All employees of Hurley Medical Center who qualify for membership in the City Employee Retirement System shall have their pensions determined in accordance with the modified contributory plan as set forth herein, provided that:
(a) Employees hired after the effective date of this section shall have an option, exercisable within 30 days, to elect to participate in the Hurley alternative pension plan.
(b) Employee members of the retirement system at the time this section becomes effective shall have until December 31, 1987 to exercise their option to participate in the Hurley alternative pension plan. Thereafter, the employees’ pension shall be determined exclusively under the modified contribution plan.
(c) Current eligible employees who are not members of a recognized bargaining unit shall have the option of retaining their existing pension plan or electing to participate in the modified contributory plan or the alternative pension plan. Employees hired after January 1, 1987 who are not members of a recognized bargaining unit must select the modified contributory plan or the alternate non-contributory plan.
(d) Current eligible exempt employees not represented by a collective bargaining unit and who work for the Hurley Medical Center Board of Managers who have 15 years of credited service as of the earlier of the date the employee makes an election under this section or June 30, 2000 and elected to participate in the Noncontributory Hurley Alternative Pension Plan, during the two-year period beginning July 1, 1998 and ending June 30, 2000, may irrevocably elect to participate in the modified contributory pension plan in lieu of the Hurley Alternative Pension Plan and make employee contributions as described in § 35-23.4(b).
(1) In addition to making the employee contributions required under § 35-23.4(b) of the retirement system, an employee who elects to participate in the modified contributory pension plan under this section shall make a contribution to a modified contributory pension plan equal to the sum of:
a. The amount distributed to the employee in conjunction with the employee’s election to participate in the Hurley Alternative Pension Plan in lieu of the old contributory program under the retirement system;
b. An amount equal to the contributions which would have been made to the modified contributory pension plan from the date the employee terminated participation in the old contributory program under the retirement system through the date the employee elects to participate in the modified contributory pension plan; plus
c. An amount equal to the interest (7% compounded annually) that would have accumulated on all such employee contributions described in subsections (d)(1)a. and (1)b. above. The method and timing of payment by an employee under this section shall be determined by the Hurley Medical Center Board of Managers.
(2) The contributions to the modified contributory pension plan shall be deducted by Hurley Medical Center and remitted as employer contributions to the retirement system pursuant to § 35-35 of the retirement system. An employee eligible under this section who contributes to the modified contributory pension plan shall be entitled to the benefits determined in accordance with § 35-23.4 of the retirement system.
(3) As authorized by resolution of its governing body, Hurley Medical Center shall pick up all contributions of employees qualified under this section made pursuant to § 35-23.4(b) of the retirement system and this section for all compensation payable to the employees on and after the later of (i) the date the employees make an election under this agreement, or (ii) July 1, 1998 and reported to the retirement system. Although considered contributions of a member for certain purposes under Chapter 35 of the Code of the City of Flint, all contributions picked up shall be treated as paid by the employer in lieu of contributions by the employee pursuant to the Internal Revenue Code Section 414(H)2. Electing employees shall not have the option of choosing to receive contributed amounts directly instead of having them paid by the employer to the retirement system. Accordingly, employee contributions picked up by the employer shall not be included in the gross income of employees until such time as the amounts so contributed are distributed to employees as refunds or benefit payments. Contributions picked up as provided in § 35-23.4(b) of the retirement system shall be paid to the retirement system by the employer from the same source of funds that is used for paying compensation to the employee. Hurley Medical Center may pick up these contributions by either a reduction in the employee’s salary increase, or a combination of reduction of salary and offset against a future salary increase.
(4) The compensation of electing employees before reduction for the foregoing employee contributions shall continue to serve as the basis for determining the amount of compensation related fringe benefits, including retirement benefits.
(e) Groups of employees employed by the Hurley Board of Managers that leave the retirement system by the express approval of its finance director and relevant bargaining unit, if any shall be ineligible to participate in any plan of the retirement system.
(Ord. 3029, passed 3-9-1987; Ord. 3372, passed 6-8-1998; Ord. 3589, passed 6-24-2004)