(B) This Plan shall be established by the City Council by contracting with private insurance companies to furnish the necessary pension and welfare funds provided for, by, and through KRS 90.400, which has been adopted by reference in § 35.35(A). The minimum coverage of the Pension and Welfare Fund shall be as set forth in this section.
(C) Employee retirement plan.
(1) General objective. The general objective of this Plan is to produce a total retirement income, including primary Social Security, of about 45% to 50% of average pay after 30 years of membership in the Plan. The percentage will vary, of course, with the individual employee’s years of membership and earnings. Police and fire fighters become eligible for the Plan on the first day of any month on which they complete one year of service and attain the age of 21.
(2) Normal retirement date. The normal retirement date shall be the first of the month (or coincident with) the employee’s 62nd birthday.
(3) Retirement annuity.
(a) For each year of future service, the retirement annuity shall be approximately 1/2% of the first $4800 of each year’s annual earnings plus 1-1/2% of the excess, bought by the contract holder and the employees jointly.
(b) For each year of past service, the retirement annuity shall be 1/2% of the first $4800 of annual earnings on the effective date of the Plan, plus 1% of the excess, bought by the contract holder.
(4) Employee contributions. Employees shall contribute 3% per annum of salary toward defraying expenses of the program.
(5) Termination of employment. An employee has the choice of having the annuity begin at the normal retirement date as purchased by his own contributions, or to a refund of those contributions.
(6) Vested status. If an employee leaves his contribu-tion in the Plan on termination of his employment, his annuity will include:
(a) The future service annuity purchased by the contract-holder for him to the date of termination, provided he has either contributed for five years, or reached the age of 55 years at the date of termination, and
(b) The past service annuity purchased for him to the date of termination provided he has reached age 55 at the date of termination. If the past service annuity has not been purchased for an employee who terminates employment after he has reached age 55, the annuity will have to be purchased for him in regular order prior to his normal retirement date.
(7) Death of employee. The beneficiary receives a refund of the employee’s total contributions. If a police officer or firefighter was retired, the death benefit is reduced by the total of annuity payments already made.
(D) Future service schedule. The future service schedule shall be comprised of a benefit of approximately 1/2% of the first $4800 of annual earnings, plus l-l/2% of the excess by earnings classes in accordance with the following schedule:
For Each Year
In Earnings Class Unit of Monthly Police or Fire-
From Effective Date Annuity Purchased fighter Monthly
of This Subchapter Will Be Contribution
Under $2,820 $l.10 3%
2820 - 3179.99 1.25 3%
3180 - 3539.99 1.40 3%
3540 - 3899.99 1.55 3%
3900 - 4259.99 1.70 3%
4260 - 4619.99 1.85 3%
4620 - 4979.99 2.00 3%
4980 - 5339.99 2.45 3%
5340 - 5699.99 2.90 3%
5700 -6059.99 3.35 3%
Etc. by $360 steps Etc. by $ .45 steps Etc. by $1.35 steps
(E) For instance, that person earning $4800 a year will contribute $12 a month and will have purchased for him an annuity of $2 a month for each year of membership in that class. If he should remain in that class for 30 years, his total monthly future service annuity would be 30 times 2 a month, or 60 a month (720 a year) in addition to his Social Security. If a police officer’s or firefighter’s earnings class increases, his annuity will, of course, be greater.
(E) In addition to the foregoing coverage provided as minimum coverage, each police officer and firefighter shall apply any and all funds donated to him toward purchasing extra and additional coverage hereunder.
(F) The city shall provide a plan of Group Life and Accidental Death and Dismemberment Insurance of $5000 for each member of the Police and Fire Department with one year of service or more, and shall pay the cost.
(Ord. 6-1967, passed - - 67)