Loading...
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)
Loading...