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A member who has attained or attains his or her voluntary retirement age and has ten or more years of credited service may retire upon his or her written application filed with the Board of Trustees setting forth at what time, not less than 30 days nor more than 90 days subsequent to the execution and filing thereof, he or she desires to be retired. A member may not extend his or her application for retirement more than three times within a three-year period from the date of initial application. The application shall, absent the mutual agreement of the member and the employer, be deemed irrevocable 30 days preceding the effective date of retirement. Unless otherwise designated, the Personnel Director shall, for purposes of this section, be deemed the employer. Upon his or her retirement he or she shall receive a pension provided in § 35-23 if he or she is a general member, or, as provided in § 35-24.1 if he or she is a police officer member.
(Ord. 2496, passed 5-19-1975; Ord. 2895, passed 2-27-1984)
(a) The first day of the calendar month next following the month in which a general member or firefighter member attains mandatory retirement age, he or she shall be retired, provided, in either case he or she has ten or more years of credited service and is neither an appointee of the City Council, an appointee of the Mayor provided for in Sections 4-202 and 4-203 of the Charter of the City of Flint nor an elected officer or District Judge of the City; provided, however, that as to members represented by Local 1799 American Federation of State, County and Municipal Employees, AFL-CIO, an extension of employment up to a maximum of six months beyond mandatory retirement age shall be granted upon approval and recommendation of the City Administrator. Upon his or her retirement he or she shall be entitled to a pension provided in § 35-24 if he or she is a firefighter member or as provided in § 35-23 if he or she is a general member.
(b) Upon written request of a general member or firefighter member who has attained or attains mandatory retirement age, approved by his or her department head, the Board may continue the member in service for periods not to extend beyond his or her attainment of age 70 years.
(Ord. 1860, passed 8-16-1965; Ord. 2206, passed 4-13-1970; Ord. 2446, passed 2-7-1974; Ord. 2558, passed 6-14-1976)
(a) Until January 1, 1975, a police officer member shall be separated from City employment on the first day of the calendar month next following the month in which he or she acquires 25 years of credited service or attains age 55 years, whichever is last to occur.
(b) Effective January 1, 1975, a police officer member shall be separated from City employment not later than December 31 of the calendar year in which he or she acquires 25 years of credited service. Upon his or her retirement he or she shall be entitled to a pension as provided in § 35-24.1.
(Ord. 2446, passed 7-1-1974)
(a) Upon his or her retirement, as provided in the retirement plan, a general member shall receive a straight life pension and he or she shall have the right to elect to receive his or her pension under an option provided in § 35-26 in lieu of his or her straight pension.
(b) Except as provided in subsections (c), (d), (e), (f) and (h) hereof, his or her straight life pension shall be equal to 1.5% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service, except as provided in subsections (c) and (d) hereof.
(c) A general member represented by Locals 1603A, 1973 and 825 American Federation of State, County and Municipal Employees, AFL-CIO, a general member allocated to level 22B and below not employed by the Board of Hospital Managers, and effective July 1, 1976, a general member represented by the Public Health Nurses Organization shall receive a straight life pension equal to 2% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service, not to exceed 25 years. Provided, however, effective March 15, 1979, as to a general member allocated to level 22B or below not represented by a recognized bargaining unit and not employed by the Board of Hospital Managers, the pension shall be computed in accordance with subsection (f) hereof.
(d) A general member represented by Local 1600, American Federation of State, County and Municipal Employees, AFL-CIO, shall receive a straight life pension equal to 2% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service, not to exceed 25 years and effective July 1, 1978, the general member shall receive a straight life pension equal to 2.2% of his or her final average compensation multiplied by a number of years, and fraction of a year, of his or her credited service.
(e) A general member represented by Local 1799, American Federation of State, County and Municipal Employees, AFL-CIO, shall receive a straight life pension equal to 2% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service, not to exceed 25 years, and fraction of a year of his or her credited service in excess of 25 years and effective July 1, 1978, the general member shall receive a straight life pension equal to 2.4% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service.
(f) (1) A general member allocated to level 23 and above not represented by a recognized bargaining unit and not employed by the Board of Hospital Managers, persons elected to the City Council, District Judges of the 68th Judicial District, the City Administrator, appointees of the Mayor provided for in Sections 4-202 and 4-203 of the Charter of the City of Flint shall receive a straight life pension equal to 2.2% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service. Effective March 15, 1979, a general member not represented by a recognized bargaining unit and not employed by the Board of Hospital Managers, persons elected to the City Council, District Judges of the 68th Judicial District, the City Administrator, appointees of the City Council, and appointees of the Mayor provided for in Sections 4-202 and 4-203 of the Charter of the City of Flint shall receive a straight life pension equal to 2.4% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service.
(2) Effective July 1, 1976, the pension herein provided shall be supplemented by increasing the original pension by 2% each year for ten consecutive years so that the increased pension shall be equal to the following percentages based on the original pension: At the end of the first year 102%, at the end of the second year 104%, at the end of the third year 106%, at the end of the fourth year 108%, at the end of the fifth year 110%, at the end of the seventh year 114%, at the end of the eighth year 116%, at the end of the ninth year 118% and at the end of the tenth year 120%. This subsection (2) shall not apply to employees hired or promoted to become an exempt after January 1, 1985.
(g) According to such rules and regulations as the Board of Trustees shall from time to time adopt, any general member who retires before reaching the minimum age at which they can receive an unreduced social security primary insurance amount, may elect to have their straight life pension actuarially equated to provide an increased pension payable until they reach the minimum age at which they can receive an unreduced social security primary insurance amount, and a reduced pension payable thereafter. The increased pension payable until they reach the minimum age at which they can receive an unreduced social security primary insurance amount, shall approximate the sum of the reduced pension payable upon reaching the minimum age at which they can receive an unreduced social security primary insurance amount and the estimated social security primary insurance amount.
(h) A general member employed by the Board of Hospital Managers whose retirement date is effective during the period from May 1, 1985 through December 31, 1985 shall receive a straight life pension equal to 2% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service not to exceed 25 years plus 1.5 of his or her final average compensation multiplied by the number of years and fraction of a year of his or her credited service in excess of 25 years.
(i) (1) General members not represented by a collective bargaining agent in a collective bargaining unit and not employed by the Board of Hospital Managers, who were employed in such status on January 4, 1994, and who attained, or will attain, 20 or more years of credit service as of their date of retirement, and who retire between November 1, 1994 and January 15, 1995, will be credited with five additional years of service which may be used for retirement purposes only, including meeting any length of service eligibility requirements, provided that the employee applies for retirement on or before October 15, 1994.
(2) General members not represented by a collective bargaining agent in a collective bargaining unit and not employed by the Board of Hospital Managers and allocated to level 23 or above who are appointed by the Mayor pursuant to § 4-401, persons elected to the City Council, District Judges of the 68th Judicial District, the City Administrator, Appointees of the City Council, and Appointees of the Mayor provided in Sections 4-202 and 4-203 of the Charter, who were employed in that status on January 4, 1994, and who attained, or will attain, 20 or more years of credited service as of the date of their retirement, and who retire between November 1, 1995 and January 15, 1996, will be credited with five additional years of service which may be used for retirement purposes only, including meeting any length of service eligibility requirements, provided that any such employee applies for retirement on or before October 15, 1994.
(j) (1) General members not represented by a collective bargaining agent in a collective bargaining unit and not employed by the Board of Hospital Managers, and who were employed by the City but not employed by the Board of Hospital Managers on January 4, 1994, and who attained, or will attain, 20 or more years of service as of their date of retirement, and who retire between November 1, 1996 and January 15, 1997, will be credited with five additional years of service which may be used for retirement purposes only, including meeting any length of service eligibility requirements, provided that the employee applies for retirement on or before October 15, 1996.
(2) General members not represented by a collective bargaining agent in a collective bargaining unit and not employed by the Board of Hospital Managers and allocated to level 23 or above who are appointed by the Mayor pursuant to § 4-401, persons elected to the City Council, District Judges of the 68th Judicial District, the City Administrator, Appointees of the City Council, and Appointees of the Mayor provided in Sections 4-202 and 4-203 of the Charter, who were employed in that status on January 4, 1994, and who attained, or will attain, 20 or more years of service as of the date of their retirement, and who retire between November 1, 1996 and January 15, 1997 will be credited with five additional years of service which may be used for retirement purpose only, including meeting any length of service eligibility requirements, provided that any such employee applies for retirement on or before October 15, 1996.
(k) General members who are not represented by a collective bargaining unit, and who are not employed by the Board of Hospital Managers, may make application between January 15, 1998 and February 15, 1998 to purchase a maximum of 60 months of service credit (generic time) for retirement purposes only, including any minimum length of service or membership requirements, and the credit shall be given only upon payment to the retirement system, no later than February 15, 1998, of a contribution equal to the actuarial present value as of the date of the purchase of the pension payable by the retirement system attributable to the generic time and further if the general member makes timely application to purchase the generic time and further makes timely payment for same, then the general member must retire no later than March 31, 1998.
(l) General members who are to be laid off due to a permanent elimination of the employee’s position and not represented by a collective bargaining agent in a collective bargaining unit and not employed by the Board of Hospital Managers, who were employed in the same status on January 4, 1994, and who will have attained 20 or more years of credit service as of their date of retirement, and who retire between April 23, 2001 and August 31, 2001 may elect to be credited with five additional years of service which may be used for retirement purposes or retirees health care cost contribution purposes only, including meeting any length of service eligibility requirements.
(m) General members who are not represented by a collective bargaining unit may, during the period between April 23, 2001 and August 31, 2001, purchase for the purpose of retirement eligibility and/or retirement benefit computation only, the following: prior military service credit under the formula in effect for the purchase of military service credit as of July 1, 1986. The minimum amount of time for purchase under this subsection shall be 36 months of service. Prior governmental service time with a governmental entity other than the City, layoff time from the City, sick leave without pay from the City, leaves of absence without pay from the City, and/or interim or temporary time with the City. The purchase of generic time by making a contribution equal to the actuarial present value as of the date of the purchase. In addition, during the same time period, any employee not represented by a bargaining unit may make a redeposit of any previously withdrawn employee contribution to the retirement system. The purchase or redeposit shall be computed on the basis of the amount the employee withdrew or the amount the employee would have contributed, in the case of governmental service, layoff time, and/or without pay time, plus 6% interest compounded annually from the relevant date the contribution would have been originally made or date of withdrawal. No employee may purchase or redeposit any time for which the employee is receiving a pension or which has been used in establishing entitlement to a pension from any other source nor shall credit be granted prior to the submission of appropriate documentation from the proper governmental authorities indicating the character of the employment.
(n) No purchase of time shall total a period greater than 84 months of retirement service credit. Employees who are not represented by a collective bargaining unit may accomplish the purchase or redeposit of time in whole or in part by “selling” back to the City accumulated annual and/or sick leave; it being understood that employees retiring on or before August 31, 2001 may sell back accumulated annual and/or sick leave out of their final check.
(o) Any employee who is not represented by a collective bargaining unit who held a position eliminated by reason of layoff prior to April 23, 2001 and who elects to retire on or before August 31, 2001 will have their final average compensation calculated on the basis of the pay rate in effect immediately prior to his or her layoff.
(p) General members who are to be laid off due to a permanent elimination of the employee’s position and who are not represented by a collective bargaining agent in a collective bargaining unit and not employed by the Board of Hospital Managers and who will have attained ten years of service as of the date of the severance may elect to receive a severance payment equal to the employee’s hourly base rate multiplied by 1040 with that severance payment included in the employee’s final average compensation for retirement purposes. The election shall not be effective unless the employee takes a deferred retirement at the same time as the election on or before August 31, 2001. The severance payment must be reimbursed to the City prior to the re-employment of the employee by the City in any capacity.
(q) General members who are to be laid off due to a permanent elimination of the employee’s position and are not represented by a collective bargaining agent in a collective bargaining unit, and not employed by the Board of Hospital Managers, who were employed in the same status on January 1, 2008 and who attained, or will attain, 20 or more years of credited service as of their date of their job elimination, and who retire between June 30, 2008 and October 1, 2008 will be credited with five additional years of service which may be used for retirement purposes only, including meeting any length of service eligibility requirements, provided that any such employee applies for retirement on or before September 1, 2008.
(Ord. 1860, passed 8-16-1965; Ord. 227, passed 4-25-1938; Ord. 2314, passed 2-24-1969; Ord. 2375, passed 10-18-1972; Ord. 2370, passed 12-11-1972; Ord. 2403, passed 8-20-1973; Ord. 2432, passed 3-11-1974; Ord. 2453, passed 8-19-1974; Ord. 2457, passed 10-7-1974; Ord. 2473, passed 12-30-1974; Ord. 2543, passed 2-2-1976; Ord. 2558, passed 6-14-1976; Ord. 2583, passed 1-17-1977; Ord. 2628, passed 4-10-1978; Ord. 2699, passed 2-26-1979; Ord. 2929, passed 12-19-1984; Ord. 2959, passed 6-24-1985; Ord. 3280, passed 7-25-1994; Ord. 3317, passed 12-20-1995; Ord. 3321, passed 1-8-1996; Ord. 3326, passed 3-11-1996; Ord. 3360, passed 1-12-1998; Ord. 3474, passed 5-29-2001; Ord. 3622, passed 8-23-2004; Ord. 3720, passed 7-14-2008)
(a) (1) For general members not represented by recognized bargaining units and not employed by the Board of Hospital Managers, effective July 1, 1986, pension Option “B” joint and survivor pension as provided in § 35-26, may be selected as “pop-up” options.
(2) The “pop-up” options shall provide that when the named beneficiary dies prior to the retirant, the retirant’s pension shall then be increased to a straight life pension. Provided that if the actuary can provide the necessary tables, the pop-up shall also become effective in the event the named beneficiary is divorced from retirant. Provided, however, that the actuarial tables used in calculating the Options “B” and “C” with pop-up shall be such that there is no increased cost to the City or the retirement system.
(b) For general members not represented by recognized bargaining units and employed by the Board of Hospital Managers, and who are members of the “contributory” program, and who retire after the effective date of this section, pension Option “B” joint and survivor pension and Option “C” modified joint and survivor pension, as provided in § 35-26, may be selected as pop-up options. Provided, that if the actuary can provide the necessary tables, the pop-up shall also become effective in the event the named beneficiary is divorced from the retirant. Provided, however, the actuarial tables used in calculating the Options “B” and “C” with pop-up shall be such that there is no increased cost to the City or the retirement system.
(Ord. 3023, passed 12-17-1986)
For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
HURLEY ALTERNATIVE PENSION PLAN. The new pension plan hereby established as a non- contributory plan for employees of the Hurley Medical Center electing to be covered thereby.
HURLEY ALTERNATIVE PENSION PLAN MEMBER. An employee of Hurley Medical Center otherwise qualifying for membership in the City retirement system who elects the provisions of the Hurley alternative plan.
MODIFIED CONTRIBUTORY PENSION PLAN. That plan agreed to as of January 1, 1987 by the respective employee collective bargaining units at Hurley Medical Center and as set forth herein, which modifies the “retirement plan” as generally set forth in Article II with respect to Hurley Medical Center employees.
REGULAR RETIREMENT AGE. Age 60 for members of the Hurley alternative pension plan.
SPECIAL EARLY RETIREMENT AGE. Age 55 for members of the Hurley alternative pension plan.
(Ord. 3029, passed 3-9-1987)
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)
(a) Final average compensation determination. Final average compensation for alternative plan members shall be determined by taking the average of the highest annual compensation paid a member during any period of five years of his or her credited service contained within his or her ten years of credited service immediately preceding the date that his or her employment with Hurley Medical Center terminates.
(b) Employee contributions.
(1) There shall be no employee contributions to the alternative plan.
(2) Hurley members of the retirement system who elect to become alternative plan members shall be paid their accumulated contributions standing to their credit in the employee savings fund as soon as practicable following the date participation in the alternative plan is commenced. The funds shall be returned to the employee with interest earned at the rate of 4% per annum, compounded annually.
(c) Straight life pension determination. Alternative plan members shall receive a straight life pension equal to 1.55 of their final average compensation multiplied by the number of years, and a fraction of a year, of his or her credited service. Effective April 1, 2002, for the first 25 years of service, alternative plan members shall receive a straight life pension equal to 1.7% of their final average compensation multiplied by the number of years, and a fraction of a year, of their credited service. For all years of service exceeding 25 years, the pension shall be computed by taking 1.5% of his or her final average compensation and multiplying that figure by the number of years and a fraction of a year of his or her credited service exceeding 25.
(d) Vesting requirements. Alternative plan members rights to a pension shall vest when a member has acquired ten years of credited service.
(e) Regular retirement. Upon retirement at the regular retirement age, alternative plan members shall receive a straight life pension and shall have the right to elect to receive a pension under an option provided in § 35-26 in lieu of a straight life pension.
(f) Special early retirement.
(1) Hurley alternative plan members who have attained or attain special early retirement age and have ten or more years of credited service may retire upon filing written application with the Board of Trustees setting forth at what time, not less than 30 days nor more than 90 days subsequent to the execution and filing of the application, the member desires to be retired. Members may not extend their application for retirement more than three times within a three-year period from the date of initial application. An application shall, absent the mutual agreement of the member and the employer, be deemed irrevocable 30 days preceding the effective date of retirement. Unless otherwise designated, the personnel director shall for purposes of this section, be deemed the employer.
(2) Upon special early retirement, Hurley alternative plan members may elect to receive the actuarial equivalent of their special early retirement date which shall be payable throughout the member’s life, and the member shall have the right to elect to receive such actuarially reduced pensions under an option provided in § 35-26 in lieu of a straight life pension.
(g) Other retirement plan provisions.
(2) All other provisions of the retirement plan for the City employees’ retirement system shall remain in full force and effect except as modified by this section.
(h) Plan administration. This plan shall be administered in accordance with the ordinances governing the administration of the City employees’ retirement system.
(i) Pop-up option. Members participating in the alternative plan, and who elect Option “B” (joint and survivor pension) or Option “C” (modified joint and survivor pension) under § 35-26 of this Code, shall have these options treated as “pop-up” options so that when the named beneficiary dies prior to the retirant, or if the named beneficiary is divorced from the retirant, the retirant’s pension shall then be increased to a straight life pension. Provided, however, the actuarial tables used in calculating the Options “B” and “C” with pop-up shall be such that there shall be no increased cost to Hurley or the retirement system.
(Ord. 3029, passed 3-9-1987; Ord. 3688, passed 3-26-2007)
(a) General applicability. The provisions of the modified contributory program shall apply to all Hurley Medical Center employees except for those employees who elect, pursuant to § 35-23.3., to participate in the Hurley alternative pension plan or who elect pursuant to § 35-23.2. to retain their existing retirement plan.
(b) Employee contributions.
(1) Exempt Hurley employees shall contribute to the modified contributory plan at the rate of 4.5% of the first $4,200.00 of their annual compensation and 6.5% of all compensation paid in excess of $4,200.00.
(2) All other Hurley employees shall contribute to the modified contributory plan at the rate of 7.0% of their annual compensation.
(c) Final average compensation. Final average compensation for modified contributory plan members shall be determined by taking the average of their richest annual compensation paid during any three years of their credited service contained within their five years of credited service immediately preceding the date that their employment with Hurley Medical Center terminated.
(d) Determination of straight life pension. Members of the modified contributory plan shall receive a straight life pension which is the sum of the following:
(1) For the first 15 years of service, the pension shall be computed by taking 2.2% of the final average compensation times the years of service within this range, not to exceed 15;
(2) For 16 through 25 years of service the pension shall be computed by taking 2.4% of the final average compensation times the years or service within this range, not to exceed ten; and
(3) For all years of service over 25 years the pension shall the computed by taking 1.0% of the final average compensation and multiplying that figure by the number of years exceeding 25.
(e) Plan administration.
(1) This plan shall be administered in accordance with the ordinances governing the administration of the City employees’ retirement system.
(2) All other provisions of the retirement plan for the City retirement system shall remain in full force and effect as modified by this section.
(f) Applicability. This section shall apply to all Hurley Medical Center employees employed at the medical center as of January 1, 1987 and those who hired in or retired after that date.
(Ord. 3029, passed 3-9-1987; Ord. 3491, passed 3-25-2002)
(a) Hurley Medical Center bargaining units, AFSCME Local 1973, AFSCME Local 2056, AFSCME Local 814, AFSCME Local 825, Medical Technologists Organization, RNRPHHMC Union, and Nurse Managers and Case Managers Organization (collectively the “electing bargaining units” for purposes of this section), agreed to terminate their membership within the retirement system as of July 1, 2004, and have their accrued benefits and membership transferred to the Municipal Employees Retirement System (“MERS”) of Michigan. A retirement system member who transfers to the Municipal Employees Retirement System of Michigan:
(1) Ceases to be a member of the retirement system effective July 1, 2004;
(2) Becomes a member of the Municipal Employees Retirement System of Michigan effective July 1, 2004;
(3) Waives all of his or her rights to a pension, annuity, retirement allowance, insurance benefit or any other benefit under the retirement system; and
(4) Acknowledges and approves the transfer of the funded portion of the present value of the accrued actuarial liability of his or her retirement benefit in accordance with subsections (d) and (e) below.
(b) Hurley Medical Center employees who are not members of any bargaining unit, and all vested former members, retirees or beneficiaries, shall be given the right to make a one-time, irrevocable written election to opt out of the retirement system and transfer to MERS, during a window period to be established by Hurley Medical Center. By so electing, each employee, vested former member, retiree or beneficiary:
(1) Ceases to be a participant in the retirement system effective on the date of written election;
(2) Becomes a participant in MERS effective on the date of written election;
(3) Waives all of his or her rights to a pension, annuity, retirement allowance, insurance benefit or any other benefit under the retirement system; and
(4) Acknowledges and approves the transfer of the funded portion of the present value of the accrued actuarial liability of his or her retirement benefit in accordance with subsections (d) and (e) below.
(c) The election right provided in subsection (b) above shall not be provided to retirees who retired from an electing bargaining unit position after July 1, 2004.
(d) An actuary shall determine the amount to be transferred pursuant to subsections (a) and (b) above by using a methodology approved by the Board of Trustees, the Board of Trustees of Hurley Medical Center and MERS. Hurley Medical Center will compensate the retirement system for the cost of this actuarial determination.
(e) For each retirement system member whose participation in the retirement system terminates under subsection (a) or (b) above, the Board of Trustees shall direct the custodian of the funds of the retirement system to transfer to MERS the amount calculated pursuant to subsection (d) above.
(f) The retirement system shall have no liability with regard to the actuarial calculations as set forth in subsection (d) above.
(g) The provisions of this section shall apply in the event other Hurley Medical Center bargaining units subsequently elect MERS participation, except a one-time window to opt out of the retirement system and transfer to MERS may also be offered to retirees from the bargaining units who have not previously been offered this opportunity.
(h) Any employee hired by Hurley Medical Center into a nonunion position on or after September 1, 2008 shall participate in pension benefits provided under MERS in accordance with MERS provisions and shall not be a member of the retirement system.
(Ord. 3747, passed 1-12-2009)
Upon his or her retirement, as provided in the retirement plan, a firefighter member shall receive a straight life pension and he or she shall have the right to elect to receive his or her pension under an option provided in § 35-26 in lieu of a straight life pension.
(a) Effective July 1, 1976, his or her straight life pension shall be equal to the sum of 2.4% of his or her final average compensation multiplied by the number of years and fraction of year, of his or her credited service, not to exceed 25 years, plus 1% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service which is in excess of 25 years.
(b) A firefighter member retiring between July 1, 1976 and December 12, 1976, may elect to receive his or her pension benefits in accordance with the terms hereof, in lieu of a pension computed in accordance with the provisions existing on the effective date of his or her retirement. The election shall be filed with the Secretary of the system on or before May 1, 1977. In the event of such election, the pension being paid the firefighter member shall be recomputed in accordance herewith, a retroactive to the effective date of his or her retirement.
(c) The rights and benefits provided under this chapter for a firefighter member who transfers employment to another department of the City prior to the attainment of ten years of credited service as a firefighter member, shall be those provided for the position to which he or she transfers. In the event a firefighter member who has ten or more years of credited service as a firefighter member, transfers employment to another position with the City, the member shall thereafter receive the benefits provided in this section for firefighter members, notwithstanding that he or she is thereafter employed in another department of the City.
(Ord. 1860, passed 8-16-1965; Ord. 2133, passed 6-23-1969; Ord. 2314, passed 2-24-1969; Ord. 2446, passed 7-1-1974; Ord. 2476, passed 2-17-1975; Ord. 2558, passed 6-14-1976; Ord. 2596, passed 4-11-1977)
(a) Upon his or her retirement as provided in the retirement plan, a police officer member shall receive a straight life pension and he or she shall have the right to elect to receive his or her pension under an option provided in § 35-26 in lieu of a straight life pension.
(b) Effective July 1, 1974, his or her straight life pension shall be equal to the sum of 2.4% of his or her final average compensation multiplied by the number of years, and fraction of a year, of his or her credited service, not to exceed 25 years, plus 1% of his or her final average multiplied by the number of years, and fraction of a year, of his or her credited service which is in excess of 25 years.
(c) Police Lieutenants and Captains bargaining unit members who have vested under the provisions of the Lieutenants and Captains retirement plan/benefit and then subsequently transfer to another position within the City that has a different recognized bargaining unit or is designated a general member not represented by a recognized bargaining unit and not employed by the Board of Hospital Managers, shall, within 60 days of the transfer, any subsequent transfers, or adoption of this section, elect in writing whether he or she will become a member of the retirement plan/benefit available to him or her by virtue of the transfer or whether he or she will continue to remain eligible to retire under the provisions of the Police Lieutenants and Captains retirement plan/benefit and continue to contribute the rate as may be required by the collective bargaining agreement. In the event an election is not made within the aforementioned 60 days, the employee will be considered a participant of the retirement plan/benefit that is available to him or her by virtue of the transfer.
(Ord. 2446, passed 7-1-1974; Ord. 2496, passed 5-19-1975; Ord. 3518, passed 9-22-2003)
(a) (1) Should any person elected to the City Council or elected District Judge of the 68th Judicial District who has eight or more years of credited service or any other member who has 15 or more years of credited service leave City employment prior to his or her voluntarily retirement age, for any reason except his or her death, retirement or discharge for cause, and does not withdraw his or her accumulated contributions from the employees’ savings fund, he or she shall be entitled to a pension as provided in § 35-23 if he or she is a general member, as provided in § 35-24 if he or she is a firefighter member, or as provided in § 35-24.1 if he or she is a police officer member, in either case as the applicable section was in force at the time he or she left City employment. His or her pension shall begin the first day of the calendar month next following the month in which he or she files his or her application for same with the Board of Trustees on or after his or her attainment of his or her voluntary retirement age or at such time as he or she would have qualified for a pension had he or she continued in the employment of the City. Unless otherwise provided in this retirement plan, in no case shall he or she receive credit for the period of his or her absence from City employment.
(2) As of the effective date of this section, and thereafter, should any general member who is an elected official, an elected District Judge of the 68th Judicial District, or an appointee of those officials and has eight or more years of service, or who is an employee not represented by a recognized bargaining unit and not employed by the Board of Hospital Managers, and has ten or more years of credited service leave City employment prior to his or her voluntary retirement age for any reason except death, retirement or discharge for cause, and does not withdraw his or her accumulated contributions from the employees’ savings fund, he or she shall be entitled to a pension as provided in § 35-23 as was in force at the time he or she left City employment. His or her pension shall begin the first day of the calendar month next following the month in which he or she files his or her application for same with the Board of Trustees on or after he or she attains age 55. Provided, however, those who were last hired prior to the effective date of this section and who have eight or more years of credited service, if elected or appointed by those elected, or who have 15 or more years of credited service may elect to begin his or her pension on the first day of the calendar month next following the month in which he or she files his or her application for the same with the Board of Trustees at such time as he or she would have qualified for a pension had he or she continued in the employment of the City. Unless otherwise provided, in no event shall he or she receive credit for the period of his or her absence from City employment.
(b) Until the date his or her pension begins, his or her balance in the employees’ savings fund shall be accumulated at regular interest.
(Ord. 1860, passed 8-16-1965; Ord. 2206, passed 4-13-1970; Ord. 2277, passed 8-9-1971; Ord. 2379, passed 1-29-1973; Ord. 2457, passed 10-7-1974; Ord. 2496, passed 5-19-1975; Ord. 2628, passed 4-10-1978; Ord. 2905, passed 4-9-1984)
(a) Prior to the effective date of his or her retirement, but not thereafter, a member may elect to receive his or her pension as a straight life pension payable throughout his or her life; or he or she may elect to receive the actuarial equivalent of his or her straight life pension in a reduced pension payable throughout his or her life, and nominate a beneficiary, in accordance with the provisions of Option “A,” “B” or “C” set forth below. If a member does not elect an option prior to the effective date of his or her retirement, his or her pension shall be paid him or her as a straight life pension. A straight life pension and Options “B” and “C” shall be subject to subsection (b) of this section.
(1) Option “A.” Pension for ten years certain and life thereafter. Under Option “A,” a retirant will receive a reduced pension payable throughout his or her life with the provision that if he or she dies before he or she has received on 120 monthly pension payments, the payments shall be continued for the remainder of the period of 120 months to such person as the retirant shall have nominated in written designation duly executed and filed with the Board of Trustees. Upon commencement of benefits, the designated beneficiary may nominate a survivor beneficiary by written designation duly executed and filed with the Board of Trustees. If there be no such person surviving the retirant the remaining monthly pension payments shall be paid to the estate of the last to survive of the retirant and the named beneficiary.
(2) Option “B.” Joint and survivor pension. Under Option “B,” a retirant shall receive a reduced pension payable throughout his or her life with the provision that upon his or her death his or her reduced pension shall be continued throughout the life of and paid to the person, having an insurable interest in his or her life, as he or she shall have nominated by written designation duly executed and filed with the Board of Trustees prior to the effective date of his or her retirement.
(3) Option “C.” Modified joint and survivor pension. Under Option “C,” a retirant shall receive a reduced pension payable throughout his or her life with the provision that upon his or her death one-half of his or her reduced pension shall be continued throughout the life of and paid to the person, having an insurable interest in his or her life, as he or she shall have nominated by written designation duly executed and filed with the Board of Trustees prior to the effective date of his or her retirement.
(b) Upon the death of a retirant who is in receipt of a straight life pension, or upon the death of the survivor of a retirant and his or her beneficiary under the election of Option “B” or “C” provided in subsection (a) of this section, and in the event that the death of the retirant, or the death of the survivor of the retirant and his or her beneficiary occurs before there has been paid in pensions an aggregate amount equal to the retirant’s accumulated contributions standing to his or her credit in the employee’s savings fund at the time of his or her retirement, the difference between his or her accumulated contributions and the aggregate amount of pension payments shall be paid to the person or persons as he or she shall have nominated by written designation duly executed and filed with the Board of Trustees. If there be no such designated person surviving the retirant the difference, if any, shall be paid to his or her legal representative. No benefits shall be paid under this subsection on account of the death of a retirant who elected Option “A” provided in subsection (a) of this section.
(c) (1) In the case of persons elected to the City Council, District Judges of the 68th Judicial District, the City Administrator, appointees of the City Council, appointees of the Mayor provided for in Sections 4-202 and 4-203 of the Charter of the City of Flint, general members not represented by recognized bargaining units not employed by Board of Hospital Managers, shall within 60 days of election or appointment or within 60 days of the effective date of this amendment, whichever shall last occur, and not thereafter, elect the option of voluntary withdrawal of his or her own accumulated contributions. Failure to elect this option within the specified time will preclude withdrawal of his or her own accumulated contributions upon retirement. A member who elects this option shall increase his or her personal contribution to the retirement system from 6-1/2% to 10% of the gross compensation paid to him or her by the City, effective with the election of this option for employees thereafter elected or appointed as provided herein. A member who has elected this option may at the time of application for retirement choose to have 25%, 50%, 75% or 100% of his or her accumulated contributions returned in a single payment. The member’s pension shall then be reduced by the actuarial equivalent of the accumulated contributions withdrawn as determined by the City’s actuaries. The accumulated contributions for the member in the employees’ savings fund shall be reduced by the amount of the single payment.
(2) In the event a member elects the above mentioned option in subsection (1), then upon refund of the employee’s accumulated contributions, the employee shall receive regular interest at 1% per annum, compounded annually on his or her accumulated contributions. “Regular interest” shall be defined as set forth in § 35-6 hereof.
(3) Nothing contained in this section shall be construed to prohibit an employee who elects this option from electing other applicable options provided in the retirement plan.
(4) The employee may also elect to cancel his or her decision to apply for an annuity withdrawal option. In such a case, the employee forfeits the right to withdraw his or her own accumulated contributions and shall not be entitled to a refund of any excess contributions made by him or her for such option during the period of his or her entitlement thereto.
(d) (1) General members employed by the Board of Hospital Managers whose retirement date is effective during the period from May 1, 1985 through December 31, 1985, may elect at the time of application for retirement to have 25%, 50%, 75% or 100% of their accumulated contributions returned in a single payment. The member’s pension shall then be reduced by the actuarial equivalent of the accumulated contributions withdrawn as determined by the City’s actuaries. The accumulated contributions for the member in the employees’ savings fund shall be reduced by the amount of the single payment.
(2) In the event a member elects the aforementioned option, then upon refund of the employee’s accumulated contributions the employee shall receive regular interest at 1% per annum, compounded annually on his or her accumulated contributions. “Regular interest” shall be defined as set forth in § 35-6 hereof.
(3) Nothing contained in this section shall be construed to prohibit an employee who elects this option from electing other applicable options provided in the retirement plan.
(Ord. 1860, passed 8-16-1965; Ord. 2904, passed 4-9-1984; Ord. 2959, passed 6-24-1985; Ord. 3766, passed 5-24-2010)
Actuarial equivalence will be determined on the basis of the following interest rates and mortality tables adopted by the Board of Trustees:
(a) Interest: for purposes of actuarial equivalency between the standard form of payment (straight life pension) and the optional forms of payment described in § 35-26, the actuarial equivalency interest rate of 6% per annum as set forth in § 35-6. For purposes of determining the remaining amount of pension payable after a member has withdrawn his accumulated contributions under § 35-26(c), the actuarial equivalency interest rate of 1% per annum as set forth in § 35-26(c)(2).
(b) Mortality: 1971 group annuity mortality table with a 90% unisex blend.
Actuarial assumptions that well be used to determine the amount or level of any option benefit forms will be the actuarial equivalent of the normal retirement benefit. Optional benefits provided under the plan shall be actuarially adjusted in relation to the straight life annuity in accordance with IRC § 415(B)(2), as amended, which is incorporated by reference. The actuarial early retirement reduction and reduction of the dollar limit if the employee has less than ten (10) years of participation under IRC § 415 do not apply to income received as a pension or annuity as a result of an employee’s personal injury, sickness or death and shall be administered in accordance with IRC § 415(B)(2), as amended.
In the event of a change in these actuarial assumptions as applicable to any member, actuarially equivalent benefits for affected members after the date of such change shall be the greater of a. or b. below:
a. The actuarial equivalent of the benefit accrued to the date of change, based upon the member’s final average compensation and credited service (both determined as of the date of change) and the provisions of the retirement ordinance as of the date of change, including the actuarial equivalency factors prior to the date of change; or
b. The actuarial equivalent of a benefit based upon all final average compensation and credited service determined as of the date of calculation after the amendment, and based upon the terms of the retirement ordinance after the amendment applying the new actuarial equivalency factors.
(Ord. 3297, passed 5-22-1995; Ord. 3815, passed 2-16-2012)
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