(a) Council Authority. The Council may by ordinance establish pension benefits for persons who leave the employment of an Outside Agency to become Department Members of the Fire or Police Department pursuant to a merger or contract for fire or police services which is authorized by action of the Council. Except as limited in subsection (c), Council shall have broad authority to enact ordinances necessary for the provision and funding of pension benefits for Transferring Employees.
(b) Examples of Council Authority. The broad authority granted to Council includes, but is not limited to:
(1) Different Benefits Allowed.. The authority to provide Transferring Employees with benefits other than those provided in the Fire and Police Pension Plans, whether by contracting for coverage with a non-City pension plan, by providing for alternative benefits to be administered by the Board or by other means as the Council shall determine;
(2) Transfer of Assets and Liabilities. The authority to provide for the transfer of pension assets and liabilities in connection with mergers and contracts.
Should it be necessary for the City to assume responsibility for the provision of pension benefits to persons other than the Transferring Employees in order to facilitate a merger or contract, then the Council’s authority shall include the authority to provide benefits to these other persons if the future annual costs attributable to the provision of these benefits is clearly identified in the actuary’s report and any ordinance providing these benefits must prescribe a mechanism for funding the cost of these benefits. The funding mechanism may include, but is not limited to, the transfer of assets from another pension plan and/or reimbursements from the Outside Agency.
(c) Limitation Upon Council Authority. The authority given to the Council to establish pension benefits herein is specifically limited as follows:
(1) No City Service Credit. The Council may not provide service credit to a Transferring Employee for service performed prior to becoming a Department Member if the Transferring Employee is receiving or will be entitled in the future to receive pension benefits from another pension plan based upon prior service.
(2) Funding of Costs of Service Credit Granted. Any ordinance adopted pursuant to this section which provides for a Transferring Employee to receive service credit for prior service must prescribe a mechanism for funding the costs attributable to this prior service which may include, but is not limited to, the transfer of assets from another pension plan and/or reimbursements of costs from the Outside Agency.
(d) Mode of Adoption. Ordinances adopted under this section shall be adopted in the same manner as provided in Section 1618(b), but Council shall be advised in writing by an enrolled actuary as to the cost of the proposed benefits.