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Sec. 4.2008.5. Survivorship Benefits for Former Members of Tier 2 Who Transferred to Tier 5.
(a) Qualified Surviving Spouse or Qualified Surviving Domestic Partner and Additional Amounts for Children.
(1) Tier 5 Plan Member’s Service Connected Death. The Qualified Surviving Spouse or Qualified Surviving Domestic Partner of a Tier 5 Plan Member who shall die by reason of injuries received or sickness caused by the discharge of the Plan Member’s duties while a Department Member, shall be paid for life a monthly pension in an amount which shall be equal to 75% of the deceased Plan Member’s Normal Pension Base.
For the purposes of the benefit provided in this subsection (a)(1), a Plan Member has died by reason of injuries received or sickness caused by the discharge of the Plan Member’s duties if there is clear and convincing evidence that the discharge of the Plan Member’s duties were the predominant cause of the Plan Member’s death.
(2) Tier 5 Plan Member’s Nonservice- Connected Death. The Qualified Surviving Spouse or Qualified Surviving Domestic Partner of a Tier 5 Plan Member who shall have five or more Years of Service since the date of the Plan Member’s last regular and permanent appointment as a Department Member including the Plan Member’s service of the required probationary period and who shall die while a Department Member, by reason of injuries or sickness other than injuries received or sickness caused by the discharge of the Plan Member’s duties, shall be paid for life a monthly pension in an amount which shall be equal to 40% of the Plan Member’s Nonservice-Connected Pension Base.
(3) Retired Tier 5 Plan Member’s Death While on a Service Pension. The Qualified Surviving Spouse or Qualified Surviving Domestic Partner of a Retired Tier 5 Plan Member, who shall die while the Retired Member is receiving a pension pursuant to Section 4.2004, shall be paid, for life a monthly pension in an amount which shall be equal to the same percentage of such Retired Member’s Normal Pension Base as the percentage which had been applicable to the calculation of the Retired Member’s pension, provided, however, that the percentage of the Retired Member’s Normal Pension Base shall not exceed 55% for the purposes of this subsection. The benefit described in this Subsection (a)(3) may be modified as provided in Subsection (h) of this section.
(4) Retired Tier 5 Plan Member’s Death While on a Service-Connected Disability Pension. The Qualified Surviving Spouse or Qualified Surviving Domestic Partner of a Retired Tier 5 Plan Member, who shall die while the Retired Plan Member is receiving a service-connected disability pension pursuant to Section 4.2006, shall be paid for life a monthly pension in an amount which shall be equal to 50% of such Retired Member’s Normal Pension Base or, alternatively, in an amount which shall be equal to 55% in the event that such member shall have had 25 years of service or more as of the effective date of the Retired Plan Member’s retirement. The benefit described in this Subsection (a)(4) may be modified as provided in Subsection (h) of this section.
(5) Retired Tier 5 Plan Member’s Death While on a Nonservice-Connected Disability Pension. The Qualified Surviving Spouse or Qualified Surviving Domestic Partner of a Retired Tier 5 Plan Member, who shall die while the Retired Plan Member is receiving a nonservice-connected disability pension pursuant to Section 4.2006, shall be paid for life a monthly pension in an amount which shall be equal to 40% of the Retired Plan Member’s Nonservice- Connected Pension Base. The benefit described in this Subsection (a)(5) may be modified as provided in Subsection (h) of this section.
(6) Death of Tier 5 Plan Member Who Would Have Been Eligible for a Service Pension under Tier 2. The Qualified Surviving Spouse or Qualified Surviving Domestic Partner of a Tier 5 Plan Member, who dies by reason of injuries or sickness other than injuries received or sickness caused by the discharge of the Plan Member’s duties while the Plan Member is a Department Member at a time when the Plan Member would have been eligible for a service pension pursuant to Charter Section 1408 had the Plan Member not transferred to Tier 5, shall be paid for life a monthly pension in an amount equal to the same percentage of the Plan Member’s Normal Pension Base as the percentage that would have been applicable to the calculation of the Plan Member’s pension had the Plan Member retired pursuant to Charter Section 1408 as of the date of the Plan Member’s death, but the percentage of the Plan Member’s Normal Pension Base shall not exceed 55% for the purposes of this subsection.
(7) Additional Pension Amounts for Minor or Dependent Children.
(a) Children of Qualified Surviving Spouse or Qualified Domestic Partner. Whenever any Tier 5 Plan Member or Retired Tier 5 Plan Member shall die and leave surviving the Member, in addition to a Qualified Surviving Spouse or a Qualified Surviving Domestic Partner (either being a Qualified Survivor for the purposes of this section), a Minor Child or Children or a Dependent Child or Children of the Member and the Qualified Survivor, then such Qualified Survivor shall be paid an additional monthly pension in an amount which shall be equal to 25% of the pension the Qualified Survivor as a Qualified Survivor would be entitled to pursuant to any of the forgoing provisions of subsection (a) while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination thereof, and 50% while there are three or more Minor Children or Dependent Children or a combination, and such additional monthly pension shall be the exclusive property of such Qualified Survivor and not the property of any such Minor Child or Dependent Child.
(b) Other Children of Deceased Member. Whenever any Tier 5 Plan Member or Retired Tier 5 Plan Member shall die and leave surviving the Member in addition to a Qualified Survivor, a Minor Child or Children or a Dependent Child or Children not the child or children of the Qualified Survivor, then the guardian or guardians of the estate or estates of any such Minor Child or Children or Dependent Child or Children shall be paid a monthly pension in an amount which shall be equal to 25% of the pension the Qualified Survivor would be entitled to pursuant to the provisions of subsection (a) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination, and 50% while there are three or more Minor Children or Dependent Children or a combination, and such monthly pension shall be the exclusive property of such minor child or children or dependent child or children and not the property of the Qualified Survivor.
(c) Children of Qualified Survivor and Other Children. Whenever any Tier 5 Plan Member or Retired Tier 5 Plan Member shall die and leave surviving the Member, in addition to a Qualified Survivor, a Minor Child or Children or a Dependent Child or Children of the deceased member and Qualified Survivor and a Minor Child or Children or a Dependent Child or Children not the child or children of the Qualified Survivor, then a monthly pension shall be paid in an amount which shall be equal to 25% of the pension the Qualified Survivor would be entitled to pursuant to the provisions of subsection (a) of this section while there is one Minor Child or Dependent Child, 40% while there are two Minor Children or Dependent Children or a combination, and 50% while there are three or more Minor Children or Dependent Children or a combination. The amount of such monthly pension shall be divided by the number of Minor Children or Dependent Children and shall be adjusted accordingly whenever any Minor or Dependent Child shall cease to be such. The Qualified Survivor shall be paid the portion of such monthly pension which shall be applicable to the number of the Qualified Survivor’s Minor Children or Dependent Children and the same shall be the Qualified Survivor’s exclusive property. The guardian or guardians of the estate or estates of the Minor Children or Dependent Children who are not those of the Qualified Survivor shall be paid the portion of such monthly pension which shall be applicable to such Minor Children or Dependent Children and the same shall be the exclusive property of such children.
(b) Pension for Minor or Dependent Children. Whenever any Tier 5 Plan Member or Retired Tier 5 Plan Member shall die without leaving a Qualified Surviving Spouse or Qualified Surviving Domestic Partner, the guardian of the estate of the Member’s Minor or Dependent Children shall be paid, until each such child shall cease to be a Minor or Dependent Child, a monthly pension pursuant to subsections (a)(1), (2), (3), (4), (5) and (6) of this section, whichever shall be applicable. Whenever any Plan Member or Retired Plan Member shall die leaving a Qualified Surviving Spouse or Qualified Domestic Partner who thereafter shall die, the guardian of the estate of the Member’s Minor or Dependent Children shall be paid, until each such child shall cease to be a Minor or Dependent Child, a monthly pension pursuant to one of the aforementioned paragraphs of subsection (a) of this section, whichever shall be applicable. In either of the foregoing events and if there were to be more than one Minor or Dependent Child, an equal share of such monthly pension shall be paid for and on behalf of each such child to the guardian of the child’s estate and shall be adjusted as each of them shall cease to be a Minor or Dependent Child in the manner set forth in subsection (a)(7) of this section.
(c) Pension for Dependent Parents. Whenever any Tier 5 Plan Member or Retired Tier 5 Plan Member shall die without leaving a Qualified Surviving Spouse or Qualified Surviving Domestic Partner or a Minor Child or Dependent Child, a monthly pension pursuant to subsections (a)(1), (2), (3), (4), and (5) of this section, shall be paid to the Member’s Dependent Parents or to the survivor of them until each such Dependent Parent shall cease to be such. Any Dependent Parent who shall cease to be such but who thereafter again shall become unable to pay the Dependent Parent’s necessary living expenses without a pension shall be entitled to have the Dependent Parent’s pension reinstated.
(d) Determinations With Respect to Cause of Death and Dependency. The Board shall have the same power as that which has been given to it by Section 4.2006(c) and (d) in order to determine:
(1) the fact whether a Tier 5 Plan Member’s death was service-connected or nonservice-connected for the purposes of Section 4.2008(a)(1) and (2);
(2) the fact of whether or not a child of a deceased Tier 5 Plan Member or Retired Tier 5 Plan Member is a Dependent Child; and
(3) whether or not any parent of a deceased Tier 5 Plan Member or Retired Tier 5 Plan Member is a Dependent Parent.
The Board also shall have the power to determine, from time to time, the fact of whether or not a child continues to be a Dependent Child, the fact of whether or not a parent continues to be a Dependent Parent and the fact of whether or not a Dependent Parent who had ceased to be such thereafter shall have become entitled to have the Dependent Parent’s pension reinstated.
(e) Medical Reports and Hearings. The power of the Board to determine the fact of whether a Tier 5 Plan Member’s death was service-connected or nonservice- connected, as provided in subsection (d) of this section, hereafter may be exercised by it upon the basis of a written report from one regularly licensed and practicing physician selected by it, provided, however, that it, in its discretion, may obtain such a report from more than one such physician. The determination hereinbefore referred to in this subsection may, at the option of the Board, be made without a hearing being held pursuant to the provisions of subsection (d) of this section.
(f) Distribution of Contributions. Whenever a Tier 5 Plan Member dies without leaving a person or persons entitled to receive a pension pursuant to the provisions of this section, then, and in that event, the Plan Member’s contributions to the Plan, together with such interest as may have been credited to the Plan Member’s individual account shall be paid to such person as the Plan Member shall have nominated by written designation duly executed and filed with the Board, or if there be no such designation, then to the surviving spouse or to the Plan Member’s children in the event there is no surviving spouse, or to the Plan Member’s parents in the event there is no surviving spouse or children. In the event there is no written designation of beneficiary, surviving spouse, children or parents, then the contributions shall be paid to the executor or administrator of the estate of such deceased Plan Member, or to any other person legally authorized to collect money due the decedent.
(g) Application of Section. This section shall apply solely with respect to former members of Tier 2 who have elected to become Tier 5 Plan Members in accordance with section 4.2000(c).
(h) Optional Pensions for Qualified Surviving Spouse or Qualified Surviving Domestic Partner. At any time before the first payment of a service pension, a service-connected disability pension, or a nonservice-connected disability pension, the Plan Member may elect to receive, in lieu of the Plan Member’s pension as provided in Section 4.2004 or Section 4.2006, the actuarial equivalent at that time of the pension and of the pension for the Qualified Surviving Spouse or Qualified Surviving Domestic Partner as provided in Subsection (a) of this section, by electing an optional pension payable throughout the balance of the Plan Member’s life, with the provision that upon the Plan Member’s death the optional pension shall be continued to the Plan member’s Qualified Surviving Spouse or Qualified Surviving Domestic Partner in the proportional amount designated by the Plan Member at the time of election of the option provided by this section.
The amount of this optional pension shall be so calculated that the liability of the Fire and Police Pension Plan at the date of retirement under the optional pension shall be equal to the liability of the Fire and Police Pension Plan at the same date under the pension awarded in accordance with the provisions of Section 4.2004 or Section 4.2006 and of the survivorship pension provided for the Qualified Surviving Spouse or the Qualified Surviving Domestic Partner by Subsection (a) of this section.
The optional amounts, calculated in accordance with the foregoing paragraph, shall provide a range of optional values such that the amount to be paid to the Qualified Surviving Spouse or Qualified Surviving Domestic Partner of the Plan Member shall be increased, in increments as determined by the Board, up to 100% of the pension payable to the Plan Member.
If a Retired Tier 5 Plan Member, previously retired on a disability pension pursuant to the provisions of Section 4.2006, should be reinstated to active duty upon termination of the Retired Plan Member’s disability, the election to receive the optional pension as provided in this subsection, shall be deemed canceled as of the effective date of the reinstatement.
A Retired Tier 5 Plan Member, previously retired on a disability pension pursuant to the provisions of Section 4.2006 and whose pension has subsequently been adjusted as provided for in Section 4.2006, shall have the right to cancel an option previously elected by the Retired Plan Member pursuant to the provisions of this subsection.
The Board shall by rule provide for a method in which the election to receive an optional pension shall be exercised.
SECTION HISTORY
Added by Ord. No. 174,367, Eff. 12-19-01.
Amended by: Subsecs. (a)(3), (a)(4) and (a)(5) amended, Subsec. (h) added, Ord. No. 177,900, Eff. 9-28-06; Subsec. (a)(6), Ord. No. 178,656, Eff. 5-4-07.
(a) Creation of Funds. Subject to Charter Section 1220(b), two entirely separate and distinct funds hereby are created and established for record keeping, actuarial and other administrative purposes related to this Tier 5, one of which shall be known as the “Fire and Police Tier 5 Service Pension Fund” and the other of which shall be known as the “Fire and Police Tier 5 General Pension Fund.”
(b) Fire and Police Tier 5 Service Pension Fund. The Fire and Police Tier 5 Service Pension Fund shall consist of:
(1) deductions made pursuant to Section 4.2014, from the salaries of Plan Members;
(2) all contributions and donations to the Fire Department, the Police Department or the Harbor Department for services by any Plan Members, except amounts of money donated to provide for any medal or permanent competitive award:
(3) all fines imposed upon Plan Members for violations of rules and regulations of the respective department in which they are Department Members;
(4) proceeds from the sale of unclaimed property as determined by the Board; and
(5) all interest, earnings and profits resulting from investments of such monies.
(c) Fire and Police Tier 5 General Pension Fund. The Fire and Police Tier 5 General Pension Fund shall consist of:
(1) all money appropriated to the fund by the Council; and
(2) all interest, earnings and profits resulting from investment of such monies.
(d) Use of Funds. The monies in the Fire and Police Tier 5 Service Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of service pensions granted pursuant to Section 4.2004, for the refund of contributions as provided in this Tier 5 and such other uses as may be authorized by Charter Sections 1220(b) and (c). The monies in the Fire and Police Tier 5 General Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of all pensions other than service pensions, such other benefits as may be provided pursuant to the provisions of this Tier 5, all administrative expenses of the Fire and Police Pension Plan - Tier 5 and such other uses as may be authorized by Charter Sections 1220(b) and (c).
(e) Authorized Transfer Between Funds. In the event that the monies in the Fire and Police Tier 5 Service Pension Fund should be insufficient, at any time, to pay all service pensions, then the Board shall have the power and authority to cause the Controller of the City to transfer to the fund sufficient monies therefor from the Fire and Police Tier 5 General Pension Fund.
(f) Benefits Shall be General Obligation of the City. The obligation to pay benefits pursuant to this Tier 5 shall be a general obligation of the City. Charter Section 1210 shall apply to this Tier 5 in a manner substantially identical to its application to Tier 3.
SECTION HISTORY
Added by Ord. No. 174,367, Eff. 12-19-01.
Amended by: Subsec. (b)(2) amended, Subsec. (b)(6) added, Ord. No. 177,214, Eff. 1-4-06.
(a) Actuarial Standards. The Fire and Police Pension Plan – Tier 5 shall be maintained on a reserve basis which, for the purposes of this Tier 5, shall mean one which provides for the accumulation and maintenance of the Fire and Police Tier 5 Service Pension Fund and the Fire and Police Tier 5 General Pension Fund which together will at all times be equal to the difference between the present value of the obligations assumed and the present value of the monies to be received for paying such obligations, where such present values are estimated in accordance with accepted actuarial methods and on the basis of an assumed rate of interest and the mathematical probabilities of the occurrence of such contingencies as affect both the payment of the assumed obligations and the receipt of monies with which they are to be paid in accordance with the provisions of Charter Section 1210(b)(3), applied as if the term “Tier 3" as used therein were “Tier 5", and Section 4.2014 of this Code.
(b) Actuarial Valuations. The Board shall secure an actuarial valuation showing the cost of maintaining the plan and funds on such reserve basis and, at intervals of not to exceed five years, shall cause to be made an actuarial investigation including, but not limited to, the mortality, service and salary experience of the Plan Members and other beneficiaries and shall further cause to be made annually an actuarial valuation of the assets and liabilities of the funds.
The Board, from time to time and with the advice of the investment counsel, shall establish such an assumed rate of interest for the purpose of actuarial valuations, as in its judgment seems proper in the light of the experience and prospective earnings on the investment of the funds.
(c) Retention of Actuary. The Board shall retain a competent consulting actuary for the purpose of making the necessary actuarial studies, reports, investigations and valuations and shall, with the advice of the actuary, adopt such actuarial assumptions as shall be necessary.
(d) Accounting for Unrealized Profits and Losses. With the advice of the consulting actuary and of the investment counsel, the Board, for the purpose of the actuarial valuations, may provide by rule for the manner and the extent to which any unrealized profits or losses in the equity type investments of the funds shall be taken into account.
(e) Unfunded Liabilities. The unfunded liabilities of the Fire and Police Pension Plan – Tier 5 shall be funded in accordance with the actuarial funding method adopted by the Board upon the advice of its consulting actuary. Any unfunded liabilities resulting from amendment of the provisions of this Tier 5 or by ordinance as authorized by this Tier 5 shall be amortized over a 30 year period. Actuarial experience gains and losses shall be amortized over a 15 year period.
(f) Members of the Airport Department. The determination of one hundred percent (100%) funded status and the one percent (1%) payment by the City of Tier 5 employee contributions pursuant to Charter Section 1222 and Section 4.2014 of this chapter shall be made without regard to any impact resulting from the inclusion of Members of the Airport Department in Tier 6 of the Plan, as authorized by Charter Section 1700(f).
SECTION HISTORY
Added by Ord. No. 174,367, Eff. 12-19-01.
Amended by: Subsec. (f) added, Ord. No. 184,853, Eff. 4-6-17.
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