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. Except to the extent that some provisions are
1-6 incorporated from plans amended pursuant to the statute, and thus
1-7 may have their own respective effective dates that may differ,
1-8 Article 6243a-1 of Title 109, Revised Statutes, is hereby amended,
1-9 effective January 1, 1993, to read as follows:
1-10 Art. 6243a-1.
1-11 PENSION SYSTEM FOR POLICE OFFICERS AND
1-12 FIREFIGHTERS IN CERTAIN CITIES
1-13 Sec. 1. AMENDMENT, RESTATEMENT AND CONSOLIDATION OF FORMER ARTICLE
1-14 6243a -- PURPOSE.
1-15 The purpose of this Act is to restate and amend Chapter 4 of
1-16 the Acts of the 43rd Legislature, 1st Called Session (otherwise
1-17 referred to as former Article 6243a of Title 109 of the Revised
1-18 Statutes) in order to permit the consolidation of the terms of
1-19 certain pension plans created pursuant to Sections 1, 11A and 11B
1-20 of said Act (which may commonly be denominated as the "Old Plan"
1-21 and "Plan A" and "Plan B", respectively), and thereby more simply
1-22 and accurately reflect the joint administration of said plans.
1-23 The provisions of this Act are entirely consistent with all
2-1 of the terms and conditions relating to benefits and benefit
2-2 entitlement previously contained in the plans created pursuant to
2-3 Sections 1, 11A and 11B of former Article 6243a. It is neither the
2-4 purpose nor the intent of this Act to take away or reduce any
2-5 benefits contained in the plans created pursuant to Sections 1, 11A
2-6 and 11B of former Article 6243a.
2-7 Sec. 2. DEFINITIONS.
2-8 (a) "Article 6243a" refers to Chapter 4, Acts of the 43rd
2-9 Legislature, 1st Called Session, 1933 (former Article 6243a of the
2-10 Revised Statutes), pertaining to a pension system for police
2-11 officers and firefighters and fire alarm operators in the City.
2-12 (b) "Active Service" shall mean any period that a Member
2-13 receives compensation as a Police Officer or Firefighter from
2-14 either Department for services rendered.
2-15 (c) "Administrator" shall mean the person designated by the
2-16 Board to supervise the affairs of the Pension System.
2-17 (d) "Alternate Payee" has the meaning given the term in
2-18 Section 414 of the Code or any successor provision adopted
2-19 thereafter.
2-20 (e) "Annual Additions" shall mean the sum of the following
2-21 amounts credited to a Member's Account or accounts under any
2-22 defined contribution plan or plans maintained by the City for the
2-23 Limitation Year:
2-24 (1) City contributions;
2-25 (2) Member contributions, other than rollover
3-1 contributions from a plan maintained by any employer other than the
3-2 City;
3-3 (3) forfeitures; and
3-4 (4) amounts allocated after March 31, 1984, to an
3-5 individual medical account, as defined in section 415(1)(2) of the
3-6 Code, that is part of a pension or annuity plan maintained by the
3-7 City.
3-8 The amounts described in Section 2(e)(4) are not Annual
3-9 Additions for the purpose of computing the percentage limitation
3-10 described in section 415(c)(1)(B) of the Code. For any Limitation
3-11 Year beginning prior to January 1, 1987, only that portion of
3-12 Member contributions equal to the lesser of Member contributions in
3-13 excess of six percent (6%) of 415 Compensation or one-half (1/2) of
3-14 Member contributions to The Combined Pension Plan or any qualified
3-15 defined contribution plan maintained by the City are treated as
3-16 Annual Additions.
3-17 (f) "Annual Benefit" shall mean the aggregate benefit
3-18 attributable to City contributions payable annually under the terms
3-19 of the Combined Pension Plan exclusive of any benefit not required
3-20 to be considered for purposes of applying the limitations of
3-21 section 415 of the Code to the combined Pension Plan, payable in
3-22 the form of a straight life annuity commencing at age sixty-two
3-23 (62) with no ancillary benefits. Solely for purposes of computing
3-24 the limitations under the Combined Pension Plan, benefits actually
3-25 payable to a Pensioner are adjusted to the actuarial equivalent of
4-1 a straight life annuity pursuant to Section 8.01 even though no
4-2 Member may actually receive a benefit in the form of a straight
4-3 life annuity.
4-4 (g) "Assignment Pay" means monthly pay, in addition to
4-5 salary, granted to a Group B Member and authorized by the City
4-6 Council for the performance of certain enumerated duty assignments.
4-7 (h) "Base Pay" refers to the maximum monthly civil service
4-8 pay, as from time to time established by the City for a Police
4-9 Officer or Firefighter, exclusive of any and all other forms of
4-10 compensation.
4-11 (i) "Base Pension" shall mean the amount of retirement,
4-12 death, or disability benefits as computed under the provisions of
4-13 this Act at the time a Group B Member leaves Active Service, dies
4-14 or becomes disabled; and such Base Pension shall always be the base
4-15 figure used to compute any changes in a Group B Member's benefit
4-16 occurring after a Group B Member left Active Service.
4-17 (j) "Board" shall mean the Board of Trustees created for the
4-18 purpose of administering the Pension System, and shall formally be
4-19 known as the "Board of Trustees of the __________ Police and Fire
4-20 Pension System."
4-21 (k) "Child," "children," and "child(ren") shall mean (an)
4-22 unmarried person(s) under the age of nineteen (19) whose natural or
4-23 adoptive parent is a Primary Party.
4-24 (l) "City" shall mean each municipality having a population
4-25 of more than ______ and less than ______, according to the most
5-1 recent federal census.
5-2 (m) "City Council" shall mean the governing body of the
5-3 City.
5-4 (n) "City Service Incentive Pay" means annual pay, adjusted
5-5 by the City from time to time, in addition to the salary of a
5-6 Member granted to the Member under the authority of the City
5-7 charter and received by the Member during Active Service.
5-8 (o) "Code" shall mean the United States Internal Revenue
5-9 Code of 1986, as amended, and any successor thereof.
5-10 (p) "Combined Pension Plan" shall mean any pension plan
5-11 created pursuant to the terms of this Act.
5-12 (q) "Computation Pay" shall be the sum of the following:
5-13 (1) The monthly rate of pay a Group B Member is due
5-14 for the highest civil service rank he holds, from time to time, as
5-15 a result of a competitive examination; plus
5-16 (2) The monthly rate of pay a Group B Member is due as
5-17 Educational Incentive Pay; plus
5-18 (3) The monthly rate of pay a Group B Member is due as
5-19 Longevity Pay, when and as authorized by the Legislature; plus
5-20 (4) The City Service Incentive Pay, calculated on a
5-21 monthly basis, of a Group B Member.
5-22 Computation Pay shall be used in determining the amount of
5-23 the Group B Member's contribution under Section 4.03(d) of this Act
5-24 and in determining the Base Pension figure of any benefits to be
5-25 paid to the Group B Member or his Qualified Survivors.
6-1 Any compensation received by a Group B Member, other than
6-2 that noted in Sections 2(q)(1)-(4) (for example, compensation for
6-3 overtime work and the monthly rate of pay a Member would receive
6-4 from the City in the form of Assignment Pay), will not be
6-5 considered in determining the Computation Pay of a Group B Member.
6-6 Any lump-sum payments for compensatory time, unused sick leave,
6-7 unused vacation time, or City Service Incentive Pay payable after a
6-8 Group B Member's leaving Active Service, death, disability,
6-9 resignation, or any other type of termination shall not be
6-10 considered in determining the Computation Pay of any Group B
6-11 Member.
6-12 Computation Pay for a Group B Member for any given month shall be
6-13 determined on the monthly rates of pay due the Group B Member for
6-14 the entire month. In the event that a Group B Member works less
6-15 than his assigned schedule for any given month, the Computation Pay
6-16 for such Group B Member shall be prorated for the portion of the
6-17 month that the Group B Member worked.
6-18 (r) "Educational Incentive Pay" means incentive pay designed
6-19 to reward completion of certain hours of college credit, and
6-20 adjusted by the City from time to time, which incentive is paid to
6-21 a Member in addition to his salary.
6-22 (s) "Department" shall mean either the Police Department of
6-23 the City, the Fire Department of the City, or both the Police and
6-24 Fire Departments of the City together.
6-25 (t) "Dependent Parent" shall mean the natural parent or
7-1 parent who had adopted a Primary Party who immediately prior to the
7-2 death of the Primary Party received over half of his financial
7-3 support from such Primary Party.
7-4 (u) "Disability Retirement" shall mean any period that a
7-5 Pensioner receives a disability pension.
7-6 (v) "Group A Member" shall mean any Police Officer, or
7-7 Firefighter described in Section 5.01(a) of this Act.
7-8 (w) "Group B Member" shall mean any Police Officer, or
7-9 Firefighter described in Section 5.01(b) of this Act.
7-10 (x) "415 Compensation" shall mean a Member's wages, salaries
7-11 and other amounts received for personal services actually rendered
7-12 in the course of employment with the City during a Limitation year,
7-13 but shall not include:
7-14 (1) contributions made by the City to a plan of
7-15 deferred compensation, or simplified employee pension plan, to the
7-16 extent such contributions are excludable from the Member's gross
7-17 income;
7-18 (2) any distributions from a plan of deferred
7-19 compensation, or simplified employee pension plan, to the extent
7-20 such distributions are excludable from the Member's gross income;
7-21 (3) other amounts that received special tax benefits,
7-22 such as, but not limited to, premiums for group term life
7-23 insurance, to the extent that the premiums are not includable in
7-24 the gross income of the Member, or contributions made by the City,
7-25 including contributions toward the purchase of an annuity described
8-1 in section 403(b) of the Code (whether or not contributed pursuant
8-2 to a salary reduction agreement and whether or not the amounts are
8-3 actually excludable from the gross income of the Member).
8-4 (4) for any Limitation Year beginning after December
8-5 31, 1988, compensation in excess of Two Hundred Thousand Dollars
8-6 ($200,000.00) adjusted in a manner permitted under section 415(d)
8-7 of the Code.
8-8 (y) "Fund" shall mean all funds and property held for the
8-9 benefit of all persons who are or who may become entitled to any
8-10 benefits under any plan within the Pension System, together with
8-11 all income, profits or other increment thereon.
8-12 (z) "He," "him," "his," and all pronouns and terms used in
8-13 the masculine gender shall be used to mean a person whose sex is
8-14 not specified and shall be used when referring to both male and
8-15 female Primary Parties or Qualified Survivors.
8-16 (aa) "Health Director" shall mean any qualified physician
8-17 designated, from time to time, by the Board.
8-18 (bb) "Limitation Year" shall mean the respective plan year
8-19 of the Combined Pension Plan and any defined benefit plan or
8-20 defined contribution plan of the City in which a Member
8-21 participates.
8-22 (cc) "Legislature" shall mean the Legislature of the State
8-23 of Texas.
8-24 (dd) "Longevity Pay" (which may be referred to by the City
8-25 as "Service Pay") means pay in addition to the salary of a Member
9-1 granted under the provisions of Section 141.032, Local Government
9-2 Code or any successor statute thereto, for each year of Active
9-3 Service completed by such Member in either Department.
9-4 (ee) "Member" shall mean both Group A and Group B Members.
9-5 (ff) "Member's Account" shall mean any account or accounts
9-6 established and maintained for a Member with respect to the
9-7 Member's total interest in a defined contribution plan or plans
9-8 under this Act or maintained by the City resulting in Annual
9-9 Additions.
9-10 (gg) "Old Plan" shall mean any pension plan created pursuant
9-11 to Section 1 of Article 6243a.
9-12 (hh) "Pensioner", "Group A Pensioner" or "Group B Pensioner"
9-13 shall mean a former Member who is on either a Service or Disability
9-14 Retirement.
9-15 (ii) "Pension Service" shall mean the time, in years, and
9-16 prorated for fractional years, that a Member has contributed to the
9-17 Fund under the terms of the Combined Pension Plan or any plan
9-18 within the Pension System.
9-19 (jj) "Pension System" shall be the name of the entity which
9-20 consists of the Fund and any plans created pursuant to this Act or
9-21 any successor statute, which are intended to be qualified under
9-22 section 401(a) of the Code.
9-23 (kk) "Plan A" shall mean any plan created pursuant to
9-24 Section 11A of Article 6243a.
9-25 (ll) "Plan B" shall mean any plan created pursuant to
10-1 Section 11B of Article 6243a.
10-2 (mm) "Police Officer" or "Firefighter" shall mean "Police
10-3 Officer", "Firefighter," "Fire Alarm Operator," "Fire Inspector,"
10-4 "Apprentice Police Officer," "Apprentice Firefighter" or similar
10-5 categories of employees of either Department as defined in the
10-6 classifications of the personnel department of the City.
10-7 (nn) "Primary Party", "Group B Primary Party" or "Group A
10-8 Primary Party" shall mean a Member, former Member, or Pensioner.
10-9 (oo) "Qualified Actuary" shall mean either:
10-10 (1) an individual who is a Fellow of the Society of
10-11 Actuaries or a Fellow of the Conference of Actuaries in Public
10-12 Practice or a member of the American Academy of Actuaries; or
10-13 (2) A firm which employs one or more persons who are
10-14 Fellows of the Society of Actuaries or Fellows of the Conference of
10-15 Actuaries in Public Practice or, members of the American Academy of
10-16 Actuaries; provided, however, that such persons be the individuals
10-17 providing services to the Pension System.
10-18 (pp) "Qualified Domestic Relations Order" has the meaning
10-19 given the term in section 414 of the Code or any successor
10-20 provision adopted thereafter.
10-21 (qq) "Qualified Survivor" (or similar terms) shall mean a
10-22 person who, by the terms elsewhere provided herein (and not by
10-23 reason of this definition), is eligible to receive survivor
10-24 benefits after the death of a Primary Party, and shall include the
10-25 following:
11-1 (1) A surviving Spouse, provided such Spouse was
11-2 continuously married to the Primary Party both at the date when
11-3 such Primary Party (as a Member), either voluntarily or
11-4 involuntarily, left Active Service and at the date of the Primary
11-5 Party's death;
11-6 (2) All surviving, unmarried, legitimate, and legally
11-7 adopted Children under nineteen (19) years of age, provided they
11-8 were born or adopted before the Primary Party (as a Member), either
11-9 voluntarily or involuntarily, left Active Service. Legitimate
11-10 Children born after a Member left Active Service shall also be
11-11 considered Qualified Survivors if the mother was pregnant before
11-12 the Member either voluntarily or involuntarily left Active Service.
11-13 (3) The surviving Dependent Parent(s) of the Primary
11-14 Party; provided, however, the Primary Party is not survived by a
11-15 Spouse or Child(ren) eligible for benefits.
11-16 (rr) "Service Retirement" shall mean any period that a
11-17 Pensioner receives a retirement pension, but not to include any
11-18 period or periods of Disability Retirement.
11-19 (ss) "Spouse" means the husband or wife of a Primary Party
11-20 recognized under the laws of the State of Texas.
11-21 (tt) "Total Wages and Salaries" shall mean all pay received
11-22 by the members of any plan within the Pension System from the City,
11-23 excluding any lump sum payments for unused sick time or unused
11-24 vacation time accrued by any such member, and payable as the result
11-25 of the Member's death, disability, resignation, or any other reason
12-1 for leaving Active Service.
12-2 (uu) "Trustee" shall mean a member of the Board.
12-3 Sec. 3. ADMINISTRATION.
12-4 Sec. 3.01. BOARD OF TRUSTEES.
12-5 (a) The Pension System shall be administered by the Board.
12-6 (b) The Board shall consist of seven (7) Trustees who shall
12-7 be selected and shall serve as follows:
12-8 (1) The City Council shall name from among its members
12-9 three (3) Council members who shall serve as Trustees of the Board.
12-10 The Council member Trustees shall be named as soon as possible
12-11 after the first Monday in May of each odd-numbered year and shall
12-12 serve for the term of office to which they were elected as Council
12-13 members. In the event there is a vacancy in any of the Council
12-14 member Trustees' seats on the Board, the City Council shall name
12-15 another Council member to serve out the remainder of the unexpired
12-16 term.
12-17 (2) The Police and Fire Department members of the
12-18 pension plans within the Pension System shall separately, by
12-19 Department and not by plan, elect from among their respective
12-20 membership two (2) active Police Officer and two (2) active
12-21 Firefighter Members. Upon their election, each of said Trustees
12-22 shall execute a written affirmation of their undertaking to
12-23 faithfully perform their duties to the Pension System. The Police
12-24 and Fire Department Trustees shall serve for terms of four (4)
12-25 years each, the terms being staggered so that one (1) term, but not
13-1 both from the same department, shall expire on June 1 of each
13-2 odd-numbered year. In the event a vacancy occurs among the Police
13-3 and Fire Department Trustees, the vacancy shall be filled in
13-4 accordance with the provisions of Section 3.01(d). The Police and
13-5 Fire Department Trustees shall continue to serve beyond the
13-6 expiration of their terms if their successors have neither been
13-7 elected nor affirmed in writing their undertaking to faithfully
13-8 perform their duties to the Pension System and shall continue to
13-9 serve until their successors are elected and have affirmed in
13-10 writing their undertaking to faithfully perform their duties to the
13-11 Pension System.
13-12 (c) In addition to the seven (7) Trustees of the Board there
13-13 shall be three (3) alternate Trustees of the Board who shall serve
13-14 on the Board during the absence of a regular Trustee, and who may,
13-15 regardless of their alternate Trustee status, serve on any
13-16 subcommittee of the Board from time to time constituted by the
13-17 Board. In addition, the alternate Trustees may, and generally
13-18 shall be expected to, attend all meetings of the Board and enter
13-19 into any discussion or deliberation, but may not vote unless
13-20 serving in the stead of a regular Trustee. Alternate Trustees
13-21 shall be kept fully appraised of all developments as any regular
13-22 Trustee, including when the Board deems appropriate, attending any
13-23 seminars and meetings as the Board approves. The alternate
13-24 Trustees shall be selected and shall serve as follows:
13-25 (1) The City Council shall name from among its members
14-1 one Council member who shall serve as an alternate Trustee of the
14-2 Board who may sit as a Trustee in the absence of any of the three
14-3 (3) Council Trustees. The Council alternate shall be selected in
14-4 the same manner as the regular Council Trustees and shall serve for
14-5 a like term.
14-6 (2) There shall be one (1) alternate Trustee from the
14-7 Police Department and one (1) alternate Trustee from the Fire
14-8 Department elected in the same manner as regular Trustees.
14-9 Alternate Trustees may only replace a regular Trustee from the same
14-10 Department. Alternate Trustees shall serve concurrent terms of
14-11 four (4) years expiring on June 1 of every second odd year.
14-12 Alternate Trustees shall serve beyond the expiration date of their
14-13 terms if necessary until their successors have been elected and
14-14 have affirmed in writing their undertaking to faithfully perform
14-15 their duties to the Pension System. In the event an alternate
14-16 Trustee cannot serve beyond the expiration date of his term, the
14-17 Board shall appoint a new alternate Trustee from the Department
14-18 from which the vacancy occurs to serve until a successor has been
14-19 elected and has affirmed in writing that he will undertake to
14-20 faithfully perform his duties to the Pension System.
14-21 In the event a vacancy occurs among the Police or Fire
14-22 Department alternate Trustees, for reasons other than the failure
14-23 to elect a successor alternate Trustee or the occurrence of a
14-24 vacancy among the regular Trustees of either Department, the Board
14-25 shall appoint a new alternate Trustee representing the Department
15-1 from which the vacancy occurs to serve as the alternate Trustee for
15-2 the remainder of the alternate Trustee's term.
15-3 A candidate will not be eligible for election to an
15-4 alternate Trustee position and to a regular Trustee Position during
15-5 the same election.
15-6 (d) In the event a vacancy occurs among the Police or Fire
15-7 Department Trustees, the alternate Trustee representing the
15-8 Department from which the vacancy occurs (the "Original Alternate
15-9 Trustee") shall then serve as the regular Trustee for the remainder
15-10 of the unexpired regular Trustee's term. Thereafter, the Board
15-11 shall appoint a new alternate Trustee from the same Department (the
15-12 "New Alternate") to serve for a period ending on the earlier of the
15-13 expiration of the regular Trustee's term or the Original Alternate
15-14 Trustee's term. If the Original Alternate Trustee's term has not
15-15 expired after sitting in place of the regular Trustee, then such
15-16 person shall serve out the remainder of his unexpired term. After
15-17 a new regular Trustee has been elected the Original Alternate
15-18 Trustee shall return to serve as an alternate Trustee until such
15-19 Trustee's term has expired. However, if the Original Alternate
15-20 Trustee, while an alternate Trustee, is elected to a full term as a
15-21 regular Trustee prior to his term as an alternate Trustee having
15-22 expired, then the term of the New Alternate shall extend until the
15-23 expiration of the Original Alternate Trustee's term.
15-24 (e) The election of the Trustees representing the Police and
15-25 Fire Departments shall be held under the supervision of the Board,
16-1 and the Board shall adopt such rules and regulations governing the
16-2 election procedure as it may deem appropriate, so long as such
16-3 rules and regulations are consistent with the generally accepted
16-4 principles of secret ballot and majority rule. Such rules and
16-5 regulations as may be adopted by the Board shall be recorded in the
16-6 minutes of the Board and shall be made available to the members of
16-7 any pension plan within the Pension System.
16-8 (f) The Board shall, in June of each odd-numbered year,
16-9 elect from among its Trustees a Chairman, Vice Chairman, and a
16-10 Deputy Vice Chairman, each to serve for two (2) year terms. In
16-11 addition, the Board may elect, if it so chooses, a Second Deputy
16-12 Vice Chairman to serve during the term of the incumbent Chairman.
16-13 The Vice Chairman shall be authorized to act in the stead of the
16-14 Chairman in all matters pertaining to the Board and in the absence
16-15 of both the Chairman and the Vice Chairman, the Deputy Vice
16-16 Chairman shall be authorized to act and in the absence of the
16-17 Chairman, Vice Chairman, and Deputy Vice Chairman, the duties shall
16-18 fall to the Second Deputy Vice Chairman.
16-19 (g) The Administrator, or in his absence a member of the
16-20 administrative staff designated by the Board, shall serve as the
16-21 Secretary of the Board.
16-22 (h) The Board shall serve without separate compensation from
16-23 the Fund, but with entitlement to any appropriate compensation from
16-24 the City as if they were performing their regular functions for the
16-25 Police or Fire Departments, and shall meet not less than once each
17-1 month and may meet at any time upon call of its Chairman.
17-2 (i) The Board shall have full power to make rules and
17-3 regulations pertaining to the conduct of its meetings and to the
17-4 operation of the Pension System so long as its rules are not
17-5 inconsistent with the terms of this Act, any pension plan within
17-6 the Pension System the laws of the State of Texas or the United
17-7 States to the extent applicable.
17-8 (j) The Board shall have full power, through the Chairman,
17-9 to issue process for witnesses and to administer oaths to witnesses
17-10 and examine witnesses as to any matter affecting retirement,
17-11 disability, or death benefits under the provisions of any pension
17-12 plan within the Pension System, and to compel witnesses to testify.
17-13 In addition the Board may request investigative services from
17-14 either Department in connection with any matter before the Board.
17-15 (k) The Board has the responsibility for the administration
17-16 of the Pension System and shall order payment from the Fund in
17-17 accordance with the terms of the appropriate plans within the
17-18 Pension System and such money shall not be paid except upon order
17-19 of the Board.
17-20 (l) The Board shall have full power to invest the assets of
17-21 the Fund in accordance with the provisions of Section 4.07 of this
17-22 Act.
17-23 (m) Four (4) Trustees of the Board shall constitute a quorum
17-24 at any duly called meeting; provided, however, that a Trustee from
17-25 the Police Department and a Trustee from the Fire Department must
18-1 be present to conduct business.
18-2 (n) No action may be taken by the Board in the absence of a
18-3 meeting, and no action shall be taken during such meeting without
18-4 the approval of a majority of the Trustees present. Only actions
18-5 of the Board taken or approved of during a meeting are binding upon
18-6 the Board, and no other written or oral statement or representation
18-7 made by any person shall be binding upon the Board or the Pension
18-8 System.
18-9 Sec. 3.02. PROFESSIONAL CONSULTANTS.
18-10 In addition to the authority of the Board to employ the
18-11 services of certain consultants set forth in this Act, the Board
18-12 shall have the authority to employ the services of any professional
18-13 consultant whenever the services of such consultant are deemed
18-14 necessary or desirable and in the best interests of the Pension
18-15 System. Such professional consultant shall receive such
18-16 compensation as may be determined by the Board in accordance with
18-17 the provisions of Section 4.01 of this Act.
18-18 Sec. 3.03. LEGAL ADVISOR.
18-19 (a) The City Attorney of the City may ex officio be the
18-20 legal advisor to the Board.
18-21 (b) The City Attorney or his representative shall attend all
18-22 meetings of the Board and shall advise the Board on any matter on
18-23 which the Board requests a legal opinion from the City Attorney.
18-24 (c) The Board may retain other attorney(s) to represent the
18-25 Board and/or to give advice. Compensation for such other
19-1 attorney(s) shall be made in accordance with the provisions of
19-2 Section 4.01 of this Act.
19-3 Sec. 3.04. APPOINTMENT OF ADMINISTRATOR.
19-4 (a) The Board shall have the authority to appoint an
19-5 Administrator to carry out the business of the Board and to keep a
19-6 record of the proceedings of the Board. The Administrator in
19-7 carrying out the business of the Board, within the scope of his
19-8 responsibility, shall not be considered a fiduciary with respect to
19-9 the Pension System.
19-10 (b) Subject to the approval of the Board, the Administrator
19-11 may select any number of persons to assist the Administrator.
19-12 (c) Both the Administrator and those persons selected to
19-13 assist the Administrator may be considered employees of the City.
19-14 Unless otherwise delegated to the Administrator, the Board shall
19-15 have the ultimate authority to retain or terminate the engagement
19-16 of any such persons.
19-17 Sec. 4. FINANCES.
19-18 Sec. 4.01. PAYMENT OF ADMINISTRATIVE AND PROFESSIONAL SERVICES
19-19 FEES.
19-20 (a) The Board shall pay for all costs of administration,
19-21 including but not limited to the cost of salaries of the
19-22 Administrator, Assistant Administrator, and administrative staff,
19-23 office expenses, adequate office space and associated utilities,
19-24 professional consultants and/or professional services out of income
19-25 from the Fund when it is actuarially determined that such payments
20-1 will not have an adverse effect on the payment of benefits from any
20-2 of the plans within the Pension System, and when in the judgment of
20-3 the Board the costs are necessary.
20-4 The City shall provide for costs of administration if
20-5 the Board determines that payment of such costs by the Fund will
20-6 have an adverse effect on the payment of benefits from any plan
20-7 within the Pension System.
20-8 (b) Notwithstanding the provisions of Section 4.01(a), upon
20-9 request of the Board, the City shall provide the Administrator and
20-10 his staff with first class (class "A") office space at a City-owned
20-11 office facility. Said office space, as well as all associated
20-12 utilities, shall be provided at no expense to the Pension System.
20-13 (c) No expenditure for the costs of administration or
20-14 payment of any fee for professional consultants or professional
20-15 services shall be made from the Fund without the approval of the
20-16 Board.
20-17 (d) After the Board has developed the annual budget for the
20-18 Pension System, such budget shall be presented to the City's budget
20-19 office for comment. The City's budget office may request the Board
20-20 to reconsider the appropriation for any expenditure at a Board
20-21 meeting, but the Board shall make the final determination
20-22 concerning any appropriation.
20-23 Sec. 4.02. USE OF PUBLIC FUNDS.
20-24 The financial share of the cost of the Pension System to be
20-25 paid out of the public treasury shall be as follows:
21-1 (a) Funds contributed by the City as its share of the amount
21-2 required to fund the payment of benefits under the Pension System
21-3 may be used for no other purpose. Such contributions shall be
21-4 annually appropriated by the City Council and periodically paid on
21-5 the basis of a percentage of the Total Wages and Salaries of the
21-6 members of the Police and Fire Departments who are members of each
21-7 of the plans within the Pension System. The amount of this
21-8 percentage and any change in it can be determined only by the
21-9 Legislature or by a majority vote of the voters of the City.
21-10 (b) Funds shall be appropriated by the City to carry out
21-11 various other provisions contained in this Act that authorize
21-12 expenditures in connection with the administration of the Pension
21-13 System.
21-14 (c) The percentage of required contributions from the City
21-15 shall be in accordance with the schedule below and any increase or
21-16 decrease shall occur automatically dependent upon any increases or
21-17 decreases in the Members' contribution percentage:
21-18 City Contributions Member Contributions
21-19 28-1/2% 9%
21-20 27-1/2% 8-1/2%
21-21 26% 8%
21-22 24-1/2% 7-1/2%
21-23 23% 7%
21-24 21-1/2% 6-1/2%
21-25 he City may elect to contribute more than that required in the
22-1 above schedule, provided the City's contribution percentage shall
22-2 not exceed twenty-eight and one-half percent (28-1/2%) unless
22-3 approved as provided in Section 4.02(a). Further, in no event may
22-4 the City's contribution be less than twenty-one and one-half
22-5 percent (21-1/2%) unless approved as provided in 4.02(a).
22-6 (d) For the purpose of Section 4.02(c), a Member's
22-7 contribution rate, regardless of the plan such person is a member
22-8 of, shall be deemed to be the highest contribution rate of any
22-9 members of any pension plan within the Pension System.
22-10 Sec. 4.03. MEMBER CONTRIBUTIONS.
22-11 (a) Each Group A Member of the Combined Pension Plan shall
22-12 have six and one-half percent (6.5%) of Base Pay deducted from his
22-13 wages each month and such contributions shall be promptly remitted
22-14 to the Fund by the City.
22-15 (b) Each Member shall continue to contribute to the Fund
22-16 under the applicable terms of Section 4.03 until he leaves Active
22-17 Service with either Department, or until the beginning of such a
22-18 Member's thirty-third (33rd) year of Pension Service at which time
22-19 such Member shall cease making such contributions.
22-20 (c) Each Group B Member shall authorize the City to deduct
22-21 from his salary a percentage of his Computation Pay. Such
22-22 authorization shall be in writing and filed with the Administrator.
22-23 (d) Each Group B Member shall have eight and one-half
22-24 percent (8 1/2%) of his Computation Pay deducted from his wages
22-25 each month to the Fund, and such contributions shall be promptly
23-1 remitted to the Fund by the City.
23-2 (e) The City shall determine the frequency of deductions for
23-3 Member contributions, as long as there is at least one (1)
23-4 deduction each month.
23-5 (f) Each Group B Member shall contribute to the Fund from
23-6 the effective date of his Group B membership.
23-7 (g) The percentage of Base Pay contributed by Group A
23-8 Members or Computation Pay contributed by Group B Members shall not
23-9 be altered except by an amendment pursuant to the terms of Section
23-10 4.02 of this Act.
23-11 (h) The only purposes for which Member contributions to the
23-12 Fund and the investment income derived therefrom may be applied
23-13 are:
23-14 (1) to the payment of benefits prescribed by this Act;
23-15 (2) to the payment of such administrative and
23-16 professional service costs of the Pension System as are provided
23-17 for under Section 4.01 of this Act or as may be within the
23-18 discretion of the Board to incur; and
23-19 (3) to invest any surplus in accordance with Section
23-20 4.07 of this Act.
23-21 Sec. 4.04. REFUND OF GROUP B MEMBER CONTRIBUTIONS.
23-22 (a) If a Group B Member, either voluntarily or
23-23 involuntarily, leaves Active Service, he shall be entitled to a
23-24 refund from the Fund of the total amount of his Plan B and/or Group
23-25 B contributions, without interest, which he paid from his effective
24-1 date of Group B membership or membership in Plan B; provided, an
24-2 appropriate reduction of Pension Service, as herein further
24-3 provided, results.
24-4 (b) Old Plan or Plan A contributions paid to the Fund by a
24-5 Group B Member shall not be refunded from the Fund.
24-6 (c) A former Group B Member desiring a refund of the Plan B
24-7 and/or Group B contributions he made to the Fund must make written
24-8 application for such refund with the Administrator. In no case
24-9 will any refund be made to any Group B Member before the expiration
24-10 of thirty (30) days from the date he left Active Service.
24-11 (d) Subject to Section 4.04(j), if a Group B Member with
24-12 less than five (5) years of Pension Service either voluntarily or
24-13 involuntarily leaves Active Service, and fails to make written
24-14 application for a refund of his contributions within three (3)
24-15 years of the date the notice described in Section 4.04(i) is made
24-16 by the Board, he shall forfeit his right to withdraw any portion of
24-17 his contribution, and the total amount of Plan B and/or Group B
24-18 contributions he made shall remain in the Fund. If the Group B
24-19 Member described in the preceding sentence dies after leaving
24-20 Active Service, his heir(s), or if none his estate, may apply for
24-21 the refund of his contributions (with the same loss of Pension
24-22 Service) so long as the application is filed with the Administrator
24-23 within three (3) years of the date of the notice described in
24-24 Section 4.04(i) is made by the Board. Subject to Section 4.04(j),
24-25 if a Group B Member's heir(s) or the estate fail to apply for a
25-1 refund of the Group B Member's contributions within the three (3)
25-2 year period described in the preceding sentence, then such heir(s)
25-3 or the estate shall forfeit any right to such contributions, and
25-4 the total amount of the Plan B and/or Group B contributions made by
25-5 the Group B Member shall remain in the Fund.
25-6 (e) Subject to Section 4.04(j), if a Group B Member with
25-7 five (5) or more years of Pension Service either voluntarily or
25-8 involuntarily leaves Active Service, and fails to make written
25-9 application for a refund of his Plan B and/or Group B contributions
25-10 within three (3) years of the date of the notice described in
25-11 Section 4.04(i) is made by the Board, he shall forfeit his right to
25-12 withdraw any portion of his contributions, and the total amount of
25-13 such contributions shall remain in the Fund. A Group B Member
25-14 described in the preceding sentence may, however, apply for
25-15 benefits under this Act or if such Group B Member dies before he is
25-16 eligible to apply for Group B benefits, his heir(s) or if none, his
25-17 estate, may apply for benefits in accordance with the provisions of
25-18 this Act, or such heir(s) or the estate, may apply for a refund of
25-19 the Group B Member's Plan B and/or Group B contributions (with the
25-20 same loss of Pension Service). Subject to Section 4.04(j), if a
25-21 Group B Member's heir(s) or the estate fail to apply for a refund
25-22 of the Group B and/or Plan B Member's contributions within the
25-23 three (3) year period described in the preceding sentence, then
25-24 such heir(s) or the estate shall forfeit any right to such
25-25 contributions, and the total amount of the Plan B and/or Group B
26-1 contributions made by the Group B Member shall remain in the Fund.
26-2 (f) If a Group B Member, (but not a Group B Member who
26-3 elects or has elected to receive a Group A benefit or a benefit
26-4 determined under the Old Plan, or Plan A) with five (5) or more
26-5 years of Pension Service either voluntarily or involuntarily leaves
26-6 Active Service, he shall be entitled to:
26-7 (1) have the total amount of his Plan B and/or Group B
26-8 contributions to the Fund refunded in accordance with Section
26-9 4.04(a); provided, however, that by taking such refund, he thereby
26-10 loses all his accrued Pension Service; or
26-11 (2) elect to take a refund of less than the total
26-12 amount of his Plan B and/or Group B contributions while leaving a
26-13 sufficient amount to retain Pension Service amounting to five (5)
26-14 or more years. If the Group B Member were to elect a refund of a
26-15 portion of his contributions, the amount of such Group B Member's
26-16 refund shall equal the total amount of his Plan B and/or Group B
26-17 annual contributions, without interest, for each full year of
26-18 Pension Service cancelled, computed on a first in - first out
26-19 method (i.e., based upon refunded contributions being attributable
26-20 to the earliest contributions made).
26-21 (g) A former Group B Member who returns to Active Service
26-22 shall be permitted to repay to the Fund any previously withdrawn
26-23 employee contributions and receive Pension Service as a Group B
26-24 Member if, and only if, prior to again leaving Active Service the
26-25 Group B Member repays completely to the Fund the previously
27-1 withdrawn contributions with interest, calculated at the interest
27-2 rate from time to time used in the Pension System's actuarial
27-3 assumptions, compounded annually, on such previously withdrawn
27-4 contributions for the period of time from the date the
27-5 contributions were withdrawn until the date the principal and
27-6 accrued interest are repaid in full.
27-7 (h) If a person becomes a Group B Member under the
27-8 provisions of Section 5.01 (b)(6) of this Act; and again, either
27-9 voluntarily or involuntarily, leaves Active Service, and then makes
27-10 application for a refund of his contributions under the provisions
27-11 of this Section 4.04, he shall be entitled to a refund from the
27-12 Fund of the following:
27-13 (1) the amount of his Group B contributions to the
27-14 Fund, without interest, which he paid from the date he returned to
27-15 Active Service following his Service or Disability Retirement; plus
27-16 (2) the excess, if any, of:
27-17 (A) his Plan B and/or Group B contributions to
27-18 the Fund, without interest, which he paid from the effective date
27-19 of his original Group B or Plan B membership in this Plan B through
27-20 the time he originally left Active Service because of the Service
27-21 or Disability Retirement; less
27-22 (B) the total amount of benefits he received
27-23 during his Service or Disability Retirement.
27-24 (i) Upon the fiftieth (50th) anniversary of the birth of a
27-25 Group B Member described in Section 4.04(d) or (e), or upon its
28-1 receipt of notice of the death of said Group B Member, the Board
28-2 shall, by registered or certified mail, return receipt requested,
28-3 attempt to notify the Group B Member or his heir(s) or estate,
28-4 whichever is applicable, of the status of their entitlement to a
28-5 refund of contributions from the Fund.
28-6 (j) A Group B Member described in Section 4.04(d) and (e),
28-7 or the heir(s) or estate of such Group B Member shall have their
28-8 right, title, interest or claim to a refund of the Group B Member's
28-9 contributions reinstated only upon the Board's grant of their
28-10 written request for such reinstatement and refund. The Board's
28-11 decision shall be based upon a uniform and nondiscriminatory policy
28-12 that it shall, from time to time, adopt.
28-13 Sec. 4.05. INVESTMENT COUNSELOR; QUALIFICATIONS.
28-14 (a) The Board may employ from time to time an investment
28-15 counselor to advise the Board in the investment and re-investment
28-16 of the assets of the Fund. The following will be eligible for
28-17 employment as an investment counselor:
28-18 (1) Any organization whose regular business functions
28-19 include rendering investment advisory services to pension and
28-20 retirement funds, which is registered as an "investment adviser"
28-21 under the Investment Advisers Act of 1940;
28-22 (2) Any bank, as defined in the Investment Advisers
28-23 Act of 1940, which maintains a trust department and offers
28-24 investment services to pension and retirement funds.
28-25 (b) The investment counselor shall receive such compensation
29-1 as may be determined by the Board and as authorized by Section 4.01
29-2 of this Act.
29-3 Sec. 4.06. INVESTMENT CUSTODY ACCOUNT AND/OR MASTER TRUST
29-4 AGREEMENTS.
29-5 (a) If the Board contracts for investment management
29-6 services, as authorized by Section 4.07 of this Act, it may, with
29-7 respect to every such contract, also enter into an investment
29-8 custody account agreement, designating a bank(s) as custodian(s)
29-9 and/or master trustee(s) for any or all of the assets of the Fund.
29-10 (b) Under a custody account or master trust agreement, the
29-11 Board shall require the designated bank to perform the duties and
29-12 assume the responsibilities of a custodian in relation to the
29-13 investment contract to which the custody account or master trust
29-14 agreement is established.
29-15 (c) The authority of the Board to make a custody account or
29-16 master trust agreement is supplementary to its authority to make an
29-17 investment management contract. Allocation of assets to a custody
29-18 account or master trust shall be coordinated by the Administrator,
29-19 as authorized by the Board, and the bank designated as custodian
29-20 or master trustee for such assets.
29-21 (d) Any custody account or master trust agreement entered
29-22 into by the Board shall establish such compensation for the
29-23 custodian or master trustee as may be determined by the Board, and
29-24 as authorized by Section 4.01 of this Act.
29-25 Sec. 4.07. INVESTMENT OF SURPLUS.
30-1 (a) Whenever the Board determines that there is on hand in
30-2 the Fund a surplus over and above a reasonably safe amount to take
30-3 care of current demands upon the Pension System, the Board may
30-4 invest or direct the investment of such surplus for the sole
30-5 benefit of the Pension System.
30-6 (b) In making investments and supervising investments,
30-7 Trustees shall exercise the judgment and care under the
30-8 circumstances then prevailing, which persons of ordinary prudence,
30-9 discretion, and intelligence exercise in the management of their
30-10 own affairs, not in regard to speculation but in regard to probable
30-11 income therefrom as well as the probable safety of their capital.
30-12 (c) The Board has the ultimate responsibility for the
30-13 investment of funds, which the Board may exercise directly by
30-14 purchasing or selling securities or other investments, but it shall
30-15 have the authority to exercise discretion in determining the
30-16 procedure that it deems most efficient and beneficial for the
30-17 Pension System in carrying out such responsibility. The Board may
30-18 contract for professional advisory services with respect to the
30-19 purchase or sale of securities or other investments pursuant to
30-20 Section 3.02 of this Act, and said professional advisory service
30-21 shall receive such compensation as may be determined by the Board
30-22 in accordance with Section 4.01 of this Act.
30-23 (d) The Board shall also have the authority to contract for
30-24 professional investment management service. Any contract that the
30-25 Board may make with an investment manager shall set forth policies
31-1 and guidelines of the Board with references to standard rating
31-2 services and specific criteria for determining the quality of
31-3 investments. The professional investment management service shall
31-4 receive such compensation as may be determined by the Board in
31-5 accordance with Section 4.01 of this Act.
31-6 (e) The Board, in exercising its control, may at any time,
31-7 and shall at frequent intervals, monitor the investments made by
31-8 any investment manager, and shall enforce full compliance with the
31-9 requirements of the Board.
31-10 (f) In the event the Board contracts for and receives
31-11 professional advisory services or professional investment
31-12 management services, the Board shall have no greater liability
31-13 under the terms of this Section 4.07 than otherwise provided for
31-14 under the Texas Government Code and/or the Texas Trust Code.
31-15 (g) No investment manager, other than a bank that has a
31-16 contract with the Board to provide assistance in making
31-17 investments, shall be the custodian or master trustee of any of the
31-18 securities or other assets of the Fund. Pursuant to Section 4.06
31-19 of this Act, the Board may designate a bank to serve as custodian
31-20 or master trustee (or subcustodian or submaster trustee) to perform
31-21 the customary duty of safekeeping as well as duties incident to the
31-22 execution of transactions. As the demands of the Pension System
31-23 require from time to time, the Board shall withdraw from the
31-24 custodian or master trustee money previously considered surplus in
31-25 excess of current cash and/or proceeds from the sale of investments
32-1 and may without distinction be used for the payment of benefits
32-2 pursuant to each of the plans within the Pension System and for
32-3 such other uses as are authorized by the Act and approved by the
32-4 Board.
32-5 Sec. 4.08. ACTUARIAL VALUATION.
32-6 (a) The Board shall have the authority to employ a Qualified
32-7 Actuary to provide a continuing observation of the operation of the
32-8 Pension System and to make recommendations and give advice to the
32-9 Board with regard to the condition of the assets of the Fund and
32-10 the administration of the Pension System. The Qualified Actuary
32-11 shall receive such compensation as may be determined by the Board
32-12 in accordance with the provisions of Section 4.01 of this Act.
32-13 (b) Any continuing actuarial observation of the assets of
32-14 the Fund shall be performed not less than once every two (2) years
32-15 and a report of the condition of the assets of the Fund shall be
32-16 made to the Board; provided, however, the Board may require more
32-17 frequent reports.
32-18 Sec. 4.09. REWARDS, DONATIONS, AND CONTRIBUTIONS.
32-19 Any reward, donation, or contribution given to any Member
32-20 when the reward, donation, or contribution was given as payment or
32-21 gratuity for service performed in the line of duty, shall be turned
32-22 over to the Chief of the Member's Department, who shall, in turn,
32-23 forward the reward, donation, or contribution to the Administrator
32-24 of the Pension System for deposit in the Fund.
32-25 Sec. 5. MEMBERSHIP.
33-1 Sec. 5.01. MEMBERSHIP IN THE COMBINED PENSION PLAN.
33-2 The membership of the Combined Pension Plan shall be
33-3 comprised of the following persons:
33-4 (a) Group A Members:
33-5 (1) Police Officers or Firefighters who are on Active
33-6 Service and who as of February 28, 1973, had filed a written
33-7 statement with the Pension System of their desire to participate in
33-8 either the Old Plan or Plan A; or
33-9 (2) Police Officers and Firefighters who are on Active
33-10 Service, and who were employed and receiving compensation from the
33-11 City as a Police Officer or a Firefighter before March 1, 1973, and
33-12 who made contributions to either the Old Plan or Plan A
33-13 attributable to any period of employment prior to March 1, 1973;
33-14 (b) Group B Members:
33-15 (1) Police Officers and Firefighters who are on Active
33-16 Service, were formerly Members of either the Old Plan or Plan A,
33-17 and as of April 30, 1973 had filed a written statement with the
33-18 Pension System of their desire to participate in Plan B;
33-19 (2) Police Officers and Firefighters who are on Active
33-20 Service and on and after March 1, 1973 and prior to January 1, 1993
33-21 became Members of Plan B;
33-22 (3) Group B membership is a condition of employment
33-23 applicable to any Police Officer or Firefighter who is initially
33-24 employed as a Police Officer or a Firefighter by the City on or
33-25 after January 1, 1993;
34-1 (4) Except as described in Section 5.01(b)(6), a
34-2 former member of the Old Plan or Plan A, who left Active Service
34-3 prior to March 1, 1973, shall accept Group B membership as a
34-4 condition of his return to Active Service;
34-5 (5) Except as described in Section 5.01(b)(6), a
34-6 former Group B Member (whether or not he was ever a member of the
34-7 Old Plan, Plan A or the Combined Pension Plan) shall accept Group B
34-8 membership as a condition of his return to Active Service.
34-9 (6) A person who was receiving an Old Plan, Plan A, or
34-10 Combined Pension Plan retirement or disability pension on or after
34-11 March 1, 1973, may, if he returns to Active Service, elect to
34-12 participate as a Group A or Group B Member by filing a written
34-13 application for membership with the Administrator no later than
34-14 sixty (60) days after said return. As a condition of either Group
34-15 A or Group B membership, the Board may require such person to
34-16 undergo a physical examination and be certified by the Health
34-17 Director as being capable of performing the duties to which he will
34-18 be assigned. If the former member, described in the preceding
34-19 sentence, does not elect to become a Group A or Group B Member, he
34-20 shall upon leaving Active Service receive a retirement pension in
34-21 an amount that is unadjusted for the period of time during which he
34-22 returned to Active Service if he meets all of the requirements of
34-23 Group A membership.
34-24 (7) A Group B Pensioner who was never a member of the
34-25 Old Plan, Plan A, or the Combined Pension Plan prior to January 1,
35-1 1993, may, if he again returns to Active Service, elect to become a
35-2 Group B Member by filing a written application for membership with
35-3 the Administrator no later than sixty (60) days after said return.
35-4 As a condition of Group B membership, the Board may require the
35-5 Pensioner to undergo a physical examination and be certified by the
35-6 Health Director as being capable of performing the duties to which
35-7 he will be assigned. If such Group B Pensioner does not elect to
35-8 again become a Group B Member, then upon leaving Active Service, if
35-9 he meets all applicable requirements of this Act, he shall receive
35-10 benefits in an amount equal to the amount he was receiving as of
35-11 the day before he returned to active service; and his Base Pension
35-12 shall be the same as the Base Pension originally computed prior to
35-13 his return to Active Service.
35-14 (8) Subject to the conditions of 5,01(b)(8)(A) and (B)
35-15 below, a person who is on Active Service and is a Group A Member
35-16 may irrevocably elect to become a Group B Member by filing a
35-17 written application with the Administrator. Upon and after the
35-18 filing of said application, the Group A Member shall make
35-19 contributions to the Fund at the rate applicable to Group B
35-20 Members. However, such contributions shall not, by themselves,
35-21 constitute Group B membership, and such membership is contingent
35-22 upon the satisfaction of the following conditions:
35-23 (A) The person must pay an amount to the Fund
35-24 equal to the difference between the contributions he would have
35-25 made to the Fund had he been a Group B Member for the entire period
36-1 he could otherwise have been a Group B Member prior to making
36-2 application for membership, and the contributions he actually made
36-3 during said period, plus interest calculated in accordance with
36-4 procedures adopted by the Board from time to time.
36-5 (B) The payments described in Section
36-6 5.01(b)(8)(A) must be completed prior to the date on which the
36-7 person leaves Active Service in accordance with procedures adopted
36-8 by the Board from time to time. If the Fund does not receive
36-9 payment by said date, then all such payments, as well as those
36-10 amounts paid by the person subsequent to his application for Group
36-11 B membership that are in excess of the Group A Member contribution
36-12 rate, shall be returned to the person, or in the event of the
36-13 person's death to his surviving Spouse and/or Children or estate,
36-14 whichever is applicable.
36-15 (9) A person who is on Active Service and was never a
36-16 member of any plan within the Pension System, may elect to become a
36-17 Group B Member on a prospective basis only, by filing a written
36-18 application for membership with the Administrator.
36-19 Sec. 5.02. EFFECTIVE DATE OF GROUP B MEMBERSHIP.
36-20 (a) The effective date of Group B Membership for persons
36-21 described in Sections 5.01(b)(1) and (2) of this Act shall be
36-22 January 1, 1993.
36-23 (b) The effective date of Group B membership for a person
36-24 who becomes a Group B Member pursuant to the provisions of Section
36-25 5.01(b)(3) of this Act, shall be the day the person begins Active
37-1 Service.
37-2 (c) The effective date of Group B membership for a person
37-3 who becomes a Group B Member, pursuant to the provisions of Section
37-4 5.01(b)(4) of this Act, shall be the date of his return to Active
37-5 Service.
37-6 (d) The effective date of Group B membership for a former
37-7 Group B Member who again becomes a Group B Member pursuant to the
37-8 provisions of Section 5.01(b)(5) of this Act, shall be his original
37-9 effective date of Group B membership, adjusted for any period of
37-10 time that he was not on Active Service, provided he has not
37-11 withdrawn his contributions to the Fund pursuant to Section 4.04 of
37-12 this Act. If, however, such former Group B Member has withdrawn
37-13 his contributions to the Fund in accordance with Section 4.04 of
37-14 this Act, and he does not replace such previously withdrawn
37-15 contributions together with interest thereon, as provided in
37-16 Section 4.04(g), then the effective date of his membership shall be
37-17 the date of his return to Active Service.
37-18 (e) The effective date of membership for a person who
37-19 becomes Group B Member, pursuant to the provisions of Section
37-20 5.01(b)(6) of this Act, shall be the date written application for
37-21 membership is filed with the Administrator. The effective date of
37-22 membership for a person who becomes a Group A Member pursuant to
37-23 the provisions of Section 5.01(b)(6) of this Act, shall be the
37-24 person's original effective date of membership in the Old Plan,
37-25 Plan A, or the Combined Pension Plan, whichever is applicable.
38-1 (f) The effective date of Group B membership for a Group B
38-2 Pensioner who again becomes a Group B Member, pursuant to the
38-3 provisions of Section 5.01(b)(7) of this Act, shall be the
38-4 Pensioner's original effective date of membership, adjusted for any
38-5 period of time he was not on Active Service.
38-6 (g) The effective date of Group B membership for a person
38-7 who joins this Plan pursuant to the provisions of Section
38-8 5.01(b)(8) of this Act shall be the first day of March, 1973.
38-9 (h) A person described in Sections 5.02(a), (c), (d), (e),
38-10 (f), or (g) above, shall be given full Pension Service for the time
38-11 he was a contributing member of the Old Plan, Plan A, the Combined
38-12 Pension Plan and Plan B; and such Pension Service shall be counted
38-13 as if it had been earned while a Group B Member.
38-14 Neither the length of time persons described in
38-15 Sections 5.02(a), (c), (d), (e), (f), or (g) received a retirement
38-16 or disability pension, whether under the provisions of the Old
38-17 Plan, Plan A, the Combined Pension Plan or Plan B, nor the amount
38-18 of any benefits paid to such person, shall have any effect on the
38-19 Pension Service earned by such person. No Pension service shall be
38-20 earned while on Service Retirement, or Disability Retirement, or
38-21 when such person was not on Active Service. Except as provided in
38-22 Sections 5.02 and 5.09 of this Act, a person described in Sections
38-23 5.01(a), (c), (d), (e), (f), or (g) shall not be allowed to
38-24 contribute to the Fund in order to receive Pension Service for the
38-25 time such person was not on Active Service, regardless of whether
39-1 such person was actually receiving a pension.
39-2 (i) The effective date of Group B membership for a person
39-3 who becomes a Group B Member, pursuant to the provisions of Section
39-4 5.01(b)(9) of this Act, shall be the date on which written
39-5 application for Group B membership is filed with the Administrator.
39-6 Sec. 5.03. TERMINATION OF GROUP B MEMBERSHIP.
39-7 (a) Group B Membership, whether by voluntary application or
39-8 as a condition of employment, shall be permanent, and may be
39-9 terminated by the Group B Member only when he ceases to be on
39-10 Active Service.
39-11 (b) Once a Police Officer or Firefighter becomes a Group B
39-12 Member, whether by voluntary application or as a condition of
39-13 employment, he may never transfer his membership to become a Group
39-14 A Member. Further, he may never transfer his membership to any
39-15 pension plan for Police Officers and Firefighters that may be
39-16 created in the future unless the terms of that plan shall allow
39-17 such transfer.
39-18 (c) A Group B Member or former Group B Member, who also was
39-19 a former contributing member of either the Old Plan or Plan A, may
39-20 elect, when applying for either a retirement or disability pension
39-21 (if applicable), to terminate his membership and receive a Group A
39-22 retirement or disability pension under the applicable provisions of
39-23 this Act, provided the Group B Member's application for retirement
39-24 or disability pension is granted by the Board.
39-25 If the Group B Member or former Group B Member
40-1 described in the above paragraph has elected and been granted a
40-2 Group A retirement or disability pension under the applicable
40-3 provisions of this Act, he shall be entitled to a reimbursement
40-4 from the Fund. Such reimbursement shall be equal to that portion
40-5 of his contributions to the Fund, without interest (from his
40-6 effective date of Group B membership through the time he left
40-7 Active Service) that is in excess of the total amount he would have
40-8 contributed as a Group A Member or as a Member of the Old Plan or
40-9 Plan A for the same period. A Group B Member or former Group B
40-10 Member desiring a refund of such excess contributions must make
40-11 written application for the refund with the Administrator within
40-12 three (3) years of the commencement of his Group A retirement or
40-13 disability pension or lose all right, title, interest or claim to
40-14 the refund until such time as the Board grants such refund in
40-15 response to the his written request. Such refund shall be made as
40-16 soon as practicable after written application is filed with the
40-17 Administrator.
40-18 Sec. 5.04. GROUP B MEMBERSHIP MAY BE DECLARED INACTIVE.
40-19 (a) If a Group B Member, with less than five (5) years of
40-20 Pension Service, either voluntarily or involuntarily leaves Active
40-21 Service, his Group B membership shall remain active so long as he
40-22 has not withdrawn his contributions pursuant to Section 4.04 of
40-23 this Act.
40-24 (b) If a Group B Member with five (5) or more years of
40-25 Pension Service, either voluntarily or involuntarily, leaves Active
41-1 Service, his Group B membership shall remain active so long as he
41-2 has not withdrawn his entire contributions pursuant to Section 4.04
41-3 of this Act.
41-4 (c) If the Board receives valid information that a Group B
41-5 Primary Party has died, leaving an heir(s), the Board shall attempt
41-6 to notify such heir(s) of the procedures for applying and
41-7 qualifying for survivor benefits or a refund of the Group B Primary
41-8 Party's contributions if applicable.
41-9 (d)(1) Subject to the provisions of Section 5.04(d)(5)(A),
41-10 the membership of a Group B Member described in Section 5.04(a)
41-11 shall be declared inactive and all of his accrued Pension Service
41-12 voided if he does not return to Active Service within three (3)
41-13 years of receiving the notice described in Section 5.04(d)(4).
41-14 (2) Subject to the provisions of Section
41-15 5.04(d)(5)(B), the membership of a Group B Member described in
41-16 Section 5.04(b) shall be declared inactive and all of his accrued
41-17 Pension Service voided if he does not file an application for a
41-18 Group B retirement pension with the Board within three (3) years of
41-19 receiving the notice described in Section 5.04(d)(4).
41-20 (3) Subject to the provisions of Section
41-21 5.04(d)(5)(C), the heir(s) or estate of a deceased Primary Party
41-22 described in Section 5.04(c) shall have no right, title or interest
41-23 or claim for benefits or refund of the Primary Party's
41-24 contributions to the Fund, if the heir(s) or the estate, whichever
41-25 is applicable fails to file an application for the Primary Party's
42-1 benefits and/or contributions within three (3) years of receiving
42-2 the notice described in Section 5.04(d)(4).
42-3 (4) Upon the fiftieth (50th) anniversary of the birth
42-4 of a Group B Member described in Section 5.04(a) or (b) or upon its
42-5 receipt of notice of the death of a Primary Party described in
42-6 Section 5.04(c), the Board shall, by registered or certified mail,
42-7 return receipt requested, attempt to notify the Group B Member or
42-8 his heir(s) or estate of a Primary Party, whichever is applicable,
42-9 of the status of their entitlement to benefits or contributions
42-10 from the Fund.
42-11 (5) (A) A Group B Member described in Section
42-12 5.04(d)(1) shall have his Group B Membership and Pension Service
42-13 reinstated upon his return to Active Service.
42-14 (B) A Group B Member described in Section
42-15 5.04(d)(2) shall have his Group B Membership and Pension Service
42-16 reinstated upon his return to Active Service or upon the grant of
42-17 his written request to the Board of his desire to apply for a Group
42-18 B Service Retirement Benefit.
42-19 (C) The heir(s) or estate of a Primary Party
42-20 described in Section 5.04(d)(3) shall have their right, title,
42-21 interest or claim to the Primary Party's refund of contributions
42-22 reinstated upon the Board's grant of their written request for such
42-23 reinstatement and refund. The Board's decision shall be based upon
42-24 a uniform and nondiscriminatory policy that it shall, from time to
42-25 time, adopt.
43-1 Sec. 5.05. PENSION SERVICE.
43-2 (a) A Member shall receive Pension Service for the time
43-3 (computed in years and fractional years for months and days)
43-4 completed as a member of the Combined Pension Plan, the Old Plan,
43-5 Plan A, or Plan B.
43-6 (b) A Member who elects to pay contributions for time spent
43-7 on military leave, authorized leave of absence, or for an
43-8 apprentice/probation period, or for any other reason provided for
43-9 in this Act, shall not receive any Pension Service for any part of
43-10 the time for which he is contributing until the entire amount due
43-11 the Fund for the entire period of time involved has been paid as if
43-12 he was a member.
43-13 (c) If a Member, either voluntarily or involuntarily, leaves
43-14 Active Service and then later returns to Active Service, he shall
43-15 receive full Pension Service for the period of his original
43-16 membership, provided he did not withdraw his contributions pursuant
43-17 to Section 4.04 of this Act. If, however, such Member had
43-18 withdrawn his contributions, and he does not replace the previously
43-19 withdrawn contributions together with interest thereon as stated in
43-20 Section 4.04, he shall forfeit any Pension Service accrued while a
43-21 Member prior to the date of his return to Active Service.
43-22 Sec. 5.06. VESTED RIGHTS OF GROUP B MEMBERS.
43-23 (a) If a Group B Member accrues five (5) years of Pension
43-24 Service (whether the Pension Service is accrued while a Group B
43-25 Member or while a member of the Old Plan, Plan B, Plan A, the
44-1 Combined Pension Plan, or a combination thereof) such Group B
44-2 Member shall have vested rights and shall be eligible to apply for
44-3 a retirement pension in accordance with the provisions of Section
44-4 6.02 of this Act.
44-5 (b) If a Group B Member has vested rights as determined
44-6 under Section 5.06(a), and such Group B Member either voluntarily
44-7 or involuntarily leaves Active Service before he is eligible to
44-8 receive any benefits under the provisions of Section 6.02 of this
44-9 Act, he shall be provided with a letter approved by the Board and
44-10 signed by the Administrator, which barring clerical error,
44-11 miscalculation, or other error, shall be incontestable and shall
44-12 show the following information:
44-13 (1) The total amount of Pension Services the Group B
44-14 Member had accrued through the date he left Active Service;
44-15 (2) The total amount of contributions the Group B
44-16 Member made under the terms of Plan B and the Combined Pension
44-17 Plan; and
44-18 (3) The monthly retirement pension due the Group B
44-19 Member at age fifty (50).
44-20 Sec. 5.07. PURCHASE OF PENSION SERVICE BY GROUP B MEMBERS.
44-21 (a) A Group B Member who had previously elected not to
44-22 become a contributing member of the Old Plan and/or Plan A may
44-23 purchase Pension Service from the Fund for that period of time in
44-24 which he commenced Active Service with either Department until the
44-25 effective date of his Group B membership. No Pension Service shall
45-1 be given to such Group B Member unless and until payment is made
45-2 for the entire period described in the preceding sentence, and no
45-3 Pension Service shall be purchased for any period that is of
45-4 greater or lesser length.
45-5 (b) Payment for the purchase of Pension Service under this
45-6 Section 5.07 shall be equal to the amount of contributions the
45-7 Group B Member would have made to the Old Plan and/or Plan A had he
45-8 been a contributing member of either of said plans during the
45-9 period described in Section 5.07(a), plus interest calculated in
45-10 accordance with procedures adopted by the Board from time to time.
45-11 (c) A Group B Member shall be permitted to repay the Fund
45-12 all employee contributions withdrawn by an Alternate Payee pursuant
45-13 to the terms of a Qualified Domestic Relations Order and receive
45-14 Pension Service as a Group B Member attributable to such
45-15 contributions, if and only if the Group B Member repays completely
45-16 to the Fund the withdrawn contributions together with interest,
45-17 calculated at the interest rate from time to time used in the
45-18 Pension System's actuarial assumptions, compounded annually, on
45-19 such contributions for the period of time from the date the
45-20 contributions were withdrawn until the date the principal and
45-21 accrued interest are repaid in full.
45-22 (d) No Pension Service shall be given to a Group B Member
45-23 under Section 5.07(b) or (c) until the entire amount described in
45-24 Section 5.07(b) or (c) has been paid to the Fund. If payment of
45-25 said amount is not completed by the date the Group B Member leaves
46-1 Active Service, then all such payments shall be returned to the
46-2 Group B Member; or in the event of the Group B Member's death, to
46-3 his heir(s) or estate, whichever is applicable.
46-4 Sec. 5.08. MEMBERS IN ARMED SERVICES.
46-5 A Member may receive Pension Service for time spent away from
46-6 either Department while on active duty in any of the military
46-7 services of the United States, including service in any State or
46-8 National Guard or any reserve component of any such military
46-9 service in accordance with the following military leave procedure:
46-10 (a) Any Member inducted into the armed forces as a draftee
46-11 must reapply for reinstatement with his prior Department within
46-12 ninety (90) days of honorable discharge or separation from military
46-13 service. Upon such reinstatement, the Member may elect to repay
46-14 his contributions at any time under the procedure described in
46-15 Section 5.08(g);
46-16 (b) Any Member enlisting in the armed forces, other than as
46-17 a reservist, whose military service between June 24, 1948, and
46-18 August 1, 1961, did not exceed four (4) years, or whose military
46-19 service began after August 1, 1961, and did not exceed five (5)
46-20 years (if such fifth year is at the request and convenience of the
46-21 federal government), and who was honorably discharged or separated
46-22 from service, is guaranteed, under the provisions of coverage
46-23 described above, the right to restore Pension Service under the
46-24 procedure described in Section 5.08(g). The four (4) and five (5)
46-25 year leaves permitted herein apply to all of a Member's employment
47-1 with the City (i.e., an enlistment plus any number of reenlistments
47-2 may not exceed the four (4) or five (5) year limitations stated
47-3 above);
47-4 (c) Any Member ordered to an initial period of active duty
47-5 for training in a reserve component of not less than twelve (12)
47-6 consecutive weeks, is entitled to restore Pension Service for the
47-7 period absent from his Department, if he returns to his Department
47-8 within thirty-one (31) days of honorable discharge or separation
47-9 from duty in the reserve unit;
47-10 (d) Any Member serving in a reserve component, voluntarily
47-11 or involuntarily, may remain on military leave for four (4) years,
47-12 which may be extended for periods when the President of the United
47-13 States calls the reserve unit into active duty. Such service
47-14 extension for Members joining a reserve unit voluntarily is
47-15 available only when the additional service is at the request and
47-16 for the convenience of the federal government. Any Member
47-17 returning to his Department under this provision must report back
47-18 to work within the time specified to the Member by his Department,
47-19 giving due regard for travel time and hospitalization, if required.
47-20 Any inquiry into the validity of orders extending terms of
47-21 reservist active duty for training will be referred to the
47-22 Department of Labor's Office of Veterans' Employment and Training;
47-23 (e) Any Member on military leave for short periods of
47-24 authorized training, such as two (2) week encampments, are treated
47-25 as on leave with pay for up to fifteen (15) working days in any one
48-1 (1) calendar year, during which time Pension Service automatically
48-2 accrues. Leave in excess of fifteen (15) days will be treated as
48-3 described in Section 5.08(d);
48-4 (f) With the exception of those circumstances described in
48-5 Section 5.08(e), the City shall not be required to match
48-6 contributions made by Members under the terms of this Section 5.08;
48-7 (g) Repayment shall be made in accordance with the procedure
48-8 set forth in any uniform and nondiscriminatory military leave and
48-9 payment procedure adopted by the Board and as in effect from time
48-10 to time.
48-11 Sec. 5.09. LEAVE OF ABSENCE (NON-MILITARY).
48-12 (a) Authorized Leave of Absence (Non-Military).
48-13 (1) An authorized leave of absence, shall mean any
48-14 leave of absence which meets the following conditions:
48-15 (A) The leave of absence must be an official
48-16 leave authorized by the Chief of either Department; and
48-17 (B) The leave of absence must be for the purpose
48-18 of benefiting the Department.
48-19 (2) A member may receive Pension Service for time
48-20 spent away from either Department on an authorized non-military
48-21 leave of absence. In order to receive Pension Service for such
48-22 leave of absence, the following conditions must be met:
48-23 (A) Prior to the date his leave of absence is to
48-24 begin, the Member must file with the Administrator a written
48-25 application to pay any contributions that will accrue during his
49-1 leave as set forth at Sections 5.09(a)(2)(B) and (C).
49-2 (B) The Member must agree to pay into the Fund
49-3 the amount such Member would have contributed had he remained on
49-4 Active Service, such amount to be based on the Computation Pay he
49-5 would have normally received had there been no change in his
49-6 position during the period of leave.
49-7 (C) The Member must agree to pay into the Fund
49-8 an amount equal to the amount the City would have contributed
49-9 computed on the basis of Total Wages and Salary he would normally
49-10 have received had he remained on Active Service and had there been
49-11 no change in his position during the period of leave, such payment
49-12 to represent the total amount which would have been contributed by
49-13 the City on his behalf had he remained on Active Service. This
49-14 payment shall be in addition to the amount he must contribute as
49-15 set forth at Section 5.09(a)(2)(B).
49-16 (I) In the event the City's contribution
49-17 rate shall change, as provided in Section 4.02 of this Act, then
49-18 the percentage of Total Wages and Salary required to be paid by the
49-19 Member shall also change; so that the amount paid by the Member in
49-20 accordance with the provisions of this Section 5.09 shall always
49-21 equal the amount which would have been contributed by the City on
49-22 such Member's behalf had he remained on Active Service.
49-23 (II) In no event shall the City be
49-24 required to pay into the Fund any contributions which would have
49-25 been made on behalf of a Member had the Member remained on Active
50-1 Service during the period of an authorized leave of absence.
50-2 (D) Payment of contributions as set forth in
50-3 Sections 5.09(a)(2)(B) and (C) above shall begin coincident with
50-4 the commencement of the applicable leave of absence and shall be
50-5 made monthly to the Administrator for deposit in the Fund, unless
50-6 the Board authorizes the deferment of such payments until the
50-7 Member has returned to Active Service. No Pension Service will be
50-8 accrued to the Member until he returns to Active Service. If the
50-9 Member does not return to Active Service, the contributions paid
50-10 will be returned to the Member except as provided for in Section
50-11 5.09(b). If the Board authorizes the deferment of such payments,
50-12 the payment may be made either by authorizing the deduction of
50-13 pro-rata portions of the total amount due from his salary over a
50-14 one (1) year period, or by cash payment made to the Administrator
50-15 within one (1) year of the date of his return to Active Service.
50-16 The Board may approve a longer period for making the payment if it
50-17 finds that the one (1) year limit would work a financial hardship
50-18 on the Member.
50-19 (E) The Member must return to Active Service
50-20 within ninety (90) days of the date his authorized leave expires
50-21 (or in the event his authorized leave does not have a fixed
50-22 expiration date, within a reasonable time to be determined by the
50-23 Board) or such Member shall forfeit his right to pay for the leave
50-24 time.
50-25 (F) No Member shall ever be allowed to pay leave
51-1 of absence contributions under this Section 5.09 for any time in
51-2 excess of the time actually spent on an authorized leave of
51-3 absence.
51-4 (b)(1) If a Member of the Combined Pension Plan is disabled
51-5 or dies while on an authorized leave of absence, such Member or his
51-6 Heir(s) shall be entitled to either a refund of contributions
51-7 pursuant to Section 4.04 of this Act, or such Member or his
51-8 Qualified Survivors shall be entitled to benefits under the
51-9 provisions of this Act, to the extent applicable.
51-10 (2) A Member who is disabled or dies, while on leave
51-11 of absence pursuant to this Section 5.09, shall receive no Pension
51-12 Service for any portion of the period of the leave; provided,
51-13 however, that if the Member had, prior to such disability or death,
51-14 paid for contributions while on leave of absence in accordance with
51-15 the provisions of Section 5.09(a), he shall receive Pension Service
51-16 for the leave time actually paid for at the time of his disability
51-17 or death, but he shall receive no Pension Service for any portion
51-18 of the period of leave for which contributions have not been paid
51-19 to the Administrator for deposit in the Fund.
51-20 Sec. 6. BENEFITS.
51-21 Sec. 6.01. GROUP A RETIREMENT PENSION.
51-22 A Group A Member or former Group A Member must have twenty
51-23 (20) years of Pension Service to be eligible for a Group A
51-24 retirement pension under Section 6.01(a) or (b). Such application,
51-25 once made, shall be irrevocable. If a Group A Pensioner returns to
52-1 Active Service as a Police Officer or Firefighter with the City,
52-2 such person's Group A retirement pension shall cease until such
52-3 time as he once again leaves Active Service with the City.
52-4 (a)(1) At age fifty (50) a Group A Member or former Group A
52-5 Member is eligible to begin drawing a monthly Group A retirement
52-6 pension. A monthly Group A retirement pension shall equal fifty
52-7 percent (50%) of the Base Pay per month, plus fifty percent (50%)
52-8 of any Longevity Pay the Group A Member was receiving at the time
52-9 he left Active Service. Although the number of years used in the
52-10 computation of Longevity Pay remains fixed at the time the Group A
52-11 Member or former Group A Member left Active Service, the monthly
52-12 rate of Longevity Pay used in this computation is subject to change
52-13 in the event of an amendment to the state law governing Longevity
52-14 Pay. The monthly Group A retirement pension benefits of Group A
52-15 Pensioners shall be adjusted from time to time in a like manner.
52-16 (2) (A) In addition to the amount computed at Section
52-17 6.01(a)(1), at age fifty (50), a Group A Member is eligible to
52-18 begin drawing an annual Group A retirement pension. An annual
52-19 retirement pension equals fifty percent (50%) of the difference
52-20 between the annualized amount of City Service Incentive Pay and
52-21 Longevity Pay. In determining City Service Incentive Pay and
52-22 Longevity Pay for purposes of this element of the annual Group A
52-23 retirement pension only the following shall apply:
52-24 (I) City Service Incentive Pay shall be
52-25 calculated in the same manner as the City Service Incentive Pay is
53-1 calculated for Members currently on Active Service except:
53-2 (i) The annual salary of a Group A
53-3 Pensioner used in calculating City Service Incentive Pay shall be
53-4 determined on the basis of the last City civil service rank held by
53-5 the Group A Pensioner when he was on Active Service; however, if
53-6 such rank no longer exists, then its closest equivalent shall be
53-7 determined by the Board and applied.
53-8 (ii) The annual salary of a Group A
53-9 Pensioner as determined in Section 6.01(a)(2)(A)(I)(i) shall be
53-10 that amount in effect on the last day of September of each year
53-11 such Group A Pensioner's annual retirement pension is calculated.
53-12 (II) Longevity Pay shall be calculated as
53-13 follows:
53-14 (i) Twelve (12) times the amount of
53-15 monthly Longevity Pay the Group A Pensioner was receiving at the
53-16 time such person left Active Service.
53-17 (ii) Although the number of years
53-18 used in the computation of Longevity Pay described in Section
53-19 6.01(a)(2)(A)(II)(i) remains fixed at the time a Group A Pensioner
53-20 left Active Service, the monthly rate of Longevity Pay used in this
53-21 computation is subject to change in the event of an amendment to
53-22 the state law governing Longevity Pay.
53-23 (B) The element of annual retirement pension
53-24 computed under Section 6.01(a)(2)(A)(I) shall be subject to the
53-25 following limitations:
54-1 (I) it shall be prorated for the year in
54-2 which the Pensioner begins receiving his retirement pension;
54-3 (II) it shall be payable only to those
54-4 Group A Pensioners who as a Group A Member on Active Service
54-5 received City Service Incentive Pay and who receive a monthly Group
54-6 A retirement pension as determined under Section 6.01(a)(1) on the
54-7 last day of September of each year; and
54-8 (III) it shall be paid to Group A
54-9 Pensioners so long as the City continues to pay City Service
54-10 Incentive Pay to Group A Members on Active Service.
54-11 (3) Notwithstanding the provisions of Sections 6.01(a)
54-12 (1) and (2), a Group A Member with a minimum of twenty (20) years
54-13 of Pension Service may apply for an actuarially reduced retirement
54-14 pension to commence no earlier than when he attains age forty-five
54-15 (45) but prior to his attaining age fifty (50). Such Group A
54-16 Member or a former Group A Member who has made such application may
54-17 receive a retirement pension calculated under Sections 6.01(a)(1)
54-18 and (2) reduced by two-thirds of one percent (2/3 of 1%) per month
54-19 for each whole calendar month such benefit commences prior to the
54-20 month in which the Group A Member or former Group A Member attains
54-21 age fifty (50).
54-22 (b)(1) At age fifty-five (55) a Group A Member or former
54-23 Group A Member is eligible to begin drawing a monthly retirement
54-24 pension which shall be computed as follows:
54-25 (A) (I) At the rate of three percent (3%) of
55-1 Base Pay for each year (and prorated for fractional years) of
55-2 Pension Service, with a maximum of thirty-two (32) years of Pension
55-3 Service (or ninety-six percent (96%) of Base Pay);
55-4 (II) However, if the Group A Member or
55-5 former Group A Member had thirty-four (34) or more years of Pension
55-6 Service as of April 30, 1990, at the rate calculated under the
55-7 terms of the Combined Pension Plan in effect on April 30, 1990, if
55-8 greater than Section 6.01(b)(1)(A)(I), above; plus
55-9 (B) One-half (1/2) of the Longevity Pay such
55-10 Group A Member or former Group A Member was receiving at the time
55-11 he left Active Service; plus
55-12 (C) One-twenty-fourth (1/24th) (without
55-13 subsequent adjustment) of the annualized amount of the City Service
55-14 Incentive Pay such Group A Member or former Group A Member received
55-15 at the time he left Active Service (notwithstanding the preceding,
55-16 Group A Pensioners payments under this Section 6.01(b)(1)(C) are
55-17 contingent upon the City's continuing payment of such City Service
55-18 Incentive Pay to Group A Members on Active Service). For purposes
55-19 of this Section 6.01(b), Base Pay and Longevity Pay are the amounts
55-20 in effect on the date the benefits are to begin, without subsequent
55-21 adjustment.
55-22 (2) Notwithstanding the provisions of Section
55-23 6.01(b)(1), a Group A Member or former Group A Member with twenty
55-24 (20) or more years of Pension Service may apply for an actuarially
55-25 reduced Group A retirement pension commencing on or after such
56-1 Group A member or former Group A member attains age fifty (50), but
56-2 prior to attaining age fifty-five (55). Such Group A Member or
56-3 former Group A Member may receive a retirement pension calculated
56-4 under Section 6.01(b)(1) reduced by two-thirds of one percent (2/3
56-5 of 1%) per month for each whole calendar month such benefit
56-6 commences prior to the month in which such Group A Member or former
56-7 Group A Member attains age fifty-five (55).
56-8 (c) Entitlement to the Group A retirement pension described
56-9 in Sections 6.01(a) and (b) shall be subject to the following
56-10 conditions:
56-11 (1) Written application must be filed with the
56-12 Administrator;
56-13 (2) The grant of such Group A retirement pension by
56-14 the Board at a meeting of the Board held during the month the Group
56-15 A retirement pension is to become effective, or as soon thereafter
56-16 as possible; and
56-17 (3) The Group A Member must no longer be on Active
56-18 Service.
56-19 Sec. 6.02. GROUP B RETIREMENT PENSION.
56-20 (a) A Group B Member or former Group B Member who has
56-21 accrued five (5) or more years of Pension Service may make
56-22 application for a Group B retirement pension upon reaching fifty
56-23 (50) years of age, or for an actuarially reduced Group B retirement
56-24 pension upon reaching forty-five (45) years of age.
56-25 (b) A former Group B Member or Group B Pensioner, who
57-1 withdrew any of his Plan B and/or Group B contributions, and who
57-2 upon again becoming a Group B Member does not replace such
57-3 previously withdrawn contributions together with interest thereon
57-4 as provided in Section 4.04 of this Act, must earn at least five
57-5 (5) years of Pension Service following the time he returned to
57-6 Active Service in order to be eligible for a Group B retirement
57-7 pension.
57-8 (c) Entitlement to a Group B retirement pension as described
57-9 in Sections 6.02(a) and (b), shall be subject to the following
57-10 conditions:
57-11 (1) Written application must be filed with the
57-12 Administrator;
57-13 (2) The grant of such Group B retirement pension by
57-14 the Board at a meeting of the Board held during the month the Group
57-15 B retirement pension is to become effective, or as soon thereafter
57-16 as possible; and
57-17 (3) The Group B Member must no longer be on Active
57-18 Service.
57-19 (d) A Group B retirement pension shall be computed as
57-20 follows:
57-21 (1) at the rate of three percent (3%) of the average
57-22 Computation Pay determined over the sixty (60) consecutive months
57-23 in which the Group B Member received the highest Computation Pay
57-24 multiplied by the year(s) (and prorated for fractional years) of
57-25 Pension Service to a maximum of thirty-two (32) years of Pension
58-1 Service (ninety-six percent (96%) of his computation pay as
58-2 determined in the preceding sentence).
58-3 (2) However, a Group B Member of former Group B Member
58-4 with thirty-four (34) or more years of Pension Service as of April
58-5 30, 1990, shall receive the greater of a Group B retirement pension
58-6 calculated under the terms of Plan B as in effect on such date or a
58-7 Group B retirement pension calculated pursuant to Section
58-8 6.02(d)(1).
58-9 (3) A Group B Member (or any former Group B Member who
58-10 was a Group B Member as of any date after April 30, 1990, may apply
58-11 for an actuarially reduced Group B retirement pension commencing no
58-12 earlier than his forty-fifth (45th) birthday, but before his
58-13 fiftieth (50th) birthday. A Group B Member or former Group B
58-14 Member who applies for an actuarially reduced Group B retirement
58-15 pension commencing on or after his forty-fifth (45th) birthday
58-16 shall receive such pension calculated under Section 6.02(d)(1),
58-17 reduced by two-thirds of one percent (2/3%) per month for each
58-18 whole calendar month such pension would commence prior to the month
58-19 in which the Group B Member or former Group B Member attains age
58-20 fifty (50).
58-21 (4) In no event shall any Group B Member or former
58-22 Group B Member, who was at any time a Group A member or a
58-23 contributing member of the Old Plan or Plan A, and who satisfied
58-24 the applicable length of service requirements thereof, receive a
58-25 retirement pension in an amount less than the amount he would be
59-1 entitled to receive as a Group A Member.
59-2 (5) A former Group B Member who was not a Group B
59-3 Member after May 1, 1990, shall receive a retirement pension
59-4 calculated under the applicable provisions of this Plan B as in
59-5 effect on the date he left Active Service.
59-6 (6) A former Group B Member who was not a Group B
59-7 Member after April 30, 1990, may request an actuarially reduced
59-8 retirement pension commencing no earlier than his forty-fifth
59-9 (45th) birthday, but before his fiftieth (50th) birthday. A former
59-10 Group B Member described in the preceding sentence shall receive a
59-11 retirement pension under the applicable provisions of Plan B as in
59-12 effect on the date he left Active Service, but reduced by
59-13 two-thirds of one percent (2/3%) per month for each whole calendar
59-14 month such pension would commence prior to the month in which the
59-15 former Group B Member attains age fifty (50).
59-16 Sec. 6.03. DISABILITY BENEFITS.
59-17 (a) If a Member becomes disabled to the extent that he
59-18 cannot perform his duties with his Department, such Member may make
59-19 application for disability pension, in accordance with any uniform
59-20 and nondiscriminatory disability application procedure adopted by
59-21 the Board and as in effect from time to time.
59-22 (b) no disability pension will be paid until the Member has
59-23 been prevented, by a disability, from performing his duties with
59-24 his Department for a period of at least ninety (90) consecutive
59-25 calendar days and no disability benefits will be paid for any
60-1 portion of said ninety (90) day period. The Board may waive the
60-2 above described waiting period upon request by the Member, provided
60-3 such request is supported by such credible evidence acceptable to
60-4 the Board that the disability is wholly and immediately
60-5 incapacitating.
60-6 (c) No disability pension will be paid for any disability if
60-7 the Member's disability was a result of such Member's commission of
60-8 a felony; however, such restriction may be waived by the Board in
60-9 the event if believes that facts exist that would mitigate the
60-10 denial of the Member's application for a disability pension.
60-11 (d) No disability pension will be paid to a Member for any
60-12 disability if the Member's disability was a result of an
60-13 intentionally self-inflicted injury or a chronic illness itself
60-14 resulting from an addiction by the Member through a protracted
60-15 course of non-coerced indulgence in alcohol, narcotics or other
60-16 substance abuse.
60-17 (e) No disability pension will be paid until the Health
60-18 Director has either examined the Member or reviewed reports of the
60-19 Member's physical or mental condition submitted to the Health
60-20 Director by competent outside medical practitioners.
60-21 (f) No disability pension will be paid if the Chief of the
60-22 Member's Department is able to provide the Member with duties that
60-23 are within such Member's physical or mental capabilities, so long
60-24 as the Board agrees that the duties are within the Member's
60-25 capabilities, even though such duties are different from the duties
61-1 the Member had performed prior to the disability.
61-2 (g) Application for a disability pension shall be subject to
61-3 the following conditions:
61-4 (1) Written application for a disability pension must
61-5 be filed with the Administrator.
61-6 (2) The application must be accompanied by a
61-7 recommendation from the Health Director. This recommendation
61-8 should contain a statement indicating whether the Member became
61-9 disabled while he was on duty, or while he was off duty, and
61-10 whether said disability was service connected or non-service
61-11 connected.
61-12 (3) The recommendation from the Health Director should
61-13 also contain a statement indicating the date the Member became
61-14 disabled, or indicating that the disability prevented such Member
61-15 from performing his duties for a period of not less than ninety
61-16 (90) days.
61-17 (4) The application will be considered at the meeting
61-18 of the Board held during the month the disability pension is to
61-19 become effective, or as soon after the effective date of the
61-20 disability pension as possible. No disability pension will be
61-21 paid, however, until the Board has approved the application.
61-22 (h) If a person who become a Group B Member pursuant to
61-23 Section 5.01(b)(5) of this Act, withdrew his contributions pursuant
61-24 to Section 4.04 of this Act, and left Active Service with vested
61-25 rights in the Old Plan, Plan A, or the Combined Pension Plan as in
62-1 existence prior to January 1, 1993, such Group B Member must, upon
62-2 his return to Active Service, earn five (5) years of Pension
62-3 Service after said return in order to receive a Group B disability
62-4 pension. If such Group B Member is disabled prior to earning five
62-5 (5) years of Pension Service following his return to Active Service
62-6 he may only receive a Group A disability pension.
62-7 Sec. 6.04. CALCULATION OF GROUP A DISABILITY PENSION.
62-8 (a) Where a Group A Member's application for a Group A
62-9 disability pension has been approved by the Board, pursuant to the
62-10 provisions of Section 6.03 of this Act, including any procedures
62-11 adopted thereunder, such Group A Member may elect to receive a
62-12 Group A disability pension calculated in the same manner as the
62-13 benefit under Sections 6.01(a)(1) and (2) of this Act or under
62-14 Section 6.04(b) below. Such election, once made, shall be
62-15 irrevocable.
62-16 (b) When a Group A Member elects to accept a Group A
62-17 disability pension under this Section 6.04(b), it shall be
62-18 calculated as follows:
62-19 (1) Service Connected. Where such Group A Member's
62-20 disability results during the performance of his duties with either
62-21 Department he shall be entitled to a monthly disability pension
62-22 calculated as follows:
62-23 (A) (I) at a rate of three percent (3%) of Base
62-24 Pay for each year (and prorated for fractional years) of Pension
62-25 Service, with a minimum of twenty (20) years of Pension Service
63-1 being deemed credited (or sixty percent (60%) of Base Pay) and a
63-2 maximum of thirty (32) years of Pension Service (or ninety-six
63-3 percent (96%) of Base Pay);
63-4 (II) if the Group A Member had thirty-four
63-5 (34) or more years of Pension Service as of May 1, 1990, he shall
63-6 receive the greater of a disability pension calculated under the
63-7 terms of the Combined Pension Plan as in effect on such date, or as
63-8 calculated under Section 6.04(b)(1)(A)(I); plus
63-9 (B) one-half (1/2) of the Longevity Pay the
63-10 Group A Member was receiving at the time he left Active Service;
63-11 plus
63-12 (C) one-twenty-fourth (1/24th) (without
63-13 subsequent adjustment) of the annualized amount of City Service
63-14 Incentive Pay such Group A Member received at the time he left
63-15 Active Service (notwithstanding the preceding, those Group A
63-16 Pensioners who are on Disability Retirement, payments under this
63-17 Section 6.04(b)(1)(C) are contingent upon the City's continuing
63-18 payment of such City Service Incentive Pay to Group A Members on
63-19 Active Service).
63-20 For purposes for this Section
63-21 6.04(b)(1)(C), Base Pay and Longevity Pay are the amounts in effect
63-22 on the date the benefits are to begin, without subsequent
63-23 adjustment.
63-24 (2) Non-Service Connected. Where such Group A
63-25 Member's disability does not result during the performance of his
64-1 duties with either Department he shall be entitled to a monthly
64-2 disability pension calculated as follows:
64-3 (A) (I) at a rate of three percent (3%) of Base
64-4 Pay for each year (and prorated for fractional years) of Pension
64-5 Service, with a maximum of thirty (32) years of Pension Service (or
64-6 ninety-six percent (96%) of Base Pay);
64-7 (II) if the Group A Member had thirty-four
64-8 (34) or more years of Pension Service as of April 30, 1990, he
64-9 shall receive the greater of a disability pension calculated under
64-10 the terms of the Combined Pension Plan as in effect on such date,
64-11 or as calculated under Section 6.04(b)(2)(A)(I) of this Act; plus
64-12 (B) one-half (1/2) of the Longevity Pay the
64-13 Group A Member was receiving at the time he left Active Service;
64-14 plus
64-15 (C) one-twenty-fourth (1/24th) of the annualized
64-16 amount of City Service Incentive Pay such Group A Member received
64-17 at the time he left Active Service (without regard to any
64-18 subsequent adjustment). Notwithstanding the preceding, those
64-19 Pensioners who are on Disability Retirement, payments under this
64-20 Section 6.04(a)(2)(C) are contingent upon the City's continuing
64-21 payment of such City Service Incentive Pay to Group A Members on
64-22 Active Service.
64-23 For purposes of this Section 6.04(b)(2)(C),
64-24 Base Pay and Longevity Pay are the amounts in effect on the date
64-25 the benefits are to begin, without subsequent adjustment.
65-1 Sec. 6.05. CALCULATION OF GROUP B DISABILITY BENEFITS.
65-2 (a) Where a Group B Member's application for a Group B
65-3 disability pension has been approved by the Board, pursuant to the
65-4 provisions of Section 6.03 of this Act, including any procedures
65-5 adopted thereunder, such Group B Member may, depending upon the
65-6 circumstances, elect to receive a Group B disability pension
65-7 calculated in the manner described in Section 6.05(b) or (c).
65-8 (b) Service Connected. The Group B disability pension for
65-9 any Group B Member who becomes disabled during the performance of
65-10 his duties with either Department, he shall be entitled to a
65-11 monthly disability pension calculated as follows:
65-12 (1) At a rate of three percent (3%) of the average
65-13 Computation Pay determined over the sixty (60) consecutive months
65-14 in which the Group B Member received his highest Computation Pay
65-15 multiplied by his years (and prorated for fractional years) of
65-16 Pension Service with a minimum of twenty (20) years of Pension
65-17 Service being deemed credited (or sixty percent (60%) of average
65-18 Computation Pay determined over sixty (60) consecutive months in
65-19 which the Group B Member received his highest Computation Pay).
65-20 If the Group B Member has less than five (5)
65-21 years of Pension Service then such Group B Member's average
65-22 Computation Pay will be computed based upon his entire Pension
65-23 Service.
65-24 (2) If a Group B Member has thirty-four (34) or more
65-25 years of Pension Service as of April 30, 1990, such Group B Member
66-1 shall be entitled to receive the greater of a Group B disability
66-2 pension calculated under the terms of Plan B as in effect on such
66-3 date or calculated pursuant to Section 6.05(b)(1).
66-4 (c) Non-Service Connected. The Group B disability pension
66-5 for any Group B Member whose disability does not result during the
66-6 performance of his duties with either Department, shall be computed
66-7 as follows:
66-8 (1) At a rate of three percent (3%) of the average
66-9 Computation Pay determined over the sixty (60) consecutive months
66-10 in which the Group B Member received his highest Computation Pay
66-11 multiplied by his years (and prorated for fractional years) of
66-12 Pension Service; provided, however, that any partial year of
66-13 Pension Service for the first twenty (20) years of Pension Service
66-14 shall be counted as a full year of Pension Service. If the Group B
66-15 Member has less than five (5) years of total Pension Service, then
66-16 such Group B Member's average Computation Pay will be computed
66-17 based upon his entire Pension Service.
66-18 (2) If a Group B Member has thirty-four (34) or more
66-19 years of Pension Service as of April 30, 1990, such Group B Member
66-20 shall be entitled to receive the greater of a disability pension
66-21 calculated under the terms of Plan B as in effect on such date or
66-22 calculated pursuant to Section 6.05(a) (1).
66-23 (d) Notwithstanding the language of Section 6.05(b) or (c),
66-24 the Board shall require any Group B Pensioner who became a member
66-25 of Plan B or the Combined Pension Plan on or after May 1, 1990, and
67-1 who is receiving a Group B disability pension in accordance with
67-2 Section 6.05(b) or (c), to provide the Board annually, on or before
67-3 May 1 of each year thereafter, with a true and complete copy of
67-4 those portions of his federal (and where applicable, state) tax
67-5 return (including schedule(s) thereto) for the previous calendar
67-6 year that indicate his occupation(s) and earned income for the
67-7 previous calendar year. However, the Board may decide to waive the
67-8 May 1 date in lieu of one later in the same calendar year where the
67-9 Group B Pensioner provides the Board with a true and complete copy
67-10 of a grant of an extension of time for the filing of said tax
67-11 return(s) from the appropriate governmental agency (or a true and
67-12 complete copy of an extension request which results in any
67-13 automatic extension). If such Group B Pensioner is or has been
67-14 receiving earned income from employment or employments (including
67-15 self-employment) during such preceding year the Board shall reduce
67-16 future disability pension payments to the Group B Pensioner in
67-17 accordance with the following formula: one dollar ($1) for each
67-18 one dollar ($1) that the sum of "a" + "b" is greater than "c",
67-19 where "a" is the earned income of the Group B Pensioner
67-20 attributable to the previous calendar year from such employment (s)
67-21 and "b" is the total amount of Group B disability pension received
67-22 by the Group B Pensioner the previous calendar year and where "c"
67-23 is the annualized amount of the average Computation Pay the Group B
67-24 Pensioner received as of the date when he left Active Service (for
67-25 purposes of this computation, the average Computation Pay shall be
68-1 deemed increased at a rate of four percent (4%) simple interest (no
68-2 compounding during the year) as of each January 1, that the Group B
68-3 Pensioner receives a Group B disability pension).
68-4 For purposes of this Section 6.05(d), the phrase
68-5 "earned income" shall mean income earned by the Group B Pensioner
68-6 in the form of wages, salaries, commissions, fees, tips,
68-7 unemployment benefits, and other amounts received by virtue of
68-8 employment or self-employment but paid before any deduction for
68-9 taxes or insurance. In addition, earned income shall also include
68-10 those amounts contributed on a before tax basis to any retirement
68-11 plan and/or employee health and welfare benefit plan.
68-12 Sec. 6.06. GENERAL RULES GOVERNING DEATH BENEFITS.
68-13 (a) Any award of a death benefit shall be subject to the
68-14 following conditions:
68-15 (1) written application for benefits must be filed
68-16 with the Administrator;
68-17 (2) the application will be considered at the meeting
68-18 of the Board held during the month death benefits are to become
68-19 effective, or as soon as possible after the date the benefits
68-20 become effective. No benefits will be paid, however, until the
68-21 Board has approved the application; and
68-22 (3) The Board may require the applicant to provide
68-23 proof of eligibility, such as marriage licenses, birth
68-24 certificates, adoption papers, or sworn statements. The Board may
68-25 withhold any death benefit until the eligibility of the applicant
69-1 has been confirmed.
69-2 (b) Where, as described in Section 6.06(l), the Qualified
69-3 Surviving Child(ren) are not or are no longer entitled to death
69-4 benefits, the Qualified Surviving Spouse shall only be entitled to
69-5 receive a share of the death benefits in the amount calculated in
69-6 Section 6.07(a) or (b) or 6.08(b)(1), (c)(1), (d)(1), and (e)(1) of
69-7 this Act, whichever is applicable, and shall not be entitled to
69-8 what otherwise would be the Qualified Surviving Child(ren)'s share.
69-9 In case there is no Qualifying Surviving Spouse, any Qualified
69-10 Surviving Child(ren) shall receive only the amount calculated in
69-11 Section 6.07(a) or (b) or 6.08(b)(2), (c)(2), (d)(2), or (e)(2) of
69-12 this Act, whichever is applicable, and shall not be entitled to
69-13 what otherwise would be the Qualified Surviving Spouse's share. In
69-14 case there is no Qualified Surviving Spouse and Qualified Surviving
69-15 Child(ren), any Qualified Dependent Parent(s) shall only receive
69-16 the amount calculated in Section 6.07(c) or 6.08(b)(3), (d)(3), or
69-17 (e)(3) of this Act, whichever is applicable, and shall not be
69-18 entitled to what otherwise would be the Qualified Surviving
69-19 Spouse's or Qualified Surviving Children's share.
69-20 (c) In no instance shall the death benefit received by the
69-21 Qualified Surviving Spouse, Qualified Surviving Child(ren), or
69-22 Qualified Dependent Parent(s) exceed the pension to which the
69-23 deceased Primary Party was entitled per month.
69-24 (d) Where there is no surviving Spouse or legal guardian for
69-25 the Qualified Surviving Child(ren) and where the Board determines
70-1 that the Qualified Surviving Child(ren) lack the discretion to
70-2 handle money, or in other appropriate circumstances,
70-3 notwithstanding any other provision of this Section 6.06, the Board
70-4 may request a court of competent jurisdiction to appoint a suitable
70-5 person to receive and administer the Qualified Surviving
70-6 Child(ren)'s money or in those circumstances described in Section
70-7 6.06(k), appoint a new trustee to administer the Qualified
70-8 Surviving Child(ren)'s "Support Trust".
70-9 (e) With the exception of a "Support Trust" described in
70-10 Section 6.06(k), no death benefits awarded to Qualified Surviving
70-11 Child(ren) may be used for any purpose other than to benefit such
70-12 Qualified Surviving Child(ren). The Board may withhold payment of
70-13 benefits if it has reason to believe such benefits are not being
70-14 properly applied.
70-15 (f) Death benefits paid to Qualified Surviving Child(ren)
70-16 living with a surviving Spouse shall be delivered to the Spouse who
70-17 shall be required to use the benefits on behalf of such Qualified
70-18 Surviving Child(ren).
70-19 (g) With the exception of those circumstances described in
70-20 Section 6.06(k), death benefits paid to Qualified Surviving
70-21 Child(ren) living with some person other than the surviving Spouse
70-22 shall be delivered to the person with whom the Qualified Surviving
70-23 Child(ren) are living, provided the Board has designated such
70-24 person as being a suitable person to receive and administer the
70-25 benefits. The Board may, however, withhold payment of benefits to
71-1 anyone but the legal guardian of the Qualified Surviving
71-2 Child(ren), and may require proof that a person has been appointed
71-3 legal guardian of the Qualified Surviving Child(ren) before
71-4 authorizing any benefits to be delivered to such person.
71-5 (h) The Qualified Surviving Dependent Parent(s) of the
71-6 Member shall receive survivor benefits, if any are elsewhere
71-7 provided for hereunder, for the remainder of their lives.
71-8 (i) The Board may require all persons receiving death
71-9 benefits, including Qualified Surviving Spouses, Qualified
71-10 Surviving Child(ren) or their guardians, and Qualified Surviving
71-11 Dependent Parent(s), to file with the Administrator, at least once
71-12 every two (2) years, a sworn statement concerning their eligibility
71-13 to continue to receive death benefits. The Board may also require
71-14 such a sworn statement from any person receiving death benefits at
71-15 any time. The Board may withhold death benefits from any person
71-16 who fails or refuses to file such a statement when requested to do
71-17 so.
71-18 (j) When the last Qualified Survivor of any Primary Party
71-19 becomes ineligible to continue to receive death benefits, then that
71-20 survivor shall be paid in a lump sum an amount equal to the
71-21 difference, if any, between the total amount of all contributions
71-22 made to the Fund while a Member, and the sum of all benefits paid
71-23 to the Primary Party and/or all of his Qualified Survivors. The
71-24 total amount to be paid in benefits to the Primary Party and all
71-25 Qualified Survivors shall never be less than the total amount of
72-1 contributions the Primary Party made to the Fund while a Member.
72-2 (k) Notwithstanding any other provision of this Section
72-3 6.06, death benefits awarded to the unmarried Qualified Surviving
72-4 Child of a Primary Party who is determined by the Board to be
72-5 handicapped under the terms of Section 6.06(l), may be paid to the
72-6 trustee of a trust established for the benefit of said Qualified
72-7 Surviving Child (hereinafter referred to as a "Support Trust")
72-8 provided the following requirements are satisfied:
72-9 (1) an opinion of counsel of the trustee of the
72-10 Support Trust is furnished to the Board indicating that payments
72-11 made to the Support Trust will not, under existing law, be
72-12 considered a "resource" of the Qualified Surviving Child under
72-13 Title 42, section 1396(a)(17) of the United States Code or any
72-14 successor statute, as well as applicable state law or regulation
72-15 governing same;
72-16 (2) coincident with the furnishing of the opinion of
72-17 counsel, the Board is provided with an executed original of the
72-18 Support Trust for the records of the Pension System;
72-19 (3) while the Board shall have no legal responsibility
72-20 to oversee the Support Trust, the terms of said trust shall provide
72-21 that the Board will receive an annual accounting of the Support
72-22 Trust from its trustee;
72-23 (4) the Support Trust will terminate as soon as
72-24 practicable upon the earlier occurrence of the following events:
72-25 (A) the date on which the Qualified Surviving
73-1 Child is determined by the Board to no longer be handicapped under
73-2 the terms of Section 6.06;
73-3 (B) the date on which the Qualified Surviving
73-4 Child is lawfully married;
73-5 (C) the date on which the Qualified Surviving
73-6 Child is deceased;
73-7 (D) the date on which the assets of the Support
73-8 trust are deemed to be the "resources" of the Child under
73-9 applicable federal or state laws and/or regulations; or
73-10 (E) unless otherwise excused by the Board, the
73-11 trustee of the Support Trust fails to provide the Board with an
73-12 annual accounting of the trust within six (6) months after the
73-13 close of said Support Trust's fiscal year.
73-14 (l) When a Qualified Surviving Child who is entitled to
73-15 receive death benefits under this Act reaches the age of nineteen
73-16 (19) years, such Qualified Surviving Child shall no longer
73-17 participate in the division of said benefits, but the same
73-18 undiminished Qualified Surviving Child's share as determined above
73-19 shall be paid to the remaining the Qualified Surviving Child(ren),
73-20 if any, under nineteen (19) years of age. However, handicapped
73-21 Qualified Surviving Child shall not be removed from participation
73-22 in the division of such benefits upon reaching the age of nineteen
73-23 (19) years nor shall they be barred from original participation at
73-24 any time after reaching the age of nineteen (19) years and such
73-25 payments shall continue for the duration of such handicap.
74-1 Further, notwithstanding cessation of benefits to a Qualified
74-2 Surviving Child upon attaining age nineteen (19), if such Qualified
74-3 Surviving Child is not yet married and then, subsequent to
74-4 cessation of benefits (due to attaining age nineteen (19)), but
74-5 prior to age twenty-three (23), become handicapped, he shall be
74-6 entitled to participate in the division of death benefits under
74-7 this Act. Notwithstanding the preceding, all death benefits
74-8 granted under this Section 6.06(l) are conditioned upon the Board
74-9 finding that:
74-10 (1) such Qualified Surviving Child is so physically or
74-11 mentally handicapped, either congenitally or through injury
74-12 suffered or disease contracted, as to be unable to support
74-13 themselves or to secure and hold gainful employment or pursue an
74-14 occupation;
74-15 (2) such Qualified Surviving Child is not married;
74-16 (3) such handicap was not the result of an
74-17 occupational injury for which the Qualified Surviving Child
74-18 received compensation equal to or greater than that provided under
74-19 this Act.
74-20 If the Qualified Surviving Child received or are
74-21 receiving compensation resulting from an occupational injury equal
74-22 to an amount less than the death benefit to be provided under this
74-23 Section the difference shall be paid out of the assets of the Fund
74-24 in the form otherwise payable as monthly benefits. Solely for
74-25 purposes of this Section 6.06(l), if a lump sum is awarded for an
75-1 injury, the Fund's actuary may compute a corresponding monthly
75-2 equivalent.
75-3 (4) such handicap was not the result of an
75-4 international self-inflicted injury or a chronic illness itself
75-5 resulting from an addiction of the Qualified Surviving Child
75-6 through a protracted course of non-coerced indulgence in alcohol,
75-7 narcotics, or other substance abuse; and
75-8 (5) such handicap did not occur as a result of the
75-9 Qualified Surviving Child's participation in the commission of a
75-10 felony.
75-11 A finding relating to Qualified Surviving Child's
75-12 handicap is subject to review and modification by the Board.
75-13 (m) Upon the death or marriage of any Qualified Surviving
75-14 Child granted death benefits under this Act, the death benefits
75-15 shall cease; however, the same undiminished Qualified Surviving
75-16 Child's share as determined above shall be uniformly distributed
75-17 among any remaining unmarried Qualified Surviving Child(ren) who
75-18 are under nineteen (19) years of age and any unmarried Qualified
75-19 Surviving Child(ren) who are handicapped as described in Section
75-20 6.06(l).
75-21 (n) No Spouse resulting from any marriage to a former Member
75-22 or Pensioner subsequent to the date of such person's leaving Active
75-23 Service shall be deemed to be a Qualified Surviving Spouse or be
75-24 entitled to death benefits under this Act.
75-25 (o) In order to be eligible for death benefits under this
76-1 Act, Qualified Surviving Child(ren) must be conceived, born, or
76-2 legally adopted before the Primary Party leaves Active Service.
76-3 (p) A Qualified Surviving Spouse who first remarried on or
76-4 after April 21, 1988, shall be eligible to receive death benefits
76-5 for the remainder of such qualified Surviving Spouse's life. This
76-6 Section 6.06(p) shall have no retroactive effect.
76-7 Sec. 6.07. GROUP A DEATH BENEFITS.
76-8 (a) (1) In case of the death of a Group A Member before
76-9 Service Retirement, and before the Group A Member had twenty (20)
76-10 years of Pension Service, leaving both a Qualified Surviving Spouse
76-11 and Qualified Surviving Child(ren), such Qualified Surviving Spouse
76-12 shall make an election for all such survivors to receive a Group A
76-13 death benefit, which in the aggregate is an amount equal to a Group
76-14 A retirement pension computed under the terms of either Section
76-15 6.01(a) or (b) of this Act as though such Group A Member had
76-16 completed twenty (20) years of Pension Service. Such election,
76-17 once made, shall be irrevocable. Such Group A death benefit shall
76-18 be divided one-half (1/2) to the Qualified Surviving Spouse and
76-19 one-half (1/2) to the Qualified Surviving Child(ren).
76-20 (2) In case of the death of a Group A Pensioner during
76-21 Disability Retirement and before the Group A Pensioner had twenty
76-22 (20) years of Pension Service, leaving both a Qualified Surviving
76-23 Spouse and Qualified Child(ren), such survivors in the aggregate
76-24 shall receive a Group A death benefit calculated either: (i) under
76-25 the provisions of Section 6.01(a) of this Act if such Group A
77-1 Pensioner's Group A disability pension was calculated under the
77-2 provisions of Section 6.04(a) of this Act; or (ii) under the
77-3 provisions of Section 6.01(b) of this Act if such Group A
77-4 Pensioner's Group A disability pension had been calculated under
77-5 the provisions of Section 6.04(b) of this Act. Such Group A death
77-6 benefit shall be divided one-half (1/2) to the Qualified Surviving
77-7 Spouse and one-half (1/2) to the Qualified Surviving Child(ren).
77-8 (b) (1) In case of the death of a Group A Member or former
77-9 Group A Member before Service Retirement, and after the Group A
77-10 Member or former Group A Member had twenty (20) years of Pension
77-11 Service, leaving both a Qualified Surviving Spouse and Qualified
77-12 Surviving Child(ren), such Qualified Surviving Spouse shall make an
77-13 election for all such survivors to receive a Group A death benefit
77-14 of an amount equal to a Group A retirement pension the Group A
77-15 Member or former Group A Member would have received had he left
77-16 Active Service on the date of death, computed under the terms of
77-17 either Section 6.01(a) or (b) of this Act. Such election, once
77-18 made, shall be irrevocable. Such Group A death benefit shall be
77-19 divided one-half (1/2) to the Qualified Surviving Spouse and
77-20 one-half (1/2) to the Qualified Surviving Child(ren).
77-21 (2) In case of the death of a Group A Pensioner,
77-22 leaving both a Qualified Surviving Spouse and Qualified Surviving
77-23 Child(ren), such Qualified Surviving Spouse shall make an election
77-24 for all such survivors to receive a Group A death benefit in the
77-25 amount of the Group A retirement pension being received by such
78-1 Group A Pensioner prior to his death. Such Group A death benefit
78-2 shall be divided one-half (1/2) to the Qualified Surviving Spouse
78-3 and one-half (1/2) to the Qualified Surviving Child(ren).
78-4 With the exception of those circumstances
78-5 described in Section 6.06(k) of this Act, the Group A death
78-6 benefits awarded to the Qualified Survivors in the above instances
78-7 shall be paid entirely to the Qualified Surviving Spouse, one-half
78-8 (1/2) for the Qualified Surviving Spouse's benefit and one-half
78-9 (1/2) for the Qualified Surviving Child(ren)'s benefit, and the
78-10 Qualified Surviving Child(ren)'s one-half (1/2) share shall be
78-11 equally and uniformly distributed by the Qualified Surviving Spouse
78-12 to them.
78-13 (c) (1) Where a Group A Member or former Group A Member
78-14 dies leaving no Qualified Surviving Spouse or Qualified Surviving
78-15 Child(ren), but leaves surviving him Qualified Surviving Dependent
78-16 Parent(s), such Qualified Surviving Dependent Parent(s) may elect
78-17 to receive a Group A death benefit equal to the Group A retirement
78-18 pension such Group A Member or former Group A Member would have
78-19 been entitled to under either Section 6.01(a) or (b) of this Act
78-20 after leaving Active Service. In the case of two (2) Qualified
78-21 Dependent Parents, such election must be mutual. Such election,
78-22 once made, shall be irrevocable. In the case of a Group A
78-23 Pensioner, such Qualified Dependent Parents shall receive a Group A
78-24 death benefit equal to the amount of the actual Group A retirement
78-25 pension being so received; such Group A death benefits shall be
79-1 divided equally between the Qualified Surviving Dependent Parents.
79-2 (2) In case of the death of a Group A Pensioner during
79-3 Disability Retirement and before the Group A Pensioner had twenty
79-4 (20) years of Pension Service, leaving no Qualified Surviving
79-5 spouse or Qualified Surviving Children, but leaves surviving him
79-6 Qualified Surviving Dependent Parent(s), such Qualified Surviving
79-7 Dependent Parent(s) may elect to receive a Group A death benefit
79-8 calculated either: (i) under the provisions of Section 6.01(a) of
79-9 this Act if the Group A Pensioner's Group A Disability Pension was
79-10 calculated under the provisions of Section 6.04(a) of this Act; or
79-11 (ii) under the provisions of Section 6.01(b) of this Act if such
79-12 Group A pensioner's Group A Disability Pension had been calculated
79-13 under the provisions of Section 6.04(b) of this Act. Such
79-14 election, once made, shall be irrevocable.
79-15 (d) Where there is only one (1) Qualified Surviving
79-16 Dependent Parent, such Qualified Dependent Parent shall be entitled
79-17 to one-half (1/2) of the amount determined under Section 6.07(c)(1)
79-18 or (2).
79-19 Sec. 6.08. GROUP B DEATH BENEFITS.
79-20 (a) If (i) a Group B Member dies while he is on Active
79-21 Service, (ii) a former Group B Member (who is vested pursuant to
79-22 Section 5.06 of this Act) dies, or (iii) a Group B Pensioner dies
79-23 while on Service or Disability Retirement, such person's Qualified
79-24 Survivor(s), or the guardian of the Qualified Surviving Child(ren)
79-25 if no Qualified Surviving Spouse exists, may make application for
80-1 Group B death benefits. The Qualified Surviving Spouse of a Group
80-2 B Member or former Group B Member identified in the preceding
80-3 sentence, or the guardian of the Qualified Surviving Child(ren) of
80-4 such person if no Qualified Surviving Spouse exists, or the
80-5 Qualified Dependent Parent(s) if no Qualified Surviving Spouse or
80-6 Qualified Surviving Child(ren) exist, shall have the option to
80-7 select whether Group A or Group B death benefits are received,
80-8 provided that such Group B Member or former Group B Member was
80-9 eligible to receive either a Group A or Group B retirement pension.
80-10 A Qualified Survivor(s) who receives Group A death benefits
80-11 pursuant to the preceding sentence shall be entitled to a ratable
80-12 portion of a reimbursement from the Fund in the same amount and
80-13 manner determined at Section 5.03(c). A Qualified Survivor(s) or
80-14 guardian desiring a refund of such excess contributions must make
80-15 application for the refund with the Administrator within three (3)
80-16 years of the date such Qualified Survivor(s) or his guardian makes
80-17 application for Group A death benefits. In no event shall the
80-18 option contained in this Section 6.08(a) be available to Qualified
80-19 Survivors of a Group B Member or former Group B Member (as
80-20 described above) who had, at the time of his death, already applied
80-21 for a retirement pension and selected a Group A retirement pension
80-22 as provided in Section 5.03(c). In such case, the Qualified
80-23 Survivor(s) shall only be entitled to receive a Group A death
80-24 benefit.
80-25 (b) Death benefits shall be computed as follows for the
81-1 Qualified Survivors of Group B Members who die while on Active
81-2 Service:
81-3 (1) A Qualified Surviving Spouse's Group B death
81-4 benefit shall be computed at the rate of one and one-half percent
81-5 (1.5%) of the Group B Member's average Computation Pay determined
81-6 over the sixty (60) consecutive months in which the Group B Member
81-7 received the highest Computation Pay, for each year (and prorated
81-8 for fractional years) of Pension Service with a minimum of twenty
81-9 (20) years of Pension Service being deemed credited (or thirty
81-10 percent (30%) of the average Computation Pay determined over the
81-11 sixty (60) consecutive months in which the Member received his
81-12 highest Computation Pay) and a maximum of thirty-two (32) years of
81-13 Pension Service (or forty-eight percent (48%) of the average
81-14 Computation Pay determined over the sixty (60) consecutive months
81-15 in which the Group B Member received his highest Computation Pay).
81-16 If the Group B Member had less than five (5) years of Pension
81-17 Service, then his average Computation Pay will be computed based
81-18 upon his entire Pension Service.
81-19 (2) A Qualified Surviving Child(ren)'s Group B death
81-20 benefit shall be computed in the same manner as a Qualified
81-21 Surviving Spouse's benefit is computed in Section 6.08(b)(1) above,
81-22 such benefit to then be divided equally among all of the Qualified
81-23 Surviving Children.
81-24 (3) Each Qualified Surviving Dependent Parent's Group
81-25 B death benefit shall be computed in the same manner as a Qualified
82-1 Surviving Spouse's Group B benefit is computed in
82-2 Section 6.08(b)(1).
82-3 (c) Group B death benefits shall be computed as follows for
82-4 the Qualified Survivors of any former Group B Member who died after
82-5 leaving Active Service and who had vested rights pursuant to the
82-6 provisions of Section 5.06 of this Act, but who had not received
82-7 Group B retirement benefits pursuant to Section 6.02 of this Act at
82-8 the time of his death:
82-9 (1) The Qualified Surviving Spouse of such former
82-10 Group B Member shall be entitled to a Group B death benefit equal
82-11 to fifty percent (50%) of any Group B retirement pension the former
82-12 Group B Member would have been entitled to under the provisions of
82-13 Section 6.02 as of the date the former Group B Member left Active
82-14 Service.
82-15 (2) The Qualified Surviving Child(ren) of such former
82-16 Group B Member shall be entitled to a Group B benefit calculated in
82-17 the same manner as the Group B death benefit of a Qualified
82-18 Surviving Spouse. Such death benefit to be divided equally between
82-19 all of such Qualified Surviving Child(ren).
82-20 (3) Each of the Group B Qualified Surviving Dependent
82-21 Parents of such former Group B Member shall be entitled to a Group
82-22 B death benefit equal to fifty percent (50%) of any Group B
82-23 retirement pension the former Group B Member would have been
82-24 entitled to under the provisions of Section 6.02 of this Act, as of
82-25 the date the former Group B Member left Active Service.
83-1 (d) Group B death benefits shall be computed as follows for
83-2 the Qualified Survivors of any Group B Pensioner of this Plan who
83-3 dies:
83-4 (1) The Qualified Surviving Spouse of a Group B
83-5 Pensioner shall be entitled to Group B death benefits equal to
83-6 fifty percent (50%) of any retirement pension the Group B Pensioner
83-7 was receiving at the time of his death.
83-8 (2) The Qualified Surviving Child(ren) of such Group B
83-9 Pensioner shall be entitled to a Group B death benefit calculated
83-10 in the same manner as the Group B death benefit of a Qualified
83-11 Surviving Spouse. Such Group B death benefit to be divided equally
83-12 between all of such Qualified Surviving Child(ren).
83-13 (3) Each of the Qualified Surviving Dependent Parents
83-14 of such Group B Pensioner shall be entitled to a Group B death
83-15 benefit equal to fifty percent (50%) of any retirement pension the
83-16 Group B Pensioner was receiving at the time of his death.
83-17 (e) Group B death benefits shall be computed as follows for
83-18 the Qualified Survivors of any Group B Pensioner who dies while
83-19 receiving a Group B disability pension due to either a
83-20 service-connected or other than service-connected disability:
83-21 (1) The Qualified Surviving Spouse of such Group B
83-22 Pensioner shall be entitled to Group B death benefits equal to
83-23 fifty percent (50%) of any Group B disability pension the Group B
83-24 Pensioner would have been entitled to under the provisions of
83-25 Section 6.05 of this Act as of the date the Group B Pensioner left
84-1 Active Service because of disability, or the Qualified Surviving
84-2 Spouse of such Group B Pensioner shall be entitled to Group B death
84-3 benefits equal to fifty percent (50%) of any Group B disability
84-4 pension the Group B Pensioner was receiving at the time of his
84-5 death, whichever survivor benefit is greater.
84-6 (2) The Qualified Surviving Child(ren) of such Group B
84-7 Pensioner shall be entitled to a Group B death benefit calculated
84-8 in the same manner as the Group B death benefit of a Qualified
84-9 Surviving Spouse. Such Group B death benefit to be divided equally
84-10 between all of such Qualified Surviving Child(ren).
84-11 (3) Each of the Qualified Surviving Dependent Parents
84-12 of such Group B Pensioner shall be entitled to a Group B death
84-13 benefit equal to fifty per cent (50%) of any disability pension the
84-14 Group B Pensioner would have been entitled to under the provisions
84-15 of Section 6.05 of this Act as of the date the Group B Pensioner
84-16 left Active Service because of disability; or each of the Qualified
84-17 Surviving Dependent Parents of such Group B Pensioner shall be
84-18 entitled to a Group B death benefit equal to fifty percent (50%) of
84-19 any Group B disability pension the Group B Pensioner was receiving
84-20 at the time of his death, whichever Group B death benefit is
84-21 greater.
84-22 Sec. 6.09. QUALIFIED SURVIVING SPOUSE SPECIAL DEATH BENEFIT.
84-23 (a) Notwithstanding Sections 6.06 and 6.07 of this Act, the
84-24 Qualified Surviving Spouse of a Group A Primary Party shall be
84-25 entitled to a special Section 6.09 death benefit if the following
85-1 requirements are met:
85-2 (1) the Group A Primary Party elected to receive a
85-3 Group A retirement pension and later died, or was receiving a
85-4 disability or retirement pension either under the terms of Plan A
85-5 prior to the original enactment of this Act or elected to receive
85-6 Group A retirement pension under Sections 6.01(b) of this Act and
85-7 later dies, or was receiving a Group A disability pension under
85-8 Section 6.04(b)(1) of this Act and later dies;
85-9 (2) The Group A Primary Party (i) had at least twenty
85-10 (20) years of Pension Service and leaves Active Service after
85-11 October 1, 1985, and was at least age fifty-five (55) years or
85-12 older; or (ii) on or after May 1, 1990, the Group A Primary Party,
85-13 after accruing at least twenty (20) years of Pension Service,
85-14 leaves Active Service and had a total of at least eighty (80)
85-15 credits, with each year of Pension Service (and prorated for
85-16 fractional years) equal to one (1) credit and with each year of age
85-17 (and prorated for fractional years) equal to one (1) credit; and
85-18 (3) The Qualified Surviving Spouse has attained age
85-19 fifty-five (55) years or older, and there are no Qualified
85-20 Surviving Child(ren) eligible for death benefits.
85-21 (b) Until such time as all of the requirements of
85-22 Section 6.10(a) are satisfied, a Qualified Surviving Spouse shall
85-23 receive a Group A death benefit in accordance with the provisions
85-24 of Section 6.07 of this Act.
85-25 (c) The special Section 6.10 Group A death benefit shall be
86-1 calculated based upon the following formula:
86-2 (P x P x A) + (P x C) + D
86-3 Service Retirement, dies, or becomes disabled + Longevity Pay +
86-4 1/12th (last received City Service Incentive Pay);
86-5 the Group A Primary Party begins Service Retirement, dies or
86-6 becomes disabled;
86-7 Party's Group A retirement pension or Group A disability pension
86-8 pursuant to the provisions of Section 6.12 of this Act times the
86-9 amount of such adjustments;
86-10 Spouse's Group A death benefit pursuant to the provisions of
86-11 Section 6.12 of this Act times the amount of such adjustments.
86-12 Example 1: Officer Z dies while on Active Service. At the
86-13 time of Officer Z's death, he was fifty-five (55) years old and had
86-14 thirty (30) years of Pension Service. Base Pay at the time of
86-15 Officer Z's death is Two Thousand Four Hundred and Sixteen Dollars
86-16 ($2,416.00). Officer Z's Qualified Surviving Spouse "X" is age
86-17 fifty-five (55) at the time of his death and there are no Qualified
86-18 Surviving Child(ren). Assuming that at the time he left Active
86-19 Service Officer Z was receiving Longevity Pay of one hundred
86-20 dollars ($100.00) per month and his last received City Service
86-21 Incentive Pay was Three Hundred Dollars ($300.00) per year, X's
86-22 death benefit will be calculated as follows:
86-23 made)
86-24 this Act, therefore, no adjustment)
86-25 (P x P x A) + (P x C) + D
87-1 Example 2: Same facts as above except Officer Z dies after
87-2 being on Service Retirement for four (4) years:
87-3 of (b) of this Act, therefore, no adjustment)
87-4 (P x P x A) + (P x C) + D
87-5 (80.9% x 80.9% x $2,541.00) + (80.9% x $328.92) + 0 =
87-6 $1,929.14
87-7 Example 3: Same facts as above except X is age fifty (50) at
87-8 the time of Officer Z's death. X will therefore receive a Group A
87-9 death benefit pursuant to Section 6.04(b) of this Act equal to
87-10 one-half (1/2) of Officer Z's Group A Retirement plus the sum of
87-11 any annual adjustments to her Group A death benefit until she
87-12 reaches age fifty-five (55). X's benefit at age fifty-five (55)
87-13 will be calculated as follows:
87-14 (P x P x A) + (P x C) + D=
87-15 $2,134.69
87-16 (d) Notwithstanding Sections 6.03 and 6.05, of this Act a
87-17 Qualified Surviving Spouse of a Group B Primary Party who is
87-18 entitled to any death benefits under Sections 6.06 and 6.08, of
87-19 this Act shall also be entitled to a special Section 6.09 benefit
87-20 if the following requirements are met:
87-21 (1) The Group B Primary Party elected to receive a
87-22 Group B Retirement Pension and later dies, or was receiving a Group
87-23 B disability or retirement pension either under the terms of this
87-24 Act and later dies;
87-25 (2) the Group B Primary Party:
88-1 (A) had at least twenty (20) years of Pension
88-2 Service; and leaves Active Service after October 1, 1985, and was
88-3 at least age fifty-five (55) years or older at the time of leaving
88-4 Active Service; or
88-5 (B) on or after May 1, 1990, the Group B Primary
88-6 Party leaves Active Service having a total of at least eighty (80)
88-7 credits, with each year of Pension Service (and prorated for
88-8 fractional years) equal to one (1) credit and with each year of age
88-9 (and prorated for fractional years) equal to one (1) credit; and
88-10 (3) the Qualified Surviving Spouse has attained age
88-11 fifty-five (55) years or older, and there are no Qualified
88-12 Surviving Child(ren).
88-13 (d) Until such time as all of the requirements of this
88-14 Section 6.09 are satisfied, a Qualified Surviving Spouse shall only
88-15 receive a Group B death benefit in accordance with the provisions
88-16 of Sections 6.03 and 6.05 of this Act.
88-17 (e) This special Section 6.09 survivor benefit shall be
88-18 calculated based upon the following formula:
88-19 (P x P x A) + (P x C) + D
88-20 Primary Party begins Service Retirement, dies, or becomes disabled;
88-21 B disability pension calculated at the time the Group B Primary
88-22 Party begins Service or Disability Retirement or dies;
88-23 Group B Primary Party's Group B retirement pension or Group B
88-24 disability pension pursuant to Section 6.12 of this Act, times the
88-25 amount of such adjustments;
89-1 Spouse's Group B death benefit pursuant to Section 6.12 of this
89-2 Act, times the amount of such adjustments;
89-3 Example 1: Officer Z dies while on Active Service. At the
89-4 time of Officer Z's death, Officer Z was fifty-five (55) years old
89-5 and had thirty (30) years of Pension Service. Officer Z's
89-6 Computation Pay at the time of Officer Z's death is Two Thousand
89-7 Five Hundred and Forty-One Dollars ($2,541.00). Officer Z's
89-8 retirement pension would have been Two Thousand Two Hundred
89-9 Eighty-Six Dollars and Ninety Cents ($2,286.90). Officer Z's
89-10 Qualified Surviving Spouse "X" is age fifty-five (55) at the time
89-11 of Officer Z's death, and there are no Qualified Surviving
89-12 Child(ren) eligible for death benefits. X's death benefit will be
89-13 calculated as follows:
89-14 made)
89-15 (P x P x A) + (P x C) + D =
89-16 Example 2: Same facts as above except Officer Z dies after
89-17 being on Service Retirement for four (4) years:
89-18 this Act, therefore, no adjustment)
89-19 (P x P x A) + (P x C) + D =
89-20 (90.0% x 90.0% x $2,541.00) + (90.0% x 365.90) + 0 =
89-21 $2,387.52
89-22 Example 3: Same facts as Example 2, above, except X is age
89-23 fifty (50) at the time of Officer Z's death. X will therefore
89-24 receive a Group B death benefit pursuant to Section 6.08 of this
89-25 Act equal to one-half (1/2) of Officer Z's Group B retirement
90-1 pension calculated at the time Officer Z began Service Retirement
90-2 plus the sum of any annual adjustments to X's Group B death benefit
90-3 until X reaches age fifty-five (55). X's death benefit at age
90-4 fifty-five (55) will be calculated as follows:
90-5 (P x P x A) + (P x C) + D =
90-6 (90.0% x 90.0% x $2,541.00) + (90.0% x 365.90) + 228.69
90-7 Example 4: Group B Member T dies while on Active Service.
90-8 At the time of Group B Member T's death, Group B Member T was
90-9 52.164 years old and had 29.328 years of Pension Service. Group B
90-10 Member T's spouse was age fifty-five (55) at the time of Group B
90-11 Member T's death. Group B Member T's survivor benefit will be:
90-12 (P x P x A) + (P x C) + D =
90-13 (87.984% x 87.984% x $2,541.00) + (87.984% x 0.00) + 0.00 =
90-14 $1,967.03
90-15 Sec. 6.10. MINIMUM BENEFITS TO GROUP A PRIMARY PARTIES AND THEIR
90-16 QUALIFIED SURVIVORS.
90-17 Except as provided in Section 6.10(a) and (f) any benefit
90-18 computation and determination to the contrary contained in this Act
90-19 notwithstanding, the following minimum Group A benefits shall be
90-20 made to any Group A Primary Party, or his Qualified Survivors as
90-21 described herein. Such benefits under this section 6.10 shall be
90-22 distributed in accordance with provisions of Section 6.01, 6.04,
90-23 and 6.07 of this Act, whichever is applicable. Notwithstanding the
90-24 preceding sentence, a Group A Primary Party or his Qualified
90-25 Survivor(s), receiving actuarially reduced benefits due to such
91-1 Primary Party's request to receive his Group A retirement pension
91-2 before age fifty-five (55), shall not be entitled to the Group A
91-3 minimum benefits specified under this Section 6.10. Further, an
91-4 Alternate Payee shall not be entitled to the Group A minimum
91-5 benefits specified in this Section 6.10.
91-6 (a) A Group A Primary Party who left Active Service with
91-7 twenty (20) or more years Pension Service shall be entitled to
91-8 receive a minimum monthly Group A retirement benefit of One
91-9 Thousand Five Hundred Dollars ($1,500.00). If such Group A Primary
91-10 Party's Group A retirement pension is subject to a Qualified
91-11 Domestic Relations Order and the sum of the actuarial equivalents
91-12 of the monthly benefits payable to the Group A Primary Party and
91-13 the Alternative Payee is less than the actuarial equivalent of a
91-14 One Thousand Five Hundred Dollars ($1,500.00) monthly Group A
91-15 retirement pension, then such or Group A Primary Party's monthly
91-16 Group A retirement pension will be increased so that the sum of the
91-17 actuarial equivalents of the Alternate Payee's and such Group A
91-18 Primary Party's monthly Group A retirement pension equals the
91-19 actuarial equivalent of a One Thousand Five Hundred Dollars
91-20 ($1,500.00) monthly Group A retirement pension.
91-21 Example: When X leaves Active Service he will draw a monthly
91-22 Group A retirement pension of Nine Hundred Dollars ($900.00)
91-23 calculated under the formula contained in Section 6.01(b) of this
91-24 Act. Under this Section 6.10, this Group A retirement pension
91-25 would be increased to One Thousand Five Hundred Dollars ($1,500.00)
92-1 per month.
92-2 (b) A Qualified Surviving Spouse of a Group A Primary Party
92-3 shall receive a minimum monthly Group A death benefit of Seven
92-4 Hundred and Fifty Dollars ($750.00) or fifty percent (50%) of the
92-5 Group A retirement pension which the Group A Primary Party would
92-6 otherwise have been entitled, whichever is greater.
92-7 Example: X draws a Group A retirement pension of One
92-8 Thousand and One Hundred Dollars ($1,100.00) per month and dies.
92-9 X's Qualified Surviving Spouse is entitled to a minimum monthly
92-10 Group A death benefit of Seven Hundred and Fifty Dollars ($750.00)
92-11 per month. Had X's Group A retirement pension been One Thousand
92-12 Six Hundred Dollars ($1,600.00) per month under these
92-13 circumstances, the Qualified Surviving Spouse's death benefit would
92-14 be Eight Hundred Fifty Dollars ($800.00) per month.
92-15 (c) A Qualified Surviving Spouse of a Group A Primary Party,
92-16 where there are Qualified Surviving Child(ren), shall receive a
92-17 minimum monthly Group A death benefit of Seven Hundred and Fifty
92-18 Dollars ($750.00) per month or fifty percent (50%) of the monthly
92-19 Group A retirement pension which the Group A Primary Party would
92-20 have otherwise been entitled to receive, whichever is greater. The
92-21 Qualified Surviving Child(ren), as a group, shall receive a minimum
92-22 monthly Group A death benefit of Seven Hundred and Fifty Dollars
92-23 ($750.00) or fifty percent (50%) of the Group A retirement pension
92-24 the Group A Primary Party would otherwise have been entitled to
92-25 receive, whichever is greater, to be divided equally among them.
93-1 Example: X draws a Group A retirement pension of One
93-2 Thousand For Hundred Dollars ($1,400.00) per month and dies,
93-3 leaving an Qualified Surviving Spouse and two (2) Qualified
93-4 Surviving Children. The Qualified Surviving Spouse receives a
93-5 Group A minimum death benefit of Seven Hundred and Fifty Dollars
93-6 ($750.00) per month and each of the two (2) Qualified Surviving
93-7 Children receive a Group A minimum death benefit of Three Hundred
93-8 and Seventy Five Dollars ($375.00) per month. Had X's Group A
93-9 retirement pension been One Thousand Six Hundred Dollars
93-10 ($1,600.00) per month under these circumstances, the Qualified
93-11 Surviving Spouse receives a monthly Group A death benefit of Eight
93-12 Hundred Dollars ($800.00) and each of the two (2) Eligible Children
93-13 receives a monthly Group A death benefit of Four Hundred Dollars
93-14 ($400.00) per month.
93-15 (d) Qualified Surviving Child(ren) of a Group A Primary
93-16 Party as a group shall receive a minimum monthly Group A death
93-17 benefit of Seven Hundred and Fifty Dollars ($750.00) per month or
93-18 fifty percent (50%) of the Group A retirement pension which the
93-19 Group A Primary Party would otherwise have been entitled, whichever
93-20 is greater, to be divided equally among them.
93-21 Example: X draws a Group A retirement pension of One
93-22 Thousand and One Hundred Dollars ($1,100.00) per month and dies
93-23 leaving no Qualified Surviving Spouse, but leaving three (3)
93-24 Qualified Surviving Children. Each such Qualified Surviving Child
93-25 draws a Group A death benefit of Two Hundred and Fifty Dollars
94-1 ($250.00) per month or Seven Hundred and Fifty Dollars ($750.00)
94-2 per month total. Had X's Group A retirement pension been Eighteen
94-3 Hundred Dollars ($1,800.00) per month under these circumstances,
94-4 each Qualified Surviving Child would draw a Group A death benefit
94-5 of Three Hundred Dollars ($300.00) per month or a total amount of
94-6 Nine Hundred Dollars ($900.00) per month, being fifty percent (50%)
94-7 of the monthly Group A retirement pension.
94-8 (e) In the absence of both an Qualified Surviving Spouse and
94-9 Qualified Surviving Child(ren) of a Group A Primary Party, each of
94-10 the Qualified Surviving Dependent Parents of such deceased Group A
94-11 Primary Party will receive Seven Hundred and Fifty Dollars
94-12 ($750.00) or fifty percent (50%) of the monthly Group A retirement
94-13 pension which the Group A Primary Party would otherwise have been
94-14 entitled, whichever is greater. In the event only one of them is
94-15 surviving, such Qualified Surviving Dependent Parent shall receive
94-16 a Group A death benefit equal to Seven Hundred and Fifty Dollars
94-17 ($750.00) or fifty percent (50%) of the Group A retirement pension,
94-18 whichever is greater.
94-19 Example: X draws a Group A retirement pension of One
94-20 Thousand Six Hundred Dollars ($16,00.00) per month and dies leaving
94-21 no Qualified Surviving Spouse and no Qualified Surviving Children,
94-22 but leaves Qualified Dependent Parents. Each Qualified Dependent
94-23 Parent receives a Group A death benefit of Eight Hundred Dollars
94-24 ($800.00) per month. If there is only one Qualified Surviving
94-25 Dependent Parent, the Group A death benefit would be the same Eight
95-1 Hundred Dollars ($800.00) per month or one-half of the Group A
95-2 retirement pension. Had X's Group A retirement pension been One
95-3 Thousand Five Hundred Dollars ($1,500.00) per month these payments
95-4 would have been equal to Seven Hundred and Fifty Dollars ($750.00)
95-5 per month to each Qualified Surviving Dependent Parent.
95-6 (f) Notwithstanding the minimum monthly benefit as described
95-7 in other sections of this Section 6.10, A Group A Primary Party who
95-8 leaves Active Service on a non-service connected disability under
95-9 the provisions of Section 6.04 (b)(2) of this Act with less than
95-10 twenty (2) years Pension Service shall receive a minimum monthly
95-11 Group A disability pension equal to Seventy-Five Dollars ($75.00)
95-12 multiplied by the number of his years of Pension Service.
95-13 If such Group A Primary Party's benefit is subject to a
95-14 Qualified Domestic Relations Order, and the sum of the actuarial
95-15 equivalents of the monthly benefits payable to such Group A Primary
95-16 Party and his Alternative Payee is less than the actuarial
95-17 equivalent of the monthly Group A disability pension determined
95-18 under the preceding paragraph, then such Group A Primary Party's
95-19 monthly Group A disability pension will be increased so that the
95-20 sum of the actuarial equivalents of the Alternate Payee's and such
95-21 Group A Primary Party's monthly Group A disability pension equal
95-22 the amount determined under the preceding paragraph.
95-23 (g) In the event of the death of a Group A Pensioner who
95-24 received a non-service connected disability under the provisions of
95-25 Section 6.04 (b) (2) of this Act prior to the completion of twenty
96-1 (20) years Pension Service, the Qualified Surviving Spouse and/or
96-2 Qualified Surviving Child(ren) (as a group) will each receive the
96-3 amount specified in Section 6.07 of this Act or the minimum monthly
96-4 Group A death benefit granted to the survivors as stated in Section
96-5 6.10(b), (c), (d), or (e), as applicable, whichever is greater.
96-6 Example 1: X received a non-service connected Group A
96-7 disability pension with ten (10) years of Pension Service. His
96-8 monthly Group A disability retirement pension as calculated under
96-9 Section 6.04(b) (2) of this Act is equal to Forty-Five Dollars
96-10 ($45.00) multiplied by the ten (10) years of Pension Service or
96-11 Four Hundred and Fifty Dollars ($450.00). The minimum of
96-12 Seventy-Five Dollars ($75.00) per year of Pension Service would
96-13 apply. X's monthly Group A disability pension would be Seven
96-14 Hundred and Fifty Dollars ($750.00).
96-15 Example 2: Y has eighteen (18) years of Pension Service and
96-16 draws a non-service connected Group A disability pension of Nine
96-17 Hundred Dollars ($900.00) per month and dies leaving a Qualified
96-18 Surviving Spouse and two Qualified Surviving Children. The Group A
96-19 death benefits calculated under Section 6.07(a) (2) of this Act are
96-20 Nine Hundred Dollars ($900.00) and one-half (1/2) thereof is Four
96-21 Hundred and Fifty Dollars ($450.00). The monthly Group A death
96-22 benefits will be calculated as in Section 6.10(c), with a minimum
96-23 monthly Group A death benefit of Seven Hundred and Fifty Dollars
96-24 ($750.00) for the Qualified Surviving Spouse, and a monthly Group A
96-25 death benefit for the two Qualified Surviving Spouse, and a monthly
97-1 Group A death benefit for the two Qualified Surviving Children of
97-2 Seven Hundred and Fifty Dollars ($750.00).
97-3 Sec. 6.11. MINIMUM BENEFITS TO GROUP B PRIMARY PARTIES AND THEIR
97-4 QUALIFIED SURVIVORS
97-5 Except as provided in Sections 6.02, 6.05, and 6.08 of this
97-6 Act, and in Sections 6.11(a), (b), and (g) below, anything to the
97-7 contrary contained in this Act, the following minimum monthly Group
97-8 A benefit payments shall be made. A Primary Party or Qualified
97-9 Survivor receiving an actuarially reduced Group B retirement
97-10 pension due to the Group B Pensioner's request to receive a Group A
97-11 retirement pension at or after age forty-five (45), but before age
97-12 fifty (50), or an Alternative Payee of such Group B Pensioner,
97-13 shall not be entitled to the minimum monthly retirement pension
97-14 specified in this Section 6.11.
97-15 (a) If a Group B Primary Party retired with twenty (2) or
97-16 more years of Pension Service he shall be entitled to receive a
97-17 Group B minimum monthly retirement pension of One Thousand Five
97-18 Hundred Dollars ($1,500.00). If a Group B Primary Party's Group B
97-19 retirement pension is or becomes subject to a Qualified Domestic
97-20 Relations Order, and the sum of the actuarial equivalents of the
97-21 monthly Group B retirement pension payable to the Group B Primary
97-22 Party and the Alternate Payee is less than the actuarial equivalent
97-23 of the monthly Group B retirement pension as calculated in the
97-24 preceding sentence, then the Group B Primary Party's monthly Group
97-25 B retirement pension will be increased so that the sum of the
98-1 actuarial equivalents of the Alternative Payee's and the Group B
98-2 Primary Party's Group B retirement pensions equals the actuarial
98-3 equivalent of the minimum monthly Group B retirement pension as
98-4 calculated in the preceding sentence.
98-5 Example: X retires after thirty (30) years of Pension
98-6 Service and would draw One Thousand Four Hundred Dollars
98-7 ($1,400.00) calculated under the formula contained in Section 6.02
98-8 of this Act. X's Group B retirement pension would be increased to
98-9 the minimum monthly retirement pension of One Thousand Five Hundred
98-10 Dollars ($1,500.00).
98-11 (b) If a Group B Primary Party retired with less than twenty
98-12 (20) years of Pension Service, he shall be entitled to receive a
98-13 minimum monthly Group B retirement pension of One Thousand Five
98-14 Hundred Dollars ($1,500.00) divided by twenty (20) and multiplied
98-15 by the Group B Primary Party's number of years of Pension Service,
98-16 or the amount specified in Section 6.02 of this Act, whichever is
98-17 greater. If a Group B Primary Party's retirement pension is or
98-18 becomes subject to a Qualified Domestic Relations Order, and the
98-19 sum of the actuarial equivalents of the monthly Group B retirement
98-20 pension payable to the Group B Primary Party and the Alternate
98-21 Payee is less than the actuarial equivalent of the monthly
98-22 retirement pension as calculated in the preceding sentence, then
98-23 the Group B Primary Party's monthly Group B retirement pension will
98-24 be increased so that the sum of the actuarial equivalents of the
98-25 Alternate Payee's and the Group B Primary Party's monthly Group B
99-1 retirement pensions equal the actuarial equivalent of the minimum
99-2 monthly Group B retirement pension as calculated in the preceding
99-3 sentence.
99-4 Example: X retires after ten (10) years of Pension Service
99-5 and would draw Four Hundred Dollars ($400) per month as calculated
99-6 under the formula contained in Section 6.02 of this Act. The
99-7 minimum monthly Group B retirement pension calculated under this
99-8 Section 6.11(b) is One Thousand Five Hundred Dollars ($1,500.00)
99-9 divided by twenty and times ten which equals Seven Hundred and
99-10 Pension would be Seven Hundred Fifty Dollars ($750.00).
99-11 (c) A Qualified Surviving Spouse shall receive a minimum
99-12 monthly Group B death benefit of Seven Hundred and Fifty Dollars
99-13 ($750.00) or fifty percent (50%) of the Group B Primary Party's
99-14 monthly Group B retirement pension, whichever is greater.
99-15 Example: X draws a Group B retirement pension of One
99-16 Thousand Four Hundred Dollars ($1,400.00) per month and dies. The
99-17 Qualified Surviving Spouse is entitled to a Group B minimum death
99-18 benefit of Seven Hundred Fifty Dollars ($750.00) per month. Had
99-19 X's Group B retirement pension been One Thousand Eight Hundred
99-20 Dollars ($1,800.00) per month under these circumstances, the
99-21 Qualified Surviving Spouse's death benefit would be Nine Hundred
99-22 Dollars ($900.00).
99-23 (d) A Qualified Surviving Spouse, where there are Qualified
99-24 Surviving Child(ren), shall receive a minimum monthly Group B death
99-25 benefit of fifty percent (50%) of the minimum monthly Group B
100-1 retirement pension described in Sections 6.11(a) or (b) above, or
100-2 fifty percent (50%) of the Group B Primary Party's monthly
100-3 retirement pension, whichever is greater. The Qualified Surviving
100-4 Child(ren), as a group, shall receive a minimum monthly Group B
100-5 death benefit of fifty percent (50%) of the minimum monthly Group B
100-6 retirement pension described in Sections 6.11(a) or (b) above, or
100-7 fifty percent (50%) of the Group B Primary Party's monthly Group B
100-8 retirement pension, whichever is greater, to be divided equally
100-9 among them.
100-10 Example: X draws a Group B retirement pension of One
100-11 Thousand Four Hundred Dollars ($1,400.00) per month and dies
100-12 leaving a Qualified Surviving Spouse and two (2) Qualified
100-13 Surviving Children. The Qualified Surviving Spouse receives a Group
100-14 B minimum monthly death benefit of Seven Hundred and Fifty Dollars
100-15 ($750.00) per month, and each of the two (2) Qualified Surviving
100-16 Children receives Three Hundred and Seventy-Five Dollars ($375.00)
100-17 per month. Had X's retirement pension been One Thousand Eight
100-18 Hundred Dollars ($1,800.00) per month under these circumstances,
100-19 each share would be Nine Hundred Dollars ($900.00) and each of the
100-20 two (2) Qualified Surviving Children would receive Four Hundred and
100-21 Fifty Dollars ($450.00) per month.
100-22 (e) Qualified Surviving Children as a group shall receive a
100-23 minimum monthly Group B death benefit of Seven Hundred Fifty
100-24 Dollars ($750.00), or fifty percent (50%) of the Group B Primary
100-25 Party's monthly Group B retirement pension, whichever is greater,
101-1 to be divided equally between them.
101-2 Example: X draws a Group B retirement pension of One
101-3 Thousand Four Hundred Dollars ($1,400.00) per month and dies
101-4 leaving no Qualified Surviving Spouse, but leaving three (3)
101-5 Qualified Surviving Children. Each child would draw a Group B
101-6 minimum monthly death benefit of Two Hundred and Fifty Dollars
101-7 ($250.00) per month or Seven Hundred and Fifty Dollars ($750.00)
101-8 total for all three Qualified Surviving Children. Had X's Group B
101-9 retirement pension been One Thousand Eight Hundred Dollars
101-10 ($1,800.00) per month, under these circumstances each child would
101-11 draw Three Hundred Dollars ($300.00) per month or a total amount of
101-12 Nine Hundred Dollars ($900.00), being fifty percent (50%) of the
101-13 Group B retirement pension.
101-14 (f) In the absence of either a Qualified Surviving Spouse or
101-15 Qualified Surviving Child(ren), each of the Qualified Surviving
101-16 Dependent Parents of the deceased Primary Party shall receive fifty
101-17 percent (50%) of the Group B Primary Party's minimum monthly Group
101-18 B retirement pension described in Sections 6.11(a) or (b) above, or
101-19 fifty percent (50%) of the Group B Primary Party's monthly Group B
101-20 retirement pension, whichever is greater. In the event only one
101-21 (1) of such Qualified Surviving Dependent Parents is surviving,
101-22 such parent shall receive fifty percent (50%) of the minimum
101-23 monthly Group B retirement pension described in Sections 6.11(a) or
101-24 (b) above, or fifty percent (50%) of the Group B Primary Party's
101-25 monthly Group B retirement pension, whichever is greater.
102-1 Example: X draws a Group B retirement pension of One
102-2 Thousand One Hundred Dollars ($1,00.00) and dies leaving no
102-3 Qualified Surviving Spouse and no Qualified Surviving Child(ren),
102-4 but leaves Qualified Surviving Dependent Parents. Each such
102-5 Dependent Parent receives a Group B minimum monthly death benefit
102-6 of Seven Hundred and Fifty Dollars ($750.00) per month. If only
102-7 one (1) such parent is surviving, the Group B death benefit shall
102-8 be the Seven Hundred and Fifty Dollars ($750.00) per month, or
102-9 one-half (1/2) of the monthly Group B retirement pension. Had X's
102-10 Group B retirement pension been One Thousand Eight Hundred Dollars
102-11 ($1,800.00), these payments would have been Nine Hundred Dollars
102-12 ($900.00) to the Qualified Surviving Dependent Parent.
102-13 (g) Despite the minimum monthly Group B retirement pension
102-14 otherwise described in this Section 6.11, A Group B Primary Party
102-15 who left Active Service on a non-service connected disability with
102-16 less than twenty (20) years of Pension Service shall receive a
102-17 minimum monthly Group B disability pension equal to Seventy-Five
102-18 Dollars ($75.00) multiplied by the number of years of his Pension
102-19 Service. If such Group B Primary Party's Group B disability
102-20 pension is or becomes subject to a Qualified Domestic Relations
102-21 Order, and the sum of the actuarial equivalents of the monthly
102-22 Group B disability pension payable to the Group B Primary Party and
102-23 his Alternate Payee is less than the actuarial equivalent of the
102-24 monthly disability pension as calculated in the preceding sentence,
102-25 the Group B Primary Party's monthly Group B disability pension will
103-1 be increased so that the sum of the actuarial equivalents of the
103-2 Alternative Payee's and the Group B Primary Party monthly Group B
103-3 disability pensions equals the actuarial equivalent of the minimum
103-4 monthly Group B disability pension as calculated in the preceding
103-5 sentence, multiplied by the Group B Primary Party's number of years
103-6 of Pension Service. In the event of the death of a Group B Private
103-7 Party who was receiving a non-service connected Group B disability
103-8 pension prior to his completion of twenty (20) years Pension
103-9 Service, the Qualified Survivors will receive the amount specified
103-10 in Section 6.08 of this Act, or the Group B minimum monthly death
103-11 benefits granted to Qualified Survivors as stated in Sections
103-12 6.11(c), (d), (e) and (f) above, as applicable, whichever is
103-13 greater.
103-14 Example: X retires on a non-service connected Group B
103-15 disability pension with ten (10) years of Pension Service. X's
103-16 monthly Group B disability pension as calculated under Section 6.05
103-17 of this Act is Six Hundred and Fifty Dollars ($650.00). The
103-18 minimum of Seventy-Five Dollars ($75.00) per year of Pension
103-19 Service would apply; and thus, X's monthly Group B disability
103-20 pension would be Seven Hundred and Fifty Dollars ($750.00).
103-21 Example 2: Y with ten (10) years of Pension Service receives
103-22 a non-service connected Group B disability pension of Seven Hundred
103-23 and Fifty Dollars ($750.00) per month and dies leaving a Qualified
103-24 Surviving Spouse and two Qualified Surviving Children. The
103-25 Qualified Group B death benefits calculated under Section 6.08 of
104-1 this Act are Nine Hundred Dollars ($900.00), and fifty percent
104-2 (50%) thereof is Four Hundred Fifty Dollars ($450.00). Therefore,
104-3 the combined Group B minimum death benefits of the Qualified
104-4 Survivors will be Seven Hundred and Fifty Dollars ($750.00),
104-5 calculated as in Section 6.11(d) above.
104-6 Sec. 6.12 ADJUSTMENTS TO RETIREMENT AND DISABILITY PENSION
104-7 BENEFITS.
104-8 (a) Annually on the first day of October, a retirement
104-9 pension calculated pursuant to either Section 6.01 or 6.02 of this
104-10 Act, disability pension calculated under either Section 6.04 or
104-11 6.05 of this Act or a death benefit calculated pursuant to Section
104-12 6.07 or 6.08 of this Act currently in pay status, or then pending
104-13 Board approval on the last day of September, will be increased by
104-14 an amount equal to four percent (4%) of the original retirement or
104-15 disability pension or death benefit (no compounding of these
104-16 changes).
104-17 (b) The minimum monthly benefits provided to a Primary Party
104-18 or Qualified Survivor(s) under Section 6.10 or Section 6.11 of this
104-19 Act shall be adjusted in the same manner described in Section
104-20 6.12(a); however, such adjustments shall apply to the amount of the
104-21 minimum monthly benefit first received by the Primary Party or
104-22 Qualified Survivor(s) after September 30, 1992 (the "Base
104-23 Benefit"). In the event that the Base Benefit of a Primary Party
104-24 or Qualified Survivor is an amount less than the minimum monthly
104-25 benefit currently provided for under either Section 6.10 or 6.11 of
105-1 this Act, then such minimum monthly benefit shall not be increased
105-2 until such time as the adjusted Base Benefit exceeds said minimum
105-3 monthly benefit.
105-4 (c) In no event shall Group B retirement or Group B
105-5 disability pension paid to any Group B Pensioner ever be less than
105-6 such Group B Pensioner's Base Pension. In no event shall the death
105-7 benefit of any Group B Qualified Surviving Spouse, Group B
105-8 Qualified Surviving Dependent Parent(s) (as a group) or Group B
105-9 Qualifying Surviving Child(ren) (as a group) be less than fifty
105-10 percent (50%) a Group B Pensioner's Base Pension.
105-11 Sec. 6.13. SUPPLEMENT TO CERTAIN RECIPIENTS AGE 55 OR OLDER.
105-12 If a Pensioner had at least twenty (20) years of Pension
105-13 Service under any plan adopted pursuant to Article 6243a or this
105-14 Act, or if a Pensioner is receiving a service connected disability
105-15 pension, then such Pensioner, his Qualified Surviving Spouse who is
105-16 eligible to receive benefits under this Act, or Qualified
105-17 Child(ren) (as a group) under Section 6.016(1) of this Act shall
105-18 upon the Pensioner or Qualified Surviving Spouse attaining age
105-19 fifty-five (55) receive a monthly supplement equal to Fifty Dollars
105-20 ($50.00) or three percent (3%) of "their total monthly benefit",
105-21 whichever is greater; and for years beginning on and after January
105-22 1, 1991, the monthly supplement will be equal to Seventy-Five
105-23 Dollars ($75.00) or three percent (3%) of their total monthly
105-24 benefit, whichever is greater. For purposes of calculating this
105-25 Section 6.13 supplement only, the phrase "their total monthly
106-1 benefit" shall mean the amount payable to a Pensioner or Qualified
106-2 Survivor(s) under the terms of the above-referenced plans to which
106-3 such Pensioner or Qualified Survivor(s) elected to receive benefits
106-4 under, but shall not include the supplement authorized by this
106-5 Section 6.13.
106-6 Sec. 6.14. DEFERRED RETIREMENT OPTION PLAN.
106-7 In lieu of either leaving Active Service and commencing a
106-8 retirement pension as provided for under Sections 6.01 or 6.02 of
106-9 this Act, whichever is applicable, or remaining in Active Service
106-10 and continuing to accrue additional pension benefits as provided
106-11 under Sections 6.01 or 6.02, a Member who is eligible to receive an
106-12 unreduced retirement pension pursuant to Sections 6.01 or 6.02, may
106-13 remain in Active Service, become a participant in the Deferred
106-14 Retirement Option Plan ("DROP") in accordance with Sections 6.14(a)
106-15 and (b), and defer commencement of his retirement pension. Once an
106-16 election to participate in the DROP has been made, the election
106-17 shall continue in effect as long as the Member remains in Active
106-18 Service. Upon leaving Active Service, the Member may apply for a
106-19 retirement pension under the terms of Sections 6.01(a), (b) or
106-20 6.02, whichever is applicable, together with any DROP benefit
106-21 provided under this Section 6.14.
106-22 (a) The election to participate in the DROP shall be made in
106-23 accordance with procedures set forth in any uniform and
106-24 nondiscriminatory election form adopted by the Board and in effect
106-25 from time to time. In order to determine the proper amount to be
107-1 credited to a Member's DROP Account, as set forth below, such
107-2 election shall indicate whether the Member desires to receive a
107-3 retirement pension under either Section 6.01(a), (b) or 6.02 of
107-4 this Act, whichever is applicable. In addition, such election
107-5 shall be made at any time on or after the date the Member becomes
107-6 eligible for an unreduced retirement pension under Sections
107-7 6.01(a), (b) or 6.02, whichever is applicable, and shall be
107-8 effective on the first day of the first month after such Member
107-9 makes such election. On and after the effective date of such
107-10 election, the Member shall no longer make Member contributions to
107-11 the Fund notwithstanding the provisions of Section 4.03(b) or (f)
107-12 of this Act, whichever is applicable. However, the election by one
107-13 or more Members of participate in the DROP shall have no effect on
107-14 the amount of City contributions to the Fund under the provisions
107-15 of Section 4.02 of this Act.
107-16 (b) Each month after a Member has made an election to
107-17 participate in the DROP (and thus indicated his desire to receive a
107-18 retirement pension under Sections 6.01(a), (b) or Section 6.02 of
107-19 this Act, whichever is applicable) and until he leaves Active
107-20 Service, an amount equal to the retirement pension such Member
107-21 would have received, pursuant to his election of retirement
107-22 benefits under Sections 6.01(a) or (b) or Section 6.04, whichever
107-23 is applicable of this Act, for that month if he had left Active
107-24 Service and been granted said retirement pension by the Board on
107-25 the effective date of DROP participation shall be transferred to a
108-1 separate DROP account maintained within the Fund for the benefit of
108-2 such Member. Amounts held in a Member's DROP account shall be
108-3 credited at the end of each calendar month with interest at the
108-4 rate of one-twelve (1/12) of the annual rate assumed by the Pension
108-5 System's Qualified Actuary and approved by the Board as the assumed
108-6 actuarial rate of return for the Fund.
108-7 (c) Upon leaving Active Service and upon the Board's grant
108-8 of his retirement pension, a Member who participates in DROP shall
108-9 commence to receive the balance in his DROP account under whichever
108-10 of the following methods of distribution is elected by the Member:
108-11 (1) a single sum distribution made at a time selected
108-12 by the Member but not later than April 1 of the year after the
108-13 Member attains age seventy and one-half (70-1/2);
108-14 (2) an annuity to be paid in equal monthly payments
108-15 over the life of the Member, or over the joint and last survivor
108-16 life of the Member and a designated beneficiary in the same manner
108-17 as his retirement pension computed under Sections 6.01(a), (b) or
108-18 Section 6.02 of this Act, whichever is applicable; the amount of
108-19 such an annuity shall be determined as of the date the Member
108-20 leaves Active Service based on his account balance and age (and the
108-21 age of the designated beneficiary, if applicable) on that date and
108-22 using the mortality and earnings assumptions being used on that
108-23 date by the Pension System's Qualified Actuary and approved by the
108-24 Board as the assumed actuarial rate of return for the Fund.
108-25 (3) substantially equal monthly or annual payments of
109-1 his account balance commencing at a time selected by the Member
109-2 (provided such commencement occurs on or before April 1st of the
109-3 year after the Member attains age seventy and one-half (70-1/2)),
109-4 and extending over a period certain that does not exceed the life
109-5 expectancy of the Member, or the joint life and last survivor
109-6 expectancy of the Member and his designated beneficiary if
109-7 applicable. The DROP account balance of a Member who elects this
109-8 method of distribution shall be credited with interest on the
109-9 unpaid balance at the end of each calendar month in the same manner
109-10 prescribed in Section 6.14(b). A Member may change his
109-11 distribution election at any time before he attains age seventy and
109-12 one-half (70-1/2) to receive an additional payment (or payments) or
109-13 to accelerate or delay any payment (or payments) not then due,
109-14 provided that any such change is communicated to the Plan
109-15 Administrator, in accordance with procedures then in effect not
109-16 less than thirty (30 days before it is to take effect, and provided
109-17 such change does not result in a failure of the distributions to
109-18 satisfy the requirements of section 401(a)(9) of the Code.
109-19 Any election made in accordance with this Section 6.14(c) may
109-20 be changed at any time before leaving Active Service to any other
109-21 election permitted by this Section 6.14(c), subject to the
109-22 requirements for spousal consent, in Section 6.14(d)(1), if
109-23 applicable.
109-24 (d) The provisions of Sections 6.06, 6.07, and 6.08 of this
109-25 Act pertaining to death benefits of a Qualified Survivors shall not
110-1 apply to amounts held in a Member's DROP account; and the class of
110-2 persons eligible to become Qualified Survivors shall close upon the
110-3 effective date of the Member's participation in DROP. Instead, a
110-4 Member who participates in DROP may designated a beneficiary to
110-5 receive the balance of his DROP account in the event of his death
110-6 in the following manner:
110-7 (1) such beneficiary designation shall be made on an
110-8 election form adopted by the Board and in effect from time to time
110-9 and in accordance with the conditions on such form, provided,
110-10 however, that if the Member is married, the designation of a
110-11 beneficiary other than the Member's Spouse shall be valid only if
110-12 the Spouse consents to such designation at such time, in such
110-13 manner, and on such consent form as shall be adopted by the Board
110-14 and in effect from time to time.
110-15 (2) In the case of a Member who participates in DROP
110-16 and dies while in Active Service or before the commencement of such
110-17 Member's DROP account, distributions shall commence no more than
110-18 one (1) year after the Member's death under a method described in
110-19 Section 6.14(c) and shall be completed within the life, or life
110-20 expectancy, of the designated beneficiary.
110-21 (3) In the case of a Member who participates in DROP
110-22 and dies after having commenced to receive distributions in
110-23 accordance with Section 6.14(c), the balance in the Member's DROP
110-24 account shall continue to be distributed to the Member's designated
110-25 beneficiary or other person described in Section 6.14(c)(4) (if
111-1 any) in accordance with any elections that had been made under
111-2 Section 6.14(c)(4).
111-3 (4) If the deceased Member has not designated a
111-4 beneficiary or has designated a beneficiary but not a method of
111-5 distribution, such Member's DROP account shall be distributed, in a
111-6 single sum payment as soon as administratively feasible after the
111-7 Member's death to the beneficiary if one was designated and
111-8 otherwise to the spouse if the Member was married at the time of
111-9 death or, if the Member was not married, to his estate.
111-10 (5) Once a Member participates in DROP he becomes
111-11 ineligible for any disability benefits described in Sections 6.03,
111-12 6.04, and 6.05 of this Act, but instead upon the Board's
111-13 acknowledgement of a disability that would otherwise qualify such
111-14 Member for such disability benefits, the Board shall grant a
111-15 retirement pension in accordance with Sections 6.01(a), (b) or
111-16 Section 6.02 of this Act, whichever is applicable, and such Member
111-17 shall also be entitled to receive both his retirement pension and
111-18 distribution of the DROP account in accordance with Section
111-19 6.14(c).
111-20 (f) The Base Pay in effect as of the effective date of a
111-21 Group A Member's Participation in DROP shall be used in calculating
111-22 his Group A retirement pension under Section 6.01 of this Act. In
111-23 addition, a Group A Member who elects to participate in DROP shall
111-24 not accrue additional Pension Service for purposes of computing the
111-25 Group A retirement pension provided under Section 6.01(b) of this
112-1 Act for any period after the effective date of said election.
112-2 (g) A Group B Member who elects to participate in DROP shall
112-3 not accrue additional Pension Service for purposes of calculating a
112-4 Group B retirement pension under Section 6.02 of this Act, nor
112-5 shall any compensation earned by a Group B Member during said
112-6 period be considered in the calculation of said benefit.
112-7 (h) Should Pensioner who participated in DROP return to
112-8 Active Service, he must once again become a participant in DROP
112-9 under the terms and conditions in effect upon said return.
112-10 (i) Without affecting any Member's continued participation
112-11 in DROP, then notwithstanding the foregoing provisions of this
112-12 Section, no Member shall be permitted to elect to commence
112-13 participation in DROP after any date, starting no earlier than five
112-14 (5) years after the effective date of the DROP, on which the
112-15 Pension System's Qualified Actuary certifies that DROP
112-16 participation is resulting in a significant actuarial loss to the
112-17 Fund.
112-18 Sec. 6.15. MEDICAL EXAMINATION.
112-19 (a) The Board may require the following Pensioners receiving
112-20 a disability pension to appear and undergo a medical examination by
112-21 the Health Director (or, if the Health Director approves, by any
112-22 licensed medical practitioner) to determine if the disability
112-23 continues or if the disability has been removed to the extent that
112-24 the Pensioner is able to resume his duties with the Department:
112-25 (1) Any Group A Pensioner who has served less than
113-1 twenty (20) years;
113-2 (2) Any Group A Pensioner who elected a Group B
113-3 disability pension under Section 6.04(b)(2) of this Act and who has
113-4 served more than twenty (20) years but is under the age of
113-5 fifty-five (55); and
113-6 (3) Any Group B Pensioner who elected a Group B
113-7 disability under Section 6.05 of this Act and is under the age of
113-8 fifty (50).
113-9 (b) Any such medical examination shall be subject to the
113-10 following conditions:
113-11 (1) Except as otherwise provided in this Section 6.15,
113-12 the Board shall have complete discretion with regard to requiring a
113-13 Pensioner to appear and undergo a medical examination as well as
113-14 the time that may pass between examinations. When it becomes clear
113-15 to the Board from reliable medical evidence that the disability is
113-16 unequivocally permanent and is not expected to diminish, subsequent
113-17 examinations shall not be required.
113-18 (2) A Pensioner may not be required to undergo a
113-19 medical examination more often than once in a six (6) month period.
113-20 However, the Board may order the Pensioner to undergo an
113-21 examination at any time if the Board has reason to believe the
113-22 Pensioner's disability has been removed and that he may be able to
113-23 resume his duties with his Department, or if the Pensioner requests
113-24 to be allowed to return to duty.
113-25 (3) If a Pensioner fails to undergo an examination
114-1 after being notified by the Board that such an examination is
114-2 required, the Board may discontinue his disability benefits until
114-3 the Pensioner has undergone the examination and the results of the
114-4 examination have been sent to the Board.
114-5 (4) If the Pensioner is examined by an approved
114-6 outside medical practitioner other than the Health Director, the
114-7 reasonable and customary cost of the examination, if any, shall be
114-8 paid from the assets of the Fund.
114-9 (c) After a Pensioner has undergone a medical examination,
114-10 the Health Director shall provide the Board with a report of the
114-11 Pensioner's present medical condition together with such doctor's
114-12 opinion as to whether the Pensioner continues to be disabled or
114-13 whether the Pensioner is no longer disabled to the extent that he
114-14 could not resume his duties with his Department. Such a report and
114-15 opinion shall be divulged only to persons who have a legitimate
114-16 need for them.
114-17 (1) If, in the opinion of the Health Director, the
114-18 Pensioner continues to be disabled, the Board must continue payment
114-19 of benefits.
114-20 (2) If, in the opinion of the Health Director, the
114-21 Pensioner is no longer disabled, or is not so disabled that he
114-22 could not perform some duties for his Department, the Board shall
114-23 notify the Department in order to determine if a position is
114-24 available.
114-25 (3) If a position is available, the Board shall notify
115-1 the Pensioner to return to duty. Disability benefits shall
115-2 continue to be paid, however, until the Pensioner returns to Active
115-3 Service. However, if the Pensioner refuses to return to duty or is
115-4 refused employment by either Department for reasons other than
115-5 disability, the Board shall order disability payments stopped.
115-6 (4) If a position is not available, the Board must
115-7 continue payments of the Pensioner's disability pension.
115-8 (d) Pursuant to its authority under Section 6.06(l) of this
115-9 Act to review and modify any funding relating to a Qualified
115-10 Surviving Child's handicap; the Board may require a handicapped
115-11 Qualified Surviving Child receiving death benefits to appear and
115-12 undergo medical examination by the Health Director (or, if the
115-13 Health Director approves, by any licensed medical practitioner) to
115-14 determine if the handicap continues or if the handicap has been
115-15 removed.
115-16 Sec. 6.16. WAIVER OF BENEFITS.
115-17 (a) A Pensioner who is on either Service or Disability
115-18 Retirement or a Qualified Surviving Spouse, a handicapped Qualified
115-19 Surviving Child, or a Member who may be a participant in DROP, or a
115-20 beneficiary of a deceased former DROP participant, or a Qualified
115-21 Surviving Dependent Parent may, on a form prescribed by the Board
115-22 and filed with the Administrator, irrevocably waive all or a
115-23 portion of the benefits, to which the person who waives such
115-24 benefit is entitled.
115-25 (b) The irrevocable waiver described in Section 6.17(a)
116-1 applies only to retirement, disability, or DROP survivor benefits
116-2 that become payable on or after the date the waiver is filed.
116-3 (c) Where there are two (2) Qualified Surviving Dependent
116-4 Parents receiving death benefits, the waiver described in Section
116-5 6.17(a) must be executed by both of said parents.
116-6 Sec. 6.17. DENIAL OF BENEFITS: DEATH CAUSED BY SURVIVOR.
116-7 No Qualified Survivor or Beneficiary of a Member's DROP
116-8 account shall be eligible for, or entitled to, benefits when such
116-9 person is the principal or an accomplice in willfully bringing
116-10 about the death of a Primary Party or another Qualified Survivor or
116-11 Beneficiary of a Member's DROP account whose death would otherwise
116-12 have resulted in a benefit or benefit increase to such person. The
116-13 determination of the Board that such person willfully brought about
116-14 such death shall be made from a preponderance of the evidence
116-15 presented and shall not be controlled by any other finding by any
116-16 other forum, whether considered under the same or another degree of
116-17 proof.
116-18 Sec. 6.18. INVESTIGATION.
116-19 (a) The Board shall consider all applications for retirement
116-20 and disability pensions of Members all applications for death
116-21 benefits by Qualified Survivors, and all elections for
116-22 participation by a Member in DROP. The Board shall give notice to
116-23 such persons, advising of their right to appear before said Board
116-24 and offer such sworn evidence as he, or they, may desire. Any
116-25 Primary Party, Survivor, or person believing himself to be entitled
117-1 to DROP benefits may appear before the Board in person and may
117-2 offer testimony that is relevant to a contested application for a
117-3 retirement pension, disability pension, death benefit, or DROP
117-4 benefit. The Chairman of the Board shall have the authority to
117-5 issue process for witnesses and administer oaths to said witnesses
117-6 and to examine any witness as to any matter affecting benefits
117-7 under the provisions of any plan within the Pension System. Such
117-8 process for witnesses shall be served by any member of the Police
117-9 or Fire Department or by any other method of serving process or
117-10 person as permitted by the laws of the State of Texas in any civil
117-11 judicial proceeding, and upon the failure of any witness to attend
117-12 and testify, he may be compelled to attend and testify, as in any
117-13 judicial proceeding. The Board may seek assistance from any court
117-14 of competent jurisdiction to further compel or sanction a witness
117-15 who fails or refuses to attend and testify.
117-16 (b) Any Primary Party, Spouse, Child(ren) or Dependent
117-17 Parent or person believing himself to be entitled to DROP benefits
117-18 who deems himself aggrieved by a determination of the Board with
117-19 respect to his application for or continuation of a retirement
117-20 pension, disability pension, or death benefit, or an election for
117-21 DROP benefits whichever may be applicable, may appeal from such
117-22 Board determination to the state district court where the Pension
117-23 System is located by giving written notice of appeal. The notice
117-24 shall contain a statement of the grounds and reasons why the party
117-25 feels aggrieved. The notice shall be served personally on the
118-1 Secretary of the Board within twenty (20) days after the Board's
118-2 determination. After service of the notice, the party appealing
118-3 shall file with the state district court a copy of the notice of
118-4 intention to appeal, together with an affidavit of the party making
118-5 service showing how, when and on whom the notice was served.
118-6 (c) Within thirty (30) days after service of the notice of
118-7 intention to appeal upon the Board, the Secretary of the Board
118-8 shall make up and file with the state district court a transcript
118-9 of all papers and proceedings in the case before the board and when
118-10 the copy of the notice of intention to appeal and the transcript
118-11 has been filed with the court, the appeal shall be deemed perfected
118-12 and the court shall docket the appeal, assign the appeal a number,
118-13 fix a date for hearing the appeal, and notify both the appellant
118-14 and the Board of the date fixed for the hearing.
118-15 (d) At any time before rendering its decision on the appeal,
118-16 the court may require further or additional proof or information,
118-17 either documentary or under oath. On rendition of a decision on
118-18 appeal, the court shall give to each party to the appeal a copy of
118-19 the decision of the case. The decision or order of the court is
118-20 appealable in the same manner as are civil cases generally.
118-21 (e) The Board shall approve all money used for
118-22 investigations, as provided under Section 4.01 of this Act. The
118-23 Board may request the investigative services of either the Police
118-24 and/or Fire Departments in connection with any matter arising
118-25 hereunder.
119-1 Sec. 6.19. CERTIFICATE OF RETIREMENT.
119-2 When a Member has earned twenty (20) years of Pension
119-3 Service, he shall be issued a certificate of retirement, which said
119-4 certificate (barring administrative error, miscalculation or other
119-5 error) shall thereafter be incontestable. The certificate shall
119-6 state that the calculation of the retirement pension to which said
119-7 Member is entitled, or any disability benefits to which said Member
119-8 may become entitled, shall be determined solely under the actual
119-9 terms of the Combined Pension Plan. The certificate shall further
119-10 state that in the case of the Member's death, his survivors shall
119-11 be entitled to survivor benefits as determined under the terms of
119-12 the Combined Pension Plan. The certificate shall be signed by the
119-13 Mayor, or the Mayor Pro Tem, or the City Manager and by the
119-14 Chairman of the Board and attested under the seal of the City by
119-15 the City Secretary.
119-16 Sec. 7. AMENDMENT AS TO THE PENSION SYSTEM.
119-17 (a) The members of the plans within the Pension System have
119-18 previously amended the Pension System by establishing Plan A and
119-19 Plan B pursuant to Sections 11A and 11B, respectively, of Article
119-20 6243a and establishing this Act. The members of the plans within
119-21 the Pension System may further amend any plan within the Pension
119-22 System in any manner, including, but not limited to, amendments to:
119-23 (1) benefits or eligibility requirements for such
119-24 benefits, or both; or
119-25 (2) the creation of a new plan or the amendment or
120-1 restatement of any existing plan within the Pension System which
120-2 embodies changes in addition to those set forth in Section 7(a)(1)
120-3 provided that:
120-4 (A) the amendment is first approved as being
120-5 actuarially sound by a Qualified Actuary selected by a majority
120-6 vote of the Board;
120-7 (B) the amendment is approved by a majority of
120-8 the Board;
120-9 (C) sixty-five percent (65%) of the votes cast
120-10 by membership of each of the collective plans within the Pension
120-11 System are cast in favor of the amendment, such voting to be made
120-12 by secret ballot; and
120-13 (D) the amendment does not deprive any member of
120-14 any plan within the Pension System of any of the benefits that have
120-15 become fully vested (nonforfeitable) to him unless he (i) shall
120-16 execute his written consent to participate in the amended plan; and
120-17 (ii) has qualified thereunder.
120-18 (b) Any amendment made pursuant to this Section 7 shall not
120-19 in any manner affect any rights or responsibilities existing under
120-20 Article 6243a or create any new rights or responsibilities except
120-21 as fully set forth in the adopted amendment.
120-22 (c) Any amendment made pursuant to this Section 7 shall not
120-23 be required to be ratified by the Legislature, but shall become
120-24 effective when properly recorded in the permanent records of the
120-25 Pension System.
121-1 (d) Unless otherwise stated in the amendment, the amendment
121-2 applies only to members of the plans within the Pension System who
121-3 are on Active Service at the time of the amendment and those other
121-4 persons who may qualify under the provisions of the plan affected
121-5 or created by the amendment.
121-6 (e) Prior to any election hereunder, the Board shall by a
121-7 majority vote, issue a notice of the calling of the election which
121-8 notice shall state the proposition to be voted upon and shall
121-9 include verbatim the amendment sought to be made, which notice
121-10 shall be posted at least two (2) weeks prior to the date of the
121-11 election at the city hall and at all fire stations and police
121-12 stations and upon the bulletin boards at the places where the
121-13 Police Officers and Firefighters are assembled for duty. The
121-14 balloting in said election shall be held over a period of at least
121-15 three (3) consecutive twenty-four (24) hour periods with ballot
121-16 boxes placed at the places that may be determined by the Board, so
121-17 as to be generally convenient to those voting. The ballot boxes
121-18 shall be kept locked at all times until canvassed by the Board or
121-19 under their supervision.
121-20 (f) The minutes of the Board shall be reduced to writing and
121-21 certified by the Administrator of the Board showing:
121-22 (1) the proposed amendment whether to one or more
121-23 plans within or to the Pension System;
121-24 (2) the calling of the election and the giving of
121-25 notice thereof; and
122-1 (3) the canvassing of the votes in said election,
122-2 under the general supervision of the Board, and a certification of
122-3 the results thereof by the Board at a meeting duly called.
122-4 When reduced to writing such minutes shall become a
122-5 part of the permanent records of the Pension System to be filed in
122-6 the office of the Secretary of the Board and shall constitute
122-7 evidence of the matters contained therein, admissible in all courts
122-8 and proceedings.
122-9 (g) Notwithstanding any amendment under this Section 7,
122-10 Contributions by the City to the Fund shall be the same as provided
122-11 for under the terms of Section 4.02(c) of this Act. Any change in
122-12 the rate of the City's contributions to the Fund may only be made
122-13 in accordance with the provisions of Section 4.02(a) of this Act.
122-14 Sec. 8. TREATMENT UNDER FEDERAL AND STATE LAW.
122-15 Sec. 8.01. QUALIFICATION UNDER FEDERAL TAX LAW.
122-16 (a) The plans within the Pension System as well as the
122-17 assets of the Fund respectively are intended to qualify under
122-18 Section 401 of the Code and be exempt from Federal income taxes
122-19 under section 501(a) of the Code and to conform at all times to
122-20 applicable requirements of law, regulations, and orders of duly
122-21 constituted Federal governmental authorities. Accordingly, in the
122-22 event any provision of this Act is subject to more than one
122-23 construction, one of which will permit the qualification of a plan
122-24 that is within the Pension System, that construction that will
122-25 permit the plan to qualify and conform shall prevail.
123-1 (b) The plans within the Pension System as well as the
123-2 assets of the Fund shall be maintained for the exclusive benefit of
123-3 Members and their beneficiaries. At no time prior to the
123-4 termination of all the plans within the Pension System and the
123-5 satisfaction of all liabilities with respect to Members and their
123-6 beneficiaries under all such plans shall any part of the principal
123-7 or interest from the assets of the Fund be used for or diverted to
123-8 purposes other than the exclusive benefit of such Members and
123-9 beneficiaries.
123-10 (c) Notwithstanding any other provisions of this Act, the
123-11 pension provided with respect to any Member shall not exceed an
123-12 Annual Benefit computed in accordance with the limitations
123-13 prescribed in this Section 8.01(c).
123-14 (1) The maximum Annual Benefit payable in any
123-15 Limitation Year to a Member shall not exceed the lesser of:
123-16 (A) Ninety Thousand Dollars ($90,000); or
123-17 (B) One Hundred percent (100%) of a Member's 415
123-18 Compensation averaged over the three (3) consecutive Limitation
123-19 Years, or the actual number of Limitation Years for a Member whose
123-20 total Pension Service is less than three (3) consecutive Limitation
123-21 Years, during which the Member had the greatest aggregate 415
123-22 Compensation from the City.
123-23 (2) Benefits provided to a Member under the Act and
123-24 under a defined benefit plan or plans maintained by the City shall
123-25 be aggregated for purposes of determining whether the limitations
124-1 in Section 8.01(c)(1) above are met. If the aggregate benefits
124-2 otherwise payable from any qualified plans created under the Act
124-3 and any other such defined benefit plan or plans maintained by the
124-4 City would otherwise exceed the limitations of Section 8.01(c)(1)
124-5 above the reductions in benefits shall first be made to the extent
124-6 possible from the other plan or plans.
124-7 (3) Adjustments upon retirement.
124-8 (A) If the Annual Benefit begins before a Member
124-9 attains age sixty-two (62), the ninety thousand dollar ($90,000)
124-10 limitation, as adjusted, shall be reduced in a manner prescribed by
124-11 the Secretary of the Treasury. However, such adjustment shall not
124-12 reduce the Member's Annual Benefit below Seventy-Five Thousand
124-13 Dollars ($75,000), if such Member's benefit begins after fifty-five
124-14 (55) (or the actuarial equivalent of such Seventy-Five Thousand
124-15 Dollars ($75,000) commencing at age fifty-five if benefits commence
124-16 before age fifty-five (55)). Furthermore, except as provided in
124-17 Section 8.01(c)(3)(C) below, no such adjustment shall reduce the
124-18 Member's Annual Benefit below Fifty Thousand Dollars ($50,000),
124-19 regardless of the age at which the benefit commences.
124-20 (B) If the Annual Benefit begins after a Member
124-21 attains age sixty-five (65), the Ninety Thousand Dollar ($90,000)
124-22 limitation, as adjusted, shall be increased so that it is the
124-23 actuarial equivalent of the Ninety Thousand Dollar ($90,000)
124-24 limitation at age sixty-five (65).
124-25 (C) If a Member's benefits commence before such
125-1 Member has at least fifteen (15) years of Pension Service as a
125-2 full-time employee of the Police or Fire department (or both),
125-3 including credit for full-time service in the Armed Forces of the
125-4 United States, Sections 8.01(c)(3)(A) and (B) above shall be
125-5 applied by substituting "Social Security Retirement Age" for "age
125-6 sixty-two (62)" and "age sixty-five (65)" and the last two (2)
125-7 sentences of Section 8.01(c)(3)(A) above shall not apply in
125-8 computing the benefit limitation for such Member.
125-9 (D) The portion of a Member's benefit that is
125-10 attributable to such Member's own contributions is not part of the
125-11 Annual Benefit subject to the limitations of Section 8.01(c)(1)
125-12 above. Instead, the amount of such contributions is treated as an
125-13 Annual Addition to a qualified defined contribution plan maintained
125-14 by the City.
125-15 (4) Annual adjustments to limitations.
125-16 (A) The dollar limitation on Annual Benefits
125-17 provided in Section 8.01(c)(1) above, and the Fifty Thousand Dollar
125-18 ($50,000) limitation provided in Section 8.01(c)(3) above (but not
125-19 the Seventy-Five Thousand Dollar ($75,000) limitation provided in
125-20 that Section), shall be adjusted annually as provided in Code
125-21 section 415(d) pursuant to regulations prescribed by the Secretary
125-22 of the Treasury. The adjusted limitation is effective as of
125-23 January 1 of each calendar year and is applicable to Limitation
125-24 Years ending with or within that calendar year.
125-25 (B) The limitation provided in Section
126-1 8.01(c)(1)(B) above, for a Member who has separated from service
126-2 with a vested right to a pension, shall be adjusted annually as
126-3 provided in Code section 415(d) pursuant to the regulations
126-4 prescribed by the Secretary of the Treasury.
126-5 (5) The following interest rate assumptions shall be
126-6 used in computing the limitations under this Section 8.01.
126-7 (A) For the purpose of determining the portion
126-8 of the Annual Benefit that is purchased with member contributions,
126-9 the interest rate assumption shall be eight and one-half percent
126-10 (8-1/2%) compounded annually for plan years beginning before 1988
126-11 and one hundred and twenty percent (120%) of the Federal mid-term
126-12 rate (as in effect under Code section 1274) compounded annually,
126-13 for plan years beginning after 1987.
126-14 (B) For the purpose of adjusting the Annual
126-15 Benefit to a straight life annuity, the interest rate assumption
126-16 shall be five percent (5%) unless a different rate is required by
126-17 the Secretary of the Treasury.
126-18 (C) For the purpose of adjusting the
126-19 Ninety-Thousand Dollar ($90,000) limitation after a Member attains
126-20 age sixty-five (65), the interest rate assumption shall be five
126-21 percent (5%) unless a different rate is required by the Secretary
126-22 of the Treasury, and the mortality decrement shall be ignored to
126-23 the extent that a forfeiture does not occur at death.
126-24 (6) For purposes of Sections 8.01(c)(1) and (3) above,
126-25 no adjustment under Code section 415(d) shall be taken into account
127-1 before the Limitation Year for which such adjustment first takes
127-2 effect. For purposes of Sections 8.01(c)(1) and (5), no adjustment
127-3 is required for the value of qualified joint and survivor annuity
127-4 benefits, pre-retirement death benefits, post-retirement medical
127-5 benefits, or post-retirement cost-of-living increases made in
127-6 accordance with Code section 415(d) and section 1.415-3(c) of the
127-7 Income Tax Regulations.
127-8 (7) This Plan may pay an Annual Benefit to any Member
127-9 in excess of the Member's maximum Annual Benefit otherwise allowed
127-10 if:
127-11 (A) The annual benefit derived from the City's
127-12 contributions under any qualified plans within the Act and all
127-13 defined benefit plans maintained by the City does not in the
127-14 aggregate exceed Ten Thousand Dollars ($10,000) for the Limitation
127-15 Year or for any prior Limitation Year; and
127-16 (B) The Member has not at any time participated
127-17 in a defined contribution plan maintained by the City. For
127-18 purposes of this Section 8.01(c)(7) only, Member contributions to
127-19 the Plan will not be considered a separate defined contribution
127-20 plan maintained by the City.
127-21 (8) If a Member has less than ten (10) years of
127-22 Pension Service in the Plan at the time the Member begins to
127-23 receive benefits under the Plan, the Ninety Thousand Dollar
127-24 ($90,000) limitation, as adjusted, shall be reduced by multiplying
127-25 the limitation by a fraction in which the numerator is the number
128-1 of years of Pension Service and the denominator is ten (10);
128-2 provided, however, that the fraction shall in no event be less than
128-3 one-tenth (1/10th). The one hundred percent (100%) limitation of
128-4 Section 8.01(c)(1)(B), and the Ten Thousand Dollar ($10,000)
128-5 limitation of Section 8.01(c)(7) shall be reduced in the same
128-6 manner as provided in the preceding sentence of this Paragraph
128-7 except the numerator shall be the number of years of employment
128-8 with the City rather than years of Pension Service.
128-9 (9) If a Member is or has been a participant in one or
128-10 more defined benefit plans and one or more defined contribution
128-11 plans maintained by the City, the following provisions shall apply:
128-12 (A) The sum of the defined benefit plan fraction
128-13 and the defined contribution plan fraction for any Limitation Year
128-14 may not exceed 1.0.
128-15 (B) The defined benefit plan fraction for any
128-16 Limitation Year is a fraction in which:
128-17 (I) the numerator is the projected Annual
128-18 Benefit of a Member, determined as of the close of the Limitation
128-19 Year pursuant to section 1.415-7(b)(3) of the Income Tax
128-20 Regulations; and
128-21 (II) the denominator is the lesser of:
128-22 (i) the product of 1.25 multiplied
128-23 by the maximum dollar limitation provided in Section 8.01(c)(1)(A),
128-24 as adjusted, for the Limitation Year; or
128-25 (ii) the product of 1.4 multiplied
129-1 by the amount that may be taken into account under
129-2 Section 8.01(c)(1)(B) for the Limitation Year.
129-3 (C) The defined contribution plan fraction for
129-4 any Limitation Year is a fraction in which:
129-5 (I) the numerator is the sum of the Annual
129-6 Additions to the Member's Account as of the close of the Limitation
129-7 Year; and
129-8 (II) the denominator is the sum of the
129-9 lesser of the following amount determined for the Limitation Year
129-10 and each prior year of service with the City:
129-11 (i) the product of 1.25 multiplied
129-12 by the dollar limitation in effect under Code section 415(c)(1)(A)
129-13 for the Limitation Year, determined without regard to Code section
129-14 415(c)(6); or
129-15 (ii) the product of 1.4 multiplied
129-16 by the amount that may be taken into account under Code section
129-17 415(c)(1)(B) for the Limitation Year beginning before January 1,
129-18 1987, the Annual Additions shall not be recomputed to treat all
129-19 Member contributions as an Annual Addition.
129-20 (D) If the sum of the defined benefit plan
129-21 fraction and the defined contribution plan fraction exceeds 1.0 in
129-22 any Limitation Year for any Member of any plan within the Pension
129-23 System, the Administrator shall limit, to the extent necessary, the
129-24 Annual Additions to the Member's Account for that Limitation Year.
129-25 If after limiting to the extent possible the Annual Additions to
130-1 the Member's Account for the Limitation Year, the sum of the
130-2 defined benefit plan fraction and the defined contribution plan
130-3 fraction still exceeds 1.0, the Administrator shall adjust the
130-4 benefits under the defined benefit plan fraction so that the sum of
130-5 both fractions shall not exceed 1.0 in any Limitation Year for the
130-6 Member.
130-7 (10) Combining of Plans. For purposes of determining
130-8 the limits provided in this Section 8.01, all qualified defined
130-9 benefit plan, whether terminated or not, ever maintained by or
130-10 contributed to by the City shall be treated as one defined benefit
130-11 plan, and all qualified defined contribution plans, whether
130-12 terminated or not, ever maintained by or contributed to by the City
130-13 shall be treated as one defined contribution plan.
130-14 (11) Internal Revenue Code Application.
130-15 Notwithstanding anything contained in this Section 8.01 to the
130-16 contrary, the limitations, adjustments, and other requirements
130-17 prescribed in this Section 8.01 shall at all times comply with the
130-18 requirements of Code section 415, as amended, and all regulations
130-19 promulgated under the Code, the terms of which are specifically
130-20 incorporated into this Section 8.01 by reference. If any provision
130-21 of Code section 415 is repealed or any provision is not enforced by
130-22 the Internal Revenue Service, such provision shall not reduce the
130-23 benefits of any Member after the effective date of the repeal of
130-24 the law or during the period that it is not enforced.
130-25 (d) In no event may any Member's retirement pension commence
131-1 later than April 1 of the year following the later of the year in
131-2 which the Member leaves Active Service or the year in which the
131-3 Member attains age seventy and one-half (70-1/2), nor may benefits
131-4 to a qualified beneficiary commence later than one (1) year after
131-5 the date of the Member's death.
131-6 (e) Any Member or Beneficiary who receives any distribution
131-7 from any Plan within the System that is an "eligible rollover
131-8 distribution" as defined in Section 402(f)(2)(A) of the Code shall
131-9 be entitled to have such distribution transferred directly to
131-10 another eligible retirement plan of his choice upon providing
131-11 direction regarding such transfer to the Administrator in
131-12 accordance with procedures established by the Administrator.
131-13 (f) The "annual compensation" taken into account for any
131-14 purpose under this Act shall not exceed Two Hundred Thousand
131-15 Dollars ($200,000) for any calendar year (which is also the Plan
131-16 Year). "Annual compensation" means with respect to a Group A
131-17 Member the aggregate of his Base Pay as defined in Section 2(h) of
131-18 this Act and with respect to a Group B Member the aggregate of his
131-19 Computation Pay as defined in Section 2(b) of this Act for any
131-20 given plan year. The Two Hundred Thousand Dollar ($200,000) limit
131-21 shall be adjusted on January 1 of each year at the same time and in
131-22 the manner as provided in section 415(d) of the Code. In
131-23 determining the compensation of a Member for purposes of this
131-24 limitation, the family aggregation rules of section 414(q)(6) of
131-25 the Code shall apply except in applying such rules, the term
132-1 "family member" shall include only the spouse of the Member and any
132-2 lineal descendants of the Member who have not attained age nineteen
132-3 (19) as of the end of the plan year. If as a result of this family
132-4 aggregation requirement, the Two Hundred Thousand Dollar ($200,000)
132-5 limit is exceeded, the limitation shall be prorated among the
132-6 affected individuals in proportion to each such individual's
132-7 compensation as determined before application of the limit.
132-8 Sec. 8.02. EXCESS BENEFIT PLAN FOR POLICE OFFICERS AND
132-9 FIREFIGHTERS.
132-10 Upon the enactment of federal legislation enabling public
132-11 retirement systems to establish excess benefit plans for the
132-12 benefit of employees for whom additional benefits from retirement
132-13 plans qualified under Section 401 of the Code would exceed the
132-14 limitations of Section 415 of the Code, there shall be created
132-15 outside the Pension System a separate, non-qualified excess benefit
132-16 plan containing the following terms and provisions:
132-17 (a) Definitions.
132-18 (1) All definitions prescribed in Section 2 of this
132-19 Act shall be applicable to the plan created pursuant to this
132-20 Section 8.02 except to the extent a different definition is set
132-21 forth in this Section 8.02(a) or the context in which a term is
132-22 used in this Section 8.02 indicates a different meaning is clearly
132-23 intended than that prescribed by Section 2.
132-24 (2) "Excess Benefit Plan" shall mean this separate,
132-25 nonqualified, unfunded excess benefit plan as created by this
133-1 Section 8.02 for the benefit of eligible Members, as amended or
133-2 restated from time to time.
133-3 (3) "Qualified Plan" shall mean any plan maintained
133-4 within the Pension System or maintained by the City outside the
133-5 Pension System for the exclusive benefit of some or all of the
133-6 employees of the City if such plan has been found by the Internal
133-7 Revenue Service to be qualified or has been treated by the City as
133-8 a qualified plan under Section 401 of the Code.
133-9 (4) "Maximum Benefit" shall mean the retirement
133-10 benefit a Member (or, to the extent so entitled, the Spouse,
133-11 Child(ren), or Dependent Parent(s) of a Member) is entitled to
133-12 receive from all Qualified Plans in any month after giving effect
133-13 to Section 8.01 of this Act and any similar provisions of any other
133-14 Qualified Plans designed to conform to Code section 415.
133-15 (5) "Excess Benefit Participant" shall mean any Member
133-16 whose retirement benefits as determined on the basis of all
133-17 Qualified Plans without regard to the limitations of Section 8.01
133-18 of this Act and comparable provisions of other Qualified Plans
133-19 would exceed the Maximum Benefit permitted under Section 415 of the
133-20 Code.
133-21 (6) "Unrestricted Benefit" shall mean the monthly
133-22 retirement benefit a Member (or the spouse or child(ren) of a
133-23 Member) would have received under the terms of all Qualified Plans
133-24 but for the restrictions of Section 8.01 of this Act and any
133-25 similar provisions of any other Qualified Plans designed to conform
134-1 to Section 415 of the code.
134-2 (b) Benefits.
134-3 (1) An Excess Benefit Participant who is receiving
134-4 benefits from an applicable Qualified Plan, shall be entitled to a
134-5 monthly benefit under this Excess Benefit Plan in an amount equal
134-6 to the lesser of (A) such Member's Unrestricted Benefit less the
134-7 Maximum Benefit, or (B) the amount by which his monthly benefit
134-8 from the Qualified Plan or Plans approved by the Members has been
134-9 reduced due to the limitations of Code section 415.
134-10 (2) In the case of the death of a Excess Benefit
134-11 Participant whose spouse and/or child(ren) are entitled to
134-12 pre-retirement or post-retirement death benefits under a Qualified
134-13 Plan, the Excess Benefit Participant's surviving Spouse and/or
134-14 Child(ren) are entitled to a monthly benefit under the Excess
134-15 Benefit Plan equal to the benefit determined in accordance with the
134-16 provisions of the Qualified Plans without regard to the limitations
134-17 under Section 8.01 of this Act or Code section 415, less the
134-18 Maximum Benefit.
134-19 (3) Unless the Excess Benefit Participant makes a
134-20 timely election hereunder to the contrary, a retirement benefit
134-21 payable under this Excess Benefit Plan shall be paid in such form
134-22 and at such time as it would have been paid under the applicable
134-23 Qualified Plan but for the limitations under Code section 415.
134-24 However, retirement benefits payable under this Excess Benefit Plan
134-25 shall be paid at such time or times and in such form or forms,
135-1 including a single sum distribution, as the Excess Benefit
135-2 Participant may have elected hereunder by written notice to the
135-3 Administrator from among the benefit payment forms made available
135-4 under the election form as approved from time to time by the Board.
135-5 Each optional benefit form permitted under this Excess Benefit Plan
135-6 shall be the actuarial equivalent of each other permitted benefit
135-7 form. Upon or after an Excess Benefit Participant's leaving Active
135-8 Service with an entitlement to a retirement benefit under any
135-9 Qualified Plan approved by the Members, a benefit hereunder may be
135-10 elected to be paid.
135-11 (c) Administration of the Excess Benefit Plan.
135-12 (1) This Plan shall be administered by the same Board
135-13 described in Section 3 of this Act, and the Administrator shall
135-14 also carry out the business of the Board with respect to this
135-15 Excess Benefit Plan. Except as provided to the contrary in this
135-16 Section, the rights, duties and responsibilities of the Board and
135-17 Administrator shall be the same for this Excess Benefit Plan as for
135-18 the Qualified Pension Plans within the Pension System.
135-19 (2) The Qualified Actuary employed pursuant to Section
135-20 6 of this Act shall be responsible for determining the amount of
135-21 benefits that may not be provided under the Qualified Plans solely
135-22 by reason of the limitations of Code section 415 and thus the
135-23 amount of City contributions that will be made to this Excess
135-24 Benefit Plan rather than to a Qualified Plan.
135-25 (3) The legal advisors described in Section 3.03 of
136-1 this Act shall also provide advice to the Board with respect to
136-2 this Excess Benefit Plan.
136-3 (d) Funding of Retirement Benefits. Contributions shall not
136-4 be accumulated under this Excess Benefit Plan to pay future
136-5 retirement benefits. Instead, each payment of City contributions
136-6 that would otherwise be made to the Fund pursuant to Section 4.02
136-7 of this Act or comparable provisions of other Qualified Plans
136-8 approved by the Members shall be reduced by the amount determined
136-9 by the Administrator as necessary to meet the requirements for
136-10 retirement benefits under this Excess Benefit Plan until the next
136-11 payment of City contributions is expected to be made to the Fund by
136-12 the City. The City shall then pay to this Excess Benefit Plan out
136-13 of the withheld City contributions no earlier than eleven (11) days
136-14 before each distribution of monthly retirement benefits is required
136-15 to be made from this Excess Benefit Plan, the amount necessary to
136-16 satisfy the obligation to pay such Excess Benefit Plan monthly
136-17 retirement benefits, and the Administrator shall satisfy the
136-18 obligation of this Excess Benefit Plan to pay retirement benefits
136-19 out of the City Contributions so transferred for that month. Thus,
136-20 the City Contributions otherwise required to the Pension System
136-21 pursuant to Section 4.02 of this Act and any other Qualified Plan
136-22 approved by the Members shall be divided into those contributions
136-23 required to pay retirement benefits pursuant to this Section 8.02
136-24 and those contributions paid into and accumulated to pay the
136-25 Maximum Benefits required under the Qualified Plans. City
137-1 contributions made to provide retirement benefits pursuant to this
137-2 Section shall not be commingled with the monies of the Fund or any
137-3 other Qualified Plan.
137-4 (e) Amendment to Excess Benefit Plan. Amendments to this
137-5 Excess Benefit Plan shall be made in the same manner set forth in
137-6 Section 7 of this Act.
137-7 Sec. 8.03. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS.
137-8 (a) No portion of the Fund and no benefit or amount awarded
137-9 to any Primary Party Qualified Survivor, or Beneficiary of a
137-10 Member's DROP Account under the provisions of this Act shall, at
137-11 any time, before or after its disbursement, be held, seized, taken,
137-12 subjected to, or detained or levied upon by virtue of any
137-13 execution, attachment, garnishment, injunction, or other writ,
137-14 order, or decree or any process or proceedings issued out of or by
137-15 any court for the payment or satisfaction, in whole or in part, of
137-16 any debt, damage, claim, demands, or judgment against any person
137-17 entitled to benefits from any plan within the Pension System, nor
137-18 shall the Fund or any claim thereto be directly or indirectly
137-19 assigned or transferred and any attempt to transfer or assign same
137-20 shall be void.
137-21 (b) A benefit under any plan created or existing pursuant to
137-22 this Act or Article 6243a is subject to division pursuant to the
137-23 terms of a Qualified Domestic Relations Order. The Administrator
137-24 will determine the qualifications of a domestic relations order
137-25 according to a uniform, consistent procedure approved by the Board.
138-1 The total benefit payable to a Primary Party and/or an Alternate
138-2 Payee under a Qualified Domestic Relations Order may never
138-3 actuarially exceed the benefits to which a Primary Party would be
138-4 entitled in the absence of the Qualified Domestic Relations Order.
138-5 In calculating the Alternate Payee's benefits under a Qualified
138-6 Domestic Relations Order, the interest rate to be used will be the
138-7 rate used by the Pension System's actuary in the actuarial
138-8 evaluation for that year, provided, however, that the minimum
138-9 interest rate for this purpose will be the minimum required by
138-10 Section 414 of the Code or any successor provision thereto.
138-11 (c) Nothing in this Section 8.02 shall preclude the payment
138-12 of death benefits to a "Support Trust" for certain surviving
138-13 Child(ren) of a Primary Party pursuant to Section 6.06(k) of this
138-14 Act.
138-15 Sec. 9. SAVING CLAUSE. The laws and parts of law including City
138-16 ordinances in conflict herein are hereby repealed to the extent of
138-17 such conflict only and except as to such conflict shall be in full
138-18 force and effect, and this Act shall in no way change, amend, or
138-19 repeal any part of any fireman's and policemen's pension law other
138-20 than such law as is provided in House Bill 122, Acts of the 44th
138-21 Legislature, 1st Called Session, 1935, and Senate Bill 19, Acts of
138-22 the 47th Legislature, Regular Session, 1941.
138-23 If any provision, section, or subsection of this Act is
138-24 declared unconstitutional by a court of competent jurisdiction it
138-25 shall not invalidate the remaining sections and subsections of this
139-1 Act.