(a) The benefits conferred by this chapter shall apply to all persons employed in any capacity by or holding positions in the City in accordance with its provisions, except as hereinafter provided. Benefits conferred by this chapter shall be payable on a monthly basis, as follows:
(1) Fifty percent of the final monthly earnings during any of the five highest years of service to the City, or, if greater, the amount determined by the rate of average monthly earnings during the last two years; and
(2) Forty percent of the primary Social Security benefits to which the member is entitled because of age.
Benefits at normal retirement date will equal (1) minus (2).
(b) (1) The following vesting schedule shall apply for all terminations of employment:
Years of Service at Termination | Percent Vested |
Years of Service at Termination | Percent Vested |
Less than 12 | 0 |
12 but less than 13 | 60 |
13 but less than 14 | 65 |
14 but less than 15 | 70 |
15 but less than 16 | 75 |
16 but less than 17 | 80 |
17 but less than 18 | 85 |
18 but less than 19 | 90 |
19 but less than 20 | 95 |
20 or more | 100 |
(2) If a member who has completed at least ten years of credited service with the employer incurs a disability prior to attaining normal retirement age, such member shall be entitled to receive a monthly benefit equal to 50% of the member's average compensation, with no reduction or offset due to payment of social security benefits.
(3) The payment of a disability retirement benefit shall be made monthly commencing on the member's disability retirement date and ending on the earlier of the date of death of the member or the date that the member's total and permanent disability shall cease. If the member's total and permanent disability shall cease prior to the attainment of the member's normal retirement age, the member shall be deemed to have terminated employment as of the disability retirement date for purposes of this plan, unless the member shall resume active employment within three months following the date on which such total and permanent disability ceased. A member who fails to resume active employment after total and permanent disability ceases shall not be entitled to a distribution of accumulated contributions pursuant to the extent that the total amount of disability retirement benefits paid exceeds the value of the member's accumulated contributions as of the disability retirement date, and shall not be entitled to any other benefits under the plan as a result of the accumulation of any years of credited service as of the disability retirement date.
(4) If the Plan Administrator shall determine that a member who is totally and permanently disabled has recovered sufficiently to resume active employment, or if a member refuses to undergo a medical examination as directed by the Plan Administrator (such a medical examination may not be required more frequently than once in any given 12-month period), the payment of disability retirement benefits shall cease.
(5) If a member is receiving payment of disability retirement benefits under this plan, the member must notify the Plan Administrator of any change in condition which may cause the member's entitlement to receipt of such benefits to cease. If a member fails to provide immediate notice to the Plan Administrator of any change in status and thereby continues to receive payment of benefits hereunder to which the member is not entitled, the Plan Administrator may take whatever action is necessary and permitted under applicable law to recover any amount of improper payments, including offsetting such amounts against any future payment of retirement or other benefits under the plan, or legal action. The Plan Administrator may also recover the costs of any such action.
(c) Effective with retirements as of January 1, 1997, City employees with 20 years of service and who are at least 55 years of age may retire.
(d) Effective with retirements as of January 1, 1997, there shall be an additional benefit to employees age 55 years or older consisting of a 1% increment for each year beyond 20 years of service. For example, for an employee 55 years of age or older with 20 years of service, the rate shall be 100% of 50%; for an employee 55 years of age or older with 21 years of service, the rate shall be 100% of 51%; and so forth, to a maximum not to exceed 40 years of service, which, at 1% each additional year, would be 100% of 70%.
(Ord. 3992. Passed 4-10-74; Ord. 4763. Passed 1-22-97; Ord. 4884. Passed 4-24-02.)