(a) Compensation base for determining group I member benefits for credited service earned or purchased prior to October 1, 2013.
(1) For group I members hired and vested prior to October 23, 2007 (not subject to the 12% cap), pension, death benefits, disability pension and vested termination benefits shall be based upon the group I member’s compensation base which shall mean the average annual earnings, as defined by § 2.5-41(a) which were paid to the group I member by the city for employment with the city during any three calendar years in which he or she had the highest annual earnings. If a group I 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 I members who were hired prior to July 1, 2011, but not vested by October 23, 2007 (subject to the 12% cap), pension, death benefits, disability pension and vested termination benefits shall be based upon the group I member’s compensation base which shall mean the average annual earnings, as defined by § 2.5-41(a) which were paid to the group I member by the city for employment with the city during any three calendar years in which he or she had the highest annual earnings, subject to the following limitations.
a. The fund shall determine the four calendar years in which the group I member had the highest annual earnings. Of such four years, the year in which the group I 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 I 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 I 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 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 I 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 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 I member’s compensation base.
(b) Compensation base for determining group I member benefits for credited service earned or purchased on or after October 1, 2013. For group I members, credited service earned or purchased on or after October 1, 2013 shall be based upon average annual earnings, as defined by § 2.5-41(b) which were paid to the group I member by the city for employment with the city during any five calendar years in which the group I 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 I member has less than five (or if applicable, three) calendar years of employment. If a group I member has less than five (or if applicable, three) calendar years of employment, the group I 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 I 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 group I member from the city for services rendered.
(e) Compensation base. For purposes of computing the compensation base for a group I member who has made an effective DROP election, the group I member’s compensation base shall be calculated using the group I member’s earnings prior to the effective date of the DROP election.
(Ord. 20471-10-2012, § 2, passed 10-23-2012)