(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’
(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)