Chapter 2.56 RETIREMENT SYSTEMS FOR CITY EMPLOYEES

The purpose of this article is to establish a new retirement system, in addition to the Pittsburg municipal employees’ retirement system enacted by the electorate on April 13, 1948 (codified in Article I of this chapter), and to provide death benefits for persons employed by the city, said system to be integrated with the Old Age, Survivors’ and Disability Insurance System administered by the Social Security Administration of the United States of America; provided, that the system established in this article shall not apply to persons who choose to stay in the existing retirement system of 1948, nor the policemen and firemen as defined in PMC 2.56.300, nor to elective officers and members of boards and commissions appointed by the mayor and/or the city council, except as provided in PMC 2.56.350(F). [§ 1 of Ord. dated April 10, 1962.]

2.56.300 Definitions.

The following words and phrases, as used in this article, unless a different meaning is plainly required by the context, shall have the following meanings:

“Accumulated additional contributions” means the sum of all the additional contributions of a member standing to the credit of his individual account, together with interest thereon as declared by the board in compliance with PMC 2.56.350(D).

“Accumulated contributions” means accumulated normal contributions, plus accumulated additional contributions, plus accumulated prior service contributions.

“Accumulated normal contributions” means the sum of all normal contributions, deducted from the compensation of a member and standing to the credit of his individual account, together with interest thereon, as declared by the board in compliance with PMC 2.56.350(D).

“Accumulated prior service contributions” means the sum of all prior service contributions of a member standing to the credit of his individual account together with interest thereon, as declared by the board in compliance with PMC 2.56.350(D).

“Additional contributions” means contributions provided for in PMC 2.56.330(C).

“Annuity” means payments for life derived from contributions made by a member as provided for in this article.

“Beneficiary” means any person in receipt of a pension, annuity, retirement allowance, death benefit or any other benefit provided in this article.

“Board” means “board of administration” as hereinafter created and defined in PMC 2.56.340.

“City service” means service rendered by an employee for compensation, and for the purpose of this article, a member shall be considered as being in the “city service” only while he is receiving compensation from the city for such service.

“Compensation” means the wages or salaries before any deductions or withholdings, payable in cash to any member of this retirement system; plus the monetary value, as determined by the board, of any allowance, whether paid in cash or in kind, payable in addition to wages or salary.

“Compensation earnable” by a member means the average compensation as determined by the board on the basis of the average period of employment of members in the same group or class of employment and at the same rate of pay. The computation for any absence of a member shall be based on the compensation earnable by him at the beginning of the absence.

“Current service” means service rendered while a member of this retirement system.

“Employee” or “person employed” means any person including persons generally classified as “officers” or “officials” in the employ of the city whose compensation in such employment is paid wholly by the city.

“Federal system” means the Old Age, Survivors’ and Disability Insurance System, administered by the Social Security Administration, Department of Health, Education and Welfare, United States of America.

“Final compensation” means the average annual compensation earnable by a member during the three years immediately preceding his retirement.

“Fiscal year” means any year commencing with July 1st and ending with June 30th next following.

“Member” means any person included in the membership of the retirement system as provided in PMC 2.56.320.

“Miscellaneous employees” are all employees of the city, other than policemen and firemen, who are eligible for membership in this retirement system, as provided in PMC 2.56.320 and 2.56.350.

“Normal contributions” means contributions at the rates provided for in PMC 2.56.330(A).

“Pension” means payments for life derived from contributions made by the city as provided for in this article.

“Policemen” and “firemen” mean all members of the police and fire departments of the city, who are eligible for membership in the State Employees’ Retirement System under that system’s definition of “local safety member.”

“Prior service” means service rendered prior to becoming a member of this retirement system.

“Prior service contributions” means the normal contributions made by members under “Pittsburg municipal employees’ retirement system of 1948.”

“Retirement allowance” means the pension plus the annuity.

“Retirement fund” means “Pittsburg miscellaneous employees’ retirement fund of 1962” as created by PMC 2.56.360.

“Retirement system” means “Pittsburg miscellaneous employees’ retirement system of 1962” as provided for in PMC 2.56.310.

“Service” means employment by the city. [§ 2 of Ord. dated April 10, 1962.]

2.56.310 Establishment and name of retirement system.

A retirement system is created and established to become effective July 1, 1962, and to be known as the “Pittsburg miscellaneous employees’ retirement system of 1962.” On and after July 1, 1962, and subject to the provisions of PMC 2.56.330, the provisions of this article shall apply to all employees who become members of this system. [§ 3 of Ord. dated April 10, 1962.]

2.56.320 Membership.

A. With the exception of those employees who are excluded from membership as provided in subsection (B) of this section, all employees all of the city shall become members of this retirement system, as follows:

1. Every employee who enters city service on or after July 1, 1962;

2. Every employee who reenters the service of the city after July 1, 1962, and who prior to such reentry has completed six months’ service.

B. The following employees of the city shall not become members of this retirement system, except as herein otherwise provided:

1. Elective officers and members of boards or commissions appointed by the mayor or by the city council; provided, that the elective officers as hereinafter provided may make application to the board for membership in the retirement system;

2. Policemen and firemen, as defined in PMC 2.56.300;

3. Employees serving on a part-time basis;

4. Persons employed under contract for a definite period and for the performance of specific duties;

5. Employees holding emergency positions or positions which are designated as emergency positions;

6. Persons employed for temporary employment.

C. It shall be the duty of the head of each office or department to give immediate notice in writing to the board of the change in status of any member of his office or department resulting from transfer, promotion, leave of absence, resignation, reinstatement, dismissal or death.

D. Each member shall be subject to all the provisions of this article and to all the rules and regulations adopted by the board.

E. Every employee of the city, other than policemen and firemen, who was a member of the retirement system of 1948 may become a member of the system established by this article by filing with the board, within 90 days after the effective date of the ordinance codified in this article, his written election to become a member of this system, and shall thereafter be subject to the provisions set forth in this article. The election to become a member of this system shall be irrevocable. An employee electing to become a member of this system shall receive credit for all service credited under the retirement system of 1948, and his individual account of normal contributions shall be transferred to this system and shall be deemed to be prior service contributions. [§ 4 of Ord. dated April 10, 1962.]

2.56.330 Contributions.

A. The normal rates of contribution of members shall be based on sex and age to nearest birthday at the time of entry into the retirement system. For the purposes of this system, the age of entry of employees transferring to this retirement system from the retirement system of 1948 shall be the age at entry into the retirement system of 1948.

B. The normal rates of contribution shall be such as will provide, on the average, an annuity at age 65 of one-one hundred fortieth of final compensation for each year of service after entry into this system. The rates of contribution shall, from time to time, be revised as provided in PMC 2.56.350(A). Members shall contribute to the system at one-half of such normal rate of contribution on monthly compensation not in excess of $400.00, and at the normal rate on monthly compensation in excess of $400.00. The board shall certify to the city clerk the rates of contribution for each member and each of the amounts shall be deducted from the monthly compensation of the member by the city clerk and shall be paid into the retirement fund hereinafter provided for, and shall be credited to the individual account of the member for whom such deduction was made. Every member shall be deemed to consent and agree to the contribution made and provided for herein and shall receipt in full for his salary, compensation or wages. Payment less the contribution shall be full and complete discharge of all claims and demands whatsoever for the services rendered by such person during the period covered by such payment, except his claim to the benefits to which he may be entitled under the provisions of this article.

C. Upon proper application duly made to the board for authority and the right and privilege to do so, any member may elect to contribute regularly or irregularly at rates or in amounts in excess of those provided in subsection (A) of this section, for the purpose of providing additional benefits; provided, that the exercise of this privilege by a member shall not obligate the city to any additional payments or financial obligation of any nature whatsoever. Upon such application being duly made to the board for regular contributions at higher rates, the board shall furnish to such member information concerning the nature and amount of additional benefits to which he is entitled by making such additional regular contributions or payments. All such additional contributions must be approved by the board and made under rules established by the board.

D. There shall be paid into the retirement fund, by contributions of the city, that percentage of the monthly compensation of members of the system, determined by actuarial valuation as provided in PMC 2.56.350(A), necessary to maintain the system on a reserve basis and to pay the benefits allowable under the system on account of service after July 1, 1962, and which are not provided by member’s contributions.

E. In addition to the contributions required of the city for current service as provided in subsection (D) of this section, the city shall contribute monthly to the retirement fund that sum of money or that percentage of the compensation of members, determined by an actuarial valuation as provided in PMC 2.56.350(A), necessary to liquidate the liabilities of the system on account of service rendered prior to July 1, 1962, and which are not provided by member’s prior service contributions or by such city contributions which are transferred to this system from the retirement system of 1948.

F. From and after the effective date of the ordinance codified in this article, the payment of allowances to or on behalf of any employees who had retired under the provisions of the Retirement Act of 1948 shall be made an obligation of this system, and such liabilities shall be included in determining the contributions required of the city under subsection (E) of this section.

G. Upon the expiration of 90 days after the effective date of the ordinance codified in this article, the board of administration of the retirement system of 1948 shall transfer to the retirement fund created by this article that proportion of accumulated city contributions remaining in the retirement fund of 1948 that, in the opinion of the board, is over and above the amount of money necessary to meet the obligations of the city to those employees of the city who remain in the retirement system of 1948. [§ 5 of Ord. dated April 10, 1962.]

2.56.340 Board of administration – Membership – Terms.

A. The board of administration shall consist of five members. Two of the members shall be elected by the members of this system by a vote of the majority of the members present at a regular stated meeting of the members, which meeting shall be convened by the city clerk, giving not less than 10 days’ written notice to all members, and which vote shall be taken by written, secret ballot. Two of the members shall be elected by the city council, which election shall be by a majority vote of the city council at a regular or adjourned regular meeting. The fifth member shall be selected by the four members who have been elected as hereinabove provided. The fifth member shall not be an employee of the city, either temporary or permanent, nor a member of the city council, nor a member of any other official board or commission of the city, except as provided in subsection (D) of this section, nor in any other way employed by contract or otherwise by the city, and shall not be a retired employee of the city entitled to benefits under this article; but the fifth member shall be a disinterested, qualified resident and voter of the city.

B. The terms of office for the first member-elected board members shall expire on June 30, 1964 and June 30, 1966, respectively, and for the first council-elected board members on the same dates. As of July 1, 1964, and each two years thereafter, the members of the system and the city council shall each elect one board member for a four-year term.

C. The fifth member shall be selected for a two-year term, expiring on June 30th of even-numbered years.

D. Membership on the board of administration of the retirement system of 1948 shall not disqualify a person from membership on this board. [§ 6 of Ord. dated April 10, 1962.]

2.56.350 Board of administration – Duties.

The management, control and operation of the retirement system shall be vested in the board, and the board shall exercise the powers and perform all the duties conferred on it by this article, and in particular, the board shall have the following powers, rights and authority:

A. The board shall keep in convenient form such data as is necessary for the actuarial valuation of the retirement fund created by this article. Beginning with July 1, 1963, and at the end of every five-year period thereafter, the board shall cause to be made an actuarial investigation into the mortality, service and compensation experience of the members and beneficiaries as defined by this article and shall further cause to be made an actuarial valuation of the assets and liabilities of the retirement fund, and upon the basis of such investigation and valuation shall do the following:

1. Adopt for the retirement system such mortality, annuity, service and other tables as may be deemed necessary;

2. Revise or change the normal rates of contribution by members on the basis of such mortality, annuity, service and other tables; provided, however, that no adjustment shall be made in such rates for time prior to the effective date of the revision;

3. Revise or change the city’s rates of contribution for current service and for prior service as provided for in PMC 2.56.330(D) and (E).

B. In addition to other records and accounts, the board shall keep such records and accounts as shall be necessary at any time for the following purposes:

1. To establish the total accumulated contribution or contributions of members;

2. To show the total annuity payments made to retired members;

3. To show the accumulated contributions of the city held for the benefit of members on account of service rendered as members of the retirement system.

C. The board shall establish a minimum retirement age and such minimum retirement period of service which is not inconsistent with PMC 2.56.410; provided, that the board, after a review of all the facts and after having given the affected member a reasonable opportunity for a hearing before the board, may require any member so affected, upon attaining the minimum retirement age, to retire and to accept the benefits to which the member would be entitled upon attaining the minimum retirement age. If the board declares that any member, after duly considering the matter as herein provided, shall be retired, it shall be mandatory that the member be retired on the conditions provided by the board.

D. The board shall declare from time to time the rate of interest to be credited on contributions of members, which rate shall not exceed the net rate currently earned on the assets of the retirement fund.

E. The board shall report annually to the city council, which report shall set forth the financial condition of the retirement system, showing the assets and liabilities, including a statement as to accumulated cash and the securities in the retirement fund, as certified to by the auditor or city clerk.

F. The board, upon application of any elective officer for membership in the retirement system, may consider the application only on condition that the elective officer has served or been in the office at the time of making the application for a period of not less than eight consecutive years and shall submit the application for membership in the retirement system in the beginning or commencement of a new term of office, or as soon thereafter as is possible, not to exceed 30 days from the commencement of the new term of office; provided, that if the board is satisfied that all of the conditions have been met and that the elective officer so applying is a member of the retirement system, then the board may declare the elective officer a member of the retirement system, nothing to the contrary in this article notwithstanding; and after having declared the elective officer a member of the retirement system, the board may allow and take into account and give credit for the prior service of the elective officer; provided further, that no credit for prior service shall be allowed to any elective officer for services performed by the elective officer, which services were not continuously and uninterruptedly performed by the elective officer in the office which he holds at the time of making the application next preceding the time of making the application; and provided further, that such prior service credit shall be allowed only if the elective officer pays into the retirement fund an amount equal to the contributions which he would have made, had he been a member of the retirement system during such period of prior service.

G. The board may hire, employ or engage a competent and qualified person to act as secretary for the board on either part-time or full-time basis as the board deems necessary to assist the board in all matters and in performing the administerial duties herein provided and as provided elsewhere in this article. The salary of the secretary shall be established by the approval of all of the members of the board, to be paid out of the funds of the retirement system; provided, that the secretary so appointed or selected shall not be eligible for benefits under the retirement system by reason of serving in this capacity alone; except that upon due application for membership made to the board, the board may, in its discretion, grant to the secretary the right to membership in the retirement system.

H. The board shall have the sole discretion to determine whether or not an employee is a temporary employee, emergency employee, elective officer or other person who is ineligible for membership in the retirement system as set forth in PMC 2.56.320(B).

I. The board shall adopt and from time to time may amend or repeal such rules and regulations, not inconsistent with the provisions of this article, as may be needed to interpret or implement this article. Copies of such rules and regulations shall be transmitted to the city council and shall, upon request, be furnished without charge to any member of this retirement system.

J. The board shall, at the expense of the retirement fund, have the financial records of the system audited annually by a certified public accountant. [§ 7 of Ord. dated April 10, 1962.]

2.56.360 Retirement fund – Establishment.

A fund is created and established to be known as the “Pittsburg miscellaneous employees’ retirement fund of 1962.” It shall consist of all money paid into it in accordance with the provisions of this article, whether such moneys shall take the form of cash, securities or other assets. [§ 8 of Ord. dated April 10, 1962.]

2.56.370 Retirement fund – Management.

The retirement fund shall be managed as follows:

A. The board shall have exclusive control and operation of the fund subject to the restriction that no investment shall be made except upon the affirmative vote of all members of the board and subject also to the terms, conditions, limitations and restrictions imposed by the laws of the state upon the making of investments by city retirement systems as set forth in Sections 45308.1, 45308.2 and 45308.3 of the Government Code.

B. The board, subject to such provisions as may be prescribed by law for the deposit of municipal funds in banks, may deposit cash belonging to the retirement fund in any licensed national bank or banks in this state, or in any bank, banks or corporations authorized or licensed to do banking business and organized under the laws of this state.

C. The city treasurer shall be the custodian of the retirement fund, subject to the exclusive control of the board as to the administration, deposit and investment of the fund, and the city treasurer shall perform all necessary duties relating to the safeguarding of and accounting for the assets of the fund, except as hereinafter provided. Subject to such provisions as may be prescribed by law, the board may, in its discretion, by resolution, designate state or national banks to perform some or all of the custodial duties which would otherwise be performed by the city treasurer.

All payments of the fund shall be made by check or warrant signed by two authorized persons, at least one of whom must be a member of the board. The board shall, by resolution, authorize two or more of its members to sign checks and warrants of the fund and the board may, by resolution, authorize the signature of the city treasurer as custodian or of a board employee to be one of the two names required on each check or warrant. All demands against the fund must be presented to, audited and approved for payment by the board. The board shall provide one or more corporate fidelity bonds, issued by a surety company licensed in the state, in such principal amount as the board may determine, to cover the city treasurer as custodian, the board members and any other persons authorized to receive or disburse assets of the retirement fund, the premium on the bond to be paid from the retirement fund.

D. Interest on any cash and any investments constituting a part of the fund shall be paid into the fund as received.

E. Except as herein provided, no member or employee of the board shall have any interest, direct or indirect, in any investment, the making thereof, or in the gains or profits accruing therefrom. No member or employee of the board, directly or indirectly, for himself or as an agent or employee of another, shall borrow, pledge or hypothecate any of its funds or deposits or in any manner use the same except to make such current and necessary payments as are authorized by the board; nor shall any member or employee of the board be an endorser, cosigner, guarantor or surety or in any manner be an obligor for moneys invested by the board. [Ord. 438 C.S. § 1, 1962; § 9 of Ord. dated April 10, 1962.]

2.56.380 Guaranty.

A. The payments of the city into the Pittsburgh miscellaneous employees’ retirement fund of 1962, as provided in this article, and the payments of the city to the federal system, are made obligations of the city. The board shall prepare annually an estimate of the amounts necessary to meet such obligations and the city council shall appropriate such amounts as are necessary to make such payments.

B. The city by vote of the electorate may at any time change, modify or repeal this article or any part thereof in respect to its future obligations to any member not at that time receiving or being eligible to a pension under this article. It is specifically provided, however, and the city covenants and guarantees that the city’s obligation to those members receiving or eligible to a retirement allowance with respect to services credited under this article to the effective date of change, modification or repeal shall continue in full force and effect as provided in this article. The city’s obligation to those members not receiving or being eligible to a pension at the time of such change, modification or repeal shall be, with respect to service credited under this article prior to such change, modification or repeal, not less than a retirement allowance, upon reaching the minimum age of retirement, equal to the annuity which is the actuarial equivalent of the accumulated value of the member’s contributions standing to his credit at the date of retirement, plus a pension derived from city contributions equal to the annuity provided by the member’s accumulated normal and prior service contributions, increased further by the accumulations of the contributions to the date of retirement with interest, but without further contributions from the city.

C. Notwithstanding any other provisions of this article, the retirement allowance payable upon retirement for service at age 65, or upon qualification for a federal benefit at an older age, to any member who transferred to this system from the retirement system of 1948, shall not be less than an amount which, when added to the primary insurance amount payable to him from the federal system, will equal the allowance which would have been payable had he continued his membership in the retirement system of 1948. [§ 10 of Ord. dated April 10, 1962.]

2.56.390 Withdrawals.

Should the service of a member be discontinued, except by death or retirement, he shall have the option to withdraw all or part of his accumulated contributions. Payment thereof shall be made within one year after the date of demand; provided, that if in the opinion of the board the member is permanently separated from service by reason of such discontinuance, he shall be paid all of his accumulated contributions. Where after a previous discontinuance of city service a member withdrew all or part of his accumulated normal and prior service contributions and failed to redeposit such withdrawn amount in the retirement fund as provided in this section, the board may, in its discretion, delay for not more than one year after a member last rendered city service the withdrawal of all or part of his accumulated normal and prior service contributions.

Where a former member reenters service within three years after discontinuance of service, he may request redeposit in the retirement fund, in not to exceed 12 monthly payments, beginning with the date of reentry into the system, the amount of his accumulated normal and prior service contributions which he previously withdrew therefrom. If a member upon reentering the retirement system after a termination of his membership shall not make such redeposit at the time of his reentrance, the rate of his contribution for future years shall be the normal rate provided for in PMC 2.56.330(A) at his age of reentrance and he shall not receive credit for service to the city prior to the date of his reentrance; otherwise, his rate of contribution for future years shall be based on the same age as his rate prior to the termination of his membership and he shall receive credit for all service credited to him prior to his reentering.

Any other provision in this article to the contrary notwithstanding, a member whose accumulated contributions exceed $500.00 shall have a right to elect, not later than 90 days after the date upon which notice of the right is mailed by the board to the member’s latest address, whether to leave his accumulated contributions on deposit in the retirement system. Failure to make such election shall be deemed an irrevocable election to withdraw his accumulated contributions. An election to allow accumulated contributions to remain in the retirement fund may be revoked by the member at any time prior to receiving a retirement allowance. A member whose membership continues under this section is subject to the same age and disability requirements as applied to other members for service or disability retirement but he is not subject to a minimum service requirement. After the qualification of such member for retirement by reason of age or disability, he shall be entitled to receive a retirement allowance based upon the amount of his accumulated contributions and service standing to his credit at the time of retirement and on the city contributions held for him and calculated in the same manner as for other members, except that the provisions in this article for minimum service and disability retirement allowances do not apply to him unless he meets such minimum service requirements. If a death benefit becomes payable under this article because of death before retirement of such a member, the average annual compensation earnable in the year preceding the date of termination of such service shall be used in computing such benefit under PMC 2.56.470. [§ 11 of Ord. dated April 10, 1962.]

2.56.400 Crediting of interest.

The board shall annually set the rate of interest to be credited on accumulated contributions of members and of the city. Such interest rate shall be based on the actual earnings of the fund and shall be compounded annually. Interest shall be credited to members’ accounts on June 30th of each year based on the balance in his account on the previous June 30th. Pro rata interest shall be credited to the date of termination. [§ 12 of Ord. dated April 10, 1962.]

2.56.410 Service retirement.

A member who has attained age 55 and who is credited with at least 10 years of service may be retired upon his written application filed with the board. Retirement shall be compulsory upon the first day of the month next succeeding the month in which he attains age 65, regardless of service credited; provided, however, that no member shall be compulsorily retired until he has become eligible to receive the federal system primary insurance amount. [§ 13 of Ord. dated April 10, 1962.]

2.56.420 Allowance upon service retirement.

Upon retirement for service, a member shall be entitled to receive, in addition to such benefits as may be paid by the federal system, a retirement allowance for life which shall be the sum of:

A. An annuity which shall be the actuarial equivalent of his accumulated contributions;

B. A current service pension which, when added to the annuity provided by his accumulated normal contributions, shall equal one-one hundred fortieth of the first $400.00 of the member’s final compensation per year of current service, plus one-seventieth of the member’s final compensation in excess of $400.00 per year of current service with which he is entitled to be credited at retirement;

C. A prior service pension which, when added to the annuity provided by the member’s accumulated prior service contributions, shall equal one-seventieth of the member’s final compensation per year of prior service with which he is entitled to be credited at retirement.

If retirement occurs before age 65, the above retirement allowance shall be reduced to that amount which the value of the allowance deferred to age 65 will provide at the actual age of retirement. [§ 14 of Ord. dated April 10, 1962.]

2.56.430 Disability retirement.

Retirement of a member for disability shall be made by the board as provided herein: Upon the application of the head of the office or department in which a member is employed, or upon the application of a member or person acting in his behalf, stating that a member is physically or mentally incapacitated for the performance of duty and ought to be retired, any member while in the service, or while mentally or physically incapacitated for the performance of duty if such incapacity has been continuous from discontinuance of service, shall be examined by a qualified medical expert appointed by the board.

When a member is permanently incapacitated for the performance of duty as a result of injury or disease arising out of and in the course of his employment with the city, he shall be retired for disability with retirement allowance regardless of age or amount of service.

The board shall be governed by the findings of the Industrial Accident Commission of the state in the determinations of disability arising out of and in the course of a member’s employment with the city. Should a member be permanently incapacitated for the performance of his duty from any other cause whatsoever, he shall be retired regardless of age, but with retirement allowance only after 10 years of service. Permanent incapacity for the performance of duty shall in such cases be determined by the board.

The board, at the expense of the retirement fund, shall secure such medical services and advice as may be necessary to carry out the purpose of this section and of PMC 2.56.450. [§ 15 of Ord. dated April 10, 1962.]

2.56.440 Allowance upon disability retirement.

Upon retirement for disability, a member shall receive, in addition to such benefits as may be paid by the federal system, a retirement allowance which shall consist of:

A. A life annuity which his accumulated contributions at the time of his retirement would entitle him to be based upon the actuarial tables adopted by the board;

B. If in the opinion of the board such disability is not due to intemperance, wilful misconduct or violation of law involving moral turpitude on the part of the member, a pension which, when added to the annuity in subsection (A) of this section, which is derived from his accumulated normal and prior service contributions, shall equal 90 percent of one-seventieth of this final compensation for each year of credited service if such allowance exceeds 25 percent of his final compensation; otherwise 90 percent of one-seventieth of his final compensation for each year of service which would have been credited had his service continued to age 65, but in no event shall such allowance exceed 25 percent of his final compensation. [§ 16 of Ord. dated April 10, 1962.]

2.56.450 Safeguards on disability retirement.

A. The board may, at its pleasure, require any disability beneficiary, under age 65, to undergo medical examination, such examination to be made by a qualified doctor of medicine appointed by the board, at the place of residence of the beneficiary or other place of mutual convenience. Upon the basis of such examination, the board shall determine whether the disability beneficiary is physically or mentally incapacitated for service in the position held by him when retired for disability. Should the board determine that the beneficiary is not so incapacitated, his retirement allowance shall be canceled.

B. Should a disability beneficiary enter the service and be eligible for membership in the retirement system in accordance with PMC 2.56.320(A), his disability retirement allowance shall be canceled and he shall immediately become a member of the retirement system, his rate of contribution for future years being that established for his age at the time of such reentry. His individual account shall be credited with his accumulated contributions less the disability annuity payments made to him. Such member shall receive credit for the service credited to him prior to being retired.

C. Should the disability beneficiary prior to attaining age 65 reenter the service and be ineligible for membership in the retirement system, the board shall reduce the amount of his retirement allowance to an amount which, when added to the compensation earned by him upon reentry into the service, shall not exceed the final compensation on the basis of which his retirement allowance was determined.

D. Should any disability beneficiary under age 65 refuse to submit to medical examination, his allowance may be discontinued until he submits to such medical examination, and should such refusal continue for one year his retirement allowance may be canceled.

E. Should the retirement allowance of any disability beneficiary be canceled for any cause other than reentrance into the city service, he shall be paid his accumulated contributions, less the annuity payments made to him. [§ 17 of Ord. dated April 10, 1962.]

2.56.460 Nomination and revocation of beneficiaries.

A member may nominate a beneficiary to whom the death benefit hereafter provided for shall be payable. Any nomination of a beneficiary made by a member may be revoked at the pleasure of the member and a different beneficiary may be nominated. All nominations and revocations of beneficiaries shall be filed with the records of the board. Nominations of beneficiaries heretofore made by members of the retirement system of 1948 who transfer to this retirement system of 1962 shall remain in effect until revoked. [§ 18 of Ord. dated April 10, 1962.]

2.56.470 Death benefits.

Upon the death of a member before retirement, in addition to such benefits as may be paid by the federal system, there shall be paid to his designated beneficiary or beneficiaries, or if there are none and the member leaves no property other than as specified in Section 630 of the Probate Code of the state, then upon furnishing the board with an affidavit as in said section provided, there shall be paid to the person or persons entitled to collect under said section of the Probate Code, and the receipt by such person or persons shall constitute sufficient acquittance therefor and shall fully discharge the board and the retirement system from any further liability with reference thereto without the necessity of inquiring into the truth of any of the facts stated in the affidavit, otherwise to his estate:

A. His accumulated contributions;

B. If death occurs while in the service of the city, or within one month after separation from service, or while physically or mentally incapacitated for the performance of duty, provided his accumulated contributions have not been paid, a lump sum benefit equal to one month’s compensation earnable for each completed year of credited service not to exceed six years. [§ 19 of Ord. dated April 10, 1962.]

2.56.480 Optional settlement.

In lieu of the retirement allowance for his life alone, a member or retired member may elect, or revoke or change a previous election prior to the approval of the previous election, to have the actuarial equivalent of his retirement allowance as of the date of retirement applied to a lesser retirement allowance, in accordance with one of the following optional settlements. Such election, revocation or change of election shall be made prior to the making of the first payment on account of any retirement allowance. If the member dies after retirement and within 30 days from the date upon which his election or changed election is received at the office of this system in Pittsburg, his election is of no effect, and his death shall be considered as that of a member before retirement.

A. Option 1. This optional settlement is the right to have a retirement allowance paid him until his death, and if he dies before he receives in annuity payments the amount of his accumulated contributions at retirement, to have the balance at death paid to his beneficiary or estate.

B. Option 2. This optional settlement is the right to have a retirement allowance paid him until his death and thereafter to his beneficiary for life.

C. Option 3. This optional settlement is the right to have a retirement allowance paid him until his death, and thereafter to have one-half of his retirement allowance paid his beneficiary for life.

D. Option 4. This optional settlement, which may be combined with any one of the previous options or which may be selected as the only option, is the right to receive a lump sum payment of all or any portion of his accumulated contributions as he demands in lieu of all or part of the annuity which they would otherwise provide. [§ 20 of Ord. dated April 10, 1962.]

2.56.490 Federal system coverage.

Every member of this retirement system shall also, by virtue of his membership herein, be covered by the federal system; and there shall be deducted from his gross salary such amounts as are required by applicable federal law; and the city shall make such contributions to the federal system, in addition to the deductions from member’s pay, as are required by federal law; and the deductions and contributions shall be paid by the city to the federal system as required. Benefits paid to members, their survivors and beneficiaries by the federal system shall be in addition to the benefits provided herein. [§ 21 of Ord. dated April 10, 1962.]

2.56.500 Social Security option.

A member who retires for service prior to the age he would be entitled to receive benefits from the federal system may elect to have his retirement allowance from the city increased prior to the federal retirement age and decreased after such age by amounts which are actuarially equivalent and based upon his anticipated primary insurance amount. The election of this modification shall not prevent the modification of the life portion of the resulting allowance under Options 2 or 3 as provided in PMC 2.56.480(B) and (C). [§ 22 of Ord. dated April 10, 1962.]

2.56.510 Monthly payments.

A pension, an annuity or a retirement allowance granted under the provisions of this article, unless otherwise specified herein, shall be payable in monthly installments and each installment shall cover the current calendar month. [§ 23 of Ord. dated April 10, 1962.]

2.56.520 Exemption from execution and assignment – Exception.

A. The right of a person to a pension, an annuity or a retirement allowance, to the return of contributions, the pension, annuity or retirement allowance itself, any optional benefit, any other right accrued or accruing to any person under the provisions of this article, and the moneys in the fund created under this article, shall not be subject to execution, garnishment, attachment or any other process whatsoever, and shall be unassignable, except as provided in subsection (B) of this section, and except as elsewhere in this article specifically provided.

B. Any member of the retirement system may execute a special power of attorney appointing the Pittsburg Municipal Employees’ Federal Credit Union special agent to demand, receive and receipt for the return of contributions due the member from the retirement fund. The special power of attorney shall be effective for the sole purpose of paying to the Pittsburg Municipal Employees’ Federal Credit Union the unpaid balance of any loan or loans, plus charges and interest owed by the member to the Pittsburg Municipal Employees’ Federal Credit Union at the time the member, by resignation or discharge, terminates his employment with the city. Where the special power of attorney described herein is made by a married person, the written consent of the member’s spouse must be attached to the special power of attorney. [§ 24 of Ord. dated April 10, 1962.]

2.56.530 Estimate of service, compensation or age.

If it is impracticable for the board to determine from the records or otherwise the length of service, the compensation or the age of any member, the board may estimate, for the purpose of this article, such length of service, compensation or age. [§ 25 of Ord. dated April 10, 1962.]

2.56.540 Service after retirement.

No person who has been retired for service and who received a retirement allowance under the retirement system shall be paid for any service, except as juror or as an election officer, rendered by him to the city after the effective date of his retirement from the system. [§ 26 of Ord. dated April 10, 1962.]

2.56.550 Provision for administration facilities.

The city council shall provide, at general city expense, adequate office space, furniture, fixtures, equipment and the required stationery or printed matter for the purposes of the board, its staff or employees, required and necessary for carrying out and operating the retirement system. [§ 27 of Ord. dated April 10, 1962.]

2.56.560 Continuation of retirement system of 1948.

It is expressly provided that the Pittsburg municipal employees’ retirement system, adopted April 13, 1948, is continued in effect so long as any active employees choose to remain therein. At such time as no active employees remain as members of the system, the board of administration of the retirement system of 1948 shall transfer all assets and liabilities of the system to the retirement system of 1962, created by this article. [§ 28 of Ord. dated April 10, 1962.]

2.56.570 Amendments.

A. There is reserved to the electorate of the city the right to make any amendment to this article which would have the effect, either directly or indirectly, of increasing the financial obligation of the city hereunder per dollar of employee payroll.

B. Any other amendments to this article may be made by the city council. [§ 29 of Ord. dated April 10, 1962.]

2.56.580 Cost of living benefits.

In addition to the actuarially determined retirement allowances payable under this chapter, there shall be paid to the retired employees the monthly cost of living benefits prescribed therein, and in addition thereto, the amount of $30.00 per month cost of living benefit. The cost of living benefits shall be subject to the following terms and conditions:

A. The cost of living benefit described in this section shall not be paid as part of any death benefit nor of any other lump sum payment.

B. The board of administration is authorized and directed to pay the cost of living benefit to the persons named in PMC 2.56.590, or to their surviving beneficiaries as specified in subsection (D) of this section. The board shall determine annually the amount required by the retirement fund to pay the cost of living benefit, and shall include such amount in the estimate submitted annually to the city pursuant to PMC 2.56.380(A).

C. Pursuant to Section 45311 of the Government Code of the state, the city council shall levy and collect annually such additional ad valorem property taxes as may be necessary to raise the revenue needed by the city to meet its obligations to the retirement fund created by this section and by PMC 2.56.590.

D. The cost of living benefits listed in PMC 2.56.590 for retired employees shall be reduced or eliminated upon the death of the retired employee, as follows:

1. If a surviving beneficiary receives monthly payments pursuant to an optional settlement, the amount of the retired employee’s cost of living benefit shall be reduced by 50 percent and the reduced amount shall be paid monthly to the beneficiary in addition to the actuarially determined payment due the beneficiary in accordance with the applicable optional settlement.

2. If there is no surviving beneficiary, or if no monthly payments are to be made to the surviving beneficiary pursuant to an optional settlement, the cost of living benefit shall terminate. [Ord. 785 § 4, 1980; Ord. 540 C.S. § 1, 1968; § 32 of Ord. dated April 10, 1962.]

2.56.590 Amount of cost of living benefits.

In addition to the actuarially determined retirement allowance of beneficiaries’ allowance payable under this chapter and in addition to the $30.00 across the board per month cost of living benefit provided in PMC 2.56.580, the following additional cost of living benefits shall be paid each month to the retired employees or the beneficiaries named herein:


Dominic Grillo	$17.51

[Ord. 785 § 4, 1980; Ord. 540 C.S. § 1, 1968; § 33 of Ord. dated April 10, 1962.]

2.56.600 Medical insurance benefit.

In addition to the retirement allowance, the payments to beneficiaries, the cost of living benefit described in PMC 2.56.580 and any other regular monthly payments made to retired employees or beneficiaries pursuant to this article, the board of administration is authorized and directed to reimburse the retired employees and beneficiaries for the cost of medical insurance, or part thereof, as follows:

A. The medical insurance reimbursement shall be paid only to persons receiving regular monthly payments pursuant to this article.

B. The full amount of the premium for the federal medicare supplemental medical insurance coverage shall be reimbursed to the retired employees or beneficiaries:

1. For themselves, if they subscribe to the coverage;

2. For the spouses of retired employees, if the spouses subscribe to the coverage.

C. In addition to the premium for supplemental medical insurance coverage, the sum of $4.00 per month shall be paid to the retired employees or beneficiaries:

1. For themselves, if they subscribe to any group medical program made available by the city to the retired employees or beneficiaries who are eligible for the federal medicare supplemental medical insurance coverage; and

2. For the spouses of retired employees, if the spouses subscribe to the group medical program.

D. The additional benefit described in this section shall not be paid as part of any death benefit nor of any other lump sum payment.

E. The board of administration shall determine annually the amount required by the retirement fund to pay the medical insurance benefits, and shall include such amount in the estimate submitted annually to the city pursuant to PMC 2.56.380(A).

F. Pursuant to Section 45311 of the Government Code of the state, the city council shall levy and collect annually such additional ad valorem property taxes as may be necessary to raise the revenue needed by the city to meet its obligations to the retirement fund pursuant to this section. [Ord. 540 C.S. § 1, 1968; § 34 of Ord. dated April 10, 1962.]

Article II. Public Employees’ Retirement System

2.56.610 Miscellaneous and safety regular employees.

A. Effective the last payroll period in June, 2001, all miscellaneous regular employees will become members of the public employees’ retirement system with the two percent at 55 benefit level, pursuant to the contract executed between the city council of the city of Pittsburg and the board of administration of the public employees’ retirement system, and as amended effective October 14, 2001, and July 8, 2003, and through the meet and confer process. The city of Pittsburg shall cease contributions for miscellaneous employees to any and all prior defined benefit retirement plans.

B. Effective the last payroll period in June, 2001, all safety regular employees will become members of the public employees’ retirement system with the three percent at 50 benefit level, pursuant to the contract executed between the city council of the city of Pittsburg and the board of administration of the public employees’ retirement system, and as amended effective October 14, 2001, and through the meet and confer process. The city of Pittsburg shall cease contributions for safety employees to any and all prior defined benefit retirement plans. [Ord. 03-1211 § 3, 2003; Ord. 01-1186 § 3, 2001; Ord. 1181 § 2, 2001; Ord. 1164 § 3, 1999.]

For the statutory provisions regarding pension and retirement systems, see Government Code § 45341 et seq.; for the provisions authorizing a contract with the State Employees’ Retirement System as an alternate method of providing for city employees’ retirement, see Government Code § 45345.