Method of Financing.
Milwaukee City Charter § 36-08
in effect36-08. Method of Financing.
1. FUNDS. The assets of the retirement system shall be credited according to the purpose for which they are held in one of 4 funds as follows:
2.
RETIREMENT FUND.
a. Contributions. The retirement fund shall be the fund into which all member and city or city agency contributions, made with respect to members, retired members, survivors, and beneficiaries who are not participants in the combined fund, together with investment income attributable to the retirement fund shall be paid except as hereinafter otherwise provided. There shall also be paid into the retirement fund all other amounts received by the board with respect to members, retired members, survivors, and beneficiaries who are not participants in the combined fund as directed by it. All retirement allowances, death benefits, separation benefits and other benefits except as hereinafter otherwise provided shall be paid from the retirement fund for members, retired members, survivors, and beneficiaries who are not participants in the combined fund. (Par. a-1 cr. File #942016, July 14, 1995; eff. Sept. 27, 1995. Par. a am. File #970387, Oct. 14, 1997, eff. Dec. 17, 1997. Par. a am. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. a-1 rp File #991585, April 11, 2000; eff. Jan. 19, 2001.)
b. Duty Disability Fund. The actuary for the board shall each year determine what funds are required to provide duty disability benefits under s. 36-05-3 and heart and lung law benefits under s. 891.45, Wis. Stats. with respect to members, retired members, survivors and beneficiaries who are not participants in the combined fund. He or she shall certify the contributions required of the city and the city agencies to pay for the duty disability benefits for firemen and policemen and general employees with respect to members, retired members, survivors and beneficiaries who are not participants in the combined fund; and also the contributions required of the city to pay benefits which arise and are allowed under the heart and lung law in excess of any disability and/or death benefits otherwise payable under the system. Benefits arising under the heart and lung law with respect to members, retired members, survivors and beneficiaries who are not participants in the combined fund shall be paid only from a fund established for such purpose and such heart and lung benefits shall not be paid out of any other funds of the retirement system. Effective January 1, 2000, there shall no longer be separate determinations each year relative to the funds required to provide duty disability retirement benefits for participants in the combined fund. (Par. b am. File #950929, Nov. 10, 1995; eff. Jan. 31, 1996. Par. b am File #991585, April 11, 2000. eff. Jan. 19, 2001.)
c. Duty Disability, Special Fund. The actuary shall annually determine the funds necessary to provide all duty disability benefits under s. 36-05 with respect to members, retired members, survivors and beneficiaries who are not participants in the combined fund. He or she shall certify the contributions required of the city and the city agencies to provide such benefits. Benefits arising under s. 36-05-3-c with respect to members, retired members, survivors and beneficiaries who are not participants in the combined fund shall be paid only from a fund established for such purpose and such benefits shall not be paid from any other funds of the retirement system. It shall be a violation of law to do so. There shall not be a separate contribution under this par. for participants in the combined fund. Effective February 1, 1996, the duty disability, special fund shall be merged with the retirement fund for members first enrolled on or after February 1, 1996. Thereafter, there shall no longer be separate determinations each year of the funds necessary to provide all necessary duty disability benefits under s. 36-05 for members first enrolled on or after February 1, 1996 and benefits for members first enrolled on or after February 1, 1996 arising under s. 36-05-3-c shall be paid from the retirement fund. Effective January 1, 2000 the retirement system shall transfer into the combined fund: (1) the liabilities of the duty disability special fund attributable to participants in the combined fund, (2) the proportionate share of the market value of assets in the duty disability special fund which is calculated by multiplying the market value of assets in the duty disability special fund by a fraction the numerator of is the liabilities of the duty disability special fund attributable to participants in the combined fund and the denominator of which is the total liabilities of the duty disability special fund. (Par. c, cr., Ch. Ord. 382, File #71-2300, Mar. 21, 1972. Par. c, am. File 950929, Nov. 10, 1995; eff. Jan. 31, 1996. Par. c am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
3.
EXPENSE FUND. The expense fund shall be the fund to which shall be credited all money deposited in accordance with s. 36-09-6 to pay the expenses necessary in connection with the administration and operation of the retirement system and from which payments are made for those administrative expenses. For purposes of this section, investment expenses shall include all fees and costs associated with investment of the retirement system assets, including fees for investment managers, investment advisors and investment consultants, and the costs of buying and selling securities or other investments.
a. Annually, the board shall estimate the amount of money which shall be deemed necessary to provide for the expense of operation of the retirement system. On or before the second Tuesday in May of each year the board shall file with the mayor a detailed statement of all estimated expenses which are to be incurred during the ensuing calendar year. Such statement shall be reviewed and approved as are all other budgetary requests under ch. 18. The board may authorize the payment of expenses from the combined fund, which were not contemplated at the time the annual budget was approved, if the payment of such expenses is authorized by a resolution adopted by a three-quarter vote of the members-elect of the city common council.
b. Excess revenue deposited in the expense fund in accordance with s. 36-09-6 shall be available for expenditure by the employes retirement system without budgetary authorization provided that such expenditure shall be approved in advance by the board and such expenditure for the prior year shall be reported to the mayor at the time the board files a detailed statement of all estimated expenses which are to be incurred during the ensuing calendar year. Excess revenue from security ending deposited in the expense fund which is not expended by the close of the calendar year next following the calendar year in which it is deposited shall be transferred to the retirement fund established under sub. 2. (Sub. 3 am. Ch. Ord. 477, File #79-693, July 24, 1979. Sub. 3 am. File #930242, July 6, 1993; eff. Sept. 21, 1993., Sub. 3 rc. File #970387, Oct. 14, 1997; eff. Dec. 17, 1997. Sub. 3 am. File #991585, April 18, 2000; eff. Jan. 19, 2001. Sub. 3-0 and a am. File #991585, April 11, 2000; eff. Jan. 19, 2001. Sub 3 am. File #021328, Jan. 22, 2003; eff. April 9, 2003.)
4.
FIREMEN AND POLICEMEN'S SURVIVORSHIP FUND. The firemen and policemen's survivorship fund shall be the fund in which shall be accumulated all reserves from contributions by members and the city for the payment of survivorship benefits for members, retired members survivors and beneficiaries who are not participants in the combined fund as provided for in this act. The funds for firemen and policemen's survivorship benefits may be invested as provided in s. 36-09. Effective January 1, 2000 the firemen and policemen’s survivorship fund shall no longer be in existence for firemen and policemen and firemen and policemen retired on a disability allowance who participate in the combined fund. (Sub. 4 am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
5.
INVESTMENT FUND ACCOUNT.
a. The board shall maintain as part of its accounts a separate and independent account known as the investment fund account. All gains realized by the board upon the sale, redemption or other disposition of securities during a calendar year shall be credited to such fund, and all investment expenses and losses sustained by the board through the sale, redemption or disposition of securities except sales of bonds referred to in par. b during a calendar year shall be charged against such fund. The board shall have approval over investment expenditure arrangements but shall file with the mayor a detailed statement of all estimated investment expenses which are to be incurred during the ensuing calendar year, similar to the expenses to be paid from the expense fund in sub. 3. Any remaining balance in such fund at the close of the calendar year shall be allocated to the various other funds established under this section based upon the weighted average fund balances at cost for the year for such funds. (Par. a rc., Ch. Ord. 499, File #80-1509, Jan. 20, 1981; Par. a-1 rc. File #970387, Oct. 14, 1997; eff. Dec. 17, 1997.)
b. The board shall maintain as part of its accounts an account known as unamortized losses on sale of bonds for reinvestment. This account shall be charged with all losses sustained by such board upon the sale of bonds effected by investment counsel without prior approval of such board, but only upon written recommendation from investment counsel including a report that the proceeds from other securities purchased with the proceeds of such sale will produce or exceed recovery of the loss over the remaining life of the bonds sold, or 10 years, whichever period is the shorter. The investment counsel shall be liable to the fund for any imprudence in making such sales without prior approval of the board. Based on the period during which the losses were determined to be recovered, such amortization annually shall be charged against investment income before determining net income realized from investments. This paragraph shall not apply to sales of bonds occurring on or after January 1, 1983. (Par. b am. Ch. Ord. 518, File #82-968, Oct. 19, 1982.)
6.
CITY CONTRIBUTIONS. Contributions by the city and city agencies shall be made as follows:
a. Retirement Fund. On account of members, retired members, survivors, and beneficiaries who are not participants in the combined fund, there shall be paid annually into the retirement fund by the city and city agencies for the preceding fiscal year an amount equal to the “normal contribution” as that term is defined in subd. 1, plus the amount required to bring the expected actuarial funded status of the retirement fund, as of the date the contribution is payable, to a percentage in excess of 100%.
a-1. The normal contribution for the retirement fund for the preceding fiscal year shall be the growth in actuarial accrued liability expected as a result of service in that year for all members participating in the retirement fund reduced, but not below zero, by member contributions expected to be deposited in the retirement fund under sub. 7. The actuarial accrued liability as of the valuation date shall be the portion of the total liabilities of the retirement fund that is based on service earned as of the valuation date by each active member, beneficiary and separated vested member who has not withdrawn accumulated contributions. The normal contribution shall be determined separately in respect of firemen and policemen. The determination of the normal contribution shall be based on such interest, mortality, separation, morbidity and retirement tables as have been adopted by the board. The normal contribution shall be determined by the actuary after each valuation. ( Subd. 1 am Ch. Ord. 489, File #80-225, June 17, 1980. Subd. 1 am. File #921978, Apr. 8, 1993; eff. June 16, 1993. Par. a rc. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. a-1 am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
a-2. Any difference between the actuarial accrued liability as defined in subd. 1, and the sum of the actuarially determined value of the assets of the retirement fund plus any unamortized bases established under this par. in prior valuations, shall be amortized over a period which will not exceed 30 years from the valuation date on which such difference is established; provided that as part of the valuation next following a fiscal year in which the city and city agency contributions are zero due to application of the 100% funded status limitation of this par. the actuary may eliminate any previously established amortization schedules and bases and shall recalculate a new “fresh-start” amortization schedule. Future payroll growth may be taken into account in the amortization process. (Subd. 2 rc. File #942017, July 14, 1995; eff. Sept. 27, 1995. Subd. 2 rc. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
b. Firemen and Policemen’s Survivorship Fund. There shall be paid annually into the firemen and policemen’s survivorship fund the amount required under s. 36-05-8-d. Notwithstanding the foregoing, effective January 1, 2000 no contributions shall be made to the firemen and policemen’s survivorship fund by or on behalf of participants in the combined fund. (Par. b am. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par c rp. File # 991585, April 11, 2000; eff. Jan. 19, 2001. Par. d cr. File #942017, July 14, 1995; eff. Sept. 27, 1995.) Pars. c and d rp. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
e. On or before September 1 in each year, the board shall certify to the common council or other governing body, and city agencies, the amounts which will become due and payable during the year next following to each of the funds of the retirement system. The amount so ascertained shall be included by the common council or other governing body and city agencies in their budgets and shall be appropriated and paid to the retirement system by the city and city agencies in January of the fiscal year next following. (Par. d rn. to e File #942017, July 14, 1995; eff. Sept. 27, 1995.)
f. In order to meet the requirements of this act, the common council or other governing body or city agency is authorized to levy a tax annually, which tax shall be in addition to all other taxes such common council or other governing body or city agency has been authorized to levy upon all taxable property, real and personal. Such tax shall be levied and collected at the same time and in the same manner as other city or city agency taxes are levied and collected according to law. (Par. e rn to f File #942017, July 14, 1995; eff. Sept. 27, 1995.)
g. Such city agencies not authorized by law to levy a tax upon taxable property shall upon the direction of the board include the necessary amounts so needed in their respective budgets. (Par. f rn. to g File #942017, July 14, 1995; eff. Sept. 27, 1995.)
h. Combined Fund.
h-1. Beginning with the contribution due on January 31, 2014, on account of members, retired members, survivors and beneficiaries who are participants in the combined fund, the city and city agencies shall pay annually into the combined fund for the preceding year an amount equal to the product of the actuarial contribution rate applied to the sum of the covered compensation. The actuarial contribution shall be based on separately calculated rates for policemen, firemen, and general city employees and shall be applicable for a 5-year period. The actuary shall, consistent with actuarial standards of practice, set the actuarial contribution rate at a percentage sufficient to fund the entire amount of the employers’ share of the normal cost, to amortize any unfunded past service liability and to maintain the solvency of the combined fund to meet benefit obligations for retired lives.
h-2. Commencing with the contribution due on January 31, 2019, the actuary shall reset the actuarial contribution rate every 5 years in conjunction with a 5-year experience review of the employes’ retirement system. The actuary shall, consistent with standards of actuarial practice, base the reset rate on the current interest, mortality, separation, morbidity and retirement tables as adopted by the board. Notwithstanding the foregoing, the 5-year reset rate described herein is repealed effective January 1, 2024 and shall not apply to any contribution due after January 31, 2024.
h-3. Beginning with the contribution due on December 31, 2025, on account of members, retired members, survivors and beneficiaries who are participants in the combined fund, the city and city agencies shall pay annually into the combined fund for the preceding year the actuarial contribution rate determined by the actuary pursuant to ss. 36-15-15 and 62.625, Wis. Stats. The actuarial contribution shall be based on separately calculated rates for policemen, firemen, and general city employees. Unless otherwise required by s. 62.625, Wis. Stats., the actuary shall, consistent with actuarial standards of practice, set the actuarial contribution rate at a percentage sufficient to fund the entire amount of the employers’ share of the normal cost, to amortize any unfunded past service liability and to maintain the solvency of the combined fund to meet benefit obligations for retired lives.
h-4. The actuary shall submit the annual contribution amounts payable each year based on the actuarial contribution rate to the board no later than August 15. (Par. h cr. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. h rc. File #121417, April 30, 2013; eff. July 16, 2013.) (Par. h-2 am. File #091274, March 2, 2010; eff. May 18, 2010. Par. h-2. am. File #230362, Sept. 19, 2023; eff. Nov. 18, 2023.) (Par. h-3. rn. to h-4. File #230362, Sept. 19, 2023; eff. Nov. 18, 2023. Par. h-3. cr. File #230362, Sept. 19, 2023; eff. Nov. 18, 2023.)
7.
MEMBER CONTRIBUTIONS. Member contributions to the system shall be deposited in the member's account as follows:
a. Members who are not firemen, policemen or elected officials shall contribute or have contributed on their behalf, 5.5% of the members’ earnable compensation. Subsequent to and commencing with the first pay period of 1970, the city shall contribute on behalf of a general city employee 5.5% of such member's earnable compensation. Members employed by city agencies participating in the system shall contribute 5.5% of their earnable compensation less any contribution made on their behalf as determined by the governing bodies of such agencies. Notwithstanding the foregoing, subsequent to and commencing with the first pay period following the effective date of this charter ordinance, all members who are not firemen, policemen or elected officials and were enrolled as members of the retirement system prior to January 1, 2014, shall contribute 5.5% of their earnable compensation. General city employees who enroll as members in the retirement system on or after January 1, 2014, shall contribute 4% of their earnable compensation. (Par. a rc., Ch. Ord. 375, File #71-1754, Dec. 7, 1971. Par. a ra. to a-1, File #090613, Sept. 22, 2009; eff Dec. 9, 2009. Par. a-1 am. File #121701, May 21, 2013; eff. Aug. 10, 2013; Par. a-1 am. File #110740, Nov. 7, 2014; eff. 1/26/2015.) (Par. a-2 cr, File #090613, Sept. 22, 2009; eff. Dec. 9, 2009. Par. a-2 am. File #090951 Dec. 1, 2009; eff. Feb. 16, 2010. Par. a-2 am. File #091068, Dec. 22, 2009; eff. March 10, 2010. Par. a-2 am. File #091214, Jan. 20, 2010; eff. April 5, 2010. Par. a-2 am. File #091308, March 2, 2010; eff. May 18, 2010. Par. a-2 am. File #091530, March 24, 2010; eff. June 1, 2010. Par. a-2 am. File #091609, May 25, 2010; eff. August 10, 2010. Par. a-2 am. File #100173, June 15, 2010; eff. August 25, 2010. Par. a-2 am. File #100241, July 7, 2010; eff. Sept. 22, 2010. Par. a-2 am. File #100574, Sept. 21, 2010; eff. Dec. 6, 2010. Par. a-2 am. File #101070, Jan. 19, 2011; eff. March 29, 2011. Par. a-2 am. File #101418, April 12, 2011; eff. June 28, 2011. Par. a-2 am. File #101246, July 26, 2011; eff. Oct. 11, 2011. Par. a-1 ra. File #110740, Nov. 7, 2014; eff. Jan. 26, 2015 ) (Par. a-3 cr. File #121701, May 21, 2013; eff. Aug. 10, 2013. Pars. a-2 & 3 rp. File #110740, Nov. 7, 2014; eff. Jan. 26, 2015.)
b. Except for members of the system, who are initially employed as firemen or policemen on or after October 3, 2011, the employer shall have the obligation to contribute the percentages set forth in this section. Members who are firemen shall have contributed for them by the employer 7% of such firemen's earnable compensation. Members who are policemen shall have contributed by the employer, commencing with the 1st pay period of 1971, 6% of such policemen's earnable compensation; policemen shall contribute 1% of their earnable compensation. Members who are policemen shall have contributed by the employer commencing with the first pay period of 1990, 7% less $1 of such policemen's earnable compensation. Commencing in 1990, policemen, excluding sergeant of police, detective lieutenant and ranks above same, shall contribute $1 of their longevity in rank pay, if any, payable at the close of the year. Notwithstanding the foregoing, commencing with the 1st pay period of 2016, policemen who were enrolled as members in the retirement system before October 3, 2011, shall contribute 7% of their earnable compensation. Notwithstanding the foregoing, commencing with the 1st pay period of 2015 until the 1st pay period of 2016, firemen who were enrolled as members in the retirement system before October 3, 2011, shall contribute 3.5% of their earnable compensation; thereafter, commencing with the 1st pay period of 2016, these firemen shall contribute 7% of their earnable compensation. Members of the system who are initially employed as firemen or policemen on or after October 3, 2011, shall contribute 7% of their earnable compensation. (Par. b am. Ch. Ord. 556, File #85-769, Dec. 4, 1985; eff. Feb. 17, 1986. Par. b am. File #890633, July 25, 1989; eff. Oct. 14, 1989. Par. b, am. File #910901, Sept. 24,1991; Dec. 10, 1991 Par. b am. File #110347, July 26, 2011; eff. Oct. 11, 2011. Par. b am. File #151113, Dec. 15, 2015; eff. Feb. 29, 2016. Par. b am. File #141569, May 24, 2016; eff. Aug. 10, 2016. Par. b am. File #160124, July 26, 2016; eff. Oct. 11, 2016. Par. b am. File #141568, Sept. 20, 2016; eff. Dec. 6, 2016.)
c. Members who are elected officials shall contribute or have contributed on their behalf 7% of the members’ earnable compensation, and in respect to such members subsequent to and commencing with the 1st pay period of 1971 the city shall contribute 7% of earnable compensation. Notwithstanding the foregoing, subsequent to and commencing with the first pay period following the effective date of this charter ordinance, elected officials who were enrolled in the retirement system prior to January 1, 2014, and whose accrual rate is 2.5% under s. 36-05-1-g, shall contribute 7% of their earnable compensation and elected officials who were enrolled as members in the retirement system prior to January 1, 2014, and whose accrual rate is 2% under s. 36-05-1-g, shall contribute 5.5% of their earnable compensation. Elected officials who enroll as members in the retirement system on or after January 1, 2014, shall contribute 4% of their earnable compensation. (Par. c rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971. Par. c am. File #121701, May 21, 2013; eff. Aug. 10, 2013.; par. c am. File #110740, Nov. 7, 2014; eff. Jan. 26, 2015.)
d. The board shall certify the percentage of earnable compensation of each member to be contributed for a member on each payroll. In determining the amount earnable by a member in a payroll period, the board may consider the rate of compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period, and it may omit contributions for any period less than a full payroll period if an employee was not a member on the first day of the payroll period. (Par. d rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971.)
e. The contributions provided for herein shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the contributions provided for herein and shall receipt for his full salary or compensation and payment of salary or compensation less said contributions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such person during the period covered by such payment, except as to the benefits provided under this act. The city and city agencies shall transmit the amounts contributed and said amounts shall be paid into the retirement fund for participants in the retirement fund, or the combined fund for participants in the combined fund and shall be credited, together with regular interest thereon to the individual account of the member. Effective January 1, 2000, individual accounts, including interest credited annually thereto, for participants in the combined fund shall be transferred from the retirement fund to the combined fund. (Par. e rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971. Par. e am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
f. In addition to the contributions credited to the member's account as hereinbefore provided, any member may deposit with the system an additional amount, such additional amount in any year not to exceed the amount of the deposit as hereinbefore provided in respect of the member. In respect of such additional contribution, an additional retirement allowance, death benefit or separation benefit shall be paid that is the actuarial equivalent of such additional accumulated contributions. Such additional amounts so deposited, improved with interest at a rate not exceeding the regular interest rate shall be returnable to the member in cash upon application to the board, or as an additional allowance of equivalent actuarial value at the time of retirement. If such additional amounts are withdrawn at any time prior to the retirement, the member shall not thereafter be eligible to make additional contributions. (Par. f rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971.)
g. Any member covered by the social security act from whose compensation the city is required to make deductions in order to pay taxes or contributions, shall be required to reimburse the city for that part of the social security taxes or contributions which would ordinarily be deductible from compensation paid to such member. If he fails so to do, the board shall deduct from the member's account the amount due the city for such social security taxes or contributions paid before turning over any amounts to such member or to a beneficiary in the instance where the beneficiary would be entitled to the proceeds from such member's account. (Par. g rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971.)
h. If the employer shall pay a part or all of the member contribution to the fund which formerly was deducted from the member's salary or compensation then in such instance no deduction shall be made from the member's salary or compensation for that amount paid by the employer in lieu of the member's contribution, and such contribution shall be credited to the member's account. (Par. h rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971.)
i. The member's account shall consist of those member contributions deposited in accordance with pars. a, b, c, and f and reduced in accordance with par. g together with regular interest thereon. (Par. i rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971.)
j. Notwithstanding anything herein contained to the contrary, in the event the contributions required under pars. a, b, or c are not made by or on behalf of a member, or in the event contributions with or without regular interest or a portion thereof have been returned to a member or paid on his behalf to another party, such member's account shall be reduced accordingly and the benefits otherwise provided under the system shall be reduced by the actuarial equivalent of such payment or contributions not paid by or on behalf of the member. (Par. j rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971.)
k. Whenever a member's account is less than $5 upon death or separation from service, his or her membership and account in this system shall be terminated and the amount shall be credited to the retirement fund (or combined fund in the case of participants in the combined fund); however, if a valid claim for the amount is filed by the member or a person legally entitled to the sum, the same shall be refunded. (Par. k rc. Ch. Ord. 375, File #71-1754, Dec. 7, 1971. Par. k am. File #991585, April 11, 2000; eff. Jan. 19, 2001.)
L. In addition to any other member contributions under sub. b, effective Pay Period 1 through Pay Period 26, 1993 and December 31, 1995 through December 28, 1996 for firemen, and effective Pay Period 1, 1993 through December 30, 1995 for policemen, each fireman or policeman in active service and each fireman or policeman, other than a fireman or policeman eligible under s. 36-05-3-c-1-b, who retires on a duty disability retirement allowance on or after January 1, 1993 shall contribute 1% of the member's earnable compensation or 1% of the member's duty disability retirement allowance toward the cost of the benefit provided for under s. 36-05-1-h-6. Effective Pay Period 1, 1994 through December 30, 1995, each fireman, other than a fireman eligible under sec. 36-05-3-c-1-b, in active service and each fireman who retires on a duty disability retirement allowance on or after January 1, 1993 shall contribute 2% of the member's earnable compensation or 2% of the member's duty disability retirement allowance toward the cost of the benefit provided for under s. 36-05-1-h-6. A fireman who retires on a duty disability retirement allowance shall cease to make this contribution at the time the member makes an irrevocable election to continue duty disability or converts to normal service retirement under s. 36-05-3-c-3-f. (Par. L cr. File #940423, July 15, 1994; eff. Sept. 28, 1994. Par. L am. File #950521, July 28, 1995; eff. Oct. 3, 1995. Par. L rc. File #950597, Sept. 27, 1995; eff. Dec. 13, 1995.)
m. During the 8-year period immediately following their enrollment, general city employes who are enrolled as members on or after January 1, 2000 shall contribute to the combined fund a sum expressed as 1.6% of the members’ pensionable earnings if they participate in the combined fund. If a member who makes contributions under this paragraph separates from service without a vested pension or withdraws his or her accumulated contributions, amounts contributed under this paragraph shall be returned to the contributor without interest. This subsection shall not apply to general city employees including elected officials, required to contribute a member contribution under par. a or c. (Par. m cr. File #991585, April 11, 2000; eff. January 19, 2001. Par. m am. File #090613, Sept. 22, 2009; eff. Dec. 9. 2009. Par. m am. File #090951, Dec. 1, 2009; eff. Feb. 16, 2010. Par. m am. File #091068, Dec. 22, 2009; eff. March 10, 2010. Par. m am. File #091214, Jan. 20, 2010; eff. April 5 2010. Par. m am. File #091308, March 2, 2010; eff. May 18, 2010. Par. m am. File #091530, March 24, 2010; eff. June 1, 2010. Par. m am. File #091609, May 25, 2010; eff. August 10, 2010. Par. m am. File #100173, June 15, 2010; eff. August 25, 2010. Par. m am. File #100241, July 7, 2010; eff. Sept. 22, 2010. Par. m am. File #100574, Sept. 21, 2010; eff. Dec. 6, 2010. Par. m am. File #101070, Jan. 19, 2011; eff. March 29, 2011. Par. m am. File #101418, April 12, 2011; eff. June 28, 2011. Par. m am. File #110174, June 14, 2011; eff. Aug. 30, 2011. Par. m am. File #121701, May 21, 2013; eff. Aug. 10, 2013. Par. m am. File #110740, Nov. 7, 2014; eff. Jan. 26, 2015.)
n. If a general city employee who enrolled as a member on or after January 1, 2000 separates from service without having contributed the full amount of the contribution required under par. m, and if the employee does not voluntarily pay the amount owed, then the board shall collect the amount as far as practicable by deducting from any benefit payment an amount sufficient to collect the amount owed over the remaining life expectancy of the member. If the benefit is to be paid in a lump sum, the amount owed shall be deducted from the lump sum. If the benefit is to be paid monthly, the monthly payments shall be actuarially reduced over the remaining life of the member to an amount that will collect the amount owed and the loss caused by late payment. (Par. n cr. File #051397, Feb. 28, 2006; eff. May 16, 2006.)
o. Pre-Tax Deduction. All member contributions made under pars. a, b and c, except the policemen's $1 contribution, shall be implemented pursuant to the provisions of Internal Revenue Code Section 414(h) (2) by means of direct payment by the city or city agency to the combined fund. The city or city agency shall fund the cost of member contributions under pars. a and c and for members initially employed as firemen or policemen on or after October 3, 2011, as provided in par. b by means of a pre-tax salary deduction from the salary of employees on whose behalf such payments are made. Members shall not have the option of choosing to receive the contributed amounts directly instead of having them paid to the combined fund. (Par. o cr. File #091068, Dec. 22, 2009; eff. March 10, 2010. Par. o am. File #110201, June 14, 2011; eff. Aug. 30, 2011. Par. o am. File #110740, Nov. 7, 2014; eff. Jan. 26, 2015.)
8.
EMPLOYERS’ RESERVE FUND. Effective January 1, 2000 there shall be created a fund to be known as the employers’ reserve fund for the exclusive purpose of holding voluntary employer contributions made by the city and city agencies. The retirement system shall establish separate accounts within the fund for the city and each city agency. Earnings on funds on deposit in each account shall be credited annually as part of the annual valuation. The city’s funds in the employers’ reserve fund shall be invested in a manner consistent with guidelines approved by the common council. The administrative functions shall be the responsibility of the committee on finance and personnel. The city shall bear any incremental costs associated with the administration or investment of the city funds. Absent any investment guidelines approved by the common council, earnings shall be credited based on the earnings of the retirement system as a whole. The reserve shall be funded by voluntary contributions from the city and city agencies and also by the amount transferred from the firemen and policemen’s survivorship fund. The reserve shall be used to offset against contributions required under subs. 6 and 7 in accordance with directives contained within a formal resolution adopted by the city or city agencies and for no other purposes. No funds may be transferred from the combined fund or the retirement fund to the employers’ reserve fund. (Sub. 8 cr. File #991585, April 11, 2000; eff. Jan. 19, 2001. Sub. 8 am. File #100502, Oct. 12, 2010; eff. Dec. 28, 2010)
9.
COMBINED FUND. a. Creation. Effective January 1, 2000, there shall be created a fund to be known as the combined fund into which all member contributions, city contributions and city agency contributions, shall be paid on account of members, retired members and beneficiaries participating in the combined fund, together with interest earnings attributable to assets of the combined fund. There shall be paid annually into the combined fund by the city and city agencies for the preceding fiscal year the actuarial contribution under sub. 6-h-1 for members who participate in the combined fund. All members of the retirement system first enrolled after June 27, 2000 shall participate in the combined fund. Members and retired members (or their survivors and beneficiaries if the member is deceased) enrolled in the retirement system prior to June 28, 2000 may execute a consent form to participate in the combined fund in which case they shall participate in the combined fund effective January 1, 2000. Other members, retired members, survivors and beneficiaries shall participate in the combined fund effective January 1, 2000 only after there is a final determination by a court of competent jurisdiction that such participation does not violate their individual rights. If a member is a participant in the combined fund the member’s survivors and beneficiaries shall be designated as participants in the combined fund by virtue of the members’ participation in the combined fund. All retirement allowances, disability benefits, separation benefits and other benefits payable to combined fund participants shall be paid from the combined fund effective January 1, 2000 or upon enrollment in the retirement system if participants are first enrolled in the retirement system after January 1, 2000. Effective January 1, 2000, all expenses in connection with the administration and operation of the retirement system defined as those described in the letter dated April 29, 1999 (and attachments), attached to the file [#991585, April 11, 2000; eff. Jan. 19, 2001], including investment related expenses, computerization related expenses and indirect related expenses (overhead) shall be paid from the combined fund created under this subsection.
b. Outstanding debts. Any provision of ch. 36 notwithstanding, all outstanding judgment debts or contributions of the city or any city agency for unpaid contributions to the separate funds under s. 36-08 or the merged fund (merged special disability fund and retirement fund for members enrolled after February 1, 1996, but before January 19, 2001; incurred prior to January 1, 2000, including special disability fund obligations of the city for the years 1996 through 1999, performance fee obligations of the city for the year 1997, investment expense obligations of the city and city agencies for the years 1998 and 1999 and merged fund obligations of the city and city agencies for the years 1997 through 1999 and interest owing thereunder shall become obligations of, and paid from, the combined fund. (Sub. 9 cr. File #991585, April 11, 2000; eff. Jan. 19, 2001. Par. a am. File #121417, April 30, 2013; eff. July 16, 2013.)
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=54Fetched: 10/26/2026