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(a) Any member who has ten or more years of credited service may at any time prior to the effective date of his or her retirement, but not thereafter, elect option B provided in § 39.236 in the same manner as if he or she were then retiring from city employment, and nominate a beneficiary whom the board finds to be dependent upon the member for financial support. Prior to the effective date of the member's retirement, the member may revoke his or her election of option B and nomination of beneficiary and he or she may again elect the option B and nominate a beneficiary as provided in this division (a). His or her election of option B and nomination of beneficiary shall be automatically revoked upon the marriage or death of the beneficiary prior to the member's retirement. Upon the death of a member who has an option B election in force, the beneficiary shall immediately receive a retirement allowance computed according to the applicable § 39.230 or § 39.231 in the same manner in all respects as if the member had retired the day preceding the date of his or her death, notwithstanding that he or she might not have satisfied the applicable age and service requirements for retirement provided in § 39.227. The retirement allowance payable to the beneficiary shall not be less than $360 per year and shall be subject to § 39.244. If a member has an option B election in force at the time of his or her retirement, his or her election of option B and nomination of beneficiary shall thereafter continue in force, provided, however that prior to the effective date of the member's retirement, he or she shall have the right to elect to receive his or her retirement allowance as a straight life retirement allowance or under another option provided in § 39.236. No retirement allowance shall be paid under this division (a) on account of the death of a member if any benefits are or will become payable under § 39.245 on account of their death.
(b) (1) If a member has ten or more years of credited service and does not have an option B election provided in division (a) above in force, and dies while in the employ of the city, and leaves a spouse, the following benefits shall be paid:
A. 1. The spouse shall immediately receive a retirement allowance computed according to the applicable § 39.230 or § 39.231 in the same manner in all respects as if the member had retired the day preceding the date of his or her death, notwithstanding that he or she might not have satisfied the applicable age and service requirements for retirement provided in § 39.227, elected option B provided in § 39.236 and nominated his or her spouse as beneficiary; and
2. The retirement allowance payable to the spouse shall not be less than $360 per year and shall be subject to § 39.244.
B. If the deceased member does not leave a spouse eligible to receive a retirement allowance provided in this division (b), his or her accumulated contributions account at the time of his or her death shall be paid in accordance with § 39.247(b); and
C. In addition to the retirement allowance, if any, payable to the deceased member's spouse, their eligible children or eligible handicapped child shall each receive a pension of $200 per month, and shall be subject to § 39.244. A child's pension shall terminate upon attainment of age 18 years, adoption, marriage or death. A handicapped child's pension shall terminate upon adoption, marriage, full recovery from handicap or death.
(2) No benefits shall be paid under this division (b) on account of the death of a member if any benefits are or will become payable under § 39.245 on account of the member's death.
(c) Any benefits paid under this section shall comply with the distribution rules in § 39.245(b).
(1957 Rev. Ords., § 2.529; 1992 Code, § 35-41) (Ord. 49-80, passed 6-9-1980; Ord. 110-89, passed 10-16-1989; Ord. 110-90, passed 12-3-1990; Ord. 104-92, passed 12-7-1992; Ord. 118-16, passed 12-20-2016)
(a) If a member ceases to be employed by the city, for any reason except his or her retirement or death, before he or she has satisfied the age and service requirements for retirement provided in § 39.227, he or she shall be paid his or her accumulated contributions account upon his or her written request filed with the board.
(b) Should a member die and no retirement allowance or pension becomes or will become payable by the retirement system on account of his or her death, except as provided in § 39.245, his or her accumulated contributions account at the time of his or her death shall be paid to that person as he or she shall have nominated by written designation duly executed and filed with the board. If there is no designated person surviving the member, his or her accumulated contributions shall be paid to his or her legal representative.
(c) If a member dies without heirs, and without having nominated a beneficiary as provided in division (b) above, his or her accumulated contributions account at the time of his or her death may be used to pay his or her burial expenses, not to exceed a reasonable sum to be determined by the board, provided that he or she leaves no other estate sufficient for that purpose.
(d) Payments of refunds of accumulated contributions, as provided in this section, may be paid in a single sum or in installments according to the rules and regulations as the board may from time to time adopt.
(e) (1) Notwithstanding any provisions of the plan to the contrary that would otherwise limit a distributee's election under this rule, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(2) For the purposes of this division (e), the following definitions shall apply throughout this rule.
DIRECT ROLLOVER. A payment by the plan to the eligible retirement plan specified by the distributee.
DISTRIBUTEE. Includes an employee or former employee. Effective January 1, 2007, a DISTRIBUTEE further includes a nonspouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code § 401(a)(9)(E). However, a nonspouse beneficiary may only make a direct rollover to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity shall be treated as an "inherited" individual retirement account or annuity.
ELIGIBLE RETIREMENT PLAN.
1. The following that accepts a distributee's eligible rollover distribution;
a. An individual retirement account described in § 408(a) of the Internal Revenue Code;
b. An individual retirement annuity described in § 408(b) of the Internal Revenue Code;
c. An annuity plan described in § 403(a) of the Internal Revenue Code;
d. A qualified trust described in § 401(a) of the Internal Revenue Code;
e. On or after January 1, 2008, to a Roth IRA described in § 408A of the Internal Revenue Code; or
f. With respect to any distribution made after December 31, 2001, an annuity contract described in § 403(b) of the Internal Revenue Code or an eligible plan described under § 457(b) of the Internal Revenue Code, which is maintained by a state, political subdivision of a state or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into the plan from this plan.
An eligible rollover distribution does not include any other distribution which the Internal Revenue Service does not consider eligible for rollover treatment, such as certain corrective distributions necessary to comply with the provisions of § 415 of the Internal Revenue Code.
2. The definition of ELIGIBLE RETIREMENT PLAN shall also apply in the case of a distribution to a surviving spouse.
ELIGIBLE ROLLOVER DISTRIBUTION. Any distribution of all or any portion of the balance to the credit of the distributee, except that an ELIGIBLE ROLLOVER DISTRIBUTION does not include the following:
1. Any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;
2. Any distribution to the extent the distribution is required under § 401(a)(9) of the Internal Revenue Code; and
3. With respect to any distribution made prior to January 1, 2002, the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). With respect to any distribution made after December 31, 2001, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not included in gross income. However, that portion may be transferred only to an individual retirement account or annuity described in § 408(a) or (b) of the Internal Revenue Code, or to a qualified defined contribution plan described in §§ 401(a) or 403(a) of the Internal Revenue Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of the distribution which is includable in gross income and the portion of the distribution which is not so includable.
(1957 Rev. Ords., § 2.530; 1992 Code, § 35-42) (Ord. 5-05, passed 1-10-2005; Ord. 118-16, passed 12-20-2016)
(a) The accumulated contributions accounts shall be the accounts in which shall be accumulated, at regular interest, the contributions deducted from the compensations of members and from which shall be made refunds and transfers of accumulated contributions as provided in this plan.
(b) The contribution of a general member shall be 3% of the employee's compensation and the contribution of a police officer member shall be 8% of the employee's compensation. Effective January 6, 2014, the contribution of a general member shall be 4% of the employee's compensation; effective January 5, 2015, the contribution of a general member shall be 5% of the employee's compensation. Effective January 6, 2014, the contribution of a police officer member shall be 9% of the employee's compensation; effective January 5, 2015, the contribution of a police officer member shall be 10% of the employee's compensation.
(c) The officer responsible for making the payroll shall cause the contributions provided in division (b) above to be deducted from the compensation of each member on each and every payroll, for each and every payroll period, so long as he or she remains a member in the employ of the city. The members' contributions provided for in this section shall be made notwithstanding that the minimum compensation provided by law for any member shall be changed thereby. Every member shall be deemed to consent and agree to the deductions made and provided for in this section, and payment of his or her compensation less the deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by him or her during the period covered by the payment, except as to benefits provided by this subchapter. The contributions when deducted from the compensation of a member shall be credited to his or her individual account in the accumulated contributions accounts.
(d) At the expiration of a period of four years from and after the date a member's employment by the city terminated, any balance in his or her accumulated contributions account, unclaimed by him or her or his or her legal representative shall remain with the retirement system, provided that no retirement allowance will become payable by the retirement system on his or her account.
(e) In addition to the contributions deducted from the compensation of a member as provided in this section, the member shall pay into the accumulated contributions accounts, by a single contribution within six months after the date of reemployment, the amount required to be repaid by § 39.223. In no case shall any member be given credit for service rendered prior to the date the member withdrew the accumulated contributions until the member repays to the accumulated contributions accounts all amounts due the accumulated contributions accounts by the member.
(f) (1) The city shall pick up the member contribution required by division (b) above for all compensation earned after the effective date of this division (f). The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code. The city shall pick up the member contributions from funds established and available in the salaries account, which funds would otherwise have been designated as member contributions and paid to the retirement system. Member contributions picked up by the city pursuant to this division (f) shall be treated for all other purposes of this and other laws of the city in the same manner and to the same extent as member contributions made prior to the effective date of this division (f).
(2) Member contributions to the retirement system shall be paid by the city on behalf of all members. Payment of the member's contribution picked up by the city shall be made by reducing the amount of the compensation payable to those members and making payment of the amount directly to the retirement system. Contributions, although designated as member contributions, are being paid by the city in lieu of contributions by the members. Members do not have the option of choosing to receive the contributed amounts directly instead of having them paid by the city to the retirement system.
(3) The effective date of this division (f) shall be the first day of the first pay period after the city has received notification of approval from the Internal Revenue Service that, pursuant to § 414(h) of the United States Internal Revenue Code, the member contributions so picked up shall not be included in gross income for tax purposes until that time as they are distributed by refund or benefit payment, but the effective date shall not be prior to December 15, 2003.
(1957 Rev. Ords., § 2.531; 1992 Code, § 35-43) (Ord. 12-74, passed 4-8-1974; Ord. 123-78, passed 12-26-1978; Ord. 112-80, passed 11-24-1980; Ord. 125-81, passed 12-28-1981; Ord. 108-85, passed 12-2-1985; Ord. 58-86, passed 6-9-1986; Ord. 64-86, passed 6-30-1986; Ord. 18-89, passed 2-27-1989; Ord. 110-90, passed 12-3-1990; Ord. 88-91, passed 11-25-1991; Ord. 66-94, passed 7-25-1994; Ord. 22-98, passed 2-17-1998; Ord. 54-02, passed 7-8-2002; Ord. 05-04, passed 1-12-2004; Ord. 24-13, passed 5-7-2013; Ord. 118-16, passed 12-20-2016)
The retirement system shall be the fund from which shall be paid all annuities, pensions, retirement allowances, and administrative expenses payable as provided in this subchapter. Upon the return of a disability retirant to the employ of the city, his or her accumulated contributions, computed as of the date of his or her return, shall be credited to his or her individual accumulated contributions account.
(1957 Rev. Ords., § 2.532; 1992 Code, § 35-44; Ord. 118-16, passed 12-20-2016)
(a) (1) The retirement system shall be the fund to which shall be credited contributions made by the city to the retirement system, for the general division and the police division. Upon the basis of the mortality and other tables of experience, and regular interest, as the board shall from time to time adopt, the actuary shall annually compute the amounts due for:
A. Pensions being paid retirants and beneficiaries; and
B. Pensions to be paid on account of service rendered and to be rendered by members.
(2) The city's annual contributions required to finance the retirement system shall be appropriated by the council and shall be subject to § 39.252. The contributions shall be determined, for the general division and the police division, according to the following.
A. The city's appropriation for members' current service shall be a percent of their annual compensation which will produce amounts which if paid annually by the city during their future service will be sufficient to accumulate the assets at the time of their retirements for the pensions to be paid them based upon their future service.
B. The city's appropriation for members' accrued service shall be an amount which if paid annually by the city over a period of years, to be determined by the council, will amortize at regular interest the amounts for the accrued portions of the pensions to be paid them.
C. The city's appropriations for retirement allowances being paid retirants and beneficiaries shall be an amount which if paid annually by the city over a period of years, to be determined by the council, will amortize at regular interest the amounts for the accrued portions of the pensions to be paid them.
(b) (1) All contributions made by the city under this retirement system shall be deposited in the retirement system fund. However, contributions made by the city are expressly conditioned upon the initial qualification of the retirement system under the Internal Revenue Code. Upon the city's request, a contribution which was made by mistake of fact or conditioned upon initial qualification shall be returned to the city within one year after the payment of the contribution or the denial of the qualification.
(2) Except as otherwise provided, all assets of the retirement system, including investment
income, shall be retained for the exclusive benefit of members and their beneficiaries, shall be used to pay benefits to those persons or to pay administrative expenses to the extent not paid by the city, and shall not revert to or inure to the benefit of the city.
(3) In no event shall the city receive any amounts from the retirement system fund upon termination of the retirement system, except that, and notwithstanding any other provision of the retirement system, the city shall receive those amounts, if any, as may remain after the satisfaction of all liabilities of the retirement system and arising out of any variations between actual requirements and expected actuarial requirements.
(1957 Rev. Ords., § 2.533; 1992 Code, § 35-45) (Ord. 110-90, passed 12-3-1990; Ord. 36-95, passed 3-6-1995; Ord. 118-16, passed 12-20-2016)
There is hereby established a general division to cover the participation of the general members in the retirement system, and a police division to cover the participation of the police officer members. Separate accounting controls shall be maintained in the accumulated contributions accounts, for the general division and for the police division. The maintaining of separate accounting controls for the general division and the police division shall not cause the assets of the retirement system to be segregated in the divisions.
(1957 Rev. Ords., § 2.534; 1992 Code, § 35-46; Ord. 118-16, passed 12-20-2016)
(a) The administrative cost of the plan during the year;
(b) The actuarially determined cost of future benefits accruing to members during the year; and
(c) An amount sufficient to amortize any unfunded liability of the retirement system over a period not to exceed 40 years on the basis of reasonable and generally accepted actuarial assumptions.
(1957 Rev. Ords., § 2.535; 1992 Code, § 35-47) (Ord. 2491, passed 8-7-1967; Ord. 119-84, passed 8-27-1984; Ord. 108-85, passed 12-2-1985; Ord. 118-16, passed 12-20-2016)
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