In addition to the definitions set forth in subsection 1-103(1) of the Code, the following definitions apply to this Title unless the context plainly requires otherwise:
(1) Accrued benefit. That portion of a member's prospective retirement benefit that has been earned or accrued to the date of reference.
(2) Actuarial equivalent. A benefit in a form other than a specified normal form of benefit provided under the Retirement System which, as of the date of reference, has the same single-sum dollar value as the benefit in the specified normal form. The actuarial assumptions to be utilized in calculating any actuarial equivalent shall include those actuarial assumptions as shall be adopted by the Board upon the recommendations of the Retirement System's actuary.
(3) Alternate payee. Any spouse, former spouse, child or dependent of a member who is recognized by a domestic relations order as having a right to receive all, or a portion of, the moneys payable to the member under this Title.
(4) Anniversary year. Any twelve-month period of employment ending on the same day of the year as the last day of the last full pay period before retirement.
(4.1) Annual salary. 7
(a) For employees in the civil service: The annual rate of pay for the employee established by the Civil Service pay plan applicable to the employee plus the longevity rate of pay to which the employee is entitled under the Civil Service Regulations or applicable collective bargaining agreement, if any.
(b) For employees not in the civil service: The annual rate of pay set for the employee by the appointing authority, or by law, including any longevity rate of pay to which an employee is entitled.
(c) For elected officials: The annual rate of pay provided by law.
(5) Approved domestic relations order. Any domestic relations order which has been determined to be approved in accordance with Section 22-1303.
(6) Average Final Compensation.
(a) For a member of Plan J, Plan L, or Plan Y, average final compensation shall be the average of the member's three (3) highest annual compensations calculated for either three (3) calendar years or three (3) anniversary years. If the member has less than three (3) years of credited service, exclusive of any purchase of other governmental service, average final compensation is equal to the average annual compensation received during such period of credited service.
(b) For a member of Plan D or Plan X, average final compensation shall be the highest of: 8
(.1) the average compensation upon which contributions have been made on behalf of the member during the five (5) calendar years of employment in which such compensation is highest;
(.2) the average compensation received by the member during the twelve (12) consecutive months of the member's employment in which such compensation is highest; or
(.3) the annual compensation of the member, calculated from the final pay period, and as defined in subsection 22-105(9)(a)(.1), except that such compensation shall exclude longevity payments.
(c) For a member of Plan A or Plan B, average final compensation shall be the average of the member's two (2) highest annual compensations calculated for either two (2) calendar years or two (2) anniversary years.
(d) For a member of Plan '10, average final compensation shall be the average of the member's five (5) highest annual compensations, calculated for either five (5) calendar years or five (5) anniversary years, except that for police and fire members of Plan '10 it shall mean the five highest annual compensations during the period when contributions are required under subsection 22-902(2)(e). If the member has less than five (5) years of credited service, exclusive of any purchase of other governmental service, average final compensation is equal to the average annual compensation received during such period of credited service. 9
(7) Beneficiary. Any person who is designated, pursuant to the provisions of this Title, to receive death benefits earned by the member upon a member's death.
(8) Board. The Board of Pensions and Retirement.
(9) Compensation.
(a) The gross pay, exclusive of any taxable fringe benefits, of any member for personal services as appears on the City payroll, subject to the following:
(.1) After July 1, 1972, compensation for all members of Plan D or Plan X shall include only base pay and longevity payments and shall exclude such items as overtime, holiday overtime pay, compensatory time, shift differential and any lump sum payment of benefits.
(.2) For members of Plan A, Plan B, or Plan L and for police or fire employee members of Plan '10, compensation shall include base pay, leave and longevity payments paid before a member's separation from service but shall exclude overtime, holiday overtime, compensatory time, shift differentials and any lump sum payment of benefits. 11
(.3) For members of Plan J or Plan Y and for municipal employee members of Plan '10, compensation shall include base pay, leave and longevity payments, overtime and holiday overtime paid before the member's separation from service, but shall exclude compensatory time, shift differentials and any lump sum payment of benefits. 12
(.4) Effective July 1, 2003, for members of Plan D or Plan B and for police employee members of Plan '10, compensation shall include, in addition to payments provided above, the four percent (4%) stress pay paid (increased to five percent (5%), effective July 1, 2010), in accordance with the collective bargaining agreement between the City and the Fraternal Order of Police. 13
(.5) Effective July 1, 2003, for members of Plan X or Plan A and for fire employee members of Plan '10, compensation shall include, in addition to payments provided above, premium pay, not to exceed a maximum of four percent (4%) of base salary, in accordance with the collective bargaining agreement between the City and the International Association of Fire Fighters. 14
(.6) For members of Plan 16, compensation shall be the lesser of: (.1) compensation as calculated for a member of Plan Y under subsection 22-105(9)(a)(.3); or (.2) the Stacked Hybrid Cap; provided, that for purposes of subsection 22-105(6)(e)(.1), subsection 22-105(10), subsection 22-401(4), subsection 22-801(3), and subsection 22-1404(1), compensation shall be as calculated for a member of Plan Y under subsection 22-105(9)(a)(.3). 15
(b) In cases where the City is ordered to pay a fee by state legislation, a court, or a court's delegate, the fee may be included in the compensation calculation, provided that the burden of proving the amount of any such fees paid is on the employee, and subject to compliance with any regulations by the Board of Pensions and Retirement. For example, transcript fees may be included in the compensation of a court stenographer. The Board shall, by regulation, provide for any requirements for proof of fees paid, such as deadlines and type of documents acceptable as form of proof and payment of applicable employee contributions. Under no circumstances shall the Board be required to accept proof of transcript fees and adjust pension amount for an employee after the effective date of the employee's retirement, nor after any deadline set forth in regulations adopted by the Board. 16
(c) In cases where an employee's salary is fixed by the City but paid at least partially by another agency, the compensation is equal to the total amount paid by the City and the other agency.
(d) Notwithstanding any provision of this Title to the contrary, a member's compensation taken into account for retirement benefit purposes under this Title shall not exceed the limitation under Section 401(a)(17) of the Tax Code. On and after July 1, 1996, the limitation under Section 401(a)(17) of the Tax Code means the federal Omnibus Budget Reconciliation Act of 1993 ("OBRA '93") (Public Law 103-66, 107 Stat. 312) annual compensation limit. The OBRA '93 annual compensation limit is one hundred fifty thousand dollars ($150,000), as adjusted by the Commissioner of Internal Revenue for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Tax Code. The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined (the "determination period") beginning in such calendar year. If a determination period consists of fewer than 12 months, the OBRA '93 compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12.
(e) A member receiving differential wage payments (as defined in Section 3401(h)(2) of the Tax Code) shall be treated as an employee of the City and the Board may, in its sole discretion, treat differential wage payments as compensation for purposes of determining benefits under the Plan, in such manner to all members on reasonably equivalent terms. This Section shall be construed in accordance with Section 414(u)(12) of the Tax Code, Internal Revenue Service Notice 2010-15 and any superseding/subsequent guidance. 17
(10) Credited service. Any period of service as an employee for which regular member contributions are made, or, with respect to members of Plan 16, would have been made had the member's compensation not exceeded the Stacked Hybrid Cap, and any other period of service for which credit is purchased in accordance with the provisions of Section 22-801 (Leaves of Absence Without Pay), Section 22-803 (Purchase of Prior City Service), Section 22-802 (Purchase of Governmental Service), Section 22-809 (Pension Credit for Former F.P.T.F. Employees), or Section 22-810 (Pension Credit for Former PIDC Employees), subject to such limitations and restrictions as are set forth in Chapter 22-800 (Purchase of Credited Service). 18
(11) Disabled member. Any member who has separated from service and is receiving service-connected disability benefits or ordinary disability benefits from the Retirement System.
(12) Domestic relations order. Any judgment, decree or order, including approval of a property settlement agreement, entered by a court of competent jurisdiction pursuant to a domestic relations law which relates to the marital property rights of the spouse or former spouse of a member, including the right to receive all, or a portion of, the moneys payable to that member under this Title in furtherance of the equitable distribution of marital assets. The term includes orders of support as that term is defined by 23 Pa. C.S. § 4302 (relating to definitions) and orders for the enforcement of arrearages as provided in 23 Pa. C.S. § 3703 (relating to enforcement of arrearages).
(12B) DROP account. The total amount credited to an individual DROP participant due to participation in the DROP.
(12C) DROP benefit. A member's total DROP account balance at the time the member separates from active service.
(12D) DROP entry date. The effective date of the member's participation in DROP.
(12E) DROP participant. A member who is participating in the DROP.
(12F) DROP period. The duration of a member's participation in the DROP, from the DROP entry date to the date the member separates from active service with the City.
(13) Elected Official. Any individual who was elected to City office in any general, municipal or special election.
(14) Elected Official Division. The Elected Official Division includes all current and former officials elected in any general, municipal or special election who take office on or after January 8, 1987.
(15) Employee. Any employee, officer, or official who is paid from the Treasury of the City.
(16) Final compensation. 19
(a) For members of Plan A, Plan B, Plan D, Plan J, Plan L, Plan X, Plan Y, and Plan '10, final compensation shall be the higher of either the rate of pay at separation from service or the total compensation for the last full year of service, including supplementary compensation received under Civil Service Regulation No. 32.
(b) For members of Plan 16, final compensation shall be the lesser of: (.1) final compensation calculated under subsection 22-105(16)(a); or (.2) the Stacked Hybrid Cap; provided, that for purposes of subsection 22-401(4), final compensation shall be as calculated for a member under subsection 22-105(16)(a).
(17) Fire Division New. The Fire Division New includes all current and former Fire employees, who are appointed on or after July 1, 1988. 20
(18) Fire Division Old. The Fire Division Old includes all current and former employees of the City who on the effective date of this Title are members, or who upon reemployment are entitled to be members, of Police-Fire Coverage Plan 50, established by an ordinance of City Council approved December 1, 1966 (Bill No. 2163), who are full-time Fire employees except those who are members of the Municipal Division Old. 21
(19) Fire employee. Any uniformed member of the fire fighting forces of the Fire Department of the City; any fire service paramedic. 22
(19.1) Guards represented by DC 33. Members represented by AFSCME, District Council 33, who are "guards" within the meaning of Section 805 of the Public Employee Relations Act, Act 1970-195, P.L. 563, 43 P.S. § 1101.805. 23
(20) Irrevocable beneficiary. The person or persons permanently designated, in writing to the Board, by a member pursuant to an approved domestic relations order to receive all, or a portion of, benefits payable upon the death of such member.
(21) Irrevocable survivor. The person permanently designated, in writing to the Board, by a member pursuant to an approved domestic relations order to receive an annuity upon the death of such member.
(22) Medical Panel. A panel of physicians designated by the Board to conduct such medical examinations and make such investigations and certifications as may be required by this Title or the Board.
(23) Member. Any employee or former employee of the City who satisfies the conditions for membership in the Retirement System and the appropriate plan. This definition shall not apply to the capitalized term "Member" as used in Chapter 22-1400. 24
(24) Member contributions. Payments made to the Retirement System by a member for the provision of service retirement benefits, separation retirement benefits, optional early retirement benefits, death benefits and disability benefits. This definition shall not apply to the term as used in Chapter 22-1400. 25
(25) Minimum retirement age. The youngest age at which an employee may retire from City service and receive full service retirement benefits, or the age at which a separated member may receive full separation service retirement benefits. The minimum retirement age for the various plans of the Retirement System is as follows:
(a) Plan A: fifty (50);
(b) Plan B: fifty (50);
(c) Plan D: forty-five (45);
(d) Plan J: fifty-five (55);
(e) Plan L: fifty-five (55);
(f) Plan X: forty-five (45);
(g) Plan Y: sixty (60);
(h) Plan '10: fifty (50) for police or fire employees; 26
(i) Plan '10: sixty (60) for municipal employees; 27
(j) Plan '10: fifty-five (55) for elected officials; and 28
(k) Plan 16: sixty (60). 29
(26) Municipal Division New. The Municipal Division New includes all current and former employees of the City appointed on or after January 8, 1987 who are not included in the Police Division New or the Fire Division New.
(27) Municipal Division Old. The Municipal Division Old includes all current and former employees of the City who on the effective date of this Title are members, or who upon reemployment are entitled to be members, of Municipal Revised Coverage Plan 60, established by an ordinance of City Council approved April 27, 1967 (Bill No. 2318) who are not included in the Police Division Old or in the Fire Division Old.
(28) Municipal employee. Any employee who is neither a police employee nor a fire employee.
(28.1) OHCD employees. Employees represented by AFSCME, District Council 33, who work for the Office with responsibility for Housing and Community Development. 30
(29) Pickup contributions. Regular member contributions to the Retirement System made by the City on behalf of members for current service on or after January 1, 1983.
(30) Plan. As to any member, the plan as stated in Section 22-104 whose features apply to a particular Division during such member's period of credited service.
(31) Police Division New. The Police Division New includes all current and former uniformed officers and investigatory employees of the Police Department or the District Attorney's Office of the City who are appointed on or after July 1, 1988.
(32) Police Division Old. The Police Division Old includes all current and former employees of the City who on the effective date of this Title are members, or who upon reemployment are entitled to be members, of Police- Fire Coverage Plan 50, established by an ordinance of City Council approved December 1, 1966 (Bill No. 2163) who are full-time uniformed officers or investigatory employees of the Police Department or the District Attorney's Office, except those who are members of the Municipal Division Old.
(33) Police Employee. Any uniformed or investigatory employee of the Police Department or the District Attorney's Office of the City, except those who are members of the Municipal Division.
(34) Reemployed Employee. Any employee who had worked for the City, separated from City employment, and became an employee of the City again.
(35) Required beginning date. The April 1 of the calendar year next following the calendar year in which the member attains age 70-1/2, or if later, the April 1 of the calendar year next following the calendar year in which the member retires.
(36) Retired member. Any member who has retired from City employment and is entitled to retirement benefits from the Retirement System.
(37) Retirement. Separation from service and satisfaction of all of the conditions for distribution of retirement benefits under this Title.
(38) Retirement benefits. Payments made to a member of the Retirement System which include service retirement benefits, separation retirement benefits, optional early retirement benefits, service-connected disability retirement benefits, and ordinary disability retirement benefits.
(39) Retirement system. The City of Philadelphia Public Employees Retirement System which encompasses the various plans established for the exclusive benefit of the employees of the City and their beneficiaries.
(40) Retirement system year. The twelve-month period commencing each July 1 and ending on the subsequent June 30.
(41) Separate from service. To cease to be a City employee due to death, resignation, retirement or discharge from service with the City; but not including resignation or discharge from employment in the Office of the Clerk of Quarter Sessions or its successor agency, when that resignation or discharge is followed within five business days by employment by the First Judicial District, provided that the First Judicial District is a participant in the City of Philadelphia Public Employee Retirement System at the time of initial employment thereby. 31
(42) Separation date. The date on which separation from service occurs.
(43) Stacked Hybrid Cap. Sixty-five thousand dollars ($65,000), annually on a calendar year basis. 32
(44) Survivor. Any person who is designated to receive benefits upon the death of a retired member pursuant to the provisions of this Title.
(45) Tax Code. The Internal Revenue Code of 1986, as amended, and as it may be amended from time to time.
(46) Totally disabled. Medically incapable of any employment whatsoever.
(47) USERRA. The federal Uniformed Services Employment and Reemployment Rights Act of 1994 (Pub. L. 101-353, 38 U.S.C. §§ 4303 et seq.). Unless employed in a context which clearly refers to uniformed forces of the City, the terms "uniformed services" and "service in the uniformed services" shall have the respective meanings ascribed to them in USERRA (38 U.S.C. § 4303).
(48) Vested member. Any member who has the necessary service under the Retirement System, as provided for in Section 22-302 (Separation Retirement Benefits), to be vested.
Notes
| 6 | Subsections (12A) through (12F) added, Bill No. 990288-A (approved June 28, 1999). |
| 7 | Added, Bill No. 161013 (approved December 9, 2016). |
| 8 | Amended, Bill No. 000342 (approved January 23, 2001). Section 2 of Bill No. 000342 reads as follows: "Effective Date. This Ordinance shall be effective retroactively to January 13, 1999, except for amendments to Code Section 22-310, which shall be effective retroactively to June 28, 1999, and except that, as to members of Plan L, any part of this Ordinance that represents an increase or diminishment in the benefit rights of such members shall not apply to an elected official during any term of office to which such official was elected prior to the effective date of this Ordinance, but shall only apply to an elected official during a term of office to which such official was elected after the effective date of this Ordinance." |
| 9 | |
| 10 | Added, Bill No. 161013 (approved December 9, 2016). |
| 11 | |
| 12 | Amended, Bill No. 110836-A (approved December 21, 2011). |
| 13 | Added, Bill No. 060265 (approved June 8, 2006). Section 2 of Bill No. 060265 provides: "Effective Dates. The amendments provided in Section 1 of this Ordinance shall take effect retroactive to July 1, 2003." Amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. |
| 14 | Added, Bill No. 060265 (approved June 8, 2006). Section 2 of Bill No. 060265 provides: "Effective Dates. The amendments provided in Section 1 of this Ordinance shall take effect retroactive to July 1, 2003." Amended, Bill No. 100286 (approved June 23, 2010). See note 4 for effective date provisions. Amended, Bill No. 100780 (approved February 9, 2011). See note 4 for effective date provisions. |
| 15 | Added, Bill No. 161013 (approved December 9, 2016). |
| 16 | Amended, Bill No. 051066 (approved June 8, 2006). Section 2 of Bill No. 051066 provides: "Repealer. To the extent that it is inconsistent with Section 1 of this Ordinance, the Ordinance of May 7, 1981 (Bill No. 612), amending Section 201.1(aa)(1) of the Retirement System Ordinance, is hereby repealed." |
| 17 | Amended, Bill No. 150235 (approved May 20, 2015), effective July 1, 2009. |
| 18 | |
| 19 | Amended, Bill No. 161013 (approved December 9, 2016). |
| 20 | |
| 21 | |
| 22 | |
| 23 | Added, Bill No. 140741 (approved November 14, 2014). Section 2 of Bill No. 140741 provides: "Effective date. This Ordinance shall be effective immediately, except that it shall not apply to any Member of the Board of Revision of Taxes until the commencement of such Member's term, on or after the date this Ordinance becomes law." |
| 24 | Amended, Bill No. 161013 (approved December 9, 2016). |
| 25 | Amended, Bill No. 161013 (approved December 9, 2016). |
| 26 | |
| 27 | Added, Bill No. 110836-A (approved December 21, 2011). |
| 28 | Added, Bill No. 140743 (approved November 14, 2014). Section 2 of Bill No. 140743 provides: "Effective date. This Ordinance shall be effective immediately, except that it shall not apply to any elected official until the commencement of such elected official's term, on or after the date this Ordinance becomes law." |
| 29 | Added, Bill No. 161013 (approved December 9, 2016). |
| 30 | |
| 31 | Amended, Bill No. 100360 (approved October 12, 2010). |
| 32 |