The retirement ordinance shall contain such provisions as the Council shall from time to time deem necessary to provide for the retirements of covered employees of the City who become superannuated because of age or total and permanent disability; to provide pensions to be paid said employees and option elections actuarially equated to said pensions; to provide pensions for certain primary dependents of employees who die from City service-connected causes; to provide pensions for certain primary dependents of employees with not less than twenty years of credited service who die, while in the employ of the City, from nonservice-connected causes; to provide for a Board of Trustees to administer the retirement system; to provide that contributions be made to the retirement system by the City and the covered employees; to provide for the investments of the reserve funds of the retirement system; and to carry out the provisions of this article and the retirement ordinance; provided that the retirement ordinance shall be subject to the following conditions:
(a) Provision shall be made to exclude policemen and firemen who are covered under the City of Southgate policemen and firemen retirement system from membership in the City of Southgate employees retirement system. Provision may be made to exclude certain classes of City employees from membership in the retirement system; provided that such exclusions shall not extend to City employees employed in positions normally requiring one thousand or more hours per annum.
(b) Except for his total and permanent disability, in no case shall voluntary retirement with a pension payable from funds of the retirement system be allowed any member prior to the date he (1) attains age sixty years and (2) acquires at least ten years of credited service.
(c) In no case shall a member's straight life pension exceed an amount equal to the number of years, and fraction of a year, of his credited service multiplied by two percent of his final average salary; less such years multiplied by 1.75 percent of his Social Security Primary Benefit payable under Title II of the Federal Social Security Act (OASDI) as in effect on the date his pension begins; provided that provision may be made for a minimum pension not to exceed twenty percent of his final average salary for a member who retires on account of his total and permanent disability.
(d) In no case shall the pensions to be provided dependents of a member who dies while in the employ of the City exceed the pensions to be provided for in paragraph (a) above, or workmen's compensation payable on account of the said member's death, whichever amount is greater.
(e) A member's final average salary shall be the average of the highest annual compensations paid him by the City and the former Ecorse Township during any period of five consecutive years of credited service contained within his last ten years of credited service immediately preceding his retirement. If he has less than five years of credited service, his final average salary shall be the average of his said annual compensations received during his total years of credited service.
(f) Each member of the retirement system shall contribute to the retirement system, by payroll deduction, not less than the sum of three percent of his annual compensation up to and including the maximum annual wages subject to Federal social security old-age and survivors insurance taxes, plus five percent of the portion, if any, of his annual compensation in excess of said maximum annual wages. Provision shall be made for the return of a member's accumulated contributions if he leaves City employment prior to becoming entitled to a pension payable from funds of the retirement system.
(g) The liabilities of the retirement system shall be actuarially evaluated annually by an actuary designated by the Board of Trustees. The said liabilities shall be financed by annual appropriations to be made by the Council, said appropriations to be determined as follows:
(h) The appropriations for members' current service shall be a percent or percents (percentage) of their annual compensations which will produce an amount which, when paid annually by the City during their future service, will be sufficient at the time of their retirements to provide the reserves, not financed by members' contributions, for the portions of the pensions to be paid them based upon their future service.
(i) The appropriations for members' accrued service shall be a percent or percents (percentage) of their annual compensations which will produce an amount which, when paid annually by the City over a period of years, to be determined by the Council, will amortize, at a prescribed rate of interest, the unfunded pension reserves for the accrued service portions of the provisions to which they might become entitled.
(j) The appropriations for pensions being paid retirants and beneficiaries shall be a percent or percents (percentage) of the annual compensations of members which will produce an amount which, when paid annually by the City over a period of years, to be determined by the council, will amortize, at a prescribed rate of interest, the unfunded pension reserves for pensions being paid retirants and beneficiaries.
(k) In no case shall social security taxes be paid from funds of the retirement system or from funds due the retirement system.
(Aug. 7, 1973)