Coordinated Plan.
Milwaukee City Charter § 36-06
in effect36-06. Coordinated Plan.
1. ESTABLISHED. A coordinated plan is established within the present retirement system as of January 1, 1958, which shall be governed by the provisions of the employes' retirement act, except as hereinafter provided, and which shall provide for participation in old age, survivors, disability and health insurance benefits derived under the social security act. (Sub. 1 am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
2.
MEMBERSHIP. Membership in the coordinated plan shall include those members of the employes' retirement system who elect such coverage and are covered by the provisions of the social security act. Such coordinated plan members shall consist of all future employees who shall enter upon membership of the retirement system on and after January 1, 1958, the effective date of the social security agreement extending coverage under the social security act to members of the retirement system, except employees in positions to which such coverage is not extended. (Sub. 2 am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
4.
CONTRACTUAL RIGHTS MAIN-TAINED. The contractual rights which are vested and provided for under the employes' retirement act, including the provision therein with respect to deferred pay, shall in all respects apply and be in effect with respect to the coordinated plan. None of such rights shall be disturbed or impaired, except that contributions required of the employee and employer to such coordinated plan may be adjusted in accordance with the provisions of the coordinated plan, and a deduction in benefits or allowances granted under the employes' retirement act subsequent to the effective date of the coordinated plan may be made in order to carry out the provisions of such coordinated plan. The benefits or allowances under the coordinated plan may be subsequently amended only in the particulars required because of amendments to the social security act, it being expressly understood that a participating employee in such coordinated plan shall in no manner whatsoever, except as provided in this subsection at the time of its enactment, have his rights, benefits or privileges cancelled, impaired or abrogated; and any employee eligible to participate in such coordinated plan shall have a vested right upon a contractual basis to obtain the rights, benefits and privileges which are accorded and granted by the employes' retirement act under the coordinated plan. Such rights, benefits and privileges herein referred to and existing upon a contractual and vested basis are predicated upon a consideration for services rendered and to be rendered by such employee and deferred pay as provided in s. 36-13-4; and as a consideration of the employment, such benefits, rights and privileges shall neither be abrogated nor impaired, except only as is required by virtue of amendments to the social security act which affect the provisions of the coordinated plan. Contractual rights hereunder shall be applicable also to any member who entered the system after January 1, 1958. (Sub. 4 am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
5.
PROVISIONS OF COORDINATED PLAN DETAILED. a. Benefits. The benefits of the coordinated plan shall be those set forth in s. 36-05 with the following exceptions:
a-1. Optional benefits. Any optional benefit payable prior to the payment of a social security benefit shall be based on the actuarial equivalent of the retirement allowance otherwise payable, taking into account the reduction in the retirement allowance after the social security benefit becomes payable.
a-2. Adjustment of retirement allowances for social security benefits. Until the effective date of any service retirement, any coordinated plan member may elect to convert the allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value of such amount that, with his social security benefit he will receive, so far as possible, approximately the same amount per year before and after the commencement of such benefit. (am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
b. Contributions. b-1. Coordinated plan members' contributions. The contributions required of the coordinated plan member shall be those set forth in s. 36-08-7. This section shall be operative with the first pay period for 1969. (Subd. 1 am. Ch. Ord. 382 File #71-2300, Mar. 21, 1972.)
b-2. Employer's contribution under coordinated plan. The contributions required by the employer under the coordinated plan may be adjusted as is required under s. 36-08-6. (Subd. 2 am. Ch. Ord. 382 File #71-2300, Mar. 21, 1972.)
b-3. Retroactive taxes under federal insurance contributions act. The proper city officers and the annuity and pension board are authorized to pay from the annuity savings fund an amount equal to the taxes under the federal insurance contributions act payable by a coordinated plan member for the period beginning January 1, 1956, to the date of transfer. Such amount shall be deducted from the amount credited to such member in the annuity savings fund and the execution of the consent agreement as hereinafter provided for shall evidence authority granted by such member for such deduction. (Subd. 3 am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
6.
CONSENT AGREEMENT. Members of the employes' retirement system who elect to participate under the coordinated plan shall execute a consent agreement. (Sub. 6 am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
7.
AUTHORITY TO ACT UNDER COORDINATED PLAN AGREEMENT. The common council may by resolution within the limitation provided for in this subsection authorize the manner and method of making deductions from wages and for making payments and designate the officer or officers of the city who shall be required to make such deductions and payments. (Sub. 7 am. Ch. Ord. 382 File #71-2300, Mar. 21, 1972.)
9.
LIMITATIONS OF PAYMENT UNDER COORDINATED PLAN. In applying the provisions of this section relating to the coordinated plan, it is expressly provided that no member participating in the coordinated plan and who shall retire during the period from June 29, 1975 to December 28, 1975, shall receive by way of retirement allowances, together with social security benefits, an aggregate sum in excess of 82% of his or her final average salary, and in the event that the amount which such member would receive under the coordinated plan, including social security benefits, paid to him or her, not including social security benefits paid in respect of such member's dependents, exceeds such amount, then the retirement allowance shall be reduced to an amount which, when added to social security benefits as herein set forth, shall not in the aggregate exceed 82% of his or her final average salary. It is expressly provided, however, that additional contributions made by an employee who shall retire after June 29, 1975 under s. 36-08-7-f shall be excluded in determining the 82% limitation provided for herein. It is further expressly provided that no member participating in the coordinated plan and who shall retire from and after December 28, 1975, shall receive by way of retirement allowances, together with social security benefits, an aggregate sum in excess of 85% of his or her final average salary, and in the event that the amount which such member would receive under the coordinated plan, including social security benefits paid to him or her, not including social security benefits paid in respect of such member's dependents, exceeds such amount, then the retirement allowance shall be reduced to an amount which, when added to social security benefits as herein set forth, shall not in the aggregate exceed 85% of his or her final average salary. It is expressly provided, however, that additional contributions made by an employee who shall retire after December 28, 1975, under s. 36-08-7-f shall be excluded in determining the 85% limitation provided for herein. Commencing with duty disability payments occurring on or after January 1, 1995, in applying the provisions of this subsection the maximum duty disability allowance payable to a member participating in the coordinated plan under s. 36-05-3 together with the member's social security benefit shall be limited to an aggregate sum of 100% of the member's final average salary, provided the disability pension is not fixed. (Sub. 9 am. Ch. Ord. 423, File #74-675-d, July 15, 1975. Sub. 9 am. File #940937, Oct. 18, 1994; eff. Jan. 3, 1995.)
10.
CONSTRUCTION AND APPLICA-TION OF COORDINATED PLAN PROVISIONS.
a. The provisions of this section shall be construed and applied in such a manner so that the same shall be consistent with and in conformity to the provisions of the federal laws and regulations relating to Title II of Federal Old Age, Survivors, and Disability and Health Insurance Benefits act, and the effective date referred to shall be deemed to be January 1, 1958 the date when an agreement extending coverage under the social security act to members of the employes' retirement system was executed. (Par. a am. Ch. Ord. 382, File #71-2300, Mar. 21, 1972.)
c. In construing or applying the provisions of this section referring to the attainment of age 65 for social security benefits or allowances, such age shall apply except, however, that if the social security act is amended to provide for a different age for eligibility for full benefits or allowances, then such age for eligibility for full benefits as provided for in the social security act as amended shall be applicable in applying provisions of the coordinated plan.
d. It is expressly provided that any person who participates in the coordinated plan shall be required as a condition of his participation in such plan to make available to the annuity and pension board of the employes' retirement system such information concerning social security benefits as the board shall deem pertinent. (Par. d am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
e. From and after December 31, 1966, there shall be no reduction in nor shall there be any offset to, the retirement allowance of any member of the coordinated plan who retires at any time subsequent to December 31, 1966, because of his receipt or eligibility to receive social security allowances or benefits. As to a member in the coordinated plan, who retires between January 1, 1966, and December 31, 1966, both dates inclusive, and who is eligible to receive or receives social security benefits, there shall be no reduction nor offset in his retirement allowance after December 31, 1966. This amendment has no application whatever to provisions of the employes' retirement act pertaining to the 82% maximum for those members who shall retire during the period from June 29, 1975 to December 28, 1975, and to the 85% maximum for those members who shall retire after December 28, 1975, as set forth in sub. 9. It is the intendment of this subsection that the retirement allowance of any member in the coordinated plan who retires on January 1, 1967, or any time thereafter, shall not be reduced nor shall it be offset in any manner because such member is or becomes eligible to receive or does receive Social Security benefits and that the social security offset hereinbefore provided for in the employes' retirement act is eliminated, further as to those members of the coordinated plan who retire at any time subsequent to December 31, 1965, but prior to January 1, 1967, no offset shall be applied effective January 1, 1967. (Par. e am. Ch. Ord. 423, File #74-675-d, July 15, 1975.)
f. Notwithstanding sub. 9, general members in the coordinated plan who retire on or after January 1, 1989, shall not receive a reduction in their service retirement allowance on account of social security benefits. Members in the coordinated plan who retire on or after January 1, 1989, shall not receive by way of a service retirement allowance, exclusive of social security benefits, a sum in excess of 70% of final average salary provided, however, that the application of this limitation shall not operate to diminish that portion of a member's retirement allowance attributable to creditable service earned through December 30, 1988. (Par. f. cr. File #891171, Sept. 28, 1989; eff. Dec. 17, 1989.)
12.
BOARD TO CERTIFY NUMBER OF TRANSFERS. The board shall certify to the director of the public employes social security fund, the number of persons who have qualified to be covered by each modification to be submitted to implement this section. (Sub. 12 am. Ch. Ord. 332, File #67-355-a, July 25, 1967.)
Source: City of Milwaukee Legislative Reference Bureau, Milwaukee City Charter and Code of Ordinances (city.milwaukee.gov master PDFs)URL: https://city.milwaukee.gov/ImageLibrary/Groups/ccClerk/Ordinances/City-Charter/CH36.pdf#page=49Fetched: 10/26/2026