Chapter 18 PENSIONS*
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 twentyfive (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
based on assumptions for the applicable interest rate and applicable mortality table
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)