As used in this chapter, unless a different meaning is clearly required by the context:
(a) "Accumulated contributions" means the sum of all amounts credited to a member's individual account in the Annuity Savings Fund, together with regular interest thereon.
(b) "Active member" means a member who is currently employed by the City as set forth in Section 294.05.
(c) "Annuity" means an annual amount payable in equal monthly installments, throughout the life of a person, derived from the accumulated contributions of a member.
(d) "Annuity reserve" means the present value of all payments to be made on account of any annuity, or benefits in lieu of any annuity, computed upon the basis of such tables of mortality, experience and regular interest as the Retirement Commission from time to time adopts.
(e) "Beneficiary" means any person, except a retiree, who is in receipt of a retirement allowance, pension or other benefit payable from funds of the retirement system.
"City" means the City of Lincoln Park and the 25th District Court.
(g) "Compensation" means the remuneration paid to an employee by the City for services rendered by him or her to the City. If a member's compensation is not all paid in money, the Retirement Commission shall fix the value of that part of his or her compensation not paid in money. For purposes of Section 415 of the Internal Revenue Code, "compensation" shall mean compensation actually paid during the limitation year and the limitation year shall be July 1 through June 30 or such other consecutive 12-month period over which compensation is otherwise determined under the retirement system. For limitation years beginning on and after January 1, 2001, for purposes of applying the limitations described herein, compensation paid or made available during such limitation years shall include elective amounts that are not includible in the gross income of the member by reason of Section 132(f)(4) of the Internal Revenue Code. The annual compensation of each member taken into account in determining benefit accruals in any retirement system year beginning after December 31, 2001, shall not exceed two hundred thousand dollars ($200,000). "Annual compensation" means compensation during the retirement system year or such other consecutive 12-month period over which compensation is otherwise determined under the retirement system (the "determination period"). In determining benefit accruals in years beginning after December 31,2001, the annual compensation limit for determination periods beginning before January 1, 2002, shall be one hundred fifty thousand dollars ($150,000) for any determination period beginning in 1996 or earlier; one hundred sixty thousand dollars ($160,000) for any determination period beginning in 1997, 1998, or 1999; and one hundred seventy thousand dollars ($170,000) for any determination period beginning in 2000 or 2001. The two hundred thousand dollar ($200,000) limit on annual compensation shall be adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B) of the Internal Revenue Code. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.
(Res. 02-323A. Passed 6-17-02.)
For limitation years beginning after December 31, 1997, for purposes of applying the limitations of Section 415 of the Internal Revenue Code, compensation paid or made available during such limitation years shall include any elective deferral (as defined in Section 402(g)(3) of the Internal Revenue code), and any amount which is contributed or deferred by the employer at the election of the employee and which is not includable in the gross income of the employee by reason of Sections 125 or 457 of the Internal Revenue Code.
(Res. 02-654. Passed 12-16-02.)
Compensation for purposes of IRC Section 415(c)(3) shall also include, (1) regular pay after severance from employment; (2) leave cashouts and deferred compensation including cash out of accrued sick, vacation or other leave time if the employee would have been able to use the leave if employment had continued or the payment of nonqualified deferred compensation that would have been paid to the employee at the same time if the employee had remained employed and only to the extent that the payment is includable in the employee's gross income. The compensation items listed in this paragraph must be paid by the later of two and one-half months of severance from employment or the end of the limitation year that includes the date of severance with the City.
(Res. 2011-72. Passed 4-4-11.)
(h) "Credited service" means the total service credited to a member, to the extent provided in this chapter.
(i) "Final average compensation" means the average of the highest annual compensation paid to a member during any five years of credited service. If a member has less than five years of credited service, his or her final average compensation shall be the average of his or her annual compensations received during his or her total years of credited service.
For all members who are active as of July 1, 1982, or who become members after July 1, 1982, "final average compensation" means the average of the highest three years of compensation paid to a member during his or her years of credited service.
For all members who are active as of September 30, 1987, or who become members after September 1, 1987, "final average compensation" means the average of the highest three years of compensation paid to a member out of his or her last five years of actual service, as it is understood that the purchase of up to three additional years of service shall not be used as the final average compensation. However, the maximum retirement allowance shall not exceed seventy percent of the final average compensation, nor shall it exceed 100 percent of the member's last annual base salary.
(j) "Inactive member" means a member who has left the service of the City for reasons other than retirement, but has fulfilled the necessary deferred retirement requirements of Section 294.13.
(k) "Member" means any person included in the membership of the retirement system.
(l) "Pension" means an annual amount, payable in equal monthly installments throughout the life of a person, derived from money provided by the City.
(m) "Pension reserve" means the present value of all payments to be made on account of any pension, or benefits in lieu of any pension, computed upon the basis of such tables of experience and regular interest as the Retirement Commission from time to time adopts.
(n) "Regular interest" means such rate of interest per year, compounded annually, as the Retirement Commission from time to time determines.
(o) "Retiree" means any member who retires with a retirement allowance or pension payable from funds of the retirement system.
(p) "Retirement," as it specifically relates to this chapter only covering the Employees Retirement System and the qualification for pension benefits, shall mean withdrawal from service with a retirement allowance or pension granted in accordance with this chapter. (Emergency Manager Order No. 11. Ordered 2-2-15.)
(q) "Retirement allowance" means the sum of the annuity and the pension.
(r) "Retirement Commission" or "Commission" means the Retirement Commission provided for in this chapter.
(s) "Service" means personal service rendered to the City by an officer or employee of the City.
(t) "Service year" means a period of one year commencing with the date of employment and the anniversary date of employment in each year thereafter, unless changed due to unpaid leave or separation.
(u) "Social security date" means the date that the agreement between the authorized State agency and the Secretary of Health and Human Services of the United States is modified to include the eligible employees of the City in the Federal Social Security Old Age and Survivors' Insurance Program.
(Res. 88-388. Passed 5-23-88.)