By Cain H.B. No. 1944
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain public retirement systems for police and fire
1-3 personnel.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 6243a-1, Revised Statutes, is revised to
1-6 read as follows:
1-7 Art. 6243a-1. PENSION SYSTEM FOR POLICE OFFICERS AND FIRE
1-8 FIGHTERS IN CERTAIN CITIES
1-9 PART 1. PURPOSE
1-10 Sec. 1.01. AMENDMENT, RESTATEMENT, AND CONSOLIDATION. (a)
1-11 The purpose of this article is to restate and amend the provisions
1-12 of a former law governing the pension funds for police officers and
1-13 fire fighters in certain municipalities (Chapter 4, Acts of the
1-14 43rd Legislature, 1st Called Session, 1933, also known as Article
1-15 6243a) to permit the consolidation of the terms of certain pension
1-16 plans created under Sections 1, 11A, and 11B of that Act for the
1-17 purpose of simply and accurately reflecting the joint
1-18 administration of the plans.
1-19 (b) The provisions of this article are entirely consistent
1-20 with all terms and conditions relating to benefits and benefit
1-21 entitlement previously contained in the plans. This article does
1-22 not intend to take away or reduce any benefit contained in the
1-23 plans created under former Article 6243a.
2-1 PART 2. GENERAL PROVISIONS
2-2 Sec. 2.01. DEFINITIONS. In this article:
2-3 (1) "Active service" means any period that a member
2-4 receives compensation as a police officer or fire fighter from
2-5 either department for services rendered.
2-6 (2) "Actuarial equivalent" means a form of benefit
2-7 differing in time, duration, or manner of payment from a standard
2-8 benefit payable under this article but having the same value when
2-9 computed using the assumptions set forth in this article.
2-10 (3) "Administrator" means the person designated by the
2-11 board to supervise the affairs of the pension system.
2-12 (4) "Alternate payee" has the meaning given the term
2-13 by Section 414 of the code or any successor provision.
2-14 (5) "Annual additions" means the sum of the following
2-15 amounts credited to a member's account under any defined
2-16 contribution plan maintained by the city for the limitation year:
2-17 (A) city contributions;
2-18 (B) member contributions, other than rollover
2-19 contributions from a plan maintained by any employer other than the
2-20 city;
2-21 (C) forfeitures; and
2-22 (D) amounts allocated after March 31, 1984, to
2-23 an individual medical account, as defined in Section 415(1)(2) of
2-24 the code, that is part of a pension or annuity plan maintained by
2-25 the city.
3-1 The term does not include amounts described in Paragraph (D)
3-2 of this subdivision for the purpose of computing the percentage
3-3 limitation described in Section 415(c)(1)(B) of the code. For any
3-4 limitation year beginning before January 1, 1987, only that portion
3-5 of member contributions equal to the lesser of member contributions
3-6 in excess of six percent of 415 compensation or one-half of member
3-7 contributions to the combined pension plan or any qualified defined
3-8 contribution plan maintained by the city is treated as annual
3-9 additions.
3-10 (6) "Annual benefit" means the aggregate benefit
3-11 attributable to city contributions payable annually under the
3-12 combined pension plan exclusive of any benefit not required to be
3-13 considered for purposes of applying the limitations of Section 415
3-14 of the code to the combined pension plan, payable in the form of a
3-15 straight life annuity beginning at age 62 with no ancillary
3-16 benefits. Solely for purposes of computing the limitations under
3-17 the combined pension plan, benefits actually payable to a pensioner
3-18 are adjusted to the actuarial equivalent of a straight life annuity
3-19 pursuant to Section 8.01 of this article even though no member may
3-20 actually receive a benefit in the form of a straight life annuity.
3-21 (7) "Article 6243a" means Chapter 4, Acts of the 43rd
3-22 Legislature, 1st Called Session, 1933 (former Article 6243a,
3-23 Vernon's Texas Civil Statutes), pertaining to a pension system for
3-24 police officers, fire fighters, and fire alarm operators in certain
3-25 cities.
4-1 (8) "Assignment pay" means monthly pay, in addition to
4-2 salary, granted to a Group B member and authorized by the city
4-3 council for the performance of certain enumerated duty assignments.
4-4 (9) "Base pay" means the maximum monthly civil service
4-5 pay from time to time established by the city for a police officer
4-6 or fire fighter, exclusive of any other form of compensation.
4-7 (10) "Base pension" means the amount of retirement,
4-8 death, or disability benefits computed under this article at the
4-9 time a Group B member leaves active service, dies, or becomes
4-10 disabled.
4-11 (11) "Board" means the board of trustees created for
4-12 the purpose of administering the pension system.
4-13 (12) "Child" means an unmarried person under the age
4-14 of 19 whose natural or adoptive parent is a primary party.
4-15 (13) "City" means each municipality having a
4-16 population of more than 1,000,000 and less than 1,500,000,
4-17 according to the most recent federal census.
4-18 (14) "City council" means the governing body of the
4-19 city.
4-20 (15) "City service incentive pay" means annual pay,
4-21 adjusted by the city from time to time, in addition to the salary
4-22 of a member granted to the member under the authority of the city
4-23 charter and received by the member during active service.
4-24 (16) "Code" means the United States Internal Revenue
4-25 Code of 1986.
5-1 (17) "Combined pension plan" means any pension plan
5-2 created pursuant to this article.
5-3 (18) "Computation pay" shall be used in determining
5-4 the amount of a Group B member's contribution under Section 4.03(d)
5-5 of this article and in determining the base pension of any benefits
5-6 to be paid to a Group B member or the member's qualified survivors
5-7 and means the sum of the following:
5-8 (A) the monthly rate of pay of a Group B member
5-9 for the highest civil service rank the person holds, from time to
5-10 time, as a result of a competitive examination; plus
5-11 (B) the monthly rate of pay of a Group B member
5-12 as educational incentive pay; plus
5-13 (C) the monthly rate of pay of a Group B member
5-14 as longevity pay, as authorized by the legislature; plus
5-15 (D) the city service incentive pay, computed on
5-16 a monthly basis, of a Group B member.
5-17 Any compensation received by a Group B member, other than
5-18 that noted in Paragraphs (A)-(D) of this subdivision (for example,
5-19 compensation for overtime work and the monthly rate of pay a member
5-20 would receive from the city in the form of assignment pay), will
5-21 not be considered in determining the computation pay of a Group B
5-22 member. Any lump-sum payments for compensatory time, unused sick
5-23 leave, unused vacation time, or city service incentive pay payable
5-24 after a Group B member leaves active service, death, disability,
5-25 resignation, or any other type of termination may not be considered
6-1 in determining the computation pay of any Group B member.
6-2 Computation pay for a Group B member for any given month is
6-3 determined on the monthly rates of pay due the Group B member for
6-4 the entire month. If a Group B member works less than the member's
6-5 assigned schedule for any given month, the computation pay for the
6-6 Group B member shall be prorated for the portion of the month that
6-7 the Group B member worked.
6-8 (19) "Educational incentive pay" means incentive pay
6-9 designed to reward completion of certain hours of college credit,
6-10 adjusted by the city from time to time, that is paid to a member in
6-11 addition to the member's salary.
6-12 (20) "Department" means either the police department
6-13 of the city, the fire department of the city, or both the police
6-14 and fire departments of the city together.
6-15 (21) "Dependent parent" means a natural parent or
6-16 parent who adopted a primary party and who immediately before the
6-17 death of a primary party received over half of the parent's
6-18 financial support from the primary party.
6-19 (22) "Disability retirement" means any period that a
6-20 pensioner receives a disability pension.
6-21 (23) "415 compensation" means a member's wages,
6-22 salary, and other amounts received for personal services rendered
6-23 in the course of employment with the city during a limitation year,
6-24 but does not include:
6-25 (A) contributions made by the city to a plan of
7-1 deferred compensation, or a simplified employee pension plan, to
7-2 the extent such contributions are excludable from the member's
7-3 gross income;
7-4 (B) any distributions from a plan of deferred
7-5 compensation, or a simplified employee pension plan, to the extent
7-6 the distributions are excludable from the member's gross income;
7-7 (C) other amounts that received special tax
7-8 benefits, such as premiums for group term life insurance, to the
7-9 extent that the premiums are not includable in the gross income of
7-10 the member, or contributions made by the city, including
7-11 contributions toward the purchase of an annuity described by
7-12 Section 403(b) of the code, whether or not contributed pursuant to
7-13 a salary reduction agreement and whether or not the amounts are
7-14 actually excludable from the gross income of the member; and
7-15 (D) for any limitation year beginning after
7-16 December 31, 1988, compensation in excess of $200,000, adjusted in
7-17 a manner permitted under Section 415(d) of the code.
7-18 (24) "Fund" means all funds and property held for the
7-19 benefit of all persons who are or who may become entitled to any
7-20 benefits under any plan within the pension system, together with
7-21 all income, profits, or other increments.
7-22 (25) "Group A member" means any police officer or fire
7-23 fighter described by Section 5.01(a)(1) of this article.
7-24 (26) "Group B member" means any police officer or fire
7-25 fighter described by Section 5.01(a)(2) of this article.
8-1 (27) "Health director" means any qualified physician
8-2 designated from time to time by the board.
8-3 (28) "Limitation year" means the plan year of the
8-4 combined pension plan and any defined benefit plan or defined
8-5 contribution plan of the city in which a member participates.
8-6 (29) "Longevity pay" means pay in addition to the
8-7 salary of a member granted under Section 141.032, Local Government
8-8 Code, for each year of active service completed by a member in
8-9 either department.
8-10 (30) "Member" means both Group A and Group B members.
8-11 (31) "Member's account" means an account established
8-12 and maintained for a member with respect to the member's total
8-13 interest in a defined contribution plan under this article or
8-14 maintained by the city resulting in annual additions.
8-15 (32) "Old plan" means any pension plan created
8-16 pursuant to Section 1 of Article 6243a.
8-17 (33) "Pensioner," "Group A pensioner," or "Group B
8-18 pensioner" means a former member of the pension system who is on
8-19 either a service or disability retirement.
8-20 (34) "Pension service" means the time, in years, and
8-21 prorated for fractional years, that a member has contributed to the
8-22 fund under the terms of the combined pension plan or any plan
8-23 within the pension system.
8-24 (35) "Pension system" means the fund and any plans
8-25 created pursuant to this article and that are intended to be
9-1 qualified under Section 401(a) of the code.
9-2 (36) "Plan A" means any plan created pursuant to
9-3 Section 11A of Article 6243a.
9-4 (37) "Plan B" means any plan created pursuant to
9-5 Section 11B of Article 6243a.
9-6 (38) "Police officer" or "fire fighter" means a police
9-7 officer, fire fighter, fire alarm operator, fire inspector,
9-8 apprentice police officer, apprentice fire fighter, or similar
9-9 employee of either department as defined in the classifications of
9-10 the personnel department of the city.
9-11 (39) "Primary party," "Group B primary party," or
9-12 "Group A primary party" means a member, former member, or
9-13 pensioner.
9-14 (40) "Qualified actuary" means either:
9-15 (A) an individual who is a Fellow of the Society
9-16 of Actuaries, a Fellow of the Conference of Actuaries in Public
9-17 Practice, or a member of the American Academy of Actuaries; or
9-18 (B) a firm that employs one or more persons who
9-19 are Fellows of the Society of Actuaries, Fellows of the Conference
9-20 of Actuaries in Public Practice, or members of the American Academy
9-21 of Actuaries and are providing services to the pension system.
9-22 (41) "Qualified domestic relations order" has the
9-23 meaning provided by Section 414 of the code.
9-24 (42) "Qualified survivor" means a person who is
9-25 eligible to receive survivor benefits after the death of a primary
10-1 party and includes:
10-2 (A) a surviving spouse, if the spouse was
10-3 continuously married to the primary party both at the date when the
10-4 primary party either voluntarily or involuntarily left active
10-5 service as a member and at the date of the primary party's death;
10-6 (B) all surviving, unmarried, legitimate, and
10-7 legally adopted children under 19 years of age who were born or
10-8 adopted before the primary party as a member either voluntarily or
10-9 involuntarily left active service or who were born after a member
10-10 left active service if the mother was pregnant before the member
10-11 left active service; and
10-12 (C) a surviving dependent parent of a primary
10-13 party if the primary party is not survived by a spouse or child
10-14 eligible for benefits.
10-15 (43) "Service retirement" means any period that a
10-16 pensioner receives a retirement pension but does not include any
10-17 period of disability retirement.
10-18 (44) "Spouse" means the husband or wife of a primary
10-19 party recognized under the laws of this state.
10-20 (45) "Total wages and salaries" means all pay received
10-21 by a member of any plan within the pension system from the city,
10-22 excluding any lump-sum payments for unused sick time or unused
10-23 vacation time accrued by any member and payable as the result of
10-24 the member's death, disability, resignation, or any other reason
10-25 for leaving active service.
11-1 (46) "Trustee" means a member of the board.
11-2 Sec. 2.02. ACTUARIAL ASSUMPTIONS. (a) If the amount of any
11-3 benefit is to be determined on the basis of actuarial assumptions
11-4 that are not otherwise specifically set forth for that purpose in
11-5 this article, the actuarial assumptions to be used are those
11-6 earnings and mortality assumptions being used on the date of the
11-7 determination by the pension system's qualified actuary and
11-8 approved by the board.
11-9 (b) The actuarial assumptions being used at any particular
11-10 time shall be attached by the administrator as an addendum to this
11-11 article and treated for all purposes as a part of any plan created
11-12 by this article.
11-13 (c) The actuarial assumptions may be changed by the pension
11-14 system's qualified actuary at any time if approved by the board,
11-15 but no such change in actuarial assumptions may result in any
11-16 decrease in benefits accrued as of the effective date of the
11-17 change.
11-18 PART 3. ADMINISTRATION
11-19 Sec. 3.01. BOARD OF TRUSTEES. (a) The pension system shall
11-20 be administered by the board.
11-21 (b) The board consists of seven trustees who shall be
11-22 selected and shall serve as follows:
11-23 (1) The city council shall name from among its members
11-24 three council members who shall serve as trustees of the board.
11-25 The council member trustees shall be named as soon as possible
12-1 after the first Monday in May of each odd-numbered year and shall
12-2 serve for the term of office to which they were elected as council
12-3 members. If there is a vacancy in any of the council member
12-4 trustees' seats on the board, the city council shall name another
12-5 council member to serve out the remainder of the unexpired term.
12-6 (2) The police and fire department members of the
12-7 pension plans within the pension system shall separately, by
12-8 department and not by plan, elect from among their respective
12-9 memberships two active police officer and two active fire fighter
12-10 members. On their election, each of the trustees under this
12-11 subdivision shall execute a written affirmation of the person's
12-12 undertaking to faithfully perform duties to the pension system.
12-13 The police and fire department trustees shall serve terms of four
12-14 years each, the terms being staggered so that one term, but not
12-15 both from the same department, shall expire on June 1 of each
12-16 odd-numbered year. If a vacancy occurs among the police and fire
12-17 department trustees, the vacancy shall be filled in accordance with
12-18 the provisions of Subsection (d) of this section. The police and
12-19 fire department trustees will continue to serve beyond the
12-20 expiration of their terms, if their successors have not been
12-21 elected and affirmed in writing their undertaking to faithfully
12-22 perform their duties to the pension system, until their successors
12-23 are elected and have affirmed in writing their undertaking to
12-24 faithfully perform their duties to the pension system.
12-25 (c) In addition to the seven trustees of the board there are
13-1 three alternate trustees of the board who shall serve on the board
13-2 during the absence of a regular trustee and who may serve on any
13-3 subcommittee of the board. In addition, the alternate trustees
13-4 may, and generally are expected to, attend all meetings of the
13-5 board and enter into any discussion or deliberation but may not
13-6 vote unless serving in place of a regular trustee. Alternate
13-7 trustees shall be kept fully appraised of all developments as any
13-8 regular trustee, including when the board deems appropriate, and
13-9 may attend any seminars and meetings as the board approves. The
13-10 alternate trustees shall be selected and shall serve as follows:
13-11 (1) The city council shall name from among its members
13-12 one council member who shall serve as an alternate trustee of the
13-13 board and who may sit as a trustee in the absence of any of the
13-14 three council trustees. The council alternate shall be selected in
13-15 the same manner as the regular council trustees and shall serve for
13-16 a like term.
13-17 (2) One alternate trustee from the police department
13-18 and one alternate trustee from the fire department shall be elected
13-19 in the same manner as a regular trustee. An alternate trustee may
13-20 only replace a regular trustee from the same department. An
13-21 alternate trustee serves a term of four years expiring on June 1 of
13-22 every second year. Alternate trustees will serve beyond the
13-23 expiration of their terms if necessary until their successors have
13-24 been elected and have affirmed in writing their undertaking to
13-25 faithfully perform their duties to the pension system. If an
14-1 alternate trustee cannot serve beyond the expiration of the
14-2 person's term, the board shall appoint a new alternate trustee from
14-3 the department from which the vacancy occurs to serve until a
14-4 successor has been elected and has affirmed in writing that the
14-5 person will undertake to faithfully perform the person's duties to
14-6 the pension system.
14-7 (d) If a vacancy occurs among the police or fire department
14-8 alternate trustees, for reasons other than the failure to elect a
14-9 successor alternate trustee or the occurrence of a vacancy among
14-10 the regular trustees of either department, the board shall appoint
14-11 a new alternate trustee representing the department from which the
14-12 vacancy occurs to serve as the alternate trustee for the remainder
14-13 of the alternate trustee's term. A candidate is not eligible for
14-14 election to an alternate trustee position and to a regular trustee
14-15 position during the same election.
14-16 (e) If a vacancy occurs among the police or fire department
14-17 regular trustees, the alternate trustee representing the department
14-18 from which the vacancy occurs shall serve as the regular trustee
14-19 for the remainder of the unexpired regular trustee's term.
14-20 Thereafter, the board shall appoint a new alternate trustee from
14-21 the same department to serve for a period ending on the earlier of
14-22 the expiration of the regular trustee's term or the original
14-23 alternate trustee's term. If the original alternate trustee's term
14-24 has not expired after serving in place of the regular trustee, then
14-25 that person shall serve out the remainder of the unexpired term.
15-1 After a new regular trustee has been elected, the original
15-2 alternate trustee shall return to serve as an alternate trustee
15-3 until the regular trustee's term has expired. However, if the
15-4 original alternate trustee, while an alternate trustee, is elected
15-5 to a full term as a regular trustee before the expiration of the
15-6 term as an alternate trustee, the term of the new alternate trustee
15-7 extends until the expiration of the original alternate trustee's
15-8 term.
15-9 (f) The election of the trustees representing the police and
15-10 fire departments shall be held under the supervision of the board,
15-11 and the board shall adopt such rules and regulations governing the
15-12 election procedure as it considers appropriate, as long as the
15-13 rules and regulations are consistent with generally accepted
15-14 principles of secret ballot and majority rule. The rules and
15-15 regulations adopted by the board shall be recorded in the minutes
15-16 of the board and made available to the members of any pension plan
15-17 within the pension system.
15-18 (g) The board shall, in June of each odd-numbered year,
15-19 elect from among its trustees a chairman, vice chairman, and a
15-20 deputy vice chairman, each to serve for two-year terms. In
15-21 addition, the board may elect, if it so chooses, a second deputy
15-22 vice chairman to serve during the term of the incumbent chairman.
15-23 The vice chairman shall be authorized to act in the place of the
15-24 chairman in all matters pertaining to the board. In the absence of
15-25 both the chairman and the vice chairman, the deputy vice chairman
16-1 shall be authorized to act. In the absence of the chairman, vice
16-2 chairman, and deputy vice chairman, the duties shall fall to the
16-3 second deputy vice chairman.
16-4 (h) The administrator, or in the administrator's absence a
16-5 member of the administrative staff designated by the board, shall
16-6 serve as the secretary of the board.
16-7 (i) The board shall serve without separate compensation from
16-8 the fund, but with entitlement to any appropriate compensation from
16-9 the city as if the board members were performing their regular
16-10 functions for the police or fire department. The board shall meet
16-11 not less than once each month and may meet at any time on the call
16-12 of its chairman.
16-13 (j) The board has full power to make rules and regulations
16-14 pertaining to the conduct of its meetings and to the operation of
16-15 the pension system as long as its rules are not inconsistent with
16-16 the terms of this article, any pension plan within the pension
16-17 system, or the laws of this state or the United States to the
16-18 extent applicable.
16-19 (k) The board has full power, through the chairman, to issue
16-20 process for witnesses and to administer oaths to witnesses and
16-21 examine witnesses as to any matter affecting retirement,
16-22 disability, or death benefits under any pension plan within the
16-23 pension system, and to compel witnesses to testify. In addition,
16-24 the board may request investigative services from either department
16-25 in connection with any matter before the board.
17-1 (l) The board has the responsibility for the administration
17-2 of the pension system and shall order payment from the fund in
17-3 accordance with the terms of the appropriate plans within the
17-4 pension system. Money from the fund may not be paid except on
17-5 order of the board.
17-6 (m) The board has full power to invest the assets of the
17-7 fund in accordance with Section 4.07 of this article.
17-8 (n) Four trustees of the board constitute a quorum at any
17-9 called meeting, except that a trustee from the police department
17-10 and a trustee from the fire department must be present to conduct
17-11 business.
17-12 (o) No action may be taken by the board except at a meeting,
17-13 and no action shall be taken during a meeting without the approval
17-14 of a majority of the trustees present. Only actions of the board
17-15 taken or approved of during a meeting are binding on the board, and
17-16 no other written or oral statement or representation made by any
17-17 person is binding on the board or the pension system.
17-18 Sec. 3.02. PROFESSIONAL CONSULTANTS. In addition to the
17-19 authority of the board to employ the services of certain
17-20 consultants set forth in this article, the board has the authority
17-21 to employ the services of any professional consultant whenever the
17-22 services of the consultant are considered necessary or desirable
17-23 and in the best interests of the pension system. A professional
17-24 consultant shall receive such compensation as may be determined by
17-25 the board in accordance with Section 4.01 of this article.
18-1 Sec. 3.03. LEGAL ADVISOR. (a) The city attorney of the
18-2 city may ex officio be the legal advisor to the board.
18-3 (b) The city attorney or an assistant city attorney shall
18-4 attend all meetings of the board and advise the board on any matter
18-5 on which the board requests a legal opinion from the city attorney.
18-6 (c) The board may retain other attorneys to represent the
18-7 board or to give advice. Compensation for other attorneys shall be
18-8 made in accordance with Section 4.01 of this article.
18-9 Sec. 3.04. APPOINTMENT OF ADMINISTRATOR. (a) The board has
18-10 the authority to appoint an administrator to carry out the business
18-11 of the board and to keep a record of the proceedings of the board.
18-12 The administrator, in carrying out the business of the board within
18-13 the scope of the administrator's responsibility, may not be
18-14 considered a fiduciary with respect to the pension system.
18-15 (b) Subject to the approval of the board, the administrator
18-16 may select any number of persons to assist the administrator.
18-17 (c) Both the administrator and those persons selected to
18-18 assist the administrator may be considered employees of the city.
18-19 Unless otherwise delegated to the administrator, the board shall
18-20 have the ultimate authority to retain or terminate the engagement
18-21 of any persons selected under this subsection.
18-22 PART 4. FINANCES
18-23 Sec. 4.01. PAYMENT OF ADMINISTRATIVE AND PROFESSIONAL
18-24 SERVICES FEES. (a) The board shall pay for all costs of
18-25 administration, including the cost of salaries of the
19-1 administrator, assistant administrator, and administrative staff,
19-2 office expenses, adequate office space and associated utilities,
19-3 and professional consultants or professional services, out of
19-4 income from the fund when it is actuarially determined that the
19-5 payments will not have an adverse effect on the payment of benefits
19-6 from any of the plans within the pension system and when in the
19-7 judgment of the board the costs are necessary. The city shall
19-8 provide for costs of administration if the board determines that
19-9 payment of the costs by the fund will have an adverse effect on the
19-10 payment of benefits from any plan within the pension system.
19-11 (b) Notwithstanding Subsection (a) of this section, on
19-12 request of the board, the city shall provide the administrator and
19-13 the administrator's staff with first class, Class "A" office space
19-14 at a city-owned office facility. The office space, as well as all
19-15 associated utilities, shall be provided at no expense to the
19-16 pension system.
19-17 (c) No expenditure for the costs of administration or
19-18 payment of any fee for professional consultants or professional
19-19 services may be made from the fund without the approval of the
19-20 board.
19-21 (d) After the board has developed an annual budget for the
19-22 pension system, the budget shall be presented to the city's budget
19-23 office for comment. The city's budget office may request the board
19-24 to reconsider the appropriation for any expenditure at a board
19-25 meeting, but the board shall make the final determination
20-1 concerning any appropriation.
20-2 Sec. 4.02. USE OF PUBLIC FUNDS. (a) The financial share of
20-3 the cost of the pension system to be paid out of the public
20-4 treasury shall be as provided by this section.
20-5 (b) Funds contributed by the city as its share of the amount
20-6 required to finance the payment of benefits under the pension
20-7 system may be used for no other purpose. The contributions shall
20-8 be annually appropriated by the city council and periodically paid
20-9 on the basis of a percentage of the total wages and salaries of the
20-10 members of the police and fire departments who are members of each
20-11 of the plans within the pension system. The amount of this
20-12 percentage and any change in it may be determined only by the
20-13 legislature or by a majority vote of the voters of the city.
20-14 (c) Funds shall be appropriated by the city to carry out
20-15 various other provisions contained in this article that authorize
20-16 expenditures in connection with the administration of the pension
20-17 system.
20-18 (d) The percentage of required contributions from the city
20-19 shall be in accordance with the following schedule and any increase
20-20 or decrease in city contributions shall occur automatically on any
20-21 increases or decreases in the members' contribution percentage:
20-22 City Contributions Member Contributions
20-23 28-1/2% 9%
20-24 27-1/2% 8-1/2%
20-25 26% 8%
21-1 24-1/2% 7-1/2%
21-2 23% 7%
21-3 21-1/2% 6-1/2%
21-4 (e) The city may elect to contribute more than that required
21-5 in the schedule provided by Subsection (d) of this section, except
21-6 that the city's contribution percentage may not exceed 28-1/2
21-7 percent unless approved as provided by Subsection (b) of this
21-8 section. Further, in no event may the city's contribution be less
21-9 than 21-1/2 percent unless approved as provided by Subsection (b).
21-10 (f) For purposes of Subsection (d) of this section, a
21-11 member's contribution rate, regardless of the plan of which the
21-12 person is a member, is considered to be the highest contribution
21-13 rate of any member of any pension plan within the pension system.
21-14 Sec. 4.03. MEMBER CONTRIBUTIONS. (a) Each Group A member
21-15 of the combined pension plan shall have 6.5 percent of base pay
21-16 deducted from the member's wages each month, and the contributions
21-17 shall be promptly remitted to the fund by the city.
21-18 (b) Each member shall continue to contribute to the fund
21-19 under the applicable terms of this section until the member leaves
21-20 active service with either department or until the beginning of the
21-21 member's 33rd year of pension service, at which time the member
21-22 shall cease making contributions.
21-23 (c) Each Group B member shall authorize the city to deduct
21-24 from the member's salary a percentage of the member's computation
21-25 pay. The authorization shall be in writing and filed with the
22-1 administrator.
22-2 (d) Each Group B member shall have 8.5 percent of the
22-3 member's computation pay deducted from the member's wages each
22-4 month, and the contributions shall be promptly remitted to the fund
22-5 by the city.
22-6 (e) The city shall determine the frequency of deductions for
22-7 member contributions, as long as there is at least one deduction
22-8 each month.
22-9 (f) Each Group B member shall contribute to the fund
22-10 beginning on the effective date of the member's Group B membership.
22-11 (g) The percentage of base pay contributed by Group A
22-12 members or computation pay contributed by Group B members may not
22-13 be altered except by an amendment pursuant to the terms of Section
22-14 4.02 of this article.
22-15 (h) The only purposes for which member contributions to the
22-16 fund and the investment income derived from member contributions
22-17 may be applied are:
22-18 (1) to the payment of benefits prescribed by this
22-19 article;
22-20 (2) to the payment of such administrative and
22-21 professional service costs of the pension system as are provided
22-22 for under Section 4.01 of this article or as may be within the
22-23 discretion of the board to incur; and
22-24 (3) to invest any surplus in accordance with Section
22-25 4.07 of this article.
23-1 Sec. 4.04. REFUND OF GROUP B MEMBER CONTRIBUTIONS. (a) A
23-2 Group B member who, either voluntarily or involuntarily, leaves
23-3 active service is entitled to a refund from the fund of the total
23-4 amount of the member's Plan B and Group B contributions, without
23-5 interest, that were paid beginning with the effective date of the
23-6 member's Group B membership or membership in Plan B. A refund
23-7 under this subsection results in an appropriate reduction of
23-8 pension service.
23-9 (b) Old plan or Plan A contributions paid to the fund by a
23-10 Group B member may not be refunded from the fund.
23-11 (c) A former Group B member desiring a refund of the Plan B
23-12 or Group B contributions the person made to the fund must make
23-13 written application for the refund with the administrator. In no
23-14 case may any refund be made to any former Group B member before the
23-15 expiration of 30 days after the date the person leaves active
23-16 service.
23-17 (d) Subject to Subsection (k) of this section, if a Group B
23-18 member with less than five years of pension service either
23-19 voluntarily or involuntarily leaves active service and fails to
23-20 make written application for a refund of contributions within three
23-21 years after the date the notice described by Subsection (j) of
23-22 this section is made by the board, the person forfeits the right to
23-23 withdraw any portion of the contribution, and the total amount of
23-24 Plan B and Group B contributions the person made will remain in the
23-25 fund. If the Group B member described by this subsection dies
24-1 after leaving active service, the person's heirs or, if there are
24-2 no heirs, the deceased member's estate may apply for the refund of
24-3 the person's contributions, resulting in an appropriate loss of
24-4 pension service if the application is filed with the administrator
24-5 within three years after the date the notice described by
24-6 Subsection (j) of this section is made by the board. Subject to
24-7 Subsection (k) of this section, if a Group B member's heirs or
24-8 estate fails to apply for a refund of the Group B member's
24-9 contributions within the three-year period described by this
24-10 subsection, the heirs and the estate forfeit any right to the
24-11 contributions, and the total amount of the Plan B and Group B
24-12 contributions made by the Group B member will remain in the fund.
24-13 (e) Subject to Subsection (k) of this section, if a Group B
24-14 member with five or more years of pension service either
24-15 voluntarily or involuntarily leaves active service and fails to
24-16 make written application for a refund of the person's Plan B and
24-17 Group B contributions within three years after the date the notice
24-18 described by Subsection (j) of this section is made by the board,
24-19 the person forfeits the right to withdraw any portion of the
24-20 contributions, and the total amount of the contributions will
24-21 remain in the fund. A Group B member described by this subsection
24-22 may, however, apply for benefits under this article or, if the
24-23 Group B member dies before the member is eligible to apply for
24-24 Group B benefits, the person's heirs or, if there are no heirs, the
24-25 deceased member's estate may apply for benefits in accordance with
25-1 the provisions of this article, or the heirs or the estate may
25-2 apply for a refund of the Group B member's Plan B and Group B
25-3 contributions, resulting in an appropriate loss of pension service.
25-4 Subject to Subsection (k) of this section, if a Group B member's
25-5 heirs or estate fails to apply for a refund of the Group B and Plan
25-6 B member's contributions within the three-year period described by
25-7 this subsection, the heirs and the estate forfeit any right to the
25-8 contributions, and the total amount of the Plan B and Group B
25-9 contributions made by the Group B member will remain in the fund.
25-10 (f) If a Group B member, other than a Group B member who
25-11 elects or has elected to receive a Group A benefit or a benefit
25-12 determined under the old plan or Plan A, with five or more years of
25-13 pension service either voluntarily or involuntarily leaves active
25-14 service, the person is entitled to:
25-15 (1) have the total amount of the person's Plan B and
25-16 Group B contributions to the fund refunded in accordance with
25-17 Subsection (a) of this section, which results in a loss of all of
25-18 the person's accrued pension service; or
25-19 (2) elect to take a refund of less than the total
25-20 amount of the person's Plan B and Group B contributions while
25-21 leaving a sufficient amount to retain pension service amounting to
25-22 five or more years.
25-23 (g) If a Group B member elects a refund of a portion of the
25-24 person's contributions under Subsection (f)(2) of this section, the
25-25 amount of the refund shall equal the total amount of the person's
26-1 Plan B and Group B annual contributions, without interest, for each
26-2 full year of pension service cancelled, computed based on the
26-3 earliest contributions made.
26-4 (h) A former Group B member who returns to active service is
26-5 permitted to repay to the fund any previously withdrawn employee
26-6 contributions and receive pension service as a Group B member if,
26-7 before again leaving active service, the Group B member repays
26-8 completely to the fund the previously withdrawn contributions with
26-9 interest, calculated at the interest rate from time to time used in
26-10 the pension system's actuarial assumptions, compounded annually, on
26-11 the previously withdrawn contributions for the period from the date
26-12 the contributions were withdrawn until the date the principal and
26-13 accrued interest are repaid in full.
26-14 (i) If a person becomes a Group B member under Section
26-15 5.01(b) of this article and again, either voluntarily or
26-16 involuntarily, leaves active service and makes application for a
26-17 refund of contributions under this section, the person is entitled
26-18 to a refund from the fund of the following:
26-19 (1) the amount of Group B contributions to the fund,
26-20 without interest, that were paid from the date the person returned
26-21 to active service following service or disability retirement; plus
26-22 (2) the excess, if any, of:
26-23 (A) the person's Plan B and Group B
26-24 contributions to the fund, without interest, that were paid from
26-25 the effective date of the person's original Group B or Plan B
27-1 membership in Plan B until the time the person originally left
27-2 active service because of the service or disability retirement;
27-3 less
27-4 (B) the total amount of benefits the person
27-5 received during service or disability retirement.
27-6 (j) On the 50th anniversary of the birth of a Group B member
27-7 described by Subsection (d) or (e) of this section, or on the
27-8 board's receipt of notice of the death of the Group B member, the
27-9 board shall, by registered or certified mail, return receipt
27-10 requested, attempt to notify the Group B member or the member's
27-11 heirs or estate, as applicable, of the status of their entitlement
27-12 to a refund of contributions from the fund.
27-13 (k) A Group B member described by Subsection (d) or (e) of
27-14 this section or the heirs or estate of the Group B member shall
27-15 have their right, title, interest, or claim to a refund of the
27-16 Group B member's contributions reinstated only on the board's grant
27-17 of their written request for a reinstatement and refund. The
27-18 board's decision shall be based on a uniform and nondiscriminatory
27-19 policy that it shall, from time to time, adopt.
27-20 Sec. 4.05. INVESTMENT COUNSELOR; QUALIFICATIONS. (a) The
27-21 board may employ from time to time an investment counselor to
27-22 advise the board in the investment and reinvestment of the assets
27-23 of the fund. Only the following are eligible for employment as an
27-24 investment counselor:
27-25 (1) any organization whose regular business functions
28-1 include rendering investment advisory services to pension and
28-2 retirement funds and that is registered as an "investment adviser"
28-3 under the Investment Advisers Act of 1940; and
28-4 (2) any bank, as defined in the Investment Advisers
28-5 Act of 1940, that maintains a trust department and offers
28-6 investment services to pension and retirement funds.
28-7 (b) The investment counselor shall receive such compensation
28-8 as may be determined by the board and as authorized by Section 4.01
28-9 of this article.
28-10 Sec. 4.06. INVESTMENT CUSTODY ACCOUNT OR MASTER TRUST
28-11 AGREEMENTS. (a) If the board contracts for investment management
28-12 services as authorized by Section 4.07 of this article, it may,
28-13 with respect to every such contract, also enter into an investment
28-14 custody account agreement, designating one or more banks as
28-15 custodian or master trustee for any assets of the fund.
28-16 (b) Under a custody account or master trust agreement, the
28-17 board shall require the designated bank to perform the duties and
28-18 assume the responsibilities of a custodian in relation to the
28-19 investment contract to which the custody account or master trust
28-20 agreement is established.
28-21 (c) The authority of the board to make a custody account or
28-22 master trust agreement is supplementary to its authority to make an
28-23 investment management contract. Allocation of assets to a custody
28-24 account or master trust shall be coordinated by the administrator,
28-25 as authorized by the board, and the bank designated as custodian
29-1 or master trustee for the assets.
29-2 (d) Any custody account or master trust agreement made by
29-3 the board shall establish such compensation for the custodian or
29-4 master trustee as may be determined by the board and as authorized
29-5 by Section 4.01 of this article.
29-6 Sec. 4.07. INVESTMENT OF SURPLUS. (a) If the board
29-7 determines that there is in the fund a surplus exceeding a
29-8 reasonably safe amount to take care of current demands on the
29-9 pension system, the board may invest or direct the investment of
29-10 the surplus for the sole benefit of the pension system.
29-11 (b) In making investments and supervising investments,
29-12 trustees shall exercise the judgment and care under the
29-13 circumstances then prevailing that persons of ordinary prudence,
29-14 discretion, and intelligence exercise in the management of their
29-15 own affairs, not in regard to speculation but in regard to probable
29-16 income from the assets as well as the probable safety of their
29-17 capital.
29-18 (c) The board has the ultimate responsibility for the
29-19 investment of funds. The board may exercise this responsibility
29-20 directly by purchasing or selling securities or other investments,
29-21 or it may exercise discretion in determining the procedure that it
29-22 deems most efficient and beneficial for the pension system in
29-23 carrying out the responsibility. The board may contract for
29-24 professional advisory services regarding the purchase or sale of
29-25 securities or other investments pursuant to Section 3.02 of this
30-1 article. A professional advisory service shall receive such
30-2 compensation as may be determined by the board in accordance with
30-3 Section 4.01 of this article.
30-4 (d) The board also has the authority to contract for
30-5 professional investment management services. Any contract that the
30-6 board makes with an investment manager shall set forth policies and
30-7 guidelines of the board for the use of standard rating services and
30-8 shall include specific criteria for determining the quality of
30-9 investments. A professional investment management service shall
30-10 receive such compensation as may be determined by the board in
30-11 accordance with Section 4.01 of this article.
30-12 (e) The board, in exercising its control, may at any time,
30-13 and shall at frequent intervals, monitor the investments made by
30-14 any investment manager and shall enforce full compliance with the
30-15 requirements of the board.
30-16 (f) If the board contracts for and receives professional
30-17 advisory services or professional investment management services,
30-18 the board has no greater liability under the terms of this section
30-19 than otherwise provided for under the Government Code or the Texas
30-20 Trust Code.
30-21 (g) No investment manager, other than a bank that has a
30-22 contract with the board to provide assistance in making
30-23 investments, shall be the custodian or master trustee of any of the
30-24 securities or other assets of the fund. Pursuant to Section 4.06
30-25 of this article, the board may designate a bank to serve as
31-1 custodian or master trustee, or subcustodian or submaster trustee,
31-2 to perform the customary duty of safekeeping as well as duties
31-3 incident to the execution of transactions. As the demands of the
31-4 pension system require, the board shall withdraw from the custodian
31-5 or master trustee money previously considered surplus in excess of
31-6 current cash and proceeds from the sale of investments. The money
31-7 may without distinction be used for the payment of benefits
31-8 pursuant to each of the plans within the pension system and for
31-9 other uses authorized by this article and approved by the board.
31-10 Sec. 4.08. ACTUARIAL VALUATION. (a) The board has the
31-11 authority to employ a qualified actuary to provide a continuing
31-12 observation of the operation of the pension system and to make
31-13 recommendations and give advice to the board about the condition of
31-14 the assets of the fund and the administration of the pension
31-15 system. A qualified actuary shall receive such compensation as is
31-16 determined by the board in accordance with Section 4.01 of this
31-17 article.
31-18 (b) A qualified actuary shall perform continuing actuarial
31-19 observation of the assets of the fund not less than once every two
31-20 years and make a report of the condition of the assets of the fund
31-21 to the board. The board may require more frequent reports.
31-22 Sec. 4.09. REWARDS, DONATIONS, AND CONTRIBUTIONS. Any
31-23 reward, donation, or contribution given to any member as payment or
31-24 gratuity for service performed in the line of duty shall be turned
31-25 over to the chief of the member's department, who shall, in turn,
32-1 forward the reward, donation, or contribution to the administrator
32-2 of the pension system for deposit in the fund.
32-3 PART 5. MEMBERSHIP
32-4 Sec. 5.01. MEMBERSHIP IN COMBINED PENSION PLAN. (a) The
32-5 membership of the combined pension plan is composed of the
32-6 following persons:
32-7 (1) Group A members:
32-8 (A) police officers or fire fighters who are on
32-9 active service and who as of February 28, 1973, had filed a written
32-10 statement with the pension system of their desire to participate in
32-11 either the old plan or Plan A;
32-12 (B) police officers and fire fighters who are on
32-13 active service, who were employed and receiving compensation from
32-14 the city as a police officer or a fire fighter before March 1,
32-15 1973, and who made contributions to either the old plan or Plan A
32-16 attributable to any period of employment before March 1, 1973; and
32-17 (C) except as provided by Subsection (b) of this
32-18 section, persons who elect to become Group A members under that
32-19 subsection; and
32-20 (2) Group B members:
32-21 (A) police officers and fire fighters who are on
32-22 active service, were formerly members of either the old plan or
32-23 Plan A, and as of April 30, 1973, had filed a written statement
32-24 with the pension system of their desire to participate in Plan B;
32-25 (B) police officers and fire fighters who are on
33-1 active service and who on or after March 1, 1973, and before
33-2 January 1, 1993, became members of Plan B;
33-3 (C) as a condition of employment, any police
33-4 office or fire fighter who is initially employed as a police
33-5 officer or a fire fighter by the city on or after January 1, 1993;
33-6 (D) as a condition of return to active service
33-7 and except as provided by Subsection (b) of this section, former
33-8 members of the old plan or Plan A who left active service before
33-9 March 1, 1973;
33-10 (E) as a condition of return to active service
33-11 and except as provided by Subsection (c) of this section, former
33-12 Group B members, whether or not the persons were ever a member of
33-13 the old plan, Plan A, or the combined pension plan;
33-14 (F) Group A members who are on active service
33-15 and meet the requirements and make an election under Subsection (d)
33-16 of this section; and
33-17 (G) persons who are on active service and make
33-18 an election under Subsection (e) of this section.
33-19 (b) A person who has received an old plan, Plan A, or
33-20 combined pension plan retirement or disability pension on or after
33-21 March 1, 1973, may, if the person returns to active service, elect
33-22 to participate as a Group A or Group B member by filing a written
33-23 application for membership with the administrator not later than 60
33-24 days after the date of return to service. As a condition of either
33-25 Group A or Group B membership, the board may require the person to
34-1 undergo a physical examination and be certified by the health
34-2 director as being capable of performing the duties to which the
34-3 person will be assigned. If the person does not elect to become a
34-4 Group A or Group B member, the person shall on leaving active
34-5 service receive a retirement pension in an amount that is
34-6 unadjusted for the period of return to active service if the person
34-7 meets all of the requirements of Group A membership.
34-8 (c) A Group B pensioner who was never a member of the old
34-9 plan, Plan A, or the combined pension plan before January 1, 1993,
34-10 may, if the person returns to active service, elect to become a
34-11 Group B member by filing a written application for membership with
34-12 the administrator not later than 60 days after the date of return
34-13 to service. As a condition of Group B membership, the board may
34-14 require the pensioner to undergo a physical examination and be
34-15 certified by the health director as being capable of performing the
34-16 duties to which the person will be assigned. If the person does
34-17 not elect to again become a Group B member, on leaving active
34-18 service, if the person meets all applicable requirements of this
34-19 article, the person shall receive benefits in an amount equal to
34-20 the amount the person was receiving as of the day before the day
34-21 the person returned to active service, and the person's base
34-22 pension shall be the same as the base pension originally computed
34-23 before the return to active service.
34-24 (d) A person who is on active service and is a Group A
34-25 member may irrevocably elect to become a Group B member by filing a
35-1 written application with the administrator. On and after the
35-2 filing of the application, the Group A member shall make
35-3 contributions to the fund at the rate applicable to Group B
35-4 members. However, the contributions do not, by themselves,
35-5 constitute Group B membership. Group B membership is contingent on
35-6 the satisfaction of the following conditions:
35-7 (1) The person must pay an amount to the fund equal to
35-8 the difference between the contributions the person would have made
35-9 to the fund had the person been a Group B member for the entire
35-10 period the person could otherwise have been a Group B member before
35-11 making application for membership and the contributions the person
35-12 actually made during that period, plus interest calculated in
35-13 accordance with procedures adopted by the board from time to time.
35-14 (2) The payments described by this subsection must be
35-15 completed before the date on which the person leaves active service
35-16 in accordance with procedures adopted by the board from time to
35-17 time. If the fund does not receive payment by that date, all
35-18 payments of this type, as well as those amounts paid by the person
35-19 after the person's application for Group B membership that are in
35-20 excess of the Group A member contribution rate, shall be returned
35-21 to the person, or in the event of the person's death to the
35-22 person's surviving spouse, children, or estate, as applicable.
35-23 (e) A person who is on active service and has never been a
35-24 member of any plan within the pension system may elect to become a
35-25 Group B member on a prospective basis by filing a written
36-1 application for membership with the administrator.
36-2 Sec. 5.02. EFFECTIVE DATE OF GROUP B MEMBERSHIP. (a) The
36-3 effective date of Group B membership for persons described by
36-4 Section 5.01(a)(2)(A) or (B) of this article is January 1, 1993.
36-5 (b) The effective date of Group B membership for a person
36-6 who becomes a Group B member pursuant to Section 5.01(a)(2)(C) of
36-7 this article is the day the person begins active service.
36-8 (c) The effective date of Group B membership for a person
36-9 who becomes a Group B member and is described by Section
36-10 5.01(a)(2)(D) of this article is the date of the person's return to
36-11 active service.
36-12 (d) The effective date of Group B membership for a former
36-13 Group B member who again becomes a Group B member and is described
36-14 by Section 5.01(a)(2)(E) of this article is the person's original
36-15 effective date of Group B membership, adjusted for any period that
36-16 the person was not on active service, if the person has not
36-17 withdrawn all contributions to the fund pursuant to Section 4.04 of
36-18 this article. If, however, the former Group B member has withdrawn
36-19 all contributions to the fund in accordance with Section 4.04 of
36-20 this article, and the person does not replace the previously
36-21 withdrawn contributions together with interest as provided by
36-22 Section 4.04(h) of this article, the effective date of the person's
36-23 membership is the date of return to active service.
36-24 (e) The effective date of membership for a person who
36-25 becomes a Group B member pursuant to Section 5.01(b) of this
37-1 article is the date written application for membership is filed
37-2 with the administrator. The effective date of membership for a
37-3 person who becomes a Group A member pursuant to Section 5.01(b) of
37-4 this article is the person's original effective date of membership
37-5 in the old plan, Plan A, or the combined pension plan, whichever is
37-6 applicable.
37-7 (f) The effective date of Group B membership for a Group B
37-8 pensioner who again becomes a Group B member pursuant to Section
37-9 5.01(c) of this article is the pensioner's original effective date
37-10 of membership, adjusted for any period the person was not on active
37-11 service.
37-12 (g) The effective date of Group B membership for a person
37-13 who joins this plan pursuant to Section 5.01(d) of this article is
37-14 March 1, 1973.
37-15 (h) A person described by Subsection (a), (c), (d), (e),
37-16 (f), or (g) of this section shall be given full pension service for
37-17 the time the person was a contributing member of the old plan, Plan
37-18 A, the combined pension plan, and Plan B, and the pension service
37-19 shall be counted as if it had been earned while a Group B member.
37-20 Neither the length of time persons described by Subsection (a),
37-21 (c), (d), (e), (f), or (g) of this section received a retirement or
37-22 disability pension, whether under the old plan, Plan A, the
37-23 combined pension plan or Plan B, nor the amount of any benefits
37-24 paid to the person shall have any effect on the pension service
37-25 earned by the person. No pension service may be earned while on
38-1 service retirement or disability retirement, or when the person was
38-2 not on active service. Except as provided by Sections 5.02 and
38-3 5.09 of this article, a person described by Subsection (a), (c),
38-4 (d), (e), (f), or (g) of this section may not be allowed to
38-5 contribute to the fund in order to receive pension service for the
38-6 time the person was not on active service, regardless of whether
38-7 the person was actually receiving a pension.
38-8 (i) The effective date of Group B membership for a person
38-9 who becomes a Group B member pursuant to Section 5.01(e) of this
38-10 article is the date on which written application for Group B
38-11 membership is filed with the administrator.
38-12 Sec. 5.03. TERMINATION OF GROUP B MEMBERSHIP. (a) Group B
38-13 membership, whether by voluntary application or as a condition of
38-14 employment, may be terminated by the Group B member only when the
38-15 person ceases to be on active service.
38-16 (b) Once a police officer or fire fighter becomes a Group B
38-17 member, whether by voluntary application or as a condition of
38-18 employment, the person may never transfer the membership to become
38-19 a Group A member and may never transfer the membership to any
38-20 pension plan for police officers and fire fighters that may be
38-21 created in the future unless the terms of that plan allow the
38-22 transfer.
38-23 (c) A Group B member or former Group B member who also was a
38-24 former contributing member of either the old plan or Plan A may
38-25 elect, when applying for either a retirement or disability pension
39-1 if applicable, to terminate membership and receive a Group A
39-2 retirement or disability pension under the applicable provisions of
39-3 this article, if the Group B member's application for retirement or
39-4 disability pension is granted by the board.
39-5 (d) If a Group B member or former Group B member described
39-6 by Subsection (c) of this section has elected and been granted a
39-7 Group A retirement or disability pension under the applicable
39-8 provisions of this article, the person is entitled to a
39-9 reimbursement from the fund. The reimbursement shall be equal to
39-10 that portion of the person's contributions to the fund, without
39-11 interest, from the person's effective date of Group B membership
39-12 until the time the person left active service, that is in excess of
39-13 the total amount the person would have contributed as a Group A
39-14 member or as a member of the old plan or Plan A for the same
39-15 period. A Group B member or former Group B member desiring a
39-16 refund of excess contributions must make written application for
39-17 the refund with the administrator within three years after the date
39-18 the person's Group A retirement or disability pension begins or
39-19 lose all right, title, interest, or claim to the refund until such
39-20 time as the board grants the refund in response to the person's
39-21 written request. The refund shall be made as soon as practicable
39-22 after written application is filed with the administrator.
39-23 Sec. 5.04. GROUP B MEMBERSHIP MAY BE DECLARED INACTIVE. (a)
39-24 If a Group B member with less than five years of pension service
39-25 either voluntarily or involuntarily leaves active service, the
40-1 person's Group B membership remains active as long as the person
40-2 has not withdrawn the person's contributions pursuant to Section
40-3 4.04 of this article.
40-4 (b) If a Group B member with five or more years of pension
40-5 service either voluntarily or involuntarily leaves active service,
40-6 the person's Group B membership remains active as long as the
40-7 person has not withdrawn the person's entire contributions pursuant
40-8 to Section 4.04 of this article.
40-9 (c) If the board receives valid information that a Group B
40-10 primary party has died, leaving one or more heirs, the board shall
40-11 attempt to notify the heirs of the procedures for applying and
40-12 qualifying for survivor benefits or a refund of the Group B primary
40-13 party's contributions, if applicable.
40-14 (d)(1) Subject to the provisions of Subdivision (5)(A) of
40-15 this subsection, the membership of a Group B member described by
40-16 Subsection (a) of this section shall be declared inactive and all
40-17 of the person's accrued pension service voided if the person does
40-18 not return to active service within three years after receiving the
40-19 notice described by Subdivision (4) of this subsection.
40-20 (2) Subject to the provisions of Subdivision (5)(B) of
40-21 this subsection, the membership of a Group B member described by
40-22 Subsection (b) of this section shall be declared inactive and all
40-23 of the person's accrued pension service voided if the person does
40-24 not file an application for a Group B retirement pension with the
40-25 board within three years after receiving the notice described by
41-1 Subdivision (4) of this subsection.
41-2 (3) Subject to the provisions of Subdivision (5)(C) of
41-3 this subsection, the heirs or estate of a deceased primary party
41-4 described by Subsection (c) of this section have no right, title,
41-5 interest, or claim for benefits or a refund of the primary party's
41-6 contributions to the fund, if the heirs or the estate, whichever is
41-7 applicable, fails to file an application for the primary party's
41-8 benefits or contributions within three years of receiving the
41-9 notice described by Subdivision (4) of this subsection.
41-10 (4) On the 50th anniversary of the birth of a Group B
41-11 member described by Subsection (a) or (b) of this section or on the
41-12 board's receipt of notice of the death of a primary party described
41-13 by Subsection (c) of this section, the board shall, by registered
41-14 or certified mail, return receipt requested, attempt to notify the
41-15 Group B member or the heirs or estate of a primary party, whichever
41-16 is applicable, of the status of their entitlement to benefits or
41-17 contributions from the fund.
41-18 (5)(A) A Group B member described by Subdivision (1)
41-19 of this subsection shall have the person's Group B membership and
41-20 pension service reinstated on the person's return to active
41-21 service.
41-22 (B) A Group B member described by Subdivision
41-23 (2) of this subsection shall have the person's Group B membership
41-24 and pension service reinstated on the person's return to active
41-25 service or on the grant of the person's written request to the
42-1 board of the person's desire to apply for a Group B service
42-2 retirement benefit.
42-3 (C) The heirs or estate of a primary party
42-4 described by Subdivision (3) of this subsection shall have their
42-5 right, title, interest, or claim to the primary party's refund of
42-6 contributions reinstated on the board's grant of their written
42-7 request for the reinstatement and refund. The board's decision
42-8 shall be based on a uniform and nondiscriminatory policy that it
42-9 shall, from time to time, adopt.
42-10 Sec. 5.05. PENSION SERVICE. (a) A member shall receive
42-11 pension service for the time, computed in years and fractional
42-12 years for months and days, completed as a member of the combined
42-13 pension plan, the old plan, Plan A, or Plan B.
42-14 (b) A member who elects to pay contributions for time spent
42-15 on military leave, authorized leave of absence, or for an
42-16 apprenticeship or probationary period, or for any other reason
42-17 provided for by this article may not receive any pension service
42-18 for any part of the time for which the member is contributing until
42-19 the entire amount due the fund for the entire period involved has
42-20 been paid as if the service were performed as a member.
42-21 (c) If a member, either voluntarily or involuntarily, leaves
42-22 active service and later returns to active service, the person
42-23 shall receive full pension service for the period of the person's
42-24 original membership, if the person did not withdraw the person's
42-25 contributions pursuant to Section 4.04 of this article. If,
43-1 however, the member had withdrawn the person's contributions and
43-2 does not replace the previously withdrawn contributions with
43-3 interest as required by Section 4.04 of this article, the person
43-4 forfeits any pension service accrued while a member before the date
43-5 of the person's return to active service.
43-6 Sec. 5.06. VESTED RIGHTS OF GROUP B MEMBERS. (a) If a
43-7 Group B member accrues five years of pension service, whether the
43-8 pension service is accrued while a Group B member or while a member
43-9 of the old plan, Plan B, Plan A, the combined pension plan, or a
43-10 combination of plans, the Group B member has vested rights and is
43-11 eligible to apply for a retirement pension in accordance with
43-12 Section 6.02 of this article.
43-13 (b) If a Group B member has vested rights as determined
43-14 under Subsection (a) of this section, and the Group B member either
43-15 voluntarily or involuntarily leaves active service before becoming
43-16 eligible to receive any benefits under Section 6.02 of this
43-17 article, the person shall be provided with a letter approved by the
43-18 board and signed by the administrator that, barring clerical error,
43-19 miscalculation, or other error, is incontestable and shall state:
43-20 (1) the total amount of pension service the Group B
43-21 member had accrued until the date the person left active service;
43-22 (2) the total amount of contributions the Group B
43-23 member made under the terms of Plan B and the combined pension
43-24 plan; and
43-25 (3) the monthly retirement pension due the Group B
44-1 member at age 50.
44-2 Sec. 5.07. PURCHASE OF PENSION SERVICE BY GROUP B MEMBERS.
44-3 (a) A Group B member who has previously elected not to become a
44-4 contributing member of the old plan and Plan A may purchase pension
44-5 service from the fund for that period during which the member
44-6 performed active service with either department until the effective
44-7 date of the member's Group B membership. No pension service may be
44-8 given to the Group B member until payment is made for the entire
44-9 period described by this subsection, and no pension service may be
44-10 purchased for any period that is of greater or lesser length.
44-11 (b) Payment for the purchase of pension service under this
44-12 section shall be equal to the amount of contributions the Group B
44-13 member would have made to the old plan and Plan A had the member
44-14 been a contributing member of either of the plans during the period
44-15 described by Subsection (a) of this section, plus interest
44-16 calculated in accordance with procedures adopted by the board from
44-17 time to time.
44-18 (c) A Group B member may repay the fund all employee
44-19 contributions withdrawn by an alternate payee pursuant to the terms
44-20 of a qualified domestic relations order and receive pension service
44-21 as a Group B member attributable to the contributions, if the Group
44-22 B member repays completely to the fund the withdrawn contributions
44-23 with interest, calculated at the interest rate from time to time
44-24 used in the pension system's actuarial assumptions, compounded
44-25 annually, on the contributions for the period from the date the
45-1 contributions were withdrawn until the date the principal and
45-2 accrued interest are repaid in full.
45-3 (d) No pension service may be given to a Group B member
45-4 under Subsection (b) or (c) of this section until the entire amount
45-5 described by Subsection (b) or (c) has been paid to the fund. If
45-6 payment of the entire amount is not completed by the date the Group
45-7 B member leaves active service, all partial payments shall be
45-8 returned to the Group B member or, if the Group B member has died,
45-9 to the member's heirs or estate, whichever is applicable.
45-10 Sec. 5.08. MEMBERS IN ARMED SERVICES. (a) A member may
45-11 receive pension service for time spent away from either department
45-12 while on active duty in any of the military services of the United
45-13 States, including service in any state or National Guard or any
45-14 reserve component of any military service in accordance with the
45-15 military leave provided by this section.
45-16 (b) Any member inducted into the armed forces as a draftee
45-17 must reapply for reinstatement with the member's prior department
45-18 within 90 days after the date of honorable discharge or separation
45-19 from military service. On such reinstatement, the member may elect
45-20 to repay the member's contributions at any time under the procedure
45-21 described by Subsection (h) of this section.
45-22 (c) Any member enlisting in the armed forces, other than as
45-23 a reservist, whose military service between June 24, 1948, and
45-24 August 1, 1961, did not exceed four years, or whose military
45-25 service began after August 1, 1961, and did not exceed five years
46-1 if the fifth year is at the request and convenience of the federal
46-2 government, and who was honorably discharged or separated from
46-3 service is guaranteed, under the provisions of coverage described
46-4 by this subsection, the right to restore pension service under the
46-5 procedure described by Subsection (h) of this section. The four-
46-6 and five-year leaves permitted by this subsection apply to all of a
46-7 member's employment with the city. An enlistment plus any number
46-8 of reenlistments may not exceed the four- or five-year limitations
46-9 stated above.
46-10 (d) Any member ordered to an initial period of active duty
46-11 for training in a reserve component of not less than 12 consecutive
46-12 weeks is entitled to restore pension service for the period absent
46-13 from the member's department, if the member returns to the member's
46-14 department within 31 days after the date of honorable discharge or
46-15 separation from duty in the reserve unit.
46-16 (e) Any member serving in a reserve component, voluntarily
46-17 or involuntarily, may remain on military leave for four years,
46-18 which may be extended for periods when the President of the United
46-19 States calls the reserve unit into active duty. The service
46-20 extension for members joining a reserve unit voluntarily is
46-21 available only when the additional service is at the request and
46-22 for the convenience of the federal government. Any member
46-23 returning to the member's department under this provision must
46-24 report back to work within the time specified to the member by the
46-25 department, giving due regard for travel time and hospitalization,
47-1 if required. Any inquiry into the validity of orders extending
47-2 terms of reservist active duty for training will be referred to the
47-3 Department of Labor's Office of Veterans' Employment and Training.
47-4 (f) Any member on military leave for short periods of
47-5 authorized training, such as two-week encampments, are treated as
47-6 on leave with pay for up to 15 working days in any one calendar
47-7 year, during which time pension service automatically accrues.
47-8 Leave in excess of 15 days will be treated as described by
47-9 Subsection (e) of this section.
47-10 (g) With the exception of those circumstances described by
47-11 Subsection (f) of this section, the city is not required to match
47-12 contributions made by members under the terms of this section.
47-13 (h) Repayment shall be made in accordance with the procedure
47-14 set forth in any uniform and nondiscriminatory military leave and
47-15 payment procedure adopted by the board and in effect from time to
47-16 time.
47-17 Sec. 5.09. NONMILITARY LEAVE OF ABSENCE. (a) An authorized
47-18 leave of absence means any leave of absence that meets the
47-19 following conditions:
47-20 (1) the leave of absence must be an official leave
47-21 authorized by the chief of either department; and
47-22 (2) the leave of absence must be for the purpose of
47-23 benefitting the department.
47-24 (b) A member may receive pension service for time spent away
47-25 from either department on an authorized nonmilitary leave of
48-1 absence. To receive pension service for a nonmilitary leave of
48-2 absence, the following conditions must be met:
48-3 (1) before the date the member's leave of absence is
48-4 to begin, the member must file with the administrator a written
48-5 application to pay any contributions that will accrue during the
48-6 member's leave as set forth in Subdivisions (2) and (3) of this
48-7 subsection;
48-8 (2) the member must agree to pay into the fund the
48-9 amount the member would have contributed had the member remained on
48-10 active service, the amount to be based on the computation pay the
48-11 member would have normally received had there been no change in the
48-12 member's position during the period of leave;
48-13 (3) the member must agree to pay into the fund an
48-14 amount equal to the amount the city would have contributed computed
48-15 on the basis of total wages and salary the member would normally
48-16 have received had the member remained on active service and had
48-17 there been no change in the member's position during the period of
48-18 leave, the payment to represent the total amount that would have
48-19 been contributed by the city on the member's behalf had the member
48-20 remained on active service and paid in addition to the amount the
48-21 member must contribute as set forth in Subdivision (2) of this
48-22 subsection;
48-23 (4) if the city's contribution rate changes as
48-24 provided by Section 4.02 of this article, the percentage of total
48-25 wages and salary required to be paid by the member also changes, so
49-1 that the amount paid by the member in accordance with this section
49-2 always equals the amount that would have been contributed by the
49-3 city on the member's behalf had the member remained on active
49-4 service, and in no event is the city required to pay into the fund
49-5 any contributions that would have been made on behalf of a member
49-6 had the member remained on active service during the period of an
49-7 authorized leave of absence;
49-8 (5) payment of contributions as set forth in
49-9 Subdivisions (3) and (4) of this subsection shall begin coincident
49-10 with the beginning of the applicable leave of absence and shall be
49-11 made monthly to the administrator for deposit in the fund, unless
49-12 the board authorizes the deferment of the payments until the member
49-13 has returned to active service; no pension service will be granted
49-14 to the member until the member returns to active service, and if
49-15 the member does not return to active service, the contributions
49-16 paid will be returned to the member except as provided by
49-17 Subsection (c) of this section; if the board authorizes the
49-18 deferment of the payments, the payment may be made either by
49-19 authorizing the deduction of pro rata portions of the total amount
49-20 due from the member's salary over a one-year period, or by cash
49-21 payment made to the administrator within one year after the date of
49-22 the member's return to active service, except that the board may
49-23 approve a longer period for making the payment if it finds that the
49-24 one-year limit would work a financial hardship on the member;
49-25 (6) the member must return to active service within 90
50-1 days after the date the member's authorized leave expires, or if
50-2 the member's authorized leave does not have a fixed expiration
50-3 date, within a reasonable time to be determined by the board, or
50-4 the member forfeits the right to pay for the leave time; and
50-5 (7) no member may ever be allowed to pay leave of
50-6 absence contributions under this section for any time in excess of
50-7 the time actually spent on an authorized leave of absence.
50-8 (c)(1) If a member of the combined pension plan is disabled
50-9 or dies while on an authorized leave of absence, the member or the
50-10 member's heirs are entitled to either a refund of contributions
50-11 pursuant to Section 4.04 of this article or the member or the
50-12 member's qualified survivors are entitled to benefits under the
50-13 provisions of this article, to the extent applicable.
50-14 (2) A member who is disabled or dies while on leave of
50-15 absence pursuant to this section may receive no pension service for
50-16 any portion of the period of the leave; except that if the member
50-17 had, before the disability or death, paid for contributions while
50-18 on leave of absence in accordance with Subsection (a) of this
50-19 section, the member shall receive pension service for the leave
50-20 time actually paid for at the time of the member's disability or
50-21 death, but the member may receive no pension service for any
50-22 portion of the period of leave for which contributions have not
50-23 been paid to the administrator for deposit in the fund.
50-24 PART 6. BENEFITS
50-25 Sec. 6.01. GROUP A RETIREMENT PENSION. (a) A Group A
51-1 member or former Group A member must have 20 years of pension
51-2 service to be eligible for a Group A retirement pension under this
51-3 section. A member's application under this section, once made, is
51-4 irrevocable. If a Group A pensioner returns to active service as a
51-5 police officer or fire fighter with the city, the person's Group A
51-6 retirement pension ceases until the time that the person again
51-7 leaves active service with the city.
51-8 (b) At age 50 a Group A member or former Group A member is
51-9 eligible to begin drawing a monthly Group A retirement pension. A
51-10 monthly Group A retirement pension equals 50 percent of the base
51-11 pay per month, plus 50 percent of any longevity pay the Group A
51-12 member was receiving at the time the member left active service.
51-13 Although the number of years used in the computation of longevity
51-14 pay remains fixed at the time a Group A member or former Group A
51-15 member leaves active service, the monthly rate of longevity pay
51-16 used in this computation is subject to change in the event of an
51-17 amendment to the state law governing longevity pay. The monthly
51-18 Group A retirement pension benefits of Group A pensioners shall be
51-19 adjusted from time to time in a like manner.
51-20 (c) In addition to the amount computed under Subsection (b)
51-21 of this section, at age 50, a Group A member is eligible to begin
51-22 drawing an annual Group A retirement pension. An annual retirement
51-23 pension equals 50 percent of the difference between the annualized
51-24 amount of city service incentive pay and longevity pay. In
51-25 determining city service incentive pay and longevity pay for
52-1 purposes of this element of the annual Group A retirement pension
52-2 only the following apply:
52-3 (1) City service incentive pay is calculated in the
52-4 same manner as the city service incentive pay is calculated for
52-5 members currently on active service except:
52-6 (A) the annual salary of a Group A pensioner
52-7 used in calculating city service incentive pay is determined on the
52-8 basis of the last city civil service rank held by the Group A
52-9 pensioner when the person was on active service; however, if the
52-10 rank no longer exists, its closest equivalent shall be determined
52-11 by the board and applied; and
52-12 (B) the annual salary of a Group A pensioner as
52-13 determined under Paragraph (A) of this subdivision shall be that
52-14 amount in effect on the last day of September of each year the
52-15 Group A pensioner's annual retirement pension is calculated.
52-16 (2) Longevity pay shall be calculated as 12 times the
52-17 amount of monthly longevity pay the Group A pensioner was receiving
52-18 at the time such person left active service, except that the
52-19 monthly rate of longevity pay used in this computation is subject
52-20 to change if an amendment to state law governing longevity pay is
52-21 enacted.
52-22 (d) The element of annual retirement pension computed under
52-23 Subsection (c)(1) of this section is subject to the following
52-24 limitations:
52-25 (1) it shall be prorated for the year in which the
53-1 pensioner begins receiving a retirement pension;
53-2 (2) it shall be payable only to those Group A
53-3 pensioners who as a Group A member on active service received city
53-4 service incentive pay and who receive a monthly Group A retirement
53-5 pension as determined under Subsection (b) of this section on the
53-6 last day of September of each year; and
53-7 (3) it shall be paid to Group A pensioners as long as
53-8 the city continues to pay city service incentive pay to Group A
53-9 members on active service.
53-10 (4) Notwithstanding Subsections (b) and (c) of this
53-11 section, a Group A member with a minimum of 20 years of pension
53-12 service may apply for an actuarially reduced retirement pension to
53-13 begin no earlier than when the member attains age 45 but before the
53-14 member attains age 50. The Group A member or a former Group A
53-15 member who has made an application may receive a retirement pension
53-16 calculated under Subsections (b) and (c) of this section reduced by
53-17 two-thirds of one percent per month for each whole calendar month
53-18 the benefit is payable before the month in which the Group A member
53-19 or former Group A member attains age 50.
53-20 (e) At age 55 a Group A member or former Group A member is
53-21 eligible to begin drawing a monthly retirement pension computed as
53-22 follows:
53-23 (1)(A) at the rate of three percent of base pay for
53-24 each year, prorated for fractional years, of pension service, with
53-25 a maximum of 32 years of pension service, or 96 percent of base
54-1 pay; or
54-2 (B) if the Group A member or former Group A
54-3 member had 34 or more years of pension service as of April 30,
54-4 1990, at the rate calculated under the terms of the combined
54-5 pension plan in effect on April 30, 1990, if greater than the
54-6 amount calculated under Paragraph (A) of this subdivision; plus
54-7 (2) one-half of the longevity pay the Group A member
54-8 or former Group A member was receiving at the time the person left
54-9 active service; plus
54-10 (3) 1/24th, without subsequent adjustment, of the
54-11 annualized amount of the city service incentive pay the Group A
54-12 member or former Group A member received at the time the person
54-13 left active service.
54-14 (f) Notwithstanding Subsection (e) of this section, Group A
54-15 pensioners payments under Subsection (e)(3) of this section are
54-16 contingent on the city's continuing payment of city service
54-17 incentive pay to Group A members on active service. For purposes
54-18 of this section, base pay and longevity pay are the amounts in
54-19 effect on the date benefits are to begin, without subsequent
54-20 adjustment.
54-21 (g) Notwithstanding Subsection (e) of this section, a Group
54-22 A member or former Group A member with 20 or more years of pension
54-23 service may apply for an actuarially reduced Group A retirement
54-24 pension beginning on or after the date the Group A member or former
54-25 Group A member attains age 50 but before the person attains age 55.
55-1 The Group A member or former Group A member may receive a
55-2 retirement pension calculated under Subsection (e) of this section
55-3 reduced by two-thirds of one percent per month for each whole
55-4 calendar month the benefit is payable before the month in which the
55-5 Group A member or former Group A member attains age 55.
55-6 (h) Entitlement to the Group A retirement pension described
55-7 by this section is subject to the following conditions:
55-8 (1) written application must be filed with the
55-9 administrator;
55-10 (2) the grant of a Group A retirement pension by the
55-11 board must be made at a meeting of the board held during the month
55-12 the Group A retirement pension is to become effective, or as soon
55-13 after that as possible; and
55-14 (3) the Group A member must no longer be on active
55-15 service.
55-16 Sec. 6.02. GROUP B RETIREMENT PENSION. (a) A Group B
55-17 member or former Group B member who has accrued five or more years
55-18 of pension service may make application for a Group B retirement
55-19 pension on reaching 50 years of age, or for an actuarially reduced
55-20 Group B retirement pension on reaching 45 years of age.
55-21 (b) A former Group B member or Group B pensioner who
55-22 withdrew any of the person's Plan B or Group B contributions and
55-23 who on again becoming a Group B member does not replace such
55-24 previously withdrawn contributions with interest thereon as
55-25 provided by Section 4.04 of this article must earn at least five
56-1 years of pension service after the time the person returns to
56-2 active service to be eligible for a Group B retirement pension.
56-3 (c) Entitlement to a Group B retirement pension as described
56-4 by Subsection (a) or (b) of this section is subject to the
56-5 following conditions:
56-6 (1) written application must be filed with the
56-7 administrator;
56-8 (2) the grant of the Group B retirement pension by the
56-9 board must be made at a meeting of the board held during the month
56-10 the Group B retirement pension is to become effective, or as soon
56-11 after that as possible; and
56-12 (3) the Group B member may no longer be on active
56-13 service.
56-14 (d) A Group B retirement pension shall be computed at the
56-15 rate of three percent of the average computation pay determined
56-16 over the 60 consecutive months in which the Group B member received
56-17 the highest computation pay, multiplied by the number of years,
56-18 prorated for fractional years, of pension service to a maximum of
56-19 32 years of pension service or 96 percent of the computation pay as
56-20 determined under this subsection.
56-21 (e) However, a Group B member or former Group B member with
56-22 34 or more years of pension service as of April 30, 1990, shall
56-23 receive the greater of a Group B retirement pension calculated
56-24 under the terms of Plan B as in effect on that date or a Group B
56-25 retirement pension calculated pursuant to Subsection (d) of this
57-1 section.
57-2 (f) A Group B member, or any former Group B member who was a
57-3 Group B member as of any date after April 30, 1990, may apply for
57-4 an actuarially reduced Group B retirement pension beginning no
57-5 earlier than the person's 45th birthday but before the person's
57-6 50th birthday. A Group B member or former Group B member who
57-7 applies for an actuarially reduced Group B retirement pension
57-8 beginning on or after the person's 45th birthday shall receive a
57-9 pension calculated under Subsection (d) of this section, reduced by
57-10 two-thirds of one percent per month for each whole calendar month
57-11 the pension would be payable before the month in which the Group B
57-12 member or former Group B member attains age 50.
57-13 (g) In no event may any Group B member or former Group B
57-14 member who was at any time a Group A member or a contributing
57-15 member of the old plan or Plan A and who satisfied the applicable
57-16 length-of-service requirements of the applicable plan receive a
57-17 retirement pension in an amount less than the amount the person
57-18 would be entitled to receive as a Group A member.
57-19 (h) A former Group B member who was not a Group B member on
57-20 or after May 1, 1990, shall receive a retirement pension calculated
57-21 under the applicable provisions of this plan as in effect on the
57-22 date the person left active service.
57-23 (i) A former Group B member who was not a Group B member
57-24 after April 30, 1990, may request an actuarially reduced retirement
57-25 pension beginning no earlier than the person's 45th birthday but
58-1 before the person's 50th birthday. A former Group B member
58-2 described by this subsection shall receive a retirement pension
58-3 under the applicable provisions of Plan B as in effect on the date
58-4 the person left active service, reduced by two-thirds of one
58-5 percent per month for each whole calendar month the pension would
58-6 be payable before the month in which the former Group B member
58-7 attains age 50.
58-8 Sec. 6.03. DISABILITY BENEFITS. (a) If a member becomes
58-9 disabled to the extent that the member cannot perform the member's
58-10 duties with the member's department, the member may apply for a
58-11 disability pension, in accordance with any uniform and
58-12 nondiscriminatory disability application procedure adopted by the
58-13 board and in effect from time to time.
58-14 (b) No disability pension may be paid until a member has
58-15 been prevented, by a disability, from performing the member's
58-16 duties with the member's department for a period of at least 90
58-17 consecutive calendar days, and no disability benefits may be paid
58-18 for any portion of the 90-day period. The board may waive the
58-19 waiting period on request by the member, if the request is
58-20 supported by credible evidence acceptable to the board that the
58-21 disability is wholly and immediately incapacitating. The board may
58-22 request from the city such information, including any employment
58-23 application and any related physical test and medical examination
58-24 records, as may be desirable in evaluating the disability
58-25 application.
59-1 (c) No disability pension may be paid for any disability if
59-2 the disability was a result of the member's commission of a felony,
59-3 except that this restriction may be waived by the board if it
59-4 believes that facts exist that would mitigate the denial of the
59-5 member's application for a disability pension.
59-6 (d) No disability pension may be paid to a member for any
59-7 disability if the disability was a result of an intentionally
59-8 self-inflicted injury or a chronic illness resulting from an
59-9 addiction by the member through a protracted course of noncoerced
59-10 indulgence in alcohol, narcotics, or other substance abuse.
59-11 (e) No disability pension may be paid until the health
59-12 director has either examined the member or reviewed reports of the
59-13 member's physical or mental condition submitted to the health
59-14 director by competent outside medical practitioners.
59-15 (f) No disability pension may be paid if the chief of the
59-16 member's department is able to provide the member with duties that
59-17 are within the member's physical or mental capabilities, as long as
59-18 the board agrees that the duties are within the member's
59-19 capabilities, even though the duties are different from the duties
59-20 the member performed before the disability.
59-21 (g) Written application for a disability pension must be
59-22 filed with the administrator. The application must be accompanied
59-23 by a recommendation from the health director. This recommendation
59-24 shall contain a statement indicating whether the member became
59-25 disabled while the member was on duty or off duty and whether the
60-1 disability was service-connected or nonservice-connected.
60-2 (h) The recommendation from the health director shall also
60-3 contain a statement indicating the date the member became disabled
60-4 or indicating that the disability prevented the member from
60-5 performing the member's duties for a period of not less than 90
60-6 days.
60-7 (i) An application for disability retirement will be
60-8 considered at the meeting of the board held during the month the
60-9 disability pension is to become effective or as soon after the
60-10 effective date of the disability pension as possible. No
60-11 disability pension may be paid, however, until the board has
60-12 approved the application.
60-13 (j) If a person who became a Group B member pursuant to
60-14 Section 5.01(a)(2)(E) of this article withdraws the person's
60-15 contributions pursuant to Section 4.04 of this article and leaves
60-16 active service with vested rights in the old plan, Plan A, or the
60-17 combined pension plan in existence before January 1, 1993, the
60-18 Group B member must, on return to active service, earn five years
60-19 of pension service after the date of return to receive a Group B
60-20 disability pension. If the Group B member is disabled before
60-21 earning five years of pension service following a return to active
60-22 service, the person may receive only a Group A disability pension.
60-23 Sec. 6.04. CALCULATION OF GROUP A DISABILITY PENSION. (a)
60-24 If a Group A member's application for a Group A disability pension
60-25 has been approved by the board pursuant to Section 6.03 of this
61-1 article, including any procedures adopted under that section, the
61-2 Group A member may elect to receive a Group A disability pension
61-3 calculated in the same manner as the benefit under Sections 6.01(b)
61-4 and (c) of this article or under Subsection (b) of this section.
61-5 An election under this section, once made, is irrevocable.
61-6 (b) When a Group A member elects to accept a Group A
61-7 disability pension under this section, it shall be calculated as
61-8 provided by Subsections (c), (d), and (e) of this section.
61-9 (c) If a Group A member's disability results during the
61-10 performance of duties with either department, the member is
61-11 entitled to a monthly disability pension calculated as follows:
61-12 (1) at a rate of three percent of base pay for each
61-13 year, prorated for fractional years, of pension service, with a
61-14 minimum of 20 years of pension service being deemed credited and a
61-15 maximum of 32 years of pension service being credited, or 96
61-16 percent of base pay or, if the Group A member had 34 or more years
61-17 of pension service as of May 1, 1990, the member shall receive the
61-18 greater of a disability pension calculated under the terms of the
61-19 combined pension plan in effect on that date or as calculated under
61-20 this subdivision; plus
61-21 (2) one-half of the longevity pay the Group A member
61-22 was receiving at the time the member left active service; plus
61-23 (3) 1/24th, without subsequent adjustment, of the
61-24 annualized amount of city service incentive pay the Group A member
61-25 received at the time the member left active service.
62-1 (d) Notwithstanding Subsection (c) of this section, the
62-2 amount of a disability retirement benefit of a Group A pensioner
62-3 who is on disability retirement under Subsection (c)(3) of this
62-4 section is contingent on the city's continuing payment of city
62-5 service incentive pay to Group A members on active service. For
62-6 purposes of this subsection, base pay and longevity pay are the
62-7 amounts in effect on the date the benefits are to begin, without
62-8 subsequent adjustment.
62-9 (e) If a Group A member's disability does not result during
62-10 the performance of the member's duties with either department, the
62-11 member is entitled to a monthly disability pension calculated:
62-12 (1) at a rate of three percent of base pay for each
62-13 year, prorated for fractional years, of pension service, with a
62-14 maximum of 32 years of pension service, or 96 percent of base pay,
62-15 except that if the Group A member had 34 or more years of pension
62-16 service as of April 30, 1990, the member shall receive the greater
62-17 of a disability pension calculated under the combined pension plan
62-18 in effect on that date or as calculated under this subdivision;
62-19 plus
62-20 (2) one-half of the longevity pay the Group A member
62-21 was receiving at the time the member left active service; plus
62-22 (3) 1/24th of the annualized amount of city service
62-23 incentive pay the Group A member received at the time the member
62-24 left active service, without regard to any subsequent adjustment.
62-25 (f) Payments of the amounts described by Subsection (e)(3)
63-1 of this section are contingent on the city's continuing payment of
63-2 city service incentive pay to Group A members on active service.
63-3 (g) For purposes of Subsection (e)(3) of this section, base
63-4 pay and longevity pay are the amounts in effect on the date the
63-5 benefits are to begin, without subsequent adjustment.
63-6 Sec. 6.05. CALCULATION OF GROUP B DISABILITY BENEFITS. (a)
63-7 If a Group B member's application for a Group B disability pension
63-8 has been approved by the board pursuant to Section 6.03 of this
63-9 article, including any procedures adopted under that section, the
63-10 Group B member may, depending on the circumstances, elect to
63-11 receive a Group B disability pension calculated in the manner
63-12 described by Subsection (b) or (c) of this section.
63-13 (b) If a Group B member becomes disabled during the
63-14 performance of the member's duties with either department, the
63-15 member is entitled to a monthly disability pension calculated at a
63-16 rate of three percent of the average computation pay determined
63-17 over the 60 consecutive months in which the Group B member received
63-18 the member's highest computation pay multiplied by the number of
63-19 years, prorated for fractional years, of the member's pension
63-20 service with a minimum of 20 years of pension service being deemed
63-21 credited, or 60 percent of average computation pay determined over
63-22 the 60 consecutive months in which the Group B member received the
63-23 member's highest computation pay, except that if the Group B
63-24 member has less than five years of pension service, the Group B
63-25 member's average computation pay will be computed based on the
64-1 member's entire pension service. If a Group B member had 34 or
64-2 more years of pension service as of April 30, 1990, the Group B
64-3 member is entitled to receive the greater of a Group B disability
64-4 pension calculated under the terms of Plan B in effect on that date
64-5 or calculated pursuant to this subsection.
64-6 (c) The Group B disability pension for any Group B member
64-7 whose disability does not result during the performance of the
64-8 member's duties with either department shall be computed at a rate
64-9 of three percent of the average computation pay determined over the
64-10 60 consecutive months in which the Group B member received the
64-11 member's highest computation pay multiplied by the number of years,
64-12 prorated for fractional years, of the member's pension service,
64-13 except that any partial year of pension service for the first 20
64-14 years of pension service shall be counted as a full year of pension
64-15 service. If the Group B member has less than five years of pension
64-16 service, the Group B member's average computation pay will be
64-17 computed based on the member's entire pension service, and if a
64-18 Group B member had 34 or more years of pension service as of April
64-19 30, 1990, the Group B member is entitled to receive the greater of
64-20 a disability pension calculated under the terms of Plan B in effect
64-21 on that date or calculated pursuant to this subsection.
64-22 (d) The board shall require any Group B pensioner who became
64-23 a member of Plan B or the combined pension plan on or after May 1,
64-24 1990, and who is receiving a Group B disability pension in
64-25 accordance with Subsection (b) or (c) of this section to provide
65-1 the board annually, on or before May 1 of each year, with a true
65-2 and complete copy of those portions of the person's federal and, if
65-3 applicable, state tax return, including appropriate schedules, for
65-4 the previous calendar year that indicate the person's occupations
65-5 and earned income for the previous calendar year. However, the
65-6 board may waive the May 1 date in lieu of one later in the same
65-7 calendar year if the Group B pensioner provides the board with a
65-8 true and complete copy of a grant of an extension of time for the
65-9 filing of the person's tax return from the appropriate governmental
65-10 agency or a true and complete copy of an extension request that
65-11 results in any automatic extension. If the Group B pensioner is or
65-12 has been receiving earned income from one or more employments,
65-13 including self-employment, during the preceding year, the board
65-14 shall reduce future disability pension payments to the Group B
65-15 pensioner in accordance with the following formula: $1 for each $1
65-16 that the sum of "a" + "b" is greater than "c," where "a" is the
65-17 earned income of the Group B pensioner attributable to the previous
65-18 calendar year from the person's employments, "b" is the total
65-19 amount of Group B disability pension received by the Group B
65-20 pensioner the previous calendar year, and "c" is the annualized
65-21 amount of the average computation pay the Group B pensioner
65-22 received as of the date the person left active service. For
65-23 purposes of this computation, the average computation pay shall be
65-24 deemed increased at a rate of four percent simple interest, without
65-25 compounding during the year, as of each January 1 that the Group B
66-1 pensioner receives a Group B disability pension.
66-2 (e) For purposes of Subsection (d) of this section, the
66-3 phrase "earned income" means income earned by a Group B pensioner
66-4 in the form of wages, salaries, commissions, fees, tips,
66-5 unemployment benefits, and other amounts received by virtue of
66-6 employment or self-employment but paid before any deduction for
66-7 taxes or insurance. In addition, earned income also includes those
66-8 amounts contributed on a before-tax basis to any retirement plan or
66-9 employee health and welfare benefit plan.
66-10 Sec. 6.06. GENERAL RULES GOVERNING DEATH BENEFITS. (a) Any
66-11 award of a death benefit is subject to the conditions required by
66-12 this section.
66-13 (b) A written application for benefits must be filed with
66-14 the administrator.
66-15 (c) The application will be considered at the meeting of the
66-16 board held during the month death benefits are to become effective,
66-17 or as soon as possible after the date the benefits become
66-18 effective. No benefits may be paid, however, until the board has
66-19 approved the application.
66-20 (d) The board may require the applicant to provide proof of
66-21 eligibility, such as marriage licenses, birth certificates,
66-22 adoption papers, or sworn statements. The board may withhold any
66-23 death benefit until the eligibility of the applicant has been
66-24 confirmed.
66-25 (e) If the qualified surviving children are not entitled to
67-1 death benefits, the qualified surviving spouse is entitled only to
67-2 receive a share of the death benefits in the amount calculated
67-3 under Section 6.07(a) or (b) or Section 6.08(b)(1), (c)(1), (d)(1),
67-4 or (e)(1) of this article, whichever is applicable, and is not
67-5 entitled to what otherwise would be the qualified surviving
67-6 children's share. If there is no qualifying surviving spouse, any
67-7 qualified surviving children shall receive only the amount
67-8 calculated under Section 6.07(a) or (b) or Section 6.08(b)(2),
67-9 (c)(2), (d)(2), or (e)(2) of this article, whichever is applicable,
67-10 and are not entitled to what otherwise would be the qualified
67-11 surviving spouse's share. If there is no qualified surviving
67-12 spouse or qualified surviving children, any qualified dependent
67-13 parent shall receive only the amount calculated under Section
67-14 6.07(c) or Section 6.08(b)(3), (d)(3), or (e)(3) of this article,
67-15 whichever is applicable, and is not entitled to what otherwise
67-16 would be the qualified surviving spouse's or qualified surviving
67-17 children's share.
67-18 (f) The death benefit received by the qualified surviving
67-19 spouse, qualified surviving children, or qualified dependent parent
67-20 may not exceed the pension to which the deceased primary party was
67-21 entitled per month.
67-22 (g) If there is no surviving spouse or legal guardian for
67-23 the qualified surviving children and if the board determines that
67-24 the qualified surviving children lack the discretion to handle
67-25 money, or in other appropriate circumstances, notwithstanding any
68-1 other provision of this section, the board may request a court of
68-2 competent jurisdiction to appoint a suitable person to receive and
68-3 administer the qualified surviving children's money or in those
68-4 circumstances described in Subsection (n) of this section, appoint
68-5 a new trustee to administer the qualified surviving children's
68-6 support trust.
68-7 (h) With the exception of a support trust described in
68-8 Subsection (n) of this section, no death benefits awarded to
68-9 qualified surviving children may be used for any purpose other than
68-10 to benefit the qualified surviving children. The board may
68-11 withhold payment of benefits if it has reason to believe the
68-12 benefits are not being properly applied.
68-13 (i) Death benefits paid to qualified surviving children
68-14 living with a surviving spouse shall be delivered to the spouse,
68-15 who is required to use the benefits on behalf of the qualified
68-16 surviving children.
68-17 (j) With the exception of those circumstances described in
68-18 Subsection (n) of this section, death benefits paid to qualified
68-19 surviving children living with a person other than the surviving
68-20 spouse shall be delivered to the person with whom the qualified
68-21 surviving children are living, if the board has designated the
68-22 person as being a suitable person to receive and administer the
68-23 benefits. The board may, however, withhold payment of benefits to
68-24 anyone but the legal guardian of the qualified surviving children
68-25 and may require proof that a person has been appointed legal
69-1 guardian of the qualified surviving children before authorizing any
69-2 benefits to be delivered to that person.
69-3 (k) The qualified surviving dependent parents of a member
69-4 are entitled to receive any survivor benefits provided by this
69-5 article for the remainder of their lives.
69-6 (l) The board may require all persons receiving death
69-7 benefits, including qualified surviving spouses, qualified
69-8 surviving children or their guardians, and qualified surviving
69-9 dependent parents, to file with the administrator, at least once
69-10 every two years, a sworn statement concerning their eligibility to
69-11 continue to receive death benefits. The board may also require a
69-12 sworn statement from any person receiving death benefits at any
69-13 time. The board may withhold death benefits from any person who
69-14 fails or refuses to file a statement when requested to do so.
69-15 (m) When the last qualified survivor of any primary party
69-16 becomes ineligible to continue to receive death benefits, that
69-17 survivor shall be paid in a lump sum an amount equal to the
69-18 difference, if any, between the total amount of all contributions
69-19 made to the fund while a member, and the sum of all benefits paid
69-20 to the primary party and all of his qualified survivors. The total
69-21 amount to be paid in benefits to the primary party and all
69-22 qualified survivors shall never be less than the total amount of
69-23 contributions the primary party made to the fund while a member.
69-24 (n) Notwithstanding any other provision of this section,
69-25 death benefits awarded to an unmarried qualified surviving child of
70-1 a primary party who is determined by the board to be handicapped
70-2 under the terms of Subsection (o) of this section may be paid to
70-3 the trustee of a support trust established for the benefit of the
70-4 qualified surviving child if:
70-5 (1) an opinion of counsel of the trustee of the
70-6 support trust is furnished to the board indicating that payments
70-7 made to the support trust will not, under existing law, be
70-8 considered a resource of the qualified surviving child under Title
70-9 42, Section 1396(a)(17), of the United States Code or any successor
70-10 statute, as well as applicable state law or regulations governing
70-11 the situation;
70-12 (2) coincident with the furnishing of the opinion of
70-13 counsel, the board is provided with an executed original of the
70-14 support trust document for the records of the pension system;
70-15 (3) the terms of the trust provide that the board will
70-16 receive an annual accounting of the support trust from its trustee,
70-17 although the board has no legal responsibility to oversee the
70-18 support trust; and
70-19 (4) the support trust will terminate as soon as
70-20 practicable on the earlier occurrence of the following events:
70-21 (A) the date on which the qualified surviving
70-22 child is determined by the board to no longer be handicapped under
70-23 the terms of this section;
70-24 (B) the date on which the qualified surviving
70-25 child is lawfully married;
71-1 (C) the date on which the qualified surviving
71-2 child is deceased;
71-3 (D) the date on which the assets of the support
71-4 trust are deemed to be the resources of the child under applicable
71-5 federal or state laws or regulations; or
71-6 (E) unless otherwise excused by the board, the
71-7 trustee of the support trust fails to provide the board with an
71-8 annual accounting of the trust within six months after the close of
71-9 the support trust's fiscal year.
71-10 (o) When a qualified surviving child who is entitled to
71-11 receive death benefits under this article reaches the age of 19,
71-12 the qualified surviving child may no longer participate in the
71-13 division of the benefits, but the same undiminished qualified
71-14 surviving child's share as determined by this section shall be paid
71-15 to any remaining qualified surviving children under 19 years of
71-16 age. However, a handicapped qualified surviving child may not be
71-17 removed from participation in the division of benefits on reaching
71-18 the age of 19 nor may the child be barred from original
71-19 participation at any time after reaching the age of 19, and the
71-20 payments shall continue for the duration of the handicap. If a
71-21 qualified surviving child is not married and, after cessation of
71-22 benefits (because of attainment of age 19) but before age 23,
71-23 becomes handicapped, the child is entitled to participate in the
71-24 division of death benefits under this article. Notwithstanding the
71-25 preceding, all death benefits granted under this subsection are
72-1 conditioned on the board finding that:
72-2 (1) the qualified surviving child is so physically or
72-3 mentally handicapped, either congenitally or through injury
72-4 suffered or disease contracted, as to be unable to be
72-5 self-supporting or to secure and hold gainful employment or pursue
72-6 an occupation;
72-7 (2) the qualified surviving child is not married;
72-8 (3) the handicap was not the result of an occupational
72-9 injury for which the qualified surviving child received
72-10 compensation equal to or greater than that provided under this
72-11 article;
72-12 (4) the handicap was not the result of an intentional
72-13 self-inflicted injury or a chronic illness itself resulting from an
72-14 addiction of the qualified surviving child through a protracted
72-15 course of noncoerced indulgence in alcohol, narcotics, or other
72-16 substance abuse; and
72-17 (5) the handicap did not occur as a result of the
72-18 qualified surviving child's participation in the commission of a
72-19 felony.
72-20 (p) If a handicapped qualified surviving child received or
72-21 is receiving compensation resulting from an occupational injury
72-22 equal to an amount less than the death benefit to be provided under
72-23 this section, the difference shall be paid out of the assets of the
72-24 fund in the form otherwise payable as monthly benefits. For
72-25 purposes of Subsection (o) of this section, if a lump sum is
73-1 awarded for an injury, the fund's actuary may compute a
73-2 corresponding monthly equivalent. A finding relating to a
73-3 qualified surviving child's handicap is subject to review and
73-4 modification by the board.
73-5 (q) On the death or marriage of a qualified surviving child
73-6 granted death benefits under this article, the death benefits shall
73-7 cease being paid to that child; however, the same undiminished
73-8 qualified surviving child's share as determined by this section
73-9 shall be uniformly distributed among any remaining unmarried
73-10 qualified surviving children who are under 19 years of age and any
73-11 unmarried qualified surviving children who are handicapped as
73-12 described by Subsection (o) of this section.
73-13 (r) A spouse resulting from any marriage to a former member
73-14 or pensioner after the date the member or pensioner leaves active
73-15 service is not a qualified surviving spouse and is not entitled to
73-16 death benefits under this article.
73-17 (s) To be eligible for death benefits under this article,
73-18 qualified surviving children must be conceived, born, or legally
73-19 adopted before the primary party leaves active service.
73-20 (t) A qualified surviving spouse who first remarried on or
73-21 after April 21, 1988, is eligible to receive death benefits for the
73-22 remainder of the qualified surviving spouse's life. This
73-23 subsection may not be applied retroactively.
73-24 Sec. 6.07. GROUP A DEATH BENEFITS. (a)(1) If a Group A
73-25 member dies before service retirement and before the Group A member
74-1 has 20 years of pension service, leaving both a qualified surviving
74-2 spouse and qualified surviving children, the qualified surviving
74-3 spouse shall make an election for all survivors to receive a Group
74-4 A death benefit consisting in the aggregate of an amount equal to a
74-5 Group A retirement pension computed under the terms of Section 6.01
74-6 of this article as if the Group A member had completed 20 years of
74-7 pension service. An election under this subdivision, once made, is
74-8 irrevocable. This Group A death benefit shall be divided one-half
74-9 to the qualified surviving spouse and one-half to the qualified
74-10 surviving children.
74-11 (2) If a Group A pensioner dies during disability
74-12 retirement and before the Group A pensioner had 20 years of pension
74-13 service, leaving both a qualified surviving spouse and qualified
74-14 children, the survivors in the aggregate shall receive a Group A
74-15 death benefit calculated either under Sections 6.01(b) and (c) of
74-16 this article if the Group A pensioner's Group A disability pension
74-17 was calculated under Section 6.04(a) of this article, or under
74-18 Section 6.01(e) of this article if the Group A pensioner's Group A
74-19 disability pension was calculated under Section 6.04(b) of this
74-20 article. This Group A death benefit shall be divided one-half to
74-21 the qualified surviving spouse and one-half to the qualified
74-22 surviving children.
74-23 (b)(1) If a Group A member or former Group A member dies
74-24 before service retirement and after the Group A member or former
74-25 Group A member has 20 years of pension service, leaving both a
75-1 qualified surviving spouse and qualified surviving children, the
75-2 qualified surviving spouse shall make an election for all survivors
75-3 to receive a Group A death benefit of an amount equal to a Group A
75-4 retirement pension the Group A member or former Group A member
75-5 would have received had the person left active service on the date
75-6 of death, computed under the terms of Section 6.01 of this article.
75-7 An election under this subdivision, once made, is irrevocable.
75-8 This Group A death benefit shall be divided one-half to the
75-9 qualified surviving spouse and one-half to the qualified surviving
75-10 children.
75-11 (2)(A) If a Group A pensioner dies leaving both a
75-12 qualified surviving spouse and qualified surviving children, the
75-13 qualified surviving spouse shall make an election for all survivors
75-14 to receive a Group A death benefit in the amount of the Group A
75-15 retirement pension being received by the Group A pensioner before
75-16 the person's death. This Group A death benefit shall be divided
75-17 one-half to the qualified surviving spouse and one-half to the
75-18 qualified surviving children.
75-19 (B) With the exception of those circumstances
75-20 described by Section 6.06(n) of this article, the Group A death
75-21 benefits awarded to the qualified survivors under this subsection
75-22 shall be paid entirely to the qualified surviving spouse and the
75-23 qualified surviving children. The qualified surviving children's
75-24 one-half share shall be equally and uniformly distributed by the
75-25 qualified surviving spouse to them.
76-1 (c)(1) If a Group A member or former Group A member dies
76-2 leaving no qualified surviving spouse or qualified surviving
76-3 children but leaves surviving one or both qualified surviving
76-4 dependent parents, the qualified surviving dependent parents may
76-5 elect to receive a Group A death benefit equal to the Group A
76-6 retirement pension the Group A member or former Group A member
76-7 would have been entitled to under Section 6.01 of this article
76-8 after leaving active service. If there are two qualified dependent
76-9 parents, the election must be mutual. An election under this
76-10 subdivision, once made, is irrevocable. The qualified surviving
76-11 dependent parents of a Group A pensioner shall receive a Group A
76-12 death benefit equal to the amount of the actual Group A retirement
76-13 pension being received at the time of the pensioner's death,
76-14 divided equally between the qualified surviving dependent parents.
76-15 (2) If a Group A pensioner dies during disability
76-16 retirement and before the Group A pensioner had 20 years of pension
76-17 service, leaving no qualified surviving spouse or qualified
76-18 surviving children, but leaves surviving one or both qualified
76-19 surviving dependent parents, the qualified surviving dependent
76-20 parents may elect to receive a Group A death benefit calculated
76-21 either: under Sections 6.01(b) and (c) of this article if the
76-22 Group A pensioner's Group A disability pension was calculated under
76-23 Section 6.04(a) of this article, or under Section 6.01(e) of this
76-24 article if the Group A pensioner's Group A disability pension was
76-25 calculated under Section 6.04(b) of this article. An election
77-1 under this subdivision, once made, is irrevocable.
77-2 (d) If there is only one qualified surviving dependent
77-3 parent, the parent is entitled to one-half of the amount determined
77-4 under Subsection (c)(1) or (c)(2) of this section.
77-5 Sec. 6.08. GROUP B DEATH BENEFITS. (a) If a Group B member
77-6 dies while on active service, a former Group B member who is vested
77-7 under Section 5.06 of this article dies, or a Group B pensioner
77-8 dies while on service or disability retirement, the person's
77-9 qualified survivors, or the guardian of the qualified surviving
77-10 children if no qualified surviving spouse exists, may make
77-11 application for Group B death benefits. The qualified surviving
77-12 spouse of a Group B member or former Group B member described by
77-13 this subsection, the guardian of the qualified surviving children
77-14 of the person if no qualified surviving spouse exists, or the
77-15 qualified dependent parents if no qualified surviving spouse or
77-16 qualified surviving children exist, have the option to select
77-17 whether Group A or Group B death benefits are received, if the
77-18 Group B member or former Group B member was eligible to receive
77-19 either a Group A or Group B retirement pension. A qualified
77-20 survivor who receives Group A death benefits under this subsection
77-21 is entitled to a ratable portion of a reimbursement from the fund
77-22 in the same amount and manner determined under Section 5.03(d) of
77-23 this article. A qualified survivor or guardian desiring a refund
77-24 of excess contributions must make application for the refund with
77-25 the administrator within three years after the date the qualified
78-1 survivor or guardian makes application for Group A death benefits.
78-2 The option contained in this subsection is not available to
78-3 qualified survivors of a Group B member or former Group B member
78-4 who had, at the time of death, already applied for a retirement
78-5 pension and selected a Group A retirement pension as provided by
78-6 Section 5.03(c) of this article, but the qualified survivors are
78-7 entitled to receive a Group A death benefit.
78-8 (b) Death benefits shall be computed as follows for the
78-9 qualified survivors of Group B members who die while on active
78-10 service:
78-11 (1) A qualified surviving spouse's Group B death
78-12 benefit shall be computed at the rate of 1.5 percent of the Group B
78-13 member's average computation pay determined over the 60 consecutive
78-14 months in which the Group B member received the highest computation
78-15 pay, for each year, and prorated for fractional years, of pension
78-16 service with a minimum of 20 years of pension service assumed, or
78-17 30 percent of the average computation pay determined over the 60
78-18 consecutive months in which the member received the highest
78-19 computation pay. The benefit may not exceed a computation for 32
78-20 years of pension service, or 48 percent of the average computation
78-21 pay determined over the 60 consecutive months in which the Group B
78-22 member received the highest computation pay. If the Group B member
78-23 had less than five years of pension service, the average
78-24 computation pay will be computed based on the person's entire
78-25 pension service.
79-1 (2) A qualified surviving child's Group B death
79-2 benefit shall be computed in the same manner as a qualified
79-3 surviving spouse's benefit is computed under Subdivision (1) of
79-4 this subsection and shall be divided equally among all of the
79-5 qualified surviving children.
79-6 (3) Each qualified surviving dependent parent's Group
79-7 B death benefit shall be computed in the same manner as a qualified
79-8 surviving spouse's Group B benefit is computed under Subdivision
79-9 (1) of this subsection.
79-10 (c) Group B death benefits shall be computed as follows for
79-11 the qualified survivors of any former Group B member who died after
79-12 leaving active service and who had vested rights under Section 5.06
79-13 of this article but who had not received Group B retirement
79-14 benefits under Section 6.02 of this article at the time of death:
79-15 (1) The qualified surviving spouse of the former Group
79-16 B member is entitled to a Group B death benefit equal to 50 percent
79-17 of any Group B retirement pension the former Group B member would
79-18 have been entitled to under Section 6.02 of this article as of the
79-19 date the former Group B member left active service.
79-20 (2) The qualified surviving children of the former
79-21 Group B member are entitled to a Group B benefit calculated in the
79-22 same manner as the Group B death benefit of a qualified surviving
79-23 spouse, to be divided equally between the qualified surviving
79-24 children.
79-25 (3) Each of the qualified surviving dependent parents
80-1 of the former Group B member is entitled to a Group B death benefit
80-2 equal to 50 percent of any Group B retirement pension the former
80-3 Group B member would have been entitled to under the provisions of
80-4 Section 6.02 of this article as of the date the former Group B
80-5 member left active service.
80-6 (d) Group B death benefits shall be computed as follows for
80-7 the qualified survivors of any Group B pensioner of this plan who
80-8 dies while receiving a Group B retirement pension:
80-9 (1) The qualified surviving spouse of a Group B
80-10 pensioner is entitled to Group B death benefits equal to 50 percent
80-11 of any retirement pension the Group B pensioner was receiving at
80-12 the time of death.
80-13 (2) The qualified surviving children of a Group B
80-14 pensioner are entitled to a Group B death benefit calculated in the
80-15 same manner as the Group B death benefit of a qualified surviving
80-16 spouse, to be divided equally between the qualified surviving
80-17 children.
80-18 (3) Each of the qualified surviving dependent parents
80-19 of a Group B pensioner is entitled to a Group B death benefit equal
80-20 to 50 percent of any retirement pension the Group B pensioner was
80-21 receiving at the time of death.
80-22 (e) Group B death benefits shall be computed as follows for
80-23 the qualified survivors of any Group B pensioner who dies while
80-24 receiving a Group B disability pension due to either a
80-25 service-connected or nonservice-connected disability:
81-1 (1) The qualified surviving spouse of the Group B
81-2 pensioner is entitled to the greater of a Group B death benefit
81-3 equal to 50 percent of any Group B disability pension the Group B
81-4 pensioner would have been entitled to under Section 6.05 of this
81-5 article as of the date the Group B pensioner left active service
81-6 because of disability, or a Group B death benefit equal to 50
81-7 percent of any Group B disability pension the Group B pensioner was
81-8 receiving at the time of death.
81-9 (2) The qualified surviving children of the Group B
81-10 pensioner are entitled to a Group B death benefit calculated in the
81-11 same manner as the Group B death benefit of a qualified surviving
81-12 spouse, to be divided equally between the qualified surviving
81-13 children.
81-14 (3) Each of the qualified surviving dependent parents
81-15 of the Group B pensioner is entitled to the greater of a Group B
81-16 death benefit equal to 50 percent of any disability pension the
81-17 Group B pensioner would have been entitled to under Section 6.05 of
81-18 this article as of the date the Group B pensioner left active
81-19 service because of disability, or a Group B death benefit equal to
81-20 50 percent of any Group B disability pension the Group B pensioner
81-21 was receiving at the time of death.
81-22 Sec. 6.09. QUALIFIED SURVIVING SPOUSE SPECIAL DEATH BENEFIT.
81-23 (a) Notwithstanding Sections 6.06 and 6.07 of this article, the
81-24 qualified surviving spouse of a Group A primary party is entitled
81-25 to a special death benefit under this section if:
82-1 (1) the Group A primary party elected to receive a
82-2 Group A retirement pension and later died, was receiving a
82-3 disability or retirement pension either under the terms of Plan A
82-4 before the original enactment of this article or elected to receive
82-5 a Group A retirement pension under Sections 6.01(e), (f), and (g)
82-6 of this article and later died, or was receiving a Group A
82-7 disability pension under Section 6.04(c) of this article and later
82-8 died;
82-9 (2) the Group A primary party (i) had at least 20
82-10 years of pension service and left active service after October 1,
82-11 1985, and was at least 55 years of age or older; or (ii) on or
82-12 after May 1, 1990, the Group A primary party, after accruing at
82-13 least 20 years of pension service, left active service and had a
82-14 total of at least 80 credits, with each year of pension service,
82-15 prorated for fractional years, equal to one credit and with each
82-16 year of age, prorated for fractional years, equal to one credit;
82-17 and
82-18 (3) the qualified surviving spouse has attained 55
82-19 years of age and there are no qualified surviving children eligible
82-20 for death benefits.
82-21 (b) Until the requirements of Subsection (a) of this section
82-22 are satisfied, a qualified surviving spouse shall receive a Group A
82-23 death benefit in accordance with Section 6.07 of this article.
82-24 (c) The special Group A death benefit under this section is
82-25 calculated based on the following formula:
83-1 (P x B x A) + (P x C) + D, where
83-2 service retirement, dies, or becomes disabled, plus longevity pay,
83-3 plus one-twelfth of last-received city service incentive pay;
83-4 the Group A primary party begins service retirement, dies, or
83-5 becomes disabled;
83-6 party's Group A retirement pension or Group A disability pension
83-7 under Section 6.12 of this article multiplied by the amount of the
83-8 adjustments; and
83-9 spouse's Group A death benefit under Section 6.12 of this article
83-10 multiplied by the amount of the adjustments.
83-11 (d) Notwithstanding Sections 6.03 and 6.05 of this article,
83-12 a qualified surviving spouse of a Group B primary party who is
83-13 entitled to any death benefits under Sections 6.06 or 6.08 of this
83-14 article is also entitled to a special benefit under this section
83-15 if:
83-16 (1) the Group B primary party elected to receive a
83-17 Group B retirement pension and later died, or was receiving a Group
83-18 B disability or retirement pension under this article and died;
83-19 (2) the Group B primary party:
83-20 (A) had at least 20 years of pension service,
83-21 left active service after October 1, 1985, and was at least 55
83-22 years of age at the time of leaving active service; or
83-23 (B) on or after May 1, 1990, the Group B primary
83-24 party left active service having a total of at least 80 credits,
83-25 with each year of pension service, prorated for fractional years,
84-1 equal to one credit and with each year of age, prorated for
84-2 fractional years, equal to one credit; and
84-3 (3) the qualified surviving spouse has attained 55
84-4 years of age, and there are no qualified surviving children.
84-5 Until the requirements of Subsection (c) of this section are
84-6 satisfied, a qualified surviving spouse may only receive a Group B
84-7 death benefit in accordance with Sections 6.03 and 6.05 of this
84-8 article.
84-9 (e) This special survivor benefit under this section is
84-10 calculated based on the following formula:
84-11 (P x B x A) + (P x C) + D, where
84-12 primary party begins service retirement, dies, or becomes disabled;
84-13 B disability pension calculated at the time the Group B primary
84-14 party begins service or disability retirement or dies;
84-15 B primary party's Group B retirement pension or Group B disability
84-16 pension under Section 6.12 of this article multiplied by the amount
84-17 of the adjustments; and
84-18 spouse's Group B death benefit under Section 6.12 of this article
84-19 multiplied by the amount of the adjustments.
84-20 Sec. 6.10A. MINIMUM BENEFITS TO GROUP A PRIMARY PARTIES WHO
84-21 ELECT TO RECEIVE RETIREMENT PENSION UNDER SECTIONS 6.01(B) AND (C)
84-22 AND THEIR QUALIFIED SURVIVORS. (a) Except as provided by
84-23 Subsections (b) and (h) of this section and notwithstanding any
84-24 benefit computation and determination to the contrary contained in
84-25 this article, the minimum Group A benefits provided by this section
85-1 shall be paid to any Group A primary party who elects to receive a
85-2 Group A retirement pension under Sections 6.01(b) and (c) of this
85-3 article or the primary party's qualified survivors. The benefits
85-4 under this section shall be distributed in accordance with Sections
85-5 6.01(b) and (c), 6.04(a), or 6.07 of this article, as applicable,
85-6 except that a Group A primary party who elects to receive an
85-7 actuarially reduced Group A retirement pension because of the
85-8 primary party's request to receive a Group A retirement pension
85-9 before 50 years of age and the primary party's qualified survivors
85-10 are not entitled to the Group A minimum benefits specified under
85-11 this section. An alternate payee is not entitled to the Group A
85-12 minimum benefits specified in this section.
85-13 (b) A Group A primary party who elects to receive a Group A
85-14 retirement pension under Sections 6.01(b) and (c) of this article
85-15 and who left active service with 20 or more years of pension
85-16 service is entitled to receive a minimum Group A retirement pension
85-17 of $1,500 a month. If the Group A primary party's Group A
85-18 retirement pension is subject to a qualified domestic relations
85-19 order and the sum of the actuarial equivalents of the monthly
85-20 benefits payable to the Group A primary party and the alternate
85-21 payee is less than the actuarial equivalent of the minimum monthly
85-22 Group A retirement pension described by this subsection, the Group
85-23 A primary party's monthly Group A retirement pension will be
85-24 increased so that the sum of the actuarial equivalents of the
85-25 alternate payee's and the Group A primary party's monthly Group A
86-1 retirement pension equals the actuarial equivalent of the minimum
86-2 monthly Group A retirement pension calculated under this
86-3 subsection.
86-4 (c) A qualified surviving spouse of a Group A primary party
86-5 who elected to receive a Group A retirement pension under Sections
86-6 6.01(b) and (c) of this article will receive a minimum monthly
86-7 Group A death benefit of $750.
86-8 (d) A qualified surviving spouse of a Group A primary party
86-9 who elected to receive a Group A retirement pension under Sections
86-10 6.01(b) and (c) of this article will receive, if there are
86-11 qualified surviving children, a minimum Group A death benefit of
86-12 $750 a month. The qualified surviving children, as a group, will
86-13 receive a minimum Group A death benefit of $750 a month, to be
86-14 divided equally among them.
86-15 (e) In the absence of a qualified surviving spouse of a
86-16 Group A primary party who elected to receive a Group A retirement
86-17 pension under Sections 6.01(b) and (c) of this article, the primary
86-18 party's qualified surviving children, as a group, will receive a
86-19 minimum Group A death benefit of $750 a month, to be divided
86-20 equally among them.
86-21 (f) In the absence of both a qualified surviving spouse and
86-22 qualified surviving children of a Group A primary party who elected
86-23 to receive a Group A retirement pension under Sections 6.01(b) and
86-24 (c) of this article, each qualified surviving dependent parent will
86-25 receive a minimum Group A death benefit of $750 a month. If only
87-1 one of them is surviving, the qualified surviving dependent parent
87-2 will receive a minimum Group A death benefit equal to $750 a month.
87-3 (g) Notwithstanding the minimum monthly benefit described in
87-4 other subsections of this section, a Group A primary party who
87-5 receives a Group A disability pension under Section 6.04(a) of this
87-6 article, calculated in the same manner as a Group A retirement
87-7 pension under Sections 6.01(b) and (c) of this article, shall
87-8 receive a minimum Group A disability pension equal to $1,500 a
87-9 month.
87-10 (h) If a Group A primary party's disability pension is
87-11 subject to a qualified domestic relations order and the sum of the
87-12 actuarial equivalents of the monthly benefits payable to the Group
87-13 A primary party and the alternate payee is less than the actuarial
87-14 equivalent of the minimum monthly Group A disability pension
87-15 determined under Subsection (g) of this section, the Group A
87-16 primary party's minimum monthly Group A disability pension will be
87-17 increased so that the sum of the actuarial equivalents of the
87-18 alternate payee's and the Group A primary party's minimum monthly
87-19 Group A disability pension equals the amount determined under
87-20 Subsection (g) of this section.
87-21 (i) If a Group A pensioner who received a disability under
87-22 Section 6.04(a) of this article, calculated in the same manner as a
87-23 Group A retirement pension under Sections 6.01(b) and (c) of this
87-24 article before the completion of 20 years of pension service dies,
87-25 the qualified survivors will receive a minimum Group A death
88-1 benefit as provided under Subsection (c), (d), (e), or (f) of this
88-2 section, as applicable, whichever is greatest.
88-3 Sec. 6.10B. MINIMUM BENEFITS TO GROUP A PRIMARY PARTIES WHO
88-4 ELECT TO RECEIVE RETIREMENT PENSION UNDER SECTION 6.01(E) AND THEIR
88-5 QUALIFIED SURVIVORS. (a) Except as provided by Subsections (b)
88-6 and (h) of this section and notwithstanding any benefit computation
88-7 and determination to the contrary contained in this article, the
88-8 minimum Group A benefits provided by this section shall be paid to
88-9 any Group A primary party who elects to receive a Group A
88-10 retirement pension under Section 6.01(e) of this article or the
88-11 primary party's qualified survivors. The benefits under this
88-12 section shall be distributed in accordance with Section 6.01(e),
88-13 6.04(b), or 6.07 of this article, as applicable, except that a
88-14 Group A primary party who elects to receive an actuarially reduced
88-15 Group A retirement pension because of the primary party's request
88-16 to receive a Group A retirement pension before 55 years of age and
88-17 the primary party's qualified survivors are not entitled to the
88-18 Group A minimum benefits specified under this section. An
88-19 alternate payee is not entitled to the Group A minimum benefits
88-20 specified in this section.
88-21 (b) A Group A primary party who elected to receive a Group A
88-22 retirement pension under Section 6.01(e) of this article and who
88-23 left active service with 20 or more years of pension service is
88-24 entitled to receive a minimum Group A retirement pension equal to
88-25 the greater of (i) $1,500 a month or (ii) $1,000 a month adjusted
89-1 in the manner described by Section 6.12(a) of this article. If the
89-2 Group A primary party's Group A retirement pension is subject to a
89-3 qualified domestic relations order and the sum of the actuarial
89-4 equivalents of the monthly benefits payable to the Group A primary
89-5 party and the alternate payee is less than the actuarial equivalent
89-6 of the minimum monthly Group A retirement pension described by this
89-7 subsection, the Group A primary party's monthly Group A retirement
89-8 pension will be increased so that the sum of the actuarial
89-9 equivalents of the alternate payee's and the Group A primary
89-10 party's monthly Group A retirement pension equals the actuarial
89-11 equivalent of the minimum monthly Group A retirement pension
89-12 calculated under this subsection.
89-13 (c) A qualified surviving spouse of a Group A primary party
89-14 who elected to receive a Group A retirement pension under Section
89-15 6.01(e) of this article will receive a minimum Group A death
89-16 benefit equal to the greater of (i) $750 a month or (ii) $500 a
89-17 month adjusted in the manner described by Section 6.12(a) of this
89-18 article.
89-19 (d) A qualified surviving spouse of a Group A primary party
89-20 who elects to receive a Group A retirement pension under Section
89-21 6.01(e) of this article, will receive, if there are qualified
89-22 surviving children, a minimum Group A death benefit equal to the
89-23 greater of (i) $750 a month or (ii) $500 a month adjusted in the
89-24 manner described by Section 6.12(a) of this article. The qualified
89-25 surviving children, as a group, will receive a minimum Group A
90-1 death benefit equal to the greater of (iii) $750 a month or (iv)
90-2 $500 a month adjusted in the manner described by Section 6.12(a) of
90-3 this article, to be divided equally among them.
90-4 (e) In the absence of a qualified surviving spouse of a
90-5 Group A primary party who elected to receive a Group A retirement
90-6 pension under Section 6.01(e) of this article, the qualified
90-7 surviving children of a Group A primary party, as a group, will
90-8 receive a minimum Group A death benefit equal to the greater of (i)
90-9 $750 a month or (ii) $500 a month adjusted in the manner described
90-10 by Section 6.12(a) of this article, to be divided equally among
90-11 them.
90-12 (f) In the absence of both a qualified surviving spouse and
90-13 qualified surviving children of a Group A primary party who elected
90-14 to receive a Group A retirement pension under Section 6.01(e) of
90-15 this article, each qualified surviving dependent parent will
90-16 receive a minimum Group A death benefit equal to the greater of (i)
90-17 $750 a month or (ii) $500 a month adjusted in the manner described
90-18 by Section 6.12(a) of this article. If only one of them is
90-19 surviving, the qualified surviving dependent parent will receive a
90-20 minimum Group A death benefit equal to the greater of (iii) $750 a
90-21 month or (iv) $500 a month adjusted in the manner described by
90-22 Section 6.12(a) of this article.
90-23 (g) Notwithstanding the minimum monthly benefit as described
90-24 in other subsections of this section, a Group A primary party who
90-25 leaves active service on a nonservice-connected disability under
91-1 Section 6.04(b)(2) of this article with less than 20 years of
91-2 pension service shall receive a minimum monthly Group A disability
91-3 pension equal to the greater of (i) $75 multiplied by the number of
91-4 years of the primary party's pension service or (ii) $50 multiplied
91-5 by the number of years of the primary party's pension service, the
91-6 product adjusted in the manner described by Section 6.12(a) of this
91-7 article.
91-8 (h) If the disability pension of a Group A primary party who
91-9 leaves active service on disability retirement under Section
91-10 6.04(b) or (c) of this article is subject to a qualified domestic
91-11 relations order and the sum of the actuarial equivalents of the
91-12 monthly benefits payable to the Group A primary party and the
91-13 alternate payee is less than the actuarial equivalent of the
91-14 monthly Group A disability pension determined under Subsection (g)
91-15 of this section, the Group A primary party's monthly Group A
91-16 disability pension will be increased so that the sum of the
91-17 actuarial equivalents of the alternate payee's and the Group A
91-18 primary party's monthly Group A disability pension equals the
91-19 amount determined under Subsection (g) of this section.
91-20 (i) If a Group A pensioner who received a
91-21 nonservice-connected disability under Section 6.04(b)(2) of this
91-22 article before the completion of 20 years of pension service dies,
91-23 the qualified survivors will each receive the amount specified in
91-24 Section 6.07 of this article or the minimum monthly Group A death
91-25 benefit as provided under Subsection (c), (d), (e), or (f) of this
92-1 section, as applicable, whichever is greatest.
92-2 Sec. 6.11. MINIMUM BENEFITS TO GROUP B PRIMARY PARTIES AND
92-3 THEIR QUALIFIED SURVIVORS. (a) Except as provided by Subsections
92-4 (b), (c), and (h) of this section and notwithstanding any benefit
92-5 computation and determination to the contrary contained in this
92-6 article, the minimum Group B benefits provided by this section
92-7 shall be paid to any Group B primary party or the primary party's
92-8 qualified survivors, except that a Group B primary party who elects
92-9 to receive an actuarially reduced Group B retirement pension
92-10 because of the primary party's request to receive the pension at or
92-11 after age 45, but before age 50 and the primary party's qualified
92-12 survivors are not entitled to the Group B minimum benefits
92-13 specified by this section.
92-14 (b) If a Group B primary party leaves active service with 20
92-15 or more years of pension service, the Group B primary party is
92-16 entitled to receive a Group B minimum retirement pension equal to
92-17 the greater of (i) $1,500 a month or (ii) $925 a month, which sum
92-18 may (A) increase at the rate of $5 a month for each year of pension
92-19 service beyond 20 years, but the increase may not exceed $75 and
92-20 (B) be adjusted in the manner described by Section 6.12(a) of this
92-21 article. If a Group B primary party's Group B retirement pension
92-22 is or becomes subject to a qualified domestic relations order and
92-23 the sum of the actuarial equivalents of the monthly Group B
92-24 retirement pension payable to the Group B primary party and the
92-25 alternate payee is less than the actuarial equivalent of the
93-1 minimum monthly Group B retirement pension as calculated under this
93-2 subsection, the Group B primary party's monthly Group B retirement
93-3 pension will be increased so that the sum of the actuarial
93-4 equivalents of both the alternate payee's and the Group B primary
93-5 party's Group B retirement pensions equals the actuarial equivalent
93-6 of the minimum monthly Group B retirement pension as calculated
93-7 under this subsection.
93-8 (c) If a Group B primary party leaves active service with
93-9 less than 20 years of pension service, the primary party is
93-10 entitled to receive a minimum monthly Group B retirement pension
93-11 equal to the greater of (i) $1,500 a month divided by 20 and
93-12 multiplied by the Group B primary party's number of years of
93-13 pension service or (ii) $925 a month divided by 20 and multiplied
93-14 by the Group B primary party's number of years of pension service,
93-15 which amount is then adjusted in the manner described by Section
93-16 6.12(a) of this article. If a Group B primary party's retirement
93-17 pension is or becomes subject to a qualified domestic relations
93-18 order and the sum of the actuarial equivalents of the monthly Group
93-19 B retirement pension payable to the Group B primary party and the
93-20 alternate payee is less than the actuarial equivalent of the
93-21 monthly retirement pension as calculated under this subsection, the
93-22 Group B primary party's monthly Group B retirement pension will be
93-23 increased so that the sum of the actuarial equivalents of the
93-24 alternate payee's and the Group B primary party's monthly Group B
93-25 retirement pensions equals the actuarial equivalent of the minimum
94-1 monthly Group B retirement pension as calculated under this
94-2 subsection.
94-3 (d) In the absence of qualified surviving children, the
94-4 qualified surviving spouse of a Group B primary party will receive
94-5 a minimum Group B death benefit equal to the greater of (i) $750 a
94-6 month or (ii) $600 a month adjusted in the manner described by
94-7 Section 6.12(a) of this article.
94-8 (e) A qualified surviving spouse of a Group B primary party
94-9 will receive, if there are qualified surviving children, the
94-10 greater of a minimum Group B death benefit of 50 percent of the
94-11 primary party's minimum monthly Group B retirement pension
94-12 described by Subsection (b) or (c) of this section, whichever is
94-13 applicable. The qualified surviving children, as a group, will
94-14 receive the greater of a minimum monthly Group B death benefit of
94-15 50 percent of the minimum monthly Group B retirement pension
94-16 described by Subsection (b) or (c) of this section, whichever is
94-17 applicable, to be divided equally among them.
94-18 (f) In the absence of a qualified surviving spouse, the
94-19 qualified surviving children of a Group B primary party, as a
94-20 group, will receive a minimum Group B death benefit equal to the
94-21 greater of (i) $750 a month or (ii) $600 a month adjusted in the
94-22 manner described by Section 6.12(a) of this article, to be divided
94-23 equally between them.
94-24 (g) In the absence of either a qualified surviving spouse or
94-25 qualified surviving children, each qualified surviving dependent
95-1 parent of the deceased Group B primary party will receive a Group
95-2 B minimum death benefit equal to the greater of 50 percent of the
95-3 Group B primary party's minimum monthly Group B retirement pension
95-4 described by Subsection (b) or (c) of this section, whichever is
95-5 applicable. If only one qualified surviving dependent parent is
95-6 surviving, the parent will receive a Group B minimum death benefit
95-7 of 50 percent of the minimum monthly Group B retirement pension
95-8 described by Subsection (b) or (c) of this section, whichever is
95-9 applicable.
95-10 (h) Notwithstanding the minimum monthly Group B retirement
95-11 pension otherwise described by this section, a Group B primary
95-12 party who left active service on a nonservice-connected disability
95-13 with less than 20 years of pension service will receive a minimum
95-14 monthly Group B disability pension equal to the greater of (i) $75
95-15 multiplied by the number of years of the primary party's pension
95-16 service or (ii) $46.25 multiplied by the number of years of the
95-17 primary party's pension service, the product adjusted in the manner
95-18 described by Section 6.12(a) of this article. If the Group B
95-19 primary party's Group B disability pension is or becomes subject to
95-20 a qualified domestic relations order and the sum of the actuarial
95-21 equivalents of the monthly Group B disability pension payable to
95-22 the Group B primary party and the alternate payee is less than the
95-23 actuarial equivalent of the monthly disability pension as
95-24 calculated under this subsection, the Group B primary party's
95-25 monthly Group B disability pension will be increased so that the
96-1 sum of the actuarial equivalents of the alternate payee's and the
96-2 Group B primary party's monthly Group B disability pensions equals
96-3 the actuarial equivalents of the minimum monthly Group B disability
96-4 pension as calculated under this subsection. If a Group B primary
96-5 party who was receiving a nonservice-connected Group B disability
96-6 pension before the completion of 20 years pension service dies, the
96-7 qualified survivors will receive the amount specified in Section
96-8 6.08 of this article, or the Group B minimum monthly death benefits
96-9 granted to qualified survivors as provided by Subsections (d), (e),
96-10 (f), and (g) of this section, as applicable, whichever is greater.
96-11 Sec. 6.12. ADJUSTMENTS TO RETIREMENT AND DISABILITY PENSION
96-12 BENEFITS. (a) Annually on the first day of October, a retirement
96-13 pension calculated under Section 6.01 or 6.02 of this article, a
96-14 disability pension calculated under Section 6.04 or 6.05 of this
96-15 article, or a death benefit calculated under Section 6.07 or 6.08
96-16 of this article currently in pay status, or pending board approval
96-17 on the last day of September, will be increased by an amount equal
96-18 to four percent, not compounded, of the original amount of the
96-19 retirement or disability pension or death benefit.
96-20 (b) The minimum monthly benefits provided to a primary party
96-21 or a qualified survivor under Section 6.10A, 6.10B, or 6.11 of this
96-22 article shall be adjusted in the same manner described by
96-23 Subsection (a) of this section; however, the adjustments apply only
96-24 to the amount of the minimum monthly benefit first received by the
96-25 primary party or qualified survivor after September 30, 1992, which
97-1 is known as the base benefit. If the base benefit of a primary
97-2 party or qualified survivor is an amount less than the minimum
97-3 monthly benefit currently provided for under Section 6.10A, 6.10B,
97-4 or 6.11 of this article, the minimum monthly benefit may not be
97-5 increased until the adjusted base benefit exceeds the minimum
97-6 monthly benefit.
97-7 (c) A Group B retirement or Group B disability pension paid
97-8 to any Group B pensioner may not be less than the Group B
97-9 pensioner's base pension. The death benefit of a Group B qualified
97-10 surviving spouse, Group B qualified surviving dependent parents, as
97-11 a group, or Group B qualified surviving children, as a group, may
97-12 not be less than 50 percent of a Group B pensioner's base pension.
97-13 Sec. 6.13. SUPPLEMENT TO CERTAIN RECIPIENTS 55 YEARS OF AGE
97-14 OR OLDER. If a pensioner had at least 20 years of pension service
97-15 under any plan adopted pursuant to Article 6243a or this article,
97-16 or if a pensioner is receiving a service-connected disability
97-17 pension, the pensioner, the pensioner's qualified surviving spouse
97-18 who is eligible to receive benefits under this article, or the
97-19 pensioner's qualified surviving children, as a group, under Section
97-20 6.06(o) of this article are entitled to receive, when the pensioner
97-21 or qualified surviving spouse attains 55 years of age, the greater
97-22 of a monthly supplement equal to $50 or three percent of their
97-23 total monthly benefit, and for years beginning on and after January
97-24 1, 1991, the monthly supplement will be equal to the greater of $75
97-25 or three percent of their total monthly benefit. For purposes only
98-1 of calculating this supplement, the phrase "their total monthly
98-2 benefit" means the amount payable to a pensioner or qualified
98-3 survivors under the terms of the plans described by this section
98-4 under which the pensioner or qualified survivor elected to receive
98-5 benefits but does not include the supplement authorized by this
98-6 section.
98-7 Sec. 6.14. DEFERRED RETIREMENT OPTION PLAN. (a) In lieu of
98-8 either leaving active service and commencing a retirement pension
98-9 as provided for under Section 6.01 or 6.02 of this article,
98-10 whichever is applicable, or remaining in active service and
98-11 continuing to accrue additional pension benefits as provided under
98-12 Section 6.01 or 6.02, a member who is eligible to receive an
98-13 unreduced retirement pension under Section 6.01 or 6.02 may remain
98-14 in active service, become a participant in the Deferred Retirement
98-15 Option Plan ("DROP") in accordance with Subsections (b) and (c) of
98-16 this section, and defer the beginning of the person's retirement
98-17 pension. Once an election to participate in the DROP has been
98-18 made, the election continues in effect as long as the member
98-19 remains in active service. On leaving active service, the member
98-20 may apply for a retirement pension under Sections 6.01(b) and (c),
98-21 Section 6.01(e), or Section 6.02 of this article, whichever is
98-22 applicable, together with any DROP benefit provided under this
98-23 section.
98-24 (b) The election to participate in the DROP shall be made in
98-25 accordance with procedures set forth in any uniform and
99-1 nondiscriminatory election form adopted by the board and in effect
99-2 from time to time. To determine the proper amount to be credited
99-3 to a member's DROP account, the election shall indicate whether the
99-4 member desires to receive a retirement pension under Sections
99-5 6.01(b) and (c), Section 6.01(e), or Section 6.02 of this article,
99-6 whichever is applicable. The election may be made at any time on
99-7 or after the date the member becomes eligible for an unreduced
99-8 retirement pension under Sections 6.01(b) and (c), Section 6.01(e),
99-9 or Section 6.02 of this article, whichever is applicable, and
99-10 becomes effective on the first day of the first month after the
99-11 date on which the member makes the election. On and after the
99-12 effective date of the election, the member will no longer make
99-13 member contributions to the fund, notwithstanding Section 4.03(b)
99-14 or (f) of this article, whichever is applicable. The election by
99-15 one or more members to participate in the DROP has no effect on the
99-16 amount of city contributions to the fund under Section 4.02 of this
99-17 article.
99-18 (c) Each month after a member has made an election to
99-19 participate in the DROP and indicated a desire to receive a
99-20 retirement pension under Sections 6.01(b) and (c), Section 6.01(e),
99-21 or Section 6.02 of this article, whichever is applicable, and until
99-22 the member leaves active service, an amount equal to the retirement
99-23 pension the member would have received under Sections 6.01(b) and
99-24 (c), Section 6.01(e), or Section 6.04, whichever is applicable, for
99-25 that month if the member had left active service and been granted a
100-1 retirement pension by the board on the effective date of DROP
100-2 participation shall be transferred to a separate DROP account
100-3 maintained within the fund for the benefit of the member. Amounts
100-4 held in a member's DROP account shall be credited at the end of
100-5 each calendar month with interest at a rate that will approximately
100-6 equal the annual rate assumed by the pension system's qualified
100-7 actuary and approved by the board as the assumed actuarial rate of
100-8 return for the fund.
100-9 (d) On leaving active service and on the board's grant of a
100-10 retirement pension, a member who participates in DROP shall begin
100-11 to receive the balance in the person's DROP account under one of
100-12 the following methods of distribution elected by the member:
100-13 (1) a single-sum distribution made at a time selected
100-14 by the member but not later than April 1 of the year after the
100-15 member attains 70-1/2 years of age;
100-16 (2) an annuity to be paid in equal monthly payments
100-17 for the life of the member, or for the life of the member and a
100-18 designated beneficiary in the same manner as a retirement pension
100-19 computed under Sections 6.01(b) and (c), Section 6.01(e), or
100-20 Section 6.02 of this article, whichever is applicable, determined
100-21 as of the date the member leaves active service based on the
100-22 person's account balance and age and the age of the designated
100-23 beneficiary, if applicable, on that date and using the mortality
100-24 and earnings assumptions being used on that date by the pension
100-25 system's qualified actuary and approved by the board as the assumed
101-1 actuarial rate of return for the fund; or
101-2 (3) substantially equal monthly or annual payments of
101-3 the person's account balance beginning at a time selected by the
101-4 member that is on or before April 1st of the year after the member
101-5 attains 70-1/2 years of age and extending over a fixed period that
101-6 does not exceed the life expectancy of the member, or the life
101-7 expectancy of the member and the member's designated beneficiary,
101-8 if applicable.
101-9 (e) The DROP account balance of a member who elects the
101-10 method of distribution described by Subsection (d)(3) of this
101-11 section shall be credited with interest on the unpaid balance at
101-12 the end of each calendar month in the same manner as is prescribed
101-13 by Subsection (c) of this section. A member may change a
101-14 distribution election at any time before the member attains 70-1/2
101-15 years of age to receive one or more additional payments or to
101-16 accelerate or delay any payment not then due, if the change is
101-17 communicated to the plan administrator, in accordance with
101-18 procedures then in effect, not less than 30 days before the day it
101-19 is to take effect and if the change does not result in a failure of
101-20 the distributions to satisfy the requirements of Section 401(a)(9)
101-21 of the code.
101-22 (f) Any election made in accordance with Subsection (d) of
101-23 this section may be changed at any time before leaving active
101-24 service to any other election permitted by that subsection, subject
101-25 to the requirements for spousal consent, in Section 6.14(d)(1), if
102-1 applicable.
102-2 (g) The provisions of Sections 6.06, 6.07, and 6.08 of this
102-3 article pertaining to death benefits of a qualified survivor do not
102-4 apply to amounts held in a member's DROP account, and the class of
102-5 persons eligible to become qualified survivors of a member closes
102-6 on the effective date of the member's participation in DROP.
102-7 Instead, a member who participates in DROP may designate a
102-8 beneficiary to receive the balance of the member's DROP account in
102-9 the event of the member's death in the following manner:
102-10 (1) The beneficiary designation must be made on an
102-11 election form adopted by the board and in effect from time to time
102-12 and in accordance with the conditions on the form, except that if
102-13 the member is married, the designation of a beneficiary other than
102-14 the member's spouse is valid only if the spouse consents to the
102-15 designation at the time, in the manner, and on the consent form as
102-16 is adopted by the board and in effect from time to time.
102-17 (2) If a member who participates in DROP dies while in
102-18 active service or before the beginning of the member's DROP
102-19 account, distributions will begin no more than one year after the
102-20 date of the member's death under a method described by Subsection
102-21 (d) of this section and shall be completed within the life, or life
102-22 expectancy, of the designated beneficiary.
102-23 (3) If a member who participates in DROP dies after
102-24 having begun to receive distributions in accordance with Subsection
102-25 (d) of this section, the balance in the member's DROP account shall
103-1 continue to be distributed to the member's designated beneficiary
103-2 or other person described by Subdivision (4) of this subsection in
103-3 accordance with any elections that had been made under Subsection
103-4 (d) of this section.
103-5 (4) If the deceased member has not designated a
103-6 beneficiary or has designated a beneficiary but not a method of
103-7 distribution, the member's DROP account shall be distributed in a
103-8 single-sum payment as soon as administratively feasible after the
103-9 member's death to the beneficiary if one was designated and
103-10 otherwise to the spouse if the member was married at the time of
103-11 death or, if the member was not married, to the member's estate.
103-12 (5) A member who participates in DROP becomes
103-13 ineligible for any disability benefits described by Sections 6.03,
103-14 6.04, and 6.05 of this article, but instead, on the board's
103-15 acknowledgment of a disability that would otherwise qualify the
103-16 member for disability benefits, the board shall grant a retirement
103-17 pension in accordance with Sections 6.01(b) and (c), Section
103-18 6.01(e), or Section 6.02 of this article, whichever is applicable,
103-19 and the member is also entitled to receive both a retirement
103-20 pension and a distribution of the DROP account in accordance with
103-21 Subsection (d) of this section.
103-22 (h) The base pay in effect as of the effective date of a
103-23 Group A member's participation in DROP shall be used in calculating
103-24 the member's Group A retirement pension under Section 6.01 of this
103-25 article. A Group A member who elects to participate in DROP does
104-1 not accrue additional pension service for purposes of computing the
104-2 Group A retirement pension provided under Section 6.01(e) of this
104-3 article for any period after the effective date of the election.
104-4 (i) A Group B member who elects to participate in DROP does
104-5 not accrue additional pension service for purposes of calculating a
104-6 Group B retirement pension under Section 6.02 of this article, and
104-7 any compensation earned by a Group B member during that period may
104-8 not be considered in the calculation of the benefit.
104-9 (j) If a pensioner who participated in DROP returns to
104-10 active service, the person must once again become a participant in
104-11 DROP under the terms and conditions in effect at the time of the
104-12 person's return.
104-13 (k) Without affecting any member's continued participation
104-14 in DROP and notwithstanding Subsections (a)-(j) of this section, no
104-15 member may elect to begin participation in DROP after any date, not
104-16 sooner than five years after the effective date of the DROP, on
104-17 which the pension system's qualified actuary certifies that DROP
104-18 participation is resulting in a significant actuarial loss to the
104-19 fund.
104-20 Sec. 6.15. MEDICAL EXAMINATION. (a) The board may require
104-21 the following pensioners receiving a disability pension to appear
104-22 and undergo a medical examination by the health director or, if the
104-23 health director approves, by any licensed medical practitioner, to
104-24 determine if the pensioner's disability continues or has been
104-25 removed to the extent that the pensioner is able to resume duties
105-1 with the department:
105-2 (1) any Group A pensioner who has served less than 20
105-3 years;
105-4 (2) any Group A pensioner who elected a Group B
105-5 disability pension under Section 6.04(e) of this article and who
105-6 has served more than 20 years but is less than 55 years of age; and
105-7 (3) any Group B pensioner who elected a Group B
105-8 disability under Section 6.05 of this article and is less than 50
105-9 years of age.
105-10 (b) Any medical examination under this section is subject to
105-11 the following conditions:
105-12 (1) Except as otherwise provided by this section, the
105-13 board has complete discretion to require a pensioner to appear and
105-14 undergo a medical examination as well as the time that may pass
105-15 between examinations. When it becomes clear to the board from
105-16 reliable medical evidence that the disability is unequivocally
105-17 permanent and is not expected to diminish, the board may not
105-18 require subsequent examinations.
105-19 (2) A pensioner may not be required to undergo a
105-20 medical examination more often than once in a six-month period,
105-21 except that the board may order the pensioner to undergo an
105-22 examination at any time if the board has reason to believe the
105-23 pensioner's disability has been removed and that the pensioner may
105-24 be able to resume duties with the pensioner's former department or
105-25 if the pensioner requests to be allowed to return to duty.
106-1 (3) If a pensioner fails to undergo an examination
106-2 after being notified by the board that the examination is required,
106-3 the board may discontinue disability benefits until the pensioner
106-4 has undergone the examination and the results of the examination
106-5 have been sent to the board.
106-6 (4) If the pensioner is examined by an approved
106-7 outside medical practitioner other than the health director, the
106-8 reasonable and customary cost of the examination, if any, is
106-9 payable from the assets of the fund.
106-10 (c) After a pensioner has undergone a medical examination,
106-11 the health director shall provide the board with a report of the
106-12 pensioner's present medical condition together with the doctor's
106-13 opinion as to whether the pensioner continues to be disabled or
106-14 whether the pensioner is no longer disabled to the extent that the
106-15 pensioner could resume duties with the pensioner's former
106-16 department. The report and opinion may be divulged only to persons
106-17 who have a legitimate need for them.
106-18 (d) If, in the opinion of the health director, the pensioner
106-19 continues to be disabled, the board must continue payment of
106-20 benefits. If, in the opinion of the health director, the pensioner
106-21 is no longer disabled, or is not so disabled that the pensioner
106-22 could not perform some duties for the pensioner's former
106-23 department, the board shall notify the department to determine if a
106-24 position is available. If a position is available, the board shall
106-25 notify the pensioner to return to duty. Disability benefits shall
107-1 continue to be paid, however, until the pensioner returns to active
107-2 service. However, if the pensioner refuses to return to duty or is
107-3 refused employment by either department for reasons other than
107-4 disability, the board shall order disability payments stopped. If
107-5 a position is not available, the board must continue payments of
107-6 the pensioner's disability pension.
107-7 (e) Pursuant to its authority under Section 6.06(o) of this
107-8 article to review and modify any funding relating to a qualified
107-9 surviving child's handicap, the board may require a handicapped
107-10 qualified surviving child receiving death benefits to appear and
107-11 undergo medical examination by the health director or, if the
107-12 health director approves, by any licensed medical practitioner, to
107-13 determine if the handicap continues or if the handicap has been
107-14 removed.
107-15 Sec. 6.16. WAIVER OF BENEFITS. (a) A pensioner who is on
107-16 either service or disability retirement, a qualified surviving
107-17 spouse, a handicapped qualified surviving child, a member who may
107-18 be a participant in DROP, a beneficiary of a deceased former DROP
107-19 participant, or a qualified surviving dependent parent may, on a
107-20 form prescribed by the board and filed with the administrator,
107-21 irrevocably waive all or a portion of the benefits, to which the
107-22 person who waives the benefit is entitled.
107-23 (b) The irrevocable waiver described by Subsection (a) of
107-24 this section applies only to retirement, disability, or DROP
107-25 survivor benefits that become payable on or after the date the
108-1 waiver is filed.
108-2 (c) If there are two qualified surviving dependent parents
108-3 receiving death benefits, the waiver described by Subsection (a) of
108-4 this section must be executed by both of the parents.
108-5 Sec. 6.17. DENIAL OF BENEFITS: DEATH CAUSED BY SURVIVOR. A
108-6 qualified survivor or beneficiary of a member's DROP account is not
108-7 eligible for, or entitled to, benefits if the person is the
108-8 principal or an accomplice in wilfully bringing about the death of
108-9 a primary party or another qualified survivor or beneficiary of a
108-10 member's DROP account whose death would otherwise have resulted in
108-11 a benefit or benefit increase to the person. The determination of
108-12 the board that a person wilfully brought about the death must be
108-13 made during a meeting of the board from a preponderance of the
108-14 evidence presented and is not controlled by any other finding in
108-15 any other forum, whether considered under the same or another
108-16 degree of proof.
108-17 Sec. 6.18. INVESTIGATION. (a) The board shall consider all
108-18 applications for retirement and disability pensions of members, all
108-19 applications for death benefits by qualified survivors, and all
108-20 elections for participation by a member in DROP. The board shall
108-21 give notice to those persons, advising of their right to appear
108-22 before the board and offer such sworn evidence as they may desire.
108-23 Any primary party, survivor, or other person claiming DROP benefits
108-24 may appear before the board in person and offer testimony that is
108-25 relevant to a contested application for a retirement pension,
109-1 disability pension, death benefit, or DROP benefit. The chairman
109-2 of the board may issue process for witnesses, administer oaths to
109-3 witnesses, and examine any witness as to any matter affecting
109-4 benefits under any plan within the pension system. Process for
109-5 witnesses shall be served by any member of the police or fire
109-6 department or by any other method of serving process or person
109-7 permitted by the state law in any civil judicial proceeding. A
109-8 witness who fails or refuses to attend and testify may be compelled
109-9 to attend and testify, as in any judicial proceeding. The board
109-10 may seek assistance from any court of competent jurisdiction to
109-11 further compel or sanction a witness who fails or refuses to attend
109-12 and testify.
109-13 (b) Any primary party, spouse, child, dependent parent, or
109-14 other person claiming DROP benefits who is aggrieved by a
109-15 determination of the board on the person's application for or
109-16 continuation of a retirement pension, disability pension, or death
109-17 benefit, or an election for DROP benefits may appeal the board
109-18 determination to a state district court in the county where the
109-19 pension system is located by giving written notice of appeal. The
109-20 notice shall contain a statement of the grounds and reasons why the
109-21 party feels aggrieved. The notice shall be served personally on
109-22 the secretary of the board within 20 days after the date of the
109-23 board's determination. After service of the notice, the party
109-24 appealing shall file with the state district court a copy of the
109-25 notice of intention to appeal, together with an affidavit of the
110-1 party making service showing how, when, and on whom the notice was
110-2 served.
110-3 (c) Within 30 days after the date of service of the notice
110-4 of appeal on the board, the secretary of the board shall make up
110-5 and file with the state district court a transcript of all papers
110-6 and proceedings in the case before the board. When the copy of the
110-7 notice of appeal and the transcript has been filed with the court,
110-8 the appeal is perfected, and the court shall docket the appeal,
110-9 assign the appeal a number, fix a date for hearing the appeal, and
110-10 notify both the appellant and the board of the date fixed for the
110-11 hearing.
110-12 (d) At any time before rendering its decision on the appeal,
110-13 the court may require further or additional proof or information,
110-14 either documentary or under oath. On rendition of a decision on
110-15 appeal, the court shall give to each party to the appeal a copy of
110-16 the decision of the case. The decision or order of the court is
110-17 appealable in the same manner as are civil cases generally.
110-18 (e) The board shall approve all money used for
110-19 investigations as provided under Section 4.01 of this article. The
110-20 board may request the investigative services of either the police
110-21 or fire departments in connection with any matter arising under
110-22 this section.
110-23 Sec. 6.19. CERTIFICATE OF RETIREMENT. When a member has
110-24 earned 20 years of pension service, the member shall be issued a
110-25 certificate of retirement that, barring administrative error,
111-1 miscalculation, or other error, after issuance is incontestable.
111-2 The certificate shall state that the calculation of the retirement
111-3 pension to which the member is entitled, or any disability benefits
111-4 to which the member may become entitled, shall be determined solely
111-5 under the actual terms of the combined pension plan. The
111-6 certificate shall further state that in the case of the member's
111-7 death, the member's survivors shall be entitled to survivor
111-8 benefits as determined under the terms of the combined pension
111-9 plan. The certificate shall be signed by the mayor, or the mayor
111-10 pro tem, or the city manager and by the chairman of the board and
111-11 attested under the seal of the city by the city secretary.
111-12 PART 7. AMENDMENT OF PENSION SYSTEM
111-13 Sec. 7.01. AMENDMENT. (a) The members of the plans within
111-14 the pension system have previously amended the pension system by
111-15 establishing Plan A and Plan B pursuant to Sections 11A and 11B,
111-16 respectively, of Article 6243a and establishing this article. The
111-17 members of the plans within the pension system may further amend
111-18 any plan within the pension system in any manner, including
111-19 amendments to:
111-20 (1) benefits or eligibility requirements for those
111-21 benefits, or both; or
111-22 (2) create a new plan or amend or restate any existing
111-23 plan within the pension system that embodies changes in addition to
111-24 those set forth in Subdivision (1) of this subsection if:
111-25 (A) the amendment is first approved as being
112-1 actuarially sound by a qualified actuary selected by a majority
112-2 vote of the board;
112-3 (B) the amendment is approved by a majority of
112-4 the board;
112-5 (C) 65 percent of the votes cast by membership
112-6 of each of the collective plans within the pension system are cast
112-7 in favor of the amendment, the voting to be made by secret ballot;
112-8 and
112-9 (D) the amendment does not deprive any member of
112-10 any plan within the pension system of any of the benefits that have
112-11 become fully vested or nonforfeitable to the member unless the
112-12 member:
112-13 (i) executes a written consent to
112-14 participate in the amended plan; and
112-15 (ii) has qualified under the amended plan.
112-16 (b) Any amendment made pursuant to this section may not in
112-17 any manner affect any rights or responsibilities existing under
112-18 Article 6243a or create any new rights or responsibilities except
112-19 as fully set forth in the adopted amendment.
112-20 (c) Any amendment made pursuant to this section is not
112-21 required to be ratified by the legislature, but is effective when
112-22 properly recorded in the permanent records of the pension system.
112-23 (d) Unless otherwise provided by the amendment, the
112-24 amendment applies only to members of the plans within the pension
112-25 system who are on active service at the time of the amendment and
113-1 those other persons who may qualify under the provisions of the
113-2 plan affected or created by the amendment.
113-3 (e) Before any election under this section, the board by
113-4 majority vote shall issue a notice of the calling of the election.
113-5 The notice must state the proposition to be voted upon and include
113-6 verbatim the amendment sought to be made. The notice must be
113-7 posted at least two weeks before the date of the election at the
113-8 city hall and at all fire stations and police stations and upon the
113-9 bulletin boards at the places where the police officers and fire
113-10 fighters are assembled for duty. The balloting in that election
113-11 shall be held over a period of at least three consecutive 24-hour
113-12 periods with ballot boxes placed at the places that may be
113-13 determined by the board, so as to be generally convenient to those
113-14 voting. The ballot boxes shall be kept locked at all times until
113-15 canvassed by the board or under their supervision.
113-16 (f) The minutes of the board shall be reduced to writing and
113-17 certified by the administrator of the board showing:
113-18 (1) the proposed amendment whether to one or more
113-19 plans within the pension system;
113-20 (2) the calling of the election and the giving of
113-21 notice of the election; and
113-22 (3) the canvassing of the votes in the election, under
113-23 the general supervision of the board, and a certification of the
113-24 results by the board at a called meeting.
113-25 (g) When reduced to writing the minutes shall become a part
114-1 of the permanent records of the pension system to be filed in the
114-2 office of the secretary of the board. The minutes are evidence of
114-3 the matters contained in the minutes and are admissible in all
114-4 courts and proceedings.
114-5 (h) Notwithstanding any amendment adopted under this
114-6 section, contributions by the city to the fund shall be the same as
114-7 provided for under Section 4.02(c) of this article. Any change in
114-8 the rate of the city's contributions to the fund may only be made
114-9 in accordance with Section 4.02(a) of this article.
114-10 PART 8. TREATMENT UNDER FEDERAL AND STATE LAW
114-11 Sec. 8.01. QUALIFICATION UNDER FEDERAL TAX LAW. (a) The
114-12 plans within the pension system and the assets of the fund are
114-13 intended to qualify under Section 401 of the code, be exempt from
114-14 federal income taxes under Section 501(a) of the code, and conform
114-15 at all times to applicable requirements of law, regulations, and
114-16 orders of duly constituted federal governmental authorities.
114-17 Accordingly, if any provision of this article is subject to more
114-18 than one construction, one of which will permit the qualification
114-19 of a plan that is within the pension system, that construction that
114-20 will permit the plan to qualify and conform will prevail.
114-21 (b) The plans within the pension system as well as the
114-22 assets of the fund shall be maintained for the exclusive benefit of
114-23 members and their beneficiaries. At no time before the termination
114-24 of all the plans within the pension system and the satisfaction of
114-25 all liabilities with respect to members and their beneficiaries
115-1 under all plans shall any part of the principal or interest from
115-2 the assets of the fund be used for or diverted to purposes other
115-3 than the exclusive benefit of the members and beneficiaries.
115-4 (c) Notwithstanding any other provisions of this article,
115-5 the pension provided with respect to any member may not exceed an
115-6 annual benefit computed in accordance with the limitations
115-7 prescribed by this subsection.
115-8 (1) The maximum annual benefit payable in any
115-9 limitation year to a member may not exceed the lesser of:
115-10 (A) $90,000; or
115-11 (B) 100 percent of a member's 415 compensation
115-12 averaged over the three consecutive limitation years, or the actual
115-13 number of limitation years for a member whose total pension service
115-14 is less than three consecutive limitation years, during which the
115-15 member had the greatest aggregate 415 compensation from the city.
115-16 (2) Benefits provided to a member under this article
115-17 and under any defined benefit plan or plans maintained by the city
115-18 shall be aggregated for purposes of determining whether the
115-19 limitations in Subdivision (1) of this subsection are met. If the
115-20 aggregate benefits otherwise payable from any qualified plans
115-21 created under this article and any other defined benefit plan or
115-22 plans maintained by the city would otherwise exceed the limitations
115-23 of Subdivision (1) of this subsection, the reductions in benefits
115-24 shall first be made to the extent possible from the other plan or
115-25 plans.
116-1 (3) The adjustments on retirement are the following:
116-2 (A) If the annual benefit begins before a member
116-3 attains age 62, the $90,000 limitation, as adjusted, shall be
116-4 reduced in a manner prescribed by the secretary of the treasury.
116-5 However, that adjustment may not reduce the member's annual benefit
116-6 below $75,000, if the member's benefit begins after age 55, or the
116-7 actuarial equivalent of $75,000 beginning at age 55 if benefits
116-8 begin before age 55. Furthermore, except as provided by Paragraph
116-9 (C) of this subdivision, an adjustment may not reduce the member's
116-10 annual benefit below $50,000, regardless of the age at which the
116-11 benefit begins.
116-12 (B) If the annual benefit begins after a member
116-13 attains age 65, the $90,000 limitation, as adjusted, will be
116-14 increased so that it is the actuarial equivalent of the $90,000
116-15 limitation at age 65.
116-16 (C) If a member's benefits begin before the
116-17 member has at least 15 years of pension service as a full-time
116-18 employee of the police or fire department, or both, including
116-19 credit for full-time service in the armed forces of the United
116-20 States, Paragraphs (A) and (B) of this subdivision shall be applied
116-21 by substituting "social security retirement age" for "age 62" and
116-22 for "age 65," and the last two sentences of Paragraph (A) of this
116-23 subdivision do not apply in computing the benefit limitation for
116-24 that member.
116-25 (D) The portion of a member's benefit that is
117-1 attributable to the member's own contributions is not part of the
117-2 annual benefit subject to the limitations of Subdivision (1) of
117-3 this subsection. Instead, the amount of those contributions is
117-4 treated as an annual addition to a qualified defined contribution
117-5 plan maintained by the city.
117-6 (4)(A) The dollar limitation on annual benefits
117-7 provided by Subdivision (1) of this subsection, and the $50,000
117-8 limitation provided by Subdivision (3) of this subsection, but not
117-9 the $75,000 limitation provided by that subsection, shall be
117-10 adjusted annually as provided by Section 415(d) of the code and the
117-11 regulations prescribed by the secretary of the treasury. The
117-12 adjusted limitation is effective as of January 1 of each calendar
117-13 year and is applicable to limitation years ending with or within
117-14 that calendar year.
117-15 (B) The limitation provided by this paragraph
117-16 for a member who has separated from service with a vested right to
117-17 a pension shall be adjusted annually as provided by Section 415(d)
117-18 of the code and the regulations prescribed by the secretary of the
117-19 treasury.
117-20 (5) The following interest rate assumptions shall be
117-21 used in computing the limitations under this section:
117-22 (A) For the purpose of determining the portion
117-23 of the annual benefit that is purchased with member contributions,
117-24 the interest rate assumption is 8.5 percent, compounded annually,
117-25 for plan years beginning before 1988 and 120 percent of the federal
118-1 mid-term rate, as in effect under Section 1274 of the code,
118-2 compounded annually, for plan years beginning after 1987.
118-3 (B) For the purpose of adjusting the annual
118-4 benefit to a straight life annuity, the interest rate assumption is
118-5 five percent, unless a different rate is required by the secretary
118-6 of the treasury.
118-7 (C) For the purpose of adjusting the $90,000
118-8 limitation after a member attains age 65, the interest rate
118-9 assumption is five percent, unless a different rate is required by
118-10 the secretary of the treasury, and the mortality decrement shall be
118-11 ignored to the extent that a forfeiture does not occur at death.
118-12 (6) For purposes of Subdivisions (1) and (3) of this
118-13 subsection, an adjustment under Section 415(d) of the code may not
118-14 be taken into account before the limitation year for which that
118-15 adjustment first takes effect. For purposes of Subdivisions (1)
118-16 and (5) of this subsection, an adjustment is not required for the
118-17 value of qualified joint and survivor annuity benefits,
118-18 preretirement death benefits, postretirement medical benefits, or
118-19 postretirement cost-of-living increases made in accordance with
118-20 Section 415(d) of the code and Section 1.415-3(c) of the Income Tax
118-21 Regulations.
118-22 (7) This plan may pay an annual benefit to any member
118-23 in excess of the member's maximum annual benefit otherwise allowed
118-24 if:
118-25 (A) the annual benefit derived from the city's
119-1 contributions under any qualified plans within this article and all
119-2 defined benefit plans maintained by the city does not in the
119-3 aggregate exceed $10,000 for the limitation year or for any prior
119-4 limitation year; and
119-5 (B) the member has not at any time participated
119-6 in a defined contribution plan maintained by the city.
119-7 For purposes of this subdivision, member contributions to the
119-8 plan are not considered a separate defined contribution plan
119-9 maintained by the city.
119-10 (8) If a member has less than 10 years of pension
119-11 service in the plan at the time the member begins to receive
119-12 benefits under the plan, the $90,000 limitation, as adjusted, shall
119-13 be reduced by multiplying the limitation by a fraction in which the
119-14 numerator is the number of years of pension service and the
119-15 denominator is 10; provided, however, that the fraction may not be
119-16 less than one-tenth. The 100 percent limitation of Subdivision
119-17 (1)(B) of this subsection, and the $10,000 limitation of
119-18 Subdivision (7) of this subsection shall be reduced in the same
119-19 manner as provided by this subdivision, except the numerator shall
119-20 be the number of years of employment with the city rather than
119-21 years of pension service.
119-22 (9) If a member is or has been a participant in one or
119-23 more defined benefit plans and one or more defined contribution
119-24 plans maintained by the city, the following provisions shall apply:
119-25 (A) The sum of the defined benefit plan fraction
120-1 and the defined contribution plan fraction for any limitation year
120-2 may not exceed 1.0.
120-3 (B) The defined benefit plan fraction for any
120-4 limitation year is a fraction in which:
120-5 (I) the numerator is the projected annual
120-6 benefit of a member, determined as of the close of the limitation
120-7 year pursuant to Section 1.415-7(b)(3) of the Income Tax
120-8 Regulations; and
120-9 (II) the denominator is the lesser of:
120-10 (i) the product of 1.25 and the
120-11 maximum dollar limitation provided by Subdivision (1)(A) of this
120-12 subsection, as adjusted, for the limitation year; or
120-13 (ii) the product of 1.4 and the
120-14 amount that may be taken into account under Subdivision (1)(B) of
120-15 this subsection for the limitation year.
120-16 (C) The defined contribution plan fraction for
120-17 any limitation year is a fraction in which:
120-18 (I) the numerator is the sum of the annual
120-19 additions to the member's account as of the close of the limitation
120-20 year; and
120-21 (II) the denominator is the sum of the
120-22 lesser of the following amounts determined for the limitation year
120-23 and each prior year of service with the city:
120-24 (i) the product of 1.25 and the
120-25 dollar limitation in effect under Section 415(c)(1)(A) of the code
121-1 for the limitation year, determined without regard to Section
121-2 415(c)(6) of the code; or
121-3 (ii) the product of 1.4 and the
121-4 amount that may be taken into account under Section 415(c)(1)(B) of
121-5 the code for the limitation year beginning before January 1, 1987;
121-6 the annual additions may not be recomputed to treat all member
121-7 contributions as an annual addition.
121-8 (D) If the sum of the defined benefit plan
121-9 fraction and the defined contribution plan fraction exceeds 1.0 in
121-10 any limitation year for any member of any plan within the pension
121-11 system, the administrator shall limit, to the extent necessary, the
121-12 annual additions to the member's account for that limitation year.
121-13 If after limiting to the extent possible the annual additions to
121-14 the member's account for the limitation year, the sum of the
121-15 defined benefit plan fraction and the defined contribution plan
121-16 fraction still exceeds 1.0, the administrator shall adjust the
121-17 benefits under the defined benefit plan fraction so that the sum of
121-18 both fractions shall not exceed 1.0 in any limitation year for the
121-19 member.
121-20 (10) For purposes of determining the limits provided
121-21 by this section, all qualified defined benefit plans, whether
121-22 terminated or not, ever maintained by or contributed to by the
121-23 city, shall be treated as one defined benefit plan, and all
121-24 qualified defined contribution plans, whether terminated or not,
121-25 ever maintained by or contributed to by the city, shall be treated
122-1 as one defined contribution plan.
122-2 (11) Notwithstanding anything contained in this
122-3 section to the contrary, the limitations, adjustments, and other
122-4 requirements prescribed by this section shall at all times comply
122-5 with the requirements of Section 415 of the code and all
122-6 regulations promulgated under the code. If any provision of
122-7 Section 415 of the code is repealed or is not enforced by the
122-8 Internal Revenue Service, that provision may not reduce the
122-9 benefits of any member after the effective date of the repeal of
122-10 the provision or during the period in which the provision is not
122-11 enforced.
122-12 (d) A member's retirement pension may not begin later than
122-13 April 1 of the year after the later of the year in which the member
122-14 leaves active service or the year in which the member attains age
122-15 70-1/2. Benefits to a qualified beneficiary may not begin later
122-16 than one year after the date of the member's death.
122-17 (e) Any member or beneficiary who receives any distribution
122-18 from any plan within the system that is an eligible rollover
122-19 distribution as defined by Section 402(f)(2)(A) of the code is
122-20 entitled to have that distribution transferred directly to another
122-21 eligible retirement plan of the member's or beneficiary's choice on
122-22 providing direction regarding that transfer to the administrator in
122-23 accordance with procedures established by the administrator.
122-24 (f) The annual compensation taken into account under this
122-25 article may not exceed $200,000 for any calendar year. For a Group
123-1 A member the term "annual compensation" means the aggregate of the
123-2 member's base pay. For a Group B member the term "annual
123-3 compensation" means the aggregate of the member's computation pay
123-4 for any given plan year. The $200,000 limit shall be adjusted on
123-5 January 1 of each year at the same time and in the same manner as
123-6 provided by Section 415(d) of the code. In determining the
123-7 compensation of a member for purposes of this limitation, the
123-8 family aggregation rules of Section 414(q)(6) of the code apply,
123-9 except that the term "family member" includes only the spouse of
123-10 the member and any lineal descendants of the member who have not
123-11 attained age 19 at the end of the plan year. If as a result of
123-12 this family aggregation requirement, the $200,000 limit is
123-13 exceeded, the limitation shall be prorated among the affected
123-14 individuals in proportion to each individual's compensation as
123-15 determined before application of the limit.
123-16 Sec. 8.02. EXCESS BENEFIT PLAN FOR POLICE OFFICERS AND FIRE
123-17 FIGHTERS. On the enactment of federal legislation enabling public
123-18 retirement systems to establish excess benefit plans for the
123-19 benefit of employees for whom additional benefits from retirement
123-20 plans qualified under Section 401 of the code would exceed the
123-21 limitations of Section 415 of the code, there is created outside
123-22 the pension system a separate, nonqualified excess benefit plan
123-23 containing the following terms and provisions:
123-24 (a)(1) All definitions prescribed by Section 2.01 of
123-25 this article are applicable to the plan created pursuant to this
124-1 section except:
124-2 (A) if a different definition is set forth
124-3 in this subsection; or
124-4 (B) the context in which a term is used in
124-5 this section indicates a different meaning is clearly intended than
124-6 that prescribed by Section 2.01 of this article.
124-7 (2) "Excess benefit plan" means this separate,
124-8 nonqualified, unfunded excess benefit plan as created by this
124-9 section for the benefit of eligible members, as amended or restated
124-10 from time to time.
124-11 (3) "Qualified plan" means any plan maintained
124-12 within the pension system or maintained by the city outside the
124-13 pension system for the exclusive benefit of some or all of the
124-14 employees of the city if the plan has been found by the Internal
124-15 Revenue Service to be qualified or has been treated by the city as
124-16 a qualified plan under Section 401 of the code.
124-17 (4) "Maximum benefit" means the retirement
124-18 benefit a member or, the spouse, any child, or any dependent parent
124-19 of a member if those persons are entitled, is entitled to receive
124-20 from all qualified plans in any month after giving effect to
124-21 Section 8.01 of this article and any similar provisions of any
124-22 other qualified plans designed to conform to Section 415 of the
124-23 code.
124-24 (5) "Excess benefit participant" means any
124-25 member whose retirement benefits as determined on the basis of all
125-1 qualified plans without regard to the limitations of Section 8.01
125-2 of this article and comparable provisions of other qualified plans
125-3 would exceed the maximum benefit permitted under Section 415 of the
125-4 code.
125-5 (6) "Unrestricted benefit" means the monthly
125-6 retirement benefit a member, or the spouse or any child of a
125-7 member, would have received under the terms of all qualified plans
125-8 except for the restrictions of Section 8.01 of this article and any
125-9 similar provisions of any other qualified plans designed to conform
125-10 to Section 415 of the code.
125-11 (b)(1) An excess benefit participant who is receiving
125-12 benefits from an applicable qualified plan is entitled to a monthly
125-13 benefit under this excess benefit plan in an amount equal to the
125-14 lesser of:
125-15 (A) the member's unrestricted benefit less
125-16 the maximum benefit; or
125-17 (B) the amount by which the member's
125-18 monthly benefit from the qualified plan or plans approved by the
125-19 members has been reduced due to the limitations of Section 415 of
125-20 the code.
125-21 (2) In the case of the death of an excess
125-22 benefit participant whose spouse or child is entitled to
125-23 preretirement or postretirement death benefits under a qualified
125-24 plan, the excess benefit participant's surviving spouse or child is
125-25 entitled to a monthly benefit under the excess benefit plan equal
126-1 to the benefit determined in accordance with the qualified plans
126-2 without regard to the limitations under Section 8.01 of this
126-3 article or Section 415 of the code, less the maximum benefit.
126-4 (3) Unless the excess benefit participant makes
126-5 a timely election to the contrary, a retirement benefit payable
126-6 under this excess benefit plan shall be paid in the form and at the
126-7 time it would have been paid under the applicable qualified plan
126-8 except for the limitations under Section 415 of the code. However,
126-9 retirement benefits payable under this excess benefit plan shall be
126-10 paid at the time and in the form, including a single-sum
126-11 distribution, as the excess benefit participant elects from among
126-12 the benefit payment forms made available under the election form as
126-13 approved by the board. An excess benefit participant makes an
126-14 election under this subdivision by sending written notice to the
126-15 administrator on the election form approved by the board. Each
126-16 optional benefit form permitted under this excess benefit plan
126-17 shall be the actuarial equivalent of each other permitted benefit
126-18 form. On or after an excess benefit participant's leaving active
126-19 service with an entitlement to a retirement benefit under any
126-20 qualified plan approved by the members, a benefit under this
126-21 subdivision may be elected to be paid.
126-22 (c)(1) This plan shall be administered by the board,
126-23 and the administrator shall also carry out the business of the
126-24 board with respect to this excess benefit plan. Except as provided
126-25 to the contrary by this subsection, the rights, duties, and
127-1 responsibilities of the board and administrator shall be the same
127-2 for this excess benefit plan as for the qualified pension plans
127-3 within the pension system.
127-4 (2) The qualified actuary employed pursuant to
127-5 Section 4.08 of this article is responsible for determining the
127-6 amount of benefits that may not be provided under the qualified
127-7 plans solely by reason of the limitations of Section 415 of the
127-8 code and thus the amount of city contributions that will be made to
127-9 this excess benefit plan rather than to a qualified plan.
127-10 (3) The legal advisors described by Section 3.03
127-11 of this article shall also provide advice to the board for this
127-12 excess benefit plan.
127-13 (d) Contributions may not be accumulated under this
127-14 excess benefit plan to pay future retirement benefits. Instead,
127-15 each payment of city contributions that would otherwise be made to
127-16 the fund pursuant to Section 4.02 of this article or comparable
127-17 provisions of other qualified plans approved by the members shall
127-18 be reduced by the amount determined by the administrator as
127-19 necessary to meet the requirements for retirement benefits under
127-20 this excess benefit plan until the next payment of city
127-21 contributions is expected to be made to the fund by the city. The
127-22 city shall then pay to this excess benefit plan, out of the
127-23 withheld city contributions no earlier than the 14th day before the
127-24 date of each distribution of monthly retirement benefits is
127-25 required to be made from this excess benefit plan, the amount
128-1 necessary to satisfy the obligation to pay this excess benefit plan
128-2 monthly retirement benefits. The administrator shall satisfy the
128-3 obligation of this excess benefit plan to pay retirement benefits
128-4 out of the city contributions so transferred for that month. The
128-5 city contributions otherwise required to the pension system
128-6 pursuant to Section 4.02 of this article and any other qualified
128-7 plan approved by the members shall be divided into those
128-8 contributions required to pay retirement benefits pursuant to this
128-9 section and those contributions paid into and accumulated to pay
128-10 the maximum benefits required under the qualified plans. City
128-11 contributions made to provide retirement benefits pursuant to this
128-12 section may not be commingled with the monies of the fund or any
128-13 other qualified plan.
128-14 (e) Amendments to this excess benefit plan shall be
128-15 made in the same manner provided by Section 7.01 of this article.
128-16 Sec. 8.03. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS.
128-17 (a) A portion of the fund or benefit or amount awarded to any
128-18 primary party qualified survivor or beneficiary of a member's DROP
128-19 account under this article may not be held, seized, taken,
128-20 subjected to, or detained or levied on by virtue of any execution,
128-21 attachment, garnishment, injunction, or other writ, order, or
128-22 decree, or any process or proceedings issued from or by any court
128-23 for the payment or satisfaction, in whole or in part, of any debt,
128-24 damage, claim, demands, or judgment against any person entitled to
128-25 benefits from any plan within the pension system. The fund or any
129-1 claim against the fund may not be directly or indirectly assigned
129-2 or transferred, and any attempt to transfer or assign the fund or a
129-3 claim against the fund is void.
129-4 (b) A benefit under any plan created or existing pursuant to
129-5 this article or Article 6243a is subject to division pursuant to
129-6 the terms of a qualified domestic relations order. The
129-7 administrator shall determine the qualifications of a domestic
129-8 relations order according to a uniform, consistent procedure
129-9 approved by the board. The total benefit payable to a primary
129-10 party or to an alternate payee under a qualified domestic relations
129-11 order may not actuarially exceed the benefits to which a primary
129-12 party would be entitled in the absence of the qualified domestic
129-13 relations order. In calculating the alternate payee's benefits
129-14 under a qualified domestic relations order, the interest rate is
129-15 the rate used by the pension system's actuary in the actuarial
129-16 evaluation for that year, except that the minimum interest rate for
129-17 this purpose is the minimum required by Section 414 of the code.
129-18 (c) This section does not preclude the payment of death
129-19 benefits to a support trust for certain surviving children of a
129-20 primary party pursuant to Section 6.06(n) of this article.
129-21 SECTION 2. The importance of this legislation and the
129-22 crowded condition of the calendars in both houses create an
129-23 emergency and an imperative public necessity that the
129-24 constitutional rule requiring bills to be read on three several
129-25 days in each house be suspended, and this rule is hereby suspended,
130-1 and that this Act take effect and be in force from and after its
130-2 passage, and it is so enacted.