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(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)