(a) Employees’ Retirement and Benefit Fund.
(1) Council does hereby establish an Employees' Retirement and Benefit Fund for the employees of the City as set forth and described in West Virginia Code 8-22-2, by adopting all of the terms and provisions of West Virginia Code Article 8-22.
(2) The City's Employees' Retirement and Benefit Fund is hereby amended to allow a designated beneficiary to receive retirement pension upon the death of a member receiving retirement pension pursuant to West Virginia Code 8-22-9(b).
(3) Contributions made by a member of the Fund shall be before tax, pursuant to Section 414 (h) (2) of the Internal Revenue Code [26 U.S.C. Sec. 414 (h) (2)].
(4) Members of the Fund who have been honorably discharged from the military shall receive up to two years prior service credit for military service prior to their employment with the City.
(5) "Average salary" means the highest annual salary earned by a member during a period of three consecutive years within the total service of the member pursuant to West Virginia Code 8-22-3 (k).
(6) Pursuant to West Virginia Code 8-22-5, employees who did not participate in the Fund when first eligible or who were not permitted to join the Fund when first eligible or who were not permitted to join the Fund when they were first hired due to the prior age sixty limitation, may now participate in the Fund. Such members may purchase prior service by paying into the Fund the employee contributions they would have contributed had they been in the Fund plus interest at the rate of six percent (6%) annually. Members shall be given two years to pay these contributions.
(Ord. 11243. Passed 5-6-97.)
(Ord. 11243. Passed 5-6-97.)
(7) There is hereby established an ad-hoc cost-of-living increase for retired members and their beneficiaries which shall be based upon the increase in the National Consumer Price Index, but in no case shall exceed three percent (3%) per annum. Such increase must be deemed financially feasible based upon an actuarial certification of the Municipal Employees’ Pension Fund. There may be future ad-hoc cost-of-living increases, however, such is contingent upon a yearly resolution which may be adopted by Council. The resolution must stipulate that an ad-hoc cost-of-living increase is financially feasible based upon an actuarial certification of the Municipal Employees’ Pension Fund. This ad-hoc cost-of-living increase will be given in the form of one lump sum payment per calendar year.
(Ord. 11989. Passed 2-15-00.)
(Ord. 11989. Passed 2-15-00.)
(b) Defined Contribution Plan.
(1) Council does hereby establish a Defined Contribution Plan, which shall consist of one or more plans approved by Council by ordinance (collectively, the “Plan”).
(2) The Plan shall meet the requirements of Section 401(a) of the Internal Revenue Code and shall be administered pursuant to the plan and trust agreement to be incorporated by reference into the ordinance approving the Plan.
(3) Each new employee of the City may, within thirty days of commencement of employment, and each present employee of the City may:
A. On or before September 30, 1997,
B. Within thirty days after attaining ten years of total service credit, or
C. Within thirty days after attaining thirty-five years of total service credit,
make an irrevocable election to participate in the Plan and to waive any right to participate, or in the case of a present employee to participate further, in the Employees’ Retirement and Benefit Fund. In the case of a present employee so electing, that employee’s total service credit shall be frozen as of the election, and that employee shall be entitled only to those benefits under the Employees’ Retirement and Benefit Fund that shall have accrued as of the election, but shall accrue no further benefits under the Employees’ Retirement and Benefit Fund.
(4) The City shall contribute to the Plan an amount equal to six percent (6%) of earnings annually on behalf of each participating employee, and each participating employee shall contribute not less than six percent (6%) of earnings annually. Contributions made by the employee shall be before tax, pursuant to Section 414(h)(2) of the Internal Revenue Code (25 U.S.C. Sec. 414(h)(2)).
(5) “Employee” for the purpose of this section shall be defined as in Section 159.19(h) of this Code.
(Ord. 11243. Passed 5-6-97.)