Chapter 2.32
RETIREMENT SYSTEM
Sections:
2.32.050 Retirement board—Established—Membership.
2.32.090 Employee contributions.
2.32.010 Purpose.
The purpose of this chapter is to provide a retirement system for employees of the city. (Ord. 238 § 1 (part), 1968)
2.32.020 Definitions.
As used in this chapter, the following words have the following meanings:
“Accumulated normal contributions” means the sum of all normal contributions, deducted from the compensation of a member and standing to the credit of a member’s account, together with interest thereon;
“Beneficiary” means any person in receipt of benefits under this chapter;
“Board” means retirement board as established by this chapter;
“City” means city of Folsom;
“City service” means service rendered as an employee for compensation;
“Compensation” means all remuneration paid by city in cash for services and excludes compensation based on overtime;
“Current service” means city service rendered as a member;
“Employee” or “person employed” means any person, including persons generally classed as “officers” or “officials” in the employ of the city, whose compensation in such employment is paid wholly by the city;
“Final compensation” means the average monthly compensation earnable by a member during the period of 5 consecutive years of city service, immediately preceding retirement;
“Fiscal year” means any year commencing with January 19th and ending December 31st next following;
“Member” means any person included in membership in the retirement system;
“Prior service” means the city service of a member rendered prior to January 1, 1969;
“Retirement” means withdrawal from membership in the retirement system with a retirement allowance granted under the provision of this chapter;
“Retirement system” means Folsom municipal employees’ retirement system;
“Service” means employment by the city. (Ord. 238 § 1 (part), 1968)
2.32.030 Created.
A retirement system is created and established to become effective January 1, 1969, and to be known as the “Folsom municipal employees retirement system.” (Ord. 238 § 1 (part), 1968)
2.32.040 Membership.
With the exception of employees hereinafter excluded from membership, all employees in the employ of the city on January 1, 1969, shall become members. Every new member who enters city service after January 1, 1969, shall become a member at the start of the fiscal year occurring after the completion of 6 months service, and having been employed prior to the age of 60 years. Temporary, part time, and contract employees shall not become members. (Ord. 238 § l (part), 1968)
2.32.050 Retirement board—Established—Membership.
There is established a retirement board consisting of five members. Each member shall serve a term of two years, or until his successor is elected or appointed. Of the members first elected or appointed, three shall serve one year terms and two shall serve two year terms. Two members of the retirement board shall be elected by the members of the system. One of such, initially, shall serve a one year term, to be determined by lot. The mayor, with the approval of the council, shall appoint the other members who shall be selected as follows: one, a member of the public, not in the employ of the city; one, a member of the city council; and one being either a member of the city council or the city manager. In making such appointment, the mayor shall designate the term of the members. The retirement board shall serve in an advisory capacity only. It shall have no power to incur indebtedness or otherwise bind the city by its decisions which shall be recommendatory to the city manager who shall transmit such recommendations to the city council. The duties of the board shall be primarily, but not exclusively, to make recommendations as to the investment of retirement system funds, the choice of mortality tables and interest rates, to conduct hearings on claims of members, and recommend such changes in the system as may be advisable. (Ord. 487 § 4, 1982: Ord. 238 § 1 (part), 1968)
2.32.060 Pension.
Every member shall be entitled to a pension based upon final compensation and length of service in accordance with the following formula:
One percent of final compensation up to six hundred fifty dollars a month plus two percent of final compensation in excess of six hundred fifty dollars a month, times the number of years of service. (Ord. 238 § 1 (part), 1968)
2.32.070 Retirement date.
The normal retirement date shall be the first day of the month coinciding with or next following the employee’s sixty-fifth birthday, or the tenth anniversary following his sixty-fifth birthday, whichever is later, but in no event later than the first day of the month following his seventieth birthday. Postponed normal retirement date to age seventy shall result in an actuarially increased benefit. (Ord. 238 § 1 (part), 1968)
2.32.080 Early retirement.
Early retirement may be had by members who have completed ten years of continuous employment, of which five years were under the system, and who are at least fifty-five years of age. Such members are entitled to an actuarially reduced annuity based upon contributions and years of service. Early retirement may also be had by members who are at least sixty-two years of age regardless of years of service. Such members shall be entitled to an actuarially reduced annuity based on contributions and years of service. This section shall be effective for retiring members commencing January 1, 1976. (Ord. 342 § 1, 1976: Ord. 238 § 1 (part), 1968)
2.32.090 Employee contributions.
Employee contributions to the plan shall be made by payroll deduction in accordance with the following schedule:
1. One and five-tenths percent of compensation up to six hundred fifty dollars a month;
2. Three percent of compensation in excess of six hundred fifty dollars a month. (Ord. 238 § 1 (part), 1968)
2.32.100 City contribution.
The city shall contribute to the plan monthly a sum sufficient to pay for prior service, costs of administration, and thereafter, to the maximum amount permitted by law. (Ord. 238 § 1 (part), 1968)
2.32.110 Member withdrawal.
Any member withdrawing from the system without retirement shall be entitled to be paid his normal accumulated contributions. A member may withdraw from the system upon his ceasing city service for any cause, and members shall cease to be members upon death, prior to retirement. (Ord. 238 § 1 (part), 1968)
2.32.120 Annuity—Forms.
Upon retirement, members are entitled to a normal annuity for life only, or may elect to receive his pension in any of the following forms:
1. Five-, ten- and twenty-year certain and life annuity;
2. Joint and survivor annuity. (Ord. 238 § 1 (part), 1968)
2.32.130 Vested interest.
Any member with five years of continuous city service after the effective date of the system has a one hundred percent vested interest in the plan if he withdraws from city service and leaves his contribution on deposit. (Ord. 238 § 1 (part), 1968)
2.32.140 Exceptions.
The city council may, to prevent undue hardship, provide for retirement of members of the system upon its effective date without requiring five years of service in the system if such person is of the age of sixty-five years or over upon entry into the system and has in excess of fifteen years of uninterrupted city service. (Ord. 238 § 1 (part), 1968)
2.32.150 Benefits—Increase.
This chapter may be amended by the council from time to time to provide increased benefits, but benefits shall not be decreased nor shall contributions of employees be increased without corresponding increased benefits, and this chapter may only be repealed by a vote of the electorate. The council shall make no law or ordinance which in any event deprives at any time any member the return of his normal accumulated contributions. (Ord. 238 § 1 (part), 1968)