(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)