Post Retirement Adjustments.

Ann Arbor City Code § 1:574

in effect

1:574. - Post Retirement Adjustments. (1) Minimum Benefit. Effective July 1, 2000, and each July 1 thereafter, the Board shall increase the amount of each pension benefit payable to a retiree or beneficiary of a retiree who had 5 or more years of credited service at the time of retirement by a pension adjustment amount which shall be the difference between $9,800.00 and the current annual retirement benefit paid to the retiree or beneficiary. For Members subject to section 1:552.1(20)(b), such retirees or beneficiaries of such a retiree must have had 10 or more years of credited service at the time of retirement to be eligible for such a pension adjustment amount. Said $9,800.00 amount, however, shall be reduced by 5% for each year of credited service less than 20 years. For Members of the Retirement System who commence to receive a Retirement Allowance on or after July 1, 2011, said $9,800.00 amount is to be further reduced by the corresponding percentage reduction in the retiree's straight life retirement allowance based upon the retiree's election of an early retirement in accordance with section 1:557(2) and/or a Retirement Allowance Option provided in section 1:559, and/or for the amount of a withdrawal of Accumulated Contributions under section 1:559(2). Said $9,800.00 amount shall be indexed based upon the National Consumer Price Index, each July 1, beginning July 1, 2001, prior to any applicable credited service reduction. This minimum benefit shall not apply to a Traditional Retirement Plan Member who is also a Dual Retirement Plan Member. (2) Pension Adjustments and Supplemental Benefits. Annually, the Board, in consultation with its actuary and upon receipt of the actuarial report for each fiscal year, shall determine whether to grant a permanent pension benefit adjustment or pay a 1-time supplemental benefit based upon the amount, if any, of funds from the pension adjustment account which may be distributed to eligible retirees and beneficiaries. The aggregate cost of such benefit adjustment or supplemental benefit distribution shall be funded by a transfer from the pension adjustment account to the pension reserve. There shall be no pension benefit adjustment or supplemental benefit paid unless the amount available in the pension adjustment account is equal to or greater than 1% of the total pension payroll. The term "total pension payroll" as used herein shall mean the total amount of pension benefits paid to retirees and beneficiaries in the prior fiscal year as reflected in the annual actuarial report. Eligibility for participation under this subsection shall be determined in accordance with subparagraph (a) and paid in accordance with either subparagraph (b) or (c) of this subsection. (a) Eligibility. Eligibility for participation in a pension benefit adjustment or a supplemental benefit distribution shall be determined in accordance with the following: (i) A retiree who retires under section 1:556(1) shall be eligible to participate beginning the first day of the fiscal year following the fiscal year containing the fifth anniversary of his/her effective date of retirement. A beneficiary of a deceased retiree shall be eligible to participate beginning the first day of the fiscal year following the fiscal year containing the date the retiree would have otherwise satisfied the eligibility condition herein. (ii) A disability retiree or disability retiree's surviving beneficiary shall be eligible to participate beginning the first day of the fiscal year following the fiscal year containing the first anniversary of the effective date of disability retirement. (iii) In the case of a survivor beneficiary who is receiving a duty death or non- duty death pension benefit, said beneficiary shall be eligible to participate beginning the first day of the fiscal year following the fiscal year containing the first anniversary of the effective date of the duty death or non-duty death pension benefit payable to said beneficiary. (b) Benefit Adjustments. Effective July 1, 2011 and each July 1 thereafter, the Board may increase the amount of each pension payable to all eligible retirees as defined in section 1:574(2)(a) in accordance with sub item (i) or (ii) below. (i) Each Pension that is to be adjusted may be increased by a uniform percentage of the current retirement allowance, but in no case less than $10.00 a month. No increase shall be granted on any July 1 if the percentage amount of increase is less than 1.0%. (ii) Each Pension that is to be adjusted may be increased by an amount determined in accordance with the point system as provided in section 1:574(3)(c). (c) Supplemental Benefit Distributions. Effective July 1, 2011 and each July 1 thereafter, the Board may authorize a 1-time supplemental benefit distribution to eligible retirees. The annual total supplemental distribution amount shall not exceed an amount equal to 1/12 of total pension payroll. Distributions shall be paid in a lump sum and paid in such manner and method as approved by the Board. The distribution of benefits hereunder from the pension adjustment account shall not be considered a permanent increase in the rate of Retirement Allowance to be paid and shall not create a liability for its continuance. Supplemental benefit distributions shall be based upon a point system and paid in the following manner: (i) Each retiree receives 1 point for each full year of retirement as of the first day of the fiscal year for the year in which the distribution is to occur; (ii) Each retiree receives 1 point for each full year of service credit for actual service rendered in the employ of the City; (iii) Points are summed for all eligible retirees as of the first day of the fiscal year for the year in which the distribution is to occur; and (iv) The total annual benefit distribution amount as determined by the Board is multiplied by the ratio of a retiree's points to the total points of all retirees (i.e., the sum of (i) and (ii) divided by (iii) multiplied by the total annual distribution amount). (v) Notwithstanding the foregoing, no individual distribution to a retiree shall be made if the amount of the distribution is less than $25.00. (Ord. No. 16-28, § 1, 1-3-17)

Source: City of Ann Arbor, Michigan, Code (Municode Library, library.municode.com)URL: https://library.municode.com/mi/ann_arbor/codes/code_of_ordinances?nodeId=TITIAD_CH18EMRESY_1_574POREADFetched: 11/8/2026