(a) The retirement system shall provide an opportunity for each member who is a member prior to the implementation date of the City of Flint Defined Contribution Pension Plan, the date being established by resolution of the City Council and incorporated herein by reference, and who is not a member of a recognized bargaining unit, and not employed by the Board of Hospital Managers, to elect in writing: to terminate membership in this retirement system and elect to become a participant in the City of Flint Employees Defined Contribution Pension Plan. An election made by a member under this subsection is irrevocable. The retirement system shall accept written elections under this subsection from members during a window established by resolution of the City Council incorporated herein by reference. A member who does not make a written election or who does not file the election during the period specified above continues to be a member of this retirement system. A member who makes and files a written election, elects to do all of the following:
(1) Cease to be a member of this retirement system effective 12:00 midnight, in accordance with a date set forth by resolution of the City Council incorporated herein by reference;
(2) Become a participant in the City of Flint Employees Defined Contribution Pension Plan effective 12:01 a.m., in accordance with a date set forth by resolution of the City Council incorporated herein by reference;
(3) Waive all of his or her rights to a pension, an annuity, a retirement allowance or any other benefit under this retirement system effective 12:00 midnight, in accordance with a date set forth by resolution of the City Council incorporated herein by reference;
(4) Acknowledge and approves the transfer of his or her actuarial present value of his or her accrued retirement benefit as provided in subsection (c) below.
(b) An election under this section is subject to the Eligible Domestic Relations Order Act, Act 46 of the Public Acts of 1991, being MCLA §§ 38.1701 through 38.1711.
(c) Transfer of lump sum amount. For a member who elects to terminate membership in this retirement system under subsection (a) above, the retirement system shall direct the custodian of the funds of the retirement system to transfer a lump sum amount from the appropriate funds of the retirement system to the City of Flint Employees Defined Contribution Pension Plan in accordance with a date set forth by resolution of the City Council incorporated herein by reference.
(d) The retirement system shall calculate the amount to be transferred, which shall be equal to the sum of the following:
(1) The member’s accumulated contributions, if any, from the employees’ savings fund as of 12:00 midnight, in accordance with a date set forth by resolution of the City Council incorporated herein by reference; and
(2) The excess, if any, of the actuarial present value of the member’s accumulated benefit obligation, over the amount specified in subsection (d)(1), from the pension reserve fund. For the purposes of this section, the present value of the member’s accumulated benefit obligation is based upon the member’s credited service and final average compensation as of 12:00 midnight in accordance with a date set forth by resolution of the City Council incorporated herein by reference. The actuarial present value shall be computed as of 12:00 midnight of a date set forth by resolution of the City Council incorporated herein by reference in accordance with the following:
a. Seven and three-fourths effective annual interest, compounded annually;
b. A 50% male and 50% female unisex blend of the 83-gam mortality tables used to project retirant longevity in the most recent actuarial valuation report;
c. A benefit commencement age, based upon the member’s estimated credited service as of 12:00 midnight in accordance with a date set forth by resolution of the City Council incorporated herein by reference. The benefit commencement age shall be the member’s earliest retirement age at which the member could receive an unreduced retirement benefit (excluding a disability retirement) or the member’s current age, if greater;
d. Interest on any amounts determined in subsections (d)(1) and (d)(2), to the date of the transfer, based upon 7.75% annual interest, compounded annually.
(e) If the City of Flint or the retirement system receives notification from the Internal Revenue Service that this section or any portion of this section will cause the retirement system to be disqualified for tax purposes under the Internal Revenue Code, then the portion that would cause the disqualification will not apply.
(Ord. 3496, passed 6-10-2002; Ord. 3498, passed 7-22-2002; Ord. 3586, passed 6-24-2004; Ord. 3640, passed 4-15-2005)