Sec. 22-30(a). "Accrued benefit" means the amount of the retirement benefit that the member has earned as of any particular date, based on the member's average final monthly compensation and credited service as of the date of the calculation.
Sec. 22-30(b). "Accrued service" means a member's service credit under the system for vesting and benefit accrual purposes which is earned (1) for personal service rendered to the city in exchange for compensation (including certain approved leaves of absence), (2) for accrued and unused leave earned during employment with the city prior to entering the end of service program (subject to the restrictions set forth in section 22-36(b)(2)), or (3) in connection with a direct trustee-to-trustee transfer from the Arizona State Retirement System pursuant to section 22-36(c)(1). With regard to the accrued service earned pursuant to (1) or (2) above, a member shall earn 1/2080 of a year of service credit for each hour of compensation. A member who is compensated on less than a full-time basis shall receive credit for a proportionate part of a full year of accrued service. Accrued service shall be expressed as whole and fractional years.
Sec. 22-30(c). "Accumulated contributions account" means the sum of all member contributions made by the employee, not to include employer contributions, and the interest credited to the member contributions during the period the member contributions are on deposit with the Tucson Supplemental Retirement System.
Sec. 22-30(d). "Actuarial Equivalent" means a Retirement Benefit payment option of equal value to another Retirement Benefit payment option, computed on the basis of appropriate actuarial assumptions. The Board shall determine, in accordance with Section 22-44(h), the applicable mortality table and interest rates, which shall be used in making Actuarial Equivalent determinations under the System, upon receipt of advice and experience analysis from the System actuary. The actuarial assumptions approved by the Board shall be set forth in an "Addendum to TSRS Code Sec. 22-30(d) – TSRS Actuarial Assumptions" (the "Addendum") which shall be updated by the Board from time to time as necessary. The Addendum shall be maintained in the offices of the System Administrator.
Sec. 22-30(e). "Additional service" means whole and fractional years of additional service credit which is purchased by the member in accordance with section 22-36(c)(2) through section 22-36(g). Additional service is recognized for benefit accrual and benefit eligibility purposes hereunder, but is not recognized for vesting purposes.
Sec. 22-30(f). "Adjusted income base" means, for the purposes of section 22-39(f), the member's compensation as of the member's termination date, adjusted thereafter for each fiscal year of disability retirement to approximate the average compensation increase for active employees of the city. The member's termination date compensation shall be adjusted annually by the sum of (1) the actual city wide cost of living percentage increase for active employees funded by the city in the applicable fiscal year, plus (2) a three and eight-tenths percent (3.8%) average merit increase for any fiscal year during which merit increases for active employees are funded by the city. The adjusted income base shall be determined by the board, in its discretion and on a uniform and non-discriminatory basis, for any disabled member.
Sec. 22-30(g). "Alternate payee" means member's spouse, former spouse or dependent children/step-children or person identified as an alternate payee in a plan approved domestic relations or child support order.
Sec. 22-30(h). "Annual required contribution" or "ARC" means the annual amount necessary to fund all employee segment normal cost amounts plus that amount necessary to satisfy the annual amortization requirements for the system's unfunded accrued liability, as determined by the system's actuary in accordance with sound actuarial principles, and as set by the board on a fiscal year basis. The annual required contribution is expressed as a percentage of the city's active member payroll costs for a fiscal year. Changes in accrued liabilities and actuarial experience may increase or decrease the annual required contribution.
Sec. 22-30(i). "Average final monthly compensation" or "AFMC" means the member's average compensation for the applicable employment period, as defined below, within the one hundred twenty (120) months immediately preceding the member's termination date, during which the member's compensation was the highest. The "applicable employment period" for a tier I member shall be a period of thirty-six (36) consecutive calendar months of employment with the city and the "applicable employment period" for a tier II member shall be a period of sixty (60) consecutive calendar months of employment with the city. If the member has less than the number of consecutive calendar months of employment required for the applicable employment period calculation (thirty-six (36) months or sixty (60) months), the AFMC shall be the average of the compensation earned by the member during the period of employment with the city. For tier I members, accumulated unused vacation and sick leave hours shall be included in the thirty-six (36) month period at the member's final pay rate, with an equal number of hours subtracted from the beginning of the thirty-six (36) month period, provided that the member contribution requirements of section 22-34(f) are satisfied and that the inclusion of the accumulated unused vacation and sick leave hours does not result in a decrease in the AFMC. Accumulated unused vacation and sick leave hours shall not be included in the calculation of average final monthly compensation for tier II members. The calculation of average final monthly compensation is subject to the special adjustment rules set forth in section 22-43(b) (part-time employment) and section 22-43(c) (unpaid authorized leave). For the period beginning on July 1, 2009, and ending on June 30, 2010, any active member who is subject to a reduction in pay in lieu of furlough shall continue to receive compensation credit for purposes of AFMC calculation during the reduction period at the rate of pay in effect for the member immediately preceding the pay reductions in lieu of furlough.
Sec. 22-30(j). "Beneficiary" means any person(s), trust or estate entitled to receive benefits under this article as designated by a member of the system in accordance with section 22-33(f).
Sec. 22-30(k). "Board" means the Tucson Supplemental Retirement System Board of Trustees.
Sec. 22-30(l). "Code" means the Internal Revenue Code of 1986, as amended.
Sec. 22-30(m). "Compensation" means base salary, vacation and sick leave pay and worker's compensation pay equal to base salary for which an employee in a covered position receives credited service. In certain cases and pursuant to the provisions of this article, compensation may be imputed to hours included in credited service for which no services are performed. Compensation cannot be earned after retirement.
Sec. 22-30(n). "Credited service" means the accrued service and additional service to which the member or the member's beneficiary shall be entitled.
Sec. 22-30(o). "Death benefit" means the cash lump sum payable upon the death of a vested member and equal to two (2) times the value of the deceased member's accumulated contributions account.
Sec. 22-30(q). "Domestic relations order" means any judgment, decree, order or approval of a property settlement agreement entered in a court of competent jurisdiction and issued pursuant to a state domestic relations law that relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a member.
Sec. 22-30(s). "Employee segment normal cost" means the annual amount necessary to fund the benefits accrued under the system in a particular year based on member service and compensation, by each employee segments eligible for membership in the system for which the system actuary shall perform employee segment normal cost calculations: (i) members hired by the city prior to July 1, 2006, (ii) tier I members hired by the city on or after July 1, 2006, and (iii) tier II members.
Sec. 22-30(t). "Employer contribution" means the difference between the annual required contribution and the member contribution rate, determined on a fiscal year basis.
Sec. 22-30(u). "Interest" means the annual rate or rates of interest declared by the board from time to time in accordance with the provisions of section 22-44(h) and credited to the members' accumulated contributions accounts in accordance with the board's declaration. Interest is credited as simple interest with no compounding and is deposited two (2) times per year, subject to the authority of the board to modify the Interest crediting method from time to time.
Sec. 22-30(v). "Legal or personal representative" means the court appointed or duly authorized legal representative of an employee, a member, an estate or a minor child.
Sec. 22-30(w). "Member" means an employee who is eligible to accrue retirement benefits under the system or, as the context may indicate, a former employee who has accrued refund rights or retirement benefits under the system.
Sec. 22-30(y). "Normal retirement age" means the age at which a member is eligible for a normal service retirement. For tier I members hired by the city prior to July 1, 2009, the normal retirement age is sixty-two (62). For tier I members hired by the city on or after July 1, 2009, and prior to July 1, 2011, the normal retirement age is the later of the member's sixty-second (62nd) birthday or the date on which the member is credited with at least five (5) years of accrued service. For tier II members, the normal retirement age is the later of the member's sixty-fifth (65th) birthday or the date on which the member is credited with at least five (5) years of accrued service.
Sec. 22-30(z). "Normal retirement benefit" means the retirement benefit payable to a member who is eligible for a normal service retirement as set forth in section 22-37(a)(1)(A). For tier I members, the normal retirement benefit shall equal two and twenty-five one hundredths (2.25) percent of the member's average final monthly compensation multiplied by the number of years of the member's total credited service. For tier II members, the normal retirement benefit shall equal two and no one hundredths (2.00) percent of the member's average final monthly compensation multiplied by the number of years of the member's total credited service.
Sec. 22-30(aa) "Prior government or military service" means time as an employee of the United States government, a state of the United States, a political subdivision of a state, this political subdivision, a tribal government (with the exception of any services rendered to the tribal government after January 1, 2007, which were commercial in nature), the Armed Forces of the United States, a state's National Guard, the reserves of any military establishment of the United States or any state whether on active or reserve duty; and, such service is not treated as credited service with any other retirement system for which the member is entitled to receive a benefit.
Sec. 22-30(bb). "Qualified military service" means service in the uniformed services of the United States, as defined in section 414(u)(5) of the Code.
Sec. 22-30(cc). "Retirement benefit" means the monthly benefit payable to a member who satisfies the conditions for normal retirement, early retirement, deferred retirement or disability retirement.
Sec. 22-30(dd). "Retirement points rule" means, for tier I members, the rule of eighty (80). The rule of eighty (80) is defined as the sum of the member's age and years of credited service equaling at least eighty (80). For tier II members, the "retirement points rule" means the rule of eighty-five (85). The rule of eighty-five (85) is defined as the sum of the member's age and years of crediting service equaling at least eighty-five (85); provided, however, that the member is at least sixty (60) years of age.
Sec. 22-30(ee). "Spouse" means the lawfully recognized husband or wife of a member. The term "spouse" also includes the domestic partner of a member, provided that the member files a valid a domestic partnership registration statement with the city's finance department, in accordance with chapter 17, article IX of the Tucson Code, as amended. With regard to domestic partners, the system administrator may rely exclusively on the finance department's domestic partnership records. In its discretion, the system administrator may require any member or purported spouse to produce reasonable documentation of an individual's status as a spouse hereunder.
Sec. 22-30(ff). "System" means the Tucson Supplemental Retirement System, as set forth in the chapter 22, article III of the Tucson City Code, as amended.
Sec. 22-30(gg). "Termination date" means the member's last day of active employment with the city as the result of resignation, discharge, layoff, retirement, death or total and permanent disability.
Sec. 22-30(hh). "Tier I member" means a member who was hired by the city prior to July 1, 2011. A rehired member shall reenter the system as a tier I member only if all of the following conditions are satisfied as of the date of rehire: (1) The rehired employee was a tier I member of the system during the employee's previous employment with the city, (2) the rehired employee was a vested member as of the most recent termination date, and (3) the rehired employee has not requested a refund of the member's accumulated contributions account or a transfer of his accrued benefit in accordance with section 22-41. All other rehired members shall reenter the system as tier II members.
Sec. 22-30(ii). "Tier II member" means a member who was hired by the city on or after july 1, 2011, or a rehired member who is not entitled to be a tier I member as set forth in section 22-30(gg).
Sec. 22.30(jj). "Total and permanent disability" means the inability to engage in any substantial gainful activity with the city by reason of any medically determinable physical or mental impairment that can be expected to result in death or continue for a long and indefinite duration. If the Social Security Administration determines that a member is totally and permanently disabled for purposes of Social Security Disability Insurance, the Social Security Administration's determination shall be treated as strong evidence of total and permanent disability; provided, however, that the Board shall make an independent determination of the date on which any disability retirement benefit shall commence in accordance with section 22-39(b).
Sec. 22.30(kk). "Trust fund" means the custodial or trust account(s) maintained under the system as set forth in section 22-31.
Sec. 22-30(ll). "Vested" means a member who has accumulated a minimum of five (5) years of accrued service. A vested member is entitled to receive a retirement benefit under the system.
(Ord. No. 10657, § 1, 4-28-09, eff. 7-1-09; Ord. No. 10696, § 1, 8-5-09, eff. 7-1-09; Ord. No. 10711, § 1, 9-9-09, eff. 7-1-09; Ord. No. 10712, § 1, 9-9-09, eff. 7-1-09; Ord. No. 10915, § 1, 6-21-11, eff. 7-1-11; Ord. No. 11020, § 1, 9-11-12, eff. 7-1-09; Ord. No. 11062, §§ 1, 2, 3-27-13, eff. 7-1-13; Ord. No. 11327, § 1, 12-8-15, eff. 1-1-16; Ord. No. 11595, § 1, 10-23-18)