(a) Definitions. For the purpose of this section, the following words and phrases shall have the meaning ascribed to them in this subsection unless a different meaning is clearly indicated by the context:
Leave of Absence shall mean an approved uncompensated leave of absence from City Service, excluding any period of absence due to disciplinary suspension.
Buy Back shall mean purchase by a member of retirement credit for periods of eligible leaves of absence from City Service.
(b) Eligibility. Every person who is a member on the effective date of this section or who shall become a member subsequent thereto shall be eligible to buy back credit for periods of uncompensated leave of absence from City Service.
(c) Application of Buy Back Credit. A member electing to buy back periods of leave of absence from City Service may apply buy back credit to increase service retirement benefit credit. Buy back credit shall not be used to meet minimum qualification for service retirement, disability retirement or vested retirement or to qualify for the Family Death Benefit Plan, or to qualify for or increase health and dental insurance premium subsidies.
(d) Effect of Benefit Increases. If retirement benefits should be increased by City Council action pursuant to Section 1168 of the City Charter, such increased benefits shall be applicable to service credits purchased pursuant to this section.
(e) Minimum Periods of Purchase. A member electing to buy back credit for periods of uncompensated leave of absence shall file with the Board of Administration a written application identifying the time periods for which credit is to be purchased. A member may buy back credit for one or more periods of uncompensated leave, except, however, a minimum of six (6) months of leave in the aggregate shall be purchased. Total buy back credit purchased shall not exceed the member’s actual City Service at the time the buy back is concluded.
(f) Agreement with the City Employees’ Retirement System - Buy Back Methods. A member electing to buy back credit described herein shall enter into a written agreement with the Retirement System. Such agreement shall provide that the member contribute an amount equal to the present value of the liability incurred by the System in crediting the service based upon actuarial assumptions in effect at the time the agreement is entered into or amended and the projected retirement date contained in the agreement. Such agreement shall identify the method of payment of the additional contributions required to fund the purchased credit, which may be a specific dollar payment or percent of salary obligation. If a member elects to make the required contribution by a specific dollar payment, the payment may be made in a lump sum or in biweekly installments through payroll deduction over a period not to exceed five (5) years. If the member elects to enter into a percent of salary obligation, the member shall agree to make the contributions as a percent of salary through payroll deduction over a period extending from the date of the agreement with the Retirement System to a projected retirement date included in the agreement.
(g) Termination or Completion of Agreement. A member who has entered into a buy back agreement shall complete all contributions prior to the effective date of retirement in order to receive agreed upon buy back credit. If all contributions have not been completed and the member elects to retire, the member may receive prorated buy back credit for that portion of the service which has been purchased by contributions already made and forfeit the remainder of credit covered by the agreement, or may make a lump sum payment sufficient to complete the total payment covered by the agreement. In the event the member elects to retire at a later date than the age specified in the agreement after completing all payments, no adjustments shall be made in the buy back credit or the cost of such credit. A member who elects to terminate an after-tax agreement prior to its completion or at the time of retirement shall forfeit buy back credit and may elect to receive a cash refund of the buy back contributions and interest payable upon the earlier of death, termination of employment or retirement.
(h) Member’s Death. In the event of the death of a member who has entered into a buy back agreement, the surviving eligible beneficiary of the member may elect a refund of the buy back contributions and interest thereon, or elect to apply the credit, or a portion thereof, to the calculation of the benefits for which the survivor qualifies without the addition of buy back service credit, or elect to complete the terms of the agreement with a lump sum payment of the remaining amount owed.
(i) Administration. The administration of this section shall be under the exclusive management and control of the Board of Administration. Said Board shall have, and is hereby granted, full power and authority to adopt and enforce all such rules and regulations as it may deem necessary for the carrying out of the provisions of this ordinance. The Board of Administration shall have the right to construe this section, to interpret any provision thereof, to make rules and regulations relating to this section, and to determine any factual questions arising in connection with the operation of this section after such investigation or hearing as the Board may deem appropriate. Any decision made by the Board under the provisions of this section shall be conclusive and binding on all parties concerned.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.