(A) Any member leaving the employment of the employer before his or her normal retirement date and before completing four years as a member shall receive a lump sum payment equal to his or her member’s account. A terminating member having completed four years or more as a member may elect to receive a lump sum payment equal to his or her member’s account whether or not he or she elects to receive such lump sum payment, his or her member’s account, if any, and employer’s account shall be replaced by a single account called his or her inactive member’s account, which at his or her election may be used to purchase a deferred annuity at a retirement age, or shall be paid to him or her in a lump sum at such an age. The amount in his or her inactive member’s account at the date of termination shall be equal to the sum of any amount remaining in his or her member’s account together with a percentage of the amount in his or her employer’s account. Said percentage shall depend on the number of credited years of service prior to the date of termination in accordance with the following table:
Years of Credited Service Upon Date of Termination | Percentage of Employer’s Account |
4 years | 40% |
5 years | 60% |
6 years | 80% |
7 years | 100% |
(B) Notwithstanding the foregoing, a member’s percentage of his or her employer’s account shall be 100% upon attaining his or her normal retirement date. As of January 5 of each year, each inactive member’s account will be credited with interest less expenses for the previous year.
(C) The forfeited percentage of the employer’s account shall reduce the amount of the employer’s regular contribution under § 6-5-11 of this article.
(D) For any employee who completes one hour of service with the employer on or after January 1, 1988, and who was ineligible to participate in the plan by virtue of the limitation appearing at the end of the first sentence of § 6-5-38 of this article, credited to such employee prior to January 1, 1988 shall be taken into account solely for the purpose of determining such employee’s percentage of employer’s account; provided, however, such employee’s years of credited service credited to the employee before January 1, 1988, shall not be taken into account for purposes of determining such employee’s percentage of employer’s account for years beginning on and after January 1, 1988.
(Ord. 3148, passed - -1990)