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(a) The employee savings fund shall be the fund in which shall be accumulated, at regular interest, the contributions deducted from the compensation of members and from which shall be made refunds and transfers of accumulated contributions as provided in the retirement plan.
(b) (1) From and after December 31, 1986, the member’s contribution to the retirement system shall be:
a. For a police officer member, 6% of the compensation paid him or her by the City;
b. For a firefighter member, 5% of the compensation paid him or her by the City up to and including December 23, 1972, and 6.5% of the compensation paid him or her by the City from and after December 24, 1972; and
c. For general members, the sum of 3% of the first $4,200.00 of his or her annual compensation plus 5% of the portion, if any, of annual compensation which is in excess of $4,200.00.
(2) Effective July 1, 1978 as to general members represented by Local 1600, American Federation of State, County and Municipal Employees, AFL-CIO, 6.25% of the compensation paid to him or her by the City, and as to general members represented by Local 1799, American Federation of State, County and Municipal Employees, AFL-CIO, 6.5% of the compensation paid him or her by the City.
(3) Effective March 4, 1979, for general members allocated to level 22B and below, not represented by recognized bargaining units and not employed by the Board of Hospital Managers, 6.5% of the compensation paid him or her by the City.
(4) Effective at the beginning of the first payroll period following adoption of this amendment, the member’s contribution to the retirement system shall be:
a. For general members appointed by the City Council, general members appointed by the Mayor pursuant to Sections 4-202 and 4-203 of the Charter, general members elected to the City Council, general members elected District Judges of the 68th Judicial District and general members allocated to level 23 and above, not employed by the Board of Hospital Managers and not represented by a recognized bargaining units, 6% of the compensation by him or her by the City; and
b. Effective March 4, 1979, 6.5% of the compensation paid him or her by the City.
(5) For general members represented by Local 1973, American Federation of State, County and Municipal Employees, AFL-CIO, the sum of 3% of the first $4,200.00 of his or her annual compensation which is in excess of $4,200.00 on all earnings up to and including June 30, 1974, the sum of 4.25% of the first $4,200.00 of his or her annual compensation plus 6.25% of the portion if any, of annual compensation which is in excess of $4,200.00 on all earnings during the period July 1, 1974 through June 30, 1985, and the sum of 5.25% of the first $4,200.00 of his or her annual compensation plus 7.25% of the portion, if any, of annual compensation which is in excess of $4,200.00 on all earnings after July 1, 1975;
(6) For a general member not represented by a recognized bargaining unit and employed by the Board of Hospital Managers from and July 1, 1976, the sum of 3.3% of the first $4,200.00 on all earnings of his or her annual compensation plus 5.3% of the portion, if any, of annual compensation which is in excess of $4,200.00);
(7) For a general member represented by Local 825, American Federation of State, County and Municipal Employees, AFL-CIO, from and after July 1, 1976, the sum of 5.25% of the first $4,200.00 of his or her annual compensation plus 7.25% of the portion, if any, of annual compensation which is in excess of $4,200.00.
(c) The officer or officers responsible for making up the payroll shall cause the applicable contributions provided in subsection (b) of this section to be deducted from the compensation of each member on each and every payroll, for each and every payroll period, so long as he or she continues a member of the retirement system. When deducted, the contributions shall be paid into the employee savings fund and shall be credited to the individual account of the member from whose compensation the contributions were deducted. Every member shall be deemed to consent and agree to the deductions made and provided for herein. Payment of this compensation less the deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the member during the period covered by the payment, except as to benefits provided by the retirement plan.
(d) In addition to the contributions deducted from the compensation of a member, as hereinbefore provided, a member shall deposit in the employee savings fund, by a single contribution or by an increased rate of contribution and approved by the Board of Trustees, the amount, if any, he or she previously withdrew from the employee savings fund, together with regular interest compounded annually from the date of withdrawal to the date of repayment. In no case shall any member be given credit for service rendered prior to the date he or she withdrew his or her accumulated contributions until he or she repays to the employee savings fund all amounts due the fund by him or her.
(e) Upon the retirement of a member, his or her accumulated contributions shall be transferred from the employee savings fund to the retirement reserve fund. At the expiration of a period of five years from the date an employee ceases to be a member, any balance standing to his or her credit in the employee savings fund shall be transferred to the pension reserve fund.
(f) Emoluments and rewards — police officers and firefighters. All rewards and proceeds of gifts from any source and all emoluments that may be allowed by the City Council on account of extraordinary service performed by police officers and firefighters, who are members, shall be paid into the City Treasury. This money shall be credited to the individual employee savings fund account of the member to whom emoluments or rewards are given and shall in other respects be treated as a contribution to the employee savings account of the member.
(g) (1) For classified employees not represented by bargaining units and not employed by the Board of Hospital Managers, effective July 1, 1986, employees included in the above group allocated to pay levels 22E and below shall have their individual employee contributions to the City’s retirement system reduced from the rate in effect on June 30, 1986 by 4% of the compensation paid by the City for the full 13 payroll periods following January 1, 1987; employees included in the above group and allocated to pay levels 23 and above, as well as appointive officers, shall have the option of having their individual employee contribution to the City’s retirement system reduced by 2% of the compensation paid by the City for the 13 full payroll periods following January 1, 1987, or reimbursement not to exceed 2% of an employee’s base wage in effect on July 1, 1986, towards purchase or computer equipment for personal use to include hardware and/or software. The purchase shall be made between July 1, 1986 and June 30, 1987, while employed by the City. Individuals not employed for the full fiscal year shall be reimbursed on a pro rata basis. Additionally, the employee shall agree that if he or she leaves the City’s employ before the end of the fiscal year, he or she will have deducted from his or her final pay an amount equal to one-twelfth of the reimbursement for each month or portion thereof lacking of the one full year.
(2) Further, for classified employees not represented for the purposes of collective bargaining and not employed by the Board of Hospital Managers the employees’ individual contribution to the City’s retirement system shall be 2% of the compensation paid to the employee in any given year.
(h) The City agrees to the institution of a pension “pick-up” plan for employees provided that the Internal Revenue Service approves such a pick-up; and provided further that the pick-up approved by the Internal Revenue Service will be limited solely to the employees not represented by a recognized bargaining group and employed by the Hurley Board of Managers, hereinafter known as exempts. If the Internal Revenue Service does not approve a pick-up limited solely to the exempt employees, the pick-up will not be applicable. The pick-up plan as set forth herein shall be instituted as follows:
(1) The employer shall pick up the employee contributions required of exempt employees for all compensation earned after the effective date of this provision. The contributions, so picked up, shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. Employee contributions picked up by the City, pursuant to this provision, shall be treated for all other purposes, in the same manner and to the same extent, as employee contributions made prior to the effective date of this provision.
(2) The effective date of this provision shall be the date of approval, implementation as soon as is practical. These employee contributions so picked up shall not be included in gross income for tax purposes until such time as they are distributed by refund or benefit payment.
(3) With respect to the plan amendment and the pick-up of employee pension contributions set forth above, it is expressly understood and agreed as follows:
a. The plan amendment is being adopted only for the purpose of allowing employees to take advantage of IRS Code provisions which permit government employees to tax shelter their pension plan contributions.
b. Salary before reduction for contribution will continue to serve as the basis for determining the amount of salary related fringe benefits, including retirement benefits.
c. The employer will maintain information which will permit identification of the amount of employee contributions made before and after the plan amendment. This is necessary in order to determine the extent to which a pension plan distribution is taxable income to the employee at the time the distribution is received.
d. The plan amendment is being accomplished by local agreement rather than a change in State law.
(4) It is the intention of this provision that the above described contributions be treated as picked up by the employer for purposes of Section 414(H)(2) of the Internal Revenue Code of 1986, in that the two criteria for the treatment are satisfied:
a. The employer hereby specifies that the above described contributions, although specified as employee contributions under the retirement system, are being paid by the employer to the retirement system in lieu of contributions by the exempt employee; and
b. The exempt employee does not have the option of choosing to receive the contributed amounts directly instead of having them paid by the City to the retirement system.
(5) It is the intention of the employer and the exempt employee group that each exempt employee may, pursuant to Section 414(H)(2) of the Internal Revenue Code of 1986, exclude from gross income, for federal income tax purposes, all of the contributions made by the employer to the retirement system and that the contributions shall not be includable in the exempt employee’s gross income until distributed or made available to the exempt employee.
(6) The effect of this provision is that each exempt employee’s compensation shall be reduced by the amount of the pension contribution which would otherwise be required of an exempt employee under the provisions of the retirement system and the employer will contribute this compensation reduction to the retirement system. The compensation reduction is to be considered a part of each exempt employee’s compensation for purposes of determining the contribution which would otherwise be required of an exempt employee under the provisions of the retirement system.
(Ord. 1860, passed 8-16-1965; Ord. 1920, passed 7-7-1966; Ord. 2206, passed 4-13-1970; Ord. 2370, passed 12-11-1972; Ord. 2496, passed 5-19-1975; Ord. 2583, passed 1-17-1977; Ord. 2628, passed 4-10-1978; Ord. 2699, passed 2-26-1979; Ord. 3024, passed 12-17-1986; Ord. 3038, passed 6-8-1987; Ord. 3059, passed 6-27-1988; Ord. 3101, passed 7-10-1989; Ord. 3133, passed 4-23-1990; Ord. 3223, passed 12-14-1992; Ord. 3273, passed 4-11-1994; Ord. 3304, passed 7-24-1995)
The retirement reserve fund shall be the fund from which shall be paid all pensions provided in the retirement plan. Should a disability retirant return to the employ of the City, his or her pension reserve at the date of his or her return shall be transferred from the retirement reserve fund to the employee savings fund and the pension reserve fund in the same proportion as his or her pension reserve was originally transferred from the funds to the retirement fund.
(Ord. 1860, passed 8-16-1965)
(a) The pension reserve fund is hereby created. It shall be the fund in which shall be accumulated reserves for the payment of all pensions payable from funds provided by the City. Upon the basis of such mortality and other experience tables, and regular interest as the Board of Trustees shall from time to time adopt, the Actuary shall annually compute the pension reserves:
(1) For pensions being paid retirants and beneficiaries; and
(2) Covering service rendered and to be rendered by members.
(b) The pension reserves shall be financed by annual appropriations, to be made by the City Council and Board of Hospital Managers, determined according to subsections (1), (2) and (3) of this subsection (b), subject to subsections (c) and (d) of this section.
(1) The appropriation for members’ current service shall be a percent of their annual compensations which will produce an amount which if paid annually by the City during their future service will be sufficient to provide the reserves, at the time of their retirements, for the portions of the pensions to be paid them based upon the future service.
(2) The appropriation for members’ accrued service shall be a percent of their annual compensations which will produce an amount which if paid annually by the City over a period of years, to be determined by the Board of Trustees, will amortize, at regular interest, the unfunded pension reserves for the accrued service portions of the pensions to which they may be entitled.
(3) The appropriation for pensions being paid retirants and beneficiaries shall be a percent of the annual compensations of members which will produce an amount which, if paid annually by the City over a period of years, to be determined by the Board of Trustees, will amortize, at regular interest, the unfunded pension reserves for pensions being paid retirants and beneficiaries.
(4) Each year following receipt of the report of the annual actuarial valuation, the balance in the retirement reserve fund shall be set equal to the actuarial present value of pensions being paid retirants and beneficiaries by a transfer to or from the pension reserve fund. The pending transfer shall be taken into account by the Actuary when making the actuarial valuation.
(c) The Board of Trustees shall report to the City Council, on or before June 30 of each year, the amount of contributions to be made by the City and Board of Hospital Managers. The City and Board of Hospital Managers shall respectively appropriate and pay the amounts of contributions out of available funds to the retirement system during the ensuing fiscal year.
(Ord. 1860, passed 8-16-1965; Ord. 2967, passed 8-26-1985; Ord. 3495, passed 5-28-2002; Ord. 3591, passed 6-24-2004; Ord. 3642, passed 4-11-2005)
Each year, when so requested by the City Administrator, the Secretary of the Board of Trustees shall prepare a budget showing the estimated amounts necessary for the administration of the retirement system during the ensuing fiscal year. When adopted by the City Council, the budget shall be administered and disbursed from the retirement fund of the City of Flint.
(Ord. 1860, passed 8-16-1965; Ord. 2525, passed 10-27-1975)
(a) (1) The Board of Trustees shall be the Trustees of the assets of the retirement system. The Board of Trustees shall have full power to invest and reinvest the assets subject to:
a. The terms, conditions, limitations and restrictions imposed by law of the State upon domestic life insurance companies in the making and disposing of their investments; and
b. The State law pertaining to the investments of public employees retirement system assets.
(2) The Board of Trustees shall have full power to hold, purchase, sell, assign, transfer and dispose of any securities and investments in which any of the money of the system has been invested, as well as the proceeds of the investments and any money belonging to the system.
(b) There shall be kept on deposit available cash not exceeding 5% of the total assets of the retirement system. All money and other assets of the retirement system shall be held for the sole purpose of making payments authorized by the provisions of the retirement plan and shall be used for no other purpose.
(c) The description of the various funds of the retirement system shall be interpreted to refer to the accounting records of the system and not to the segregation of assets in the funds of the system.
(Ord. 1860, passed 8-16-1965)
All interest and other earnings on money and investments of the retirement system shall be credited to the pension reserve fund. The Board of Trustees shall, at the end of each fiscal year, allow regular interest on the members’ individual balances in the employee savings fund at the beginning of the fiscal year; and on the mean assets credited to the retirement reserve fund. The amounts of interest so credited to the employee savings fund and the retirement reserve fund shall be charged to the pension reserve fund.
(Ord. 1860, passed 8-16-1965)
(a) The right of a person to a pension, to the return of accumulated contributions, the pension itself, any optional benefit, and any other right accrued or accruing to any member, retirant or beneficiary under the provisions of the retirement plan, and any monies belonging to the retirement system shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law, or any law or any other process of law whatsoever, and shall be unassignable, except that a member may make voluntary assignment of his or her accumulated contributions to the municipal employees credit union as security for a loan or loans; provided, that the City and Hurley Medical Center shall have a right to set off from any member’s accumulated contributions at the time of termination of employment, for any money owed by the member to either Hurley Medical Center or the City, whether from nonpayment of a debt to Hurley Medical Center or the City, for any overpayment in final wages and fringe benefit payoffs made as a result of termination of employment. Provided also, that the City and Hurley Medical Center shall have the right to set off for any claim arising from embezzlement by or fraud of a member.
(b) Any retirant or beneficiary may authorize to have deducted from his or her pension those sums of money necessary to provide his or her membership in any fund or plan acceptable to the Board of Trustees, provided that the authorization to deduct is in writing and that notice of termination of the deduction shall be given to the Board in writing.
(Ord. 1860, passed 8-16-1965; Ord. 2457, passed 10-7-1974; Ord. 2842, passed 7-26-1982)
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