§ 18-19. Credited service for general employees.  


Latest version.
  • (a)

    The total service, during which a person serves as a full-time employee of the city, provided he contributes to the system for each year of service after the effective date shall be the credited service. A member as of September 1, 1973, who did not receive credit for service for his first year of employment shall have the option of making retroactive contributions in an amount equal to that which would have been contributed had he been a member during such year, and thereby receive credit for benefit purposes for such year. An employee as of September 1, 1973, who did not previously elect to become a member of the retirement system shall have the option of making retroactive contributions in an amount equal to that which would have been contributed had he become a member when first employed or on the effective date, if later, and thereby receive credit for benefit purposes for all years of service from date of employment. An employee as of September 1, 1973, who did not previously elect to become a member and, also, who does not elect to make retroactive contributions will receive credit for service beginning September 1, 1973. Employees hired on or after September 1, 1973, will receive credited service from date of hire. In no event shall a member receive credit for service in excess of thirty (30) years.

    (b)

    In determining the aggregate number of years of service, the time spent in the military service of the Armed Forces of the United States or United States Merchant Marine, while on official leave of absence for such reason, shall be added to years of actual service. However, credit for such military service shall not exceed five (5) years. Further, to receive credit for such service:

    (1)

    The member must return to his employment within ninety (90) days from the date of his release from such active service or from hospitalization continuing after discharge for a period of not more than one (1) year; and

    (2)

    The member must contribute into the fund the same sum which he would have contributed if he had remained a member. Further, a request for credit for such military service must be made by the member within ninety (90) days after reemployment with the city from such leave of absence granted, or such military service credit shall be forfeited forever.

    (3)

    To receive this service credit while on the leave of absence, the member must elect one of the following options:

    a.

    The member shall continue to make the monthly contributions during the leave of absence;

    b.

    The member shall make any necessary contributions within thirty (30) days after the member's return to active employment; or

    c.

    The member shall make the necessary contributions in equal monthly installments over a two-year period from the member's return to active employment with interest, at an annual interest rate of six (6) percent.

    An employee making installment payments shall complete all required payments prior to payment of any benefits. If installment payments are not completed at the time an employee retires, the employee shall not receive credit for the remaining period for which payments were not made.

    (c)

    If a person is granted a leave of absence by the city for medical or nonmedical reasons, he may receive membership service credit for the period he was on a leave of absence by contributing the amount that would have been contributed had the member continued in city employment for the period of time absent, based upon the member's salary on the effective date of the leave of absence, and shall again become a member of the system, provided the person returns to active employment within two (2) years. To receive this service credit while on the leave of absence, the member may not be gainfully employed with another employer and must comply with the provisions of subsection (b)(3) above. The particular option must be exercised by an appropriate written declaration within fourteen (14) days from the date the leave of absence is granted.

    (d)

    Any member granted a leave of absence may elect to leave his contributions in the fund pending his return as an employee and member and receive credit for the years for which contributions were made, plus prior service, if any, provided such member returns to employment and membership within one (1) month following the end of his leave of absence; except as regards members on military leave of absence, who shall return to membership within three (3) months. Other than as set forth herein, no member shall be entitled to credited service except for those years during which he is a member and made the required contributions.

    (e)

    All employees who entered into the general employees DROP (deferred retirement option plan), on or before the effective date of Ordinance [No. 2271, May 1, 2002] and who subsequently elected to opt out of the DROP and re-enter the general employees retirement system in accordance with the provisions of section 18-60 shall receive full credited service toward retirement for the entire length of time the employee participated in the DROP. If an employee elects to opt out of the DROP and re-enter the general employees retirement system, they [such employee] shall be barred from making a DROP election in the future.

    (f)

    A member, at any time following the completion of their probationary period of employment with the city and prior to their retirement from the city, may purchase up to three (3) years of credited service towards the calculation of their retirement benefit. The member shall be responsible for a lump sum payment into the retirement system covering the full actuarial costs of the amount of credited service to be purchased. The actuarial cost shall be determined by the system's actuary based on the member's compensation at the time payment for the credited service term is due and all the existing actuarial assumptions related to the plan. The years of service purchased may be used in determining a member's vesting and retirement eligibility. For purposes of clarification, an employee's purchase of years of credited service pursuant to this subsection shall not adjust any employee benefits that may from time to time exist outside of the employees retirement system which may be dependent upon or influenced by years of service (e.g. consideration for promotion, annual leave benefits, vacation scheduling, senior executive retention and longevity package benefits, longevity pay, etc.).

    (g)

    Transfers between systems. Should a member change employment status from a general employee to a police officer, the following applies:

    (1)

    Members with less than one (1) year of credited service shall have all accumulated contributions returned to the member.

    (2)

    The accumulated contributions of members with one (1) year or more of credited service will remain in the general employees fund.

    (3)

    For members with more than one (1) year of credited service, the member's retirement and supplemental benefits payable by the general employees plan will be calculated using credited service as of the member's date of transfer and average monthly salary as of the date of transfer. These benefits are payable on what would have been the member's normal retirement date had the member continued employment as a general employee, but shall not be paid prior to the member's date of termination of employment.

    (4)

    The member will not be eligible for any other benefits as a general employee.

    (5)

    For purposes of determining the member's eligibility for vesting, death, disability and retirement benefits under the police officer's plan, the member's credited service as a general employee will be included, unless otherwise stated in the police officer's plan.

    (6)

    For purposes of determining the amount of retirement benefits under the police officer's plan the member will receive, only the member's credited service following the member's date of transfer will be included, unless otherwise stated in the police officer's plan.

    (7)

    For purposes of determining the amount of any death or disability benefits under police officer's plan the member will receive, the member's credited service as a general employee will be included, unless otherwise stated in the police officer's plan.

    (8)

    Funds for each plan shall remain separate. Funds from one plan shall not be transferred to the other. If a member transfers from general employee to a police officer, a member would receive a separate benefit check from each plan when the member retires, if eligible.

(Code 1964, § 9A-2(f)(1); Ord. No. 1578, § 1, 9-28-88; Ord. No. 1757, § 3, 12-19-90; Ord. No. 1787, §§ 3, 4, 7-10-91; Ord. No. 1789, §§ 2, 3, 7-10-91; Ord. No. 2271, § 1, 5-1-2002; Ord. No. 2337, § 1, 8-10-2005; Ord. No. 2412, § 1, 7-23-2008; Ord. No. 2511, § 1, 7-23-2014)