Memphis Code of Ordinances § 4-32-1 Definitions.
Sec. 4-32-1. - Definitions.
As used herein, the following words and phrases shall have the meaning indicated unless otherwise defined or required by the context:
Accrued benefit means, for a participant who has not reached his or her normal retirement date, a monthly amount payable thereafter pursuant to the normal form of settlement, calculated in accordance with section 4-32-5 as of the date of his or her termination of employment based on his or her average compensation and credited service as of such date.
Actuarial equivalent or actuarial equivalence means equivalent value of a benefit computed on the basis of the 1984 Unisex Pension Mortality Table set back three years for participants and a rate of interest of 6½ percent.
Actuary means a qualified actuary who is enrolled by the joint board for the enrollment of actuaries and who performs the annual actuarial valuations and other computations required under the retirement system.
Annuity starting date means the first day of the first period for which an amount is payable as an annuity or, in the case of a benefit not payable in the form of an annuity, the first day as of which all events have occurred which entitle the participant to such benefit.
Average compensation means:
1. As to any participant who is under the '75 plan provisions, the average monthly compensation of a participant for the three consecutive years of library service (excluding and disregarding any hiatus in the participant's employment by the library) during which his or her compensation was the highest. If his or her average monthly compensation for the 12 months next preceding the date of his or her retirement shall exceed the average of his or her highest three years compensation, then his or her average compensation shall be based upon the 12-month period next preceding the date of his or her retirement, and in the case of death or disability incurred in the performance of duties before any participant has been employed in city service for five years, his or her average compensation shall be the average monthly rate of compensation during his or her period of service. Beginning on and after July 1, 1975, the average compensation of all new employees shall be based on the highest three years average. The purpose of this language is to exclude that provision wherein employees could at their option use for their average compensation the 12 months next preceding the date of retirement.
2. As to any participant who is under the '79 plan provisions, the average monthly compensation of a participant for the three consecutive years of library service (excluding and disregarding any hiatus in the participant's employment by the library) during which his or her compensation was the highest. In the case of death or disability incurred in performance of duties before any participant has been employed in the library for three consecutive years, his or her average compensation shall be the average monthly rate of compensation during this period of service; provided, further, that average compensation shall not exceed 6,240 hours of compensation earned.
Beneficiary means the recipient or recipients, last designated by a participant in writing on forms provided by the employer, who shall receive any benefits payable under the retirement system upon the death of the participant. If no such designation of beneficiary has been received by the employer prior to the date of death of the participant or if there is no surviving beneficiary and a benefit is due and payable that is a lump sum or may, under the terms of the retirement system, be commuted and payable as a lump sum, such benefit shall be payable to the state of the participant.
Board or board of administration means the board to which the administrative duties and responsibilities under the plan are delegated pursuant to section 4-32-29.
Child means a legitimate son or daughter, under 18 years of age, of a participant or beneficiary who has been a participant of the retirement system, or a child by adoption who has the status of a legally adopted child and who is under 18 years of age, unless such child qualifies under the definition of full-time student or handicapped child as set out in this section.
City means the City of Memphis, Tennessee.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Compensation means the remuneration received by a participant or his or her salary including shift premium pay, hazardous premium pay, holiday pay, longevity pay and incentive pay, but excluding overtime pay. Compensation shall also include the participant's contributions to the retirement system as provided under section 4-32-26. For plan years beginning on or after January 1, 1993, the restrictions of section 401(a)(17) of the code shall apply to the compensation of any participant taken into account for purposes of the plan.
Contributions means the contributions of participants as provided in section 4-32-26.
County service means regular, full-time service rendered as an employee of Shelby County for compensation.
County transfer service means for any involuntary transfer county employee, credited service to the date of transfer from the county, determined in accordance with the terms of chapters 4-4 through 4-32, as applicable to such participant and as such plan as constituted immediately prior to the date of transfer; provided, however, that, in computing such service, no credit shall be given for periods of time for which the participant has received a refund of contributions, or for other periods of time not counted as credited service in accordance with the terms of chapters 4-4 through 4-32.
Credited service means:
1. As to any participant who is under the '75 plan provisions, the total of the number of years of "current service" plus the number of years of "prior service" where:
a. "Current service" means library service rendered after October 21, 1926, as well as the board of education service rendered after May 15, 1937, of a transferred employee whose accumulated contributions to the board of education retirement fund are transferred to this retirement fund and who becomes an employee on or before December 31, 1992; and
b. "Prior service" means prior service credit which is granted pursuant to section 4-32-4 or which is restored pursuant to section 4-32-21; provided that no duplication of service credits shall occur by operation of the various provisions of this section.
2. As to any participant who is under the '79 plan provisions the total number of years, with allowance for completed months of service, as a member of the retirement system, including prior service credit which is granted pursuant to section 4-32-4 or which is restored pursuant to section 4-32-21.
Notwithstanding the preceding subsections (1) and (2) credited service for permanent part-time employees will be computed from the beginning of the 12-month period in which at least 1,000 hours of service were performed for compensation. No credited service will accrue for any month in which less than 80 hours of service are performed for compensation.
Defined benefit plan means a plan established and qualified under section 401 or 403 of the code, except to the extent it is, or is treated as, a defined contribution plan.
Defined contribution plan means a plan established and qualified under section 401 or 403 of the code, which provides for an individual account for each participant therein and for benefits based solely on the amount contributed to each participant's account and any income, expenses, gains or losses (both realized and unrealized) which may be allocated to such account.
Early retirement date means the first day of any month coinciding with or next following the date after he or she becomes eligible for early retirement under section 4-32-6 on which he or she actually retires, and which is prior to his or her normal retirement date.
Educational institution means all public schools, colleges and universities. A nonaccredited school, college or university shall be included if its credits are acceptable to an institution that is accredited. Certification of full-time attendance by a school officer provides the basis for payment of benefits to eligible students. The retirement benefit for a full-time student shall be the same as that for a child under age 18.
Effective date means the effective date of the retirement system, as restated in this document, which shall generally be January 1, 1992, except as may otherwise be provided to the contrary.
Employee means persons employed by the employer on a full-time basis, and permanent part-time employees hired prior to July 1, 1992, but shall exclude any person considered a leased employee within the definition of section 414(n) of the code and any permanent part-time employee hired or rehired after June 30, 1992.
Employer means the Memphis and Shelby County Public Library and Information Center.
Full-time student means a child as defined in this section, except an unmarried child 18 years of age or over, but less than 22 years of age, provided such child is not employed on a full-time basis and is in full-time attendance as a student at an educational institution. A student is considered full-time if enrolled in a noncorrespondence course and is carrying a subject load that is considered full-time for day students under the institution's standards and practices. In case of high schools and vocational schools (including technical, trade, business and similar schools), a student is considered to be in full-time attendance if:
1. He or she is enrolled for at least 20 hours' work per week;
2. He or she is in a course of study which requires at least 13 school weeks; and
3. The school considers him or her a full-time student under its standards and practices.
Handicapped child means a child as defined herein except that if such child is unmarried and is severely disabled upon attaining age 18 and continues to be so disabled, such child shall be eligible for one-half the pension payable to a child under age 18, if not in the custodial care of a governmental institution. A child is severely disabled if unable to engage in any substantial, gainful activity by reason of any medically determinable physical or mental impairment resulting from anatomical, physiological or psychological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques. Satisfactory proof of disability shall be provided to the board of administration not less frequently than once each year after qualifying under this definition, or more frequently if deemed necessary by the board of administration. Failure to provide adequate proof of disability shall result in the immediate cancellation of any benefit hereunder.
Involuntary transfer city employee means an individual who became an employee of the library as a direct result of one or any combination of the following events:
1. The legal consolidation of any agency, board, commission or other entity, regardless of its name, which was being administered by the city in whole or in part prior to such administration being assumed by the library;
2. The cessation of operation or function by any agency, board, commission, or other entity, regardless of its name, which was being administered by the city in whole or in part prior to such cessation;
3. The election or legal appointment of an employee to a position with the library including an employee who had previously terminated employment with the city but who is entitled to a benefit under the terms of chapters 4-4 through 4-28;
4. The employment of an employee by the library for the convenience of the library.
Involuntary transfer county employee means an individual who was last a participant in the county retirement system prior to becoming an employee of the library and has become an employee as a direct result of one, or any combination of, the following events:
1. The legal consolidation of any agency, board, commission or other entity, regardless of its name, which was being administered by the county in whole or in part prior to such administration being assumed by the library;
2. The cessation of operation or function by any agency, board, commission, or other entity, regardless of its name, which was being administered by the county in whole or in part prior to such cessation;
3. The election or legal appointment of an employee to a position with the library, including an employee who has previously terminated employment with the county but who is entitled to a vested benefit from the county retirement system; or
4. The employment of a county employee by the library for the convenience of the library.
Involuntary transfer employee means an involuntary transfer city employee or an involuntary transfer county employee, as applicable.
Library service means regular, full-time or permanent part-time services, rendered as an employee of the library for compensation.
Library transfer employee means an individual who was a participant in the plan prior to becoming an employee of the city or county as a direct result of one, or any combination of, the following events:
1. The legal consolidation of any agency or entity being administered by the library in whole or part prior to such administration being assumed by the city or county;
2. The cessation of operation or function by any agency or entity being administered by the library in whole or part prior to such cessation;
3. The legal election or appointment of an employee to a position with the city or county, including an employee who has previously terminated employment with the library but who is entitled to a benefit from this plan; or
4. The employment of a library employee by the city or county for the convenience of same.
Limitation year means each 12-month period commencing on January 1 and ending on December 31.
Normal retirement date means:
1. As to any participant who is under the '75 plan provisions, the date he or she shall have completed ten years of credited service and attained the age of 60 years; or shall have completed 25 years of credited service and attained the age of 55 years; or shall have completed 30 years of credited service irrespective of age.
2. As to any participant who is under the '79 plan provisions, the date he or she shall have completed five consecutive years of credited service immediately before retirement and attained the age of 65 years, or shall have completed 25 years of credited service and attained the age of 62 years, or shall have completed 30 years of credited service and attained the age of 60 years.
Participant means any employee who becomes a participant in the plan as provided in article 2 of this chapter.
Permanent part-time employee means an employee of the rank and pay scale of library clerk II or higher who is employed on a part-time but regular and continuous basis for no fewer than 1,000 hours per year and with respect to whom employer contributions are not made under federal Social Security contribution laws. No other part-time employee shall be included within this definition and therefore no such other part-time employee shall be eligible to participate in the plan.
Plan year means each 12-month period commencing on January 1 and ending on December 31.
Qualified joint and survivor annuity means a monthly benefit payable for the life of the participant with a monthly benefit continuing for the life of his or her spouse equal to: (a) in the case of the '75 plan, (1) in the case of a participant whose annuity starting date occurs after 1992, 75 percent of the amount of the monthly benefit payable during the joint lives of the participant and the spouse, or (2) in the case of a participant whose annuity starting date occurs before 1993, 100 percent of the amount of the monthly benefit payable during the joint lives of the participant and the spouse; and (b) in the case of the '79 plan, 75 percent of the amount of the monthly benefit payable during the joint lives of the participant and the spouse, and in either case which is the normal form of payment under the plan for participants who are married as of their annuity starting date.
Regular interest means the interest paid on the participant's contributions as set by the board of administration.
Retirement fund or fund means the assets consisting of cash and such other property as shall be paid or delivered to the trustee, including earnings thereon, pursuant to article 6 of this chapter.
Retirement system means the Memphis and Shelby County Public Library and Information Center Retirement System as described herein and as amended from time to time.
Seventy-five plan or '75 plan means the retirement system created and established effective April 1, 1975.
Seventy-nine plan or '79 plan means the retirement system created and established effective April 1, 1979.
Spouse means a lawful spouse of a participant or former participant who has had the status of lawful spouse for an unbroken period of at least two years immediately preceding the death of such participant or former participant.
TEFRA means Public Law 97-248, more commonly known as the Tax Equity and Fiscal Responsibility Act of 1982.
Transfer service means the credited service for benefit accrual purposes, as determined in accordance with the retirement system of the city or county, or in accordance with the terms of this plan, as applicable and as required by the context.
Trustee means the board, which is designated as such in article 6 of this chapter.
Vesting service means credited service.
Vested terminated means a participant of the retirement system who has terminated his or her employment with the library, who is not employed by the city or county, and who has elected to leave his or her accumulated contributions in the library retirement fund for vested credit.
(Code 1985, § 18-41; Ord. No. 4173, § 1, 4-16-1993)