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This division applies only to group III members as defined by § 2.5-1.
(Ord. 20471-10-2012, § 2, passed 10-23-2012)
(a) (1) For credited service earned prior to October 1, 2013, earnings shall mean the amount actually paid to a group III member by the city for services rendered to the city during the calendar year, plus overtime, acting, assignment, holiday, longevity, educational incentive, safety award, incentive and shift differential pay, as reported on the group III member’s W-2 form. Earnings shall also include weekly workers’ compensation benefits (currently referred to as temporary income benefits), beginning for such amounts received by group III members on or after January 1, 2006, so long as required by law. Regardless of the fact that the following payments may be shown on a group III member’s W-2 form, earnings shall not include:
a. Any non-salary allowance (such as uniform reimbursement, automobile allowance or mileage, etc.);
b. Lump sum payments received at time of termination for unused vacation leave, sick leave and personal leave;
c. Any award by a court, administrative body or settlement agreement in excess of earnings; and
d. Any amount paid to a group III member for which the city does not contribute to the fund under § 2.5-3(b).
(2) A group III member participating in a city-sponsored deferred compensation plan shall have the amount of any deferred compensation credited to that group III member during the calendar year added to earnings reported on the group III member’s W-2 form to arrive at total earnings for fund matters. Mandatory group III member contributions that are picked-up by the city and excluded from a group III member’s W-2 form shall also be included as part of earnings. Notwithstanding the foregoing, earnings in excess of $200,000, if any (or such other amounts as may be determined by taking into account the cost of living adjustment provided under § 401(a)(17) of the code) shall be disregarded for all purposes of this definition of earnings. Notwithstanding the preceding provisions of this definition of earnings, earnings shall not include any amounts paid following a group III member’s effective DROP election.
(b) (1) For credited service earned on or after October 1, 2013, earnings shall mean the amount actually paid to a group III member by the city for services rendered to the city during the calendar year, plus acting, assignment, holiday, longevity, educational incentive, safety award, incentive and shift differential pay, as reported on the group III member’s W-2 form. Earnings shall also include weekly workers’ compensation benefits (currently referred to as temporary income benefits), beginning for such amounts received by group III members on or after January 1, 2006, so long as required by law. earnings shall not include any amount received as a result of overtime. Regardless of the fact that the following payments may be shown on a group III member’s W-2 form, earnings shall not include:
a. Any non-salary allowance (such as uniform reimbursement, automobile allowance or mileage, etc.);
b. Lump sum payments received at time of termination for unused vacation leave, sick leave and personal leave;
c. Any award by a court, administrative body or settlement agreement in excess of earnings; and
d. Any amount paid to a group III member for which the city does not contribute to the fund under § 2.5-3(b).
(2) A group III member participating in a city-sponsored deferred compensation plan shall have the amount of any deferred compensation credited to that group III member during the calendar year added to earnings reported on the group III member’s W-2 form to arrive at total earnings for fund matters. Mandatory group III member contributions that are picked-up by the city and excluded from a group III member’s W-2 form shall also be included as part of earnings. Notwithstanding the foregoing, earnings in excess of $200,000, if any (or such other amounts as may be determined by taking into account the cost of living adjustment provided under § 401(a)(17) of the code) shall be disregarded for all purposes of this definition of earnings. Notwithstanding the preceding provisions of this definition of earnings, earnings shall not include any amounts paid following a group III member’s effective DROP election.
(Ord. 20471-10-2012, § 2, passed 10-23-2012)
(a) Normal retirement date. A group III member shall be eligible for pension benefits on or after the group III member’s normal retirement date which shall be the last day of the month in which the earliest of the following occurs:
(1) The group III member’s years of age and years of credited service total 80; or
(2) The later of:
a. The date on which the group III member reaches age 65; or
b. The fifth anniversary of the date the group III member joined the fund.
(3) The last day of the month in which such group III member’s years of credited service total 25.
(b) Vested terminated retirement date. A vested group III member who is voluntarily or involuntarily separated from the service of the city shall be eligible for pension benefits on or after such group III member’s vested termination date which shall be the last day of the month in which the group III member reaches age 50, or, if earlier, the last day of the month in which the group III member would have attained his or her normal retirement date had the group III member remained employed by the city.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 23516-12-2018, § 1, passed 12-11-2018)
(a) Compensation base for determining group III member benefits for credited service earned or purchased prior to October 1, 2013.
(1) For group III members hired and vested prior to October 23, 2007 (not subject to the 12% earnings cap), pension, death benefits, disability pension and vested termination benefits for credited service earned or purchased prior to October 1, 2013, shall be based upon the group III member’s compensation base which shall mean the average annual earnings as defined by § 2.5-21(a) which were paid to the group III member by the city for employment with the city during any three calendar years in which the group III member had the highest annual earnings. If a group III member’s last day of employment with the city is prior to January 1, 1999, “five” shall be substituted for “three” in the preceding sentence.
(2) For group III members who were not vested by October 23, 2007, and for group III members hired after October 23, 2007, but prior to January 1, 2013 (subject to the 12% earnings cap), pension, death benefits, disability pension and vested termination benefits for credited service earned or purchased prior to October 1, 2013, shall be based upon the group III member’s compensation base which shall mean the average annual earnings, as defined by § 2.5-21(a) which were paid to the group III member by the city for employment with the city during any three calendar years in which the group III member had the highest annual earnings, subject to the following limitations.
a. The fund shall determine the four calendar years in which the group III member had the highest annual earnings. Of such four years, the year in which the group III member had the lowest annual earnings shall serve as the base year. The base year shall not be included as one of the three calendar years for purposes of the compensation base calculation.
b. The first annual earnings to be used in the calculation of the group III member’s compensation base shall be the actual annual earnings from the calendar year with the third highest annual earnings of the four calendar years identified in subsection (a)(2)a. above, provided that if such annual earnings are from a calendar year beginning on or after January 1, 2008, the amount to be used in the calculation of the compensation base for the first year shall not exceed 112% of the annual earnings for the base year.
c. The second annual earnings to be used in the calculation of the group III member’s compensation base shall be the actual annual earnings from the calendar year with the second highest annual earnings of the four calendar years identified in subsection (a)(2)a. above, provided that if such annual earnings are from a calendar year beginning on or after January 1, 2008, the amount to be used in the calculation of the compensation base for the second year shall not exceed 112% of the annual earnings used that are attributable to the year described in subsection (a)(2)b. above.
d. The third annual earnings to be used in the calculation of the group III member’s compensation base shall be the actual annual earnings from the calendar year with the highest annual earnings of the four calendar years identified in subsection (a)(2)a. above, provided that if such annual earnings are from a calendar year beginning on or after January 1, 2008, the amount to be used in the calculation of the compensation base for the third year shall not exceed 112% of the annual earnings used that are attributable to the year described in subsection (a)(2)c. above.
e. The average of the three amounts determined in accordance with subsections (a)(2)a. through (a)(2)d. above will be the average annual earnings for purposes of the group III member’s compensation base.
(b) Compensation base for determining benefits for credited service earned or purchased, on or after October 1, 2013. Pension, death benefits, disability pension and vested termination benefits for credited service earned or purchased from October 1, 2013 to the date of termination shall be based upon the group III member’s average annual earnings as defined by § 2.5-21(b), which were paid to the group III member by the city for employment with the city during any five calendar years in which the group III member had the highest annual earnings. The compensation base for credited service earned or purchased on or after October 1, 2013, does not include overtime.
(c) If a group III member has less than three, or if applicable, five calendar years of employment. If a group III member has less than three, or if applicable, five calendar years of employment, the group III member’s compensation base shall be determined by the executive director under uniform, non- discriminatory procedures that are consistently applied.
(d) Lump sum payments. For compensation base purposes, any lump sum payments of earnings for any prior time period, whether awarded to the group III member by a court, administrative body or settlement agreement, shall be retroactively attributed to the calendar year in which it would otherwise have been received by the employee from the city for services rendered.
(e) DROP election. For purposes of computing the compensation base for a group III member who has made an effective DROP election, the group III member’s compensation base shall be calculated using the group III member’s earnings prior to the effective date of the DROP election.
(Ord. 20471-10-2012, § 2, passed 10-23-2012)
(a) Contribution refund prior to vesting. Any group III member who is voluntarily or involuntarily separated from the service of the city before the group III member is vested shall be entitled to receive the amount of the group III member’s contributions plus regular interest less any amount previously paid to the group III member from the fund.
(b) Vested termination pension.
(1) a. A vested group III member who is voluntarily or involuntarily separated from the service of the city shall be entitled to receive a vested termination pension payable:
1. In full, pursuant to § 2.5-22(b); or
2. In a reduced amount commencing on or after age 50.
b. A group III member must file a request for the commencement of the vested termination pension by completing such forms and following such procedures as are established by the board. A vested termination pension shall be payable monthly on the first day of each month commencing with the month following approval of the group III member’s vested termination pension by the board.
(2) A vested termination pension shall be an annual life pension, the amount of which shall be the specified percentage of the group III member’s compensation base multiplied by the group III member’s total years of credited service to date of such voluntary or involuntary separation from the service of the city. For purposes of the preceding sentence, the specified percentage of the group III member’s compensation base shall be 2.75% for all credited service earned or purchased prior to October 1, 2013, and 2.25% for credited service earned or purchased on or after October 1, 2013, unless the group III member has attained his or her normal retirement date or vested retirement date prior to the date the group III member’s pension payments begin, in which case the specified percentage shall be 3% for all credited service earned or purchased prior to October 1, 2013 and shall be 2.5% for all credited service earned or purchased on or after October 1, 2013. A vested termination pension shall be calculated using the specified percentage and compensation base in effect at the time the group III member earned or purchased the credited service for all credited service earned or purchased after October 1, 2013.
(3) In addition to the reduced multiplier described in subsection (b)(2) above, if a group III member has not attained his or her normal retirement date or vested retirement date prior to the date the group III member’s vested termination pension payments begins, the amount of reduction for commencement of a pension prior to the group III member’s normal retirement date or vested retirement date shall be 0.416666667% for each month by which commencement of the pension antedates the group III member’s normal retirement date had the group III member remained employed by the city.
(c) Contribution refund after vesting in lieu of vested termination pension. Any vested group III member who is voluntarily or involuntarily separated from the service of the city may elect to receive a refund of the group III member’s contributions, plus regular interest less any amount previously paid to the group III member from the fund, either at the date of such separation or at any time thereafter prior to commencement of retirement benefit, but by so doing, the group III member shall forfeit all rights under the fund and thereafter be entitled to no further benefits hereunder.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 22977-10-2017, § 1, passed 10-24-2017)
(a) Pensions commencing prior to October 1, 2013.
(1) Standard pension benefit A. A vested group III member who retires on or after the group III member’s normal retirement date and who requests commencement of the group III member’s pension prior to October 1, 2013, or a group III member who terminates employment prior to October 1, 2013, and prior to the group III member’s normal retirement date and who waits until such vested retirement date to apply for a pension, shall receive an annual life pension, the amount of which shall be 3% of the group III member’s applicable compensation base as defined by § 2.5-23(a)(1) or (a)(2), whichever is applicable, multiplied by the group III member’s total years of credited service, payable monthly on the first day of each month commencing with the month following the board’s approval of the group III member’s pension. This retirement pension shall be defined as the “group III member’s standard pension benefit A.”
(2) Alternative pension benefit. In lieu of the group III member standard pension benefit A, a group III member under this subsection (a) may irrevocably elect with his or her spouse’s consent (where applicable), in advance of his or her retirement and pursuant to regulations and requirements the board in its discretion may adopt, to receive an “alternative pension benefit” which shall be actuarially equivalent to the group III member’s standard pension benefit A and which shall be payable in two parts:
a. One part in a lump sum amount not less than 5% nor greater than 25% of the actuarial equivalent of the group III member’s pre-October 1, 2013 standard pension benefit A, which lump sum shall be payable on the date benefits commence under subsection (a)(2)b. below; and
b. The remainder in an annual life pension, payable monthly on the first day of each month commencing with the month following the board’s approval of the group III member’s alternative pension benefit.
(3) Limitation on alternative pension benefit. Notwithstanding any other provision in this division to the contrary, the option to elect an alternative pension benefit shall not be available for any disability pension under § 2.5-26, death benefit under § 2.5-27, or normal vested termination pension under § 2.5-24, nor shall it be available to any group III member who is receiving pension benefits as of the effective date of the alternative pension benefit provisions of this section, nor shall it be available upon re-retirement to any retired group III member who becomes re-employed by the city.
(b) Pensions commencing on or after October 1, 2013.
(1) Pensions commencing upon normal retirement date or vested retirement date for group iii members hired and vested prior to October 23, 2007, whose pensions commences on or after October 1, 2013 (not subject to the 12% earnings cap). A vested group III member hired and vested prior to October 23, 2007, who retires on or after the group III member’s normal retirement date and requests commencement of the group III member’s pension on or after October 1, 2013, or a group III member who terminates employment on or after October 1, 2013, and prior to the group III member’s normal retirement date and who waits until such vested retirement date to apply for a pension, shall receive an annual life pension, the amount of which is calculated by adding the following:
a. Three percent of the group III member’s compensation base as defined by § 2.5-23(a)(1) multiplied by the group III member’s years of credited service from date of hire until September 30, 2013; and
b. Two and fifty one-hundredths percent of the group III member’s compensation base as defined by § 2.5-23(b) multiplied by the group III member’s years of credited service from October 1, 2013, until date of termination.
(2) Pensions commencing upon normal retirement date for group III members hired prior January 1,2013 and not vested by October 23, 2007 (subject to the earnings cap). A group III member hired prior to January 1, 2013, who was not vested by October 23, 2007 who retires on or after the group III member’s normal retirement date and requests commencement of the group III member’s pension, and whose pension commences on or after October 1, 2013, or who terminates employment on or after October 1, 2013, but prior to the group III member’s normal retirement date and who waits until such vested retirement date to apply for a pension, shall receive an annual life pension, the amount of which is calculated by adding the following:
a. Three percent of the group III member’s compensation base as defined by § 2.5-23(a)(2) multiplied by the group III member’s years of credited service from date of hire until September 30, 2013; and
b. Two and fifty one-hundredths percent of the group III member’s compensation base as defined by § 2.5-23(b) multiplied by the group III member’s years of credited service from October 1, 2013 until date of termination.
(3) Payable. The pension should be payable monthly on the first day of each month commencing with the month following the board’s approval of the group III member’s pension benefit. This retirement pension shall be defined as the “group III member standard pension benefit B.”
(c) Alternative pension benefit. In lieu of the group III member standard pension benefit A or B, a group III member may irrevocably elect with his or her spouse’s consent (where applicable), in advance of his or her retirement and pursuant to regulations and requirements the board in its discretion may adopt, to receive an “alternative pension benefit” which shall be actuarially equivalent to the group III member’s standard pension benefit A or B and which shall be payable in two parts:
(1) One part in a lump sum amount not less than 5% nor greater than 25% of the actuarial equivalent of the group III member’s standard pension benefit A or B, which lump sum shall be payable on the date benefits commence under subsection (c)(2) below; and
(2) The remainder in an annual life pension, payable monthly on the first day of each month commencing with the month following the board’s approval of the group III member’s pension.
(d) Limitation on alternative pension benefit. Notwithstanding any other provision in this division to the contrary, the option to elect an alternative pension benefit shall not be available for any disability benefits under § 2.5-26, death benefits under § 2.5-27, or vested termination pension under § 2.5-24, nor shall it be available to any group III member who is receiving pension benefits hereunder as of the effective date of the alternative pension benefit provisions of this section, nor shall it be available upon re-retirement to any retired group III member who becomes re-employed by the city.
(Ord. 20471-10-2012, § 2, passed 10-23-2012)
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