In addition to the retirement allowance which is authorized to be paid from the pension fund by this part, notwithstanding the limitation therein placed upon such retirement allowances and upon contributions, every member who shall become entitled to the retirement allowance shall be entitled to the payment of a "service increment" in accordance with and subject to the conditions hereinafter set forth:
A. Service increment shall be the sum obtained by computing the number of whole years after having served 20 years, required by this part, during which a contributor has been employed by the City of Reading and paid out of the City treasury and multiplying the said number of years so computed by an amount equal to 1/40 of the retirement allowance which has become payable to such contributor in accordance with the provisions of this Act. In computing the service increment, no employment after the contributor has reached the age of 65 years shall be included.
B. Each contributor who so chooses to become entitled to the service increments provided by this part, shall, from and after August 5, 1968, pay into the retirement fund a monthly sum in addition to his or her retirement contribution, which shall be equal to 1/2% of his or her salary; provided that such service increment contribution shall not be paid after a contributor has reached the age of 65 years.
C. Persons who were contributors on August 5, 1968, who have since reached the age of 65 years shall have his or her service increment computed on the years of employment prior to the date of reaching his or her 65th birthday.
D. Service increment contributions shall be paid at the same time and in the same manner as retirement contributions, and may be withdrawn in full, without interest, by persons who leave the employment of the said City, subject to the same conditions by which retirement contributions may be withdrawn, or by persons who retire before becoming entitled to any service increment.
E. All persons who are now contributors or were contributors to the retirement fund prior to January 1, 1988, shall be subject to the provisions of this part.