ARTICLE II. RETIREMENT SYSTEM
24-14 Definitions.
Unless a different meaning is plainly required by the context, the following words and phrases as used in this article shall have the following meanings:
Accumulated contributions shall mean the sum of all the amounts deducted from the compensation of a member and credited to his or her individual account in the system, plus interest accruing thereon at a rate of five and one-half (5 1/2) percent per annum up through December 31, 2017, and beginning January 1, 2018, at a rate of two (2) percent per annum, or such higher rate as may be set by the retirement board; provided, however, that such interest will accrue only on those contributions made after June 30, 1980.
Actuarial equivalent shall mean a benefit of equal value computed upon the basis of an eight (8) percent interest assumption and such mortality and service tables as the retirement board shall adopt.
Average final compensation shall mean the average annual earned compensation of a member during the five (5) nonoverlapping twelve (12) month periods prior to the member’s actual retirement which will afford him or her the highest such average, or, if he or she has less than sixty (60) months of creditable service, his or her average final compensation shall be his or her average annual earned compensation during his or her total creditable service. Notwithstanding the above definition, for any member hired prior to January 1, 2018, "average final compensation" shall mean the average annual earned compensation during the three (3) nonoverlapping twelve (12) month periods prior to the member’s actual retirement which will afford him or her the highest such average, except for the following Class A employees: sergeants, lieutenants, deputy chiefs, and chief of the Burlington police department (to whom the five (5) year period already applies).
Beneficiary shall mean any person in receipt of a retirement benefit, death benefit or other benefit provided by this article.
Creditable service shall mean the years and months of membership service plus prior service.
Earned compensation shall mean the full rate of normal compensation paid to an employee for working the full normal time for his position. Normal compensation shall not include extra payments for working on holidays, overtime work, shift differentials, longevity pay, payments for unused disability leave or bonuses. In cases where normal compensation includes shelter and/or board, the retirement board shall determine the value of that part of the normal compensation not paid in money. In no case shall there be a benefit accrual on earned compensation amounts in any year that exceed the compensation limit in effect under Section 401(a)(17) of the Internal Revenue Code of 1986, as amended.
Employee shall mean any regular and permanent officer or employee of the city, including appointive officers, but excluding elective officers other than the mayor, who is regularly employed on a basis of not less than one thousand two hundred (1,200) hours in a twelve (12) month period, including teachers in the school department who were in city employment as teachers in said department as of July 1, 1947, and who become members of the State Teachers’ Retirement System of Vermont, but excluding all other teachers. In all cases of doubt, the retirement board shall determine whether any person is an employee as herein defined.
Mandatory retirement age shall mean age sixty (60) for Class A members.
Member shall mean any employee included in the membership of the retirement system, as provided in Sections 24-19 and 24-20. For the purposes of the death, survivor income and disability retirement benefits provided to members of the retirement system, "member" shall include otherwise eligible employees who have not acquired permanent employee status.
Membership service shall mean service rendered while a member of the retirement system for which credit is allowable under Section 24-21 as well as that period during which a disability beneficiary is totally and permanently disabled under Section 24-23. A period of total and permanent disability prior to July 1, 1983, shall be considered membership service if the retiree again becomes a member.
Month shall mean not less than fifteen (15) days and shall be considered one-twelfth (1/12th) of a year.
Normal retirement age shall mean age fifty-five (55) for Class A members and age sixty-five (65) for Class B members.
Prior service shall mean service rendered prior to July 1, 1954, for which credit is allowable under Section 24-21.
Regular interest shall mean compound interest at such rate as may be set from time to time by the retirement board in accordance with Section 24-60.
Retirement board shall mean the board provided for in Section 24-27 et seq. to administer the retirement system.
Service shall mean service as an employee for which compensation is paid by the city, including the period covered by paid disability leave as well as the period covered by a payment for accumulated vacation leave but not including a period covered by a payment for unused disability leave. Commencing July 1, 1996, Class A service shall be adjusted such that any Class A employee who retires on or after July 1, 1996, shall be granted 1.07 years of credit for each year in which the employee worked prior to July 1, 1996, in a position regularly assigned a workweek consisting on average of fifty-three (53) or more hours of work per week. A Class A employee shall be granted 1.17 years of credit for each year in which the employee worked after July 1, 1996, in a position regularly assigned a workweek consisting on average of fifty-three (53) or more hours of work per week. This adjusted service shall be used for benefit calculation only and shall not affect the actual creditable service for purposes of establishing eligibility for retirement or for any other purpose.
Year shall mean a twelve (12) month period.
(Rev. Ords. 1962, § 321; 1969 Cum. Supp., § 321; Ord. of 8-14-79; Ord. of 12-15-80; Ord. of 10-29-84; Ord. of 2-13-89; Ord. of 5-24-93; Ord. of 6-10-96; Ord. of 3-23-98; Ord. of 8-14-00; Ord. of 6-4-07; Ord. of 1-24-11; Ord. of 1-22-18(1))
24-15 Title of system.
The retirement system created by this article shall be known as the "Burlington Employees’ Retirement System" and by such name all of its business shall be transacted, its funds invested and its assets held in trust for the purposes for which received.
(Rev. Ords. 1962, § 322)
24-16 Date of establishment.
The date of establishment of the retirement system shall be July 1, 1954.
(Rev. Ords. 1962, § 322)
24-17 Classes of members.
The membership of the system shall be divided into classes as follows:
(a) Class A. Any member who is a member of the police or fire department, not including secretarial, clerical or other employees not having the status of members.
(b) Class B. All other members as defined in Section 24-14
(Rev. Ords. 1962, § 323; Ord. of 12-5-05/2-1-06)
24-18 Reserved.
Editor’s note—Section 24-18, pertaining to required physical examination derived from Rev. Ords. 1962, § 324, and the 1969 Cum. Supp., § 324, was repealed by an ordinance of Sept. 8, 1975.
24-19 When membership required.
Except for those individuals who are permitted by the city council to retain membership in a retirement system other than the city retirement system, any employee who enters into service with the city shall within two (2) weeks after being hired submit to the office of the city treasurer a completed application form for membership in the city retirement system. Such employee shall become a member of the retirement system as a condition of employment. Upon acquisition of permanent employee status, membership in the retirement system shall be considered as attained retroactive to the date the individual commenced work for the city as an employee; provided, however, that a Class A employee must, in addition, be approved by the medical examiners as medically qualified for Class A type of employment, and Class A employees and Class B employees must submit sufficient proof of birth in order to obtain membership in the retirement system. The provisions of this section shall not be applicable to persons hired pursuant to funding provided under the so-called Emergency Employment Act, Comprehensive Employment and Training Act, Law Enforcement Assistance Act or other federal or state-financed employment program. The city council, in connection with the recruitment of any particular employee, may, in its sole discretion, waive the requirement for membership in the city retirement system and allow such employee to retain membership in an alternate retirement system under such conditions as may be agreed upon between the city and such employee.
(Rev. Ords. 1962, § 324; 1969 Cum. Supp., § 324; Ord. of 9-8-76; Ord. of 8-14-79; Ord. of 10-29-84; Ord. of 10-27-86; Ord. of 2-13-89; Ord. of 1-24-11)
24-20 Termination of membership; exception for military service.
Should any member’s service with the city be terminated for any reason, including resignation, disability or other retirement, discharge or death, he shall thereupon cease to be a member. However, the membership of any employee entering such classes of military, naval or air service of the United States as may be approved by resolution of the retirement board shall be continued during such service if he does not withdraw his contributions, but no such member shall be considered in the service of the city for the purpose of the retirement system during such military, naval or air service, except as provided in the following section.
(Rev. Ords. 1962, § 325; 1969 Cum. Supp., § 325; Ord. of 10-29-84)
24-21 Statement of service, military service; treatment of break in service.
(a) All service of a member since he last became a member shall be credited as membership service along with that service prior to a break in service which is allowed under subsections (h) through (l) hereof.
(b) Under such rules and regulations as the retirement board shall adopt, each employee in service on the date of establishment who becomes a member on or before June 30, 1955, shall file a detailed statement of all service for which the claims credit rendered by him as an employee prior to July 1, 1954.
(c) The retirement board shall fix and determine by appropriate rules and regulations how much service in any one (1) year is equivalent to one (1) year of service, but in no case shall it allow credit for a period of absence without pay of more than a month’s duration, except as provided in subsection (g) herein and a member’s period of total and permanent disability as recognized by the retirement board, nor shall more than one (1) year of service be creditable for all service in one (1) year. Service rendered for the full normal working time in any year shall be equivalent to one (1) year’s service, but in no case shall less than one thousand two hundred (1,200) hours in a twelve-month period be regarded as full normal working time.
(d) Subject to the above restrictions and to such other rules and regulations as the retirement board may adopt, the board shall verify, as soon as practicable after the filing of such statements of service, the service therein claimed, and issue to each member a prior service certificate certifying the length of service rendered prior to July 1, 1954, with which he is credited on the basis of his statement of service. Such certificate shall be final and conclusive as long as membership continues, but any member may, within one (1) year of the date of its issuance or modification, request the retirement board to modify or correct his prior service certificate.
(e) When membership ceases, a prior service certificate shall remain valid should the employee again become a member.
(f) Creditable service at retirement shall consist of membership service plus, if the member has a prior service certificate in full force and effect, the period of service certified thereon.
(g) Anything in this article to the contrary notwithstanding, credit for any period of absence from service due to any class of full-time military, naval or air service approved by the retirement board, whether before or after July 1, 1954, shall be allowed as prior service credit and a prior service certificate issued therefor in the case of any employee who left the service of the city to enter such full-time military, naval or air service, and, for the purposes of the retirement system, the earnable compensation of the employee at the time of entering such service shall be the earnable compensation for the period thereof. However, this subsection shall not apply to any employee not returning to the active service of the city within one hundred twenty (120) days of his discharge from such full-time military, naval or air service. Notwithstanding any provision of this article to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with section 414(u) of the Internal Revenue Code of 1986, as amended, and, effective January 1, 2007, section 401(a)(37) of the Internal Revenue Code of 1986, as amended.
(h) (1) Return to service. Except as provided in subsection (h)(3) of this section, all former Class A and Class B members who did not withdraw their accumulated contributions to the retirement system and who have returned to Class A or Class B service respectively after the effective date of this amendment to the ordinance and again become members of the retirement system shall be entitled upon subsequent retirement from service, if eligible therefor, to separate retirement benefits attributable to each period of creditable service, as per plan provisions and rules in effect at the time of leaving service. Notwithstanding the above provision, all years of service shall be combined for purposes of vesting and the average final compensation.
(2) Transitional provision. All members of Class A and Class B who did not withdraw their accumulated contributions to the retirement system and who returned to Class A or Class B service respectively between January 1, 2006, and the effective date of this amendment to the ordinance and again became members of the retirement system shall be entitled upon subsequent retirement from service, if eligible therefor, to either the benefit option set forth in subsection (h)(1) of this section or a single benefit calculated by multiplying the combined years of creditable service by the average final compensation by the accrual rate and other plan provisions and rules in effect at the time of leaving service, such option to be chosen by the member.
(3) Return to service within one (1) year. Any vested member who leaves and then returns to the same class of employment with the city within one (1) year from the date of leaving shall be entitled to continue the employee’s prior retirement benefit, in lieu of two (2) separate retirement benefits, under the following conditions:
a. The employee was fully vested before leaving employment and has not withdrawn any accumulated contributions;
b. The employee was in good standing with the city at the time of separation;
c. The pension plan in which the individual was originally vested still exists;
d. The period of separation is not counted as creditable service, and neither the employee nor the city shall be required to make any contribution to the system for the period of separation;
e. In no instance may an employee leave, return, and receive a higher pension than the employee would have had if there had been no break in service.
(i) A former Class B member who, with or without a break in service, becomes a Class A member upon subsequent retirement shall be entitled to two (2) separate retirement benefits attributable to the individual’s lengths of Class B and Class A service respectively. Each separate retirement benefit shall be calculated according to its applicable average final compensation.
(j) A former Class A member who did not withdraw his accumulated contributions to the retirement system upon separation from Class A service and who, with or without a break in service, becomes a Class B member shall, upon subsequent retirement from service, be entitled to two (2) separate retirement benefits attributable to the individual’s lengths of Class A and Class B service respectively. Each separate retirement benefit shall be calculated according to its applicable average final compensation.
(k) For a member with both Class A and Class B creditable service, there shall be no requirement that the member earned vested retirement benefits under section 24-26 during either of his two (2) classes of service; provided, that his total creditable service is sufficient to give him vested retirement benefits. By way of illustration, a member with four (4) years of creditable service equally divided between Class A and Class B service shall be eligible for vested retirement benefits under Section 24-26 with the applicable vested percentage determined by the total creditable service applied to the retirement benefit for Class A service as well as the retirement benefit for Class B service.
(l) A former Class A member who withdrew his accumulated contributions to the retirement system and who again becomes a Class A member may, within the time period prescribed by the retirement board, repay his Class A accumulated contributions which he withdrew from the retirement system as well as such additional amount as prescribed by the retirement board and having as a basis either the compounded amounts that the retirement system would have earned on such accumulated contributions had they not been withdrawn, or the total annual actuarial assumptions for the period such accumulated contributions had been withdrawn, whichever is higher. The amount to be repaid will be increased by an interest amount for the period of repayment as established by the retirement board. Upon such repayment, the member shall be entitled to apply his creditable service earned as a Class A employee prior to his separation from city service along with that earned subsequent to his return to Class A service for the determination of a single Class A retirement benefit. A former Class A member who withdrew his accumulated contributions to the retirement system and who again becomes a Class A member but does not repay his withdrawn accumulated contributions shall have his prior Class A service for which his accumulated contributions have been withdrawn treated as Class B service. A former Class A member who withdrew his accumulated contributions to the retirement system and who becomes a Class B member shall not be entitled to repay his withdrawn Class A accumulated contributions in order to have his Class A service treated as other than Class B service upon his subsequent retirement. A former member may withdraw his accumulated contributions and the retirement board shall establish procedures governing the distribution of these accumulated contributions, including the terms and conditions under which such amounts may be rolled over to another retirement plan.
(Rev. Ords. 1962, § 326; Ord. of 10-29-84; Ord. of 3-18-85; Ord. of 2-13-89; Ord. of 3-23-98; Ord. of 1-24-11; Ord. of 7-11-11(1); Ord. of 1-22-18(1))
24-22 Retirement; benefits.
(a) Any member may retire on a service retirement benefit upon written application to the retirement board setting forth at what time, not less than thirty (30) days subsequent to the filing thereof nor more than ninety (90) days or longer for cause shown, after the date he may have separated from service, he desires to be retired; provided, that such member at the time so specified for his retirement shall then have creditable service of at least five (5) years and shall have attained age forty-two (42) in the case of Class A members, or age fifty-five (55) in the case of Class B members. Notwithstanding, any member so retiring who has accumulated vacation time shall have the retirement benefit payment commence upon the end of such accumulated vacation time but, in no event, later than the date set forth in subsection (b) of this section.
(b) Any Class A employee in service who attains age sixty (60) shall be retired forthwith on a service retirement benefit; provided, that any official appointed for a definite term may remain in service until the end of the term.
(c) Upon service retirement after July 1, 1996, a member shall receive during his lifetime an annual service retirement benefit which shall be:
(1) For a Class A member, equal to two and seventy-five hundredths (2.75) percent of his average final compensation multiplied by his years of creditable service not in excess of twenty-five (25) years. Upon service retirement between January 1, 1992, and July 1, 1996, a member shall receive an annual service retirement benefit of two (2) percent of his average final compensation for years of service prior to January 1, 1992, and two and thirty-five-hundredths (2.35), percent of his average final compensation for years between January 1, 1992, and July 1, 1996, multiplied by his years of creditable service not in excess of twenty-five (25) years. There will be an additional five-tenths (0.5) percent of average final compensation for each additional year beyond twenty-five (25) years for up to an additional ten (10) years of creditable service.
(2) For a Class B member retiring at age sixty-five (65) or thereafter, one and six-tenths (1.6) percent of his average final compensation multiplied by his years of creditable service at age sixty-five (65) not in excess of twenty-five (25) years, plus five-tenths (0.5) percent of such average final compensation multiplied by the number of years of his creditable service at age sixty-five (65) in excess of twenty-five (25) years. The annual service retirement benefit payable to a Class B member in service as of July 1, 1983, retiring prior to age sixty-five (65), with such benefit commencing after having attained age sixty-two (62), shall be computed on the basis of his average final compensation at retirement and his years of creditable service reduced by five-eighteenths of one percent (5/18 of 1%) for each month between his age at retirement and age sixty-five (65). The annual service retirement benefit payable to a Class B member not in service on July 1, 1983, retiring prior to the attainment of age sixty-five (65), as well as the annual service retirement benefit payable to a Class B member in service on July 1, 1983, who retires prior to attaining the age of sixty-two (62), shall be computed on the basis of his average final compensation at retirement reduced actuarially according to actuarial tables adopted by the retirement board, as set forth in section 24-14, the benefit determined by the length of time between the date of retirement and the attained age of sixty-five (65). A Class A member who retires prior to the attained age of fifty-five (55) shall have his annual service retirement benefit computed on the basis of his average final compensation at retirement reduced actuarially according to actuarial tables adopted by the retirement board, as set forth in section 24-14, the benefit determined by the period of time which his retirement precedes the earlier of his completion of twenty-five (25) years of creditable service or his attainment of age fifty-five (55). However, for Class A members, the early retirement reduction where service is twenty (20) to twenty-five (25) years shall be as follows:
|
24 years |
1.82% |
|
23 years |
3.64% |
|
22 years |
5.46% |
|
21 years |
7.28% |
|
20 years |
9.09% |
Notwithstanding the provisions of section 24-22(c)(2), a Class B nonunion, City AFSCME and Burlington School District Paraeducator (BSDP) member in service since July 1, 2000; a Burlington School District (BSD) AFSCME member in service on August 1, 2001; or an IBEW member in service on July 1, 2001, retiring prior to age sixty-five (65) shall have his benefit computed on the basis of his average final compensation at retirement and his years of creditable service, reduced by two (2) percent for each year between his age at retirement and age sixty-five (65).
(d) Anything in this article to the contrary notwithstanding, a Class A member with at least twenty-five (25) years of Class A creditable service shall be entitled to take a normal retirement without regard to his age at the date of retirement.
(e) Cost of living adjustments and accrual rates:
(1) In lieu of the accrual rate of 2.76% provided in subsection (c), at the time of retirement, a Class A member may choose either an accrual rate of 3.25% for the first twenty-five (25) years of service and a cost of living adjustment equal to one-half that provided for in section 24-40, or an accrual rate of 3.80% for the first twenty-five (25) years of service and no cost of living adjustment.
(2) In lieu of the accrual rate of 1.6% provided in subsection (c), at the time of retirement, a Class B member may choose either an accrual rate of 1.9% for the first twenty-five (25) years of service and a cost of living adjustment equal to one-half that provided for in section 24-40, or an accrual rate of 2.20% for the first twenty-five (25) years of service and no cost of living adjustment.
(f) Notwithstanding the provisions of section 24-21, a former Class A member in receipt of a retirement benefit who returns to Class B service shall continue to receive his Class A retirement benefit but for Class B membership purposes, his years of Class A service may not be used for the purpose of his meeting the age requirements of section 24-19 and the vesting period minimum of section 24-26
(g) Notwithstanding the provisions of sections 24-19 and 24-21, a former Class A member in receipt of a retirement benefit pursuant to subsection (d) hereof, who returns to Class A service, shall continue to receive his Class A retirement benefit pursuant to subsection (d) and may earn a separate additional Class A retirement benefit, but only if at the time of commencing his most recent Class A service he was three (3) or more years from his mandatory retirement age.
(h) In determining a member’s retirement benefit under this section, the member’s years and months of service shall be considered.
(i) The annual service retirement benefit payable to a Class B member retiring after having attained age sixty-five (65) shall be computed on the basis of his average final compensation at retirement increased by considering creditable service beyond age sixty-five (65), or increased actuarially according to actuarial tables adopted by the retirement board, as set forth in section 24-14, the amount of increase determined by the length of time between the commencement of the receipt of the benefit and the attainment of age sixty-five (65), whichever results in the larger benefit. A former Class B member who defers receipt of his service retirement benefit beyond his normal retirement age shall have his benefit increased actuarially according to actuarial tables adopted by the retirement board, the amount of increase determined by the length of time between the commencement of the receipt of the benefit and the attainment of age sixty-five (65).
(j) Plan benefits shall be distributed to an employee no later than April 1 of the calendar year following the calendar year in which he or she attains age seventy and one-half (70 1/2), or in which he or she retires, whichever occurs later. Notwithstanding any provision of this article to the contrary, the retirement system will comply with a good faith interpretation of section 401(a)(9) of the Internal Revenue Code of 1986, as amended.
(k) Plan benefits and contributions shall not exceed the limitations established in section 415 of the Internal Revenue Code of 1986, as amended.
(Rev. Ords. 1962, § 327; 1969 Cum. Supp. § 327; Ord. of 8-28-73; Ord. of 8-14-79; Ord. of 10-29-84; Ord. of 2-13-89; Ord. of 7-20-92; Ord. of 5-24-93; Ord. of 5-20-96; Ord. of 3-9-98; Ord. of 8-14-00, Ord. of 9-11-00; Ord. of 1-8-01; Ord. of 10-15-01; Ord. of 12-3-01; Ord. of 1-24-11; Ord. of 1-22-18(1))
24-23 Disability retirement; benefits.
(a) Except as limited by subsection (b), a member who has not yet attained the normal retirement age for his class, has been examined by the board of medical examiners and has been determined to be suffering from a total and permanent disability may be retired by the retirement board on a disability retirement benefit. Such disability retirement benefit may commence no sooner than ninety (90) days from the date of the total and permanent disability. The disability retirement benefit shall equal seventy-five (75) percent of the member’s earned compensation at the time of the disability retirement. Such amount shall be reduced by any periodic workers’ compensation benefit payments, any other city disability leave payments and, in the case of a Class B member, any primary social security benefit payments to the member. However, subsequent social security benefit increases shall not further reduce the disability retirement benefit. Lump sum, or otherwise paid, workers’ compensation settlements designed to compensate the member for loss of use of a bodily part or function shall not affect the disability retirement benefit. As long as the disability beneficiary has a total and permanent disability as defined in subsections (b) and (c) hereof, the disability retirement benefit shall continue without adjustments pursuant to section 24-40 until he has attained his normal retirement age. Upon attainment of the normal retirement age, the disability beneficiary’s retirement benefit shall change to a normal retirement benefit for his class as determined by his years of creditable service at the time of his disability retirement as well as that period he was on disability retirement with a total and permanent disability prior to attainment of his normal retirement age, applied to his average final compensation as of the time of the commencement of his disability retirement.
(b) The existence of a total and permanent disability shall, except as hereafter qualified, not be dependent on whether the disability is work-related or nonwork-related. At the time of initial determination of whether a total and permanent disability exists and upon such finding during the first two (2) years of such total and permanent disability, the standard to be applied to determine the existence and/or continued existence of a total and permanent disability shall be whether the individual is able for the foreseeable future to perform the employment duties he was assigned at the time he became so disabled. A Class B member seeking a disability retirement who has not been medically approved for present employment by the medical board shall not be eligible for disability retirement for a nonwork-related condition caused by or relating to physical and/or mental conditions preexisting his most recent employment by the city.
(c) After the first two (2) years of disability retirement, the retirement board’s determination as to whether a disability beneficiary is totally and permanently disabled will be made based upon the following:
(1) If the disability beneficiary is in receipt of a social security disability benefit, he will be considered to continue to be totally and permanently disabled;
(2) For a disability beneficiary not in receipt of a social security disability benefit, in addition to the retirement board’s rights under subsection (d) hereof, the retirement board may require the disability beneficiary to provide a written statement from his attending physician concerning the then-current condition of the disability beneficiary as well as a prognosis of the individual’s disability and ability to work. If the retirement board is not satisfied with the disability beneficiary’s physician’s report, the beneficiary may be required to submit a second report from a different physician;
(3) Based upon the evidence submitted by the disability beneficiary, his physician(s) as well as any report requested by the retirement board and submitted by the board of medical examiners and/or other professional personnel, the retirement board shall determine whether the disability beneficiary remains totally and permanently disabled. The standard to be applied to determine whether the total and permanent disability continues to exist shall be whether the member by reason of education, training and background has, would have or would be able to acquire, a reasonable and marketable skill which is or could be consistent with his health and which skill could or potentially could provide in his general residential area income which would be reasonable in respect to his earnings history at the time of his disability retirement. If the retirement board finds the disability beneficiary continues to be totally and permanently disabled, such beneficiary shall continue to receive his disability retirement benefits as determined by the provisions of subsections (a) and (e) hereof.
(d) Once each year during the first seven (7) years following the retirement of a member on a disability retirement benefit, and once in each three-year period thereafter, the retirement board may and upon his application shall require any disability beneficiary who has not attained the normal retirement age for members of his class to undergo a medical examination by the board of medical examiners at the place of residence of such beneficiary or some other place mutually agreed upon. Should any disability beneficiary who has not attained such retirement age refuse to submit to such medical examination or otherwise refuse to provide requested information necessary for the retirement board to make its decisions under this section, his benefit may be discontinued until his withdrawal of such refusal, and should his refusal continue for one (1) year, all his rights in and to his disability retirement benefit may be revoked by the retirement board.
(e) Should the retirement board find that any disability beneficiary after two (2) years of total and permanent disability is engaged in, or is able to engage in, a gainful occupation paying more than the difference between his seventy-five (75) per cent disability retirement benefit and his earned compensation at the time of his disability retirement, his benefit as calculated pursuant to subsection (a) shall then be reduced to an amount which, together with the amount earnable by him, shall equal his earned compensation at disability retirement. Should his earning capacity be later changed, his retirement benefit may be further modified; provided, that the new benefit shall not exceed the amount of the benefit originally granted nor an amount which, added to the amount earnable by him, equals his earned compensation at disability retirement. Anything to the contrary notwithstanding, however, any such beneficiary may elect to receive the balance of his accumulated contributions, if any, at disability retirement less any disability retirement benefits theretofore received in lieu of such reduced benefit and such election and payment of the balance shall be a complete discharge of the liability for any further payments hereunder. During the first two (2) years of a total and permanent disability, the provisions of this subsection shall be fully applicable except any reduction of benefit shall be calculated by amounts actually earned rather than earnable by the beneficiary.
(f) In the event that the retirement board finds that a disability beneficiary is able to perform the occupational duties assigned to him at the date of his disability retirement, and the same position or a job paying a relatively equal salary is reasonably available to the beneficiary, then such beneficiary’s retirement benefit shall be discontinued.
(g) If the retirement board finds that a disability beneficiary is unable to perform the occupational duties assigned to him at the date of his disability retirement, but that such individual is not totally and permanently disabled, the following procedure shall apply:
(1) The individual shall provide the city personnel director or other individual or organization as required by the retirement board with all requested information to assist a determination as to the vocational area in which the individual would have the greatest potential to obtain a marketable skill which would provide a reasonable monetary return in comparison to his relative earnings capacity prior to his disability retirement;
(2) The retirement system will provide a benefit for a retaining/rehabilitation period of five (5) years, inclusive of any workers’ compensation periodic payments, of seventy-five (75) per cent of his earned compensation at the time of his disability retirement. To the extent that the total earned or earnable income of the individual, when added to his total seventy-five (75) per cent disability retirement benefit, exceeds the earned compensation of the individual at the time of his disability retirement, then the benefit provided by the retirement system shall be reduced to an amount which together with the amount earned or earnable by him shall be equal to his earned compensation at the time of his disability retirement;
(3) No portion of the five-year retaining/rehabilitation period shall be treated as creditable service except for any of such period during which a member has been in service with the city.
(h) At the conclusion of the five-year retraining/rehabilitation period, a disability beneficiary’s disability retirement benefits shall cease. However, the retirement board may extend the beneficiary’s retraining/rehabilitation period if, at the end of the initial five-year period, the beneficiary is not able to earn compensation comparable to his earned compensation at the date of his disability retirement.
(i) Notwithstanding Section 24-20, during the period that a disability beneficiary is totally and permanently disabled, he shall be considered a member for the purposes of entitlement to the benefits of Section 24-41
(j) The retirement board shall have the final say as to all decisions required to be made pursuant to the provisions of this section.
(k) A Class B disability retirement beneficiary, retiring after July 1, 1983, shall be required to submit proof that he has applied for Social Security disability benefits within the first six (6) months following the effective date of retirement, or the date of passage of this subsection, whichever is later. Should any disability beneficiary refuse to submit proof that he has applied for Social Security disability benefits, his disability benefit under this section may be discontinued until his withdrawal of such refusal, and should his refusal continue for one (1) year after the effective date of his retirement, or the date of passage of this subsection, whichever is later, all his rights in and to his disability retirement benefit may be revoked by the retirement board. A denial by Social Security of disability benefits shall not constitute a reason in and of itself for adjustments to the disability retirement benefits provided for by this section.
(Rev. Ords. 1962, § 328; 1969 Cum. Supp., § 328; Ord. of 8-14-79; Ord. of 10-29-84; Ord. of 2-13-89)
24-24 Reinstatement of disabled employees.
Should a disability beneficiary be restored to service, he shall again become a member of the system, and shall thereafter, if a Class A member, contribute as though not previously retired. At retirement, the former disability beneficiary shall be credited with his creditable service at the time of his disability retirement. In addition, the period of his total and permanent disability shall be considered as membership service and he shall be credited with his membership service since his return to service after his disability retirement.
(Rev. Ords. 1962, § 329; Ord. of 10-29-84)
24-25 Accidental death benefits.
Should the death of a Class A member occur as the natural and proximate result of an accident occurring at a definite time and place while such member was engaged in the performance of his duty as an employee, the following accidental death benefits shall be payable:
(1) To the surviving spouse, until death or remarriage, an annual accidental death benefit equal to fifty (50) per cent of the average final compensation of the member.
(2) In the event that no spouse survives, or in the event of death or remarriage of the surviving spouse, an annual accidental death benefit equal to fifty (50) per cent of the average final compensation of the member to the child or children of such member under twenty-one (21) years of age until the youngest child shall have attained the age of twenty-one (21); provided, however that no benefits payable hereunder shall exceed in the aggregate fifty (50) per cent of such average final compensation, and no benefits hereunder shall be payable with respect to any child who shall have attained the age of twenty-one (21), or who shall have died.
(3) In the event no spouse or child survives such member, his death, for the purpose of the retirement system, shall be considered as not resulting from accidental causes.
(Rev. Ords. 1962, § 330; 1969 Cum. Supp., § 330; Ord. of 10-29-84)
24-26 Vested retirement benefits; payment of benefits at death.
(a) Effective retroactively to July 1, 2017, should a member cease to be a member, except by reason of death or retirement, prior to completion of five (5) years of creditable service, the member shall be paid the amount of the member’s accumulated contributions to the system. If, however, at the time of ceasing to be a member, the member has completed five (5) years of creditable service, the member may elect to have the member’s accumulated contributions remain on deposit with the system and, upon attainment of normal retirement age, the member shall receive during the member’s lifetime an annual vested retirement benefit computed as a service retirement benefit pursuant to Section 24-22(c) multiplied by a percentage based on the member’s years and months of creditable service at termination. Further, if a member ceased to be a member, except by reason of death or retirement, prior to July 1, 2017, and at the time was partially vested in the retirement system because the member had completed at least three (3) years but not quite seven (7) years of creditable service, and the member elected at the time of termination to have the member’s accumulated contributions remain on deposit with the system, upon attainment of normal retirement age, the member shall receive during the member’s lifetime an annual vested retirement benefit computed as a service retirement benefit pursuant to Section 24-22(c) multiplied by a percentage based on the member’s years and months of creditable service at termination in accordance with the following schedule:
|
Years of Creditable Service Completed |
Percentage |
|---|---|
|
3 |
20 |
|
4 |
40 |
|
5 |
60 |
|
6 |
80 |
|
7 or more |
100 |
|
One (1) month shall equal 1.666 percent. |
|
(b) A Class A member having attained age forty-two (42) or a Class B member having attained age fifty-five (55) entitled to an annual vested retirement benefit under subsection (a) may, prior to his normal retirement age, elect to receive an immediate retirement benefit which shall be equal to his early service retirement benefit as determined by the relevant provisions of section 24-22(c) multiplied by percentage based on the member’s years and months of creditable service at termination in accordance with the schedule set forth in subsection (a) hereof.
(c) Upon a member’s death, other than accidental death as defined in section 24-25, the amount of his accumulated contributions in excess of the aggregate amount of survivor income benefits paid under section 24-41, if any, shall he paid to such person as he may have designated in writing with the retirement board, otherwise to his estate. Upon the death of a beneficiary who was formerly a Class B member, the excess of his accumulated contributions at the time of his retirement over the sum of the retirement benefit payments actually made to him during his lifetime shall be paid to such person as he may have designated in writing with the retirement board, otherwise to his estate.
(d) Upon the death of a member who has left service with vested benefits, who dies prior to having begun to receive his vested benefits, his surviving spouse shall be eligible for a benefit calculated pursuant to section 24-22(c) and this section, calculated as if the vested member had elected to commence receiving his benefit on his date of death and elected Option 3, the fifty (50) percent joint and survivor option. If at the time of the death of the vested member, he was not old enough to begin receiving his vested benefit, the surviving spouse shall not be eligible to receive the joint and survivor benefit until the decedent would have attained his early retirement age. The surviving spouse may choose to defer the joint and survivor benefit just as a vested member may defer his benefit later than the time of his earliest retirement age, thereby avoiding some or all of the early retirement benefit reduction.
(e) Plan benefits will be vested in the event of complete discontinuance of contributions or upon termination of the plan.
(Rev. Ords. 1962, § 331; 1969 Cum. Supp., § 331; Ord. of 8-28-73; Ord. of 8-14-79; Ord. of 10-29-84; Ord. of 2-13-89; Ord. of 5-24-93; Ord. of 8-14-00, Ord. of 9-11-00; Ord. of 1-8-01; Ord. of 1-22-18(1))
24-27 Normal and optional benefits.
(a) A member’s normal retirement benefit as determined by section 24-22 or section 24-26 shall be paid upon retirement to a member until the member’s death. However, if a retired Class A member dies prior to his having received sixty (60) monthly retirement benefit payments, the difference between the number of monthly benefit payments received prior to death and sixty (60) shall be paid monthly to such person as he may have designated in writing with the retirement board, otherwise to his estate. If a retired Class B member dies prior to his having received one hundred twenty (120) monthly retirement benefit payments, the difference between the number of monthly benefit payments received prior to death and one hundred twenty (120) monthly retirement benefit payments shall be paid monthly to such person as he may have designated in writing with the retirement board, otherwise to his estate.
(b) Until the first payment on account of a retirement benefit has been received and accepted by a retiring member, any Class A member may elect to convert the retirement benefit otherwise payable on his account after retirement into a retirement benefit of equivalent actuarial value of one of the optional forms named below, and any Class B member may so elect with respect to Options 2, 3 and 4. However, any such election of an optional benefit shall not be effective until sixty (60) days after the date of its filing with the retirement board, or until sixty (60) days after retirement, whichever is later, and should the member die before the election becomes effective, the benefits payable on his account shall be the same as though his election had not been filed and he had not been retired.
Option 1. A reduced retirement benefit payable during his life with the provision that at his death a lump sum in the amount equal to the difference between his accumulated contributions at the time of his retirement and the sum of the retirement benefit payments actually made to him during his lifetime shall be paid to such person, if any, as he has nominated by written designation filed with the retirement board, otherwise to his estate;
Option 2. A reduced retirement benefit payable during his life with the provision that it shall continue after his death for the life of the beneficiary nominated by him by written designation filed with the retirement board at the time of retirement should such beneficiary survive him;
Option 3. A reduced retirement benefit payable during his life with the provision that it shall continue after his death at one-half the rate paid to him and be paid for the life of the beneficiary nominated by him by written designation filed with the retirement board at the time of retirement should such beneficiary survive him; or
Option 4. A retirement benefit payable during his life with the provision that it shall not continue after his death.
Option 5. A reduced retirement benefit payable during his life with the provision that it shall continue after his death for the life of the beneficiary nominated by him by written designation filed with the retirement board at the time of retirement and with the provision that should his beneficiary die before him, his benefit will revert to the benefit described in subsection 24-27(a).
Option 6. A reduced retirement benefit payable during his life with the provision that it shall continue after his death at one-half the rate paid to him and be paid for the life of the beneficiary nominated by him by written designation filed with the retirement board at the time of retirement and with the provision that should his beneficiary die before him, his benefit will revert to the benefit described in subsection 24-27(a).
(Rev. Ords. 1962, § 332; 1969 Cum. Supp., § 332; Ord. of 10-29-84; Ord. of 5-18-98)
24-28 Benefits received from worker’s compensation or similar plans may be offset.
(a) Any amounts which may be paid or payable by or on account of the city under the provisions of any workers’ compensation or similar law to or on account of any member or retired member on account of any disability or accidental death shall, in such manner as the retirement board shall determine, be offset against and payable in lieu of any benefits payable under the provisions of this article on account of the same disability, or on account of death, except that no such offset shall be applied against any benefit consisting only of the return of a member’s contributions.
(b) In the case of member teachers in the school department benefits payable under the provisions of this article shall be limited to service retirement benefits payable under the provisions of section 24-22, and there shall be offset against the service retirement benefit any amounts payable to or on account of such member under the provisions of sections 1931 through 1948 of Title 16, Vermont Statutes Annotated, as now or hereafter amended, whether as annuity or pension.
(Rev. Ords. 1962, § 333; Ord. of 10-29-84)
24-29 Method of financing; fund established.
All the assets of the retirement system shall be credited, according to the purpose for which they are held, in a fund, namely, the city retirement system fund. Said fund shall be composed as follows:
(a) The accumulated contributions deducted from the compensation of Class A and Class B members shall be deposited.
The rate of contribution to the retirement system on the part of the Class A and Class B members thereof shall be as specified by the city council by resolution or as set forth in a collective bargaining agreement, whichever is applicable, and such contributions shall be automatically deducted on a pre-tax basis from the compensation of each such member and assumed and paid by the city directly into said retirement system and credited to the individual account in the city retirement system fund of the member from whose compensation the deduction was made; and this deduction shall be treated as a city contribution for federal income tax purposes and will be taxable to the recipient upon their distribution through a retirement benefit or lump sum contribution and the member will not have the option to receive cash in lieu of the deduction; provided, that no contribution shall be required of any Class A or Class B member having thirty-five (35) or more years of Class A or Class B creditable service.
The deductions provided herein shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every Class A and Class B member shall be deemed to consent and agree to the deductions herein provided as a condition of his membership.
The accumulated contributions of a member withdrawn by him, or paid to his estate or to his designated beneficiary upon his death, shall be paid from the city retirement system fund.
(b) The contributions made by the city to the city retirement fund shall be deposited.
The contributions of the city for benefits under the retirement system shall consist of a percentage of the earned compensation of members to be known as the "normal contribution," and an additional dollar amount to be known as the "accrued liability contribution." The contributions shall be fixed on the basis of the liabilities of the system as shown by actuarial valuation.
Immediately after making each valuation during the period over which the accrued liability contribution is payable, the board shall determine the percentage normal contribution rate as a percentage of the earned compensation of members which is the value of the difference between the benefits accrued for service to the valuation date and the benefit based on service to one (1) year after the valuation date, reduced by required Class A and Class B member contributions. The accrued liability contribution, or unfunded past service contribution, is the difference between the total liabilities and the assets.
The total amount payable in city contributions to the fund in each year shall be not less than the rates per cent known as the normal contribution rate of the total compensation earnable by all members, plus the annual accrued liability contribution amount required to fund the remaining accrued liability over a twenty-year period from date of establishment, and provided that the aggregate payment by the city shall be sufficient, when combined with the amount in the fund of city contributions, to provide the benefits payable out of the fund during the year then current.
All interest and dividends earned on the funds of the retirement system shall be credited to the city retirement system fund.
Any forfeiture of plan benefits shall be used to reduce the city’s contribution to the plan otherwise payable. Prior to the satisfaction of all plan liabilities, assets of the retirement fund shall not be used for any purpose other than for the exclusive benefit of members and beneficiaries.
(Rev. Ords. 1962, § 335; 1969 Cum. Supp., § 335; Ord. of 8-28-73; Ord. of 3-20-78; Ord. of 8-14-79; Ord. of 10-29-84; Ord. of 6-24-85; Ord. of 7-20-92; Ord. of 5-24-93; Ord. of 5-22-06/6-21-06; Ord. of 1-24-11)
24-30 Custodian of fund designated; payments from fund to be by warrant.
The city treasurer shall be custodian of the retirement fund and all payments from such fund shall be made by him or the assistant city treasurer only upon warrants signed by the chairman and secretary of the retirement board. No such warrant shall be drawn unless authorized by previous action of the board.
(Rev. Ords. 1962, § 338)
24-31 Retirement board to be trustee of funds; authority to invest funds.
The members of the retirement board shall be the trustees of the funds for the retirement system created by this article, and shall have full power to invest and reinvest such funds, and to hold, purchase, assign, transfer and dispose of any of the securities and investments in which any of the funds shall have been invested, as well as the proceeds of such investments, provided, however, no investment may be made which will cause the aggregate market value of investments in common stock to exceed seventy (70) percent of the aggregate market value of all property in any city retirement fund at the time the investment is made. The board may also, in its discretion, enter into a contract or contracts with one or more designated life insurance companies, providing for the deposit with, and administration by, such company or companies of all or part of the funds of the retirement system.
In the exercise of its powers and performance of its duties, the board may engage one or more companies specializing in money management and investment to act as agent for and consultant to the board. Any company so designated, may, if the board by formal action so decides, have all the power of the board to invest and reinvest the funds of the retirement system; provided, however, that said company shall, as the board requires, report in writing to the board its investment activities; and provided further that said company shall on an annual basis make a formal presentation to the board and respond to any inquiries therefrom.
(Rev. Ords. 1962, § 338; Ord. of 4-12-76; Ord. of 6-16-81; Ord. of 5-17-82)
24-32 Appropriations by city.
Prior to June first in each year, the retirement board shall certify to the board of finance the amounts which will become due and payable by the city to the retirement system during the fiscal year next following, including an estimated amount required for operating expenses, and the board of finance shall include the amount in the budget of the city for the next fiscal year as an appropriation, and the city council shall assess a special tax for the fiscal year upon the property grand list and the taxable polls to provide the funds required for such appropriation, which appropriation shall be paid into the retirement system.
(Rev. Ords. 1962, § 336)
24-33 How retirement benefits and pensions payable; rights not assignable.
(a) All retirement benefits payable under the provisions of this article shall be paid monthly, as of the fifteenth of each calendar month, or the preceding work day if the fifteenth falls on a weekend or holiday.
(b) In addition to the benefits herein provided for, there shall also be paid from the retirement system in like manner all pensions granted under the provisions of the Charter of the city prior to the date of establishment of the system.
(c) That portion of an employee’s wages or salary deducted under this article, his rights to any benefit hereunder, and any of his rights under the system hereby established, shall not be assignable and shall not be subject to attachment, execution or like process of any court. However, an employee or former employee may allow benefits under this article to be divided pursuant to a domestic relations order which conforms to the policies of the Retirement Board concerning such orders.
(d) If the net monthly retirement system benefit payable to any individual is less than twenty-five dollars ($25.00), the benefit shall be paid according to a schedule as determined by the retirement board; provided, that such individual’s benefits shall not be paid less often than annually.
(Rev. Ords. 1962, § 337; Ord. of 10-29-84; Ord. of 8-11-97; Ord. of 1-26-98)
24-34 Insurance policies may be purchased in lieu of making cash payments.
In lieu of making payments to beneficiaries directly from the funds of the retirement system, the retirement board may from time to time designate a life insurance company or life insurance companies from which annuities or policies of life insurance may be purchased from the funds of the retirement system by the board for the purpose of providing all or part of the benefits specified herein and the payment to the beneficiary of such benefits by the life insurance company shall constitute a payment from the retirement system and be a complete discharge of said system therefor.
(Rev. Ords. 1962, § 338)
24-35 Authority to correct errors in payments.
Should any change or error in the records result in any member or beneficiary receiving from or paying into the retirement system more or less than would have been the case had the records been correct, the retirement board shall have power to correct such error, and to adjust future payments or contributions in such a manner as to equitably compensate for such error.
(Rev. Ords. 1962, § 339)
24-36 Cash reserve to be kept.
For the purpose of meeting disbursements for benefits or other payments, there may be kept available cash, not exceeding ten (10) percent of the total fund, on deposit in one or more banks or trust companies in the state; provided that the sum on deposit in any one bank or trust company shall not exceed twenty-five (25) percent of the paidup capital and surplus of such bank or trust company.
(Rev. Ords. 1962, § 338)
24-37 Social Security.
In the event that Class A members, or some of them, come under the coverage of the Social Security Act with respect to their compensation as employees hereunder, the amount of contribution to the retirement fund on the part of each such member so covered, as established by section 24-29, shall thereupon be reduced by an amount equal to the tax, or payment in lieu of tax, required of each such member so covered as a condition of such coverage; and with respect to any member or beneficiary so covered, any benefits payable to or on account of such member or beneficiary as a result of such coverage shall be treated as an offset against benefits hereunder in the same manner as provided by section 24-28 for amounts paid or payable under the provisions of a workers’ compensation law.
(Rev. Ords. 1962, § 340; 1969 Cum. Supp., § 340; Ord. of 10-29-84)
24-38 Increase in benefits to those retired members who were in receipt of benefits prior to July 1, 1967.
(a) "Monthly retirement income," for purposes of this section, shall include the monthly retirement benefit payable from this system, prior to optional modification under Section 24-27, together with the amount of any offsets resulting from the application of Section 24-28, or by reason of the retired member’s receipt of social security benefits.
(b) From and after July 1, 1967, the monthly benefit to or on account of retired members who commenced receiving benefits from the system prior to July 1, 1967, shall be increased by an amount which will result in an increase in the retired member’s monthly retirement income equal to paragraph (1) or (2) below, whichever is larger:
(1) An increase of one (1) per cent in the monthly retirement income for each year, not in excess of twenty (20), that the retired member has been retired, with completed months being considered as twelfths of a year; or
(2) The amount necessary to provide the monthly retirement income which would have been payable to the retired member at his retirement had such income been computed at the rate of four dollars ($4.00) per month for each year of the retired member’s creditable service at his retirement, not in excess of twenty-five (25).
(Rev. Ords. 1962, § 341; 1969 Cum. Supp., § 341)
24-39 Leaves of absence.
Leaves of absence without pay may be granted by a member’s department head for a period of up to twelve (12) months from cessation of city pay. Such leaves shall not interrupt continuous service although such leaves to the extent that they exceed one (1) month in duration shall not be considered as creditable service for purposes of the retirement system created by this article.
(Rev. Ords. 1962, § 342; 1969 Cum. Supp., § 342; Ord. of 10-29-84)
24-40 Post-retirement adjustments to retirement benefits.
(a) As of June 30 in each year, a determination will be made to the nearest one-tenth (1/10) percent of the ratio of the average of the Consumer Price Index for such month ending June 30 to the average of the Consumer Price Index for the month ending on June 30 of the most recent year as of which an increase in retirement benefits was made. If the ratio so determined exceeds one hundred (100) percent by at least one (1) percent, the retirement benefit of each beneficiary in receipt of a benefit for at least six (6) months on the next following December 31 shall be increased in the same ratio. Such increase shall commence on the January 1 immediately following such December 31. The same percentage increase shall also be made in the retirement benefit payable to a beneficiary in receipt of a benefit under an optional election, provided the member on whose account the benefit is payable and such other person shall have received a total of at least six (6) monthly payments by such December 31. For any person who retires after July 1, 2017, the maximum adjustment shall be two and three-quarters (2 3/4) percent. For all prior retirees, the maximum adjustment in any year of any retirement benefit resulting from any such determination shall be five (5) percent. No reduction shall be made in any retirement benefit on account of any decrease in the Consumer Price Index.
(b) For purposes of this section, "Consumer Price Index" shall mean the Consumer Price Index (all items—United States City Average) as published by the United States Department of Labor, Bureau of Labor Statistics.
(c) No adjustment shall be made pursuant to this section in a deferred vested retirement benefit payable pursuant to Section 24-26 prior to its commencement.
(d) Those retirees or their beneficiaries receiving retirement benefits pursuant to Section 24-22 who retired during calendar year 1980 or previous thereto shall have their monthly retirement benefit increased according to the following schedule:
|
Year of Retirement |
Percentage Increase |
|---|---|
|
1980 |
1.29 |
|
1979 |
3.72 |
|
1978 |
5.79 |
|
1977 |
6.69 |
|
1976 |
7.26 |
|
1975 |
7.71 |
|
1974 |
9.18 |
|
1973 |
11.43 |
|
1972 |
14.01 |
|
1971 |
15.42 |
|
1970 |
17.4 |
|
1969 |
20.19 |
|
1968 and before |
22.89 |
(e) Effective upon passage, those retirees, who retired prior to 1990 on a service or early retirement, shall have their annual payment increased to no less than the livable wage as calculated to be seventeen thousand fifty-seven dollars ($17,057.00) per year for a retiree with twenty-five (25) years of service and who chose the normal non-optional form of payment. For Class A employees, this payment shall be based on years of service and for Class B employees, this payment shall be based on years of service and the estimated Social Security benefit received. Adjustments will be made for service less than twenty-five (25) years and if the normal form of payment has not been chosen. For Class B retirees, the current retirement benefit shall be added to the estimated Social Security benefit to determine if the livable wage is being paid, and if not, the retiree’s annual payment shall be increased.
(Ord. of 8-28-73; Ord. of 8-14-79; Ord. of 10-29-84; Ord. of 11-18-02; Ord. of 1-22-18(1))
24-41 Survivor income benefit.
(a) A survivor income benefit will be payable to the eligible survivors, if any, of a member who dies in service as an employee prior to his retirement in accordance with the provisions of this section. In the event of any conflict between the provisions of this section and any contract between a life insurance company and the retirement board to carry out the provisions of this section, then the provisions of such contract shall be binding and control. Effective January 1, 2007, if a member dies during a period of qualified military service (as defined in section 414(u) of the Internal Revenue Code of 1986, as amended), the eligible survivors of the member shall be entitled to survivor benefits as if the member had resumed and then terminated employment on account of death.
(b) An eligible survivor shall be either the member’s spouse, to whom he is legally married at the date of his death, or an unmarried child of the member under twenty-one (21) years of age.
(c) The monthly amount of survivor income shall be thirty (30) percent of the member’s earned compensation for the month of July immediately preceding the month in which the member’s death occurs. If the member is survived by an eligible spouse, the survivor income shall be payable to the spouse until the earliest of:
(1) The death of the spouse;
(2) The second anniversary of the spouse’s remarriage; or
(3) In the case of a Class B member, the spouse’s attainment of age sixty-two (62) at which time the surviving spouse shall be eligible for a benefit calculated pursuant to section 24-26(d).
If there is no eligible spouse at the time of the member’s death, or in the event of cessation of payments to a surviving spouse for reasons of death, the survivor income shall be payable to the eligible child or children of the deceased member. The survivor income shall be divided equally among the eligible children and each eligible child’s portion shall be payable until the earlier of his marriage or attainment of age twenty-one (21).
(d) In the case of a Class A member who shall be survived by both an eligible spouse and an eligible child or eligible children, the monthly amount of survivor income provided in paragraph (c) of this section shall be increased by a temporary survivor income supplement. The amount of the temporary survivor income supplement shall be five (5) percent of the member’s earned compensation, as provided in such paragraph (c), if there is one eligible child, or ten (10) percent of such compensation if there are two (2) or more eligible children. The temporary survivor income supplement shall be paid until the earliest of the cessation of payments to the surviving spouse, or the date on which the eligible child or the last of the eligible children ceases to be an eligible survivor. A temporary survivor income supplement initially payable on behalf of two (2) or more eligible children shall be reduced to an amount equal to five (5) percent of such compensation when only one child remains as an eligible survivor.
(e) If the retirement board shall enter into a contract with a life insurance company to carry out the provisions of this section, the normal and accrued liability contribution rates payable by the city as provided in subsection (b) of section 24-29 shall be determined without regard to such survivor income benefits, but the city shall make an additional contribution each year to provide for the payment of premiums under such life insurance contract.
(Ord. of 8-28-73; Ord. of 10-29-84; Ord. of 2-13-89; Ord. of 7-20-92; Ord. of 10-15-01; Ord. of 12-3-01; Ord. of 1-24-11)
24-42 Effective date.
The amendments to Sections 24-14, 24-22 and 24-26 changing the full vesting period from seven (7) years of creditable service to five (5) and eliminating partial vesting are effective July 1, 2017.
The amendments to Section 24-41(c) which changed the survivor income benefit from twenty-five (25) percent to thirty (30) percent for nonunion, Class A, City AFSCME and BSDP members shall be regarded as effective July 1, 2000. Said amendment for BSD AFSCME members shall be regarded as effective August 1, 2001. Said amendment for IBEW members shall be regarded as effective July 1, 2001.
The amendments to Sections 24-22(c)(2) and (e)(2) which changed the Class B nonunion, City AFSCME and BSDP members accrual rate to one and six-tenths (1.6) percent and the early retirement reduction to two (2) percent per year shall be regarded as effective July 1, 2000. Said amendment for BSD AFSCME members shall be regarded as effective August 1, 2001. Said amendment for IBEW members shall be regarded as effective July 1, 2001.
The amendments to Sections 24-14, 24-22(a), (c)(1), (c)(2), and (e)(1), and 24-26(b) which changed the Class A early retirement age, changed the early retirement reduction for service from twenty (20) to twenty-five (25) years and changed the accrual rate to two and seventy-five hundredths (2.75) percent shall be regarded as effective July 1, 2000.
The relevant amendments to Sections 24-22, 24-23, 24-26, 24-29 and 24-40 are regarded as effective retroactive to July 1, 1973. The relevant amendment to Section 24-41 is regarded as effective October 1, 1973. The relevant amendments to Sections 24-1, 24-14, 24-19, 24-22, 24-23, 24-26, 24-29 and 24-40 which were enacted in July, 1979, are regarded as effective retroactive to July 1, 1978. The amendments to Sections 24-14, 24-19, 24-20, 24-21, 24-22, 24-23, 24-24, 24-25, 24-26, 24-27, 24-28, 24-29, 24-33, 24-37, 24-39, 24-40, 24-41, 24-42 and 24-60 which were enacted in August, 1984, will be regarded as effective retroactive to July 1, 1983, except the amendment to Section 24-40 which will be regarded as effective retroactive to July 1, 1984. The amendments to Sections 24-14, 24-19, 24-21, 24-22, 24-23, 24-26, 24-41 and 24-42 which were enacted February 13, 1989, will be regarded as effective retroactive to July 1, 1988; however, the amendment to Section 24-19 shall be applicable to any employee in service as of January 1, 1988, or hired thereafter. The relevant amendment to Section 21-41(c)(3) will be regarded as retroactive to December 20, 1990.
The amendments to Sections 24-22(c), which provided for increased Class A contributions and an increased Class A benefit accrual rate which were enacted July 20, 1992, will be regarded as effective January 1, 1992.
The amendments to Section 24-47 establishing options 5 and 6 shall be considered effective for all members as of March 9, 1998. The relevant amendment to Section 24-22(e) shall be regarded as effective July 1, 1997.
The relevant amendment to Section 24-14, definition of "employee," and Section 24-21(c), which changed eligibility from forty (40) weeks and thirty (30) hours to one thousand two hundred (1,200) hours, is regarded as effective January 21, 1998, and applies to employees with such a schedule on that date retroactive to the beginning of such a schedule and to employees who achieve such a schedule thereafter.
The amendments to Section 24-14 which change the definition of "average final compensation" for police sergeants, lieutenants, deputy chiefs, and chief shall be effective for these named Class A positions as of July 1, 2007.
(Ord. of 8-28-73; Ord. of 8-14-79; Ord. of 10-29-84; Ord. of 2-13-89; Two Ords. of 7-20-92; Ord. of 8-12-96; Ord. of 3-9-98; Ord. of 3-23-98; Ord. of 5-18-98; Ord. of 8-14-00, Ord. of 9-11-00; Ord. of 1-8-01; Ord. of 10-15-01; Ord. of 12-3-01; Ord. of 6-4-07, eff. 7-4-07; Ord. of 1-22-18(1))
24-43—24-46 Reserved.
24-47 Creation; duties generally.
The general administration and responsibility for the proper operation of the retirement system created by this chapter shall be vested in a board of eight (8) members, to be known as the retirement board.
(Rev. Ords. 1962, § 334; Ord. of 4-13-98)
24-48 Composition.
The retirement board shall consist of three (3) members appointed by the city council, two (2) Class A members of the system elected by the Class A membership, two (2) Class B members of the system elected by the Class B membership, and the city treasurer as an ex officio member. Of the Class A and Class B board members, no two (2) shall be employed at the same department.
(Rev. Ords. 1962, § 334; Ord. of 4-13-98)
24-49 Chairman and secretary to be designated.
The retirement board shall annually elect a chairman from its members and appoint a secretary who may, but need not, be a member.
(Rev. Ords. 1962, § 334)
24-50 Terms.
(a) Elected members. The terms of the elected members shall be three (3) years, beginning July first. They shall be elected at such time and in such manner as the retirement board shall designate.
(b) Appointed members. On the first Monday in June, 1998, the city council, with mayor presiding, shall appoint two (2) members of the retirement board, one of whom shall be an additional member of such board. One of the two (2) members appointed shall be appointed for a term of three (3) years and one of the members shall be appointed for a term of two (2) years, each term commencing July 1, 1998, and continuing for the terms designated and until a successor is duly appointed; thereafter the appointment of members to the board by the city council shall be made on the first Monday in June for a term of three (3) years from the first day of July next succeeding.
(Rev. Ords. 1962, § 334; Ord. No. of 4-13-98)
24-51 Vacancies.
If a vacancy occurs in the office of any elected or appointed member of the retirement board, it shall be filled for the unexpired term in such manner as the office is regularly filled.
(Rev. Ords. 1962, § 334)
24-52 Members to serve without compensation.
The members of the retirement board shall serve without compensation for their services on such board, but shall be reimbursed from the funds of the system for necessary expenses incurred through service on the board.
(Rev. Ords. 1962, § 334)
24-53 Votes; quorum.
Each member of the retirement board shall be entitled to one (1) vote. Five (5) members shall constitute a quorum, but five (5) votes shall be necessary for any resolution or action at any meeting.
(Rev. Ords. 1962, § 334; Ord. of 4-13-98)
24-54 Members to be notified of meetings.
All members of the retirement board shall be notified of any meeting by the secretary, orally or in writing, at least twenty-four (24) hours in advance thereof, but may waive such notice, and shall be deemed to have waived such notice if physically present at any meeting.
(Rev. Ords. 1962, § 334)
24-55 Legal advisors.
The city attorney and corporation counsel shall be legal advisor to the retirement board.
(Rev. Ords. 1962, § 334)
24-56 Establishment of regulations for administration of system.
Subject to the provisions of this article, the retirement board shall from time to time establish rules and regulations for the administration of the retirement system and the transaction of its business.
(Rev. Ords. 1962, § 334)
24-57 Authority to engage medical, actuarial and other services.
The retirement board shall be authorized to engage such medical, actuarial and other services as it may deem necessary for the operation of the system, and the same shall be paid for at such rates and in such amounts as the board shall approve.
(Rev. Ords. 1962, § 334)
24-58 Board to designate an actuary.
The retirement board shall designate an actuary as technical advisor to the board and prescribe his duties.
(Rev. Ords. 1962, § 334)
24-59 Designation of medical examiners authorized; duties.
The city council shall designate a board of medical examiners composed of three (3) physicians not eligible to participate in the retirement system, who shall serve at the pleasure of the city council and receive such compensation as the board determines. The medical board may also employ other physicians to report on special cases. The board of medical examiners shall arrange for and pass upon all medical examinations required under the provisions of this chapter, shall investigate all statements and certificates by or on behalf of a member in connection with an application for disability retirement or accidental death benefits, and shall report in writing to the retirement board its conclusions and recommendations on all matters referred to it.
(Rev. Ords. 1962, § 334; Ord. of 4-17-78)
24-60 Actuary to make valuations of system.
On the basis of such actuarial assumptions as the retirement board shall adopt, the actuary shall make valuations of the assets and liabilities of the retirement system at least once every three (3) years and more often if the retirement board so directs.
(Rev. Ords. 1962, § 334; Ord. of 10-29-84)
24-61 Adoption of mortality and service tables.
Immediately after the establishment of the retirement system, the actuary shall, upon the basis of necessary investigation made by him as authorized by the retirement board, recommend for adoption such mortality and service tables as he deems necessary. The board shall adopt necessary mortality and service tables and shall establish the rate per annum of regular interest to be used in all actuarial calculations under the retirement system. Unless or until changed by the retirement board, such rate shall be three (3) percent. At least once in each five-year period following establishment of the system, the actuary shall make an actuarial investigation of the system, and taking into account the results of such investigation, the board shall adopt for the retirement system such mortality, service and other tables as they may deem necessary.
(Rev. Ords. 1962, § 334)
24-62 Authority to designate depository for funds.
The retirement board shall designate from time to time a depository for the securities and evidence of indebtedness held in the retirement fund, and may contract for the safekeeping of securities and evidences of indebtedness with such banks, trust companies and safe deposit facilities as it shall from time to time determine, within or without the state. Such contract shall provide for access to such securities and evidence of indebtedness by the custodian or other authorized agent of the city. Expenses incidental to such safekeeping, or to advisory service in investment matters, shall be an operating expense of the system.
(Rev. Ords. 1962, § 334)
24-63 Records and data to be kept.
The retirement board shall keep all data in convenient form for actuarial valuation and for checking the experience of the system. It shall also keep a record of its proceedings, which shall be open to public inspection and shall furnish annually for publication in the city report a financial report of its transactions.
(Rev. Ords. 1962, § 334)
24-64 Members to have no interests in business of board.
No member of the retirement board shall have any direct interest in the gains or profits of any investment made by the board, nor shall any member, directly or indirectly, for himself or as an agent, in any manner use the same except to make such current and necessary payments as are authorized by the board; nor shall any member of the board become an endorser of surety, or in any manner an obligor, for moneys loaned to or borrowed from the board.
(Rev. Ords. 1962, § 338)
24-65 Early retirement options.
(a) (1) Class A employees who will attain twenty-five (25) years or more of service prior to June 30, 1993, shall be eligible for an early retirement window or opportunity. Eligible employees must apply for retirement by December 31, 1992. Retirement will then be effective upon reaching twenty-five (25) years or more of service and between January 1, 1993, and June 30, 1993. For such eligible employees, the retirement benefit they are otherwise entitled to will be recalculated using an accrual rate of two and thirty-five-hundredths (2.35) percent for the first twenty-five (25) years of service and this recalculated benefit will be paid effective January 1, 1997. All other terms and conditions of the benefit will be in accordance with the retirement plan provisions currently in effect.
(2) Class B employees who will be age sixty (60) or more and who have attained twenty (20) years or more of service prior to June 30, 1993, shall be eligible for an early retirement incentive program. Eligible employees must apply for retirement by December 31, 1992. Retirement will then be effective upon satisfying these conditions and between January 1, 1993, and June 30, 1993. For such eligible employees, the retirement benefit they are otherwise entitled to will be increased by the addition of two (2) years of age and two (2) years of service credit to that attained at the time of retirement. All other terms and conditions of the benefit will be in accordance with the retirement plan provisions currently in effect.
(b) (1) Class A employees who will attain twenty-five (25) years or more of service prior to June 30, 1994, shall be eligible for an early retirement window of opportunity. Eligible employees must apply for retirement by May 31, 1994. Retirement will then be effective upon reaching twenty-five (25) years or more of service and between July 1, 1994, and August 15, 1994. For such eligible employees, the retirement benefit they are otherwise entitled to will be recalculated using an accrual rate of two and thirty-five-hundredths (2.35) percent for the first twenty-five (25) years of service and this recalculated benefit will be paid effective upon retirement. All other terms and conditions of the benefit will be in accordance with the retirement plan provisions currently in effect.
(2) Class B employees who will be age fifty-nine (59) or more and who have attained twenty (20) years or more of service prior to June 30, 1994, shall be eligible for an early retirement incentive program. Eligible employees must apply for retirement by May 31, 1994. Retirement will then be effective upon satisfying these conditions and between July 1, 1994, and August 15, 1994. For such eligible employees, the retirement benefit they are otherwise entitled to will be increased by the addition of three (3) years of age and three (3) years of service credit to that attained at the time of retirement. All other terms and conditions of the benefit will be in accordance with the retirement plan provisions currently in effect.
(c) (1) Class A employees who will attain twenty-two (22) years or more of service prior to June 30, 1998, shall be eligible for an early retirement incentive program. Eligible employees must apply for retirement by May 1, 1998. Retirement will then be effective upon reaching twenty-two (22) years or more of service and between February 17, 1998, and June 30, 1998. For such eligible employees, the retirement benefit they are otherwise entitled to will be increased by adding three (3) years of service at the 2.35% rate to that attained at the time of retirement. These additional three (3) years will not be subject to the overall cap of thirty-five (35) years of service. All other terms and conditions of the benefit will be in accordance with the retirement plan provisions currently in effect.
(2) Class B employees who will be age fifty-nine (59) or more and who have attained fifteen (15) years or more of service prior to June 30, 1998, shall be eligible for an early retirement incentive program. Eligible employees must apply for retirement by May 1, 1998. Retirement will then be effective upon satisfying these conditions and between February 17, 1998, and June 30, 1998. For such eligible employees, the retirement benefit they are otherwise entitled to will be increased by the addition of three (3) years of service and three (3) years of age to that attained at the time of retirement. All other terms and conditions of the benefit will be in accordance with the retirement plan provisions currently in effect.
With Finance Board approval, the date of retirement may be extended by up to sixty (60) days in the event of hardship to the city.
(Ord. of 10-13-92; Ord. of 6-13-94; Ord. of 3-23-98)
24-66 Class "A" union members post-retirement health accounts.
For all Class "A" union members employed on July 1, 1998, a post employment health account will be established in the retirement system, credited to each such individual. Such account shall be on file at the retirement office. Interest will accrue on each account at the rate of eight (8) percent compounded annually. Within seven (7) days following the eligible employee’s retirement or termination for any reason, their retirement system post employment health account balance shall be deposited directly into their post employment health account.
(Ord. of 3-22-99)