(A) Basic benefit. In the event of the death of a member prior to retirement, disability, or termination, a death benefit shall be payable to the deceased member's beneficiary in an amount equal to one year of an employee's base salary at the time of death plus a refund of the member's contributions accumulated with interest.
(B) Supplemental benefit. In addition, any member eligible under the system as of the effective date shall have the option of selecting a supplemental death benefit in an amount up to that provided him under the prior plan, but not to exceed $40,000. The supplemental death benefit coverage shall terminate upon the earliest of the member's retirement, disability, termination of employment as an employee, or when a member becomes eligible for full primary Social Security old age benefits. Members selecting a supplemental death benefit shall be required to pay the full cost of the benefit through payroll deduction in the same manner as regular employee contributions. The cost shall be determined on a one year term basis and on the basis of 150% of the Male 1951 Group Annuity Mortality Table Projected by Scale C to 1970 (regraduated). Under procedures established by the Board of Pension Trustees, the cost for each member affected shall be redetermined annually based upon his age at that time. The cost of supplemental death benefits shall be deducted from the member's pay, and accounted for, separately from regular employee contributions to this system, and shall not be considered as employee contributions under the system. These deductions shall not be refundable, nor shall any interest be credited to them.
(C) Method of payment. The preretirement death benefit prescribed herein shall be paid as follows.
(1) The death benefit related to annual earnings shall be payable in equal monthly installments for 48 months, beginning the first month following proof of death.
(2) The refund of the member's contributions and interest shall be paid in a single lump sum immediately on proof of death. However, the Board shall have the authority under special circumstances as determined by the Board to approve any alternative methods of payment.
(D) Benefit for vested members and members eligible for early or normal retirement. The beneficiary of a member who is vested or is eligible for early or normal retirement but who becomes deceased while still actively employed by the city or after a vested termination with the city shall receive on a monthly basis for a period of ten years the vested benefit which would have been payable to the deceased member had he retired on the date of death under Option 2, ten-year certain and life thereafter. This benefit shall be payable in lieu of the basic benefit described in subsection (A) above but shall be subject to a minimum actuarial lump sum value equal to that of the basic benefit.
(E) Exclusions, limitations, and other provisions relating to preretirement death benefits. No death benefits shall be payable from the retirement system other than a refund of accumulated member contributions plus interest for any of the following.
(1) Death due to intentionally self-inflicted injuries during the first two years of member's employment.
(2) Death resulting from the commission by a member of, or an attempt by a member to commit, an assault, battery, or felony.
(3) Death resulting from the use of alcohol, narcotics, or other similar substances or dangerous drugs during the first two years of a member's employment.
(4) Death occurring while on leave of absence, during voluntary or involuntary service with the armed forces of the United States, while transferred to an employment category within the city not covered by this plan, or during any period of time during which the employee is not receiving compensation from the city and contributing to the retirement system.
(5) Death resulting from a physical or mental condition which, in the opinion of the Board of Pension Trustees based upon medical evidence or records, already existed at the commencement of the member's employment by the city. The decision of the Board of Pension Trustees shall be final and conclusive.
(F) Required distribution of benefits. The entire interest of an employee shall be distributed no later than the required beginning date, or beginning no later than the required beginning date over the life of the employee, the lives of the employee and a designated beneficiary, a period not extending beyond the life expectancy of the employee, or a period not extending beyond the life expectancy of the employee and a designated beneficiary. The required beginning date is April 1 of the calendar year following the calendar year in which the employee reaches age 70½ for all plan participants. A designated beneficiary is any individual designated as a beneficiary by the employee.
('58 Code, § 11.11) (Ord. 73-3, passed 11-8-72; Am. Ord. 78-21, passed 12-20-77; Am. Ord. 79-31, passed 1-16-79; Am. Ord. 79-52, passed 5-15-79; Am. Ord. 88-60, passed 5-24-88; Am. Ord. 91-16, passed 12-4-90; Am. Ord. 95-33, passed 1-3-95; Am. Ord. 95-50, passed 3-28-95)