§ 34.025 CONTRIBUTIONS.
   (A)   Members of the retirement system hired before June 8, 2011 shall make regular contributions to the trust fund at a rate equal to 7% of the member's earnings earned on or before October 11, 2006; at a rate equal to 8.5% of the member's earnings earned on or after October 12, 2006; and at a rate equal to 10% of the member's earnings earned on or after October 11, 2007.
   (B)   Members of the retirement system hired on or after June 8, 2011 and before December 8, 2020 shall make regular contributions to the trust fund at a rate equal to 7% of the member’s earnings for service before December 8, 2020, except as otherwise provided in subsection (D) and (E) below.
   (C)   Members of the retirement system hired on or after June 8, 2011 and before December 8, 2020, and members hired on or after December 8, 2020 shall make regular contributions to the trust fund at a rate equal to 10% of the member’s earnings for service on and after December 8, 2020.
   (D)   Members hired on or after June 8, 2011 and before December 8, 2020 who make an additional 3% member contribution for past service retroactive to the date
the member became eligible to participate in the pension plan shall be eligible for the same benefits as members hired before June 8, 2011 as provided in §§ 34.010 (definition of “average monthly earnings”), 34.020 (normal retirement benefit) and 34.038 (pension adjustments). Such members may make the additional 3% member contribution for past
service in any one or a combination of the following ways:
      (1)   Cash lump sum payment (single payment).
      (2)   Periodic cash lump sum payments over a period not exceeding the period between the date the member became eligible to participate in the pension plan and December 8, 2020, in accordance with a payment schedule agreed to by the member and pension board. In no event may such periodic payments extend beyond a member’s entry into the DROP or separation from city employment, whichever occurs first.
      (3)   Direct transfer (rollover) from an IRA or another eligible retirement plan, or a direct trustee-to-trustee transfer from an eligible governmental 457(b) plan or 403(b) plan, as permitted under Internal Revenue Code sections 457(e)(17) and 403(b)(13).
      (4)   Payroll deduction from the member’s earnings over a period not exceeding the period between the date the member became eligible to participate in the pension plan and December 8, 2020. In no event may such payroll deductions extend beyond a member’s entry into the DROP or separation from city employment, whichever occurs first.
      (5)   For members with more than 160 hours of unused vacation leave or more than 320 hours of unused sick leave on December 31, 2020, a combined total of 100 hours of unused vacation and/or sick leave may be applied toward the additional 3% member contribution for past service under the Retirement Plan. A member must elect to apply unused vacation and/or sick leave pursuant to this paragraph no later than January 31, 2021. Such election shall be irrevocable. The application of unused vacation and/or sick leave pursuant to this paragraph is intended to be pre-tax if possible, but in any event will be subject to IRS requirements.
   (E)   For members hired on or after June 8, 2011 and before December 8, 2020 who make the additional 3% member contribution for past service retroactive to the date the member became eligible to participate in the pension plan, the additional member contribution payment must be
paid in full before a member enters the DROP or separates from city employment, whichever occurs first. In the event a member has not paid the additional 3% member contribution, in full, before the member enters the DROP or separates from city employment, whichever occurs first, all additional 3% member contribution payments shall be refunded to the member, without interest, and the portion of the member’s retirement benefit based on service before December 8, 2020 shall be calculated in accordance with the Plan provisions for such members in effect before December 8, 2020.
   (F)   Eligible employees, as a condition of membership, shall agree in writing upon becoming a member to make the contributions specified herein. The contributions shall be deducted from earnings before the earnings are paid.
(‘58 Code, § 11.13)
   (G)   (1)   Effective January 1, 1991, the city shall assume and pay future member contributions in lieu of payroll deductions from member’s earnings. No member shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the city directly to the retirement system. All such contributions by the city shall be deemed and considered as a part of each member’s accumulated contributions and subject to all provisions of the retirement system pertaining to accumulated contributions of the members. The city pick up of contributions shall be the result of a reduction of each member’s base pay corresponding to the contribution amount, and is intended to comply with Section 414(H)(2) of the Internal Revenue Code. Base pay for purpose of overtime pay, pay supplements, including but not limited to merit pay, longevity pay, cost of living increases, and temporary assignment pay and retirement benefit calculations shall not be reduced.
      (2)   Effective upon final passage of this ordinance, the System shall assume and effectuate all responsibilities of the city as set forth in subsection (1) above for all management support employees employed by the System.
   (H)   (1)   So long as this system is in effect, the city shall make an annual contribution of the trust fund in an amount equal to the difference each year between the total of aggregate member contributions for the year and the amount necessary for the year to maintain the system on a sound actuarial basis as shown by the most recent actuarial valuation and report for the system. The total cost for any year shall be defined as the total of normal cost plus the additional amount sufficient to amortize the accrued past service liability over the appropriate period as is prescribed by state law. (‘58 Code, § 11.14)
      (2)   The annual contributions as set forth in subsection (1) above for management support employees employed by the Board of the System shall instead be made by, and the responsibility of, the System.
   (I)   Unless otherwise specified herein, all retirement, death, and disability benefits payable under this system are in lieu of a refund of member contributions.
      (1)   In any event however, each member shall be guaranteed the payment of benefits at least equal in total amount to his accumulated contributions plus interest at the rate of 3% per annum, compounded annually. In lieu of any other benefits hereunder, a member shall have the option on termination of employment as an employee of withdrawing all of his accumulated contributions plus interest.
      (2)   Notwithstanding the provisions of § 34.030 of this code, “pensions not assignable,” a member shall have the right to pledge and assign his or her accumulated contributions plus interest for the purpose and use as collateral in obtaining credit or loans with the Employees Credit Union of the city, only if the pledge or assignment specifies that the member must first exercise his or her option, upon termination of employment with the city, of withdrawing all of his or her accumulated contributions plus interest from the plan, and it is only out of those refunded contributions, and not employee retirement benefits, that the pledge and assignment is to be satisfied. (‘58 Code, § 11.15)
   (J)   All money representing member and city contributions and money from all other sources whatsoever, and held by or in custody of the city or any other entity, including insurance carriers or trustees, for purposes of funding pension benefits for members herein, shall be included in this fund, including any interest gathered by these monies, and shall be transferred into this fund.
(‘58 Code, § 11.16)
   (K)   No annual benefit provided for in this retirement plan for an individual member who has not previously participated in such plan, before January 1, 1980, shall exceed 100% of the member’s average final compensation.
(Ord. 73-3, passed 11-8-72; Am. Ord. 86-46, passed 3-4-86; Am. Ord. 91-16, passed 12-4-90; Am. Ord. 2006-34, passed 4-25-06; Am. Ord. 2007-22, passed 1-9-07; Am. Ord. 2007-35, passed 2-27-07; Am. Ord. 2011-53, passed 6-14-11; Am. Ord. 2021-31, passed 12-8-2020; Am. Ord. 2022-26, passed 2-8-22)