Memphis Code of Ordinances § 4-4-1 References, construction and definitions.
Sec. 4-4-1. - References, construction and definitions.
A. Unless otherwise indicated, all references made in this title are to chapters, sections and subsections of this title. The provisions of this title shall be construed in accordance with the city Charter, and laws of the State of Tennessee to the extent that such laws are not preempted by federal laws. In the construction of this title, the headings and subheadings are to be ignored, the masculine shall include the feminine, the feminine the masculine, the singular the plural and the plural the singular wherever appropriate. The following terms (in alphabetical order), unless a different meaning is plainly required by context, shall have the meanings set forth opposite such terms for purposes of this title:
1. Accrued benefit means:
a. i.
As of any date, for each participant hired prior to July 1, 2012, a monthly benefit amount payable semi-monthly in the form of a single life annuity, equal to two and one-fourth percent of his or her average monthly compensation multiplied by the number of years of service completed before January 1, 1990, plus two and one-half percent of his or her average monthly compensation multiplied by the number of years of service completed after January 1, 1990; provided, however, that when a participant's years of service equals 25 years, such participant shall accrue an additional one percent of his or her average monthly compensation for each year of service in excess of 25 years for a maximum of ten years; provided, however, if after 35 years of service the total percentage of his or her average monthly compensation is less than 72.5 percent, such participant shall accrue an additional one percent of his or her average monthly compensation for each year of service in excess of 35 years earned after January 1, 1990, until such total percentage shall equal 72.5 percent; or
ii. As of any date, for each participant that is hired on or after July 1, 2012, a monthly benefit amount payable semi-monthly in the form of a single life annuity, equal to two and one-fourth percent of his or her average monthly compensation multiplied by the number of years of service completed after July 1, 2012; provided, however, that when such participant's years of service equals 25 years, such participant shall accrue an additional one percent of his or her average monthly compensation for each year of service in excess of 25 years for a maximum of ten years; provided, however, if after 35 years of service the total percentage of his or her average monthly compensation is less than 72.5 percent, such participant shall accrue an additional one percent of his or her average monthly compensation for each year of service in excess of 35 years earned;
b. For each participant, not a police officer or firefighter (for whom the multiplier is one percent regardless of service), who retires or terminates his or her employment on or after January 1, 1990, and who elects in writing to receive a lump sum payment, an amount equal to the total amount of his or her contributions as of the date of his or her retirement or termination multiplied by the return multiple determined under the following table:
Years of Service | Return Multiple
Less than 5 | 1.0
5 | 1.5
6 | 1.7
7 | 1.9
8 | 2.1
9 | 2.3
10 | 2.5
11 | 2.6
12 | 2.7
13 | 2.8
14 | 2.9
15 | 3.0
16 | *
17 | *
18 | *
19 | *
20 or more | *
*The multiple for years 16 through 20 will be set prior to third reading after a review of actuarial information from the administration.
Provided, however, that if the participant is eligible for a monthly benefit under chapters 4-24 and 4-28 of this title, such election shall be obtained with the written consent of the participant's spouse and approved by the board; and
c. Provided, further, that the accrued benefit of any participant shall not be less than his or her minimum accrued benefit, and for any participant who is an involuntary transfer county employee, shall be determined in accordance with section 4-24-3.C.2 or 4-28-3.C.2, as applicable.
As of any date, the accrued benefit payable semi-monthly in the form of a single life annuity shall be calculated without regard to any decrease in average monthly compensation resulting from a general salary reduction implemented by the administration or approved by the council within any budget ordinance effective after June 30, 2010. If the product of the average monthly compensation and the percent multiplier based on years of service is as of any date less than an amount calculated as of an earlier date (based on average monthly compensation, the percent multiplier and years of service as of that earlier date), the accrued benefit will be no less than the amount calculated as of that earlier date.
2. Actuarial equivalent means equality in value of the aggregate amounts expected to be received under different forms of payment based upon interest at six percent per annum compounded annually and the 1971 Group Annuity Mortality Table.
3. Annuity commencement date means the first day of the first period with respect to which an amount is received as a benefit pursuant to this title.
4. Average monthly compensation means:
a. 1948 plan:
i. For each participant, the average monthly compensation, (excluding and disregarding any hiatus in the participant's employment by the city) for his or her five consecutive years of service for which such compensation was the highest. If his or her average monthly compensation for the 12 months next preceding the date of his or her retirement exceeds the average of his or her highest five consecutive years' compensation, then his or her average monthly 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 by a participant in the performance of duties before he or she has five consecutive years of service, his or her average monthly compensation shall be the average monthly rate of compensation during all his or her years of service.
ii. While in the armed services and receiving years of service credit as provided under subsection (44)(g) of this section, a participant's compensation for purposes of this subsection shall be deemed to be his or her rate of base compensation as a city employee in effect at the time he or she entered the armed services.
iii. For any police officer or firefighter credited with 30 or more years of service, and eligible for automatic promotion to captain or comparable rank in the police or fire divisions of the city under Charter section 67, his or her average monthly compensation shall be the current monthly base compensation of a captain or comparable rank in the police or fire divisions of the city as of the date of his or her retirement, plus any shift premium pay, hazardous premium pay, holiday pay, longevity pay and incentive pay, excluding overtime pay, earned during the immediately preceding 12 months.
b. 1978 plan:
i. For each participant hired prior to July 1, 2012, the average monthly compensation, (excluding and disregarding any hiatus in the participant's employment by the city) for his or her five consecutive years of service for which such compensation was the highest. If his or her average monthly compensation for the 12 months next preceding the date of his or her retirement exceeds the average of his or her highest five consecutive years' compensation, then his or her average monthly 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 by a participant in the performance of duties before he or she has five consecutive years of service, his or her average monthly compensation shall be the average monthly rate of compensation during all his or her years of service.
ii. For each participant that is hired on or after July 1, 2012, the average monthly compensation, (excluding and disregarding any hiatus in the participant's employment by the city) for his or her three consecutive years of service for which such compensation was the highest. In addition, in the case of death or disability incurred by a participant in the performance of duties before he or she has five consecutive years of service, his or her average monthly compensation shall be the average monthly rate of compensation during all his or her years of service.
iii. For any police officer or firefighter hired before February 1, 1978, credited with 30 or more years of service, and eligible for automatic promotion to captain or comparable rank in the police or fire divisions of the city under Charter section 67, his or her average monthly compensation shall be the average monthly base compensation of a captain or comparable rank in the police or fire divisions of the city for the immediately preceding three years to be calculated as follows: the current monthly compensation of a captain or comparable rank as of the date of his or her retirement, plus the monthly compensation of a captain or comparable rank as of the date one year prior to the date of his or her retirement, plus the monthly compensation of a captain or comparable rank as of the date two years prior to the date of his or her retirement, plus any shift premium pay, hazardous pay, longevity pay, and incentive pay, excluding overtime pay or any double time compensation for holidays, earned during the immediately preceding three years, the sum of which is divided by three.
5. Board means the board of administration appointed by the council, upon recommendation of the mayor, in accordance with section 4-8-1 to administer the provisions of this title.
6. Child.
a. The term "child," as of any date, means the legitimate, legally adopted, or legally recognized son or daughter of a participant who:
i. Has not reached age 18 and has a legal guardian;
ii. Is disabled as defined in subsection b of this definition; or
iii. For purposes of insurance coverage and annuity, satisfies each of the following conditions:
(A) Has reached age 18, but not age 25.
(B) Is unmarried.
(C) Is not employed on a full-time basis.
(D) Is in full-time attendance as a student at an educational institution.
A student is considered full time if enrolled in a non-correspondence course and 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 the school considers him or her a full-time student under its standards and practices.
Certification by the educational institution of full-time attendance is required to satisfy the definition under this subsection 6.a.iii. For purposes of this definition, the term "educational institution" means all public schools, colleges and universities, all accredited private schools, colleges and universities, and any non-accredited school, college or university if its credits are acceptable in an institution that is state approved and/or accredited by one of the six regional accrediting organizations recognized by the U.S. Department of Education.
b. The term "disabled child" means any child who has reached age 18, is unmarried and is severely disabled, but who is not in the custodial care of a governmental institution. A child shall be considered severely disabled if he or she is unable to engage in any substantial, gainful activity by reason of any medically determinable physical or mental impairment where such impairment results from anatomical, physiological or psychological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques presented in an acceptable and satisfactory manner to the board, both for initial determination and ongoing confirmation of status as a disabled child.
7. City means the City of Memphis, Tennessee.
8. City contributions means the contributions to the plan made by the city pursuant to section 4-24-7 or 4-28-7.
9. City transfer service, for each involuntary transfer city employee, means creditable years of service to the date of transfer from the city, determined in accordance with the terms of this title, immediately prior to the date of transfer; provided, however, that, in computing such service, no credit shall be given for period of time for which the participant has received a refund of employee contributions under section 4-24-14 or 4-28-14, or for other periods of time not counted as years of service under the terms of this title.
10. Code means the Internal Revenue Code of 1986, as amended.
11. Compensation.
a. 1948 Plan. For each participant, for each plan year, "compensation" means the amount of pay, not in excess of $200,000.00 (as such amount may be adjusted for inflation from time to time by the Secretary of the Treasury under code sections 401(a)(17) and 415(d) received by him or her for services rendered to the city, including shift premium pay, hazardous premium pay, holiday pay, longevity pay and incentive pay, but shall not include overtime pay.
b. 1978 Plan. For each participant, for each plan year, "compensation" means the amount of pay, not in excess of $200,000.00 (as such amount may be adjusted for inflation from time to time by the Secretary of the Treasury under code sections 401(a)(17) and 415(d)), received by him or her for services rendered to the city, including shift premium pay, hazardous pay, longevity pay and incentive pay, but excluding overtime pay or any double-time compensation for holidays.
c. 2016 Plan: For each participant, for each plan year, the amount of pay, not in excess of $200,000.00.00 (as such amount may be adjusted for inflation from time to time by the Secretary of the Treasury under code sections 401(a)(17) and 415(d)), received by such participant for services rendered to the city, including shift premium pay, hazardous pay, longevity pay and incentive pay, but excluding overtime pay or any double-time compensation for holidays.
d. For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined by code section 3401(h)(2), from the city shall be treated as an employee of the city, (ii) the differential wage payment shall be treated as compensation, and (iii) the pension system shall not be treated as failing to meet the requirements of any provision described in code section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment.
(e) Back pay. For purposes of determining average monthly compensation under section 4-4-1(1), and section 4-4-1(4) pay awarded by an administrative agency or court or pursuant to a bona fide agreement by the city to compensate a participant for lost wages shall be credited as pay to each individual year to which the award or agreement for back pay pertains, rather than to the year in which the award, agreement or payment is made.
(f). Overtime pay. For purposes of determining average monthly compensation under section 4-4-1(1) and section 4-4-1(4) "overtime pay" constitutes pay in excess of 40 hours a week regardless of the rate for which such hours are paid.
12. Comptroller means the comptroller of the city.
13. Council means the duly elected city council of the city.
14. County means Shelby County, Tennessee.
15. County transfer service, for any involuntary transfer county employee, means credited service to the date of transfer from the county, determined in accordance with the terms of this title as applicable to such participant and as such plan was 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 this title.
16. Early retirement eligibility date means the date upon which a 1978 plan participant has:
a. Completed 25 or more years of service; and
b. Attained either age 55 or, if he or she is a police officer or firefighter hired on or after July 1, 1978, age 50.
17. Employee means, except for any such employee who is eligible to make and has duly made the election provided in sections 4-28-1(E) and 4-28-1(F) hereof, any person hired on or before June 30, 2016, but who as of June 30, 2016 has seven and one-half or more years of service with the city and who was on June 30, 2016 a participant in the city of Memphis Retirement System for General Employees, including police officers and firefighters, under City Ordinance Chapter 25, Articles I through VII, in the regular, full-time employ of the city to the extent that the city contributes to the salary of such employee in a job classification or title that the city administration shall designate as eligible for participation in the plan, including any person who is elected to his/her office by the people, but not including the light, gas and water division of the city, temporary employees as classified by the city, part-time employees, or any employee mandated by law to contribute to the federal Social Security system and not eligible to be a participant by his/her job classification.
The term "employee" shall also not include any person who is a leased employee within the meaning of Code Section 414(n). Leased employee means any person (other than an employee of the recipient) who pursuant to an agreement between the recipient and any other person ("leasing organization") has performed services for the recipient (or for the recipient and related persons determined in accordance with Code Section 414(n)(6)) on a substantially full-time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient. Contributions or benefits provided to a leased employee by the leasing organization which are attributable to services performed for the recipient employer shall be treated as provided by the recipient employer. A leased employee shall not be considered an employee (unless otherwise specifically covered by the pension system) of the recipient if: (i) such employee is covered by a money purchase pension plan providing: (1) a nonintegrated employer contribution rate of at least ten percent of compensation, as defined in Code Section 415(c)(3), but including amounts contributed pursuant to a salary reduction agreement which are excludible from the employee's gross income under Code Section 125, Code Section 1320, Code Section 401(k), Code Section 402(h) or Code Section 403(b), (2) immediate participation, and (3) full and immediate vesting; and (ii) leased employees do not constitute more than 20 percent of the recipient's non-highly compensated workforce.
18. Employee contributions means the mandatory contributions, which shall be designated pursuant to code section 414(h) as contributions made by the city, made to the trust fund by each participant through payroll deduction pursuant to section 4-24-6 or 4-28-6, standing to the credit of his or her individual account.
19. Employment creditable service date means the date on which an employee is deemed to have first performed an hour of service as an employee, subject to adjustment to properly reflect the aggregate of all prior periods of service in accordance with subsection 44 of this section.
20. ERISA means the Employee Retirement Income Security Act of 1974, as amended.
21. Firefighter means an employee of the fire services division of the city, who has been commissioned by the director of such division.
22. Handicapped child. See Child.
23. Hour of service means each hour for which an employee is paid, or entitled to payment, for the performance of duties for the city. Hours of service credit shall be awarded subject to all the rules set forth in paragraphs (b) and (c) of the United States Department of Labor Regulations section 2530-20b-2, which are incorporated herein by this reference.
24. Involuntary transfer city employee means an individual who was last a participant in this plan prior to becoming an employee of the county and who became an employee of the county as a direct result of one or any combination of the following events:
a. 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 county;
b. 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;
c. The election or legal appointment of an employee to a position with the county including an employee who had previously terminated employment with the city but who is entitled to a benefit under the terms of this title; or
d. The employment of an employee by the county for the convenience of the county government.
25. Involuntary transfer county employee means an individual who was last a participant in Plan A of the county retirement system prior to becoming an employee of the city, and who has become an employee as a direct result of one, or any combination, of the following events:
a. 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 city;
b. 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;
c. The election or legal appointment of an employee to a position with the city, 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
d. The employment of a county employee by the city for the convenience of the city government.
26. Leave of absence means any layoff imposed or approved leave of absence granted to an employee by the city in accordance with the city's personnel policy, whether for illness, military service, or any other reason.
27. Line-of-duty disability means a physical or mental condition arising as the direct and proximate result of an accident sustained by a participant, after he or she became a participant and while in the actual performance of duties for the city at some definite time and place without willful negligence on his or her part which totally and permanently prevents him or her from engaging in the duties for which he or she was employed by the city. The determination of the line-of-duty disability of a participant shall be made on medical evidence by at least two qualified physicians, one of whom may be the physician who makes disability determinations as to such participant for purposes of worker's compensation claims.
28. Minimum accrued benefit, as of any date, except for benefits paid under section 4-24-12(B), 4-24-13, 4-24-17, 4-28-12(B), 4-28-13 or 4-28-17, for each participant, means a monthly benefit amount, payable semi-monthly in the form of a single life annuity, equal to:
a. For benefits paid to any participant under sections 4-24-12(A), 4-24-16, 4-28-12(A) and 4-28-16, or otherwise to a participant retiring with 25 or more years of service, the sum of $525.00 plus the product of $21.00 multiplied by the lesser of ten and the number of his or her years of service in excess of 25;
b. For benefits paid to a participant retiring on or after reaching age 65 with 15 or more years of service, the sum of $500.00 plus the product of $1.00 multiplied by the lesser of 25 and the number of his or her years of service; and
c. For benefits paid to participants retiring with less than 25 years of service and before reaching age 65, the greater of $262.50 and the product of $21.00 multiplied by the number of his or her years of service.
29. Normal retirement age means the later of the date the 1978 plan participant attains age 65, or the date he or she completes five years as a participant. A participant shall be 100 percent vested in his or her accrued benefit upon attaining his or her normal retirement age while an active employee. This section does not apply to police officers or firefighters.
30. Normal retirement date.
a. 1948 Plan. "Normal retirement date" means:
i. General employees: the first day of the month coincident with or next following the earlier date on which a 1948 plan participant, other than a police officer or firefighter:
(A) Completes 25 years of service; or
(B) Attains age 60 and completes ten years of service.
ii. Police officers and firefighters: the first day of the month coincident with or next following the date on which a 1948 plan participant who is either a police officer or firefighter:
(A) Completes 25 years of service; or
(B) Attains age 55 and completes ten years of service.
b. 1978 Plan. "Normal retirement date" for each participant hired prior to July 1, 2012 means:
i. General employees: the first day of the month coincident with or next following the earliest date on which a 1978 plan participant, other than a police officer or firefighter:
(A) Attains age 60 and completes ten years of service; or
(B) Attains age 65 and completes five years of service; or
(C) Attains 25 years of service.
ii. Police officers and firefighters: the first day of the month coincident with or next following the earlier date on which a 1978 plan participant who is either a police officer or firefighter:
(A) Completes 25 years of service; or
(B) Attains age 55 and completes ten years of service.
iii. Notwithstanding the foregoing, this subsection (b) shall not apply to elected or appointed employees governed by section 4-28-11.
c. 1978 Plan. "Normal retirement date" for participants hired on or after July 1, 2012, means:
i. General employees: the first day of the month coincident with or next following earliest date on which the participant, other than a commissioned police officer or firefighter:
Attains:
(A) Age 65 and completes five years of service; or
(B) Twenty-five years of service and submits a written election designating the date he or she will retire not less than 30 days before such designated date. Said participant shall be entitled to receive a retirement benefit equal to his or her accrued benefit reduced by five percent per year for each year that his or her early retirement date precedes the date the participant will attain age 62.
ii. Police officers and firefighters: the first day of the month coincident with or next following earliest date on which the participant:
Attains:
(A) Age 55 and ten years of service; or
(B) Twenty-five years of service and submits a written election designating the date he or she will retire not less than 30 days before such designated date. Said participant shall be entitled to receive a retirement benefit equal to his or her accrued benefit reduced by five percent per year for each year that his or her early retirement date precedes the date the participant will attain age 52.
iii. Notwithstanding the foregoing, this provision shall not apply to elected or appointed employees governed by section 4-28-11.
d. 2016 Plan. "Normal retirement date" for participants of the 2016 Cash Balance Plan/Defined Contribution Plan means:
i. General employees: the first day of the month coincident with or next following earliest date on which the participant, other than a police officer or firefighter:
Attains:
(A) Age 65 and completes five years of service; or
(B) Twenty-five (25) years of service and submits a written election designating the date he or she will retire not less than 30 days before such designated date.
ii. Police officers and firefighters: the first day of the month coincident with or next following earliest date on which the participant:
Attains:
(A) Age 55 and ten years of service; or
(B) Twenty-five (25) years of service and submits a written election designating the date he or she will retire not less than 30 days before such designated date.
31. Ordinary disability means a physical or mental condition, other than a line-of-duty disability, arising after the participant commences employment with the city and is credited with five or more years of service which totally prevents him or her from engaging in the duties from which he or she was employed by the city; provided, however, no such disability shall be a result of the participant's chronic alcoholism, self-addiction to narcotics, participation in a felonious or otherwise criminal act or enterprise, or, except for anyone hired before September 15, 1976, service in the armed forces of the United States which entitles the participant to a federal veteran's disability pension. The determination of the ordinary disability of a participant shall be made on medical evidence by at least two qualified physicians, one of whom may be the physician who makes disability determinations as to such participant for purposes of worker's compensation claims.
32. Participant means an employee who has met the eligibility requirements for participation in the 1948 or 1978 plan as set forth in chapters 4-24 and 4-28.
33. Part-time employee means any individual employed by the city in a position requiring less than a 40-hour average workweek, and consuming less than 50 percent of the available work hours in a 12-month period; provided, however, such a position also includes any employment requiring more than 40 hours per week, if the result of one-week, two-week, three-week or four-week durations of a seasonal nature.
34. Plan means the City of Memphis Retirement System for General Employees, including police officers and firefighters, under this title, as amended from time to time, incorporating the following:
a. 1948 plan: that part of the plan benefiting employees participating under the provisions of sections 4-24-1 through 4-24-20; and
b. 1978 plan: that part of the plan benefiting employees participating under the provisions of sections 4-28-1 through 4-28-21.
35. Plan year means any 12 consecutive month period beginning each July 1, and ending on the following June 30.
36. Police officer means an employee of the police services division of the City of Memphis/Shelby County Airport Authority commissioned by the State of Tennessee as a law enforcement officer, whose primary responsibility is the prevention and detection of crime.
37. Qualified physician, for purposes of administering this title, means a physician: (i) who is duly licensed to practice medicine by the State of Tennessee, the State of Mississippi, or the State of Arkansas, (ii) who conducts an active practice of medicine within any of the following areas: the State of Tennessee; the Memphis-Forrest City, TN-MS-AR CSA (2012 Combined Statistical Area); the Jackson-Vicksburg-Brookhaven, Mississippi CSA (2012 Combined Statistical Area); or the Little Rock-North Little Rock, Arkansas CSA (2012 Combined Statistical Area), and (iii) who is designated and reasonably compensated in the sole discretion of the board to make a medical determination of line-of-duty or ordinary disability or other physical or mental condition; provided, such physician shall not be an interested party to the outcome of such determination, shall not be a participant, and shall not have served the city or county in any elected, appointed or salaried position within five years of the date he or she is asked to make any such medical determination.
38. Reemployment commencement date means the date on which any participant first performs an hour of service for the city after a severance date.
39. Severance date means, for each participant, the earlier to occur of:
a. The date he or she terminates his or her employment as an employee because of quitting, being fired, death or retirement; or
b. The earlier of the date two years from the beginning of a leave of absence period or the date at the end of such period, as of which he or she fails to return to active employment as an employee.
40. Single life annuity means an annual income payable semi-monthly beginning with his or her annuity commencement date and ending with the date of the last semi-monthly payment immediately preceding the participant's date of death.
41. Spouse means a lawful spouse of a participant, active or retired, as determined by a legally recognized certificate of marriage. Common-law marriage shall not be recognized as valid regardless of the fact that such marriage may be considered lawful in a state or jurisdiction where the couple lives or formerly lived.
42. Total contributions means the sum total of all city contributions and employee contributions made to the trust fund under the terms of this title by or on behalf of a participant.
43. Transferred participant means each participant who is actively employed as of June 30, 2016 but who as of June 30, 2016 has less than seven and one-half years of service with the city and who was on June 30, 2016 a participant in the City of Memphis Retirement System for General Employees, including police officers and firefighters, under title 4 of this Code.
44. Trust fund means the fund established under chapter 4-12, to hold and invest contributions made under this plan and from which plan benefits will be distributed.
45. Year of service means each year for which a participant is given credit in calculating benefits payable from the plan pursuant to chapters 4-24 and 4-28.
a. General rule. A participant shall be credited with one year of service for each 12-month period during the aggregate of all time periods beginning on his or her employment creditable service date or reemployment commencement date and ending on his or her next following severance date; except that no credit shall be given for any period while an employee is on a leave of absence, in excess of 30 days and no credit shall be given to any part-time employee for any period after he or she has received two years of benefits under this title or while he or she is receiving benefits under the Federal Social Security System or any other retirement benefit source. Fractional periods of a year shall be expressed in terms of months and days.
b. Past service upon reemployment. Subject to subsection (44)(c) of this section, if a participant terminates employment with the city and is reemployed by the city, but has not received any withdrawal, refund or other distribution of benefits under the terms of this title before his or her reemployment commencement date, he or she shall re-enter this plan immediately as of such date and receive full credit for all years of service to his or her credit before his or her immediately preceding severance date.
c. Service attributable to lump sum. If a participant who is a transferred participant terminated employment at any time prior to July 1, 2016 and received a lump sum withdrawal or refund of employee contributions pursuant to section 4-24-15 or 4-28-15, such transferred participant's years of service prior to such termination shall be disregarded; provided if such transferred participant is subsequently reemployed by the city on or prior to June 30, 2016, he may repay into the trust fund within no later than the ninetieth day following the effective date of his reemployment a single lump sum amount equal to the withdrawal or refunded amount with compounded interest from the date of withdrawal or refund to the date of repayment, at the rate established by the board, whereupon such disregarded years of service shall be restored and notwithstanding anything in section 4-4-1(43) or 4-28-1(A) to the contrary such participant shall no longer be a transferred participant but shall be restored as a participant in the City of Memphis Retirement System for General Employees, including police officers and firefighters, under title 4.
d. Service attributable to lump sum under 1948 Plan. If a participant terminates employment and receives a distribution of his or her contributions under the 1948 plan, is subsequently reemployed by the city and is not excluded from participation in the 1978 plan under section 4-28-1, such participant's years of service under the 1948 plan prior to such termination shall be credited to such participant as years of service under the 1978 plan, if such terminated participant pays into the trust fund a single lump sum amount equal to the distributed amount received under the 1948 plan, with compounded interest, from the date of distribution to the date of repayment, at the rate established by the board.
e. Annexation service. Any person in the employ of a utility district or municipal corporation in the county which includes within its territorial boundaries any area annexed to the city on or after July 1, 1978, and who becomes an employee as a result of such annexation, shall be credited with years of service for his or her period of employment with such other utility district or municipal corporation beginning on or after July 1, 1978, and ending with the date of annexation; provided, that within two years of his or her employment creditable service date, the participant pays an amount equal to his or her total contributions payable for such participant for such service period, with compounded interest at the rate established by the board, into the trust fund. Otherwise, his or her years of service shall be credited from his or her employment creditable service date under subsection (44)(a) of this section.
f. Past service for transferred participants. Participants transferred into this plan in accordance with the provisions of section 4-24-3 or 4-28-3 shall be credited with years of service as provided in this subdivision.
i. Memphis light, gas and water division.
(A) Immediate transfer of assets. A participant who was transferred from the Memphis light, gas and water division retirement system under section 4-24-3 or 4-28-3, shall be credited with years of service for his or her creditable service under such other system upon the transfer by and from the Memphis light, gas and water division retirement system to the trust fund an amount equal to the total employee contributions made by or on behalf of such transferred participant then in the hands of the transferror retirement system; provided, however, if the transferred participant was eligible for a normal retirement under the Memphis light, gas and water division retirement system on the date of his or her transfer, there shall be no transfer of his or her total contributions and no transfer of creditable service, and upon his or her actual retirement, he or she shall receive the normal retirement benefit to which he or she would have been entitled under the transferror retirement system had he or she retired on his or her date of transfer, and this plan shall pay the balance of any retirement benefits to which the participant is entitled under the terms of this title, on his or her actual retirement date without any credit for past service.
(B) Deferred transfer of assets. Any participant with two or more years of service from his or her employment creditable service date, who was a former member of the Memphis light, gas and water division retirement system, but failed to have his or her total contributions under such system transferred to this plan under subsection (44)(f)(i)(A) of this section, when he or she first became a participant, shall receive full years of service credit for all creditable service he or she had as a member of the Memphis light, gas and water division retirement system at the time of termination of his or her membership, if, after the board's approval of his or her written application for such credit, he or she pays into the trust fund a single lump sum amount equal to the sum of the total employee contributions made by him or her or on his or her behalf under the Memphis light, gas and water division retirement system, with compounded interest, from his or her employment creditable service date to the date of payment, at the interest rate established by the board. Payment of such lump sum shall constitute full compliance with the provisions of this title.
(C) Tennessee Valley Authority transfers. For purposes of the 1948 plan, a participant who was transferred to the city from the Tennessee Valley Authority and who was formerly a participant of the Memphis light, gas and water division retirement system shall be credited with his or her service under the Memphis light, gas and water division retirement system as provided in subsection (44)(f)(i)(a) and (b) of this section, if upon application to the board and within one year of the approval of such application, he or she transferred to the trust fund as provided in subsection (44)(f)(i)(a) and (b) of this section, the amount of his or her employee contributions transferred from the Memphis light, gas and water division retirement system to the Tennessee Valley Authority.
ii. Public library and information center. Any participant transferring from the Memphis and Shelby County Public Library and Information Center Retirement System under section 4-24-3 or 4-28-3, shall receive years of service credit for all service under such library system on and after April 1, 1975. If a participant pays a single lump sum amount equal to seven percent of all compensation received by him or her from the Memphis and Shelby County Public Library and Information Center before August 1, 1975, he or she also shall receive years of service credit for all service under such library system before April 1, 1975. If there is a lapse of time between his or her termination from the Memphis and Shelby County Public Library and Information Center and his or her employment creditable service date or if he or she should become an employee and participant at a later date and is credited with two years of service after his or her employment creditable service date, such participant shall receive full years of service credit for all creditable service he or she had as a member of such library retirement system at the time of termination of his or her membership, if, after the board's approval of his or her written application for such credit, he or she pays into the trust fund a single lump sum amount equal to the sum of the amounts due to the plan under section 4-24-3 or 4-28-3, and under this section for service before April 1, 1975, with compounded interest, from his or her employment creditable service date to the date of payment, at the interest rate established by the board. Otherwise, his or her years of service shall be credited from his or her employment creditable service date under subsection (44)(a) of this section. Payment of such lump sum shall constitute full compliance with the provisions of this plan. If such participant was eligible for normal retirement upon his or her termination from the Memphis and Shelby County Public Library and Information Center Retirement System, he or she shall not be eligible for and shall not receive any years of service credit under this subdivision (f)(ii).
iii. Involuntary transfer from the county. Each involuntary transfer county employee shall present to the board a certificate stating the amount of his or her county transfer service. The board shall have the authority to review and accept such county transfer service certificate and shall approve crediting of such county transfer service as years of service, provided such service has been calculated in accordance with plan A or plan B of the county retirement system, all conditions regarding the transfer of the participant as specified in this plan are fulfilled, and the person transferred reports for employment with the city on the date required by an authorized designee of the city. County transfer service shall be added to the participant's years of service for purposes of determining the participant's eligibility for a retirement allowance, and the amount of such retirement allowance, if any, in accordance with sections 4-24-10 through 4-24-13, 4-24-16, 4-24-17, 4-28-10 through 4-28-13, 4-28-16, 4-28-17, except for sections 4-24-12(A) and 4-28-12(A).
g. Military service. For purposes of the 1948 plan, any participant shall be given years of service credit for his or her military service or naval service in the Korean War, provided he or she was a full-time, permanent employee of the city at the time he or she left the employ of the city for the purpose of entering the armed forces of the United States and, further provided, that he or she resumed service as an employee within six months of his or her discharge from military service. Any participant of the 1948 plan who is inducted into the armed services of the United States shall receive credit for the time spent in such service for the purpose of computing his or her retirement so long as:
i. He or she left the employ of the city for the purpose of entering the armed forces of the United States;
ii. He or she satisfactorily completes his or her military service or naval service;
iii. The period of his or her military service or naval service does not exceed four years from the date of the induction or five years when the time in excess of four years is for the convenience of the armed forces; and
iv. He or she applies for reemployment with the city within 90 days of his or her discharge from the armed forces.
h. Uniformed service. To the extent required under the Uniformed Services Employment and reemployment Rights Act of 1994, as amended from time to time, and subject to the mandates and conditions under such Act for the granting of service, including without limitation the payment of employee contributions as required under this pension and retirement system, a participant who leaves the employment of the city to enter the uniformed services and returns to employment with the city shall be credited with years of service in respect of such uniformed services.
(Code 1985, § 25-1; Ord. No. 3907, § 1, 12-5-1989; Ord. No. 4068, § 1, 8-20-1991; Ord. No. 4244, § 1, 3-22-1994; Ord. No. 4363, §§ 2, 3, 10-1-1995; Ord. No. 4837, § 1, 1-22-2001; Ord. No. 5076, § 1(part), 2004; Ord. No. 5303, § 1, 5-19-2009; Ord. No. 5420, § 1, 10-18-2011; Ord. No. 5416, § 1, 12-6-2011; Ord. No. 5573, § I(1)—(4), 12-16-2014; Ord. No. 5611, § 1, 4-5-2016; Ord. No. 5763, §§ 1(25-1(11), (17), (27)), (31), (37), 12-15-2020; Ord. No. 5873, § 1—3, 7-11-2023)