A. Beginning on November 1, 1946, all the aforesaid officers and employees of the City of Reading shall pay into such fund semimonthly an amount equal to 3% of their monthly wages or salaries and beginning on January 1, 1960, all the aforesaid officers and employees of the City of Reading, who as members are integrated with federal Social Security, shall pay into such fund every payroll period an amount equal to 3 1/2% of their earnings and 5% in excess of that on which Social Security is payable, which shall be applied to the purpose of this part.
B. The Board hereby authorizes every joint coverage member of the optional retirement system to elect to receive compensation in accordance therewith without the reduction (commonly known as the "offset") set forth in Subsection (c) of the Act of the General Assembly of May 23, 1945, as amended, provided:
(1) The member makes his election to buy out his offset in writing in manner and form approved by the Board.
(2) The member makes his aforesaid election to buy out his offset before his date of retirement, which election to do so shall be irrevocable and forever binding upon the member.
(3) The member making his election to buy out his offset shall make a lump sum payment equivalent to 1 1/2% of his gross payroll earnings from the date of his affirmative election, retroactive to January 1, 1960, or, as to a member who became employed by the City after January 1, 1960, then an amount equivalent to 1 1/2% of his gross payroll earnings from the date of his affirmative election, retroactive to his date of employment by the City, after which time of lump sum payment the member shall pay to the fund by payroll deduction an amount equivalent to 5% of his gross earnings to a maximum annual gross allowed by Social Security (i.e., $65,400 for 1997).