§ 78-239. Amount of retirement benefits; payment of retirement benefits.

(a)

Pension upon retirement. Upon retirement a general employee and an elected official shall be paid a pension to be computed in accordance with the following benefit formulas:

(1)

For a general member hired prior to October 1, 2012 with 30 or more years of credited service or who has attained age 60 with at least ten years of credited service, the amount of straight life pension shall be two and one-half percent of the member's final average salary multiplied by the member's credited service.

(2)

For a general member hired prior to October 1, 2012 and who has 25 or more years of credited service but less than 30 years of credited service or who has not attained age 60 with at least ten years of credited service, the amount of straight life pension shall be two and one-half percent of the member's final average salary multiplied by the member's credited service and then reduced for each year that early voluntary retirement precedes the date the member would have been eligible for voluntary retirement with 30 years of service. For benefits accrued as of January 31, 2013, the reduction factor will be two and one-half percent for each year (0.208 percent for each month) that early voluntary retirement precedes the date the member would have been eligible for voluntary retirement with 30 years of service. For benefits accrued after January 31, 2013, the reduction factor will be six percent for each year (0.5 percent for each month) that early voluntary retirement precedes the date the member would have been eligible for voluntary retirement with 30 years of service.

(3)

For a general member hired on or after October 1, 2012 with 35 years of credited service or who has attained age 65 with ten years of credited service, the amount of straight life pension shall be 1.60 percent of the member's final average salary multiplied by the member's credited service.

(4)

For a general member hired on or after October 1, 2012 with 30 years of credited service but less than 35 years of credited service, the amount of straight life pension shall be 1.60 percent of the member's final average salary multiplied by the member's credited service and then reduced six percent for each year (0.5000 percent for each month) that early voluntary retirement precedes the date the member would have been eligible for voluntary retirement with 35 years of service.

(5)

For an elected official with 30 or more years of credited service or who has attained age 60 with eight years of credited service, the amount of straight life pension shall be three percent of the member's final average salary multiplied by the member's credited service.

(6)

For an elected official who has 25 or more years of credited service but less than 30 years of credited service or who has not reached age 60 with eight years of credited service, the amount of straight life pension shall be 3.00 percent of the member's final average salary multiplied by the member's credited service and shall be reduced by two and one-half percent for each year (0.208 percent for each month) that early retirement precedes the date the member would have been eligible for voluntary retirement with 30 years of service.

(7)

Retirees, who on January 1, 2016, have been receiving benefits under this retirement system for at least ten years, or the beneficiaries of retirees whose benefits commenced ten or more years before January 1, 2016, will receive a cost of living adjustment of $50.00 per month effective January 1,2016.

(b)

Deferred retirement option (DROP) plan.

(1)

Created. There is hereby created a deferred retirement option ("DROP") plan.

(2)

Eligibility. Any member of the city of general employees' retirement system is eligible to enter the DROP on or after the first day of the month following the member's completion of 25 years of credited service or age 60 with ten years of credited service.

(3)

Participation time. The maximum participation in the DROP shall be 60 months.

(4)

No additional creditable services. Upon entering the DROP, the employee shall not receive any additional creditable service for pension purposes. Additionally, the amount of final average salary for calculation of pension benefits shall be determined as of the date of entering the DROP. No payment shall be made for accrued unused leave upon entering the DROP, nor shall the amount of accrued unpaid leave be used in the calculation in the amount of pension benefits.

(5)

Election of optional forms of payment. Upon entering the DROP, the member may elect an optional form of payment. Once the election is made, it may not be changed.

(6)

Contributions. Upon the effective date of the member's commencement of participation in the DROP, the member's contribution shall be discontinued.

(7)

Irrevocable resignations. The city general employees' retirement system shall promulgate the appropriate administrative forms for administering the DROP, which forms must include, at a minimum, an irrevocable resignation from employment from the city, which is effective no more than five years from the date of entry into the DROP. The resignation is irrevocable. A DROP member may actually separate from service prior to the expiration of the five-year period, but may not continue in the employment of the city in a position which requires membership in the city general employees' retirement system after the five-year period. A DROP member may participate in the DROP only once.

(8)

Limitation or disqualification for other benefits. Upon commencement of participation in the DROP, the member shall not be eligible for disability or pre-retirement death benefits.

(9)

Payments to DROP account. The monthly retirement benefits that would have been payable had the member elected to cease employment and not join the DROP, shall be credited to the member's DROP account. The money in all participant's DROP accounts will be commingled with all other assets of the fund, but separate accountings shall be made.

(10)

Crediting interest in the DROP account. For all persons who have entered the DROP prior to February 1, 2013, on January 1, April 1, July 1 and October 1 of each year, the member's DROP account shall be credited with interest at the rate of four percent per annum. Interest will be compounded quarterly, at the rate of one percent per quarter. For all those persons who enter the DROP on or after February 1, 2013, the member's DROP account shall be credited with interest in an amount equal to 50 percent of the net (gross return minus investment expense) yearly interest earned by the retirement system for the preceding fiscal year, up to a maximum of four percent. If the net interest earned is in excess of eight percent, the excess will remain in the retirement system. If the net interest earned by the retirement system is zero percent or less, the member's DROP account will not be credited with interest, nor will it be debited with any investment losses.

(11)

Distribution.

a.

Upon termination of a DROP member's employment with the city from a position that is covered by the city general employees' retirement system, the retirement benefits payable to the member or the member's beneficiary (if the member selected an optional form of retirement benefits which provides for payment to the beneficiary) shall be paid to the member, or, if the member is deceased, to the member's designated beneficiary, or, if no surviving designated beneficiary, to the member's estate and shall no longer be credited to the member's DROP account.

b.

Upon termination of a DROP member's employment with the city from a position that is covered by the city general employees' retirement system, the balance credited to the participant's DROP account shall be payable either to the participant or as a direct rollover into any qualified plan that accepts rollovers. All distributions must comply with the Internal Revenue Code and regulations promulgated thereunder.

(12)

DROP payments in the event of death. If a DROP member dies before his account balance is paid in full, the member's surviving designated beneficiary, or if there is no surviving designated beneficiary, the member's estate, shall have the same rights as a member to elect and receive the same benefit options as available to retired members. DROP payments to the beneficiary or estate shall be in addition to any retirement benefits payable to the designated beneficiary.

(13)

Administrative rules and regulations. The board of trustees shall have authority to promulgate administrative rules and regulations for the carrying out of the DROP.

(14)

Administrative costs. All persons who enter the DROP on or after February 1, 2013 will be assessed an administrative cost for the administration of the DROP account. The amount of the administrative fee to be charged will be in the sole discretion of the board of trustees.

(15)

Loss to DROP account balance. DROP member's principal balance will be decreased if an accrued loss results over the total DROP period as a result of administrative expenses.

(Ord. No. 410, div. III, § 9, 6-20-2000; Ord. No. 0438, § 3, 2-20-2004; Ord. No. 0442, § 1, 6-15-2005; Ord. No. 2013-0683, § 2, 1-15-2013 ; Ord. No. 2013-0684, § 3, 1-15-2013 ; Ord. No. 2016-0727, § 2, 5-3-16 )