed by the city as a fireman or paramedic on or after December 1, 1983, shall be eligible to receive a duty disability retirement allowance as a result of an injury occurring during the period he or she is assigned to the Fire Academy or Medical College of Wisconsin for recruit training. No person first employed by the city as a policeman on or after August 1, 1985, shall be eligible to receive a duty disability retirement allowance as a result of an injury occurring prior to field training during the period he or she is assigned to the Police Academy for recruit training. No person first employed by the city as a police aide on or after July 1, 1985, shall be eligible to receive a duty disability retirement allowance as a result of an injury occurring while in the performance of duty. (Par. a am. Ch. Ord. 552, File #85-118-a, July 16, 1985; eff. Sept. 30, 1985. Par. a am. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Par. a am. File #881103, September 20, 1988; eff. Dec. 5, 1988.)
b. Allowance. b-1. The duty disability retirement allowance shall equal the service retirement allowance if such member has attained the minimum service retirement age; otherwise it shall consist of an allowance which is the actuarial equivalent of his accumulated contributions, plus an additional retirement allowance equal to 75% of his final average salary. (Par. b am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972; Par. b renumbered b-1, File #921978, Apr. 8, 1993; eff. June 16, 1993.)
b-2. If a general city employee is found to be eligible for a duty disability retirement allowance referred to in par. g-0 which is first effective prior to the member attaining age 55, such member shall mandatorily convert to a service retirement allowance upon attaining age 60. If a general city employee is found to be eligible for a duty disability retirement allowance referred to in par. g-0 which is first effective after the member attains the age of 55, such member shall mandatorily convert to a service retirement allowance after attaining age 60 or after the expiration of the maximum period under par. g-2, whichever is later. If the maximum period for a general city employee referred to in par. g-2 extends beyond age 60, such member shall be eligible to voluntarily convert to a service retirement allowance commencing at age 60. (Subd. 2 cr. File #921978, Apr. 8, 1993; eff. June 16, 1993. Subd. 2 am. File #940667, July 29, 1994; eff. Oct. 17, 1994. Subd. 2 am. File #950869, October 17, 1995; eff. January 2, 1996.)
b-3. Effective January 1, 2000, the annual escalator payable under sub. 1-h-5-a shall be extended to a general city employee who was enrolled as a member of the retirement system prior to January 1, 2014 and retires and is receiving a duty disability allowance and his or her spouse survivor receiving a proportionate share of the member’s pension if the member (or spouse survivor if the member is deceased) participates in the combined fund. If a member who is eligible for an increase under this subsection dies while on duty disability on or after January 1, 2000, his or her spouse’s proportionate share spouse survivor allowance shall be computed based on the amount of the member’s duty disability retirement allowance including increases at the date of death. The annual increase shall be payable to the member or spouse survivor at the same times and in the same percentages as the increases the member would have received had the member retired on a service retirement allowance on the date of his or her duty disability retirement. (Subd. 3 cr. File # 991585, April 11, 2000; eff. Jan. 19, 2001. Subd. 3 am File #121701, May 21, 2013; eff. Aug. 10, 2013.)
c. Firemen and Policemen Duty Disability. c-1. Medical Panel, etc. Firemen and policemen who are eligible for duty disability retirement allowance shall file a request therefor with the board on a form provided by it for that purpose; such disability shall be determined as follows:
c-1-a. Recommendations. Except for policemen who become members after June 28, 2005, and firemen represented by Local 215, IAFF, who become members of the retirement system after December 13, 2005 and apply for duty disability retirement allowance based on a mental injury, such member shall be examined by a medical panel and such medical panel shall make the examination, determination and certification required under this act in accordance with the form prescribed by the board. If the panel recommends that such person is entitled to duty disability retirement allowance provided for in this section, the board shall thereupon grant such allowance. For policemen who become members of the retirement system after June 28, 2005, and firemen represented by Local 215, IAFF, who become members of the retirement system after December 13, 2005 and apply for a duty disability retirement allowance based on a mental injury, the application shall be referred to the medical council established under s. 36-15-12, in lieu of the medical panel, which medical council shall make the determination and certification required under this act. In any reexamination authorized by this act of such retired beneficiary, the beneficiary shall be referred to the medical council, in lieu of the medical panel, for reexamination and such medical council shall make the determination and certification required under this act. Notwithstanding the foregoing, an application for a duty disability retirement filed on or after January 1, 2016, by a policeman who is represented by the MPSO, or an application for a duty disability retirement filed on or after June 19, 2016, by a policeman who is represented by the MPA, or an application for a duty disability retirement filed on or after July 30, 2016, by a fireman represented by Local 215, IAFF, shall be referred to the medical council established under s. 36-15-12, in lieu of the medical panel, which medical council shall make the determination and certification required under this act, and any authorized reexamination of such beneficiary shall be referred to the medical council, which shall make the determination and certification required under this act. Except as otherwise provided in subd. 3-f and g, any fireman or policeman who shall become disabled as the direct result of injury incurred in the performance of one or more specific acts of duty shall have a right to receive duty disability benefit during the period of such disability of an amount equal to 75% of the current annual salary for such position which he held at the time of such injury. Except as otherwise provided in subd. 3-f and g, the surviving spouse of such member after his or her death but only during the period prior to remarriage shall receive 70% of the amount of the duty disability which the member received at the time of his or her death, and such percentage shall thereafter be based upon the salary of the position of such member at the time of his or her death. Prior to such person attaining the minimum service retirement age, periodic medical examinations of such person shall be made at least once each year but the heads of the respective departments may direct more frequent examinations. Effective January 1, 2000, the annual escalator payable under sub. 1-h-5 shall be extended to the allowance received by the surviving spouse of a retired fireman or policeman who retired on a duty disability retirement allowance under this subpar. prior to January 1, 1993 and died while receiving a duty disability retirement allowance if the member (or the surviving spouse of the member is deceased) participates in the combined fund. Effective January 1, 2000, the annual escalator payable under sub. 1-h-6 shall be extended to the allowance received by the surviving spouse of a retired fireman or policeman who retired on a duty disability allowance under this subpar. on or after January 1, 1993 and dies while receiving a duty disability retirement allowance if the member (or the surviving spouse of the member is deceased) participates in the combined fund. The annual escalator shall be payable to the surviving spouse at the same times and in the same percentages as the increases the member would have received had the member retired on a service retirement allowance on the date of his or her death. (Subpar. a am. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Subpar. a am. Ch. Ord. 565, File #861820, Feb. 24, 1987; eff. May 11, 1987. Subpar. a am. File #940423, July 15, 1994; eff. Sept. 28, 1994. Subpar. a am. File #991585, April 11, 2000; eff. Jan. 19, 2001. Subpar. a am. File #001071, Nov. 28, 2000; eff. Feb. 13, 2001. Subpar. a am. File #041649, April 12, 2005; eff. June 28, 2005. Subpar. a am. File #050475, Sept. 27, 2005; eff. Dec. 13, 2005. Subpar. a am. File #071497, April 9, 2008; eff. June 30, 2008. Subpar. a am. File #081272, Feb. 10, 2009; eff. Apr. 28, 2009. Subpar. a am. File #151113, Dec. 15, 2015; eff. Feb. 29, 2016. Subpar. a am. File #151274, Feb. 9, 2016; eff. April. 26, 2016. Subpar. a am. File #141568, Sept. 20, 2016; eff. Dec. 6, 2016.)
c-1-b. Case Review. In the event a member receiving a duty disability retirement allowance is later determined to be fit for service he shall be restored to service in his department and he shall no longer be entitled to receive a duty disability retirement allowance. The board may at any time request information concerning such person or investigate his status or request a medical examination of such person. The provisions of ss. 36-07-2 and 3 and 36-12 shall apply in all respects to such person entitled to receive a duty disability retirement allowance. In the event however that such fireman or policeman who is eligible to recover duty disability has a disability involving the loss of use of both eyes or the full loss of use of one eye and one limb or the full loss of the use of 2 limbs or an equivalent disability that would impair the member's (retiree's) ability to earn a livelihood and such disability is determined by majority action of the medical panel or medical council, then in such event the disabled fireman or policeman shall receive a duty disability pension of 90% of his current salary, and the board may waive the annual medical examination by the said panel or medical council of physicians; but in lieu thereof the disabled fireman or policeman annually shall submit a report from his personal physician to the board. If such panel or medical council reaches a determination unfavorable to the fireman or policeman on duty disability he may after 6 months but not later than one year request a reexamination by the medical council, or the convening of a second 3-physician panel to be constituted in the same manner and for the same purpose as the initial panel but such request shall be in writing. If an unfavorable result is reached, the fireman or policeman may seek further review but not sooner than 12 months from the last determination. This benefit shall be in lieu of any other benefits provided in this act for duty disability allowances. (Subpar. b am. Ch. Ord. 565, File #86-1820, Feb. 24, 1987; eff. May 11, 1987. Subpar. b am. File #041649, April 12, 2005; eff. June 28, 2005.)
c-1-c. Recomputation. Recomputation of the amount of disability benefits shall occur once whenever there is a salary adjustment in the salary for such position. Such adjustment shall thereupon become effective at once. If the position from which the member retired under a duty disability is eliminated, then the city service commission shall determine in what manner the current annual salary shall be established for such position for purposes of determining disability payments under this section.
c-1-d. Surviving Spouse and Child Benefits Related to 90% Duty Disability Allowance. The surviving spouse of a member receiving a duty disability allowance of 90% of current salary after his or her death but only during the period prior to remarriage shall receive 75% of the amount of duty disability which the member received at the time of his or her death and such percentage shall thereafter be based upon the salary of the position of such member at the time of his or her death. The period of time during which duty disability benefits shall be paid shall in no event be less than the time provided for under similar circumstances in this act prior to this amendment. Any such fireman or policeman shall also have a right to receive child's disability benefit of amounts of $40 a month on account of each child less than 18 years of age; provided, the total amount of child's disability benefits which shall be granted or paid to any such fireman or policeman shall not exceed 20% of the salary as aforesaid to such fireman or policeman. Such benefit or benefits shall be paid to such disabled fireman or policeman periodically according to rules concerning such benefits to be adopted by the retirement board. (Subpar. d am. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Subpar. d am. File #071497, April 9, 2008; eff. June 30, 2008.)
c-1-e. Maximum Allowance. Except for a policeman or a fireman receiving a duty disability allowance of 90% of current salary under this section, the duty disability allowance together with outside earnings shall not exceed 100% of the current annual salary, and in the event outside earnings together with the duty disability allowance exceed 100% the duty disability allowance shall be reduced in the amount that such earnings together with the duty disability allowance exceed 100%, as provided in part 2 of charter ord. 416, File #73-1842, passed Oct. 8, 1974. (Subpar. e am. Ch. Ord. 526, File #83-986, Sept. 27, 1983.)
c-2. Effective Date. It is declared to be the intent of charter ord. 380, File #70-2025, passed by the common council on February 8, 1972, that persons who were on duty disability from and after January 1, 1971, but whose duty disability was terminated prior to the effective date of charter ord. 380 by returning to active employment shall be entitled to the benefits provided by charter ord. 380 for the period of time from January 1, 1971, to the time when they returned to such active employment predicated upon the computations set forth in charter ord. 380. All the conditions referred to in charter ord. 380 shall also be applicable to this charter ordinance. (Ch. Ord. 386, File #70-2025-a May 26, 1972.)
c-3. Period of Eligibility.
c-3-a. Policemen who are found to be eligible for a duty disability retirement allowance prior to November 1, 1976 and firemen who are found to be eligible for a duty disability retirement allowance prior to October 1, 1977, shall continue to receive such allowance for life during their period of eligibility.
c-3-b. Policemen who are found to be eligible for a duty disability retirement allowance on or after November 1, 1976 and firemen who are found to be eligible for a duty disability retirement allowance on or after October 1, 1977, shall continue to receive such allowance during their period of eligibility until they reach the first of the next month following age 63, at which time they shall commence to receive a service retirement allowance to be computed as provided in s. 36-04-3-a.
c-3-c. Firemen who are found to be eligible for a duty disability retirement allowance on or after March 1, 1984 and policemen who are found to be eligible for a duty disability retirement allowance based upon filing a request for retirement with the board on or after August 1, 1985, shall continue to receive such allowance during their period of eligibility until they reach the first of the next month following their minimum service retirement age as provided in sub. 1-b, at which time they shall commence to receive a service retirement allowance to be computed as provided in s. 36-04-3-a.
c-3-d. Firemen who are found to be eligible for a duty disability retirement allowance based upon filing a request for retirement with the board on or after February 22, 1988 and policemen who are not members of the Milwaukee Police Association bargaining unit and found to be eligible for a duty disability retirement allowance based upon filing a request for retirement with the board on or after January 1, 1988, shall continue to receive such allowance during their period of eligibility until they reach the first of the next month following their minimum service retirement age, as provided in sub. 1-b or their attainment of the age of 54 years and completion of 25 years of creditable service as a fireman or policeman, whichever shall come first, at which time they shall commence to receive a service retirement allowance to be computed as provided in s. 36-04-3-a.
c-3-e. Policemen found to be eligible for a duty disability retirement allowance based upon filing a request for retirement with the board on or after January 1, 1990 and firemen found to be eligible for a duty disability retirement allowance based upon filing a request for retirement with the board on or after December 17, 1989, shall continue to receive such allowance during their period of eligibility until they reach the first of the next month following their minimum service retirement age, as provided in sub. 1-b or their attainment of the age of 52 years and completion of 25 years of creditable service as a fireman or policeman, whichever shall come first, at which time they shall commence to receive a service retirement allowance to be computed as provided in s. 36-04-3-a.
c-3-f. Firemen or policemen who retire on a duty disability retirement allowance on or after October 17, 1992 shall continue to receive their allowance during their period of eligibility until they reach the first of the month next following their minimum service retirement age as provided in sub. 1-b or their attainment of age 52 and completion of 25 years of creditable service as a fireman or policeman, whichever shall come first, at which time they shall convert to a service retirement allowance if they do not irrevocably elect to continue to receive their duty disability retirement allowance as provided in this subd. The member shall make such election in writing on a form prescribed by the board at any time within 6 months prior to the conversion date. If a member elects to continue to receive a duty disability allowance, the member shall receive an amount equal to the amount the member would have received had the member converted to service retirement allowance provided, however, the amount the member shall receive shall not be more than 75% of the current annual salary for the position held at the time of the member's injury nor less than 57% of a fireman or 60% in the case of a policeman of the current annual salary for the position held at the time of the member's injury. During 6 months prior to the conversion date, the member may also irrevocably elect a spouse survivor option under sub. 7-b-1, 7-b-2 or 7-b-3. If the member elects a spouse survivor option, the spouse survivor allowance shall be effective at the same time, calculated in the same manner and subject to the same terms and conditions as would have been the case had the member converted to a service retirement allowance and elected such option. This subd. shall not apply to members or the surviving spouses of members who are eligible to receive a duty disability retirement allowance of 90% of current salary for the position under subd. 1-b. Members who irrevocably elect to continue their duty disability retirement allowance under this subd. shall not be eligible to continue to receive an amount equal to 75% of current salary under subd. 1-a and their surviving spouses shall not be eligible to receive 70% of the amount received by the member under subd. 1-a.
c-3-g. Notwithstanding any provision of subd. b to f to the contrary, a policeman or fireman receiving a duty disability allowance of 90% of current salary under this section shall continue to receive such allowance for life during their period of eligibility for such 90% duty disability allowance and such fireman's or policeman's surviving spouse after the member's death and prior to remarriage shall continue to be eligible to receive 75% of the amount which the member received at death. (Subd. 3 am. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Subd. 3 am. File #872401, May 17, 1988; eff. Aug. 2, 1988. Subd. 3 am. File #872396, Sept. 20, 1988; eff. Dec. 5, 1988. Subd. 3 am. File #881667, Dec. 20, 1988; eff. March 13, 1989. Subd. 3 am. File #890633, July 25, 1989; eff. Oct. 14, 1989. Subd. 3 am. File #891650, Jan. 16, 1990; eff. April 4, 1990. Subd. 3 am. File #900239, July 10, 1990; eff. Sept. 25, 1990. Subd. 3 rc. File #901940, March 26, 1991; eff. June 11, 1991. Subd. 3-f ra. to 3-g File #940423, July 15, 1994; eff. Sept. 28, 1994. Subd. 3-f cr. File #940423, July 15, 199;, eff. Sept. 28, 1994. Subd. 3-f am. File #950521, July 28, 1995, Oct. 3, 1995. Subd. 3-f am. File 951195, Dec. 19, 1995; eff. March 13, 1996. Subd. 3-g am. File #950521, July 28, 1995; eff. Oct. 3, 1995.)
d. Special Fund. Duty disability retirement allowances for retirees who are not participants in the combined fund shall be paid specifically from a special fund created for that purpose and the city shall be liable for contributions to such fund in order that it may be adequate to meet the required payments. City agencies that are also covered by this act shall be required to contribute to such fund the cost of duty disability allowances for members in their employment who are entitled thereto. (Par. d am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972. Par. d am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
e. Death Prior to Retirement. In the event a policeman who applies for a duty disability retirement allowance on or after January 1, 1985, or a fireman who applies for a duty disability retirement allowance on or after March 1, 1985, dies prior to retirement leaving a surviving spouse, the application shall continue to be processed as though the member shall have continued to live and if such application is approved, the surviving spouse's benefit shall become effective as of the date of the member's death. In the event a general city employee who applies for a duty disability retirement allowance on or after January 1, 1985, dies prior to retirement but after selecting an option under sub. 7, the application shall continue to be processed as though such member shall have continued to live and if such application is approved, the election of an optional benefit shall become effective on the date of the member's death. This paragraph shall not apply in the event accidental death benefits are payable under sub. 5. (Par. e cr. Ch. Ord. 554, File #85-845, Oct 1, 1985, eff. Dec. 15, 1985.)
g. Older Worker’s Benefit Protection Act. Note: par. g repealed pursuant to File #000697, September 22, 2000, eff. December 11, 2000. Notwithstanding the repeal of par. g, its provisions continue to apply to a number of general city employees; the text of the repealed par. g follows:
g. Older Worker's Benefit Protection Act. General city employees hired on or after October 17, 1992, and general city employees hired prior to October 17, 1992, who elected an optional benefit under par. f and apply for a duty disability retirement allowance on or after January 1, 1993, will be eligible for a duty disability retirement allowance on the same terms as the duty disability retirement allowance which would otherwise apply to them except:
g-1. The amount of the member's benefit shall be 72% of final average salary. Effective with the installment next following the month such member attains age 62, the member's benefit shall be reduced by the amount of the service retirement allowance which would be payable upon voluntary conversion at age 62 under par. b-2.
g-2. If a member is between the ages of 55 and 59 at the time the benefit is first effective, the member shall continue to receive benefits during the period of eligibility until the member attains age 60 or the expiration of a maximum period of 46 months, whichever is later. If a member is between the ages of 60 and 65 at the time the benefit is first effective, the member shall continue to receive benefits during the period of eligibility until the expiration of a maximum period of 27 months. If a member has attained 65 years of age at the time the benefit is first effective, the member shall continue to receive benefits during the period of eligibility until the expiration of a maximum period of 16 months. (Par. g cr. File #921978, Apr. 8, 1993; eff. June 16, 1993. Par. g-0 am. File #940667, July 29, 1994; eff. Oct. 17, 1994. Par. g-0 am. File #950869, October 17, 1995; eff.January 2, 1996. Par. g rp File #000697, Sept. 22, 2000; eff. Dec. 11, 2000.)
i. General city employees who retire on a duty disability retirement allowance on or after January 1, 1995 (on or after August 16, 1994 for employees represented by the Milwaukee Building and Construction Trades Council, AFL-CIO), shall be eligible for and receive a duty disability retirement allowance equal to 75% of final average salary. General city employees who have not attained the age of 60 years at the time of such retirement shall continue to receive such allowance during their period of eligibility until they reach the first of the month next following age 65, at which time they shall convert to a service retirement allowance. General city employees who have attained the age of 60 years at the time of such retirement shall continue to receive such allowance during their period of eligibility for a period of 5 years, at which time they shall convert to a service retirement allowance. (Par. i cr. File #941981, April 25, 1995; eff. July 12, 1995; Par. i am. File #951195, December 19, 1995; eff. March 13, 1996. Par. i am. File #000697, Sept. 22, 2000; eff. Dec. 11, 2000.)
5.
ACCIDENTAL DEATH BENEFIT.
a. Spouse or Child's Annuity. Upon receipt of proper proofs of the death of a member in active service containing evidence acceptable to the board that such death was the natural and proximate result of an accident occurring at some definite time and place while the member was in the actual performance of duty, the board, in lieu of the ordinary death benefit of a lump sum payment of 1/2 the final average salary of such deceased member, shall grant a pension of 60% of the final average salary of such deceased member and the return of accumulated contributions of such member to: (Par. a-0 am. Ch. Ord. 370, File #71-239, May 24, 1971; Par. a-0 am. Ch. Ord. 379, File #69-2460-f, Feb. 8, 1972.)
a-1. His widow or her widower. Effective January 1, 2000, the annual escalator payable under sub. 1-h-5-a shall be extended to such widow or widower of a general city employee who was enrolled as a member of the retirement system prior to January 1, 2014 and died at any time or of a fireman or policeman who died prior to January 1, 1993 if the member (or widow or widower if the member is deceased) participates in the combined fund. Effective January 1, 2000, the annual escalator payable under sub. 1-h-6 shall be extended to such widow or widower if a fireman or policeman who dies on or after January 1, 1993 if the member (or widow or widower if the member is deceased) participates in the combined fund. The annual escalator shall be payable to the widow or widower at the same times and in the same percentages as the increases the member would have received had the member retired on a service retirement allowance on the date of his or her death. (Par. a-1 am. Ch. Ord. 370, File #71-239, May 24, 1971. Par. a-1 am. Ch. Ord. 379, File #69-2460-f, Feb. 8, 1972. Par. a-1 am. File #950294, June 27, 1995; eff. Sept. 13, 1995. Par. a-1 am. File #990234, June 2, 1999; eff. Aug. 18, 1999. Par. a-1 am. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. a-1 am. File #121701, May 21, 2013; eff. Aug. 10, 2013.)
a-2. If there be no widow or widower, or if the widow or widower dies before the youngest surviving unmarried child of such deceased member attains the age of 21, then to his or her child or children under said age, divided in such manner as the board in its discretion shall determine, to continue until there are no surviving unmarried children of such deceased member under said age; or (Par. a-2 am. Ch. Ord. 370, File #71-239, May 24, 1971. Par. a-2 am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972. Par. a-2 am, File 950294, June 27, 1995; eff. Sept. 13, 1995. Par. a-2 am. File #950562, Sept. 27, 1995; eff. Dec. 13, 1995)
a-3. If there be no widow or widower or unmarried children as indicated in subd. 2 surviving such deceased member, then to his or her dependent father or mother, as the board in its discretion shall direct, to continue for life. For purposes of determining the eligibility of dependents of deceased members for benefits hereunder, "dependency" shall mean that the deceased member shall have contributed 50% or more of the support of such parents during the 3 years preceding his or her death. (Par. a-3 am. Ch. Ord. 370, File #71-239, May 24, 1971. Par. a-3 am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972. Par. a-3 am, File 950294, June 27, 1995; eff. Sept. 13, 1995.)
b. When No Dependents. Whenever it shall appear to the satisfaction of the board that relatives, named in par. a-3 are not dependent upon the deceased, then in such instances if the beneficiary is not eligible for the death benefit provided for in sub. 10 because the time of employment was less than that required to receive payment under that section, then the ordinary death benefit shall be payable. (Par. b am. Ch. Ord. 467, File #78-825, Oct. 3, 1978.)
c. When Beneficiary Not Eligible. Whenever a beneficiary is not eligible for the benefit under this subsection, then the death benefits under sub. 10 shall be paid. (Par. c am. Ch. Ord. 467, File #78-825, Oct. 3, 1978.)
6.
SEPARATION BENEFITS. a-1. Return of Accumulated Contribution. Should a member cease to be an employee except by death or retirement under the provisions of this act, he or she shall be paid his or her accumulated contributions as they were at date of separation from service, upon filing with the board a request for such return of contributions on a form provided by the board for that purpose, except that this provision will not apply to a member enrolled after December 31, 1970, until he or she has completed 8 years of creditable service or 4 years of creditable service if the member separates from service as a general city employee, and will not apply to a policeman enrolled after June 30, 1983, or a fireman or paramedic enrolled after October 31, 1983, unless he or she has completed 10 years of creditable service. However, with respect to the 1% contribution made by policemen, this provision shall not be applicable and as to such 1%, such policemen shall have the withdrawal rights without change. The separation benefits provided for in this paragraph as to policemen shall be effective from and after July 1, 1972, and policemen entering this system prior to such date shall be governed by the separation benefits as the same were prior to the enactment of ch. ord. 365, File #70-2387, approved by the common council on February 17, 1971. (Par. a am. Ch. Ord, 530, File #82-2109-b, Jan. 24, 1984. Par. a-1-0 am., par. a rn to a-1, File #091068, Dec. 22, 2009; eff. March 10, 2010. Par. a-1 am. File #130184, File #130184, June 11, 2013; eff. August 27, 2013.)
a-2 Return of Member-Paid Accumulated Contribution. The retirement system shall return to members who separate from service prior to vesting the contributions made by the members under s. 36-08-7-a, b or c. A member may elect to withdraw his or her contribution either after separation or upon termination of membership under s. 36-03-5. Upon filing with the board a request for return of member-paid contribution, on a form provided by the board, the member shall be paid his or her contribution and the regular interest credited on the contribution as it was at the date of separation and ½ the regular interest credited to the account thereafter. A member who withdraws his or her contribution shall not be eligible for any benefits under this chapter and his or her membership shall be terminated. In the event the member dies after separation, the contribution, if not previously paid, shall be paid with the credited interest to the member's estate or designated beneficiary. (Par. a-2 cr, File #091068, Dec. 22, 2009; eff. March 10, 2010; Par. a-2 am. File #110740, Nov. 7, 2014; eff. Jan. 26, 2015.)
b. Involuntary Separation. A member who is removed or otherwise involuntarily separated from service for any cause, may elect: (Par. b am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
b-1. To withdraw his accumulated contributions, as provided in par. a; or (am. Ch. Ord. 332, File #67-355-a July 25, 1967.)
b-2. To leave his accumulated contributions in the fund until such member attains the minimum service retirement age, at which time he shall be entitled to a retirement allowance calculated in the same manner as provided in sub. 1, providing his retirement allowance at the above mentioned age equals or exceeds $25 per month. During the interim between such member's separation from service and the effective date of his retirement, the member's account shall be annually credited with interest at a rate not exceeding the regular interest rate and his retirement allowance shall be calculated accordingly; or
b-3. To receive a retirement allowance beginning immediately that is the actuarial equivalent of the retirement allowance payable under subd. 2, provided the retirement allowance equals or exceeds $25 or more. (Subd. 3 am File #020598, July 27, 2004; eff. Oct. 12, 2004.)
b-4. In the event a member who has exercised the option provided in subd. 2 returns to active service prior to attaining the minimum service retirement age, he shall again become an active member of the retirement system, and the credits for service which he had at the time of such separation shall be restored to him. Upon his subsequent retirement, he shall be credited with his service as a member subsequent to his last restoration to membership and shall receive a retirement allowance computed as if he were a new member and, in addition, he shall receive an allowance for service prior to his reinstatement computed on the formula in effect at the time he first left such service.
b-5. Should a beneficiary receiving a retirement allowance under the provisions of subd. 3 be restored to active service, his or her allowance shall cease, and he or she shall again become a member of the retirement system and the credit for service which he or she had at the time of such separation shall be restored to him or her. In the event of subsequent separation, death or retirement, the benefits to be paid shall be reduced by the actuarial equivalent of the retirement allowance under subd. 3 which has not been repaid with interest to the date of repayment. (Subd. 5 am. File #941491, Feb. 14, 1995; eff. May 2, 1995.)
b-6. Upon the death of a person before the effective date of his deferred retirement allowance, as provided in subd. 2, there shall be paid to his estate or to such person as he has nominated by written designation, duly executed and filed with the board, a death benefit equal to his accumulated contributions, conditioned as provided in par. a.
b-7. If a member authorized to make an election under this paragraph does not make an election within a time specified by the board, the board may by rule direct the election be made on the member's behalf. (Subd. 7 cr. File #880375, June 28, 1988; eff. Sept. 13, 1988.)
c. Voluntary separation, age 55. A member who separates from service for any cause who has at least 15 years of creditable service and who has attained age 55 shall have the same option as given a member under par. b, except, that if he elects to receive an immediate allowance as provided under par. b-3, he shall be required to file his application at least 30 days prior to the time his retirement shall be deemed effective for the purpose of receiving an immediate allowance. Should a member separated from service elect to retire under par. b-3 and subsequently be engaged in a gainful occupation prior to attaining the minimum service retirement age paying more than the difference between his final average salary at the time of retirement and his retirement allowance, he shall be required to submit such information as the board shall require and his allowance shall be reduced by the amount of such excess. (Par. c am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
d. Deferred Retirement. A member who separates from service for any cause and who has a minimum of 4 years of creditable service may elect one of the following options:
d-1. To withdraw his accumulated contributions, as provided for in par. a; or
d-2. To leave accumulated contributions in the fund until the member shall attain the minimum service retirement age, at which time the member shall be entitled to a retirement allowance which shall be calculated in the same manner as specified in sub. 1; provided, however, that the member has a minimum of 4 years of creditable service and provided the member's allowance is equal to or exceeds the sum of $25 per month. During the interim of a member's separation from service and the effective date of retirement, the member's account shall annually be credited with interest at a rate not exceeding the regular interest rate and the retirement allowance shall be calculated accordingly. If a member who separated from service and left his or her accumulated contributions in the fund subsequently wishes to withdraw the accumulated contributions prior to retirement, the member shall then be entitled to receive the accumulated contributions credited to the account to the date of separation from service, conditioned as provided in par. a, together with 1/2 the interest credited to the account subsequent thereto, but the member shall have no right to any retirement allowance. Should a member who has elected a deferred retirement subsequently return to service prior to attaining the minimum service retirement age, the member shall again become an active member of this retirement system and the credits for service which he or she had at the time of such separation shall be restored to the member. Upon subsequent retirement the member shall be credited with his or her service as a member subsequent to his or her last restoration to membership and the member shall receive an allowance as if the member were a new member; and in addition the member shall receive an allowance in respect of service prior to his or her last restoration to service computed on the formula in effect at the time he or she first left such service, provided the member has not previously withdrawn contributions as provided under par. b-1. Upon the member's death prior to the time that the member would otherwise be eligible to receive a retirement allowance, there shall be paid to the member's estate or to the member's beneficiary nominated by written designation duly executed and filed with the board prior to the member's death, a death benefit equal to the member's accumulated contributions, conditioned as provided in par. a. Any member separating from service, as hereinbefore provided for, and desiring to avail himself or herself of the rights under this paragraph shall notify the board in writing within 30 days following the date of separation from service. A general city employee, policeman or fireman who separates from service on or after January 1, 1993, and elects this option may elect to defer commencement of the deferred retirement allowance to a date no later than April1 of the calendar year following the calendar year in which the member attains age 70-1/2 provided, however, that such election must be made no later than 30 days prior to the previously scheduled date for commencement of the receipt of such deferred retirement allowance.
d-3. If a member authorized to make an election under subd. 2 does not make an election within a time specified by the board, the board may by rule direct the election be made on the member’s behalf.
(Subd. 2 am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972; Subd. 2 am. File #921978, Apr. 8, 1993; eff. June 16, 1993; Subd. 2 am. File #940423, July 15, 1994; eff. Sept. 28, 1994. Subd. 2 am. File #950521, July 28, 1995; eff. Oct. 3, 1995. Subd. 3 cr. File #020475, July 16, 2002, eff. Oct. 1, 2002. Subd. 2 am. File #061416, March 22, 2007; eff. June 11, 2007.)
e. Firemen or Policemen, Deferred Retirement. A member who is a fireman or policeman may elect a deferred retirement allowance prior to reaching age 52, provided he has had 25 years of creditable service as such fireman or policeman by notifying the board in writing of his election to do so, and he shall then be entitled to receive his deferred retirement allowance commencing the first of the month following his 52nd birthday; such allowance shall be determined in accordance with sub. 1. (Par. e cr. Ch. Ord. 370, File #71-239, May 24, 1971. Par. e am. Ch. Ord. 379, File #69-2460-f Feb. 8, 1972.)
f. When on Leave. Should any member who has separated from service and elected a separation benefit under pars. b-2, c or d-2 subsequently return to city employment for less than 6 months, he shall not be eligible for additional creditable service for such service, and contributions deducted from the member's compensation during such period shall be returned to him and such service shall not terminate the retirement status of the member. (Par. f cr. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
g. Less Than One Year's Leave. Should any member who elects a separation benefit under pars. b-2, c or d-2 and subsequently returns to city employment after a lapse of less than one year from the date he left city employment and who remains in city employment until retired for service or disability, he will have his ultimate benefit based on his total creditable service with the city, excluding that period during which he was absent. (Par. g cr. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
7.
OPTIONAL BENEFITS. a. Death Within 30 Days After Retirement. No election of an optional benefit, except under par. b-4, shall be effective in the event the member dies within 30 days after retirement, and the member shall be considered as an active member at the time of death unless the member elected an optional benefit under par. b-4. This paragraph shall not apply to general city employees who retire on a service retirement allowance on or after February 1, 1983, or on an ordinary or duty disability retirement allowance on or after January 1, 1985, to firemen who retire on a service retirement allowance or on an ordinary or duty disability retirement allowance on or after March 1, 1985, or to policemen who retire on a service retirement allowance or on an ordinary or duty disability retirement allowance on or after January 1, 1985.
b. Retirement Options. Until the effective date of retirement, any member may elect to convert the retirement allowance into a reduced retirement allowance that is the actuarial equivalent of the retirement allowance otherwise payable as follows:
b-1. "OPTION 2". A reduced retire-ment allowance payable during the member's life, with the provision that after the member's death it shall continue during the life of and shall be paid to such person as the member shall have nominated by written designation duly executed and filed with the board at the time of retirement.
b-2. "OPTION 3". A reduced retirement allowance payable during the member's life, with the provision that after the member's death an allowance of 1/2 of the member's reduced allowance shall be continued during the life of and shall be paid to such person as the member shall have nominated by written designation duly executed and filed with the board at the time of retirement. The retirement allowance because of the election of an option which provides that 1/2 of the member's allowance shall be paid to the member's spouse, shall be limited, however, to a reduction which is not in excess of 5% of the retirement allowance which the member would have received had the member elected no option; it being intended that the election of this option when the beneficiary is the member's spouse shall not reduce the member's maximum retirement allowance in excess of 5% thereof. If a member who has elected a spouse survivorship option under this paragraph receives an adjustment under sub. 1-h-4 prior to death, the 50% survivorship allowance shall be computed based on the member's service retirement allowance including adjustments at the date of death.
b-3. "OPTION 4." A reduced retirement allowance payable during the member's life, with some other benefit payable to a designated beneficiary or for the benefit of a designated beneficiary after the member's death, provided the succeeding benefits are payable over a period not extending beyond the life of the designated beneficiary or over a period not extending beyond the life expectancy of the designated beneficiary, subject to the provisions of par. e.
b-4. Protective Survivorship Option.
Note to s. 36-05-7-b-4. Any Provision of ch. 36 notwithstanding, general city employees in active service who have selected their spouse as their designated beneficiary under a protective survivorship option under s. 36-05-7-b-4 prior to January 19, 2001 shall be permitted to reselect a retirement option during the 90-day period preceding the effective date of their retirement. (Part 46-1, File #991585, April 11, 2000; eff. Jan. 19, 2001.)
b-4-a. Any member eligible for normal service retirement under this act, except policemen who attain eligibility for normal service retirement under sub. 1-f on or after January 1, 1985, and firemen who attain eligibility for normal service retirement under sub. 1-f on or after March 1, 1985, may elect a protective survivorship option without a reduction because of such election by selecting an option under this subdivision in the manner hereinafter set forth, which option shall then become effective at his or her death, with the same force and effect as if such member had retired under such option immediately prior to his or her death. Any policeman who attains 25 years of creditable service as a policeman under this act on or after January 1, 1985, any fireman who attains 25 years of creditable service as a fireman under this act on or after March 1, 1985, and any fireman eligible for a service retirement allowance under sub. 1-f after attaining the age of 49 years and 22 years of creditable service, may elect a protective survivorship option without a reduction because of such election by selecting an option under this subdivision in the manner hereinafter set forth, which option shall then become effective at or after his or her death with the same force and effect as if such member had retired under such option immediately prior to his or her death, provided sub. 5 is inapplicable. Such option shall operate as do other options selected under the provisions of this section. A member in order to be eligible for the election of such option based on eligibility for normal service retirement shall be required to make his or her election in writing on a form prescribed by the board within 6 months prior to the date when he or she shall first become eligible for normal service retirement. A fireman eligible for election of such option based on 22 years of creditable service shall be required to make his or her election within 6 months of attaining 22 years of creditable service. A policeman or fireman eligible for election of such option based on 25 years of creditable service shall be required to make his or her election within 6 months of attaining 25 years of creditable service. A policeman who is in the Milwaukee Police Association bargaining unit on or after November 3, 1988, a policeman not in the Milwaukee Police Association bargaining unit who was in the Milwaukee Police Association bargaining unit between November 3, 1988, and December 31, 1988, a policeman who is not in the Milwaukee Police Association bargaining unit on or after July 25, 1989, and a fireman in active service on or after January 16, 1990, shall be permitted to make a new election within 6 months of marriage or remarriage. If a fireman or policeman has a spouse at the time he or she becomes eligible to make an election under this subd., such fireman or policeman shall be deemed to have elected the option specified in subd. 1; namely, “option 2”, the option which provides a 100% survivor option to the member’s beneficiary and to have named his or her spouse as the designated survivor, unless, at the time he or she becomes eligible to make an election under this subd., he or she elects a different option within the time allotted. If a member marries, is divorced or retires, the member shall be permitted to reselect an option under subd. 7-b. The election shall be irrevocable and shall continue after retirement. The option shall be automatically revoked in the event the joint annuitant predeceases the member before retirement; or if the member is legally divorced from the joint annuitant before retirement when such election shall be canceled upon written notice from the member to the board requesting such cancellation. The benefit payable shall be the actuarial equivalent of the benefits otherwise payable. For firemen and policemen eligible for the option provided for by this subdivision based on attaining the minimum service retirement age, the option shall be effective 30 days after written election thereof is made by the member. For firemen and policemen eligible for the option provided in this subdivision, the option shall be effective on the date of death in the event the member has attained the minimum service retirement age or on the date the member would have attained the minimum service retirement age in the event the member has not attained such age on the date of death. The election of a survivorship option heretofore made shall be deemed to have been made under the provisions of this subdivision as amended.
b-4-b. The election of a protective survivorship option permitted and provided for in this subdivision and made either prior to or after October 14, 1989, wherein such member elected "Option 3", namely, the option which provides a 50% survivorship allowance to the member's spouse, automatically includes such member's right to and results in such member's maximum retirement allowance being reduced only by an amount which is not in excess of 5% of the maximum retirement allowance to which such member would be entitled except for the member's election of "Option 3"; the 5% limitation of the reduction of the member's retirement allowance referred to herein is that limitation stated in subd. 2.
c. Notwithstanding any other provision of sub. 7, on or after January 1, 1989, a member may not elect an option in which the present value of the allowance payable to the member over the member's life expectancy does not exceed the present value of the succeeding benefit. Effective for members electing an option on or after January 1, 1995, this par. does not apply when the member elects an option with the member's spouse as the designated survivor.
d. Disposition of Final Pro-Rated Payment. d-1. In this paragraph, “final pro-rated payment” means that portion of a benefit that has been earned by a beneficiary prior to the death of a beneficiary but had not been paid to the beneficiary prior to his or her death.
d-2. Upon the death of a member who has not elected any survivorship option under this subsection, the member’s final pro-rated payment shall be paid to the member’s estate, unless the member has named a person or trust to receive the member’s final pro-rated payment on a form approved by the board for that purpose.
d-3. Upon the death of a member who has elected any survivorship option under this subsection, the member’s final pro-rated payment shall be paid to the member’s survivor. If the survivor predeceases the member, the member may name a person or trust to receive the member’s final pro-rated payment on a form approved by the board for that purpose.
d-4. Upon the death of a survivor, the survivor’s final pro-rated payment shall be paid to the survivor’s estate, unless the survivor has named a person or trust to receive the survivor’s final pro-rated payment on a form approved by the board for that purpose.
e. The following provisions will apply to any distribution of a member’s interest and will take precedence over any conflicting provisions of this chapter.
e-1. This paragraph is not intended to provide an optional form of distribution or commencement date not otherwise permitted under this chapter unless the timing or amount of payment to be made under applicable provisions of this chapter, without regard to this paragraph, would be later than the latest commencement date or less than the required minimum provided under this paragraph.
e-2. Distributions to a member shall commence no later than April 1 of the calendar year following the later of the calendar year the member retires or attains age 70-1/2.
e-3. All distributions required under this paragraph shall be determined and made in accordance with sec. 401(a)(9) of the Internal Revenue Code, as hereafter amended, and the regulations hereunder, including the minimum distribution incidental benefit requirements of 26 Code of Federal Regulations sec. 1.401(a)(9)-6, Q and A-2; provided, however, if a distribution option provided by this chapter on April 17, 2002 is inconsistent with the requirements of 26 Code of Federal Regulations sec. 1.401(a)(9)-6, but is consistent with a good faith interpretation of sec. 401(a)(9) of the Internal Revenue Code, without regard to such regulations, such distribution option will not cause this chapter to fail to satisfy the requirements of sec. 401(a)(9) of the Internal Revenue Code.
e-4. Distribution of benefits, if not made in a single sum, shall be made over one of the following periods, or a combination thereof:
e-4-a. The life of the member.
e-4-b. The lives of the member and a designated beneficiary.
e-4-c. A period not extending beyond the life expectancy of the member.
e-4-d. A period not extending beyond the life expectancy of the member and a designated beneficiary.
e-5. If the distribution of the member’s interest has begun in accordance with subd. 4, and the member dies before his or her entire interest has been distributed to the member, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution used as of the date of death of the member.
e-6. If the member dies before distribution commences, the member’s entire interest will be distributed no later than December 31 of the calendar year containing the 5th anniversary of the death of the member except to the extent an election is made to receive the distributions in accordance with the following:
e-6-a. Payments of any portion of such interest to or for the life expectancy of a beneficiary may be made over the life or life expectancy of such beneficiary commencing no later than December 31 of the calendar year containing the first anniversary of the member’s death.
e-6-b. Payments of any portion of such interest to the member’s surviving spouse are not required to begin earlier than December 31 of the calendar year in which the member would have attained age 70-1/2 or, if later, December 31 of the calendar year following the calendar year of the member’s death. If the spouse dies before payments begin, subsequent distributions are required under this subdivision as if the spouse was the member.
e-6-c. Such election must be made by the member (or the member’s beneficiary, if the member dies without having made such an election) on or before the earlier of the date by which distributions must commence absent an election and the date distributions must commence assuming such election has been made.
e-7. For the purposes of this paragraph, distribution of a member’s interest is considered to begin on the date that distributions must commence to the member (or if subd. 6-b applies, the date distribution is required to begin to the surviving spouse pursuant to subd. 6). If distribution in the form of an annuity irrevocably commences to the member before distributions must commence, distribution is considered to commence on the date it actually commences.
e-8. Any amount paid to a child of the member will be treated as if it had been paid to the surviving spouse when the child reaches the age of majority.
e-9. For the purposes of this paragraph any distribution under the incidental death benefit requirements of sec. 401(a)(9) of the Internal Revenue Code shall be treated as a distribution required under sec. 401(a)(9) of the Internal Revenue Code. (Sub. 7-a am. Ch. Ord. 552, File #85-118-a, July 16, 1985; eff. Sept. 30, 1985. Sub. 7-b-6-a am. Ch. Ord. 552, File #85-118-a, July 16, 1985; eff. Sept. 30, 1985. Sub. 7-a am. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Sub. 7-b-6-a am. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Sub. 7-b-6-a am. File #881667, Dec. 20, 1988; eff. March 13, 1989. Sub. 7 rc. File #890633, July 25, 1989; eff. Oct. 14, 1989. Sub. 7-b-4-a am. File #891171, Sept. 28, 1989; eff. Dec. 17, 1989. Sub. 7-b-4-a am. File #891650, Jan. 16, 1990; eff. April 4, 1990. Sub. 7-b-4-b (Note), File #901684, July 28, 1992; eff. Sept. 30, 1992. Sub. 7-b-2 am. File #921978, April 8, 1993; eff. June 16, 1993. Sub. 7-b-4-a am. File #941981, April 25, 1995; eff. July 12, 1995. Sub. 7-b-4-a am. File #950597, Sept. 27, 1995; eff. Dec. 13, 1995. Sub. 7-c am. File #960457, July 12, 1996; eff. Sept. 30, 1996. Sub. 7-d cr. File #060064, May 31, 2006; eff. Aug. 16, 2006. Sub. 7-b-3 am. File #060488, Sept. 26, 2006; eff. Dec. 12, 2006. Sub. 7-e cr. File #060488, Sept. 26, 2006; eff. Dec. 12, 2006. Sub. 7-b-4-a am. File # 090049, May 27, 2009; eff. August 12, 2009. Sub. 7-b-4-a am. File #111504; Mar. 20, 2012; eff. June 5, 2012.)
8.
SURVIVORSHIP BENEFITS.
a. Firemen or Policemen, Death While in Active Service. a-1. In addition to other benefits provided for in the employes' retirement act, a fireman or policeman in active service prior to January 1, 2000, who is not a participant in the combined fund and who shall die prior to the time of his retirement from active service and who has had at least 30 days of creditable service prior to the time of his death, shall be covered by the provisions of this subsection. In such instance, the widow and other dependents hereinafter specified of such member, meeting the conditions herein set forth, shall be entitled to survivorship benefits which shall commence immediately upon the death of such member. (Par. a-1 am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
a-2. Any fireman or policeman who is not a participant in the combined fund and who retires after July 1, 1967, because of an approved disability shall be eligible to participate in survivorship benefits provided for herein if such member continues to make his same contribution as required by this section. It is intended that if such member retired under an approved disability and because thereof is no longer a member, he shall nevertheless be considered as a member for the purposes of the benefits provided for under the survivorship provisions until he shall reach the minimum service retirement age established by this chapter. (Par. a-2 am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
b. Dependents. The survivorship benefits granted hereunder shall be as follows:
b-1. If such member shall die leaving surviving a widow or widower without children, such widow or widower shall be entitled to receive as a survivorship benefit the sum of $115 per month, which shall commence at the time that such widow or widower shall reach the age of 62 except that the widow or widower of a member employed as a policeman on or after November 3, 1974 or employed as a fireman on or after April 6, 1975 shall be entitled to receive the aforementioned survivorship benefit commencing at the time such widow or widower shall reach the age of 57. (Subd. 1 am. File #892368, April 9, 1990; eff. June 26, 1990.)
b-2. If such member shall leave surviving a widow or widower with one or more children of the member, and such children are under the age of 18 years, the widow or widower shall receive for herself or himself and for such children a survivorship benefit in a sum not to exceed $230 per month, which shall be payable to her or him as long as such children are under the age of 18 years. In the event all of her or his children reach the age of 18 years or over, the survivorship benefits herein provided for shall cease until or unless the widow or widower shall have reached the age of 62 years, except that the widow or widower of such a member employed as a policeman on or after November 3, 1974, or employed as a fireman on or after April 6, 1975, shall be entitled to receive the aforementioned survivorship benefit commencing at the time such widow or widower shall reach the age of 57. (Subd. 2 am. File #892368, April 9, 1990; eff. June 26, 1990.)
b-3. If such member shall die without leaving a widow or widower, but he or she shall have a child under the age of 18 years, such child shall be entitled to receive a survivorship benefit in the amount of $115 per month as long as said child shall be under the age of 18 years. (Subd. 3 am. File #892368, April 9, 1990; eff. June 26, 1990.)
b-4. If such member shall die and leave surviving him 2 or more children under the age of 18 years and no widow or widower, then as long as said children shall be under the age of 18 years they shall receive $230 per month as survivorship benefits. However, in the event that such children reach the age of 18 years and only one child is under such age, then the remaining child shall be entitled to receive as survivorship benefits the sum of $115 per month, which, however, shall terminate upon such child reaching the age of 18 years. The board shall have the right to determine the allocation of the amounts herein paid to children under the age of 18 years if they are part of the same family unit and if in the board's judgment an equitable allocation of survivorship benefits payable is both justifiable and practical. The provisions of subds. 2, 3 and 4 shall not apply to children who are adopted following the death of such member. (Subd. 4 am. File #892368, April 9, 1990; eff. June 26, 1990.)
b-5. In order for a widow or widower to be eligible for survivorship benefits herein provided, such widow or widower must have been married to a member covered by the provisions of this subsection for a period of at least 30 days prior to the date of death; a child of such member in order to be entitled to the benefits hereunder must be unmarried or under a disability which commenced prior to the attainment of age 18. (Subd. 5 am. File #892368, April 9, 1990; eff. June 26, 1990.)
b-6. In the event such member shall die and shall not leave surviving either a widow or widower or child or children eligible to the survivorship benefits, then in such event a dependent father or mother shall be entitled to receive as a survivorship benefit the amount of $115 per month which shall be payable to each of the dependent parents (father and/or mother, as the case may be); provided, however, such surviving dependent shall establish to the satisfaction of the board that the dependency actually existed during the life of such member and that such surviving dependent received at least 1/2 of his or her support from such deceased member. In order to be eligible hereunder for survivorship benefits, such dependent parent must at the time of receiving such survivorship allowance have reached the age of 65 years. The board may request such additional proof from time to time as it may consider appropriate in order to establish that the dependency continues. (Subd. 6 am. File #892368, April 9, 1990; eff. June 26, 1990.)
b-7. In the event a widow or widower of such member entitled to receive survivorship benefits hereunder shall remarry, then whatever benefits she or he is entitled to shall immediately cease. However, the benefits which are paid on behalf of any child under the age of 18 years shall continue as long as such minor children shall not have reached the age of 18 years. The board may require proof in such form as it determines applicable to demonstrate that such widow or widower has not remarried. (Subd. 7 am. File #892368, April 9, 1990; eff. June 26, 1990.)
b-9. In the instance of a widow or widower, or in the instance of minor children, being entitled to receive survivorship benefits hereunder, such survivorship benefits shall be paid in accordance with the provisions of this subsection. The death benefit provided for in sub. 10 shall be paid in addition to any survivorship benefits to which such persons are eligible. The provisions of this subdivision shall be deemed applicable to deaths having occurred among firemen and policemen who elected to come under the provisions of ch. ord. 238, File #57-3152, passed Mar. 18, 1958. (Subd. 9 am. Ch. Ord. 467, File #78-825, Oct. 3, 1978.)
b-10. It is intended that the increased benefits of $230 per month or $115 per month herein provided for are being granted because there is no added cost, but if the experience is adverse the benefits are to be reduced so as not to increase costs. (Subd. 10 rc. Ch. Ord. 379, File #69-2460-f, Feb. 8, 1972.)
b-11. The increase in benefits granted through amendment to this subsection is predicated upon the condition that if such increased benefits at any time hereafter make it necessary to provide additional funds in order that the survivorship benefits may be paid, then the members covered by this section shall be required to pay such additional contributions as may be determined to be necessary by the actuary, and the city shall match such increased contributions. Whenever the actuary certifies that increased contributions are required by both the members and the city, such contributions shall become effective immediately following the actuarial certification. (am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
b-12. For beneficiaries of policemen whose date of death occurs on or after October 5, 1973, and for beneficiaries of firemen whose date of death occurs on or after July 28, 1974, survivorship benefits payable in the amount of $115 per month shall be increased to $140 per month and payable in the amount of $230 per month shall be increased to $280 per month under the terms and conditions set forth in subd. 11. For beneficiaries of firemen whose date of death occurs on or after March 1, 1979, survivorship benefits payable in the amount of $140 per month shall be increased to $175 per month and payable in the amount of $280 per month shall be increased to $350 per month under the terms and conditions set forth in subd. 11. For beneficiaries of firemen whose date of death occurs on or after March 1, 1981, survivorship benefits payable in the amount of $175 per month shall be increased to $200 per month, and payable in the amount of $350 per month shall be increased to $400 per month under the terms and conditions set forth in subd. 11. For beneficiaries of policemen whose date of death occurs on or after September 29, 1981, survivorship benefits payable in the amount of $140 per month shall be increased to $200 per month and payable in the amount of $280 per month shall be increased to $400 per month under the terms and conditions set forth in subd. 11. For beneficiaries of firemen whose date of death occurs on or after March 1, 1984, and policemen whose date of death occurs on or after January 1, 1985, survivorship benefits payable in the amount of $200 per month shall be increased to $300 per month, and payable in the amount of $400 per month shall be increased to $600 per month under the terms and conditions set forth in subd. 10. Effective with the installment next following January 1, 2000 for beneficiaries who began receiving survivorship benefits before January 1, 2000 or who are eligible to receive survivorship benefits in the future due to a death occurring prior to January 1 2000, and who participate in the combined fund, survivorship benefits shall be increased to $300 per month for widows or widowers age 57 without children dependent parents and an eligible single child (no widow or widower) and $600 per month (for widows or widowers with eligible children and 2 eligible children, no widow or widower). (Subd. 12 am. Ch. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Subd. 12 am. File #991585, April 18, 2000; eff. Jan. 19, 2001. Subd. 12 am. File # 020342, June 25, 2002; eff. Sept. 11, 2002.)
[Note: Positions in the fire department which subd. 12 applies to can be found in Parts 3 to 5 of Ch. Ord. 539, File #83-2362-a, passed July 27, 1984.]
b-13. Any other provision of this subsection notwithstanding, survivorship benefits shall not be paid to beneficiaries of firemen or policemen who participate in the combined fund and die on or after January 1, 2000. (Subd. 13 cr. File #991585, April 18, 2000; eff. Jan. 19, 2001.)
c. Payments. The payments of all benefits to any members or their beneficiaries entitled to such payments under this subsection and the maintenance of the reserves required therefore are specifically exempt from the provisions of s. 36-13-4 and the benefit contract contained in s. 36-13-2, and the conditions applicable to such survivorship benefits may be modified. In the event that social security coverage is ultimately provided to firemen and policemen under federal enactment, then the provisions of this subsection as to survivorship benefits shall thereafter be without force and effect. (am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
d. Firemen's and Policemen's Survivorship Fund. There is created a fund known as the firemen and policemen's survivorship fund. Into such fund there shall be paid by a member who is a fireman or policeman covered by this act 0.87% of his or her annual salary, limited, however, to the sum of $6,000 for the purpose of computing the member's contribution. The city shall contribute an equal sum into such fund. The proceeds of such fund shall be used solely and exclusively for paying survivorship benefits herein provided for. All contributions made by each employee to the firemen and policemen's survivorship fund shall remain in such fund and shall not be returned to such member in the event of separation from the city's service. In the event that social security is provided to firemen and policemen covered by this act, then the balances in such fund over and above any and all liabilities created or existing shall be used for the payment of social security taxes of the members who may thereafter participate in such a plan. Effective January 1, 2000, no contributions shall be required on behalf of active or retired firemen and policemen who are members of the combined fund and any amounts contributed by members of the combined fund after January 1, 2000 shall be set aside and returned. (Par. d am. Ch. Ord. 337, File #67-3079, Feb. 20, 1968. Par. d am File #991585, April 11, 2000; eff. Jan. 19, 2001.)
e. Survivorship Rates. Survivorship benefits which result because of a death of a member covered by the provisions of this subsection shall be paid for at the following rate:
e-1. Survivorship benefits of $150 per month for a family, or $75 per month for one person are applicable with respect to the death of a member occurring from and after May 27, 1958 to April 13, 1963.
e-2. Benefits of $175 per month for a family, or $87.50 per month for one person are applicable with respect to the death of any member occurring from and after April 14, 1963, to December 23, 1966.
e-3. Benefits of $200 per month for a family or $100 per month for one person are applicable with respect to the death of a member occurring from and after December 24, 1966 and shall be applicable to December 31, 1970. Benefits of $230 per month for a family or $115 per month for one person are applicable with respect to the death of a member occurring from December 31, 1970 and thereafter. (Par. e rc. Ch. Ord. 379, File #69-2460-f, Feb. 8, 1972. Par. e-3 am. Ch. Ord. 402, File #69-2460-2k, July 24, 1973.)
f. Entrants After May 27, 1958. All firemen and policemen who enter into city service after May 27, 1958, shall be covered under this subsection as a condition of employment.
g. Withdrawal. No member shall be permitted to withdraw from coverage under the survivorship provisions of this subsection while he is a member of the fire or police departments and is covered by the employes' retirement act. (am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
j. Board to Adopt Rules. The board in consultation with the legal advisor for the employes' retirement system is authorized to adopt such rules and regulations as may be required in order to effectively carry out this subsection and a liberal construction shall be accorded such provisions in order to carry out the purposes and intent of this subsection. (am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
9.
BASIS OF COMPUTATION OF DISABILITY AND SEPARATION BENEFITS. Any ordinary or duty disability retirement allowance, or separation benefits shall be determined in the manner set forth in this act but effect shall be given to the applicable provisions of charter ord. 344. (Sub. 9 cr. Ch. Ord. 350, File #68-2747, April 15, 1969.)
10.
ORDINARY DEATH BENEFIT.
a. Beneficiary. Upon the receipt of proper proofs of death of a member in active service which is not the result of an accident in the actual performance of duty as defined in sub. 5, his or her accumulated contributions shall be paid to such person, or such trustee, if any, as he or she has nominated by written designation duly executed and filed with the board prior to his or her death, otherwise to his or her estate, and if such member has completed one or more years of creditable service there shall be paid in addition a lump sum benefit of 1/2 the final average salary of such deceased member. Such person designated by the member may elect to receive the amount payable as follows:
a-1. A single lump sum payment; or
a-2. Monthly payments in equal installments until the principal amount and interest have been exhausted; or
a-3. An allowance payable in equal monthly installments, the amount of such allowance to be the actuarial equivalent of the benefits otherwise payable at the time of the member's death on the basis of the age of the beneficiary at that time; provided that the monthly payments be no less than $25 per month.
b. Death of Beneficiary. Should a beneficiary who elected payments under par. a- 2 or 3 die before receiving allowance payments equal in total to the lump sum amount otherwise payable under par. a-1, the balance, if any, shall be paid to such person whom the beneficiary shall nominate by written designation duly acknowledged and filed with the board.
c. Death While on Leave. Any member who dies while on a leave of absence which was granted or extended for a period of more than 3 months and which leave of absence was taken for any reason other than sickness, military service, lay-off between seasons, lack of work, lack of funds, or for educational purposes, the leave for which is not more than one year, shall not be considered in active service and no ordinary death benefit shall be payable to his beneficiary or to his estate.
d. Death Prior to Retirement. In the event a policeman or general city employee who applies for an ordinary disability retirement allowance under sub. 2 or a duty disability retirement allowance under sub. 3 on or after January 1, 1985, or a fireman who applies for ordinary disability retirement allowance under sub. 2 or a duty disability retirement allowance under sub. 3 on or after March 1, 1985, dies prior to retirement with benefits payable to a surviving spouse or other beneficiary under sub. 2-d or sub. 3-e, the member shall not be considered in active service, and no ordinary death benefits shall be payable to his or her beneficiary or to his or her estate. (Sub. 4 am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972. Sub. 4 rn. to sub. 10, Ch. Ord. 417, File #74-365, Feb. 11, 1975. Sub. 10-b am. Ch. Ord. 467, File #78-825, Oct. 3, 1978 Sub. 10-d cr. Cr. Ord. 554, File #85-845, Oct. 1, 1985; eff. Dec. 15, 1985. Sub. 10-a-0 am. File #020474, July 16, 2002; eff. Oct. 1, 2002.)
11.
LUMP SUM BONUS. a. The following persons shall be eligible for a lump sum bonus if they participate in the combined fund: a member in active service as of January 1, 2000; a spouse survivor (under a protective survivorship option) of a member in active service as of January 1, 2000 if the member dies prior to retirement; an accidental death surviving spouse beneficiary of a member in active service as of January 1, 2000 if the member dies prior to retirement; a retired member, spouse survivor or accidental death surviving spouse beneficiary who is receiving a retirement or accidental death benefit allowance as of January 1, 2000; or a member separated from service prior to January 1, 2000 who is eligible for a deferred retirement allowance commencing on or after January 1, 2000. The bonus shall be paid to active members and members eligible for deferred retirement allowance at the time of commencement of their retirement allowance and to spouse survivors and accidental death surviving spouse beneficiaries of members in active service as of January 1, 2000 at the time of commencement of their spouse survivor allowance or accidental death benefit allowance. The bonus for those receiving a retirement or survivor allowance or accidental death benefit allowance as of January 1, 2000, shall be paid as soon as administratively feasible after January 1, 2000, and shall be 5% of the last full monthly installment payable prior to January 1, 2000, or if no full monthly installment was payable prior to January 1, 2000, the first full monthly installment payable immediately following January 1, 2000, multiplied by 12 times the appropriate lump sum factor. The bonus for members in active service as of January 1, 2000, members separated from service prior to January 1, 2000, who are eligible for a deferred retirement allowance commencing on or after January 1, 2000, spouse survivors of members in active service as of January 1, 2000 and accidental death beneficiaries of members in active service as of January 1, 2000, shall be 5% of the accrued annual retirement benefit (without a reduction on account of an election under sub. 7, or adjustment for cost of living), 5% of the accrued annual spouse survivor allowance (without an adjustment for cost of living) or 5% of the accrued annual accidental death benefit allowance (without adjustment for cost of living) multiplied by the appropriate lump sum factor. The appropriate lump sum factors are as follows:
Attained Attained Attained Age Factor Age Factor Age Factor 15 12.1075 44 11.3842 73 7.5404 16 12.0994 45 11.3235 74 7.3474 17 12.0906 46 11.2586 75 7.1531 18 12.0810 47 11.1891 76 6.9565 19 12.0706 48 11.1151 77 6.7563 20 12.0593 49 11.0365 78 6.5512 21 12.0481 50 10.9531 79 6.3413 22 12.0364 51 10.8647 80 6.1274 23 12.0242 52 10.7711 81 5.9115 24 12.0116 53 10.6720 82 5.6961 25 11.9984 54 10.5674 83 5.4845 26 11.9847 55 10.4570 84 5.2783 27 11.9692 56 10.3406 85 5.0788 28 11.9516 57 10.2182 86 4.8870 29 11.9320 58 10.0896 87 4.7030 30 11.9106 59 9.9551 88 4.5257 31 11.8873 60 9.8147 89 4.3527 32 11.8625 61 9.6685 90 4.1814 33 11.8361 62 9.5166 91 4.0088 34 11.8077 63 9.3591 92 3.8326 35 11.7774 64 9.1961 93 3.6518 36 11.7448 65 9.0280 94 3.4698 37 11.7099 66 8.8553 95 3.2898 38 11.6724 67 8.6779 96 3.1157 39 11.6322 68 8.4955 97 2.9496 40 11.5891 69 8.3084 98 2.7901 41 11.5430 70 8.1178 99 2.6289 42 11.4937 71 7.9253 100 2.4623 43 11.4408 72 7.7327
b. Firemen and Policemen Survivorship Fund Dissolution Bonus. The following persons shall be eligible for an additional lump sum bonus if they participate in the combined fund: a fireman in active service as of January 1, 2000; a fireman retired on a disability retirement allowance as of January 1, 2000 who is an active member in good standing of the firemen and policemen’s survivorship fund as of January 1, 2000; a spouse survivor (under a protective survivorship option) of a fireman in active service as of January 1, 2000 if the member dies prior to retirement; or an accidental death surviving spouse beneficiary of a fireman or policeman in active service as of January 1, 2000 if the member dies prior to retirement. A policeman in active service as of January 1, 2000 who is a participant in the combined fund, a policeman retired on a disability retirement allowance as of January 1, 2000 who is a participant in the combined fund or a spouse survivor (under a protective survivorship option) of a policeman in active service as of January 1, 2000 who is a participant in the combined fund (if the member dies prior to retirement) shall be eligible for an additional lump sum bonus if the policeman is an active member in good standing of the firemen and policemen’s survivorship fund as of January 1, 2000 and is ineligible for additional service credit under s. 36-04-4-b. The bonus for members other than members who either are retired on a disability allowance as of January 1, 2000 or retire on a disability allowance thereafter shall be paid at the time of commencement of their service retirement allowance, spouse survivor allowance or accidental death benefit allowance. The bonus for members who retire before or after January 1, 2000 on a disability retirement allowance shall be payable at the time of the installment next following attainment of their conversion age. If a member is retired on a disability retirement allowance and is ineligible for conversion to a service retirement allowance, the bonus shall be payable in the installment next following the attainment of age 63 or January 1, 2000 whichever shall come last. The bonus for active members shall be 8.6% of the accrued annual service retirement allowance (without reduction on account of an election under sub. 7, or adjustment for cost of living) multiplied by the appropriate lump sum factor as set forth in par.a. The bonus for spouse survivors (under a protective survivorship option) shall be 8.6% of the accrued annual spouse survivor allowance (without adjustment for cost of living) multiplied by the appropriate lump sum factor as set forth in par. a. The bonus for an accidental death surviving spouse beneficiary shall be 8.6% of the accrued annual accidental death benefit allowance (without adjustment for cost of living) multiplied by the appropriate lump sum factor as set forth in par. a. The bonus for retired members on a disability retirement allowance who are eligible to convert to a service retirement allowance shall be 8.6% of their accrued service retirement allowance (without adjustment for cost of living) at a conversion age multiplied by the appropriate factor as set forth in par. a. The bonus for retired members on a disability retirement allowance who are ineligible for conversion shall be 8.6% of the annual service retirement allowance at age 63 (without adjustment for cost of living) multiplied by the appropriate lump sum factor as set forth in par. a. If a member retired on a disability retirement allowance who is ineligible for conversion to a service retirement allowance is older than age 63 as of January 1, 2000 the bonus shall be 8.6% of the member’s disability retirement allowance payable for the year immediately prior to January 1, 2000 multiplied by the appropriate factor as set forth in par. a. This par. shall not apply to a retirement allowance authorized by s. 36-05-6-b-2, 6-b-3, 6-c or 6-d-2.
c. Military Service Credit Bonus. Each member who served and was honorably discharged from the military service prior to first being enrolled in the retirement system and who retired on a service retirement allowance prior to January 1, 2000 shall be eligible for a military service credit bonus if he or she is a participant in the combined fund and is ineligible for military service credit under s. 36-04-1-c. The bonus shall be computed by multiplying the sum of $1,000,000 by a fraction, the numerator of which is the member’s eligible active military service credit and the denominator of which is the total eligible active military service credit of all retirees eligible under this paragraph. Military service shall have the same meaning as under sec. 36-04-1-c. To be eligible for inclusion in the calculation a period of active service must be a period of not less than 90 consecutive days spent in active military service. One year of military service shall be credited for 3 years of eligible military service, however, the maximum military service credit taken into account for purposes of calculating this bonus shall not exceed one year. The maximum military service credit bonus shall not exceed the amount of the full monthly installment payable for the month immediately prior to January 1, 2000 or if no monthly installment was payable prior to January 1, 2000, the first full monthly installment payable after January 1, 2000. The retirement system shall determine the appropriate military documentation for crediting such military service. In order to be eligible for a military service credit bonus, each retired member must apply to the retirement system no later than 6 months following a final and binding determination by a court of competent jurisdiction that this ordinance is legal and enforceable [reference is to charter ordinance file number 000792, passed Oct. 10, 2000, eff. Jan. 19, 2001].
d. Retiree Special Bonus. Every retiree, spouse survivor and accidental death beneficiary who participates in the combined fund and who is receiving a retirement allowance or accidental death benefit as of January 1, 2000 shall be eligible to receive a lump sum payment. The bonus shall be paid as soon as administratively feasible after January 1, 2000 and shall be equal to the full monthly installment payable for the month immediately prior to January 1, 2000, or if no monthly installment was payable prior to January 1, 2000, the first full monthly installment payable after January 1, 2000, multiplied by the following multiplier factor: Status at Year of Retirement Retirement or Death or Death Multiplier General City 1997-1999 2
1996 3
1995 4
1994 5
1993 6½
1992 and prior 8 Firemen and Policemen all years 8 If a retiree or spouse survivor eligible to receive a lump sum payment under this par. has received an overpayment of catch-up or COLA payable under s. 36-05-1-i in 1996 or 1997, then, in lieu of the repayment of such overpayment through an adjustment of future benefit payments prescribed in this section, such retiree or spouse survivor shall repay all or a portion of such overpayment by offsetting dollar for dollar the lump sum payable under this section by the amount of the overpayment or 3 times the monthly installment identified in this section whichever is less. If a retiree who died prior to January 1, 2000, elected a spouse survivor who is eligible to receive a lump sum payable under this section the overpayment to such retiree in an amount not to exceed the lesser of the amount of overpayment to such retiree or 3 monthly installment identified in this section (excluding overpayments) payable to the retiree immediately prior to his or her death, shall be set off dollar for dollar against the lump sum payable to the spouse survivor under this section. If the amount of the overpayment exceeds the amount of the dollar for dollar set off applied under this section the excess of the amount of the overpayment over the amount set off shall become an obligation of, and paid from, the combined fund. If a retiree died prior to January 1, 2000, and either did not elect a spouse survivor who is eligible to receive a lump sum payable under this section or elected a spouse survivor who predeceased the retiree the amount of the overpayment to such retiree shall become an obligation of, and paid from, the combined fund. Notwithstanding the foregoing, the amount set off against the spouse survivor on account of overpayments received by the deceased member, the spouse survivor, or both, shall not exceed 3 times the full monthly installment payable to the spouse survivor for the month immediately prior to January 1, 2000 or if no full monthly installment was payable for the month immediately prior to January 1, 2000, the first full monthly installment payable after January 1, 2000.
e. Designated Beneficiary. A participant in the combined fund eligible to receive a lump sum bonus payment under this subsection shall be permitted to elect a designated beneficiary to receive such payment in lieu of the participant’s estate, if the participant dies prior to the payment being made. (Sub. 11 cr. File #991585, April 11, 2000; eff. Jan. 19, 2001. Sub. 11 am. File #00484, July 11, 2000; eff. Jan. 19, 2001. Sub. 11-b am. File #000792, Oct. 10, 2000; eff. Jan. 19, 2001. Sub. 11-c am. File # 00792, Oct. 10, 2000; eff. Jan. 19, 2001. Sub. 11-d am. File #000792, Oct. 10, 2000; eff. Jan. 19, 2001. Sub 11-e cr. File # 020891, Oct. 15, 2002; eff. Jan 2, 2003.)
12.
HEART ACT AND CODE SECTIONS 401(a)(37) AND 414(u).
a. Effective December 12, 1994, notwithstanding any other provision of the retirement system law, contributions, benefits and service credit with respect to qualified military service are governed by s. 414(u) of the Internal Revenue Code and the Uniformed Services Employment and Reemployment Rights Act of 1994.
b. Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service, as defined in ch. 43 of title 38, United States Code, to the extent required by s. 401(a)(37) of the Internal Revenue Code, survivors of a member in a state or local retirement or pension system, are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated vesting or survivor benefits that are contingent on the member's death while employed. In any event, a deceased member's period of qualified military service shall be counted for vesting purposes. This shall not include eligibility for a benefit under sub. 5.
c. Beginning January 1, 2009, to the extent required by s. 414(u)(12) of the Internal Revenue Code, an individual receiving differential wage payments, as defined under s. 3401(h)(2) of the Internal Revenue Code, from an employer shall be treated as employed by that employer, and the differential wage payments shall be treated as compensation for purposes of applying the limits on annual additions under s. 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly-situated individuals in a reasonably equivalent manner. (Sub. 12 cr. File #150113, June 2, 2015; eff. August 18, 2015.)
