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Sec. 1408. Service Pension.
 
   (a)   Time of Retirement. Any Tier 2 System Member under the age of 70 years who shall have 20 years of service or more shall be retired by order of the Board from further active duty as a Department Member either (a) upon the filing of a written application or (b) upon the filing of a written request by or on behalf of the head of the department in which the System Member is a Department Member if it shall be determined by the Board to be for the good of such department, other than for a cause or reason which would entitle such System Member to a disability pension pursuant to Section 1412, and the Board, if it shall so determine, shall state the cause or reason in its order retiring such Tier 2 System Member.
 
   (b)   Physical Exam for Members Age 70 Years or More. After a Tier 2 System Member has attained the age of 70, he shall annually submit to an examination by a regularly licensed, practicing physician selected by the head of the department who shall render a written report to such department as to whether or not the Tier 2 System Member is physically and mentally fit to continue his duties as a Department Member. If the Tier 2 System Member is found not to be physically and mentally fit to so continue his duties, he shall be retired effective the first day of the calendar month next succeeding that month in which the physician’s report was received by the Board.
 
   (c)   Pension Amount. Any such Retired Member shall be paid thereafter and for life a monthly service pension in an amount which shall be equal to a percentage of his Normal Pension Base, to wit:
 
   (1)   For less than 25 years of service: 2% thereof for each year of service;
 
   (2)   For 25 years of service: 55% hereof; and for each year of service over 25 years of service, an additional 3% thereof, not exceeding in all, however, a maximum of 70% thereof, which maximum of 70% shall be applicable regardless of the Retired Member’s length of service as a System Member or his age at retirement.
 
   No Retired Member, retired pursuant to this section, ever shall be paid pension pursuant to Section 1412 concerning Disability Pensions.
 
 
Sec. 1410. Return or Recall to Active Duty.
 
   (a)   Return to Active Duty.
 
   (1)   Conditions for Return to Active Duty. A retired member, whenever retired, may file, with the Chief of the department from which he retired, a written application to be returned to active duty therein only upon the conditions:
 
   (A)   Service Retirement and Former Rank. That his original retirement had been pursuant to Section 1408 relating to Service Pensions and had been from the Fire Department while holding a rank no higher than Engineer or from the Police Department while holding a rank no higher than Sergeant; and
 
   (B)   Time Since Original Retirement and Age. That, as of the filing date of the application, the period of his original retirement had been no longer than 3 years and he shall be under the age of 55 years; and
 
   (C)   Medical Exam. That he satisfactorily had passed a medical examination not more than 30 days prior to the effective date of his original retirement, but the Chief, if the effective date thereof had been prior to May 2, 1969, may waive the condition contained in this subsection.
 
   (2)   Subsequent Conditions for Return to Active Duty. The Chief may approve any application only upon the conditions that, after the filing date thereof, the retired member:
 
   (A)   Medical Exam. Had passed a medical examination from which it had been determined that he would be capable of performing the duties which would be assigned to him if he were to be returned to active duty subject to approval by the Board; and
 
   (B)   Certification. Had certified, in writing, that he had read and understands the provisions of this section.
 
   (3)   Return to Rank at Original Retirement. The Chief, if he were to approve the application, may return the retired member to active duty only in or to a vacant position in the rank held by him at the effective date of his original retirement.
 
   (4)   Status of a Reactivated Member of Tier 2. Wherever words used in this subsection (a)(4) with respect to any pension granted or to be granted pursuant to Section 1414, they also shall mean and include the words, as used in Section 1422 (c)(3): “whether by reason of the provisions thereof or of those of Section 1414(b) and (c), including any additional pension amounts payable pursuant to Section 1414(a)(7).” A retired member, if he were to be returned to active duty, thereafter shall be known as a “reactivated member” and, as such:
 
   (A)   Privilege, Not An Appointment. His return to active duty shall be a privilege only and he shall be on probation for one year from and after the effective date thereof regardless of any other provision of law contained in the Charter or otherwise, and the Chief may terminate his service at any time during such year;
 
   (B)   Original Pension Terminated. His pension, granted by reason of his original retirement, shall be terminated by the Board as of the effective date of his return to active duty;
 
   (C)   Method of Calculating Years of Service. His service after the effective date of his return to active duty, for the purposes of this Tier 2 and regardless of any other provision of law contained in the Charter or otherwise, shall consist of only:
 
   (i)   the days for which he shall be paid for performing his assigned duties,
 
   (ii)   his days of vacation with pay, and
 
   (iii)   his regular days off duty with pay,
 
   and one year of such service shall consist of a total of 365 such days;
 
   (D)   Years of Service for Purposes of Civil Service and Related Purposes. His aggregate years of service, for the purposes of his eligibility to advancement in accordance with civil service rules and regulations and the payment of his salary and longevity pay or merit pay, shall consist of only his years of service prior to the effective date of his original retirement and his service after the effective date of his return to active duty;
 
   (E)   Years of Service for Purposes of Tier 2. His aggregate years of service, for the purposes of this Tier 2 and regardless of any other provision of law contained in the Charter or otherwise, shall consist of only his years of service prior to the effective date of his original retirement and his service subsequent to the effective date of his return to active duty, provided, however, that such service shall be for not less than one year as defined in subsection (a)(4)(C) of this section;
 
   (F)   Salary, Longevity, & Merit Pay. He shall be assumed to have a satisfactory standard of service and shall be paid the salary provided for his rank and the longevity pay or merit pay provided for his aggregate years of service as defined in subsection (a)(4)(E) of this section, subject, however, to all provisions applicable to the termination of payment of longevity pay or merit pay;
 
   (G)   Payroll Deduction. He shall have deductions made for pension purposes, pursuant to Section 1420 relating to Member Contributions – Tier 2, from his salary and longevity pay or merit pay;
 
   (H)   Prohibition of Nonservice Connected Disability Pensions. He never shall be entitled to a subsequent retirement pursuant to Section 1412(b) relating to Nonservice Connected Disability Pensions and his widow, his minor child or children (hereafter referred to in this subsection as “his child”) or his dependent parent or parents (hereafter referred to in this subsection as “his parent”) never shall be granted a pension pursuant Section 1414(a)(2) or (4) relating to Nonservice Connected Survivor Pensions;
 
   (I)   Allowance of Service Connected Disability Pensions. He shall be entitled to a subsequent retirement pursuant to Section 1412(a) relating to Service Connected Disability Pensions if he were to become eligible therefor and upon his death, if he theretofore had had such a subsequent retirement, a pension shall be granted pursuant to Section 1414(a)(3) relating to Service Connected Survivor Pensions to his surviving spouse, if she shall have been married to him as of the effective date of his subsequent retirement, or to his child or to his parent;
 
   (J)   Allowance of Service Connected Survivor Pension. His surviving spouse or his child or his parent, if he were to die while a reactivated member from any cause arising out of or from the performance of his duties, shall be granted a pension pursuant to Section 1414(a)(1) relating to Service Connected Survivor Pensions;
 
   (K)   Allowance of Survivor Pension Upon Death of Re-activated Member. His surviving spouse, (if she shall have been married to him for at least one year prior to the effective date of his original retirement or for at least one year after the effective date of his return to active duty and prior to the date of his death), or his child or his parent, if he were to die while a reactivated member from any cause other than a cause arising out of or from the performance of his duties, shall be granted the same pension she would have received pursuant to Section 1414(a)(6) relating to Service Connected Survivor Pensions;
 
   (L)   Reinstatement of Original Pension. His pension, granted by reason of his original retirement, if his service were to be terminated during the one year from and after the effective date of his return to active duty for any reason other than by reason of his subsequent retirement pursuant to Section 1412(a) relating to Service Connected Disability Pensions, shall be reinstated by the Board, as of the effective date of the termination of his service, at the amount of pension which then would have been payable to him if he had not returned to active duty and, upon his death, the pension which shall be granted pursuant to Section 1414(a)(5) to his surviving spouse if she shall have been married to him for at least one year prior to the effective date of his original retirement, or to his child or to his parent, shall be calculated upon the Normal Pension Base upon which his pension had been calculated as of the effective date of his original retirement; and
 
   (M)   Retirement as Reactivated Member. He shall be entitled to a subsequent retirement pursuant to Section 1408 relating to Service Pensions for Tier 2, based upon his aggregate years of service as defined in subsection (a)(4)(E) and his pension shall be calculated upon a sum equal to the Normal Pension Base upon which his pension had been calculated as of the effective date of his original retirement (hereinafter referred to as “such base”), plus a percentage of the difference between such base and that which, if he had not had his original retirement, would have been his Normal Pension Base as of the effective date of his subsequent retirement, for his years of service subsequent to the effective date of his return to active duty as defined in subsection (a)(4)(C), so that such sum shall be such base plus:
 
   (i)   20% of such difference for one such year,
 
   (ii)   40% of such difference for two such years,
 
   (iii)   60% of such difference for three such years,
 
   (iv)   80% of such difference for four such years and
 
   (v)   100% of such difference for five or more such years or the equivalent of his Normal Pension Base as of the effective date of his subsequent retirement and upon his death, if he previously had had such a subsequent retirement, the pension which shall be granted pursuant to Section 1414(a)(5) to his surviving spouse, (if she shall have been married to him for at least one year prior to the effective date of his original retirement or for at least one year after the effective date of his return to active duty and prior to the effective date of his subsequent retirement), or to his child or to his parent, shall be calculated upon the sum upon which his pension had been calculated as of the effective date of his subsequent retirement.
 
   (5)   Applicability of Tier 2 to Reactivated Members. The provisions of this Tier 2 shall be construed and applied, as to a reactivated member, his surviving spouse, his child and his parent, in accordance with respectively applicable provisions of subsection (a)(4) of this section.
 
   (b)   Recall to Active Duty.
 
   (1)   Rules for Recall to Active Duty. The Chief shall promulgate such rules and set standards as he may deem to be necessary or desirable with respect to recalling a retired member to active duty.
 
   (2)   Conditions for Recall to Active Duty. A retired member, whenever retired, shall be eligible to be recalled to active duty in the department from which he retired only upon the conditions:
 
   (A)   Service Retirement and Former Rank. That his original retirement has been pursuant to Section 1408 and had been from the Fire Department while holding a rank lower than Fire Chief or from the Police Department while holding a rank lower than Chief of Police;
 
   (B)   Certification. That he had certified, in writing, that he had read and understands the provisions of this section; and
 
   (C)   Consent to Recall. That he voluntarily had consented to be recalled to active duty.
 
   (3)   Limitations on Recall. The Chief may recall a retired member to active duty:
 
   (A)   Rank at Retirement. Only in or to a vacant position in the rank held by him at the effective date of his original retirement;
 
   (B)   90 Day Limit. For not to exceed 90 days in any one calendar year; and
 
   (C)   Status Defined in this Section. The salary, benefits and other terms and conditions of employment of any such recalled member shall be as provided under subsections (b)(5) and (b)(6) of this section.
 
   (4)   No Recall of Police Exceeding 12 Months Without Loss of Pension. Recall of retired members of the Police Department may be approved for a period in excess of 90 days but not for more than 12 consecutive months, without loss of pension, in which case the salary, benefits and other terms and conditions of employment for such recalled police officers shall be established by ordinance.
 
   (5)   Status of Recalled Member. A retired member, if he were to be recalled to active duty, thereafter shall be known as a “recalled member” and, as such:
 
   (A)   His recall to active duty shall be a privilege only and the Chief may terminate his service at any time;
 
   (B)   His pension shall be paid during the period of his recall to active duty;
 
   (C)   He shall be paid the salary provided for his rank and the longevity pay or merit pay provided for his aggregate years of service prior to the effective date of his original retirement;
 
   (D)   He shall have no deductions made for pension purposes, pursuant to Section 1420 relating to Member Contributions – Tier 2, from his salary and longevity pay or merit pay; and
 
   (E)   He, his surviving spouse, his minor child or children or his dependent parent or parents never shall be entitled to any pension benefits provided by Tier 1 or Tier 2 by reason of his service as a recalled member.
 
   (6)   Tier 2 Construed with Recalled Members Rules. The provisions of this Tier 2 hereafter shall be construed and applied, as to a recalled member, his surviving spouse, his minor child or children and his dependent parent or parents, in accordance with respectively applicable provisions of subsection (b)(5) of this section.
 
 
Sec. 1412. Disability Pensions.
 
   (a)   Service-Connected Disability. Upon the filing of his written application for a disability pension or upon the filing of a written request by or on behalf of the head of the department in which he is a Department Member, any System Member whom the Board shall determine has become physically or mentally incapacitated by reason of injuries received or sickness caused by the discharge of the duties of such person as a Department Member, and who is incapable as a result from performing his duties, shall be retired by order of the Board from further active duty as a Department Member. Such Retired Member shall be paid thereafter and for life a monthly service-connected disability pension in an amount which shall be equal to the same percentage of his Normal Pension Base as the Board shall determine, from time to time, to be his percentage of disability. Such pension shall be in an amount not less than 50% and not more than 90% of such Retired Member’s Normal Pension Base and not less than that percentage which he, if he shall have had 25 years of service or more at the time of his retirement pursuant to this subsection of this section, would have received had he retired pursuant to Section 1408 concerning Service Pensions, but such pension shall be reduced, pursuant to Section 1212 concerning Workers’ Compensation, to an amount less than either or both of the aforementioned minimum amounts if the application of that section were to cause such result. Such pension may be terminated only pursuant to subsection (d) of this section. No Retired Member, while retired pursuant to this subsection of this section, ever shall be paid any pension pursuant either to Section 1408 concerning Service Pensions or to subsection (b) of this section concerning Nonservice Connected Disability Pensions.
 
   (b)   Nonservice-Connected Disability. Upon the filing of his written application for a disability pension by a System Member who shall have 5 years of service or more since the date of his last regular and permanent appointment as a Department Member including his service of the required probationary period, or upon the filing of a written request therefor with respect to such a System Member by or on behalf of the head of the department in which he is a Department Member, any System Member whom the Board shall determine has become physically or mentally incapacitated by reason of injuries or sickness other than injuries received or sickness caused by the discharge of the duties of such person as a Department Member, and who is incapable as a result thereof from performing his duties, and if the Board further shall determine that such disability was not due to or caused by the moral turpitude of such System Member, shall be retired by order of the Board from further active duty as a Department Member. Such Retired Member shall be paid thereafter and for life a monthly nonservice-connected disability pension in an amount which shall be equal to 40% of his Nonservice-Connected Pension Base. Such pension may be terminated only pursuant to subsection (d) of this section. No Retired Member, while retired pursuant to this subsection of the section, ever shall be paid any pension pursuant either to Section 1408 concerning Service Pensions or to subsection (a) of this section concerning Service Connected Pensions.
 
   (c)   Determination of Disability. Upon the filing of any written application or request for a disability pension, as referred to in subsections (a) and (b) of this section, the Board:
 
   (1)   shall cause the System Member to be examined by and a written report thereon rendered by at least three regularly licensed and practicing physicians selected by it;
 
   (2)   shall hold a hearing with respect to such application or request; and
 
   (3)   shall receive or hear such other evidence relating to or concerning the System Member’s disability or claimed disability as may be presented to it.
 
   The Board shall have the power to hear and determine all matters pertaining to the granting and denying of any such application or request for a disability pension. The Board first shall determine whether or not the System Member is incapable of or from performing his duties as a Department Member. If the Board were to determine that he is not so incapable, it then shall be the duty of the Board to deny the application or request. If the Board were to determine that he is so incapable, it then shall determine, pursuant to the language used in subsections (a) and (b) of this section, whether his incapacity or disability is service-connected or nonservice-connected. If the Board were to determine that it is service-connected, it then shall determine the percentage of his incapacity or disability, within the limitations prescribed in subsection (a) of this section, and shall grant the application or request accordingly. If the Board were to determine that it is nonservice-connected, it then shall determine whether his incapacity or disability was due to or caused by the moral turpitude of the System Member. If the Board were to determine that it was so caused, it then shall be the duty of the Board to deny the application or request. If the Board were to determine that it was not so caused, it shall grant the application or request in the percentage prescribed by subsection (b) of this section. The Board, upon its own motion or upon the written request of any Retired Member, retired pursuant to subsection (a) of this section, shall have the power to consider new evidence pertaining to the case of any such Retired Member and to increase or decrease the percentage of his incapacity or disability within the limitations prescribed in subsection (a) of this section. Any such increase or decrease shall be based only upon injuries or sickness for which he was retired. In the case of any former System Member who became such by reason of his resignation or discharge as a Department Member, the Board, in order to grant any application filed by him for a disability pension, must also determine, in addition to all of the foregoing, that any existing incapacity or disability upon his part occurred prior to the termination of his active status as a Department Member and had been continuous up to the date of the Board’s determinations. Any determination of the Board shall be made in writing but need state only the ultimate fact and not any of the evidentiary facts.
 
   (d)   Termination of Disability Pensions. The pension of any Retired Member, retired pursuant to subsection (a) or to subsection (b) of this section and whose active status as a Department Member had been terminated by reason of his retirement, shall cease when the incapacity or disability for which he had been retired shall cease and he either:
 
   (1)   shall have been restored to active duty as a Department Member in the same permanent rank which he had held as of the date of his retirement; or
 
   (2)   shall have been ordered restored to active duty as a Department Member in such same permanent rank and shall have declined, refused or neglected to report or to perform duties as such.
 
   The pension of any Retired Member, retired pursuant to subsection (a) or to subsection (b) of this section and whose active status as a Department Member had been terminated by reason of his resignation or discharge as such, shall cease when the incapacity or disability for which he had been retired shall cease. The Board shall have the power to hear and determine, upon its own motion or otherwise, all matters pertaining to the terminating of any such pension. Any determination of the Board to terminate any such pension shall be made in writing but need state only the ultimate fact and not any of the evidentiary facts.
 
 
Sec. 1414. Survivorship Pensions.
 
   (a)   Qualified Surviving Spouse and Children of Former Marriage.
 
   (1)   System Member’s Service-Connected Death. The qualified surviving spouse of a System Member who shall die while he is a Department Member, by reason of injuries received or sickness caused by the discharge of his duties, shall be paid, for life a monthly pension in an amount which shall be equal to 50% of such System 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 date of his death.
 
   (2)   System Member’s Nonservice-Connected Death. The qualified surviving spouse of a System Member who shall have five years of service or more since the date of his last regular and permanent appointment as a Department Member including his service of the required probationary period and who shall die while he is a Department Member, by reason of injuries or sickness other than injuries received or sickness caused by the discharge of his duties, shall be paid, for life a monthly pension in an amount which shall be equal to 40% of such System Member’s Nonservice-Connected Pension Base.
 
   (3)   System Member’s Death While on Service-Connected Disability Pension. The qualified surviving spouse of a Retired Member, who shall die while he is receiving a pension pursuant to Section 1412(a), 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 his retirement.
 
   (4)   System Member’s Death While on Nonservice-Connected Disability Pension. The qualified surviving spouse of a Retired Member, who shall die while he is receiving a pension pursuant to Section 1412(b), shall be paid, for life a monthly pension in an amount which shall be equal to 40% of such Retired Member’s Nonservice-Connected Pension Base.
 
   (5)   System Member’s Death While on Service Pension. The qualified surviving spouse of a Retired Member, who shall die while he is receiving a pension pursuant to Section 1408 concerning Service Pensions, 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 his pension, provided, however, that the percentage of his Normal Pension Base shall not exceed 55% for the purposes of this subsection.
 
   (6)   System Member’s Death While Eligible for Service Pension. The qualified surviving spouse of a System Member who shall die while he is a Department Member eligible for a pension pursuant to Section 1408 concerning Service Pensions by reason of injuries or sickness other than injuries received or sickness caused by the discharge of his duties, shall be paid for life a monthly pension in an amount which shall be equal to the same percentage of such System Member’s Normal Pension Base as the percentage thereof which would have been applicable to the calculation of his pension had he retired pursuant to Section 1408 concerning Service Pensions as of the date of his death but the percentage of his 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 Marriage to Qualified Survivor Spouse. Whenever any System Member or Retired Member shall die and leave surviving him, in addition to a qualified surviving spouse, a minor child or children or a dependent child or children of his marriage to the qualified surviving spouse then such qualified surviving spouse shall be paid an additional monthly pension in an amount which shall be equal to 25% of the amount of her pension as a qualified surviving spouse granted pursuant to any of the foregoing paragraphs of this subsection while there is one minor or dependent child, 40% while there are two minor or dependent children or a combination, and 50% while there are three or more minor or dependent children or a combination, and such additional monthly pension shall be the exclusive property of such qualified surviving spouse and not the property of any such minor child or dependent child.
 
   (B)   Surviving Spouse and Children of Former Marriage. Whenever any System Member or Retired Member shall die and leave surviving him, in addition to a qualified surviving spouse, a minor child or children or a dependent child or children of his marriage to a former spouse, 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 amount of the pension of the qualified surviving spouse granted pursuant to this section while there is one minor or dependent child, 40% while there are two minor or dependent children or a combination, and 50% while there are three or more minor 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 surviving spouse.
 
   (C)   Surviving Spouse and Children of Present and Former Marriages. Whenever any System Member or Retired Member shall die and leave surviving him, in addition to a qualified surviving spouse, a minor child or children or a dependent child or children of his marriage to the qualified surviving spouse and a minor child or children or a dependent child or children of his marriage to a former spouse, then a monthly pension shall be paid in an amount which shall be equal to 25% of the amount of the pension of the qualified surviving spouse granted pursuant to any of the foregoing paragraphs of this subsection while there is one minor or dependent child, 40% while there are two minor or dependent children or a combination, and 50% while there are three or more minor or dependent children or a combination. The amount of such monthly pension shall be divided by the number of minor or dependent children and shall be adjusted accordingly whenever any minor or dependent child shall cease to be such. The qualified surviving spouse shall be paid the portion of such monthly pension which shall be applicable to the number of her minor children or dependent children and the same shall be her exclusive property. The guardian or guardians of the estate or estates of the minor or dependent children who are not those of the qualified surviving spouse shall be paid the portion of such monthly pension which shall be applicable to such minor or dependent children and the same shall be the exclusive property of such children.
 
   (8)   Reinstatement of Pension of Reinstated Qualified Surviving Spouse. Subject to Section 1208 of the General Provisions for Fire and Police Pension Plans, any qualified surviving spouse who shall marry and thereby cease to be a qualified surviving spouse, shall be reinstated as a qualified surviving spouse as of:
 
   (A)   the date upon which a judgment or decree shall become final dissolving such marriage upon any ground or declaring a void or voidable marriage to have been null and void or voided, if such date shall be within five years from the date of the marriage ceremony; or
 
   (B)   the date upon which such marriage shall be dissolved by the death of the other party if such date shall be within five years from the date of the marriage ceremony.
 
   Such reinstated qualified surviving spouse shall be entitled to the reinstatement of her pension effective as of either such date, whichever shall be applicable, but shall not be entitled to the payment of any pension for the period prior to such applicable date and subsequent to the date of the marriage ceremony. The pension paid to any other Beneficiary or Beneficiaries during the period of the marriage or purported marriage of such reinstated qualified surviving spouse shall cease when her pension shall be reinstated, except as is otherwise provided in subsection (a)(7) of this section. However, should such reinstated qualified surviving spouse thereafter be a party to another marriage ceremony, her pension as such shall cease and never again shall be reinstated regardless of whether such marriage ceremony shall result in a valid marriage or in a voidable or void marriage and whether or not the same legally shall be terminated.
 
   (b)   Pension For Minor and Dependent Children. Whenever any System Member or Retired Member shall die, without leaving a qualified surviving spouse, the guardian of the estate of his minor child or children or dependent child or children shall be paid, until each such child shall cease to be a minor child 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 such member shall die, leaving a qualified surviving spouse who thereafter shall die or who thereafter shall cease to be a reinstated qualified surviving spouse, the guardian of the estate of his minor child or children or dependent child or children shall be paid, until each such child shall cease to be a minor child 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 child 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 his estate and shall be adjusted as each of them shall cease to be a minor child or dependent child in the manner set forth in subsection (a)(7) of this section.
 
   (c)   Pension for Dependent Parents. Whenever any System Member or Retired Member shall die, without leaving a qualified surviving spouse or a minor child or dependent child, a monthly pension pursuant to subsections (a)(1),(2),(3), (4), and (5) of this section, whichever shall be applicable, shall be paid to his dependent parent or 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 his or her necessary living expenses without a pension shall be entitled to have his or her pension reinstated.
 
   (d)   Determinations With Respect to Cause of Death, Dependent Child and Dependent Parent. The Board shall have the same power as that which has been given to it by Section 1412(c) and (d) in order to determine:
 
   (1)   the fact of whether a System Member’s death was service-connected or nonservice-connected for the purposes of Section 1414(a)(1) and (2);
 
   (2)   the fact of whether or not a child of a deceased System Member or Retired Member is a dependent child; and
 
   (3)   whether or not any parent of a deceased System Member or Retired 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 who had been determined by it to be a dependent child continues to be a dependent child, the fact of whether or not a parent who had been determined by it to be a dependent 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 his or her pension reinstated.
 
   (e)   Medical Reports and Hearings. The power of the Board to determine the fact of whether a System 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 physician. The determination hereinbefore referred to in this paragraph may at the option of the Board be made without a hearing pursuant to the provisions of subsection (d) of this section.
 
 
Sec. 1416. Tier 2 Pension Funds.
 
   (a)   Creation of Funds. Two entirely separate and distinct funds hereby are created and established for the payment of pension benefits pursuant to this Tier 2, certain other benefits as may be authorized from time to time pursuant to the enabling provisions of Section 1428 of this Tier 2 and for the payment of the administrative expenses of the Fire and Police Pension Plan – Tier 1 and Tier 2, one of which shall be known as the “Fire and Police Tier 2 Service Pension Fund” and the other of which shall be known as the “Fire and Police Tier 2 General Pension Fund.”
 
   The Fire and Police Tier 2 Service Pension Fund shall consist of:
 
   (1)   deductions made, pursuant to Section 1420, from the salaries of System Members;
 
   (2)   all contributions and donations to the Fire Department or to the Police Department for services by any System Members, except amounts of money donated to provide for any medal or permanent competitive award;
 
   (3)   all fines imposed upon System Members for violations of rules and regulations of the respective department in which they are Department Members;
 
   (4)   all proceeds from the sale of unclaimed property; and
 
   (5)   all interest, earnings and profits resulting from investments of such moneys.
 
   The Fire and Police Tier 2 General Pension Fund shall consist of:
 
   (1)   all moneys appropriated to the fund by the Council; and
 
   (2)   all interest, earnings and profits resulting from investments of such moneys.
 
   (b)   Use of Funds. The moneys in the Fire and Police Tier 2 Service Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of service pensions granted pursuant to Section 1408. The money in the Fire and Police Tier 2 General Pension Fund shall be used, other than for the investment thereof and except as hereinafter in this immediate paragraph specifically provided, exclusively for the payment of all pensions other than service pensions, such benefits as may be provided by ordinance adopted pursuant to the provisions of Section 1428 of this Tier 2 and of all administrative expenses of the Fire and Police Pension Plan Tier 1 and Tier 2 of the Charter.
 
   (c)   Transfer of Funds. In the event that the moneys in the Fire and Police Tier 2 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 money from the Fire and Police Tier 2 General Pension Fund. In no other event shall any of the money in either of the funds be commingled with any of the money in the other funds.
 
   (d)   General Obligations of City. In the event that the moneys in the Fire and Police Tier 1 Service Pension Fund or in the Fire and Police Tier 1 General Pension Fund should be insufficient, at any time, to pay all pensions or other benefits which are payable therefrom, respectively, then the Board shall have the power and authority to cause the Controller of the City to transfer to either of the funds sufficient moneys from the Fire and Police Tier 2 General Pension Fund. The obligations to pay benefits pursuant to this Tier 2 shall be general obligations of the City.
 
Sec. 1418. Actuarial Standards.
 
   (a)   Reserve Basis. The Tier 2 System shall be maintained on a reserve basis which, for the purposes of this Tier 2, shall mean one which provides for the accumulation and maintenance of the Fire and Police Tier 2 Service Pension Fund and the Fire and Police Tier 2 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 money 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 moneys with which they are to be paid in accordance with the provisions of Sections 1210(b)(2) and 1420.
 
   (b)   Actuarial Valuation. The Board shall secure an actuarial valuation showing the cost of maintaining the System 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 System 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 shall retain a competent consulting actuary for the purpose of making the necessary actuarial studies and reports on the required investigations and valuations.
 
   (c)   Interest Rate. The Board, from time to time and with the advice of the investment counsel, shall establish an assumed interest rate as in its judgment seems proper in the light of the experience and prospective earnings on the investments of the funds.
 
   (d)   Unrealized Profits or Losses. With the advice of the consulting actuary and of the investment counsel, the Board, for the purpose of the actuarial valuations, shall provide by rule for the manner and to the extent to which any unrealized profits or losses in the equity-type investments of the funds shall be taken into account.
 
 
Sec. 1420. Member Contributions – Tier 2.
 
   (a)   Member Contributions Required. Deductions shall be made from the salaries of System Members, and such deductions shall be deposited to the credit of and paid into the Fire and Police Tier 2 Service Pension Fund, but no further deductions shall be made from the salaries of System Members who have completed 30 years of service.
 
   (b)   Payroll Deduction. The administrative head of the Fire Department and of the Police Department shall cause to be shown on each and every payroll of such department a deduction equal to the sum of the following items:
 
   (1)   6% of the amount of salary, as shown on each such payroll, of each System Member whose name appears thereon; and
 
   (2)   that percentage of the amount of salary, as shown on each such payroll, of each System Member whose name appears thereon, but not to exceed 1%, which shall be equal to ½ of the cost of the cost of living benefits provided in this Tier 2 as shall be determined by the Board upon an actuarial valuation obtained by it pursuant to Section 1418.
 
   The Board, from time to time, shall certify in writing to the administrative head of each such department and to the Controller any change in the deductions to be made pursuant to subsection (b)(2) above, and any such change shall become effective as of the next following July 1.
 
   (c)   Transfer of Total Member Contributions. The administrative head of each department shall certify to the Controller on each payroll the amount to be deducted from the salary of each System Member whose name appears thereon, and shall cause to be drawn a payroll check in favor of the Board for the total amount of deductions from the salaries of such System Members as shown on each payroll of such department, and the Board shall deposit the payroll check to the credit of the Fire and Police Tier 2 Service Pension Fund. It shall be the duty of the administrative head of each department to cause to be furnished to the Board a copy of each and every payroll.
 
   (d)   Deemed Consent to Payroll Deduction. Each System Member shall be deemed to consent and agree to each deduction as provided herein, and the payment of each payroll check to the System Member shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the System Member during the period covered by each such payroll check, except such claims as the System Member may have to the benefits or payments provided by this Tier 2.
 
   (e)   Refund of Member Contributions. Every person who is a System Member on July 1, 1982 shall, upon termination of employment, be entitled to a refund of contributions made by him or her pursuant to the provisions of this section. A person not a System Member on July 1, 1982 and whose employment terminated prior to that date, shall not be entitled to a refund of contributions made by him or her during periods of membership prior to July 1, 1982.
 
   (f)   Limitations on Refunds. The refund of contributions shall be subject to the following conditions and limitations:
 
   (1)   Contributions Prior to June 30, 1982. Upon termination of employment as a Department Member for any reason except retirement pursuant to the provisions of this Tier 2, a System Member shall be entitled to have refunded to him or her all contributions made by such System Member to the Fire and Police Tier 2 Service Pension Fund on or prior to June 30, 1982, plus 6% interest per annum on such contributions calculated in the same manner as if interest had regularly been credited to the System Member’s contributions, compounded as of the last day of the last pay period of December and to the end of the last pay period preceding the effective date of termination of employment.
 
   (2)   Maintenance of Individual Accounts. Starting July 1, 1982, the Board shall maintain an individual account of the contributions of each System Member. Regular interest shall be credited to such individual accounts as of the last day of June and December of each year after July 1, 1982, at such rate as the Board may deem proper in light of the earnings of the funds of the Tier 2 System, exclusive of profits and losses on principal resulting from sales of securities. No such interest shall be credited at any other time. Interest shall be credited to the individual account of a System Member whose employment is terminated for any reason for any period of service between the next preceding last day of June or December and the end of the pay period preceding the date of such termination at the rate at which regular interest was last credited to System Members’ individual accounts.
 
   (3)   Election of Refund or Benefits. System Members who elect to receive a refund of contributions, forfeit the right to benefits provided in this Tier 2. After payment of any pension benefit has commenced, the System Member forfeits the right to a refund of his or her contributions. System Members who return to active duty from a disability pension may not thereafter have contributions made by them prior to their retirement on such disability pension refunded. A terminated System Member who had elected to have contributions returned, but who reenters service and again becomes a System Member shall, not withstanding any provision of this Tier 2 to the contrary, not be entitled to credit for years of service previously earned unless he or she shall first have repaid the amount of contributions and interest and an amount calculated as interest which would have been earned between the date of original termination of status as a System Member and the date of reentry into service as a Department Member.
 
   (4)   Beneficiary Designation. System Members shall have the right to designate persons who shall be entitled to receive money to which a System Member would otherwise be entitled upon termination of employment, to be payable to such designated person or persons upon the System Member’s death, but no such money shall become payable if any person should be entitled to any other benefit provided in this Tier 2. The Board shall adopt appropriate forms for the designation by System Members of persons who shall be his or her beneficiaries.
 
 
Sec. 1422. Cost of Living Adjustments.
 
   (a)   Determination of Cost of Living Increase or Decrease. The Board, before May 1, of each year commencing with the year 1967, shall determine the percentage of the annual increase or decrease in the cost of living as of March 1, of that year from March 1, of the preceding year, as shown by the consumer price index published by the Bureau of Labor Statistics for the area in which the City is located. If any such index were not to reflect the cost of living as of a particular March 1, then the index for the closest preceding date which shall have done so shall be used. If there were to be any change in the statistical method or the components which were used in any such index from those which were used in any such index of the preceding year with which a comparison is to be made, then the Board, to the extent possible, shall adjust any such differences therein for the purpose of determining the percentage of increase or decrease in the cost of living.
 
   (b)   Adjustments to be Made in Pensions. Commencing as of July 1 of the year in which the Board shall determine the percentage of increase or decrease in the cost of living, the monthly amounts of certain pensions, as hereinafter identified and upon the conditions hereunder stated therefor, shall be increased or decreased by reason of such determined percentage of increase or decrease in the cost of living but not to exceed, however, 2% in any given year. Such determined percentage of increase or decrease in the cost of living, as so limited, shall be applied to the monthly amounts of such pensions which shall be payable prior to the applicable July 1, including any previous percentage of increase or decrease in the cost of living which had been made with respect thereto.
 
   (c)   Application of Adjustments. The percentage of increase or decrease in the cost of living first shall be applied to:
 
   (1)   Service Pensioners with Less than 25 Years Service. The pension of any Retired Member who shall retire pursuant to Section 1408, with less than 25 years of service, upon the July 1 following the date upon which he would have had 25 years of service if he had not retired prior thereto;
 
   (2)   Service Pensioners with at Least 25 Years Service. The pension of any Retired Member who shall retire pursuant to Section 1408, with 25 years of service or more upon the July 1, following the effective date of his pension;
 
   (3)   Survivor Pensions of Members with Less Than 26 Years Service. The pension of any Beneficiary or Beneficiaries which shall be granted pursuant to Section 1414(a)(5) and(6), whether by reason of the provisions thereof or of those of Section 1414(b) and (c), including any additional pension amounts payable pursuant to Section 1414(a)(7), following the death, with less than 26 years of service, of a Retired Member who had been retired pursuant to Section 1408 or of a System Member who had become eligible to retire pursuant thereto, upon the July 1, following the date upon which such Retired Member or such System Member, as the case may be, would have had 26 years of service if he, the Retired Member, had not retired prior thereto and had been alive on that date, or if he, the System Member, had been alive on that date; and
 
   (4)   Survivor Pensions of Members with at Least 26 Years Service. The pension of any Beneficiary or Beneficiaries which shall be granted pursuant to Section 1414(a)(5) or (6), whether by reason of the provisions thereof or of those of Section 1414(b) or (c), including any additional amounts payable pursuant to Section 1414(a)(7), following the death, with 26 Years of Service or more, of a Retired Member who had been retired pursuant to Section 1408 or of a System Member who had become eligible to retire pursuant thereto, upon the July 1, following the effective date of the pension of such Beneficiary or Beneficiaries.
 
   (5)   Certain Survivor Pension Beneficiaries. The pension which shall become payable to any minor child or children or dependent child or children, whenever any qualified surviving spouse or reinstated qualified surviving spouse shall cease to be such, shall commence in the same monthly amount which then would have been payable if such pension had become effective upon the date following the date of death of the System Member or Retired Member and thereafter it shall be adjusted as otherwise provided in this section. The pension which shall become payable to any reinstated qualified surviving spouse, as reinstated pursuant to Section 1414(a)(8), shall commence in the same monthly amount which then would have been payable if she never had ceased to be a qualified surviving spouse and thereafter it shall be adjusted as otherwise provided in this section. The pension which shall become payable to any reinstated dependent parent or parents, as reinstated pursuant to Section 1414(c), shall commence in the same monthly amount which then would have been payable if he or she or each of them never had ceased to be a dependent parent and thereafter it shall be adjusted as otherwise provided in this section.
 
   (6)   Limitation on Reductions. The amount of any pension referred to in (1), (2), (3), (4) or (5) of this subsection never shall be reduced, by reason of the application thereto of this section, to an amount less than the amount thereof payable pursuant to the provisions of this Tier 2 other than those of this section.
 
   (d)   Carryover of Excess Adjustments. If the percentage of increase or decrease in the cost of living in any year, as determined by the Board, were to exceed 2% as compared with the cost of living as of March 1, of the preceding year, the percentage of increase or decrease in the cost of living in excess of 2% shall be carried over and added to or subtracted from the percentage of increase or decrease in the cost of living in the succeeding year, and such procedure shall be complied with from year to year.
 
 
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