Article
I. EMPLOYEES’ RETIREMENT FUND
II. RETIRED EMPLOYEES’ GROUP DEATH BENEFIT FUND
III. SUPPLEMENTAL RETIREMENT ORDINANCE
Charter reference:
Employees’ retirement fund, see Ch. XXVII, § 36
Cross-reference:
Human resources, see §§ 2-176 et seq.
Retired employee health coverage, see § 2-190
Editor’s note:
Section
Article I: Employees’ Retirement Fund
Division 1: General Provisions
2.5-1 Definitions
2.5-2 Membership in the fund
2.5-3 Contributions
2.5-4 Credited service
2.5-5 Administration
2.5-6 Annual actuarial valuations
2.5-7 Disability pension
2.5-8 Cost of living adjustment
2.5-9 Deferred retirement option program (DROP)
2.5-10 Payment of benefits
2.5-11 Exemption of benefits from judicial process
2.5-12 Amendment of ordinance
2.5-13 Controlling power of ordinance
2.5-14 Prerequisites to ordinance
2.5-15 Limitation of legal rights
2.5-16—2.5-19 Reserved
Division 2: Provisions for Group III Members (Police Officers Hired Prior to January 1, 2013)
2.5-20 Applicability
2.5-21 Earnings
2.5-22 Retirement dates
2.5-23 Compensation base for determining benefits
2.5-24 Termination benefits and vesting
2.5-25 Retirement pension (pension benefits)
2.5-26 Disability pension
2.5-27 Death benefit
2.5-28—2.5-29 Reserved
Division 3: Provisions Applicable to Group IV Members (Police Officers Hired on or After January 1, 2013)
2.5-30 Applicability
2.5-31 Earnings
2.5-32 Retirement dates
2.5-33 Compensation base for determining benefits
2.5-34 Termination benefits and vesting
2.5-35 Retirement pension (benefit)
2.5-36 Disability pension
2.5-37 Death benefit
2.5-38, 2.5-39 Reserved
Division 4: Provisions Applicable to Group I
Members (General Employees Hired Prior to July 1, 2011)
2.5-40 Applicability
2.5-41 Earnings
2.5-42 Retirement dates for group I general members
2.5-43 Compensation base for determining benefits
2.5-44 Termination benefits and vesting
2.5-45 Retirement pension (benefit)
2.5-46 Disability pension
2.5-47 Death benefit
2.5-48—2.5-49 Reserved
Division 5: Provisions for Group II Members
(General Employees Hired on or After July 1, 2011)
2.5-50 Applicability
2.5-51 Earnings
2.5-52 Retirement dates
2.5-53 Compensation base for determining benefits for group II members
2.5-54 Termination benefits and vesting
2.5-55 Retirement pension (benefit)
2.5-56 Disability pension
2.5-57 Death benefits
2.5-58—2.5-59 Reserved
Division 6: Provisions Applicable to Group V
Firefighters (Firefighters Hired Prior to January 10, 2015) Only
2.5-60 Applicability
2.5-61 Earnings
2.5-62 Retirement dates for group V firefighters
2.5-63 Compensation base for determining benefits
2.5-64 Termination benefits and vesting
2.5-65 Retirement pension for group V firefighters
2.5-66 Disability pension
2.5-67 Death benefits for group V firefighters
2.5-68—2.5-69 Reserved
Division 7: Provisions for Group VI Firefighters
(Firefighters Hired on or after January 10, 2015)
2.5-70 Applicability
2.5-71 Earnings
2.5-72 Retirement dates for group VI firefighters
2.5-73 Compensation base for determining benefits for group VI firefighters
2.5-74 Termination benefits and vesting
2.5-75 Retirement pension for group VI members
2.5-76 Disability pension
2.5-77 Death benefit
2.5-78—2.5-225 Reserved
Article II: Retired Employees Group Death Benefit Fund
2.5-226 Continuation of death benefit fund
2.5-227 Appropriations to fund
2.5-228 Definitions
2.5-229 Entitlement to death benefit
2.5-230 Executive director of death benefit fund
2.5-231 Board of trustees
Article III: Supplemental Retirement Ordinance
2.5-232 General provision
2.5-233 Definitions
2.5-234 Eligibility and benefits
2.5-235 Administration and miscellaneous
The following words, terms and phrases, when used in this chapter, as amended, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. The masculine pronouns, wherever used herein, shall include both male and female persons.
ACTUARIAL EQUIVALENT AND ACTUARIALLY EQUIVALENT. Equality in value of the aggregate amounts expected to be received under different forms of payment based upon the actuarial factors and assumptions used by the actuary with the approval of the board.
ACTUARIAL TABLES. Such tables of mortality, interest rates, turnover discounts, salary scales, etc., as shall be used by the actuary with approval of the board.
ACTUARY. The technical advisor regarding the operations, which are based on mortality, service and compensation experience, who makes periodic valuations of the assets and liabilities of the fund and other evaluations as requested by the board and the governing body.
ALTERNATIVE PENSION BENEFIT. Shall have the meaning as set forth in the following sections:
(1) Section 2.5-25 for group III members;
(2) Section 2.5-35 for group IV members;
(3) Section 2.5-45 for group I members;
(4) Section 2.5-55 for group II members;
(5) Section 2.5-65 for group V firefighters; and
(6) Section 2.5-75 for group VI firefighters.
BASE PENSION. The annual life pension a member receives as set forth in the following sections:
(1) Section 2.5-25 for group III members;
(2) Section 2.5-35 for group IV members;
(3) Section 2.5-45 for group I members;
(4) Section 2.5-55 for group II members;
(5) Section 2.5-65 for group V firefighters; and
(6) Section 2.5-75 for group VI firefighters.
BENEFICIARY. Any person in receipt of a retirement benefit or any other benefit provided under this chapter.
BOARD. The board of trustees of the employees’ retirement fund of the City of Fort Worth.
BUILT-IN OVERTIME. The overtime earned as a result of suppression firefighters working their regular schedules, that is, the hours worked in excess of 212 hours in the city’s regular 28-day pay cycle for firefighters. This definition does not include constant staffing overtime (CSOT) or emergency callback overtime (ECOT). In each 28-day pay cycle, a suppression firefighter is scheduled to work either 216, 224 or 232 hours. The number of hours in each 28-day pay cycle that are in excess of 212 is the BUILT-IN OVERTIME that the suppression firefighter will earn for that particular 28-day pay cycle. Thus, the maximum amount of BUILT-IN OVERTIME that a suppression firefighter can earn per 28-day pay cycle is four hours (when the suppression firefighter is scheduled to work 216 hours), or 12 hours (when the suppression firefighter is scheduled to work 224 hours), or 20 hours (when the suppression firefighter is scheduled to work 232 hours).
BUY BACK INTEREST. The assumed rate of return as adopted by the board of trustees of the City of Fort Worth Employees’ Retirement Fund for the annual actuarial valuation of the fund.
CASH BALANCE ACCOUNT. The individual nominal account established for general employees hired on or after July 1, 2011, to account for overtime contributions made to the fund.
CITY. The City of Fort Worth, Texas.
CODE. The United States Internal Revenue Code, as amended, and any successor thereof.
COMPENSATION BASE. Shall have the meanings set forth in the following sections:
(1) Section 2.5-23 for group III members;
(2) Section 2.5-33 for group IV members;
(3) Section 2.5-43 for group I members;
(4) Section 2.5-53 for group II members;
(5) Section 2.5-63 for group V firefighters; and
(6) Section 2.5-73 for group VI firefighters.
CREDITED SERVICE. The number of years (treating each complete month of service as one-twelfth of a year) in which an employee has participated in the employees’ retirement fund of the City of Fort Worth, Texas, including unused accumulated sick leave and major medical leave pursuant to § 2.5-4. Service for 15 or more calendar days in any month shall constitute a complete month of service; service for less than 15 calendar days in any month shall constitute a complete month of absence. Notwithstanding the preceding provisions of this definition of CREDITED SERVICE, the period of time following a member’s effective DROP election shall not be included when determining a member’s credited service. A member may have his or her proof of credited service increased through the purchase of permissive service credits as provided in § 2.5-4(c).
DROP. The deferred retirement option program as set forth in § 2.5-9.
DROP ACCOUNT. The account created pursuant to § 2.5-9(d) for a member who has made a DROP election.
DROP ELECTION. The election made by a member pursuant to § 2.5-9 to participate in the DROP.
EARNED INCOME. For purposes of § 2.5-7, those wages, salaries, tips, commissions, monetary bonuses or professional fees, and other amounts received as compensation for personal services actually rendered, including any compensation deferred under a deferred compensation program.
EARNINGS. Shall have the meaning set forth in the following sections:
(1) Section 2.5-21 for group III members;
(2) Section 2.5-31 for group IV members;
(3) Section 2.5-41 for group I members;
(4) Section 2.5-51 for group II members;
(5) Section 2.5-61 for group V firefighters; and
(6) Section 2.5-71 for group VI firefighters.
EXECUTIVE DIRECTOR. The individual appointed by the board to supervise the administrative affairs of the fund and carry out the business of the fund.
FISCAL YEAR. The period from October 1 of one year through September 30 of the following year.
FUND. The employees’ retirement fund of the City of Fort Worth, Texas.
GENERAL EMPLOYEE. A member of the fund who is not a police officer or firefighter.
GOVERNING BODY. The city council for the City of Fort Worth.
GROUP I MEMBER. A general employee hired prior to July 1, 2011.
GROUP II MEMBER. A general employee hired on or after July 1, 2011.
GROUP III MEMBER. A police officer hired prior to January 1, 2013.
GROUP IV MEMBER. A police officer hired on or after January 1, 2013.
GROUP V FIREFIGHTER.
(1) A firefighter member hired prior to January 10, 2015.
(2) Any member of the Fort Worth fire department, hired prior to January 10, 2015 who was hired in substantial compliance with Tex. Local Government Code Chapter 143, or as modified by the provisions of the city’s collective bargaining agreement with the Fort Worth Professional Firefighters Association IAFF Local 440, and any firefighter trainee who is employed by the city for the sole purpose of attending the City of Fort Worth fire department’s training academy.
GROUP VI FIREFIGHTER.
(1) A firefighter member hired on or after January 10, 2015.
(2) Any member of the Fort Worth fire department, hired on or after January 10, 2015, who was hired in substantial compliance with Tex. Local Government Code Chapter 143, or as modified by the provisions of the city’s collective bargaining agreement with the Fort Worth Professional Firefighters Association IAFF Local 440, and any firefighter trainee who is employed by the city for the sole purpose of attending the City of Fort Worth fire department’s training academy.
LEGITIMATE CHILDREN. Those children legitimate to their respective parent(s), as legitimacy is defined by the Texas Family Code and the Texas Probate Code, as amended.
LINE OF DUTY. In the course of the operation usual to a member’s employment, including all operations necessary, incident or appurtenant thereto or connected therewith, whether such operations are conducted at the usual place of employment or elsewhere.
MEMBER. A “participating member” as defined by Tex. Revised Civil Statutes Article 6243i, § 1.02(4).
NET EARNINGS FROM SELF- EMPLOYMENT. Shall constitute, for purposes of § 2.5-7, the NET EARNINGS FROM SELF- EMPLOYMENT as reflected upon the Internal Revenue Form Schedule SE and its successors, which schedule is attached to Internal Revenue Form 1040 and its successors.
NORMAL RETIREMENT DATE. Shall have the meaning set forth in the following sections:
(1) Section 2.5-22 for group III members/group III police members;
(2) Section 2.5-32 for group IV members/group IV police members;
(3) Section 2.5-42(a) for group I members/group I general members;
(4) Section 2.5-52 for group II members/group II general members;
(5) Section 2.5-62(a) for group V members/group V firefighters; and
(6) Section 2.5-72(a) for group VI members/group VI firefighters.
PERMISSIVE SERVICE CREDITS. A member’s voluntary purchase of additional periods of credited service pursuant to § 2.5-4(c).
POLICE OFFICER. A member of the City of Fort Worth police department, who has acquired civil service status pursuant to Tex. Local Government Code Chapter 143, as amended, as well as a beginning employee of the City of Fort Worth police department currently serving a one-year probationary period pursuant to Tex. Local Government Code Chapter 143, as amended.
REGULAR INTEREST. Two-year Treasury Bill rate on the last pay date of the calendar year. Regular Interest will be compounded annually. Regular Interest will not be applied to any year in which the member is not an active employee on the last pay date of the calendar year.
RETIREMENT BENEFIT. A pension for life, as provided in this chapter, payable each year in 12 equal monthly installments, beginning as of the date approved by the board in accordance with the provisions of this chapter.
STANDARD PENSION BENEFIT. Shall have the meaning set forth in the following sections:
(1) Section 2.5-25 for group III members;
(2) Section 2.5-35 for group IV members;
(3) Section 2.5-45 for group I members;
(4) Section 2.5-55 for group II members;
(5) Section 2.5-65 for group V firefighters; and
(6) Section 2.5-75 for group VI firefighters.
TERMINATION OF EMPLOYMENT. Complete severance of employment of any member as an employee of the city by any act or means except death, disability or retirement.
TRUSTEE. A person appointed or elected to administer the fund.
VESTED. The rights accrued under this article by a member of the fund who has been a member for five years or more, or who has attained his or her retirement date, as described in this chapter. Such rights shall also accrue to all members of the fund at the time of termination of the fund, at the time of any complete discontinuance of the city’s contributions to the fund, and to members affected at the time of any partial termination of the fund, but only to the extent that the benefits of such members have been funded.
VESTED TERMINATED. When used to describe a member in any group shall mean a member who:
(1) Voluntarily or involuntarily separates from the city prior to retirement;
(2) Is vested at the time of separation; and
(3) Does not receive a refund of any part of his contribution.
VESTED TERMINATED PENSION. Shall have the meaning as set forth in the following sections:
(1) Section 2.5-24(b) for group III members/group III police officers;
(2) Section 2.5-34(b) for group IV members/group IV police officers;
(3) Section 2.5-45(b) for group I members/group I general members;
(4) Section 2.5-54(b) for group II members/group II general members;
(5) Section 2.5-65(b) for group V members/group V firefighters; and
(6) Section 2.5-75(a) or (c) for group VI members/group VI firefighters.
VESTED TERMINATED RETIREMENT DATE. Shall have the meaning set forth in the following sections:
(1) Section 2.5-22(b) for group III members/group III police members;
(2) Section 2.5-32(b) for group IV members/group IV police members;
(3) Section 2.5-42(c) for group I members/group I general members;
(4) Section 2.5-52(b) for group II members/group II general members;
(5) Section 2.5-62(c) for group V members/group V firefighters; and
(6) Section 2.5-72(c) for group VI members/group VI firefighters.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 21459-09-2014, § 1, passed 9-16-2014; Ord. 21510-10-2014, § 1, passed 10-21-2014; Ord. 22977-10-2017, § 1, passed 10-24-2017; Ord. 23034-12-2017, § 1, passed 12-12-2017; Ord. 23516-12-2018, § 1, passed 12-11-2018)
(a) Membership in the fund shall be based on the requirements set forth in Tex. Revised Civil Statutes Article 6243i, § 2.01, provided however, that membership in the fund shall be a condition of employment for all employees who are eligible to be members unless otherwise provided in subsection (a-1).
(a-1) An individual who is eligible to be a member may elect not to become a member of the fund only if all of the following conditions are met.
(1) The individual has, for at least one full pay period prior to making the election, been serving in a position that is part of a class of position that is not eligible to be a member of the fund but that is participating in the city’s social security alternative plan, also known as the FICA alternative plan.
(2) The class of position described in subsection (1) is being eliminated and replaced with a class of position that will be eligible to be a member of the fund.
(3) The contribution rate under the FICA alternative plan for the class of position being eliminated and the contribution rate under the fund for the replacement class of position are the same at the time of the election and will continue to be the same thereafter.
(4) An individual who elects not to become a participating member of the fund shall be required to continue participating in and making contributions to the FICA alternative plan.
(5) An election is offered and may be made no more than once.
(6) The election is required to be and actually is made prior to first date for which a contribution under the fund is schedules to be made for the replacement class of position.
(7) The election is irrevocable.
(b) An individual who fails to make an election or whose attempt to elect does not fully comply with all conditions listed in subsection (a-1) shall become a member of the fund effective as of the first date for which a contribution under the fund is made for the replacement class of position.
(c) If a group I member terminates employment with the city after vesting, takes a refund of contributions, and then returns to service with the city after July 1, 2011, then the group I member will be treated as if he or she was hired after July 1, 2011, even if the member purchases permissive service credits pursuant to § 2.5-4.
(d) If a group I member terminates employment with the city after vesting, does not take a refund of contributions, and then returns to service with the city after July 1, 2011, then the group I member will be treated as if he or she was hired prior to July 1, 2011.
(e) If a group I member terminates employment with the city prior to vesting, and then returns to service with the city after July 1, 2011, then the group I member will be treated as if he or she was hired after July 1, 2011, even if he or she purchases permissive service credits pursuant to § 2.5-4, or failed to take a refund of contributions.
(f) For pension purposes, if a group III member terminates employment with the city after vesting, takes a refund of contributions, and then returns to service with the city after January 1, 2013, then the group III member will be treated as if the group III member was hired after January 1, 2013, even if the group III member purchases permissive service credits pursuant to § 2.5-4.
(g) For pension purposes, if a group III member terminates employment with the city after vesting, does not take a refund of contributions, and then returns to service with the city after January 1, 2013, then the group III member will be treated as if the group III member was hired prior to January 1, 2013.
(h) For pension purposes, if a group III member terminates employment with the city prior to vesting, and then returns to service with the city after January 1, 2013, the group III member will be treated as if the group III member was hired after January 1, 2013, even if the group III member purchases permissive service credits pursuant to § 2.5-4, or failed to take a refund of contributions.
(i) For pension purposes, if a group V firefighter terminates employment with the city after vesting, takes a refund of contributions, and then returns to service with the city after January 10, 2015, then the group V firefighter will be treated as if the group V firefighter was hired after January 10, 2015, even if the group V firefighter purchases permissive service credits pursuant to § 2.5-4.
(j) For pension purposes, if a group V firefighter terminates employment with the city after vesting, does not take a refund of contributions, and then returns to service with the city after January 10, 2015, then the group V firefighter will be treated as if the group V firefighter was hired prior to January 10, 2015.
(k) For pension purposes, if a group V firefighter terminates employment with the city prior to vesting, and then returns to service with the city after January 10, 2015, the group V firefighter will be treated as if the group V firefighter was hired after January 10, 2015, even if the group V firefighter purchases permissive service credits pursuant to § 2.5-4, or failed to take a refund of contributions.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 21510-10-2014, § 1, passed 10-21-2014; Ord. 25225-12-2021, § 1, passed 12-14-2021, eff. 1-1-2022)
(a) Member contributions.
(1) Effective with the August 9, 2019 paycheck, and continuing until the date of actual retirement or earlier termination of employment, group I general members shall contribute to the fund 9.35% of their earnings. Additionally, effective with the August 9, 2019 paycheck, each individual group I general member shall contribute to the fund an additional 0.7% of earnings until the earliest of the following: 1) the member retires; 2) the member terminates employment; or 3) the member has made additional 0.7% contributions for a period of time that is equal to the amount of credited service the member earned or purchased prior to October 1, 2013.
(2) Effective with the August 9, 2019 paycheck and continuing until the date of actual retirement or earlier termination of employment, group II general members shall contribute to the fund 9.35% of their earnings.
(3) Effective with the August 9, 2019 paycheck, group III and group IV police members shall contribute 10.53% of their earnings to the fund; effective with the first paycheck on or after January 1, 2020, group III and group IV police members shall contribute 12.53% of their earnings to the fund; effective with the first paycheck on or after January 1, 2021 and continuing until date of actual retirement or earlier termination of employment, group III and group IV police members shall contribute 13.13% of their earnings to the fund.
(4) Effective with the August 9, 2019 paycheck, group V firefighters and group VI firefighters shall contribute 10.05% of their earnings to the fund; effective with the first paycheck on or after January 1, 2020 and continuing until date of actual retirement or earlier termination of employment, group V and group VI firefighters shall contribute 12.05% of their earnings to the fund.
(5) If, following a member's involuntary termination of employment, the city is required, as the direct result of an appeal or suit arising from the involuntary termination, to reinstate the member's employment, the member shall make the contribution described in this section on any payment made by the city to the member as back pay, less interim earnings, if any, with the city empowered to make such payment on the employee's behalf in accordance with § 2.5-3(b)(2).
(6) Contributions by members reinstated following a military leave of absence are governed by the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. §§ 4301-33, as provided for in § 2.5-4(a)(4) of this division. These contributions shall be made even if doing so would reduce a member's net cash compensation below the minimum wage rate as prescribed by law.
(7) By accepting employment with the city, each member shall be deemed to consent and agree to deductions made from the member's compensation, and payments to all such members of compensation, less the deduction, shall constitute a full and complete discharge of all claims and demands whatsoever for services rendered by such member during the period covered by such payment, except as to the benefits provided by the fund.
(8) The contributions of all members may be raised at any time from the amount stated in this section to a higher amount in accordance with the procedures provided by Tex. Revised Civil Statutes Article 6243i.
(9) Both group V and group VI firefighters will make contributions to the fund on built-in overtime.
(10) For all pay periods beginning on or after July 20, 2019, all members in all groups will contribute to the fund on all overtime.
(b) City contributions.
(1) For group III and group IV police members only, effective with the January 11, 2019 paycheck and with each paycheck thereafter, the city shall contribute to the fund 24.96% of their earnings. For all other members, effective with the January 11, 2019 paycheck and with each paycheck thereafter, the city shall contribute to the fund 24.24% of their earnings. Notwithstanding the foregoing, city contributions to the fund shall be reduced for each fiscal year by the amount of benefits paid by the city, if any, under the supplemental retirement ordinance. Subsection (a) shall not limit the right of the governing body, through its budget appropriation, to contribute an additional amount over and above the member's contribution in accordance with Tex. Revised Civil Statutes Article 6243i, as amended.
(2) If, following a member's involuntary termination of employment, the city is required, as the direct result of an appeal or suit arising from the involuntary termination, to reinstate the member's employment, the city shall make the contribution described in this section on any payment by the city to the member as back pay, without reduction for the member's interim earnings, if any. In addition, the city shall, on behalf of the member, make the member's contribution described in this § 2.5-3 on any interim earnings deducted from the back-pay award. Contributions made by the city on behalf of members whose employment is reinstated following a military leave of absence are governed by the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. §§ 4301-33, as provided for in subsection (a)(6) above.
(3) Effective for pay periods ending after April 1, 1999, the required member contributions described in subsection (a) above and subsection (c) below shall be picked up by the city and shall be treated as city contributions for federal income tax purposes. Such contributions, although designated as member contributions, shall be paid by the city on behalf of the members and in lieu of contributions by the members. The members shall not have the option of receiving such contributions directly instead of having such amounts paid by the city to the fund.
(4) Retirement contributions made on behalf of the members, as well as the city's contributions to the fund, shall be paid by the city based on weekly workers' compensation benefits (currently referred to as a temporary income benefits) paid to those members, beginning for such amounts received by members on or after January 1, 2006.
(5) Although overtime will not be included in the definition of earnings for group I general members and group III police members effective October 1, 2013, the city will continue to contribute its contribution on overtime for all group I general members and group III police members.
(6) Although overtime that is not built-in overtime will not be included in the definition of earnings for group V firefighters effective January 10, 2015, the city will continue to contribute its contribution on all overtime for all group V firefighters, and on built-in overtime for all group VI firefighters.
(c) Automatic contribution increases/ decreases.
(1) In addition to any and all member contributions under § 2.5-4(a) and any and all city contributions under § 2.5-4(b), if the combined city and member contributions based on then-existing contribution rates are less than the actuarially determined contribution amount (ADC) for two consecutive years based on a closed 30-year funding of the unfunded liabilities and a discount rate that is consistent with the average of rates reported by two independent sources that are agreed to by the city and the fund, both members and the city shall automatically be required to make further contributions, defined herein as "additional increases," as more specifically governed by this subsection (c). Additional increases due from members shall be referred to as "additional member contribution increases," and amounts due from the city shall be referred to as "additional city contribution increases." Changes to additional increases will only be applied beginning with the first paycheck of a given calendar year and will not be applied to any paychecks received prior to January 1, 2022.
(2) The amount of an additional increase applied in any given year will equal the difference between the ADC from the fund's most recent actuarial valuation and the then-current combined city and member contributions. Any additional increase shall be shared by both the members and the city, with the additional city contribution increase equaling one and one-half times that of the additional member contribution increase. In addition, the following caps shall apply:
a. Annual caps. The additional member contribution increase applied in any given calendar year may not exceed 0.8% of earnings over the member contribution rates that were applied in the previous calendar year. Accordingly, the additional city contribution increase applied in any given calendar year may not exceed 1.2% of earnings over the member contribution rates that were applied in the previous calendar year.
b. Aggregate caps. The additional member contribution increase applied in any given calendar year may never exceed 1.6% of earnings over the member contribution rates specified in § 2-5(a) for the same calendar year. Accordingly, the additional city contribution increase applied in any given calendar year may never exceed 2.4% of earnings over the city contribution rates specified in § 2-5(b) for the same calendar year.
(3) If two consecutive valuations by the fund's actuary indicate that some or all of the additional increase is no longer required to meet the ADC, then the additional increase may be unilaterally reduced by city council by that actuarially determined unrequired percentage, with the amount of such reduction to be allocated 40% to member contributions and 60% to city contributions, so that, for example, if it is determined that the total additional increase needed to meet the ADC can be decreased by 1%, then the additional member contribution increase would be decreased by 0.4% and the additional city contribution increase would be decreased by 0.6%.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 21510-10-2014, § 1, passed 10-21-2014; Ord. 23516-12-2018, § 2, passed 12-11-2018)
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