(a) (1) The pension fund is hereby created. It shall be the fund in which shall be accumulated reserves for the payment of pensions payable from funds provided by the city.
(2) 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 reserves for:
A. Pensions being paid retirants and beneficiaries; and
B. Pensions likely to be paid on account of service rendered and to be rendered by members.
(3) The fund shall be financed by annual appropriations, to be made by the council, determined according to this division (a) and divisions (b), (c) and (d) below.
(b) The appropriations for members' current service shall be a percent of their annual compensations which will produce an amount which if paid annually by the city during their future service will be sufficient to provide the reserves at the time of their retirements, for the portions of the pensions to be paid them based upon their future service.
(c) The appropriation for members' accrued service shall be a percent of their annual compensations which will produce 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 unfunded pension funds for the accrued service portions of the pensions to which they might be entitled.
(d) The appropriation for pensions being paid retirants and beneficiaries shall be a percent of the annual compensations of members which will produce 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 unfunded amounts for pensions being paid retirants and beneficiaries.
(e) Until the reserves accumulated in the pension fund equal or exceed the present value of all pensions payable from the fund, the city's contributions to the pension fund, in any fiscal year, shall not be less than 12% of the aggregate compensations paid members during the preceding fiscal year.
(f) To cover all or part of the city's contributions to the pension fund, as provided in this section, the city may levy an annual tax upon the assessed valuation of the city for the current year, which levy shall be in addition to the amount authorized to be levied for general purposes. The levy shall be determined by the council as required in this section.
(g) All contributions made by the city under this pension fund shall be deposited in the pension fund. However, contributions made by the city are expressly conditioned upon the initial qualification of the pension fund 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.
(h) Except as otherwise provided in this section, all assets of the pension fund, 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.
(i) In no event shall the city receive any amounts from the fund upon termination of the pension fund, except that, and notwithstanding any other provision of the pension fund, the city shall receive those amounts, if any, as may remain after the satisfaction of all liabilities of the pension fund and arising out of any variations between actual requirements and expected actuarial requirements.
(1957 Rev. Ords., § 2.1127; 1992 Code, § 35-107) (Ord. 2696, passed 7-27-1970; Ord. 119-84, passed 8-27-1984; Ord. 110-90, passed 12-3-1990; Ord. 36-95, passed 3-6-1995; Ord. 118-16, passed 12-20-2016)