Section 18-94 Retirement by reason of age or service.

    (a)    A covered, police employee shall be eligible to receive retirement benefits upon reaching the age of sixty-five (65) or upon having completed twenty–five (25) years of active service without regard to age.  For purposes of this section and eligibility to retire after having completed twenty-five (25) years of active service without regard to age, active service shall include military leave which qualifies under the Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. 4301, et seq.) as now enacted, or hereafter amended (USERRA), only to the extent any contributions required under section 18-93 are made to the police retirement fund either during the period of qualified military service under USERRA or within five (5) years from the date of reemployment.

    (b)    A former covered police employee shall be eligible to receive retirement benefits upon reaching the age of sixty-five (65).

    (c)    The administrator shall pay to a retiree, retired on account of age or service, retirement benefits determined by subsection (1) below.  The plan benefits of subsection (1) below apply to employees hired on or after October 1, 2012.

(1)    A retiree retired due to age or service shall receive two (2) percent of highest average salary per year of covered employment up to twenty-five (25) years. For each year of service in covered employment over twenty-five (25), the retiree shall receive an additional one and five-tenths (1.5) percent of highest average salary per year, up to a maximum of fifty-seven and five-tenths (57.5) percent for twenty-five (25) years of service. This benefit shall continue for life. In the first month of each plan year, the retirement benefit shall be increased by six tenths (0.6) percent (i.e. annual compound COLA).

    (d)    Upon approval of any application for benefits by the administrator, the applicant shall be entitled to receive monthly benefit payments beginning on the last day of the month immediately following the month in which employment ends.  A married retiree eligible for survivor benefits under section 18-47(2) shall receive a fifty (50) percent joint and survivor annuity which is the actuarial equivalent of a single life annuity under this section.  The actuarial equivalent shall be based on assumptions for the “applicable interest rate” and “applicable mortality table” as determined under Code Section 417(e).

    (e)    If, when a covered police employee's employment is terminated, and the reserve value of the employee's retirement benefits is less than five thousand dollars ($5,000.00), the administrator shall pay the employee the amount of the reserve value in a single lump sum payment. "Reserve value" is the actuarial equivalent of the pension benefits the covered police employee would otherwise be eligible to receive under the police retirement plan. The single lump sum payment shall be made as soon as possible after employment is terminated and shall be in lieu of all other retirement benefits otherwise due the employee under the police retirement plan. The single lump sum payment shall be a complete discharge of all liabilities of the police retirement fund to the employee. This subsection shall not apply to covered police employees who retire on disability.

    (f)    In accordance with the requirements of Section 401(a)(9) of the Code, distribution of retirement benefits under this section shall begin no later than April 1 of the year in which the retiree either attains age seventy and one-half (70½) or retires, whichever is later. Any distribution options in the police retirement plan inconsistent with the provisions of Section 401(a)(9) of the Code are overridden by the provisions of the Code.

(Ord. No. 21455, § 1, 9-17-12)


(Ord. 21455, Added, 09/17/2012)