(A) Normal retirement date. For Group One restored members and Group Two restored members, a member may retire at the normal retirement date of age 50 or upon completion of 22 years of continuous service. For Group Three members, a member may retire at the normal retirement date of age 55 with ten years of continuous service or upon completion of 22 years of continuous service.
(B) Normal retirement benefit.
(1) Amount.
(a) Group One restored members. Effective February 20, 2019, the following pension benefits in effect on September 30, 2011 will be restored to Group One restored members as specifically provided in the following divisions.
1. A 3% multiplier for the first 20 years of continuous service, a 4% multiplier for the twenty-first year of continuous service, and upon completion of 22 years of continuous service, an accrued benefit of 80% of average final compensation.
2. Group One restored members employed on February 20, 2019 who did not participate in the deferred retirement option plan ("DROP" plan) shall receive a 2% annual increase in benefits commencing three years after the date retirement benefits begin. Group One restored members employed on February 20, 2019 who participated in the DROP plan shall receive a 2% annual increase in benefits commencing upon the later of (i) separation of employment and (ii) three years after the member entered the DROP plan.
3. Only those Group One restored members employed on February 20, 2019 and participating in either the DROP plan or the reformed planned retirement benefit on February 20, 2019 shall be eligible for the supplemental pension distribution under § 33.136(N) below.
4. A maximum normal retirement benefit of 80% of average final compensation.
5. Eligibility to participate in the DROP plan, with the Group One restored member to select an entry date on or after the day the member attained (or attains) age 50 or completed (or completes) 22 years of continuous service, subject to the existing limitation of 30 years of service with the city. Any member who attained age 50 or completed 22 years of continuous service before February 20, 2019 and who was not already participating in the reformed planned retirement benefit before February 20, 2019, who wants to participate retroactively in the DROP plan, must submit his/her irrevocable written election/decision within 60 days after February 20, 2019 to participate retroactively in the DROP plan starting on or after the date the member attained age 50 or 22 years of continuous service. Any member who attained age 50 or completed 22 years of continuous service before February 20, 2019 and who was already participating in the reformed planned retirement before February 20, 2019 and who wants to change from the reformed planned retirement benefit to the DROP plan must submit his/her irrevocable written election/decision within 60 days after February 20, 2019 to change retroactively his/her participation to the DROP plan starting on or after the date the member attained age 50 or 22 years of continuous service. No member shall receive any benefits from both the DROP and the reformed planned retirement benefit.
6. Group One restored members with ten or more years of continuous service shall be eligible to receive a vested benefit commencing upon attainment of age 50.
(b) Group Two restored members. Effective October 1, 2020, the following pension benefits in effect on September 30, 2011 will be restored to Group Two restored members as specifically provided in the following divisions.
1. A 3% multiplier for the first 20 years of continuous service, a 4% multiplier for the twenty-first year of continuous service, and upon completion of 22 years of continuous service, an accrued benefit of 80% of average final compensation.
2. Group Two restored members employed on February 20, 2019 who do not participate in the DROP plan shall receive a 2% annual increase in benefits commencing three years after the date retirement benefits begin. Group Two restored members employed on February 20, 2019 who participate in the DROP plan shall receive a 2% annual increase in benefits commencing upon the later of (i) separation of employment and (ii) three years after the member entered the DROP plan.
3. A maximum normal retirement benefit of 80% of average final compensation.
4. Eligibility to participate in the DROP plan, with the Group Two restored member to select an entry date on or after the day the member attained or attains age 50 or completed or completes 22 years of continuous service, subject to the existing limitation of 30 years of service with the city. Upon reaching a normal retirement date, a Group Two member may elect to participate in the reformed planned retirement benefit as an alternative to choosing DROP plan participation, but cannot participate in both. The member's decision shall be irrevocable.
5. Group Two restored members with ten or more years of continuous service shall be eligible to receive a vested benefit commencing upon attainment of age 50.
(c) Group Three members. Effective October 1, 2022, the following pension benefits will apply to Group Three members as specifically provided in the following divisions.
1. Maintain the 3% multiplier for the first 21 years of continuous service, but allow Group Three members to retire upon completion of 22 years of creditable service at an accrued benefit of 75% of their average final compensation.
2. Group Three restored members employed who do not participate in the DROP plan shall receive a 2.5% annual increase in benefits commencing three years after the date retirement benefits begin and continuing every other year thereafter. Group Three restored members who participate in the DROP plan shall receive a 2.5% annual increase in benefits commencing upon the later of (i) separation of employment and (ii) three years after the member entered the DROP plan and continuing every other year thereafter.
3. A maximum normal retirement benefit of 75% of average final compensation.
4. Increase the maximum participation period for Group Three members in the reformed planned retirement benefit from five years to eight years at any time upon attainment of normal retirement date as defined in division (A), subject to the other existing limitation of 30 years of service with the city.
5. Eligibility to participate in the DROP plan, with the Group Three restored member to select an entry date on or after the day the member attained or attains age 55 with 10 years of service or completed or completes 22 years of continuous service, subject to the existing limitation of 30 years of service with the city. Upon reaching a normal retirement date, a Group Three member may elect to participate in the reformed planned retirement benefit as an alternative to choosing DROP plan participation, but cannot participate in both. The member's decision shall be irrevocable.
(d) Earnings in the DROP plan account of all members hired on or before September 30, 2011 shall be one of the following options: (1) the variable rate of return, which for any month shall be the actual net rate of investment gain or investment loss on the retirement system's assets for the month, determined as of the last day of the month, reduced in the event of a net investment gain or increased in the event of a net investment loss by an administrative fee determined by the Board; or (2) 6% per year, minus administrative costs; provided, however, if plan earnings exceed 6% per year, earnings in excess of 6% per year and not in excess of 12% per year shall offset the city's cost of maintaining the DROP plan program, and plan earnings in excess of 12% per year shall be equally divided between the DROP participant and the city.
(e) Increase the employee contribution rate for all Group One restored members, Group Two restored members, and Group Three members to 9.5%, effective with the first full pay period that starts on or after February 20, 2019. Upon entry into the DROP plan, Group One restored members and Group Two restored members shall cease making employee contributions. Upon entry into the reformed planned retirement benefit, Group Three members shall contribute either the employee's contribution rate as provided elsewhere in this subchapter or 0.5% of the member's earnings until termination of employment.
(f) Allow in-service distributions to retired police officers who are rehired on a part-time basis, as permitted by the Internal Revenue Code and Treasury Regulations. In such event, the re-hired part-time police officer will not earn additional service credit in the plan but will continue to be paid the member's normal retirement benefit.
(g) Anything to the contrary herein notwithstanding, a member's accrual rate shall not be less than 2% per year of continuous service.
(2) Duration, survivor, benefits. A member retiring hereunder on the member’s normal retirement date shall receive a monthly benefit which shall commence with the member’s normal retirement date and be continued thereafter during the member’s lifetime as follows:
(a) Member is unmarried at time of retirement. If the member is not married on the member's retirement date and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the beneficiary (or beneficiaries) as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(b) Member is married at time of retirement and member's spouse is sole beneficiary.
1. If the member is married on the member's retirement date, the member's spouse is the sole beneficiary, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the members spouse, if alive, or to the member's estate. If the member's spouse is alive and unmarried after receipt of the 120th payment, then the monthly payment to the member's spouse shall be reduced by 50% until the earlier of either the spouse's death or remarriage.
2. If the member is married on the member's retirement date, the member's spouse is the sole beneficiary, and the member dies after receiving 120 payments, then the member's spouse, if alive, shall receive a monthly payment equal to 50% of the member's monthly payment until the earlier of either the spouse's death or remarriage.
(c) Member is married at time of retirement and member's spouse is not a designated beneficiary. If the member is married on the member's retirement date, the member's spouse is not a designated beneficiary, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiary (or beneficiaries) pro-rata as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(d) Member is married at time of retirement and member designates multiple beneficiaries, including member's spouse. If the member is married on the member's retirement date, the member designates multiple beneficiaries, including the member's spouse, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiaries pro-rata as designated by the member, or, if all beneficiaries are deceased or no beneficiaries are designated by the member, to the member's estate.
(e) Surviving spouse eligibility requirements. No surviving spouse of a deceased member shall be eligible for the 50% survivor's benefit provided in divisions (b)1. or (b)2. above unless the deceased member was married to the surviving spouse on the member's retirement date. A surviving spouse who married the member after the member's retirement date shall be eligible for this 50% survivor's benefit only if the member, during his or her retirement, designated said spouse as sole beneficiary pursuant to § 33.127(C).
(C) Disability.
(1) Service-incurred. Effective October 1, 2000, any member who receives a medically substantiated service-connected injury, disease or disability, as determined by the medical board, which injury, disease or disability permanently incapacitates him or her, physically or mentally, from his or her regular and continuous duties as a Police Officer, shall receive a monthly benefit equal to the greater of his or her accrued benefit on the date of disability, based on the applicable benefit rate set forth in subdivision (B)(1) of § 33.128, or 50% of his or her earnings in effect on the date of disability. Such benefit shall commence on the 91st day following the date of disability and shall continue until the earlier of death or recovery from disability. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits.
(a) Member is unmarried at time of disability retirement. If the member is not married on the member's disability retirement date and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the beneficiary (or beneficiaries) as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(b) Member is married at time of disability retirement and member's spouse is sole beneficiary.
1. If the member is married on the member's disability retirement date, the member's spouse is the sole beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the member's spouse, if alive, or to the member's estate. If the member's spouse is alive and unmarried after receipt of the 120th payment, then the monthly payment to the member's spouse shall be reduced by 50% until the earlier of either the spouse's death or remarriage.
2. If the member is married on the member's disability retirement date, the member's spouse is the sole beneficiary, and the member dies after receiving 120 payments, then the member's spouse, if alive, shall receive a monthly payment equal to 50% of the member's monthly payment until the earlier of either the spouse's death or remarriage.
(c) Member is married at time of disability retirement and member's spouse is not a designated beneficiary. If the member is married on the member's disability retirement date, the member's spouse is not a designated beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiary (or beneficiaries) pro-rata as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the member's estate.
(d) Member is married at time of retirement and member designates multiple beneficiaries, including member's spouse. If the member is married on the member's disability retirement date, the member designates multiple beneficiaries, including the member's spouse, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiaries pro-rata as designated by the member, or, if all beneficiaries are deceased or no beneficiaries are designated by the member, to the member's estate.
(e) Surviving spouse eligibility requirements. No surviving spouse of a deceased member shall be eligible for the 50% survivor's benefit provided in divisions (b)1. or (b)2. above unless the deceased member was married to the surviving spouse on the member's disability retirement date. A surviving spouse who married the member after the member's retirement date shall be eligible for this 50% survivor's benefit only if the member, during his or her disability retirement, designated said spouse as sole beneficiary pursuant to § 33.127(C).
(2) Non-service incurred. Effective October 1, 2000, any member with five or more years of continuous service who receives a non-service incurred injury, illness, disease or disability, and which illness, injury, disease or disability permanently incapacitates him or her physically or mentally from his or her regular and continuous duty as a Police Officer, shall receive from the fund in equal monthly installments an amount equal to 2 ½% of his or her average monthly earnings for each year of continuous service. Until normal retirement date, death or recovery from disability, whichever shall first occur, the amount of such monthly disability benefit shall in no event be less than 25% of the member's earnings in effect on date of disability. Commencing with normal retirement date, the benefit shall be computed as a normal retirement benefit, except that continuous service shall include all years and completed months during the disability period. The benefit shall commence on the 91st day following the date of disability.
(a) Member is unmarried at time of disability retirement. If the member is not married on the members disability retirement date and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the beneficiary (or beneficiaries) as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the members estate.
(b) Member is married at time of disability retirement and member's spouse is sole beneficiary.
1. If the member is married on the members disability retirement date, the members spouse is the sole beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid either to the members spouse, if alive, or to the members estate. If the members spouse is alive and unmarried after receipt of the 120th payment, then the monthly payment to the members spouse shall be reduced by 50% until the earlier of either the spouse's death or remarriage.
2. If the member is married on the members disability retirement date, the members spouse is the sole beneficiary, and the member dies after receiving 120 payments, then the members spouse, if alive, shall receive a monthly payment equal to 50% of the members monthly payment until the earlier of either the spouse's death or remarriage.
(c) Member is married at time of disability retirement and member's spouse is not a designated beneficiary. If the member is married on the members disability retirement date, the members spouse is not a designated beneficiary, and the member dies after disability retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the members beneficiary (or beneficiaries) pro-rata as designated by the member, or, if all beneficiaries are deceased or if no beneficiaries are designated by the member, to the members estate.
(d) Member is married at time of retirement and member designates multiple beneficiaries, including member's spouse. If the member is married on the members disability retirement date, the member designates multiple beneficiaries, including the members spouse, and the member dies after retirement but prior to receiving 120 payments, then the balance of the 120 payments shall be paid to the member's beneficiaries pro-rata as designated by the member, or, if all beneficiaries are deceased or no beneficiaries are designated by the member, to the member's estate.
(e) Surviving spouse eligibility requirements. No surviving spouse of a deceased member shall be eligible for the 50% survivor's benefit provided in divisions (b)1. or (b)2. above unless the deceased member was married to the surviving spouse on the member's disability retirement date. A surviving spouse who married the member after the member's retirement date shall be eligible for this 50% survivor's benefit only if the member, during his or her disability retirement, designated said spouse as sole beneficiary pursuant to § 33.127(C).
(3) Special eligibility for service incurred disability benefit. Upon the application of a member of the head of his department, any member who is not eligible for a regular normal retirement benefit and who becomes totally and permanently incapacitated for duty as the result of a condition or impairment of health caused by tuberculosis, hypertension, heart disease or hardening of the arteries, which condition is not shown to be the result of any accident or condition of employment so as to qualify under subdivision (1) above, may be retired by the Board, provided the Medical Board, after a medical examination of such member, shall certify that such member is totally incapacitated for further performance of duty, that such incapacity is likely to be permanent and that such member should be retired on a service incurred disability benefit. For the purpose of this subdivision, any condition or impairment of health of any member caused by tuberculosis, hypertension, heart disease, or hardening of the arteries, resulting in total or partial disability or death, shall be presumed to be accidental and suffered in line of duty unless the contrary be shown by competent evidence; and any condition or impairment of health caused directly or proximately by exposure, which exposure occurred in the active performance of duty at some definite time or place without willful negligence on the part of the Police Officer, resulting in total or partial disability, shall be presumed to be accidental and suffered in the line of duty; provided however, that such member shall have successfully passed a physical examination upon entering such service, which physical examination, including electrocardiogram, failed to reveal any evidence of such condition.
(4) Payments prior to approval of service incurred disability benefit. Whenever a member becomes disabled due to an injury or injuries received in the line of duty, he shall receive full pay from the city for a period of 90 days. At the end of the 90 day period, if the member is still incapacitated and unable to perform his normal police duties, the City Commission shall either approve full pay for the disabled member for a second 90 day period, or it may recommend that the Board of Trustees retire such disabled member as a service incurred disability retiree. Such retirement shall in any event be subject to the approval of the Medical Board of this retirement system. Under no circumstances will a member be penalized by the city, by using the member's accumulated sick leave, vacation time or holiday leave, for any line of duty injury or condition.
(5) Medical Board - disability. Whenever it becomes necessary for the Board of Trustees to avail itself of the services of physicians, such as in the case of an application for disability retirement, the Board of Trustees shall designate a Medical Board to be composed of three physicians. The Medical Board shall arrange for and pass upon the medical examinations required under the provisions of this subchapter, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the Board of Trustees its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the Board of Trustees.
(6) Return to active duty from disability retirement. In the event a member who has been retired on a pension on account of permanent and total incapacity regains his health and is found by the Medical Board designated by the Board of Trustees of the system to be in such physical and mental condition as to meet the requirements of the personnel department for service as a Police Officer of the city, the Board shall order his pension discontinued, and he shall be ordered to resume active duty in the city at the same rate of compensation currently in effect for his pay grade. Upon request of the Chief of Police, the Board of Trustees shall review the condition of any member receiving a pension for disability and shall submit to the Chief of Police a report thereon; and if there is substantial evidence that the retired member is capable of performing service acceptable to the city in the Police Department, he shall be ordered to resume active duty and his pension shall be discontinued.
(7) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the Board:
(a) That the disability resulted from the use of narcotics, drugs or alcoholic beverages;
(b) That the disability resulted from a member's participation or involvement in riots, insurrection or unlawful assembly; or
(c) That the disability resulted from a member's participation or involvement in the commission of a crime or unlawful act.
(8) "Light Duty" positions for service-incurred disability. In the event a member receives a service connected injury as defined in § 33.128 which renders him or her incapable of performing all the regular duties of a
sworn Police Officer the city will, based upon availability of a vacancy, assign the officer to a "light duty" position. A LIGHT DUTY position is defined as any position within the Police Department which does not require the member to perform all the duties of a Police Officer. If the city makes available a light- duty position, and a member refuses to perform, said member shall be ineligible for either continued employment or retirement benefits.
(D) Pre-retirement death.
(1) Service-related death. Effective October 1, 2008, if a member who is killed or dies as a direct result of an occurrence arising in the performance of service dies prior to retirement, his or her beneficiary is entitled, until death, to a monthly benefit equal to the greater of the earned benefit or 50% of final average compensation; provided, however, that, if the beneficiary dies before having received such benefit for a period of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period. Benefit payments made pursuant to this provision shall not be retroactive, and shall instead begin on July 4, 2024.
(2) Non-service incurred death within less than ten years of service. A death benefit shall be payable on behalf of any member having less than ten years of continuous service who is killed or dies within five years from causes not related to performance of duty. The benefits shall be payable as follows:
(a) If the member is not married at the time of his or her death, his or her beneficiary is entitled, for a period of ten years, to a monthly benefit equal to 25% of the member's earnings at the time of death; provided, however, that, if the beneficiary dies before having received such benefit for a period of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period.
(b) If the member is not married at the time of his or her death, the member has surviving children, and the member fails to designate a beneficiary, then a monthly benefit equal to 25% of the member's earnings at the time of death shall be paid to the member's surviving children for a period of ten years or until the youngest child reaches the age of 18 years, whichever is later. If the monthly benefit to the surviving children ceases before benefit payments have been made for a total of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period.
(c) If the member is not married at the time of his or her death, the member has no surviving children, and the member fails to designate a beneficiary, then a monthly benefit equal to 25% of the member's earnings at the time of death shall be paid to the member's estate for a period of ten years.
(d) If the member is married at the time of his or her death, his or her spouse is entitled, until the earlier of death or remarriage, to a monthly benefit equal to 25% of the member's earnings at the time of death. Upon remarriage or death of the widow(er), the benefits shall be paid to the member's surviving children until the youngest child reaches the age of 18 years. If the monthly benefit to the widow(er) or surviving children ceases before benefit payments have been made for a total of ten years, the estate of the member is entitled to the same monthly benefit for the balance of such ten-year period.
(3) For the purpose of benefits under this division (D), the date of death of any member shall be established as the end of the calendar month in which such member dies.
(E) Deferred retirement option plan ("DROP" plan). A DROP plan is to be created and administered by the Board of Trustees of the Police Officer's Retirement System at no cost and with no liability to the city. Group One restored members and Group Two restored members who elect to enter the DROP plan shall have the option to receive one of the following:
(1) The variable rate of return, which for any month shall be the actual net rate of investment gain or investment loss on the retirement system's assets for the month, determined as of the last day of the month, reduced in the event of a net investment gain or increased in the event of a net investment loss by an administrative fee determined by the Board; or
(2) Six percent per year, minus administrative costs; provided, however, if plan earnings exceed 6% per year, earnings in excess of 6% per year and not in excess of 12% per year shall offset the city's cost of maintaining the DROP plan program, and plan earnings in excess of 12% per year shall be equally divided between the DROP participant and the city.
The maximum period of participation in the DROP plan for members who enter the DROP plan shall be the lesser of eight years or that period of participation in the DROP plan that would result in a total of 30 years of employment with the city. The city employment of each member who elects to participate in the DROP plan after June 7, 2006, shall terminate not later than the end of his or her maximum period of participation in the DROP plan.
(F) Planned retirement benefit; reformed planned retirement benefit.
(1) There is hereby created a benefit to be known as the planned retirement benefit. The planned retirement benefit, as described below, will be retroactive to October 1, 2011, but any member who retires or enters the DROP prior to July 17, 2013, will not be eligible for this benefit. Effective September 16, 2015, there is hereby created a benefit to be known as the reformed planned retirement benefit.
(2) For Group Three members, in order to be eligible for the planned retirement benefit, a member must submit a written election, on a form created for this purpose, declaring the member's intent to participate in the planned retirement benefit at any time on or after reaching the member's normal retirement date, as defined in § 33.128(A). Effective September 16, 2015, in order to be eligible for the reformed planned retirement benefit, a member must submit a written election, on a form created for this purpose, declaring the member’s intent to participate in the reformed planned retirement benefit at any time on or after reaching the member's normal retirement date, as defined in § 33.128(A). The form will identify the maximum number of years the member may participate in the planned retirement benefit and the member's latest employment termination date based on the maximum number of years identified. The form to participate in the reformed planned retirement benefit will also require the member to make an irrevocable election of one of the following two options:
(a) During the period of participation in the reformed planned retirement benefit, contribution at the member’s contribution rate as established in this subchapter until termination of employment, and upon termination, election of one of the three options regarding how the member wishes to receive the reformed planned retirement benefit earned (identical to the three options that are provided for the planned retirement benefit below); or
(b) During the period of participation in the reformed planned retirement benefit, contribution equal to 0.5% of the member’s earnings until termination of employment, and upon termination, taking of a lump sum that would be valued based on the number of years the member worked after electing to participate in the planned retirement benefit, reformed planned retirement benefit, or combination of both (or the number of years for which the member elects to receive benefits under division (F)(3) below).
(3) A member who elects to participate in the planned retirement benefit or the reformed planned retirement benefit shall not exceed 30 years of service with the city, including any time participating in the planned retirement benefit and/or the reformed planned retirement benefit. A member may terminate employment any time prior to reaching the earlier of the maximum participation period for the planned retirement benefit and/or the reformed planned retirement benefit, as noted below, or 30 years of service with the city. A Group Three member may participate in the planned retirement benefit, the reformed planned retirement benefit, or a combination of both, for a maximum of eight years. A member covered by this division (F)(3) who reaches the member’s normal retirement date but not more than 30 years of service with the city may, upon termination of employment, elect to receive benefits under the planned retirement benefit, the reformed planned retirement benefit, or a combination of both, for a period of not more than eight years.
(4) (a) When a member who has participated in the planned retirement benefit, but has not participated in the reformed planned retirement benefit, terminates employment, the member shall elect how he or she wishes to receive the planned retirement benefit earned. The member may choose to take (i) a maximum lump sum payment that would be valued based on the number of years the member worked after electing to participate in the planned retirement benefit (or the number of years for which the member elects to receive benefits under division (F)(3) above); (ii) a larger final pension annuity payment (meaning a larger annuity than that earned prior to electing to participate in the planned retirement benefit) based on the number of years the member worked after electing to participate in the planned retirement benefit (or the number of years for which the member elects to receive benefits under division (F)(3) above): or (iii) any combination of a lump sum payment and larger annuity by dividing the years worked after electing to participate in the planned retirement benefit (or the number of years for which the member elects to receive benefits under division (F)(3) above) between a lump sum payment and larger annuity payments. Any lump sum payment must be paid out to the member at termination (i.e., it cannot be left in the pension plan).
(b) Upon termination of employment, a member who, at the beginning of his or her period of commencement in the reformed planned retirement benefit, made the irrevocable election to take his or her benefit in a lump sum upon termination will be allowed to leave the lump sum in the pension plan. The pension plan’s actual investment rates of return (whether positive or negative) shall be applied to the lump sum for as long as any portion thereof remains in the pension plan. For as long as any portion of the lump sum remains in the pension plan, the member shall pay a fee, in an amount to be determined by the Board, for the administrative cost of managing the lump sum, or portion thereof, that remains in the plan.
(5) While participating in the planned retirement benefit, a member shall continue making his/her applicable employee contributions, as provided in the pension plan, until termination of employment. While participating in the reformed planned retirement benefit, a member shall make his or her applicable employee contributions, as provided in the pension plan, until termination of employment.
(6) Any member who has reached his or her normal retirement date, and has submitted the written election form to participate in the planned retirement benefit or the reformed planned retirement benefit, shall maintain the right to participate in the planned retirement benefit or the reformed planned retirement benefit up to the date on which the maximum period applicable to the member has been reached or employment has terminated pursuant to the terms of the planned retirement benefit or the reformed planned retirement benefit, as provided in this section, and no amendment to the pension plan may alter this right.
(7) For any member who reached his/her normal retirement date between October 1, 2011, and July 17, 2013, the time such member worked between his/her normal retirement date (on or after October 1, 2011) and the date the member submits the planned retirement benefit election form may be included in the employee's planned retirement benefit participation period, provided the member shall not exceed the maximum period of participation set forth above.
(8) The lump sum payment, if elected, shall be calculated based upon the monthly values of the member's final pension annuity benefit determined using the employee's creditable service, average final compensation, and multiplier, as provided in the pension plan as of the beginning of the elected planned retirement benefit participation period or the elected reformed planned retirement benefit participation period, plus earnings on such amounts as provided in division (F)(9) below, subject to the limitations under division (F)(10) below.
(9) Investment earnings applicable to any lump sum payment shall be calculated in arrears using the net investment rate earned by the pension fund on its net assets for each month of creditable service worked during the planned retirement benefit participation period or reformed planned retirement benefit participation period, and applied to the prior pension annuity balance including all prior months of creditable service, including prior monthly earnings. The investment earnings shall be compounded monthly to determine the amount of investment earnings to be credited during each year of the planned retirement benefit participation period or reformed planned retirement benefit participation period. The aggregate value of the monthly investment earnings calculations will determine the amount of investment earnings to be credited for the planned retirement benefit participation period or reformed planned retirement benefit participation period. The investment earnings credited to said member will be net of the investment earnings retained by the pension fund per division (F)(10) below.
(10) The procedures established in this paragraph shall apply to the planned retirement benefit, but not to the reformed planned retirement benefit. With regard to any plan earnings calculated into the member's lump sum payment, there shall be no losses counted in those years for which the plan return is negative, and no investment earnings will be credited for such negative years. In any year for which plan earnings are greater than 4% (applied monthly at the rate of 0.327%), the next 2% (applied monthly at the rate of 0.165%) of plan earnings (i.e., the annual earnings between 4% and 6%) shall be excluded from the member's lump sum payment and retained by the pension plan to offset unfunded liabilities. All earnings in excess of 6% will be split equally between the member and the plan until the plan is 90% funded, at which time the split of earnings in excess of 6% will end and earnings in excess of 6% will be kept by the member (but earnings between 4% and 6% will continue to remain in the plan to offset unfunded liabilities). The split of earnings in excess of 6% will resume if the funding of the plan drops below 90%.
(11) If an eligible member who is participating in the planned retirement benefit or reformed planned retirement benefit dies during the member’s planned retirement benefit participation period or reformed planned retirement benefit participation period, then the member's designated beneficiary or, if there is no designated beneficiary, then the member's estate shall make the election provided above with respect to the planned retirement benefits earned or reformed planned retirement benefits earned.
(Ord. O-91-82, passed 11-20-91; Am. Ord. O-2001-13, passed 5-2- 01; Am. Ord. O-2002-33, passed 9-18-02; Am. Ord. O-2007-15, passed 6-20-07; Am. Ord. O-2009- 28, passed 9-16-09; Am. Ord. O- 2009-29, passed 9-16-09; Am. Ord. O-2011-27, passed 9-7-11; Am. Ord. O-2013-18, passed 7-17-13; Am. Ord. O-2015-22, passed 10-7-15; Am. Ord. O-2019-02, passed 2-20-19; Am. Ord. O-2023-03, passed 4-4-23; Am. Ord. O-2024-12, passed 7-3-24)