§ 22-132. Benefits.

(a)

Service retirement income:

(1)

a.

Any member in service may retire upon written application to the board setting forth at what time, not less than 30 days nor more than 90 days subsequent to the execution and filing thereof, such person desires to be retired; provided, that at the time so specified for retirement such person shall have attained the age of 60, and provided that if such person became a member of the retirement system on or after October 1, 1989, such person shall have completed five years of creditable service and provided that if such person became a member of the retirement system on or after March 1, 2000, such person shall have completed ten years of creditable service, or shall have attained the age of 55 and shall have completed 25 years of creditable service or shall have attained the age of 51 and shall have completed 30 years of creditable service, notwithstanding that during such period of notification such person may have separated from service. Any provision of the retirement system notwithstanding, a member's benefit shall become fully vested (100 percent non-forfeitable) upon the attainment of his or her normal retirement age, as defined by the preceding sentence.

b.

Effective January 1, 1988, any member continuing in service beyond age 65 shall be credited with membership service for all periods of full-time employment rendered on or after January 1, 1988. In such cases, retirement income percentum shall be based on total creditable service earned to the date of retirement.

(2)

Upon retirement from service after September 1, 1949, a member shall receive a service retirement income as follows:

a.

Provided the member has attained eligibility for service retirement income as provided in subsection (a)(1) of this section, a monthly income for life equal to the retirement income percentum times the average final compensation.

b.

Should a beneficiary retiring after September 1, 1949, and receiving service retirement income die prior to receiving 120 service retirement income payments, the payments shall be continued to the person the member shall have nominated by written designation duly executed and filed with the board, if the person survives the member; otherwise, to the legal representative of the deceased member, until 120 monthly retirement income payments have been made.

(3)

Any person retired from the membership service due to length of service or age who returns to service with the City after retirement shall continue to receive retirement allowance as if such person had not returned to service; however, the City shall, as a condition to the return to service and payment of the retirement allowance, pay and credit periodically to the retirement fund an amount of money equivalent to the contributions which would have been made by such restored retiree had such retiree been required to contribute to the fund. Such contribution by the City shall be computed upon the basis of the retiree's earnable compensation, not including retirement allowance. Contributions made by the City pursuant to this subsection shall not be included in the computation of accumulated contributions pursuant to subsection (g)(2) of this section.

(b)

Ordinary disability retirement income:

(1)

Upon the written application of a member in service, a member's legal guardian or of the head of the member's department, any member who has seven or more years of creditable service may be retired by the board not less than 30 days next following the date of filing an application, on an ordinary disability retirement income. Two or more physicians nominated by the board shall certify that the member is mentally or physically totally incapacitated for the further performance of duty, that the incapacity is likely to be permanent and that the member should be retired.

(2)

Upon retirement for ordinary disability, a member shall receive a service retirement income if such person is eligible therefor; otherwise, such person shall receive a disability retirement income which shall consist of a monthly income during the continuance of such disability which shall be equal to the retirement income percentum at date of disability retirement times such person's average final compensation, or 30 percent of such person's average final compensation, whichever is the greater. In the event of the death of a member before the payment from the system of an amount equal to such deceased member's accumulated contributions, there shall be paid to such member's beneficiary or the estate, the difference between such accumulated contributions and the amount previously disbursed or paid.

(c)

Accidental disability retirement income:

(1)

Upon the application of a member, a member's legal guardian or of the head of such member's department, any member who has been totally and permanently incapacitated for duty as the natural and proximate result of an accident sustained in service as a member and occurring while in the actual performance of duty at some definite time and place, without willful negligence on such person's part, may be retired by the board if two or more physicians nominated by the board shall certify that the member is mentally or physically totally incapacitated for the further performance of duty, that the incapacity is likely to be permanent and that the member should be retired.

(2)

Upon retirement for accidental disability, a member shall receive a service retirement income if such member is eligible therefor; otherwise, such member shall receive in lieu of an ordinary disability retirement income an accidental disability retirement income which shall consist of a monthly income during the continuance of the disability of 65 percent of such member's average final compensation. In the event of the death of a member before the payment from the system of an amount equal to such deceased member's accumulated contributions, there shall be paid to such member's beneficiary or estate, the difference between such accumulated contributions and the amount previously disbursed or paid.

(d)

Return of contributions:

(1)

a.

Should a member who was enrolled in the retirement system on or before September 30, 1989, cease to be an employee except for death or retirement, such person, upon completion of the documentation prescribed by the board, shall be paid as soon as administratively practical, the amount of such member's accumulated contributions, if any, plus, provided such member has completed five years or more of continuous creditable service, the amount of specified employer contributions attributable to the member.

b.

A member who was enrolled in the retirement system on or after October 1, 1989, who ceases to be an employee except for death or retirement, upon completion of the documentation prescribed by the board, shall be paid as soon as administratively practical, the amount of such member's accumulated contributions, if any.

(2)

a.

Should a member who was enrolled in the retirement system on or before September 30, 1989, die after ceasing employment but prior to the date such member would have become eligible for service retirement, there shall be paid the amount of such member's accumulated contributions, if any, plus, provided such member has completed five or more years of continuous creditable service prior to the date of separation, the amount of specified employer contributions attributable to such member. Should a member who was enrolled in the retirement system on or before September 30, 1989, cease to be an employee by death, prior to the date such member would have become eligible for service retirement, such member's death benefit percentum times such member's accumulated contributions, if any, plus such member's accumulated contribution, shall be paid, to which sum shall be added the amount of specified employer contributions attributable to such member. Such payments shall be paid to the designated beneficiary, if such person or persons survive the member, otherwise to the legal representative of the deceased member or to the member's estate.

b.

Should a member who was enrolled in the retirement system on or after October 1, 1989, die after ceasing employment but prior to the date such member would have become eligible for service retirement, there shall be paid the amount of such member's accumulated contributions, if any. Should a member who was enrolled in the retirement system on or after October 1, 1989, cease to be an employee by death, prior to the date such person would have become eligible for service retirement, such person's death benefit percentum times such person's accumulated contributions, if any, plus such member's accumulated contributions, if any, shall be paid. Payments under this subsection shall be paid to the designated beneficiary if such person or persons survive the member, otherwise, to the legal representative of the deceased member or to the member's estate.

(3)

Should a member cease to be an employee by death after such date as the member becomes eligible for service retirement and prior to the member's retirement, the date of death shall be considered such person's retirement date and the retirement income payments shall be made in accordance with subsection (a)(2) of this section; provided, however, the designated beneficiary shall be entitled to elect such optional retirement income as the member would have been entitled to have selected had such person retired on the date of the death.

(4)

Should a member cease to be an employee by death after having completed 20 years of creditable service but before becoming eligible for service retirement, the designated beneficiary shall be allowed to leave the member's accumulated contributions, if any, in the retirement fund and receive, at what would have been the member's retirement age, a retirement income as provided for by subsection (a)(2) of this section; provided, however, the designated beneficiary may elect such optional retirement income as the member would have been entitled to have selected had such member lived to his retirement age and had retired on such date.

(5)

a.

Should a member cease to be an employee except for death or retirement, and after completing five or more years of creditable service, such member shall acquire a vested interest in retirement benefits pursuant to the following vesting schedule:

VESTING SCHEDULE

Completed Years of Creditable Service	Annual Vested Increment in Accrued Benefit	Cumulative Vested Interest in Accrued Benefit (%)
Less than 5	0	0
5	4	4
6	8	12
7	8	20
8	8	28
9	8	36
10	8	44
11	8	52
12	8	60
13	8	68
14	8	76
15	8	84
16	8	92
17	8	100

 

b.

Provided further, any member who has a vested interest at time of termination shall receive such benefit on a monthly, life annuity basis commencing at age 60.

c.

A member must live to age 60 in order to receive this vested benefit and no benefit shall be payable following such member's death; however, in the event of the death of a member with a vested interest, and without there having been received by the member an amount equal to such person's accumulated contributions, if any, such member's designated beneficiary or the member's legal representative or the member's estate shall be entitled to receive the balance due with respect to the accumulated contributions, if any, of the deceased member.

d.

Provided further, a member may elect, in lieu of the life annuity the actuarial equivalent in the other optional allowances under subsection (g) of this section.

e.

Provided further, a member who has a vested interest in retirement benefits shall retain the rights outlined in subsection (d)(1) of this section but shall forfeit all vested rights upon withdrawing such contributions.

f.

A member who has separated employment and acquired a vested benefit who has not begun receiving benefits and returns to work, may be reinstated in the retirement system and accrue additional membership service, if no withdrawal was made from the pension fund. No creditable service is allowable for the period between separation and return to employment.

(e)

Reexamination of members retired on account of disability:

(1)

Once each year during the first five years following retirement of a member on a disability retirement income and once in every three-year period thereafter, the board may, and upon such person's application shall, require any member receiving a disability retirement income to undergo a medical examination, the examination to be made at such place mutually agreed upon by the board and the member. Should any member refuse to submit to such medical examination, such member's disability retirement income may be discontinued until such member's withdrawal of the refusal, and should such member's refusal continue for one year, all such member's rights in and to retirement income may be revoked by the board.

(2)

Should it appear from a medical examination that a member receiving a disability retirement income is engaged in or is able to engage in a gainful occupation paying more than the difference between such member's disability retirement income and such member's average final compensation, the amount of the disability retirement income shall be reduced to an amount which, together with the amount earnable by such member, shall equal the amount of such member's average final compensation. Should his or her earning capacity be later changed, the amount of the disability retirement income may be further increased or decreased in like manner.

(f)

Restoration of members to service: Should a member receiving a disability retirement income be restored to or be in active service at a compensation equal to or greater than the average final compensation at retirement, or should any other member be restored to service, except as provided in subsection (a)(3) of this section, such member's disability retirement income shall cease, such member shall again become a member of the retirement system, and shall contribute thereafter at the same rate such member paid prior to retirement. Anything in this division to the contrary notwithstanding, such member's creditable service at the time of restoration to service as a member shall be the same as at the time of the previous disability retirement. If any member receiving a disability retirement income should be restored to membership, such member shall receive credit only for membership service in computing retirement income.

(g)

Optional allowances:

(1)

Provided that no election of an optional retirement income shall be effective in case a member dies within 30 days after retirement and that such a member shall be considered as an active member at the time of death, until the first payment on account of a service retirement income becomes normally due, any member may, with the approval of the board, elect to receive in lieu of the retirement income otherwise payable, the actuarial equivalent at that time of retirement income in an optional retirement income payable throughout life with the provision that:

a.

Option 1. If such member dies before receiving optional monthly retirement income payments for 240 months, the optional monthly payments shall be continued for the balance of the 240 months to such member's designated beneficiary, if any, otherwise, to the legal representative of such retired member or to the member's estate; or

b.

Option 2. Upon death, such member's optional retirement income shall be continued throughout the life of and paid to such member's survivor annuitant. If the survivor annuitant predeceases the member, the retirement income payment shall cease upon the member's death; or

c.

Option 3. Upon death, one-half of such person's optional retirement income shall be continued throughout the life of and paid to such member's survivor annuitant. If the survivor annuitant predeceases the member, the retirement income payment shall cease upon the member's death; or

d.

Option 4. Benefits are payable for the life of the member only (life annuity). Upon the member's death, no further benefits are payable to any designated beneficiary except as provided in subsection (2) of this section; or

e.

Option 5. Upon death, 75 percent of such person's optional retirement income shall be continued throughout the life of and paid to such member's survivor annuitant. If the survivor annuitant predeceases the member, the retirement income payment shall cease upon the member's death.

(2)

Regardless of the form of payment, in the event of the death of a member or death of the member's survivor annuitant or designated beneficiary before the payment from the retirement system of an amount equal to such member's accumulated contributions, the difference between such accumulated contributions and all amounts previously paid shall be paid to the member's designated beneficiary, or if none, to the legal representative of such member or to the member's estate.

(3)

Any member who is receiving a retirement income payment under option 2, option 3 or option 5 may change his or her survivor annuitant a maximum of two times after the commencement of payments without the approval of the board or any survivor annuitant and with no requirement to provide information regarding the health status of the survivor annuitant being replaced. A member may not change his or her form of retirement benefit after the commencement of payments. Upon completion and receipt of all required forms and the submission of all fees as prescribed by the board, the actuary retained by the board will determine the actuarially equivalent new benefit amount with the change in survivor annuitant taking into account the ages of the former survivor annuitant, the new survivor annuitant, and the member. Such change in survivor annuitant and in the member's benefit amount will be effective upon the receipt by the board of the final consent of the member and will be implemented as soon as administratively practical.

Any member who is receiving a retirement income payment under option 1 or under section 22-165(a)(2) may change his or her designated beneficiary at any time without the approval of the board or any designated beneficiary and with no requirement to provide information regarding the health status of the designated beneficiary being replaced.

(h)

Accidental retirement income offset by compensation benefits:

(1)

Any amounts which may be paid or payable under the provisions of any worker's compensation or similar law to a member or to the dependents of a member on account of any accidental disability shall, in such manner as the board shall approve, be offset and payable in lieu of any benefits payable under the provisions of the retirement system on account of the same accidental disability.

(2)

Effective September 30, 1951, service retirement incomes which were begun prior to September 1, 1949, shall be revised and the amount of such monthly payments thereafter shall be the actuarial equivalent of a monthly retirement income for life computed as of September 30, 1951, as follows: For each year of prior service plus each year of service in the employment of the City between November 1, 1944, and the date of retirement of the retired member, there shall be paid a monthly income equal to two percent of the average monthly earnable compensation paid by the City to the retired member during the last six years of employment.

(3)

Effective September 30, 1951, ordinary disability retirement incomes which were begun prior to September 1, 1949, shall be revised and such monthly payments thereafter shall be payable under the same conditions under which such incomes were granted, except that the amount of such monthly payments after September 30, 1951, shall not be less than the monthly payments which would have been paid if section 6(3) of Ordinance No. 1151-B had been effective on the date of beginning of such ordinary disability retirement incomes; provided that employment between November 1, 1944, and the date of retirement shall be considered as creditable service in respect to such ordinary disability retirement incomes.

(i)

Death benefit where death is direct result of occurrence arising in performance of service. In lieu of any other benefit under this system, a death benefit shall be payable on behalf of any member who dies as a direct result of an occurrence arising in the performance of service, the determination of which shall be by the board. The benefit shall be as follows: To the legal spouse of the member for a period of ten years a monthly benefit equal to 40 percent of such deceased member's basic compensation as of date of death, and 30 percent of basic compensation following the ten-year period and until death of the spouse, provided however, the benefit shall cease immediately upon the remarriage of the spouse.

(j)

Variable benefit.

(1)

Commencing October 1, 1972, there shall be established a variable benefit, which is to be funded through the application of a portion of the investment earnings and realized and unrealized gains and losses in excess of the rate of interest assumed for purposes of the actuarial valuation.

(2)

The basic benefit for each beneficiary shall be the amount of retirement income payable prior to any adjustment for the variable benefit. For the first year, commencing October 1, 1972, the variable benefit for beneficiaries who have been receiving retirement income for a period of at least one year shall equal six percent of the basic benefit. As of each subsequent October 1, the variable benefit shall be adjusted and payable to all beneficiaries who have been receiving retirement income for a period of at least one year. The variable benefit as of each October 1 shall be determined as soon as is possible after that date, but any adjustment shall be made effective on the following January 1.

(3)

For purposes of the variable benefit, a variable benefit fund shall be established, but only on an internal bookkeeping basis. The variable benefit shall be provided from the amounts allocated and maintained in the variable benefit fund.

(4)

The amount of the variable benefit fund and of the variable benefit shall be determined by the board after receiving a recommendation from the City's actuaries, which recommendation shall be based upon procedures recommended by the actuaries and approved by the board. In establishing such procedures, the following shall apply:

a.

The variable benefit shall not be directly affected by:

1.

Mortality gains and losses.

2.

Number of beneficiaries, or total amount of basic benefits payable.

b.

Only a portion or percent of the variable benefit fund shall be used for funding the variable benefit. Initially that portion shall be 50 percent, subject to future adjustment by the board, based upon the recommendation of the actuaries.

c.

While the variable benefit can decrease as well as increase, the total retirement income payable shall not be less than the basic benefit.

d.

Beneficiaries must have been receiving retirement income for at least one year as of any October 1, to be eligible to receive the variable benefit.

e.

Annual increases or decreases in the variable benefit, when expressed as a percentage of the basic benefit, shall be the same for all beneficiaries. There shall be no increase or decrease for any beneficiary unless it shall be applicable to all eligible beneficiaries.

f.

The variable benefit shall be provided for all beneficiaries, whether on service or age retirement or otherwise, and whether a member of the prior or supplemental system.

(k)

Death while performing USERRA-qualified active military service. In the case of a member who dies on or after January 1, 2007 while performing "qualified military service" under Title 38, United States Code, Chapter 43, Uniformed Services Employment and Reemployment Rights Act ("USERRA") within the meaning of Section 414(u) of the Internal Revenue Code, any "additional benefits" (as defined by Section 401(a)(37) of the Internal Revenue Code) provided under the retirement system that are contingent upon a member's termination of employment due to death shall be determined as though the member had resumed employment immediately prior to his death. With respect to any such "additional benefits," for vesting purposes only, credit shall be given for the period of the member's absence from covered employment during "qualified military service."

(Code 1973, § 22-53; Code 1992, § 22-132; Ord. No. 1150-F, §§ 2—6, 1-4-1990; Ord. No. 416-G, § 4, 2-17-2000; Ord. No. 88-H, § 2, 10-3-2013; Ord. No. 138-H, § 2, 11-6-2014)