(a) For a group II member, pension, death, disability and vested termination benefits shall be based upon the group II member’s compensation base which shall mean the average annual earnings, excluding overtime, which were paid to the group II member by the city for employment with the city during any five calendar years in which he or she had the highest annual earnings (excluding overtime).
(b) If a group II member has less than five calendar years of employment, the group II member’s compensation base shall be determined by the executive director under uniform, non-discriminatory procedures that are consistently applied.
(c) For compensation base purposes, any lump sum payments of earnings for any prior time period, whether awarded to the group II 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 II member from the city for services rendered. For purposes of computing the compensation base for a group II member who has made an effective DROP election, the group II member’s compensation base shall be calculated using the group II member’s earnings (excluding overtime) prior to the effective date of the DROP election.
(d) For the time period from July 1, 2011, through September 30, 2013, both city contributions and group II member contributions “picked up” by the city on overtime will be placed in a cash balance account for each group II member to be administered by the fund. A group II member will be eligible to receive the proceeds in the cash balance account plus regular interest upon termination of employment from the city. However, a group II member who retires from the city under a normal retirement, special retirement, disability retirement or early retirement is entitled to receive a dollar-for-dollar match of the proceeds in the cash balance account plus a dollar-for-dollar match of the regular interest on the proceeds in the cash balance account upon retirement. A group II member who retires from the city under a vested termination retirement is entitled to receive a dollar-for-dollar match of the proceeds in the group II member’s cash balance account, and a dollar-for-dollar match of the regular interest on the cash balance up until the date of the group II member’s termination of employment with the city. However, the group II member is not entitled to any interest on the cash balance account after the date of the group II member’s termination of employment with the city. An eligible surviving widow or widower, dependent child or children, or dependent parent or parents of a group II member who dies prior to retirement would also be entitled to receive a dollar-for-dollar match of the proceeds in the cash balance account plus a dollar-for-dollar match of the regular interest on the proceeds in the cash balance account.
(e) Overtime is not included in the definition of earnings for credited service earned or purchased on or after October 1, 2013.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 22977-10-2017, § 1, passed 10-24-2017)