Chapter 2.45 RETIREMENT SYSTEM

This article establishes the terms and conditions under which a retirement benefit is paid to the individuals who are listed on appendix A to section 2.45.260. This article is an amendment and restatement of Article II as most recently revised on December 1, 1994 by ordinance number 94-18 by the City Council. This article has been amended and restated under the authority in section 2.45.200 herein. This retirement system is adopted in accordance with Government Code § 45300 et seq., is subject to the overriding rules of Article XVI, section 17 of the California Constitution, and is the successor to the prior plan (defined below) and to the pension plan (defined below). The retirement system has been amended and restated in order to comply with the requirements of the Internal Revenue Code (Code), to delete provisions that no longer apply and to clarify provisions of the retirement system.

All persons who were employees of the City on June 21, 1993 and who were eligible for CalPERS participation ceased accruing benefits under this retirement system on that date and began accruing benefits under CalPERS for service with the City on and after that date. Additionally, no person has accrued additional benefits under this retirement system on or after June 21, 1993. All persons hired (and rehired) after June 21, 1993 become members of CalPERS if, and only if, they are entitled to retirement benefits as City employees. Therefore, the retirement system is a “closed” or “frozen” plan that provides benefits only for those individuals listed on appendix A to section 2.45.260 and their beneficiaries. No new service credit benefits are being earned under this retirement system and no benefits have been earned under it since June 21, 1993.

In 1993, no assets could be transferred to CalPERS for benefits accrued under the retirement system (“prior service credit”) prior to June 21, 1993. With the enactment of Government Code § 20530.1 it became possible to transfer assets from this retirement system to CalPERS to provide for prior service credit under CalPERS for service with the City. Therefore, in accordance with Government Code § 20530.1, and in accordance with the contract between the City and CalPERS, assets attributed to prior service credit with the City under this retirement system were transferred to CalPERS as of June 28, 1999 and liability for accrued benefits for that prior service was also transferred to CalPERS.

However, in accordance with Government Code § 20530.1, not all assets and not all prior service credit were transferred to CalPERS. Government Code § 20530.1 requires that transfers are limited to retirement system members who were employees of the City on the effective date of the transfer, June 28, 1999. Therefore, this retirement system retained both liabilities and assets attributed thereto for all members of this retirement system who did move to CalPERS for future accruals on and after June 21, 1993 but who were not employees of the City on June 28, 1999 as well as members who did not move to CalPERS because they terminated employment with the City before June 21, 1993. All of these persons (or their beneficiaries) who are owed a benefit under this retirement system are listed on appendix A to section 2.45.260 herein. No one is entitled to any benefit under this plan unless he is listed on appendix A, except as a designated beneficiary of a person listed on appendix A.

(Code 1965, § 2801; Code 2002, § 50-32. Ord. No. 842; Ord. No. 08-4)

2.45.030 Definitions.

Accumulated retirement contributions. The sum of all retirement contributions and employee contributions and interest thereon made under the prior plan, the pension plan and this retirement system to the date a refund of such contributions (if any) is made in accordance with the terms of this article. Accumulated retirement contributions includes contributions accounted for as retirement contributions and employee contributions that are made by the City on behalf of the employee. Interest shall be credited on these contributions in accordance with section 2.45.050 herein for the relevant interest crediting periods (or in accordance with the terms of the prior plan and/or the pension plan to the extent that those plans govern such crediting).

Actuarial equivalent or actuarially equivalent. A benefit of equal value when computed upon the basis of the applicable assumptions specified in section 2.45.250. The interest and mortality assumptions specified in section 2.45.250 are determined by the Board in accordance with applicable law and the requirements of the Code and, subject to such requirements and law and subject to the provisions of section 2.45.200(i) concerning vested rights, may be amended by the Board at any time.

Actuarial interest rate. The interest rate fixed by the Board for purposes of actuarial valuation of assets and liabilities of the retirement system.

Base allowance. The amount specified in section 2.45.130(a)(1) herein.

Base year. The year specified in section 2.45.130(a)(3) herein.

Beneficiary. Any person, including a corporation, designated by a member to receive payment under this retirement system after his death or who otherwise qualifies for receipt of a benefit payable under this retirement system after his death. Designation shall be made in writing at the time and in the manner provided by the City’s Human Resources Department.

Board. The Retirement Board as constituted under section 2.45.050 of this article.

California Consumer Price Index. An index as specified in section 2.45.130(a)(2) herein.

CalPERS. The California Public Employees’ Retirement System.

City. The City of Concord, a general law city of Contra Costa County, California.

Code. The Internal Revenue Code of 1986, as amended from time to time.

Compensation. The base salary paid by the employer for services rendered by members, excluding overtime, differential, and incentive payments or other irregular payments. No compensation shall be taken into account for purposes of determining benefits under the retirement system to the extent it cannot be taken into account under Code § 401(a)(17).

Disability retirement allowance. The monthly income payable in accordance with section 2.45.170 herein.

Effective date. The effective date of this retirement system was January 4, 1971, which was the beginning date of the next bi-weekly pay period concurrent with or next following the effective date of the ordinance creating this retirement system. The effective date of this amended and restated retirement system is January 1, 2008.

Eligible employee. Eligible employee is not defined in this article because, beginning on June 21, 1993, no person was eligible to earn additional benefits under this retirement system. Therefore, there have been no eligible employees under this retirement system beginning with that date.

Employer. The City of Concord, a general law city of Contra Costa County, California.

Final compensation. (i) Except as provided in (ii) below, the highest average monthly compensation during any 12 consecutive months during an individual’s membership in the retirement system, increased by the average monthly amount, if any, of the employee retirement contributions paid by (picked up by) the employer on behalf of the employee.

(ii) For a general member who terminates employment with the City on or after July 1, 1990, final compensation shall be the highest average monthly compensation paid to the member during any 12 consecutive months during his membership in the retirement system disregarding any of the employee retirement contributions paid by (picked up by) the employer on behalf of the employee. However, compensation, as herein defined, paid during any period of service under a reciprocal system and after July 1, 1990 shall be considered compensation for purposes of computing final compensation in this retirement system, provided entry into membership in one system occurred within 180 days of discontinuance of employment as a member of the other system.

No compensation shall be taken into account for purposes of determining benefits under the retirement system to the extent it cannot be taken into account under Code § 401(a)(17).

Funding agent. A legal reserve life insurance company licensed to do business in California which funds this retirement system, or a trust that is tax exempt under Code § 501(a), and that may hold assets of a retirement plan that is qualified under Code § 401(a).

General member. Any member who is not a police member.

Interest. Interest compounded annually at the annual interest rate fixed by the Board for purpose of crediting interest for the current year on employee retirement contributions to the pension plan and this retirement system.

Lump sum table. The actuarial table of present values of a future annuity as set forth in section 2.45.230, table B.

Member. The individuals who are listed in appendix A to section 2.45.260.

Normal retirement age. The later of the age specified in section 2.45.080 or the date that an individual is entitled to retire under this retirement system as provided in that section.

Pension plan. The City of Concord Employees’ Pension Plan of 1970, effective March 2, 1970, and as subsequently amended and restated and superseded by this system.

Plan year. The 12-month period beginning on each July 1 and ending on each June 30.

Police member. Any member of this retirement system who, while accruing benefits under this retirement system, was a sworn officer and employed as a “peace officer” as defined by California Penal Code § 830. Police member does not include one whose principal duties are those of a communications operator, clerk, stenographer, or otherwise and whose functions do not clearly fall within the scope of active, paid sworn law enforcement service even though such an employee is subject to occasional call or is occasionally called upon to perform duties within the scope of law enforcement service, but not excluding sworn officers or employees assigned to identification or, communication duties or persons employed and qualifying as sworn police officer or equal or higher rank irrespective of the duties to which they are assigned.

Prior plan. The City of Concord Pension Plan Trust Agreement, effective as of August 15, 1959, and as continued under a deposit administration contract between the Mutual Benefit Life Insurance Company of Newark, New Jersey, and the City of Concord, effective as of August 15, 1966 and superseded by the pension plan and thereafter by this retirement system.

Public agency. The State of California and any city, county, district, or other local authority or public body of or within the state eligible to participate in CalPERS or eligible to participate in a retirement system established under the County Employees’ Retirement Law of 1937.

Reciprocal agreement. An agreement between the City Council and the governing board of the retirement system of any other public agency providing for continuation of certain rights to retirement allowances and other benefits in the event of termination of employment covered by one such system and employment covered by another such system in accordance with applicable law. Rights and benefits provided under a reciprocal agreement shall be pursuant to California law. If reciprocal rights and benefits are not recognized under the federal tax law governing tax qualified retirement plans, any reciprocal rights and benefits are limited to the extent necessary for the system to maintain its tax qualified status.

Reciprocal system. A retirement system (as defined in California Government Code § 43510.5) of a public agency with which a reciprocal agreement has been entered into pursuant to California Government Code § 45310.5 or other provisions of law.

Retirement allowance. The basic monthly retirement income payable for the lifetime of a retired member following retirement without any provision for a death benefit or other refund.

Retirement contributions. Contributions made by a member at the rate of contributions fixed by the Board and any contributions made by the employee under the prior plan and pension plan. No contributions have been made under the retirement system since June 21, 1993. Therefore, retirement contributions include only amounts contributed through that date plus earnings, if any, thereon.

Retirement, retired, retired employee, or retiree. Termination of service with the City by a member of this retirement system with the receipt of a retirement allowance.

Retirement system or “system”. This City of Concord Retirement System.

Service. See section 2.45.180 concerning calculation of service.

(Code 1965, § 2802; Code 2002, § 50-33. Ord. No. 842; Ord. No. 08-4; Ord. No. 85-29; Ord. No. 1082; Ord. No. 86-27; Ord. No. 1133; Ord. No. 1208; Ord. No. 1213; Ord. No. 83-24; Ord. No. 90-11)

Cross references: Definitions generally, § 1.05.100.

2.45.040 Restatement of retirement system.

(a) This retirement system is restated as of January 1, 2008 to properly reflect the fact that it was frozen on June 21, 1993 so no additional benefits have been earned under the system since that date and all assets and liabilities of the system to individuals who were employees of the City on June 28, 1999 have been transferred to CalPERS.

(b) Subject to the conditions herein set forth, all assets held under the prior plan and pension plan have been merged with the assets of this system and (subject to the transfer of assets and liabilities to CalPERS as of June 28, 1999) shall be utilized by the funding agent as provided herein. All assets held by and contributed to this retirement system and all earnings thereon shall be held solely for the exclusive benefit of members and beneficiaries of the system. Such assets also may be used to pay reasonable administrative expenses of the retirement system. All such assets shall be held and administered in accordance with the California Constitution, Article XVI, section 17.

(d) With the exception of benefits already provided for persons who have retired under the prior plan and pension plan before the effective date of this retirement system, this retirement system document shall be the sole medium through which benefits are to be provided under this retirement system.

(e) All service credits accrued under the retirement system prior to June 21, 1993, by members who were actively employed by the City on June 28, 1999 and who were members of CalPERS on that date (and all assets attributable thereto) have been transferred to CalPERS effective June 28, 1999, in accordance with California Government Code § 20530.1 and the City’s contract with CalPERS. Therefore, this retirement system has no liability for any benefits payable to such individuals. Instead such benefits shall be provided solely by CalPERS.

(Code 1965, § 2803; Code 2002, § 50-34. Ord. No. 842; Ord. No. 08-4; Ord. No. 91-18; Ord. No. 99-6)

2.45.050 Retirement Board.

(a) The Board shall, under the provisions of this article and Article XVI, section 17 of the California Constitution, have plenary authority to administer the retirement system. The Board may delegate, in writing, any or all of its authority to administer the retirement system to the City or any other appropriate person. Any such delegation shall conform to the requirements of Article XVI, section 17 of the California Constitution.

(b) The Board shall consist of eight members, selected as follows:

(1) Two Board members shall be selected by the City Manager. Additionally, the Human Resources Director, and Finance Director shall be members of the Board during the period they hold these offices. Each of these Board members shall designate a representative to serve as voting alternates on the Board in their absence. Whenever possible, these representatives shall be from within their respective departments.

(2) The following organizations shall each appoint an employee from within the unit they represent to serve on the Board for a term of office of one year, commencing on each January 1:

a. Concord Police Officers’ Association;

b. Concord Police Managers’ Representation Unit;

c. Local Number 1, Public Employees’ Union; and

d. Concord Associated Professional Employees.

(3) The representatives specified in paragraph (2) above shall serve from year to year until they resign or are replaced by the appointing organization. The incumbent presidents of the four organizations shall certify to the City Manager annually, in writing, that the designated representative has been duly appointed. The president of any of the employee organizations set forth in paragraph (2) above may appoint an employee from within the unit as a voting alternate to serve in the absence of such organization’s regularly designated representative.

(c) One of the Board members appointed by the City Manager shall be the Chairman of the Board; the Human Resources Director, and the Finance Director shall be ex-officio the vice-chairman, and secretary of the Board. The Board may prescribe rules and regulations for the conduct of its meetings; provided, however, that at least five (5) members of the Board must be present to constitute a quorum for the transaction of any business.

(d) Members of the Board shall serve without compensation for their services.

(e) The Board shall have power to adopt such rules and regulations, mortality, interest, actuarial interest rates, and other tables as are necessary or appropriate for the administration of the provisions of this article and shall maintain or cause to be maintained all accounts, books, and records necessary and appropriate for the maintenance of the retirement system.

(f) The Board shall annually, prior to the beginning of each plan year, declare the rate of interest for the current plan year to be credited on accumulated retirement contributions of members. If the Board does not declare a rate of interest then the prior year’s rate of interest shall be used for crediting purposes until the Board makes such a declaration.

(g) The Board shall determine all questions concerning eligibility of members and their compensation and final compensation in accordance with the provisions of this article and shall have sole discretion to resolve these questions and shall have sole discretion to resolve all other issues that arise under the retirement system including but not limited to whether a person is a member of the system, the amount of his or her benefits payable under the retirement system (if any), and the time of payment and form of payment of any such benefits. The determination of the Board shall be final and conclusive and shall not be modified or set aside, except for fraud or abuse of discretion.

(h) The Board shall have the power to negotiate a reciprocal agreement with other retirement systems, subject to approval and execution by the City Council.

(i) Information necessary or appropriate for the administration of the reciprocity provisions of this retirement system shall be provided by the Board, subject to any limitations thereon established by governing law.

(j) The Board shall, on the request of a governing board of any other public agency with which a reciprocal agreement (as defined in section 2.45.030) exists, supply information and data necessary or appropriate for administration of such other agency’s retirement system as it is affected by membership in and service credited under this retirement system, subject to any limitations thereon established by governing law.

(k) To the maximum extent permitted by law, no member of the Board shall be liable for any act or failure to act with respect to this retirement system, except in the case of gross negligence or willful breach and then only to the extent provided by governing law. Additionally, to the maximum extent permitted by law, the City shall indemnify each member of the Board for his or her actions or failures to act in connection with this retirement system to the same extent as the City indemnifies its employees for their actions or failures to act in connection with their employment by the City. No Board member shall be liable for the act of any other members. The Board may employ such agent, actuary, or consultant as may be appointed by the employer to assist it in carrying out the provisions of this article. The expenses of such persons may (but need not) be paid by the City and if not paid by the City shall be paid from the assets held by the funding agent.

(l) The Board may direct the investment of the retirement system funds in any such investments as are authorized by the California Constitution, Article XVI, section 17 and other governing law. The Board may employ or obtain the advice of such advisors as it deems necessary or appropriate to assist it in making investment decisions. The Board may form such committees as it deems necessary or appropriate in connection with the Board’s handling of investments.

(Code 1965, § 2804; Code 2002, § 50-35. Ord. No. 842; Ord. No. 08-4; Ord. No. 86-30; Ord. No. 1209; Ord. No. 933; Ord. No. 91-18)

2.45.060 Membership in retirement system.

(a) Effective on and after June 21, 1993, in accordance with the City’s contract with CalPERS and California Government Code §§ 20303 and 20894, no person shall become a member of the retirement system or become eligible to become a member. All persons who were hired or rehired by the City on and after June 21, 1993 and who are eligible for retirement benefits shall become members of CalPERS to the extent provided with the City’s contract with CalPERS.

(b) Effective on and after June 28, 1999 the only persons who are members of this retirement system are those members of this retirement system as of June 21, 1993 who were not employees of the City on June 28, 1999. As of January 1, 2007, the only persons who are members under this retirement system are the persons listed in appendix A to section 2.45.260.

(c) (i) Additions to appendix A, in general -- Notwithstanding paragraph (b), the following persons may be added to the list in appendix A when he or she has earned sufficient service credit to qualify for retirement under this system: (1) an employee of the City who previously was a member of this retirement system, who terminated employment under the system, whose accumulated retirement contributions were refunded in accordance with the plan, who is reemployed by the City and who redeposits the entire amount withdrawn plus interest in accordance with section 2.45.150 and thereby accumulates sufficient service credit to be eligible to retire under this system; and (2) an employee of the City who previously was a member of this retirement system, who terminated employment under the system prior to completing sufficient years of employment with the City to become eligible to retire under the plan under section 2.45.080 and who subsequently earns sufficient service credit to become so eligible either through later employment with the City or through employment with a reciprocal agency in accordance with section 2.45.180(a). However, no person shall be treated as reemployed by the City for purposes of clause (1) or (2) herein unless he or she would be treated as an “eligible employee” under the provisions of this plan as in existence immediately prior to this amendment and restatement of the plan.

(ii) Additions to appendix A under Government Code § 45310.6 -- A person who qualifies for redeposit of contributions under Government Code 45310.6 and who meets all of the conditions established therein shall be added to appendix A as applicable. However, no benefits shall be provided to such person in excess of what is required under Section 45310.6.

(d) A person shall cease being a member of this retirement system at the earliest of the following dates: (1) death, or (2) withdrawal of his or her retirement contributions from the retirement system.

(e) If a member is rehired by the City, he or she shall not earn additional benefits under this retirement system but shall earn benefits under CalPERS to the extent that he or she is eligible for retirement benefits as provided in the City’s contract with CalPERS. While employed with the City, however, the individual shall not be entitled to receive any benefits under this retirement system except to the extent that he or she would be eligible to receive benefits under the rehire provisions of CalPERS if they were to apply to this retirement system.

(f) Each member and beneficiary shall be subject to all the provisions of this article and to all of the rules and regulations adopted by the Board.

(g) Each member shall file with the Board such information affecting his status as a member of the retirement system as the Board may require from time to time (such as Fair Political Practices Commission, Form 700).

(Code 1965, § 2805; Code 2002, § 50-36. Ord. No. 842; Ord. No. 08-4)

2.45.070 Retirement contributions.

On and after June 21, 1993 no contributions have been made to the retirement system by employees. All contributions, if any, shall be made by the City.

(Code 1965, § 2806; Code 2002, § 50-37. Ord. No. 842; Ord. No. 973; Ord. No. 1137; Ord. No. 08-4)

2.45.080 Eligibility for retirement.

(a) A member who is a general member shall be entitled to retire and receive benefits hereunder on the first day of any month, provided:

(1) He has attained his 55th birthday; and

(2) (i) He has completed 20 years of employment with the City; or (ii) the amount of his accumulated retirement contributions prior to termination of employment exceeded $500.00 under the prior plan, pension plan, and the retirement system, or (iii) he has completed five years of employment with the City and terminated such employment on or after July 1, 1990.

(b) A member who is a police member shall be entitled to retire and receive benefits hereunder on the first day of any month, provided:

(1) He has attained his 50th birthday; and

(2) He has completed 20 years of employment with the City or the amount of his accumulated retirement contributions prior to termination of employment exceeded $500.00 under the prior plan, the pension plan, and the retirement system.

(c) See section 2.45.150 concerning the redeposit of accumulated retirement contributions and see section 2.45.180(a) concerning service credit for service with other public agencies under a reciprocity agreement.

(d) A member may retire at a lower age than specified in subsection (a) or (b) of this section, as applicable, provided he is retiring concurrently under a retirement system of a public agency with which there is a reciprocal agreement in effect. In this case, the Board shall determine the appropriate retirement allowance factor to apply, which factor shall provide for the actuarial equivalent of the applicable earliest age factor for the member as set forth in the applicable table in section 5051 and section 2.45.250 herein.

(Code 1965, § 2807; Code 2002, § 50-38. Ord. No. 842; Ord. No. 83-24; Ord. No. 90-11; Ord. No. 08-4; Ord. No. 90-19; Ord. No. 973)

2.45.090 Retirement allowance.

(a) (i) A member who is a general member and is entitled to retire shall receive a monthly retirement allowance from this retirement system equal to the product of (1), (2), and (3), reduced by the product of (4), (5), and (6), if the member terminated employment on or before June 30, 1990. (ii) If the member who is a general member and is entitled to retire terminated employment after June 30, 1990, he shall receive a monthly retirement allowance from this retirement system equal to the product of (1), (2), and (3), where:

(1) Is two percent (2%) of final compensation;

(2) Is the applicable factor contained in table A in section 2.45.220;

(3) Is the number of years and completed quarter years of service at retirement. No service credit has accrued (or will accrue) under this retirement system on and after June 21, 1993; and

(4) Is two-thirds percent, of the monthly equivalent of the maximum annual amount subject to contribution under the federal social security system as provided under subsection (e) below;

(5) Is the applicable factor contained in table A in section 2.45.220; and

(6) Is the number of completed quarter years of service with respect to which the member participated in the federal social security system as an employee of the City.

(b) (i) Commencing August 10, 1987, a member who is a police member and is entitled to retire shall receive a monthly retirement allowance from this retirement system equal to the product of (1), (2), and (3), reduced by the product of (4), (5), and (6), up to a maximum retirement allowance that is seventy-five percent (75%) of final compensation, if the member terminated employment on or before November 6, 1994. (ii) If the member who is a police member and is entitled to retire terminated employment after November 6, 1994, he shall receive a monthly retirement allowance from this retirement system equal to the product of (1), (2), and (3), up to a maximum percent of seventy-five percent (75%) of final compensation where:

(1) Is two percent (2%) of final compensation;

(2) Is the applicable factor contained in table A in section 2.45.220;

(3) Is the number of years and completed quarter years of police service at retirement. No service credit has accrued (or will accrue) under this retirement system on and after June 21, 1993; and;

(4) Is two-thirds percent, of the portion of final compensation which does not exceed $400.00 per month; and

(5) Is the applicable factor contained in table A in section 2.45.220; and

(6) Is the number of completed quarter years of police service with the City at retirement.

(c) If a member retires with service both as a police member and as a general member, his monthly retirement allowance shall be the total of both retirement allowances computed separately based on his years of service under each category of service.

(d) The retirement allowance of a member who has been continuously disabled and has received or was eligible to receive payments under the group long-term disability insurance program maintained by the employer (if any) shall be determined as if the member had not been disabled but based on his final compensation as of his date of disability. Provided that no service or deemed service shall be credited for any period after June 21, 1993.

(e) For all years prior to 1970, the monthly equivalent of the maximum annual amount subject to contributions under the federal social security system shall be $650.00. Separate computations of the product of (4), (5), and (6) under subsection (a) and (4), (5), and (6) under subsection (b) of this section shall be made for those subsequent periods of different maximum annual amounts subject to contributions under the federal social security system.

(f) Retirement benefits paid to a retired employee who is also receiving benefits from an insurance carrier under a long-term disability plan of the employer shall be reduced by the benefit paid by such disability insurance carrier.

(Code 1965, § 2808; Code 2002, § 50-39. Ord. No. 842; Ord. No. 83-24; Ord. No. 90-11; Ord. No. 08-4; Ord. No. 1245; Ord. No. 90-19; Ord. No. 85-49)

2.45.100 Annual limitation on benefits paid.

(a) Limitation on benefits. Unless the alternate limitation of subsection (b) of this section applies, a member’s annual benefit at any time during the calendar year shall not exceed the dollar limitation of $185,000 under Code § 415(b)(1)(A), adjusted for changes in the cost of living in such manner as the Secretary of the Treasury prescribes as of January 1 of each calendar year and adjusted for time of payment and form of benefit as provided by Code § 415(b).

If a member’s annual benefit would exceed the foregoing limitation, his annual benefit shall be reduced by reducing the components thereof, as necessary, with the benefit under this retirement system reduced first before benefit payable under any other qualified retirement plan are reduced; provided, however, that a member’s annual benefit shall in no event be reduced below the amount of his annual benefit accrued on June 30, 1984, determined under the terms of the applicable qualified retirement plans (including their benefit limitations) as in effect on such date.

(b) Alternate limitation for retirement benefit up to $10,000.00. A member’s annual benefit shall not be subject to the limitations of subsection (a) of this section if:

(1) His annual benefit does not exceed $10,000.00; and

(2) He has never participated in a tax qualified defined contribution plan maintained by the employer.

(c) Reduced limitations for members with less than ten years of participation in the retirement system. In the case of a member who has less than ten years of participation in the retirement system, the amounts described in subsection (a) of this section and the $10,000.00 amount described in subsection (b) of this section shall be reduced by one minus the following fraction:

(1) The numerator of such fraction shall be the number of years of participation in the retirement system the member has completed; and

(2) The denominator of such fraction shall be 10.

This subsection (c) shall not apply to persons described in subsection (h) below.

(d) Adjusted dollar limitation for benefits commencing before age 62 or after age 65.

(1) If a member’s annual benefit commences prior to age 62, the amount described in subsection (a) of this section shall be reduced. The reduced amount shall be calculated by treating the amount described in that subsection as an annual individual life annuity commencing at age 62 and by converting it into an actuarially equivalent individual life annuity commencing at the age the member’s annual benefit commences. The interest and mortality assumptions used in determining actuarial equivalence under this section shall be those specified in subsection (b) of section 2.45.250 herein. Notwithstanding the foregoing, the limitation specified in this paragraph (1) shall not apply to a qualified safety participant as defined in subsection (g) below or to persons described in subsection (h) below.

(2) If a member’s annual benefit commences after age 65, the amount described in subsection (a) of this section shall be increased. The increased amount shall be calculated by treating the amount described in that subsection as an annual individual life annuity commencing at age 65 and by converting it into an actuarially equivalent individual life annuity commencing at the age the member’s annual benefit commences. The interest and mortality assumptions used in the conversion described in the preceding sentence shall be those specified in subsection (b) of section 2.45.250 herein.

(e) Annual benefit.

(1) For purposes of this section 2.45.100, a member’s “annual benefit” shall be the sum of the following:

(i) The annual retirement benefit to which he is entitled under this retirement system, excluding any benefit attributable to retirement contributions made by the member or any other exclusion allowed under Code § 415 and the regulations issued there under; and

(ii) The aggregate annual retirement benefits (if any) to which he is entitled under all other qualified defined benefit plans maintained by the employer (including but not limited to CalPERS), excluding any benefits attributable to member contributions made by the member.

(iii) For subparagraphs (i) and (ii) above any contributions that are paid for by the employer or are made on a pre-tax basis as “pick ups” by the employer under Code § 414(h)(2) are not treated as made by the member

(2) If the annual benefit to which a member is entitled is payable in a form other than a single life annuity or a “qualified joint and survivor annuity” within the meaning of section 401(a)(11)(G)(iii) of the Code, then, for the purpose of applying the limitations described above, such annual benefit shall be converted to an actuarially equivalent benefit in the form of an individual life annuity determined on the basis of the actuarial assumptions set forth in subsection (b) of section 2.45.250 herein.

(f) Section 415 compensation shall be determined for purposes of this retirement system as follows.

(1) With respect to any member, section 415 compensation means such member’s W-2 compensation from the employer for the year adjusted as provided herein.

(2) Section 415 compensation shall not include:

(i) Contributions made by the employer to a plan under section 457(f) of the Code to the extent that the contributions are not includible in the gross income of the member for the taxable year in which contributed;

(ii) Any distributions from a plan of deferred compensation; and,

(iii) Contributions made by the employer (whether or not under a salary reduction agreement) towards the purchase of any annuity contract described in Code § 403(b) (whether or not the contributions are actually excludable from the gross income of the member).

(3) Section 415 compensation shall include any elective deferral defined in Code § 402(g)(3), and any amount contributed or deferred by the employer at the election of the employee and which is not included in the employee’s gross income under Code § 125, 132(f)(4) or 457.

(4) The annual section 415 compensation of each member shall not exceed $200,000.00, as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code.

(g) For purposes of this section 2.45.100, a qualified safety participant means an individual who meets all of the following requirements:

(1) He is a member of this retirement system.

(2) He has at least 15 years of safety service taken into account in determining the amount of the benefit under this retirement system:

(i) As a full-time employee of any police department that is organized and operated by the City, or

(ii) As a member of the armed forces of the United States.

(h) The persons described in this subsection are the following:

(1) A person who receives benefits under this retirement system as a result of becoming disabled by reason of personal injuries or sickness; “disabled” for this paragraph (h)(1) means disabled as provided in regulations issued under Code § 415.

(2) A beneficiary, survivor, or the estate of a member who receives benefits as the result of the death of the member.

(i) The limitations established in this section shall be interpreted and applied to comply with the final regulations under section 415 of the Code issued by the Internal Revenue Service, including the effective date thereof.

(Code 1965, § 2809; Code 2002, § 50-40. Ord. No. 842; Ord. No. 973; Ord. No. 1082; Ord. No. 83-24; Ord. No. 90-11; Ord. No. 08-4; Ord. No. 1045; Ord. No. 87-25; Ord. No. 94-18)

2.45.120 Optional modifications of retirement allowance.

(a) The monthly retirement allowance provided under this system shall be payable for the lifetime of the member in equal monthly installments commencing with the first day of the month coinciding with or next following the later of the date the member’s application for retirement is received by City’s Human Resources Department or the day after the member terminates employment with the City. (Interest at the rate determined in accordance with the definition of interest in section 2.45.030 shall be paid on any retirement allowance installment that is paid more than 60 days after its scheduled date.)

(b) In lieu of the retirement allowance specified in subsection (a) above, a member may elect, within 60 days prior to his date of retirement, to receive the actuarial equivalent of his retirement allowance as of the date of retirement in accordance with one of the following options:

(1) Option 1--Return of accumulated retirement contributions. If the retired employee dies before he receives payments equal to the sum of his accumulated retirement contributions, the excess of such accumulated retirement contributions over the total retirement allowance received shall be paid to his beneficiary.

(2) Option 2--Certain and life retirement allowance. If the retired employee dies before receiving 60, 120, or 180 monthly payments, as specified in the election for a reduced retirement allowance, the balance of the payments specified in the election shall be paid to his beneficiary.

(3) Option 3--Joint and contingent retirement allowance. Upon the death of the retired employee, 100 percent, 66 2/3 percent, or 50 percent, as specified in the election of the retired employee’s reduced retirement allowance, shall be continued throughout the lifetime of the joint annuitant named by the member, effective with the first day of the month following the retired employee’s death. The application of this option shall be according to subsection (c) of this section.

(4) Option 4--Social security adjustment. If the member retires prior to commencement of retirement payments under the federal social security system, he may elect to receive an increased retirement allowance prior to the earliest possible commencement of primary social security benefits and a decreased retirement allowance thereafter so that, as nearly as reasonably possible, total payments under this retirement system and the federal social security system before and after commencement of social security benefits are equal. In no event, however, shall the monthly retirement allowance be increased prior to the commencement of federal social security benefits so that the decreased monthly retirement allowance payable after commencement of social security benefits will be less than $50.00 per month.

(c) Election of Option 3 shall be cancelled if the joint annuitant dies before the commencement of payment of the member’s retirement allowance. In such event, the member shall receive a retirement allowance computed in accordance with the provisions of section 2.45.090 unless a further optional election under this section 2.45.120 is made prior to the commencement of payment of benefits. Election of Option 3 shall also be cancelled if the member dies prior to commencement of his retirement allowance.

(d) Solely for a retiring employee who was a participant of and covered under the prior plan, in lieu of all other benefits which may become payable under this retirement system and notwithstanding the loss of benefits under any other retirement system of a public agency with which a reciprocal agreement may be in effect, a retiring employee who was a participant of and covered under the prior plan may elect to receive a lump sum payment equal to that which would have been payable had the prior plan remained in effect without change. Such payment shall be adjusted up or down to reflect, respectively, the increase or decrease in employee retirement contributions, exclusive of interest, required under the pension plan or this retirement system compared to those which would have been required under the prior plan had the prior plan remained in effect. The computation of lump sum benefits shall be based on the lump sum table provided in section 5052, table B.

(e) Election of any option shall be made in writing, signed by the member, and filed with the City’s Human Resources Department at least 60 days prior to retirement. Except as provided in subsection (c) above, a member shall have no right to change the basis of his retirement allowance after commencement of his retirement allowance or any of its options.

(Code 1965, § 2809; Code 2002, § 50-41. Ord. No. 85-29; Ord. No. 08-4)

2.45.130 Cost of living adjustment.

(a) The following definitions shall govern the application of this section:

(1) Base allowance. The amount of monthly retirement allowance which would be payable had this section not been a part of this article.

(2) California Consumer Price Index. The annual Consumer Price Indexes for all items of the “All Urban Consumers Index (U)” and “Urban Wage Earners and Clerical Workers Index (W)” as stated for the San Francisco-Oakland area, published by the Bureau of Labor Statistics of the U.S. Department of Labor. Should the reference base of said Consumer Price Indexes (presently 1982-1984 = 100) be changed, the indexes used to determine the Consumer Price Indexes as defined in this section will be the indexes converted to the new base by standard statistical methods.

(3) Base year. The calendar year of retirement of the member with respect to such retired employees and joint annuitants of such retired employees.

(b) This section is applicable to the monthly retirement allowance payable to retired employees under section 2.45.090 hereof and to their joint annuitants under section 2.45.120 (a)(2), (3), and (4).

(c) The monthly retirement allowance shall be adjusted annually for payments payable on and after May 1, commencing on May 1 in the second calendar year following the year of the member’s retirement. The adjusted monthly retirement allowance shall be equal to the base allowance multiplied by an adjustment factor equal to: (1) the higher of the two California Consumer Price Indexes (i.e., the higher of the “U” index and the “W” index) for the immediately preceding calendar year, divided by (2) that same California Consumer Price Index for the base year. The adjustments herein provided are limited by the following:

(1) No adjustment shall be made for any year in which the adjustment is less than one percent of the base allowance and the adjustment for any year shall not exceed two percent per year, compounded from the base year.

(2) No adjustment shall be made in any year when the actuarial interest rate is less than 4 1/2 percent.

(3) Adjustments may be up or down but no payment shall be less than the base allowance.

(4) No monthly retirement allowance may exceed an amount equal to the base allowance increased by two percent per year, compounded from the end of the base year to the beginning of the calendar year in which the adjustment is made.

(d) Special rules.

(1) Notwithstanding the limitations on cost of living adjustments imposed by this article, and in addition to any other adjustment made pursuant to this article, those retired employees and joint annuitants of retired employees who were receiving a monthly retirement allowance as of December 31, 1979, shall receive quarterly non-cumulative cost of living adjustments until such date on which the recipient is no longer entitled to an allowance under this article.

(2) The amount of the quarterly adjustment for each recipient shall be computed by applying the applicable percentage from the chart below to the total amount of payments made to the recipient during the quarter commencing October 1, 1980.

TABLE INSET:


Recipient’s Base Year	Percentage Cost of Living
1971	18%
1972	16%
1973	14%
1974	12%
1975	10%
1976	8%
1977	6%
1978	4%
1979	2%

(3) The quarterly adjustments shall be paid on October 1, 1986, and upon the commencement of each quarter thereafter.

(4) The Board shall inform each recipient of benefits under this section that the adjustments are not cumulative and shall not be included in the recipient’s base allowance so they are not subject to the adjustment in subsection (c) above, and may be available for only a limited period of time.

(Code 1965, § 2809; Code 2002, § 50-42. Ord. No. 85-29; Ord. No. 08-4)

2.45.140 Withdrawal benefits.

(a) Upon termination of employment with the City by a member prior to death, disability, or retirement whose accumulated retirement contributions are less than or equal to $500.00 and who is a sworn police member or who is a general member and was hired on or before June 30, 1990, he shall be paid the amount of his accumulated retirement contributions; provided, however, that upon entry into a reciprocal system within 180 days after termination of employment he may elect to leave or return his accumulated retirement contributions on deposit in this retirement system. The provision set forth in this paragraph shall not apply if the member is a general member who terminates on or after July 1, 1990, with five years of service.

(b) Upon termination of employment by a member prior to death, disability, or retirement who has less than five years of service and who is a general member and was hired on or after July 1, 1990, he shall be paid the amount of his accumulated retirement contributions; provided, however, that upon entry into a reciprocal system within 180 days after termination of employment he may elect to leave or return his accumulated retirement contributions on deposit in this retirement system.

(c) Upon termination of employment by a member prior to death, disability, or retirement whose accumulated retirement contributions exceed $500.00 and who is a general member who was hired on or before June 30, 1990, or is a police member, he may elect a refund of his accumulated retirement contributions on deposit in this retirement system. Failure to make an election within 180 days after termination shall be deemed an election to withdraw his accumulated contributions unless the member is credited with 20 years of service.

(d) Upon termination of employment with the City on or after July 1, 1990, of a general member with five years of service prior to death, disability, or retirement, he may elect a refund of his accumulated retirement contributions on deposit in this retirement system. Failure to make an election within 180 days after termination shall be deemed an election not to withdraw his accumulated contributions.

An election by a member to leave his accumulated retirement contributions in this retirement system may be revoked at any time, except while he is in the employment of any public agency with respect to which there is a reciprocal agreement in effect.

(e) Cashout of small benefits. Notwithstanding any other provisions of the system to the contrary, if the lump sum actuarial equivalent of the member’s retirement allowance at normal retirement age does not exceed $1,000.00, then the lump sum actuarial equivalent of the retirement allowance (or the value of his accumulated retirement contributions on deposit in this retirement system if larger) shall be paid to the member (or beneficiary, if applicable). No other benefits of any type shall thereafter be payable under this retirement system to such member (or his beneficiary).

(Code 1965, § 2809; Code 2002, § 50-43. Ord. No. 92-2; Ord. No. 08-4)

2.45.150 Buy-back provision.

(a) An employee who previously terminated employment under this retirement system, whose accumulated retirement contributions were refunded pursuant to section 2.45.140 of this retirement system, and who is currently employed by the City in a position under which he would be an eligible employee in accordance with section 2.45.070 of this plan as it existed immediately before this restatement, may elect to redeposit the entire amount withdrawn, plus interest, at the rate in effect in the definition of “interest” in section 2.45.030 at the time such election is made, compounded annually from the date of withdrawal to the date of redeposit. Such accumulated retirement contributions shall be paid in a lump sum to the retirement system.

(b) Additionally, an employee described in subsection (a) above who:

(1) Was employed by the City when the prior plan was in effect; and

(2) Was not eligible, due to age and/or years of service, for coverage under the prior plan during some or a portion of such employment; and

(3) Due to a break in service, is not otherwise eligible under this retirement system for service credit for such portion of employment may elect to purchase such previously excluded service time. The amount required to purchase such service time shall be a sum computed by multiplying the salary earned by the employee during the period of previously excluded service by the last contribution rate greater than zero that applied to the employee under this retirement system and then adding an amount equal to the interest which would have been credited to such contributions (computed to the date or dates of the employee’s payment(s)). The amount thus computed for such contributions and interest shall be paid in a lump sum to the retirement system.

(c) An eligible employee who had not elected to join the Employees’ Pension Plan of 1970 when first eligible may elect to buy back previously excluded service time by depositing contributions that would have been made during the period March 2, 1970, through January 3, 1971, plus an amount equal to the interest which would have been credited to those contributions to the date or dates of his payment. Such contributions and an amount equal to the interest shall be paid in a lump sum to the retirement system. The retirement contribution rate to be used for purposes of calculating the amount of contributions shall be that rate established on January 4, 1971.

(d) For good cause the Retirement Board may permit such payment to be made on reasonable terms over a period of time. In the event of such time payments, all benefits payable under this retirement system shall be computed by prorating the period of service for which payment has actually been made pursuant to this section.

(e) All payments under this section shall be made in cash and shall not be rolled over or otherwise transferred from another retirement plan, IRA, or other similar program.

(Code 1965, § 2810; Code 2002, § 50-44. Ord. No. 842; Ord. No. 83-24; Ord. No. 08-4; Ord. No. 973; Ord. No. 3-24)

2.45.160 Death benefits.

(a) Upon the death of a member who has terminated employment with the City prior to retirement, the amount payable to a beneficiary on behalf of such member shall be his accumulated retirement contributions.

(b) In lieu of all other benefits which may become payable under this retirement system and notwithstanding the loss of benefits under any other retirement system of a public agency with which a reciprocal agreement may be in effect, upon the death prior to retirement of a member who has not withdrawn his contributions and who was a participant of and covered under the prior plan, the beneficiary of that member may elect to receive a lump sum payment equal to that which would have been payable had the prior plan remained in effect without change. Provided, however, that no death benefit shall be paid that would be larger than the amount that complies with the requirements for a tax qualified plan under the Code. Notwithstanding the foregoing, a beneficiary who is not eligible for a survivor’s allowance under this section may not elect to receive a lump sum if there is a nonbeneficiary who is eligible for a survivor’s allowance under this section with respect to the deceased member.

(c) Upon the death of a member prior to retirement who has not withdrawn his accumulated retirement contributions, there will be payable to his beneficiary from the system the combined amount of the following:

(1) For general employees:

a. For nonmanagerial general employees: The amount, if any, by which: (a) his accumulated retirement contributions, and (b) 1/12 of the annual compensation paid to the deceased during the 12 months immediately preceding his death (if he was then employed by the City) multiplied by the number of completed years of membership in the prior plan, pension plan, and retirement system (but not to exceed one-half of such annual compensation) exceeds the amount of any life insurance payable under a group term life insurance policy provided by the City;

b. For managerial general employees and employees of the City Redevelopment Agency, nonmanagerial general employees who are in the administrative, technical and clerical, field and operations, and professional representation units, and nonmanagerial general employees who are designated as confidential: The amount of his accumulated retirement contributions;

(2) For police employees: The amount of his accumulated retirement contributions.

(d) Upon the death of a member who has terminated employment with the City, the amount payable on behalf of such member shall be his accumulated retirement contributions.

(e) A survivor’s allowance may be payable to one of the following persons or classes of persons on the death of a member when all of the requirements for a survivor’s allowance set out below in paragraph (f) are met:

(1) To the surviving spouse of the member as long as the spouse lives or until remarriage; or

(2) To the children under age 18, collectively, if there is no surviving spouse or the surviving spouse dies or remarries before all children of the deceased member, until every child dies or attains age 18, provided that no child shall receive any allowance after marrying or attaining the age of 18.

(f) The survivor of the deceased member shall be eligible for a survivor’s allowance if all of the following conditions are met:

(1) The member, prior to death, had:

a. Attained age 55 as a general employee or age 50 as a police employee; and

b. Completed five years of service with the employer or with a public agency with which there is a reciprocal agreement in effect; and

c. Is still an employee of the City at the time of death.

(2) The survivor otherwise eligible for a survivor’s allowance is the beneficiary of any group life insurance coverage provided to the member by the City.

(3) The survivor, or his guardian or conservator, otherwise eligible for a survivor’s allowance has, within 90 days after the death of the member, elected to have all of the proceeds of any group life insurance coverage provided to the member by the City paid over to the funding agent and such proceeds become part of the system’s general assets.

(g) The survivor’s allowance under this retirement system shall be the amount of the 100 percent joint and contingent retirement allowance to which the member would have been entitled if he had retired on the date of his death.

(h) In lieu of the survivor’s allowance described in subsections (e), (f), and (g) above, a special survivor’s allowance may be payable to one of the following persons or category of persons who are survivors of a member who is a police employee at the time of his death (the “special survivor’s allowance”):

(1) To the surviving spouse as long as the spouse lives or until remarriage; or

(2) To the children under age 18, collectively, if there is no surviving spouse or the surviving spouse dies or remarries before all children of the deceased attain age 18; until every child dies or attains age 18, provided that no child shall receive any allowance after marrying or attaining the age of 18.

(i) The person otherwise eligible as a survivor will be eligible for the special survivor’s allowance if all of the following conditions are met:

(1) Death of the police employee was industrial in origin, as determined by the Workers’ Compensation Appeals Board;

(2) The survivor, or his guardian or conservator, otherwise eligible for a survivor’s allowance, has, within 90 days after the death of the eligible employee, elected to have all of the proceeds of any group life insurance coverage provided to the member by the City paid over to the funding agent and such proceeds become part of the system’s general assets.

(j) The special survivor’s allowance shall be equal to the excess of (1) over (2), where:

(1) Is 50 percent of final compensation, plus, if the police employee who is a member is killed in the performance of his duty or dies as the result of an accident or an injury caused by external violence or physical force incurred in the performance of his duty, an additional 12 1/2 percent, 20 percent, or 25 percent of final compensation for one, two, or three or more children, respectively, who are both unmarried and under age 18; and

(2) Is monthly payments under the federal social security system payable with respect to the survivors of the eligible police employee.

(k) When all requirements for a survivor’s allowance (or special survivor’s allowance) are met, payment of a survivor’s allowance shall commence as of the first day of the month following death of the member and shall continue as long as there are eligible survivors as provided above.

(l) Upon termination of the survivor’s allowance or special survivor’s allowance, as applicable, there will be payable to the beneficiary of the member the excess of the amount of the proceeds of any group life insurance coverage that was paid to the funding agent as provided above over the sum of all retirement allowances, survivor’s allowance, and special survivor’s allowance heretofore paid under this retirement system on account of the death of the member.

(Code 1965, § 2811; Code 2002, § 50-45. Ord. No. 16; Ord. No. 842; Ord. No. 83-24; Ord. No. 08-4; Ord. No. 973; Ord. No. 1215; Ord. No. 1249; Ord. No. 85-27; Ord. No. 85-47)

2.45.170 Disability benefits.

(a) A member whose service with the employer is terminated shall be eligible for a disability retirement allowance under this retirement system if all of the following conditions are fulfilled:

(1) He has left his accumulated retirement contributions on deposit under this retirement system.

(2) He has retired for disability under the retirement system of another public agency with respect to which a reciprocal agreement is in effect.

(3) His employment with the other public agency from which he seeks a disability retirement allowance began not more than 90 days after termination of employment with the employer.

(b) The amount of disability retirement allowance payable under this retirement system to a member who is a police member eligible under subsection (a) of this section shall be determined as if he retired under sections 2.45.080 and 2.45.090 herein.

(c) The amount of disability retirement allowance payable under this retirement system to a member who is a general member eligible under subsection (a) of this section shall be the greater of (1) or (2) below, where:

(1) Equals the amount which, when added to the disability retirement allowance paid under the reciprocal system, equals the allowance which would be payable if the general member’s years of service with the employer were credited under such system; or

(2) Equals the amount of monthly life annuity (with lump sum death benefit equal to the amount applied to purchase the annuity less the sum of the annuity payments) which can be purchased with the general member’s accumulated retirement contributions. This benefit can be provided by the retirement system without the actual purchase of an annuity contract.

(Code 1965, § 2812; Code 2002, § 50-46. Ord. No. 842; Ord. No. 1133; Ord. No. 90-11; Ord. No. 08-4; Ord. No. 83-24)

2.45.180 Calculating service.

(a) Service, solely for purposes of qualification for retirement allowance and other benefits under this retirement system, and not for the purpose of determining the amount of benefits paid by this retirement system, shall also include service rendered (in a capacity which would be considered as service under this retirement system) to a public agency with which a reciprocal agreement is in effect.

(b) A member shall not receive credit for purposes of calculating benefits paid under this retirement system while employed by any other public agency with respect to which he receives such service credit under the retirement system of such public agency.

(c) Except to the extent provided (if at all) with respect to disability under section 2.45.170 and military service as required under Code § 414(u), time during which a member is absent from employment without compensation shall not be allowed in computing service for any purpose under this retirement system, except as provided in subsection (f) of this section.

(d) The maximum service that will be credited for any purpose for any plan year is one year.

(e) The Board shall prescribe how much service rendered in any one fiscal year is the equivalent of all or part of a year of service but shall credit one year for ten months or more of service rendered by a member who is in pay status on a monthly (or equivalent) basis; for service rendered by employees who are in pay status on a per diem basis, the Board shall credit one year for 125 days of such service rendered.

(f) During a period of disability for which the member receives or is eligible to receive disability income payments under a group long-term disability program of the employer, he shall receive credit in determining years of service in computing retirement allowances.

(g) Notwithstanding any other provision in this Plan, no service or deemed service shall be credited for any person for any period after June 21, 1993 for purposes of determining the amount of benefits paid by this retirement system. However, such service may be counted for purposes of qualification for a retirement allowance and for applying the limitation rules of section 2.45.100.

(Code 1965, § 2812; Code 2002, § 50-47. Ord. No. 1065; Ord. No. 1163; Ord. No. 88-7; Ord. No. 17; Ord. No. 08-4)

2.45.190 Funding agent.

(a) The funding agent shall not be deemed to be a party to this retirement system for any purpose, nor shall it be responsible for the validity of same. The statement of the Board may be received by the funding agent as conclusive evidence of any of the matters concerning this retirement system, and the funding agent shall be fully protected in taking or permitting any reasonable and prudent action in good faith and, except as otherwise provided by law, shall incur no liability or responsibility for so doing except as otherwise provided by law. The funding agent shall not be required to look into the terms of this retirement system or question any action of the Board, and the funding agent shall not be responsible for seeing that any action of the Board is authorized by the terms of this retirement system. The funding agent shall be fully discharged from any and all liability for any amount paid to the Board, or paid in accordance with the direction of the Board, and any change made or action taken by the funding agent upon written direction of the Board shall fully discharge the funding agent from all liability with respect thereto except as otherwise provided by law. The funding agent shall not be obligated to see to the distribution or further application of any monies paid by it to the Board or paid in accordance with the written direction of the Board.

(b) The funding agent shall be under no obligation to take notice of any change in the Board until evidence of such change satisfactory to the funding agent has been given in writing by the City to the funding agent at its home office.

(c) The funding agent shall not be required to take any action under this retirement system concerning any of its contracts which may be contrary to its rules or practices except to the extent necessary to meet the requirements of governing law including but not limited to the Code.

(d) As provided in section 2.45.040, the funding agent shall hold all assets of this retirement system and all earnings thereon solely for the exclusive benefit of members and beneficiaries of the system. Such assets also may be used to pay reasonable administrative expenses of the retirement system. All such assets shall be held and administered in accordance with the California Constitution, Article XVI, section 17.

(e) Notwithstanding anything to the contrary in any agreement with the funding agent, if there is an inconsistency or conflict between the terms of the plan and such an agreement, the terms of the plan govern.

(Code 1965, § 2813; Code 2002, § 50-48. Ord. No. 842; Ord. No. 08-4; Ord. No. 1208; Ord. No. 1213; Ord. No. 1082)

2.45.200 General provisions.

(a) If any person entitled to a retirement allowance or other benefit under this retirement system is deemed incapable of personally receiving and giving a valid receipt for such payment, then unless and until claim therefor shall have been made by a duly appointed guardian or other legal representative of such persons, the Board in its sole discretion may provide for such payment, or any part thereof, to be made to any other person or institution then contributing toward or providing for the care and maintenance of such person or may make payment only after appointment of a guardian or other legal representative. Any such payment shall be a payment for the account of such person and shall be in complete discharge of any liability of this retirement system therefor.

(b) No member or any other individual or entity shall have any right to a retirement allowance or other benefit under this retirement system, except as such retirement or other allowance is provided for in accordance with the provisions of this retirement system, and then only to the extent of the adequacy of the funds held by the funding agent with respect to the retirement system which may be applied in accordance with the provisions of this retirement system. If the funding agent holds insufficient funds to pay all benefits owed hereunder, then the Board, in its sole discretion, shall determine to whom such funds shall be paid, and the timing and form of such payment.

(c) Establishment of this retirement system shall not be construed to give any person the right to be retained in the service of the employer.

(d) To the maximum extent permitted by law, no retirement allowance or other benefit payable under this retirement system shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, execution, lien, or encumbrance of any kind. Notwithstanding the foregoing, payment shall be made in accordance with the provisions of any decree or order which the City determines to be a domestic relations order issued by a court of competent jurisdiction, which order does not conflict with the terms and conditions governing this retirement system.

(e) Words in the masculine gender shall include the feminine gender; the singular shall include the plural, and vice versa, unless qualified by the context.

(f) This article shall be construed according to the laws of California and the requirements of the Code, and all the provisions of this retirement system shall be administered according to such laws; all persons accepting or claiming retirement allowances or other benefits under this retirement system shall be deemed to consent to the provisions of this article.

(g) Each member may designate, in writing, at the time and in the manner required by the Board, the person or persons who shall be his beneficiary or beneficiaries hereunder.

(h) If any provision or portion of this article is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions or portions of this article.

(i) This retirement system may be amended or modified by the City Council, provided that no vested right is reduced.

(j) This article shall not be repealed, except by vote of the electorate.

(k) Distributions under the retirement system shall meet the minimum distribution requirements of Code § 401(a)(9) and the applicable regulations as set forth in section 2.45.270.

(l) Notwithstanding any provision of this article to the contrary, a distributee may elect in writing, at the time and in the manner required by the Board, to have all or any portion of an eligible rollover distribution (as defined in Code § 402(c)(4)) paid directly to an eligible retirement plan (as defined in Code § 402(c)(8)(B)) specified by the distributee in a direct rollover.

(m) All provisions of this retirement system shall be interpreted and administered in accordance with the provisions of Code § 414(u).

(n) If any person receives an overpayment of benefits to which he is not entitled, he shall be deemed to hold such overpayment, plus earnings thereon, in trust for the benefit of all members of this retirement system. The Board may take any action it deems necessary or appropriate to collect such overpayment plus earnings. Such action may include, and is not limited to, offsetting such overpayment against future retirement benefits, or bringing suit to require repayment (from any source whatsoever) of such overpayment plus earnings. Suit may be for any reasonable remedy or remedies that will make whole the loss to the retirement system because of the overpayment including but not limited to costs of suit, costs of collection and attorneys fees.

(Code 1965, § 2814; Code 2002, § 50-49. Ord. No. 933; Ord. No. 08-4; Ord. No. 83-24)

2.45.210 Acceptance of reciprocal system.

The provisions of this article pertaining to reciprocity and related matters are permissive only and are dependent upon the retirement system being approved as a reciprocal system CalPERS or by other reciprocal systems as provided by law.

(Code 1965, § 2815; Code 2002, § 50-50. Ord. No. 842; Ord. No. 08-4)

2.45.220 Retirement allowance factors.

See section 2.45.090.

TABLE A. RETIREMENT ALLOWANCE FACTORS

General Members

Effective July 1, 1990, for general members who terminate on or after July 1, 1990 and before June 28, 1996.

TABLE INSET:


Attained Age at Retirement	Factor
55	0.730
55 1/4	0.741
55 1/2	0.753
55 3/4	0.764
56	0.776
56 1/4	0.788
56 1/2	0.800
56 3/4	0.813
57	0.825
57 1/4	0.839
57 1/2	0.852
57 3/4	0.865
58	0.879
58 1/4	0.893
58 1/2	0.908
58 3/4	0.923
59	0.937
59 1/4	0.953
59 1/2	0.969
59 3/4	0.985
60	1.000
60 1/4	1.017
60 1/2	1.034
60 3/4	1.050
61	1.067
61 1/4	1.084
61 1/2	1.101
61 3/4	1.119
62	1.136
62 1/4	1.154
62 1/2	1.173
62 3/4	1.191
63 and over	1.209

Police Members

TABLE INSET:


Attained Age at Retirement	Factor
50	1.0000
50 1/4	1.0175
50 1/2	1.0350
50 3/4	1.0525
51	1.0700
51 1/4	1.0875
51 1/2	1.1050
51 3/4	1.1225
52	1.1400
52 1/4	1.1575
52 1/2	1.1750
52 3/4	1.1925
53	1.2100
53 1/4	1.2275
53 1/2	1.2450
53 3/4	1.2625
54	1.2800
54 1/4	1.2975
54 1/2	1.3150
54 3/4	1.3325
55 and over	1.3500

General Members

Effective July 1, 1990, for general members who terminated before July 1, 1990.

TABLE INSET:


Attained Age at Retirement	Factor
55	0.706
55 1/4	0.718
55 1/2	0.731
55 3/4	0.743
56	0.755
56 1/4	0.768
56 1/2	0.782
56 3/4	0.795
57	0.808
57 1/4	0.823
57 1/2	0.838
57 3/4	0.852
58	0.867
58 1/4	0.883
58 1/2	0.899
58 3/4	0.915
59	0.931
59 1/4	0.948
59 1/2	0.966
59 3/4	0.983
60	1.000
60 1/4	1.017
60 1/2	1.034
60 3/4	1.050
61	1.067
61 1/4	1.084
61 1/2	1.101
61 3/4	1.119
62	1.136
62 1/4	1.154
62 1/2	1.173
62 3/4	1.191
63 and over	1.209

General Members

Effective June 28, 1996, for general members who terminate on or after June 28, 1996.

TABLE INSET:


Attained Age at Retirement	Factor
50	0.713
50 1/4	0.725
50 1/2	0.737
50 3/4	0.749
51	0.761
51 1/4	0.775
51 1/2	0.788
51 3/4	0.801
52	0.814
52 1/4	0.828
52 1/2	0.843
52 3/4	0.857
53	0.871
53 1/4	0.886
53 1/2	0.902
53 3/4	0.917
54	0.933
54 1/4	0.950
54 1/2	0.966
54 3/4	0.983
55	1.000
55 1/4	1.007
55 1/2	1.013
55 3/4	1.020
56	1.026
56 1/4	1.033
56 1/2	1.039
56 3/4	1.046
57	1.052
57 1/4	1.059
57 1/2	1.065
57 3/4	1.072
58	1.078
58 1/4	1.085
58 1/2	1.091
58 3/4	1.098
59	1.105
59 1/4	1.111
59 1/2	1.118
59 3/4	1.124
60	1.131
60 1/4	1.137
60 1/2	1.144
60 3/4	1.150
61	1.157
61 1/4	1.163
61 1/2	1.170
61 3/4	1.176
62	1.183
62 1/4	1.189
62 1/2	1.196
62 3/4	1.202
63 and over	1.209

(Code 1965, §§ 2816, 2819; Code 2002, § 50-51. Ord. No. 842; Ord. No. 08-4; Ord. No. 90-11; Ord. No. 96-3)

2.45.230 Lump sum table.

Actuarial table of present values for each dollar of a future annuity (for use with prior plan only).

TABLE B. LUMP SUM TABLE

General Members

TABLE INSET:


Present Age
18	$ 22.84
19	23.66
20	24.49
21	25.37
22	26.27
23	27.21
24	28.18
25	29.18
26	30.23
27	31.31
28	32.43
29	33.59
30	34.80
31	36.05
32	37.35
33	38.70
34	40.10
35	41.55
36	43.06
37	44.63
38	46.26
39	47.96
40	49.72
41	51.56
42	53.47
43	55.46
44	57.54
45	59.72
46	62.01
47	64.41
48	66.93
49	69.60
50	72.41
51	75.37
52	78.53
53	81.86
54	85.41
55	89.17
56	93.19
57	97.46
58	102.03
59	106.91
60	112.15
61	117.77
62	123.81
63	130.35
64	137.44
65	145.16

Police Members

TABLE INSET:


Present Age
18	$ 33.34
19	34.52
20	35.75
21	37.02
22	38.34
23	39.71
24	41.13
25	42.60
26	44.12
27	45.70
28	47.33
29	49.03
30	50.79
31	52.62
32	54.51
33	56.48
34	58.52
35	60.65
36	62.85
37	65.14
38	67.52
39	69.99
40	72.56
41	75.24
42	78.03
43	80.94
44	83.98
45	87.16
46	90.50
47	94.00
48	97.69
49	101.57
50	105.68
51	110.01
52	114.61
53	119.47
54	124.65
55	130.15
56	136.00
57	142.24
58	148.91
59	156.05
60	163.69
61
62
63
64
65

(Code 1965, § 2817; Code 2002, § 50-52. Ord. No. 842; Ord. No. 08-4)

2.45.240 Disability retirement for police employees.

Disability retirement for a police employee who may be disabled arising out of and in the course of his duties with the City due to injury/illness occurring on or after July 1, 1973, shall be applicable as follows:

(1) Inability to work. The police employee must be disabled from performing work as such employee. The disability must be permanent and stable. The determination of disability shall be made by the City’s physician;

(2) Exhaustion of long term disability benefits. Disability retirement may occur only after benefits from the City’s long term disability program, if any, cease;

(3) Disability retirement in lieu of other benefits. Disability retirement shall be in lieu of any other retirement benefits payable from the City’s retirement system (including the return of the employee’s accumulated retirement contributions from the system);

(4) Method of computation. Disability retirement benefits shall be 50 percent of the police employee’s base pay (including any police professionalization program incentive payment which is designated as being subject to retirement and other benefits) then in effect on the last date the police employee is paid by the City.

a. The following amounts shall reduce the amount payable by the system: the amount payable from any benefit program to which the City has made payment (in full or in part), any amount payable from CalPERS or Social Security. Therefore, if the member receives a benefit from Social Security or from CalPERS, then the amount payable under this system shall be 50 percent of base pay described above minus any amount paid by Social Security and/or CalPERS. Social security benefits shall include payments to dependents which are received due to the work-incurred disability of the police employee. Any future increases in any benefits described in this paragraph (a) will serve to reduce the amount required to be paid from the City’s retirement system to maintain income to the disabled police employee. The following amounts shall not reduce the amount payable by this system: any permanent disability award made by the Workers’ Compensation Appeals Board.

b. After being on disability retirement for two years, the disability retirement benefit may (but need not) be increased up to two percent maximum annually, applied in a manner similar to the provisions found in the CalPERS disability retirement benefit for safety employees. The City shall determine whether to provide this increase, and may make this decision on a year by year basis.

c. Payments made as a disability retirement benefit shall be disbursed as of the first of the month for the period of the preceding month (or portion thereof) for police employees.

(5) Additional income. The disabled police employee may develop additional income from other employment or self-employment which equals or exceeds the amount received as a disability retirement, subject to the following limitations:

a. The disabled police employee may earn an amount equal to what the City is paying under the disability retirement program without jeopardizing this benefit. Any excess will be applied 100 percent toward the reduction of the City’s retirement system payment;

b. The determination of the amount of income received by a disabled police employee from outside employment or self-employment will be as reported for federal income tax purposes for each calendar year of disability and adjustments made (if any) to the amount payable from the City’s retirement system for the April payment, which is made in May of each year. Such adjusted payments will continue monthly while payments are due until the following May. At that time, the process of calculating adjustments (if any) will again be made. Failure of the disabled police employee to report income from outside employment or self-employment by April 16 of each year while on disability retirement may result in discontinuance of the disability retirement benefit;

c. For employees who retire after July 14, 1986, the determination of the amount of income received by a disabled police employee from outside employment or self-employment will be as reported for federal income tax purposes, plus all contributions to deferred compensation plans, whether made by the retiree or made on his behalf, for each calendar year of disability and adjustments made, if any, to the amount payable from the City’s retirement system for the April payment, which is made in May of each year. Such adjusted payments will continue monthly while payments are due until the following May. At that time, the process of calculating adjustments, if any, will again be made. Failure of the disabled police employee to report income from outside employment or self-employment by April 16 of each year while on disability retirement may result in discontinuance of the disability retirement benefit.

(6) Eligibility. The fact that a person disabled as a result of, and in the course of, his duties as a police employee becomes employed as a general employee before applying for an allowance pursuant to this section shall not deprive that person of the right to receive such an allowance.

(7) Employment of retired disabled police employee.

a. A police employee retired for disability pursuant to this section may be employed by the City as a general employee, subject to the terms and conditions of this subsection (7).

b. The disability retirement allowance shall continue to be paid during such employment as a general employee. Income received from the City as a general employee shall be considered as additional income for the purposes of subsection (e) of this section.

c. For the purposes of this article, and notwithstanding any other provision of this article (and to the extent relevant in light of the fact that no benefits were earned under this plan on or after June 21, 1993), a retired disabled police employee employed as a general employee shall be treated as if newly hired with no prior City employment on the date such general employment began, and shall be eligible for benefits under this article to the same extent as any other general employee with the same date of hire and no prior City employment.

(Code 1965, § 2818; Code 2002, § 50-53. Ord. No. 842; Ord. No. 08-4)

2.45.250 Actuarial assumptions.

(a) Except as otherwise specifically provided in this section or elsewhere in this article, the value of any benefits payable to a member, surviving spouse, joint annuitant, or other beneficiary hereunder, in a form other than the form provided for in section 2.45.120(a), shall be equal to the value of the individual life annuity otherwise payable to the member, surviving spouse, or beneficiary, as determined on the basis of the following actuarial assumptions:

(1) The assumed interest rate shall be eight percent per annum compounded annually;

(2) The assumed mortality rates for members shall be based on the 1971 Group Annuity Male Mortality Table. A single table of rates, based on age only, shall be used for both males and females;

(3) The assumed mortality rates for surviving spouses and other joint annuitants or beneficiaries shall be based on the 1971 Group Annuity Male Mortality Table A single table of rates, based on age only, shall be used for both males and females.

(b) For purposes of adjusting the defined benefit plan limitations set forth in subsections 2.45.100(e)(l) and (2) and (f)(2);

(1) The assumed interest rate shall be as follows.

a. In the case of a benefit which begins prior to the date a member attains age 62 under subsection 2.45.100(e)(1) and (except as provided in (c) below) in the case of the form of any benefit under subsection 2.45.100(f)(2), the assumed interest rate shall not be less than the greater of five percent or the rate specified in subsection (a)(1) of this section 2.45.250.

b. In the case of a benefit which begins after the member attains age 65 under subsection 2.45.100(e)(2), the assumed interest rate shall not be greater than the lesser of five percent or the rate specified in subsection (a)(1) of this section 2.45.250.

c. In the case of any form of benefit determined under subsection 2.45.100(e)(2) which is subject to the relative value restrictions of Code § 417(e)(3), the assumed interest rate shall not be less than the greater of the applicable interest rate or the rate specified in subsection (a)(1) of this section 2.45.250. In the case of any form of benefit determined under subsection 2.45.100(e)(2) that is not subject to Code § 417(e)(2) the Board shall determine the assumed interest rate in accordance with the Code and rules and regulations issued thereunder.

(2) The assumed mortality rate shall be determined by the applicable mortality table as defined in paragraph (2) of subsection (c) below.

(1) The applicable interest rate shall be the “applicable interest rate” as defined in Code § 417(e)(3)(A)(ii)(II), and shall be the annual rate of interest on 30-year securities as of the most recent December at least 2 months before the annuity starting date.

(2) The applicable mortality table shall be the “applicable mortality table” as defined in Code § 417(e)(3)(A)(ii)(I) in effect on the annuity starting date.

(Code 2002, § 50-54. Ord. No. 08-4)

2.45.260 List of members.

Appendix A is at the end of this article and made a part of this section by reference. The individuals, listed by identification number, are members of the retirement system as provided herein as of January 1, 2007. The City retains the right to amend this appendix A to add individuals to the extent appropriate and to correct (by deletion) any erroneous listing of an individual on this appendix. The City Manager, with the concurrence of the City Attorney, may amend this appendix.

The administrator shall notify, in writing, each individual who is listed on this appendix that he or she is a member of the retirement system and has earned benefits hereunder. Such notice shall be provided within a reasonable time after this restated plan is adopted by the City. The administrator shall also notify each individual who is added to (or deleted from) this appendix.

(Code 1965, § 2819; Code 2002, § 50-55. Ord. No. 842; Ord. No. 83-24; Ord. No. 08-4)

2.45.270 Minimum distribution requirements

(a) General Rules.

(1) Effective Date. Notwithstanding any other provision of the retirement system to the contrary, the provisions of this section shall apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.

(2) Precedence. The requirements of this section shall take precedence over any inconsistent provisions of the retirement system.

(3) Requirements of Treasury Regulations Incorporated. All distributions required under this section shall be determined and made in accordance with the Treasury regulations under section 401(a)(9) of the Code.

(4) Tefra Section 242(b)(2) Elections. Notwithstanding the other provisions of this section 2.45.270, distributions may be made under a designation made before January 1, 1984, in accordance with section 242(b)(2) of TEFRA and the provisions of the retirement system that relate to section 242(b)(2) of TEFRA.

(b) Time and manner of distribution.

(1) Required beginning date. The member’s entire interest shall be distributed, or begin to be distributed, to the member no later than the member’s required beginning date.

(2) Death of member before distributions begin. If the member dies before distributions begin, the member’s entire interest shall be distributed, or begin to be distributed, no later than as follows:

(i) If the member’s surviving spouse is the member’s sole designated beneficiary, then, except as provided in the retirement system, distributions to the surviving spouse shall begin by December 31 of the calendar year immediately following the calendar year in which the member died, or by December 31 of the calendar year in which the member would have attained age 70½, if later.

(ii) If the member’s surviving spouse is not the member’s sole designated beneficiary, then, except as provided in the retirement system, distributions to the designated beneficiary shall begin by December 31 of the calendar year immediately following the calendar year in which the member died.

(iii) If there is no designated beneficiary as of September 30 of the year following the year of the member’s death, the member’s entire interest shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member’s death.

(iv) If the member’s surviving spouse is the member’s sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this subsection (b), other than subsection (b)(2)(ii), shall apply as if the surviving spouse were the member.

For purposes of this subsection (b)(2) and subsection (e), distributions are considered to begin on the member’s required beginning date (or, if subsection (b)(2)(i) applies, the date distributions are required to begin to the surviving spouse under subsection (b)(2)(ii)). If annuity payments irrevocably commence to the member before the member’s required beginning date (or to the member’s surviving spouse before the date distributions are required to begin to the surviving spouse under subsection (b)(2)(i)), the date distributions are considered to begin is the date distributions actually commence.

(3) Form of distribution. Unless the member’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum distribution on or before the required beginning date, as of the first distribution calendar year distributions shall be made in accordance with subsections (c), (d) and (e) of this section. If the member’s interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of section 401(a)(9) of the Code and the Treasury Regulations.

(1) General annuity requirements. If the member’s interest is paid in the form of annuity distributions under the retirement system, payments under the annuity shall satisfy the following requirements:

(i) The annuity distributions shall be paid in periodic payments made at intervals not longer than one year.

(ii) The distribution period shall be over a life (or lives) or over a period certain not longer than the period described in subsection (d) or (e).

(iii) Once payments have begun over a period certain, the period certain shall not be changed even if the period certain is shorter than the maximum permitted.

(iv) Payments shall either be non-increasing or increase only as follows:

a. By an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics;

b. To the extent of the reduction in the amount of the member’s payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in subsection (d) dies or is no longer the member’s beneficiary pursuant to a qualified domestic relations order;

c. To provide cash refunds of employee contributions upon the member’s death; or

d. To pay increased benefits that result from a retirement system amendment.

(2) Amount required to be distributed by required beginning date. The amount that must be distributed on or before the member’s required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under subsections (2)(b)(i) or (ii)) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the member’s benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the member’s required beginning date.

(d) Requirements for annuity distributions that commence during member’s lifetime.

(1) Joint life annuities where the beneficiary is not the member’s spouse. If the member’s interest is being distributed in the form of a joint and survivor annuity for the joint lives of the member and a non-spouse beneficiary, annuity payments to be made on or after the member’s required beginning date to the designated beneficiary after the member’s death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the member using the table set forth in Q&A-2(c) of section 1.401(a)(9)-6 of the Treasury Regulations; provided, however, that if the member’s annuity starting date precedes the year in which the member attains age 70, the member’s and nonspouse beneficiary’s age difference shall be adjusted as set forth in Q&A-2(c) in order to determine the applicable percentage as provided in the table set forth in Q&A-2(c). If the form of distribution combines a joint and survivor annuity for the joint lives of the member and a non-spouse beneficiary and a period certain annuity, the requirement in the preceding sentence shall apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain.

(2) Period certain annuities. Unless the member’s spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the member’s lifetime may not exceed the applicable distribution period for the member under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the member reaches age 70, the applicable distribution period for the member is the distribution period for age 70 under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations plus the excess of 70 over the age of the member as of the member’s birthday in the year that contains the annuity starting date. If the member’s spouse is the member’s sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the member’s applicable distribution period, as determined under this subsection (d)(2), or the joint life and last survivor expectancy of the member and the member’s spouse as determined under the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations, using the member’s and spouse’s attained ages as of the member’s and spouse’s birthdays in the calendar year that contains the annuity starting date.

(e) Requirements for minimum distributions where member dies before date distributions begin.

(1) Member survived by designated beneficiary. If the member dies before the date distribution of his or her interest begins and there is a designated beneficiary, the member’s entire interest shall be distributed, beginning no later than the time described in subsections (b)(2)(i) or (ii), over the life expectancy of the designated beneficiary or over a period certain not exceeding:

(i) Unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the designated beneficiary’s age as of the designated beneficiary’s birthday in the calendar year immediately following the calendar year of the member’s death; or

(ii) If the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the designated beneficiary’s age as of the designated beneficiary’s birthday in the calendar year that contains the annuity starting date.

(2) No designated beneficiary. If the member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the member’s death, distribution of the member’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death.

(3) Death of surviving spouse before distributions to surviving spouse begin. If the member dies before the date distribution of his or her interest begins, the member’s surviving spouse is the member’s sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this subsection (e) shall apply as if the surviving spouse were the member, except that the time by which distributions must begin shall be determined without regard to subsection (b)(2)(i).

(f) Definitions.

The following words and phrases used in this section have the following meanings:

(1) Designated beneficiary. The individual who is designated as the beneficiary under subsection 2.45.200(g) of this article and is the designated beneficiary under Code § 401(a)(9) and section 1.401(a)(9)-1, Q&A-4, of the Treasury Regulations.

(2) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the member’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the member’s required beginning date. For distributions beginning after the member’s death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to subsection (b)(2) of this section.

(3) Life expectancy. Life expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9 of the Treasury Regulations.

(4) Required beginning date. The date specified under Code § 401(a)(9)(C).

Appendix A. List of Members.

The master list of member names is on file in the City Clerk’s Office.

TABLE INSET:


1. AJ1
2. AW2
3. AS3
4. AJ4
5. AL5
6. AJ6
7. AJ7
8. AP8
9. AK0
10. AP10
11. AH11
12. AL12
13. AA13
14. BD14
15. BR15
16. BJ16
17. BM17
18. BI18
19. BE19
20. BR20
21. BA21
22. BD22
23. BM23
24. BD24
25. BM25
26. BG26
27. BJ27
28. BD28
29. BK29
30. BD30
31. BA31
32. BF32
33. BW33
34. BJ34
35. BG35
36. BJ36
37. BR37
38. BG38
39. BO39
40. CB40
41. CB41
42. CW42
43. CL43
44. CW44
45. CJ45
46. CT46
47. CR47
48. CP48
49. CS49
50. CS50
51. CS51
52. CP52
53. CH53
54. CW54
55. CT55
56. CE56
57. CK67
58. CC58
59. CG59
60. CW60
61. CB61
62. CN62
63. CS63
64. CC64
65. CM65
66. CG66
67. CA67
68. CA68
69. DV69
70. DR70
71. DL71
72. DJ72
73. DH73
74. DM74
75. DK75
76. DS76
77. DJ77
78. DG78
79. DB79
80. DW80
81. DM81
82. DD82
83. DM83
84. EP84
85. EI85
86. EJ86
87. ER87
88. FE88
89. FJ89
90. FB90
91. FF91
92. FF92
93. FS93
94. FE94
95. FZ95
96. FD96
97. FJ97
98. GA98
99. GJ99
100. GJ100
101. GP101
102. GM102
103. GS103
104. GS104
105. GV105
106. GM106
107. GE107
108. GS108
109. HA109
110. HW110
111. HJ111
112. HM112
113. HD113
114. HJ114
115. HR115
116. HM116
117. HJ117
118. HS118
119. HG119
120. HK120
121. HC121
122. HP122
123. HC123
124. HG124
125. HD125
126. HH126
127. HA127
128. HJ128
129. HW129
130. HN130
131. HR131
132. HJ132
133. HB133
134. JJ134
135. JR135
136. JS136
137. JJ137
138. JB138
139. JC139
140. JR140
141. JT141
142. JD142
143. JB143
144. JE144
145. JL145
146. JD146
147. JA147
148. KD148
149. KW149
150. KE150
151. KS151
152. KH152
153. KW153
154. KD154
155. KT155
156. KR156
157. LJ167
158. LG168
159. LS169
160. LL170
161. LL171
162. LG172
163. LR173
164. LM174
165. MP175
166. MW176
167. MD177
168. MM178
169. MJ179
170. MD180
171. MH181
172. MM182
173. MS183
174. MA184
175. MA185
176. MM186
177. ML187
178. MW188
179. MG189
180. MW190
181. MM191
182. MB192
183. MC193
184. MV194
185. MJ195
186. MM196
187. MH197
188. MJ198
189. MC199
190. MP200
191. MR201
192. MT202
193. MK203
194. MM204
195. MR205
196. ME206
197. MJ207
198. MW208
199. NA209
200. NA210
201. NR211
202. NT212
203. NA213
204. NH214
205. NJ215
206. NC216
207. NL217
208. NY218
209. OP219
210. OJ220
211. OJ221
212. PC222
213. PM223
214. PF224
215. PM225
216. PR226
217. PR227
218. PJ228
219. PJ229
220. PB230
221. PP231
222. PH232
223. PE233
224. PC234
225. PS235
226. PC236
227. PV237
228. QF238
229. QF239
230. RT240
231. RK241
232. RR242
233. RF243
234. SR244
235. SE245
236. SJ246
237. SK247
238. SM248
239. SE249
240. SA250
241. SR251
242. SL252
243. SR253
244. SD254
245. SR255
246. SV256
247. SJ257
248. SJ258
249. SD259
250. SL260
251. SL261
252. SM262
253. ST263
254. SR264
255. SF265
256. SF266
257. SD267
258. SH268
259. SG269
260. SL270
261. SB271
262. SK272
263. SG273
264. TS274
265. TS275
266. TL276
267. TC277
268. TD278
269. TE279
270. TC280
271. TN281
272. TJ282
273. TJ283
274. TM284
275. TR285
276. TU286
277. TT287
278. TF288
279. TM289
280. TM290
281. UM291
282. UR292
283. VG293
284. VD294
285. VF295
286. WJ296
287. WG297
288. WJ298
289. WF299
290. WJ300
291. WJ301
292. WL302
293. WW303
294. WJ304
295. WB305
296. WM306
297. WM307
298. WK308
299. WC309
300. WR310
301. WH311
302. WJ312
303. WC313
304. WJ314
305. WJ315
306. WJ316
307. YB317
308. ZB318
309. ZJ319

(Code 2002, § 50-56. Ord. No. 08-4)