Section 105-340; Ord. 18160; Amending Chapter 18 of the City Code relating to police officers and firefighters pensions


Ordinance No.           018160                       Council Bill No. B 211-04            


AN ORDINANCE

amending Chapter 18 of the City Code relating to police officers and firefighters pensions; and fixing the time when this ordinance shall become effective.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBIA, MISSOURI, AS FOLLOWS:

    SECTION 1.  Chapter 18 of the Code of Ordinances of the City of Columbia, Missouri, is hereby amended as follows:

    Material to be deleted in strikeout; material to be added underlined.

  ARTICLE II.

POLICE OFFICERS AND FIREFIGHTERS*

   DIVISION 1.

GENERALLY

Sec. 18-16. Creation of plan of retirement Past fund.

     There are hereby provided plans for the retirement of the salaried commissioned members of the police and fire department of the city (hereinafter referred to as "covered employees") on account of age or disability and for the payment of such to covered employees during their retirement, and upon their death, to their spouses and minor children, of the pensions as hereinafter more specifically set forth in pursuance of the Constitution and laws of the state.  Nothing in this article affects any benefits accrued under the police and firemen’s retirement fund which was replaced in 1981 by the police retirement plan created in section 18-39 and the firefighters’ retirement plan created in section 18-64.  The provisions of the police and firemen’s retirement fund shall govern all appeals and requests with respect to the police and firemen’s retirement fund.  Appeals relating to former police shall be determined by the police retirement board; appeals relating to former firefighters shall be determined by the firefighters’ retirement board.  

Sec. 18-17. Reserved.

Sec. 18-18. Duty and power of council Financial integrity of funds.

     For so long as this plan shall be maintained, it shall be the duty and obligation of the city council to provide funds in an amount necessary to maintain the retirement funds at that level which according to actuarial evaluation is necessary to make the fund financially sound. Nothing in this article shall be deemed to alter or amend any benefit accruing under an application made prior to the effective date hereof under the provisions of the police and firemen's retirement fund, herein referred to as past fund. Prior to the effective date of the amendment, the finance director is hereby instructed to obtain a certified copy of the provisions of Article III, Chapter 9 of the 1964 City Code and Chapter 18 of the Code of Ordinances governing the past fund, the police and firemen's retirement fund. Such a copy is to be maintained in the finance director's office and will govern all appeals and requests with respect to the past fund.  The city council shall provide the necessary funds to make the police retirement plan and the firefighters’ retirement plan actuarially and financially sound for as long as the plans are maintained.  

Sec. 18-19. Right of council to amend article.

    The city council shall have the same right to amend this article in every particular as it has to amend any ordinance that it may adopt.

Sec. 18-20. Interpretation and administration.

     In addition to the interpretation of the provisions of this article in such a manner as to confirm and continue its status as an exempt governmental fund, the provisions of t This article shall be interpreted and administered:

(1)    Conservatively at all times, so as to reduce the obligations of the fund, to prevent the overpayment or mispayment of any sum and to maintain the actuarial and financial soundness of the fund. In the event of doubt as to any provision, it shall be interpreted against the payment of any benefit.

(2)    In light of and in conformity with the provisions of the federal and state constitutions, federal and state statutes, and the home rule charter and ordinances of the city.
(3)    In such a manner as to confirm and continue the status of the police retirement plan and the firefighters’ retirement plan as exempt governmental plans.

Sec. 18-21. Amendment not to affect prior rights Right to benefits; when fixed.

     These provisions are an amendment to the prior police and firefighters' retirement funds. Nothing herein shall be deemed to affect or amend any disability, retirement, survivor or other benefit which accrued under prior versions of the plan and application for which has been received prior to February 4, 1991. These amendments shall be effective February 4, 1991, and shall be prospective in effect, governing all applications for benefits of any kind received after the effective date.

     (a)    Age or length of service.  The rights of a retiree to retirement benefits based on age or length of service under the police retirement plan or the firefighters’ retirement plan are defined by the plan provisions in effect at the time the retiree left city employment.

     (b)    Disability.  The rights of a retiree to retirement benefits based on disability under the police retirement plan or the firefighters’ retirement plan are defined by the plan provisions in effect at the time the retiree was determined to be disabled and left city employment.

     (c)    Death.  The rights of surviving spouses, surviving children and other persons entitled to death benefits upon the death of a covered employee under the police retirement plan or the firefighters’ retirement plan are determined by the plan provisions in effect at the time of the death of the covered employee.  The rights of surviving spouses, surviving children and other persons entitled to death benefits upon the death of a retiree under the police retirement plan or the firefighters retirement plan are determined by the plan provisions in effect at the time the retiree left city employment.

Sec. 18-22. Assets of plans; investment; administration.

    (a)     The finance director director of finance shall serve as administrator for the police retirement fund and firefighters' retirement fund and of all assets, payments and deposits made or received from prior plans. The finance director director of finance shall keep the books and records of the plans and cause them to be audited annually by an independent auditor as part of the city's annual audit.  The director of finance shall annually prepare and have available as public information for each plan, a comprehensive annual financial report showing the financial condition of the plan as of the end of the plan’s fiscal year in accordance with section 105.661 RSMo.

The finance director director of finance shall have such duties and all powers as may be necessary to discharge the duties of plan administrator hereunder, including, but not by way of limitation, full and complete discretionary authority to construe and interpret the provisions of the plans and to determine make the initial determination of the right of any person to any interest in or eligibility for any benefit under the plans. The finance director director of finance may adopt such rules as deemed necessary, desirable or appropriate to implement the police retirement plan and the firefighters’ retirement plan. All rules and decisions of the finance director director of finance shall be uniformly and consistently applied to all covered employees in similar circumstances. When making a determination or calculation, the finance director director of finance shall be entitled to rely upon information furnished by a covered employee or beneficiary, the city, the legal counsel of the city, or the actuary. The finance director director of finance shall issue directions concerning all benefits which are to be paid from the trust fund pursuant to the provisions of the plans. The finance director director of finance may require a covered employee to complete and file with the finance director director of finance an application for pension and all other forms approved by the finance director director of finance, and to furnish all pertinent information requested by the finance director director of finance.

    (b)      As of December 7, 1981, t The finance director director of finance shall account for, separately:

     (1)    Those assets necessary to maintain the actuarial and financial soundness of the police retirement fund,

    (2)    Those assets necessary to maintain the actuarial and financial soundness of the firefighters' retirement fund.

As t These funds are subject to the laws of the state and the ordinances and charter of the city, they shall at all times be invested in a manner consistent with those the laws, of the United States and the state of Missouri and the ordinances and charter of the city provisions.

    (c)     Nothing herein shall be deemed to in this article requires segregation of assets nor to permits or authorizes the partition of fund assets by the boards of the respective funds.

    (d)     All assets of the funds created by this article, and all assets necessary to maintain the obligations of past funds, may be jointly invested with profits, losses, income and charges with respect thereto being received, borne, or shared by the funds in proportion to the amount of the assets invested by the fund or past fund.

    (e)     Whenever, in the director of finance's opinion, a person entitled to receive any payment of a fund benefit or installment thereof hereunder is under a legal disability or is incapacitated in any way so as to be unable to manage his personal financial affairs, the director of finance may make payments to such person or to the person’s his legal representative or to a relative. Any payment of a benefit or installment thereof in accordance with the provisions of this section shall be a complete discharge of any liability for the making of such payment under the provisions of the plans.
Sec. 18-23. Assets of funds and prior funds; division of assets as of effective dates.

     The administrator, in accounting for and investing the assets of the various funds, shall consider their assets to be as follows:

     (1)    As of December 7, 1981, the administrator shall divide the assets of prior funds in the manner as recommended by the police and firemens' retirement board and affirmed by the council in its passage of these provisions. Such division shall be made upon the basis of accrued and anticipated liabilities, setting aside to each fund those assets necessary to meet the liabilities of the employees covered by the respective fund. The new funds shall be known as the police retirement fund and the firefighters' retirement fund with police and firefighters' assets and liabilities being assigned to the appropriate funds.

     (2)    In the event that insufficient funds shall be on hand at the date of division to satisfy accrued and potential liabilities, the prior fund shall be divided on the basis of a ratio of the accrued and potential liabilities of the funds to be created. In the event that funds in excess of accrued and potential liabilities exist, they shall be allocated on the same ratio.

     (3)    Prior to such division, any gifts, bequests or other grants given specifically to the benefit of police or firefighters shall be set aside for such use and not included in the amount to be divided.

     (4)    In the course of division of the prior fund, potential liabilities relating to an employee with covered employment in both the police and fire departments of the city shall be allocated to each fund in the same ratio as his years of covered employment under each plan relate.

     (5)    After December 7, 1981, t The assets of the funds shall consist of:

         a.     The originally segregated assets Funds transferred from the police and firemen’s retirement fund;

        b.    Any and all funds given or donated to the funds from any source, including private gifts, bequests, devises or grants; provided, that all such funds are subject to the limitations set forth in section 401(a)(1) of the Internal Revenue Code.

        c.    The net earnings on all investments and the interest earned thereon;

        d.    The contributions of the respective covered employees; and

        e.    An amount appropriated in the annual city budget sufficient to raise the amount in the respective retirement fund to that level which, according to actuarial evaluation, is necessary to make the retirement fund financially sound.
Sec. 18-24. Investment committee.

    (a)     Investments shall be made by the director of finance or the director’s designee under the direction and review of the investment committee. The investment committee shall establish a general policy for investments, and the fund shall be invested by the director of finance in accordance with that policy, with t. The investment committee shall reviewing such the investments from time to time as it shall deem appropriate. The director of finance shall make a quarterly report of investments and disbursements as authorized in section 18-26.

    (b)     The investment committee shall consist of:

    (1)    Two (2) members of the firefighters' retirement board selected by that board; one of whom shall be a citizen and the other a firefighter; and
    (2)    Two (2) members of the police retirement board selected by that board; one of whom shall be a citizen and the other a police officer; and

    (3)    The director of finance.

    (c)     The director of finance shall be a nonvoting member of the investment committee; the affirmative vote of three (3) members of the committee shall be necessary to take any action.

    (d)     The policies of the committee shall be advisory and subject to the review of the finance advisory committee and city council who which may affirm or reject such policies and direct the finance director's director of finance’s investments accordingly.

Sec. 18-25. Diversion of funds.

    Neither the administrator, the investment board nor the respective boards of either retirement fund shall attempt to cause or permit the diversion or use of any of the assets of the retirement funds or past funds other than for the specific purposes and uses herein set forth.

Sec. 18-26. Administrator to make disbursements.

    The payment of any benefit, whether of a continuing or single nature, shall be made by the administrator in accordance with standard city procedures and the provisions of this article. Such benefits, if of a continuing nature, shall be paid by the finance director as treasurer until informed by the board to cease such payments.

Sec. 18-27. Benefits from prior plans Reserved.

     In the event of a claim for benefits from the prior fund or an appeal from any decision of the administrator, such claim or appeal shall be heard by the board which administers the fund serving the type of covered employment in which the claimant or appellant last served.

Nothing in this article shall be deemed to alter or amend any benefit accruing under an application made prior to the effective date hereof under the provisions of the police and firemens' retirement fund, herein referred to as past fund. Prior to the effective date of the amendment, the treasurer-finance director, is hereby instructed to obtain a certified copy of the provisions of Article III, Chapter 9 of the 1964 City Code governing the past fund, the police and firemens' retirement fund. Such a copy is to be maintained in the finance director's office and will govern all appeals and requests with respect to the past fund.

Sec. 18-28. Employment of professional services.

    The administrator, the police retirement board or the firefighters' retirement board may, under the procedures established by city ordinance, employ the services of an investment counselor, attorney, actuary or other professional to assist in the their duties. and may pay a reasonable fee from the funds therefor. In the event of If services are rendered to more than one fund, payment for any such services shall be debited against the funds in the same ratio as proportion to their fund balances relate.

     (1)    Unless such services are so acquired, the administrator shall provide financial services as hereinbefore provided and the city counselor shall provide legal services.

     (2)    Such services, when provided by city staff persons, shall be charged against the funds in the same manner and at the same rate as charged the enterprise funds of the city.

Sec. 18-29. Penalty.

    Any person who shall knowingly or wilfully make any false statement in regard to applying for or securing a pension or disability benefit under the retirement plans herein established, or who shall falsify, cause or permit to be falsified any record or records of such retirement plan in any attempt to defraud such retirement plan as a result of such act, shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than one dollar ($1.00) nor more than one thousand dollars ($1,000.00), or be imprisoned in the city jail for not more than one year, or shall be subject to both such fine and imprisonment., and, i In addition, shall forthwith have all of his rights, interest and privileges of such person under and by virtue of such retirement plan shall be revoked and canceled.

Sec. 18-30. Miscellaneous.

    (a)     The city may terminate the plans at any time. Upon the termination of the plans the city shall direct and require liquidation of the trust after payment of expenses by the payment or provision for the payment of benefits. Any distribution after termination of the plans may be made, in whole or in part, to the extent that no discrimination in value results, in cash, in securities or other assets in kind (based on their fair market value as of the date of distribution), or in nontransferable annuity contracts providing for pensions commencing at the covered employees' normal eligible retirement dates, as the city, in its discretion, shall determine.

In no event shall the city receive any amounts from the trust upon termination of the plans except that, and notwithstanding any other provision of the plans, (i) the city shall receive such amounts, if any, as may remain after the satisfaction of all liabilities of the plans and arising out of any variations between actual requirements and expected actuarial requirements, and (ii) the city may receive the amount of any contribution to the extent such contribution was made under mistake of fact.

If the city partially or completely terminates either of the plans or discontinues contributions to either plan, members of the affected plan shall be one hundred percent vested in the plan benefits to the extent such benefits are funded.

    (b)     The laws of the state and the ordinances of the city shall govern, control and determine all questions arising with respect to the plans and the interpretation and validity of their provisions. The interpretation of the provisions shall be made in such a manner as to confirm and continue its status as qualified plans and trust under the code.

    (c)     No pension payable under the plans shall exceed the limitations under internal revenue code section 415 and such limitations are expressly incorporated into the plans by this reference.

Secs. 18-31--18-354. Reserved.


   DIVISION 2.

POLICE OFFICERS

Sec. 18-35.  Definitions and rules of construction.

     The following definitions and rules of construction apply to this division:

     Active service. The regular service of a covered police employee and sick leave and vacation accrued and actually taken as a result of that employment, as well as 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. It shall exclude periods spent by an otherwise active employee while on any inactive pay status such as lost time, leave of absence or other leave for military service. Such voluntary or involuntary absences of a covered police employee shall not be counted as time spent in active service and covered employment.

     Administrator.  The director of finance of the city.

     Child. The natural or legally adopted child of a covered police employee or retiree, who is unmarried and under the age of eighteen (18), shall be deemed a child for all purposes under this division. A stepchild who is unmarried, under the age of eighteen (18), and domiciled with and under the control and supervision of a covered police employee, shall be deemed a child under this division for purposes of disability benefits. A stepchild who is unmarried, under the age of eighteen (18), and domiciled with and under the control and supervision of a covered police employee or retiree, shall be deemed a child for purposes of death benefits.

     Code. The Internal Revenue Code of 1986, as amended.

     Covered employment. The active service of a covered police employee and service covered by another plan established by this article.

     Covered police employee. A person employed by the Columbia Police Department as a full-time, regular police officer. This term shall exclude clerical employees, watchmen, school traffic guards, turnkeys, volunteers and any other employee or associate, regardless of whether they are commissioned as a police officer, when they are not a salaried full-time, regular police officer of the city.

     Duty-related disability or death. A disability or death which results from a disease contracted or an injury sustained by a covered employee while in the actual discharge and performance of the duties of the employee’s covered employment at some definite time and place. Duty-related disability or death shall include a disability or death which results from a disease contracted or an injury sustained by an off-duty covered employee acting under color of the employee’s commission. A disability or death resulting from a disease contracted or an injury sustained by an off-duty covered employee while in paid employment of another entity shall only be considered a duty-related disability or death if the covered employee was acting under color of the employee’s commission within the limits of the City of Columbia at the time the disability was sustained.

     Highest average salary. The average of the thirty-six (36) months of covered employment, whether or not consecutive, in which such covered police employee's salary was the highest, or, if the employee has less than thirty-six (36) months of service, then the average salary over the employee’s entire period of service. For the purposes of calculating the thirty-six (36) months of highest average, no period shorter than twelve (12) months shall be used. “Salary,” as used in this definition, includes only compensation included in computing the employee’s contributions to the police retirement fund.

     Nonduty-related disability or death. A disability or death other than a duty-related disability or death.

     Pick up.  This term has the same meaning in this division as it has in code section 414(h).
                        
     Plan year. The twelve-month period commencing on each October 1 and ending on the following September 30.
    
     Retiree.  A former covered police employee entitled to receive benefits from the police retirement fund.

     Social Security and Workers' Compensation entitlements. The amount of Social Security or Workers' Compensation benefits to which a claimant would be entitled as a result of the claimant’s covered employment, regardless of whether a claimant has actually made application for such benefits. Failure of a claimant to apply for such a benefit shall result in the calculation of the claimant’s benefits under the police retirement fund as if such benefits are actually being received. Only an adverse determination by the appropriate Social Security or Workers' Compensation authority shall be deemed a bar to such reductions and such a determination shall be conclusive upon the police retirement board consideration of the amount of such an entitlement. Determination of entitlement shall be fixed as of the date of application for benefits from the police retirement fund.

     Surviving spouse. The spouse of a covered police employee or retiree to whom the employee was married at the date of the covered police employee's  or retiree’s death.

     Trustee. The City of Columbia.

     Trust fund. The assets held by the trustee at the time of the adoption of this division and such assets as thereafter increased or decreased by contribution, investment, reinvestment, expenses (including any taxes), and distributions.

     Year(s) of service. A plan year in which a covered police employee has at least two hundred sixty (260) days of service. A covered police employee who has fewer than two hundred sixty (260) days of service in a plan year which includes the date the employee’s employment or reemployment commenced shall in each case receive a partial year of service equal to the number of  the employee’s days of service in such plan year divided by two hundred sixty (260).

Sec. 18-36. Police retirement board--Memberships; terms; compensation.

    (a)     The police retirement board is hereby established plan (PRP) and fund (PRF) shall be administered by the council and director of finance under the review of and advice by the police retirement board (PRB). The board shall consist of four (4) five (5) members, two (2) of whom shall be salaried members of the police department, two (2) of whom shall be registered voters and residents of the city. The chief of police shall be an ex officio, nonvoting member of the board.

    (b)     The police members of the PRB board shall be elected by a majority vote of the covered police employees of their department for terms of two (2) years.

    (c)     The citizen members shall be appointed by the city council for two-year terms and shall serve at their pleasure.  Appointments to fill vacancies shall be for unexpired terms only.  The citizen members shall be chosen from applicants who are not employees of the city. The members shall be appointed for full staggered two-year terms.

    (d)     No PRB board member shall receive any compensation for service, although reasonable expenses of members shall be reimbursed in the same manner as provided elsewhere for reimbursement of council expenses.

    (e)     Members shall serve until their successors are appointed.

     (f)    The board shall elect a chair from its voting members.

Sec. 18-37. Same--Meetings; quorum; attendance; vacancies.

    The PRB board shall hold one regular meeting each quarter at a time and place to be determined by the board, and may hold such additional meetings as may be required for the transaction of the business of the board. A quorum for the transaction of business at such meetings shall be a majority of the duly appointed and acting members of the board. The chief of police shall not be counted toward determining a quorum. The chair of the board is authorized to excuse any member from attendance at a board meeting; provided, that the member requested to be excused before the meeting.  Any member who is absent, without being excused, from two consecutive regular meetings shall automatically forfeit the office.  Any board member having three (3) unscheduled absences without just cause within a period of one year, or who shall be continuously absent from meetings for any reason for a period of four (4) consecutive months (when regular meetings have been held in said four (4) months) without prior city council consent, shall automatically forfeit his office. It shall be the duty of the chairman of the board to promptly notify the city council appointing authority of the vacancy.

Sec. 18-38. Same--Powers and duties.

    (a)     The PRB board shall oversee and establish policies for the police retirement trust, advise the city council and the director of finance upon the administration of the fund, shall hear appeals from the decisions of the director of finance in accordance with the provisions of this article and such additional rules as it shall adopt.

    (b)      The administrator shall keep the books and records of the PRF with these being audited annually by an independent auditor as a part of the city's annual audit; provided, however, that r Records of hearings before the PRB board and its minutes shall be kept by its secretary. These records of the proceedings of the PRB board shall be open to the public during all regular business hours; however, the records of medical examinations made of any retiree or applicant for retirement shall not be subject to inspection by the public closed records.

    (c)     The board shall have exclusive original jurisdiction to receive, hear and rule upon all appeals from decisions of the administrator for benefits from the fund under the contested case provisions of chapter 536 RSMo. and to hear and determine all such appeals. The decision of the board shall be in writing, and the board may take and preserve the evidence on any disputed claim and such evidence, records, findings and decision of the board shall be subject to judicial review on certiorari or other proper legal procedure with the full right of appeal from the decision of the reviewing court on appeal, as in other civil cases.

    (d)     The PRB shall have the power, and they are required, to board may prescribe rules and regulations, not inconsistent with state laws or this article, to govern and control the hearing, consideration and disposition of all appeals, and other administrative matters and proceedings before such the board.

    (e)     The PRB board shall advise the council in order that a high degree of care is exercised to keep the PRF police retirement fund safely invested in such securities as will afford the greatest return consistent with safety of principal, but such investments shall be limited to such securities as are, or may be eligible by the laws of the State of Missouri.

     (f)     The PRB shall hold regular meetings at a time to be fixed by it, and may hold such meetings as may be required for the transaction of the business of the board.

Sec. 18-39. Creation of police retirement plan and fund.

    There is hereby created , pursuant to the constitution and laws of Missouri, the police retirement plan for the retirement of such salaried members of the Columbia Police Department as are hereafter designated as "covered police employees."  Such The plan of retirement shall includes benefits paid on account of age, or service, disability, and upon retirement of a covered employee or upon their death. In order to maintain such benefits, a police retirement fund is hereby created and shall be maintained as the council deems appropriate from public funds appropriated by the council, from the contributions of covered employees and from such other funds and sources as have been previously set forth.

    This fund shall be a trust, within the meaning of section 401(a) of the Internal Revenue Code, created for the exclusive benefit of covered police employees, retirees, their spouses and minor children. At no time prior to the satisfaction of all liabilities with respect to covered police employees, retirees and their beneficiaries under the trusts, shall any part of the corpus or income be used for, or diverted to, purposes other than for the exclusive benefit of covered police employees, retirees or their beneficiaries.

     Except as otherwise provided in this plan, the trust fund shall be retained for the exclusive benefit of covered employees and their beneficiaries, shall be used to pay benefits to such persons, to pay administrative expenses to the extent not paid by the city, and shall not revert to or inure to the benefit of the city.

Sec. 18-40. Contributions from covered employees to the police retirement fund.

    (a)     Covered police employees shall be assessed and required to pay into the fund three and five-tenths (3.5) per cent of their compensation. “ Compensation,”as used in this subsection, includes salary, wages, overtime pay, amounts contributed to a cafeteria plan under code section 125, amounts contributed to a deferred compensation plan under code section 457, amounts contributed to this plan on behalf of a covered employee and picked up by the city under code section 414(h), sick leave buy back payments, automobile allowance payments, and cash in lieu of vacation paid under section 19-129(b). Compensation does not include payment for unused vacation days or unused floating holidays, workers compensation payments, safety awards, or any other payment or benefit not listed in this subsection.

    (b)     The contributions of covered police employees shall be deducted from the their biweekly compensation paid to each by the administrator and placed in the PRF police retirement fund. Deduction of contributions shall be a term and condition of employment; acceptance and continuance in employment shall be deemed to be the assent of an employee to deductions.

    (c)      Nothing herein shall be deemed to prevent or prohibit the payment by covered employees of the police department of the Social Security Tax under the Federal Old-Age and Survivors Insurance Act. Such sums shall be paid by the police employee and collected by the city as provided by law.

     (d)    The city shall pick up employee contributions required of covered police employees for all compensation earned after the effective date of this provision. The contributions so picked-up shall be treated as employer contributions in determining tax treatment under the code. The city shall pick up these contributions from funds established and available, which funds would otherwise have been designated as employee contributions and paid to the retirement fund. Employee contributions picked-up by the city pursuant to this provision shall be treated for all other purposes, in the same manner and to the same extent, as employee contributions made prior to the effective date of this provision.

The effective date of this provision shall be the first day of the first pay period following at least thirty (30) days after the city has received notification from the Internal Revenue Service that p Pursuant to section 414(h) of the code, these employee contributions so picked up shall not be included in gross income for tax purposes until such time as they are distributed by refund or benefit payment.

    ( ed)     The city shall pay into the police retirement fund all amounts that are needed, in addition to the contributions of covered police employees, to make the fund actuarially and financially sound. Exclusive benefit; mistake of fact. Except as otherwise provided in this plan, the trust fund shall be retained for the exclusive benefit of covered employees and their beneficiaries, shall be used to pay benefits to such persons, to pay administrative expenses to the extent not paid by the city, and shall not revert to or inure to the benefit of the city.

     (e)  The trustee administrator, shall return to the appropriate city fund the amount of the any city's contribution made by mistake of fact.

Sec. 18-41. Definitions Reserved.

     For the purposes of this division, the following words and terms shall have the meanings respectively ascribed:

     Accrued benefit. The monthly amount which would be payable to a covered employee at normal retirement date based upon highest average salary and years of service as of the date of determination.

     Active service. The regular service of a covered police employee and sick leave and vacation accrued and actually taken as a result of that employment, as well as military leave which qualifies under the Veterans Reemployment Rights Act (38 U.S.C. 2021, et seq.) as now enacted, or hereafter amended. It shall exclude periods spent by an otherwise active employee while on any inactive pay status such as lost time, leave of absence or other leave for military service. Such voluntary or involuntary absences of a covered police employee shall not be counted as time spent in active service and covered employment.

     Child or children. The natural or legally adopted child or children of a covered employee, who are unmarried and under the age of eighteen (18), shall be deemed a child or children for all purposes under this division. Stepchildren who are unmarried, under the age of eighteen (18), and in the care of the covered employee, shall be deemed a child or children under this division for purposes of disability benefits. If there is no surviving spouse at the time of the covered employee's death, a stepchild or stepchildren who are unmarried, under the age of eighteen (18), and in the care of the covered employee, shall be deemed a child or children for purposes of death benefits.

     Code. The Internal Revenue Code of 1986, as amended.

     Compensation. The total amount of salary, wages, and overtime pay currently paid or payable by the city to a covered employee for his service. Compensation shall include any amounts contributed to a cafeteria plan under code section 125, any amounts contributed to a deferred compensation plan under code section 457, and any amounts contributed to this plan on behalf of a covered employee and picked up by the city under code section 414(h).

     Covered employment. The active service of a covered police employee and service covered by another plan established by this article.

     Covered police employee. A person employed by the Columbia Police Department as a full-time, regular police officer. This term shall exclude clerical employees, watchmen, school traffic guards, turnkeys, volunteers and any other employee or associate, regardless of whether they are commissioned as a police officer, when they are not a salaried full-time, regular police officer of the city.

     Duty-related disability or death. A disability or death which results from a disease contracted or an accidental injury sustained by a covered employee while in the actual discharge and performance of the duties of his covered employment at some definite time and place. Duty-related disability or death shall include a disability or death which results from a disease contracted or an injury sustained by an off-duty covered employee acting under color of his commission. A disability or death resulting from a disease contracted or an injury sustained by an off-duty covered employee while in paid employment of another entity shall only be considered a duty-related disability or death if the covered employee was acting under color of his commission within the limits of the City of Columbia at the time he sustained the disability.

     Eligible spouse. The spouse of a covered employee to whom the employee was married at the date of the covered employee's death.

     Highest average salary. The average of the thirty-six (36) months of covered employment, whether or not consecutive, in which such covered employee's salary was the highest, or, if he has less than thirty-six (36) months of service, then the average salary over his entire period of service. For the purposes of calculating the thirty-six (36) months of highest average salary, no period shorter than one of twelve (12) months shall be used in that calculation.

     In care of. Children shall be deemed in the care of a covered police employee if they are domiciled with and under the control and supervision of a covered police employee.

     Nonduty-related disability or death. A disability or death other than a duty-related disability or death.

    Plan benefits.  Plan benefits include disability retirement benefits determined by Section 18-46, death benefits determined by Section 18-47 and benefits determined by subsections (1) or (2) below.  The plan benefits of subsection (1) below apply to covered employees hired after October 1, 1991 and covered employees employed on October 1, 1991 who elected the benefits of subsection (1).  The plan benefits of subsection (2) below apply to covered employees employed on October 1, 1991 who elected the benefits of subsection (2).

     (1)    A covered employee retired due to age or service shall receive three (3) per cent of highest average salary per year of covered employment up to twenty (20) years. For each year of service in covered employment over twenty (20), the covered employee shall receive an additional two (2) per cent of highest average salary per year, up to a maximum of seventy (70) per cent 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 0.6% (i.e. annual compound COLA).

     (2)    A covered employee covered under this option of the plan shall receive, up to age sixty-two (62), a benefit as set out in subsection (1) above. In addition, a covered employee retiring prior to age sixty-two (62) according to the eligibility requirements of this plan shall receive an increase in the first month of each plan year after retirement of two (2) per cent of the retirement benefits per year up to age sixty-two (62). After age sixty-two (62), all employees retired under this option shall receive two and twenty hundredths (2.20) per cent of the highest average salary times the number of years of continuous service up to twenty (20) years. For each year over twenty (20), one and seventy hundredths (1.70) per cent of highest average salary is added. The maximum benefit is fifty-two and five tenths (52.5) per cent of highest average salary with twenty-five (25) years of continuous service. The benefit calculated at age sixty-two (62) is then increased by two (2) per cent for each year from retirement to age sixty-one (61). The benefits calculated at age sixty-two (62) shall be increased each future year of retirement by two (2) per cent. The benefit calculated at age sixty-two (62) is then payable from age sixty-two (62) and increased in each future year by two (2) per cent of the preceding year's benefit amount.

     Plan year. The twelve-month period commencing on each October 1 and ending on the following September 30.

     Social Security and Workers' Compensation entitlements. The amount of Social Security or Workers' Compensation benefits to which a claimant would be entitled as a result of his covered employment, regardless of whether a claimant has actually made application for such benefits. Failure of a claimant to apply for such a benefit shall result in the calculation of his benefits under the PRF as if such benefits are actually being received. Only and adverse determination by the appropriate Social Security or Workers' Compensation authority shall be deemed a bar to such reductions and such a determination shall be conclusive upon the PRB consideration of the amount of such an entitlement. Determination of entitlement shall be fixed as of the date of application for benefits from the funds hereunder created.

     Trustee. The City of Columbia.

     Trust fund. The assets held by the trustee at the time of the adoption of this division and such assets as thereafter increased or decreased by contribution, investment, reinvestment, expenses (including any taxes), and distributions.

     Widowed spouse. A spouse who is legally married to a covered police employee at the date of his death.

     Year(s) of service. A plan year in which a covered employee has at least two hundred sixty (260) days of service. A covered employee who has fewer than two hundred sixty (260) days of service in a plan year which includes the date his employment or reemployment commenced shall in each case receive a partial year of service equal to the number of his days of service in such plan year divided by two hundred sixty (260).

Sec. 18-42. Eligibility for rRetirement by reason of age or service.

Covered police employees shall be eligible for retirement benefits by reason of age and service in the following instances:

     (1)    A covered police employee shall be eligible for the normal retirement benefit upon reaching the age of sixty-five (65), without regard to the fact that the employee may have ceased active employment prior to reaching age sixty-five (65).

     (2)    A covered police employee shall be eligible for a normal retirement benefit upon having completed twenty (20) years of active service, without regard to age.

     (3)    No covered police employee shall be required to continue in covered employment after becoming eligible for a retirement benefit established under this section.  Covered employment shall cease at the date that a covered police employee becomes seventy (70); provided, however, that a covered police employee may be continued by the city manager in covered employment past his seventieth birthday upon his request and with the consent of the police chief until September thirtieth of the year in which he turns seventy (70) years of age, or six (6) months after the attainment of seventy(70) years of age, whichever is less.

    (a)    A covered police employee shall be eligible to receive retirement benefits upon reaching the age of sixty-five or upon having completed twenty years of active service without regard to age.

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

     (c)    The administrator shall pay to a retiree, retired on account of age or service, retirement benefits determined by subsections (1) or (2) below.  The plan benefits of subsection (1) below apply to employees hired after October 1, 1991 and employees employed on October 1, 1991 who elected the benefits of subsection (1).  The plan benefits of subsection (2) below apply to employees employed on October 1, 1991 who elected the benefits of subsection (2).

     (1)    A retiree retired due to age or service shall receive three (3) per cent of highest average salary per year of covered employment up to twenty (20) years. For each year of service in covered employment over twenty (20), the retiree shall receive an additional two (2) per cent of highest average salary per year, up to a maximum of seventy (70) per cent 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 0.6% (i.e. annual compound COLA).

    (2)    A retiree covered under this option of the plan shall receive, up to age sixty-two (62), three (3) per cent of highest average salary per year of covered employment up to twenty (20) years. For each year of service in covered employment over twenty (20), the retiree shall receive an additional two (2) per cent of highest average salary per year, up to a maximum of seventy (70) per cent for twenty-five (25) years of service. In addition, a covered police employee retiring prior to age sixty-two (62) according to the eligibility requirements of this plan shall receive an increase in the first month of each plan year after retirement of two (2) per cent of the retirement benefits per year up to age sixty-two (62). After age sixty-two (62), all employees retired under this option shall receive two and twenty hundredths (2.20) per cent of the highest average salary times the number of years of continuous service up to twenty (20) years. For each year over twenty (20), one and seventy hundredths (1.70) per cent of highest average salary is added. The maximum benefit is fifty-two and five tenths (52.5) per cent of highest average salary with twenty-five (25) years of continuous service. The benefit calculated at age sixty-two (62) is then increased by two (2) per cent for each year from retirement to age sixty-one (61). The benefits calculated at age sixty-two (62) shall be increased each future year of retirement by two (2) per cent. The benefit calculated at age sixty-two (62) is then payable from age sixty-two (62) and increased in each future year by two (2) per cent of the preceding year's benefit amount.

     (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.

     (e)    If, when a covered police employee’s employment is terminated, 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 subsection 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 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.

Sec. 18-43. Eligibility for Disability benefits on account of disability or death.

     (a)    A covered police employee who sustains a duty-related disability or a covered police employee having completed one continuous year or more of covered employment who sustains a nonduty-related disability shall be entitled to the disability benefit as set out in this section. 18-46 or his spouse and minor children shall be entitled to the death benefit, or both, in the following cases:  The covered police employee shall be entitled to the disability benefit only while the disease or injury renders the employee unfit for the regular duties of the employee’s covered employment.

     (1)    If such a disease or injury shall disable a covered police employee, physically or mentally, so as to render him unfit for the performance of the regular duties of his covered employment, then for so long as such disability continues he shall be eligible for the disability benefit as hereinafter set forth. Upon the termination of the disability, payment of the benefit shall cease; provided, however, that no disability shall be deemed to have terminated so long as the covered police employee is unable to return to his the employee’s former regular duties as a policeman solely because of the disability or a residual effect thereof. Upon termination of a disability, no right of automatic reemployment exists. Reemployment shall be governed by the provisions of the city's personnel code.

     (2)    If a disease or injury shall cause the death of a covered police employee, then his spouse and minor children, if any, shall be eligible for the death benefit as hereinafter set forth.

     (3)    The disability benefit and the death benefit shall not be payable with respect to any disability or death resulting from suicide or attempted suicide.

     (b)    Eligible covered police employees shall be paid from the police retirement fund, from Workers' Compensation benefits, from Social Security benefits or from some combination thereof, the following benefits:

     (1)    To a covered police employee, disabled with a duty-related disability, a disability benefit equal to fifty (50) per cent of the employee’s highest average salary plus ten (10) per cent of that salary for each unmarried dependent child under the age of eighteen (18), to an amount not to exceed ninety (90) per cent of the employee’s highest average salary. Such benefit shall be payable monthly.

     (2)    To a covered police employee, disabled with a nonduty-related disability, a disability benefit equal to two and one-half (2.5) percent of the employee’s highest average salary per year of covered employment plus an additional one-half (.5) per cent of that salary per year for each unmarried dependent child under the age of eighteen (18), up to a maximum of four (4) children.  Such benefit shall be payable monthly.
     (3)    Duty and nonduty-related disability benefits paid to any covered police employee shall be offset dollar for dollar by the excess of income received by the retiree over one hundred (100) percent of the employee's highest average salary. For purposes of this section, income shall be defined as the combination of disability retirement benefits provided herein, social security, workers' compensation benefits, other long-term disability benefits, and compensation for other employment. After a retiree accumulates twenty (20) years of combined service in covered employment and time receiving disability benefits, the income offset shall cease.

     (4)    In the event of a lump sum Workers' Compensation settlement, the amount of the monthly income to be used as income offset in the disability retirement benefit shall be determined by converting the lump sum Workers' Compensation amount to a single life monthly annuity of equivalent value for the benefit recipient, using the mortality table and interest rate used in the most recent actuarial valuation of the fund. For purposes of this section, future medical awards shall not be considered a part of Workers' Compensation benefits or entitlements. In addition, the monthly disability benefit shall be reduced by the amount of the single life monthly annuity as determined herein.

     (5)    For purposes of calculating the income offset for disability retirement benefits, the final average salary shall be adjusted on the anniversary date of the retiree's becoming eligible for disability retirement benefits by the percentage change in the consumer price index for this region of the country from January 1 of the previous year to January 1 of the current year.

     (6)    An employee who receives disability benefits for a duty-related disability shall receive credit for covered employment for each year of duty-related disability retirement up to a maximum, when combined with years of actual covered employment, of twenty (20) years. At that point disability retirement benefits shall cease and the retiree shall receive retirement benefits based on years of service.

     (7)    Any person disabled prior to June 7, 1993, and any person who is receiving nonduty-related disability benefit may, upon reaching age sixty-five (65) years, elect to receive, in lieu thereof, retirement benefits based on age.

Sec. 18-44. Physical examinations.

     (a)     On and after the effective date of this article, no person shall be employed in the police department as a salaried police officer unless he shall first submit to a physical examination by the physical or medical board designated by the administrator, and be certified by such physician or medical board as being physically fit for the performance of the duties in such department. The PRB may advise the city council on rules governing the age, height, weight and other physical requirements for covered police employees. All such rules initiated by the city council shall be referred to the PRB for comment.

    ( bc)     After the approval of any disability benefit, the administrator shall from time to time as he deems fit, review the disability of a covered police employee the retiree to determine whether or not the such disability continues to exist. Reexamination shall take place at least once each year unless the board shall determine otherwise. The administrator may require any claimant retiree receiving a disability benefit to undergo a medical examination to review the status of the disability. The administrator may request the claimant retiree to undergo an examination with a doctor of the claimant's retiree’s choosing and at his the retiree’s expense or may require a medical examination with a doctor of the administrator's choosing at the PRF's expense of the police retirement fund.

    (1)    Any claimant retiree refusing to submit to a medical examination after ten (10) days' written notice from the administrator shall waive and forfeit all rights to benefits from the date of the notice until such time as the claimant retiree submits to the required examination. In the event that If such refusal continues for one calendar year from the date of notice, all rights to any benefits shall immediately cease and the employee's contributions retiree’s benefits schedule shall escheat to the PRF police retirement fund.

    (2)     In the event that If the reexamination shows that the disability no longer exists, the right to benefits for disability shall immediately cease. A hearing on the continuance of the disability may be had before the administrator upon the covered police employee's retiree’s written request within ten (10) days of the administrator's notification.

     (c)     Appeals from decisions of the administrator provided for by these provisions shall be made and heard by the PRB under the rules established by section 18-49(c).

Sec. 18-45. Retirement benefits due to age or service.

     (a)     The director of finance shall pay to a covered employee retired on account of age or length of service a normal retirement benefit equal to the enhanced plan benefits (as defined in section 18-41).

     (b)     Employees hired after October 1, 1991 who become eligible for retirement due to age or length of service shall receive the benefit provided for in Section 18-45(a).

     (c)     Applications for benefits shall be upon a form designated by the administrator. Upon approval of any application for benefits by the administrator, the applicant shall become entitled to receive payment thereof on the last day of the month immediately following the month in which employment ends.

     (d)     Any claimant denied retirement benefits, or any covered police employee aggrieved by a decision of the board granting benefits, may appeal the decision to the PRB under the rules established by section 18-49(c).

     (e)     If the present value of a covered employee's accrued benefit is three thousand five hundred dollars ($3,500.00) or less at the time of the termination of the covered employee's employment, the director of finance shall at any time direct that the covered employee's accrued benefit be paid in the form of a lump sum cash payment.

Sec. 18-46. Disability retirement benefits.

     For covered police employees there shall be paid from the PRF, from Workers' Compensation benefits, from Social Security benefits or from some combination thereof, the following benefits:

     (1)    To a covered police employee, disabled with a duty-related disability as provided for in section 18-43, a disability benefit equal to fifty (50) per cent of his highest average salary plus ten (10) per cent of that salary for each unmarried dependent child under the age of eighteen (18), to an amount not to exceed ninety (90) per cent of that highest average salary. Such benefit shall be payable monthly.

     (2)    To a covered police employee, disabled with a nonduty-related disability as provided for in section 18-43, a disability benefit equal to two and one-half (2.5) percent of his highest average salary per year of covered employment plus an addition one-half (.5) per cent of his highest average salary per year for each unmarried dependent child under the age of eighteen (18), up to a maximum of four (4) children.

     (3)    Duty and nonduty-related disability benefits paid to any covered police employee shall be offset dollar for dollar by the excess of income received by the retiree over one hundred (100) percent of the employee's highest average salary. For purposes of this section, income shall be defined as the combination of disability retirement benefits provided herein, social security, workers' compensation benefits, other long-term disability benefits, and compensation for other employment. After a retiree accumulates twenty (20) years of combined service in covered employment and time receiving disability benefits, the income offset shall cease.

     (4)    In the event of a lump sum Workers' Compensation settlement, the amount of the monthly income to be used as income offset in the disability retirement benefit shall be determined by converting the lump sum Workers' Compensation amount to a single life monthly annuity of equivalent value for the benefit recipient, using the mortality table and interest rate used in the most recent actuarial valuation of the fund. For purposes of this section, future medical awards shall not be considered a part of Workers' Compensation benefits or entitlements. In addition, the monthly disability benefit shall be reduced by the amount of the single life monthly annuity as determined herein.

     (5)    For purposes of calculating the income offset for disability retirement benefits, the final average salary shall be adjusted on the anniversary date of the retiree's becoming eligible for disability retirement benefits by the percentage change in the consumer price index for this region of the country from January 1 of the previous year to January 1 of the current year.

     (6)    An employee who receives disability benefits for a duty-related disability shall receive credit for covered employment for each year of duty-related disability retirement up to a maximum, when combined with years of actual covered employment, of twenty (20) years. At that point disability retirement benefits shall cease and the benefit shall become a regular retirement benefit as set out in section 18-45.

     (7)    Any person disabled prior to June 7, 1993, and any person who is receiving nonduty-related disability benefit may, upon reaching age sixty-five (65) years, elect to receive, in lieu thereof, the normal retirement benefit to which he would otherwise be entitled.

Sec. 18-44 - 18-46.  Reserved.

Sec. 18-47. Death benefits.

    Upon the death of a covered police employee or retiree after January 4, 1993, there shall be paid by the administrator to the widowed surviving spouse and unmarried minor children a benefit from the PRF police retirement fund, from Workers' Compensation and from Social Security, or from some combination thereof, as below described:

    (1)     In the event of the death of a covered police employee under the provisions of section 18-43(2), there shall be paid a death benefit:

         a.    There shall be paid to the widowed surviving spouse of a covered police employee a monthly benefit equal to two-thirds of the base retirement benefit equal to which the deceased employee would otherwise have been entitled had the employee met the age or service requirement on the date of the employee’s death. without regard to any offset or reduction of any kind. In the event of death before retirement, the benefits shall be payable without regard to the fact that the police employee may not have met the age and/or service requirements of section 18-42 at the time of death. The benefit paid to the widowed surviving spouse shall not be reduced by any Social Security entitlement; provided, however, that the benefit paid from the PRF police retirement fund when added to the Social Security entitlement shall not exceed ninety (90) per cent of the salary which the covered police employee was receiving immediately prior to his death.

          b.    If there is no widowed surviving spouse eligible to receive benefits under the provisions of this subsection (1)a. herein, then the surviving unmarried children under the age of eighteen (18) shall divide equally the benefit to which a widowed surviving spouse would have been entitled. The death benefit shall be payable upon the last day of the month immediately following the month in which the death occurred.

    (2)     In the event of the death of a covered police employee retired after January 4, 1993, under the provisions of this plan, t  There shall be paid to the widowed surviving spouse of a retiree a monthly benefit equal to two-thirds of the base retirement benefit to which the deceased retiree was receiving immediately prior to death employee would otherwise have been entitled without regard to any offset or reduction of any kind. The benefit paid to the widowed surviving spouse shall not be reduced by any Social Security entitlement; provided, however, that the benefit paid from the PRF police retirement benefit when added to the Social Security entitlement shall not exceed ninety (90) per cent of the salary which the covered police employee deceased retiree was receiving immediately prior to his retirement.

    (3)    Upon remarriage of the widowed surviving spouse of a covered police employee or retiree, benefits allowed herein under this section shall cease if the widowed surviving spouse was not married to and living with the covered police employee or retiree for a period of at least two (2) years prior to the death of the covered police employee or retiree.

        a.    If the widowed surviving spouse is over forty (40) years of age at the time of remarriage, benefits provided hereunder under this section shall continue for the life of the widowed surviving spouse.

        b.    If the widowed surviving spouse is under forty (40) years of age upon remarriage, then benefits to which the spouse is entitled shall continue for a period of ten (10) years after the remarriage.

    (4)     Upon the death of When a covered police employee or a retireed covered police employee, not otherwise entitled to a benefit under the provisions of this section dies without a surviving spouse or other survivor entitled to benefits under this section, there shall be paid a funeral benefit of one thousand dollars ($1,000.00). The funeral benefit shall be paid to the executor or administrator personal representative of the estate of the deceased employee, or if no administrator or executor personal representative has been appointed within forty-five (45) days of his death, then to the person who actually paid the funeral and burial expense with respect to such deceased person, upon proof of such payments, or, if proof of such payment has not been made within sixty (60) days after such death, then to the mortuary that actually incurred the expense of the funeral and burial of such deceased person.

     (5)    Any claimant denied death benefits under this section by the decision of the administrator or any covered police employee aggrieved by a decision of the board granting benefits may appeal the decision to the PRB under the rules established by section 18-49(c) and the PRB.

Sec. 18-48. Social Security and Workers' Compensation entitlements.

     It is declared to be the policy of the PRF that b Benefits provided under the police retirement plan shall be reduced by the amount of any Social Security or Workers' Compensation entitlement in the manner set forth by these sections. Nothing herein shall be interpreted or administered to work a reduction of the total of the benefits paid and the entitlements due a covered employee below the benefit which would otherwise be payable under this division had the entitlements not been considered.

Sec. 18-49. Applications for benefits.

    (a)     Applications for benefits to be paid from the retirement fund must be made upon the forms provided by the administrator and contain full information from which the board may determine the eligibility of the applicant. If such application be founded upon disability, full information concerning the nature and extent of the injury must be furnished with the application, and the applicant must likewise submit to examination by a physician designated by the administrator. The administrator may hold hearings and take and preserve evidence touching the nature and extent of injuries upon which claims for benefits on account of disability are claimed, and may thereafter approve or deny such application.

    (b)     No more than one monthly payment shall be made at any one time; no payment shall be made more than ten (10) days in advance of the period to which it applies. This provision shall not prevent the lump sum settlement of past liability for a benefits in the event that a decision in the PRB in an appeal therefrom on an application for benefits is delayed in payment beyond the date upon which such benefits were to begin or were to be paid.

    (c)     Any claimant denied benefits by a decision of the administrator or any claimant or covered police employee or retiree otherwise aggrieved by any decision of the administrator may appeal such decision to the PRB police retirement board. Such appeal must be in writing and filed within ten (10) days of the date of the administrator's decision. The PRB board shall hold a hearing, take evidence and render a written decision including findings of fact and conclusions of law. Such decision shall be appealable by any person aggrieved by any decision of the PRB police retirement board or by the administrator under the provisions of the Missouri Administrative Procedure Act.

Sec. 18-50. Refunds.

    (a)     In the event of the termination, voluntary or involuntary, of When the covered employment of a covered police employee ends, such covered the employee shall, at his request, have the right to withdraw in a lump sum from the fund, contributions which he shall have the employee made,. The lump sum withdrawl shall include with interest on the contribution thereon at the annual investment rate of return of the fund as determined by the annual actuarial report for each year in which contributions were made by the covered employee, compounded annually from the last day of the calendar year in which such covered employee contributions are made to the date of withdrawal. Withdrawal of contributions by a covered police employee under this ordinance shall terminate all rights to benefits unless reinstated as herein provided. In the event that such contributions are not withdrawn, retirement benefits due to age or service under section 18-42 shall continue in accordance with the terms thereof, but all rights to other benefits under this article shall terminate.

    (b)     A covered police employee who has withdrawn his the contributions made by the employee with interest under provisions of subsection (a) hereof or received a lump-sum distribution under section 18-452(f) may, in the event of reemployment as a covered employee, reinstate benefits thereby forfeited within twelve (12) months from the date of his reemployment by repaying to the fund the contributions and interest withdrawn from the fund or the lump-sum distribution, plus interest on said the sum in the amount of the annual investment rate of return of the fund as determined by the annual actuarial report for each year that the contribution remained withdrawn from the fund, compounded annually from the date said the sum was withdrawn or lump-sum distribution was made to the date of repayment. The time which a covered police employee is absent from his covered employment shall not be deemed to be reinstated by the repayment of prior contributions.
    (c)      In the event that If the covered employment of a covered police officer employee is terminated by reason of the police officer's employee’s death and the police officer employee is not entitled to plan benefits other than the death funeral benefit authorized by section 18-47(34), the contributions of and any amounts contributed the employee to this plan and any amounts contributed to this plan and picked up by the city under code section 414(h) for the deceased police officer employee shall be refunded or distributed, upon request, to the estate of the deceased police officer employee. Interest on the contributions or distributions so refunded shall be calculated as above.

Sec. 18-51. Benefits not assignable or subject to execution.

    The benefits payable from the PRF, as herein provided, whether before or after they are ordered paid by the administrator, or after appeal, by the PRB, police retirement fund shall not be assignable or subject to counter-claim, recoupment or set off,. nor shall they be Except for qualified domestic relations orders, benefits payable from the police retirement fund shall not be subject to assessment, garnishment, execution, injunction, or any other decree, order, process, or proceeding in any court for the payment of any debt of any beneficiary, and the sum shall be held and distributed solely for the purpose of this article and for no other purpose whatsoever. This provision shall neither prohibit nor not prevent the PRB police retirement board from pursuing a covered police employee retiree or other beneficiary of the PRP police retirement plan of for recovery of benefits erroneously paid or to recover benefits paid due to fraud, duress or the concealment of any material fact necessary to properly process a claim for benefits.

Sec. 18-52. Miscalculation of benefits, payment of interest on underpayment or overpayment.

     After June 21, 1993, w Whenever a miscalculation of benefits due a retiree or beneficiary which results in an underpayment is discovered, interest on the underpayment shall be paid to the retiree or beneficiary at a rate equal to the annual investment rate of return on the police retirement fund as determined by the annual actuarial statement for each year of the underpayment. Whenever an overpayment is discovered, the retiree or beneficiary shall repay the amount erroneously paid in excess of the benefit due him plus interest for the time of overpayment equal to the annual investment rate of return on the fund as determined by the annual actuarial statement for each year of overpayment. If the amount of overpayment and interest thereon is greater than one monthly benefit payment, repayment shall be made to the fund in the same manner as provided for reimbursement by the retiree of lump sum worker's compensation benefits in section 18-463 of this Article.

Sec. 18-53.  Forfeitures.

     Forfeitures shall not be applied to increase the benefits any employee would otherwise receive under the police retirement plan.  

Sec. 18-54 Compensation limits.

     The annual compensation of each covered police employee taken into account  under the police retirement plan shall not exceed the compensation limits of section 401(a)(17) of the code, as adjusted for inflation.  

Sec. 18-55.  Direct transfer of eligible rollover distributions; rollover notice.

     (a)    To the extent required by section 401(a)(31) of the code, if the distributee of any eligible rollover distribution elects to have the distribution paid directly to an eligible retirement plan and specifies the eligible retirement plan to which the distribution is to be paid, the distribution shall be made in the form of a direct trustee to trustee transfer to the specified eligible retirement plan.

     (b)    The plan administrator shall give covered police employees an understandable written explanation of rollover rules within a reasonable period before making an eligible rollover distribution.

Secs. 18-5356--18-6059. Reserved.


DIVISION 3.

FIREFIGHTERS

Sec. 18-60.  Definitions and rules of construction.

     The following definitions and rules of construction apply to this division:
     Active service. The regular service of a covered firefighter employee and sick leave and vacation accrued and actually taken as a result of that employment, as well as 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. It shall exclude periods spent by an otherwise active employee any inactive pay status such as lost time, leave of absence or other leave for military service. Such voluntary or involuntary absences of a covered firefighter employee shall not be counted as time spent in active service and covered employment.

     Administrator.  The director of finance of the city.

     Child. The natural or legally adopted child of a covered firefighter employee.

     Code. The Internal Revenue Code of 1986, as amended.

     Covered employment. The active service of a covered firefighter employee and service covered by another plan established by this article.

     Covered firefighter employee. A person employed by the Columbia Fire Department as a full-time, regular firefighter. This term shall exclude clerical employees, volunteers and any other employee or associate, regardless of whether they are commissioned as a firefighter, when they are not a salaried full-time, regular firefighter of the city.

     Highest average salary. The average of the thirty-six (36) months of covered employment, whether or not consecutive, in which such covered firefighter employee's salary was the highest, or, if the employee has less than thirty-six (36) months of service, then the average salary over the employee’s entire period of service. For the purposes of calculating the thirty-six (36) months of highest average salary, no period shorter than twelve (12) months shall be used . “Salary,” as used in this definition, includes only compensation included in computing the employee’s contributions to the firefighters’ retirement fund.

     Pick up.  This term has the same meaning in this division as it has in code section 414(h).

     Plan year. The twelve-month period commencing on each October 1 and ending on the following September 30.

     Retiree.  A former covered firefighter employee entitled to receive benefits from the firefighters’ retirement fund.

     Surviving spouse. The spouse of a covered firefighter employee or retiree to whom the employee was married at the date of the covered firefighter employee's or retiree’s death.

     Trustee. The City of Columbia.

     Trust fund. The assets held by the trustee at the time of the adoption of this division and such assets as thereafter increased or decreased by contribution, investment, reinvestment, expenses (including any taxes), and distributions.

     Year(s) of service. A plan year in which a covered firefighter employee scheduled for eight-hour shifts has at least two thousand (2,000) hours of service. A covered firefighter employee who has fewer than two thousand (2,000) hours of service in a plan year which includes the date the employee’s employment or reemployment commenced shall in each case receive a partial year of service equal to the number of the employee’s hours of service in such plan year divided by two thousand (2,000). For a covered firefighter employee scheduled for twenty-four-hour shifts, year(s) of service, means a plan year in which the covered firefighter employee has twelve (12) calendar months with at least nine (9) shifts of service per month. A covered firefighter employee who has fewer than twelve (12) months of service in a plan year which includes the date the employee’s employment or reemployment commenced shall in each case receive a partial year of service equal to the number of the employee’s months of service in such plan year divided by twelve (12).

Sec. 18-61. Firefighters' retirement board--Memberships; terms; compensation.

    (a)     The firefighters' retirement board is hereby established plan (FRP) and fund (FRF) shall be administered by the council and the director of finance under the review of and advice by the firefighters' retirement board (FRB). The board shall consist of four (4) five (5) members, two (2) of whom shall be salaried members of the fire department, two (2) of whom shall be registered voters and residents of the city. The fire chief shall be an ex officio nonvoting member of the board.

    (b)     The firefighter members of the FRB board shall be elected by a majority of the covered firefighter employees of their department for terms of two (2) years.

    (c)     The citizen members shall be appointed by the city council to two (2) year terms and shall serve at their pleasure. Appointments to fill vacancies shall be for unexpired terms only.  The citizen members shall be chosen from applicants who are not employees of the city. The members shall be appointed for full staggered two (2) year terms.

    (d)     No FRB board member shall receive any compensation for service, although reasonable expenses of members shall be reimbursed in the same manner as provided elsewhere for reimbursement of council expenses.

    (e)     Members shall serve until their successors are appointed.

     (f)    The board shall select a chair from its voting members.

Sec. 18-62. Same--Meetings; quorum; attendance; vacancies.

    The FRB board shall hold one regular meeting each quarter at a time and place to be determined by the board, and may hold such additional meetings as may be required for the transaction of the business of the board. A quorum for the transaction of business at such meetings shall be a majority of the duly appointed and acting members of the board. The fire chief shall not be counted toward determining a quorum. Any board member having three (3) unscheduled absences without just cause within a period of one year, or who shall be continuously absent from meetings for any reason for a period of four (4) consecutive months (when regular meetings have been held in said four (4) months) without prior city council consent, shall automatically forfeit his office. The chair of the board is authorized to excuse any member from attendance at a board meeting; provided, that the member requested to be excused before the meeting. Any member who is absent, without being excused, from two consecutive regular meetings shall automatically forfeit the office. It shall be the duty of the chairman of the board to promptly notify the city council appointing authority of the vacancy.

Sec. 18-63. Same--Powers and duties.

    (a)     The FRB board shall oversee and establish policies for the fire retirement trust, advise the city council and the director of finance upon the administration of the fund, shall hear appeals from the decisions of the director of finance in accordance with the provisions of this article and such additional rules as it shall adopt.

    (b)      The administrator shall keep the books and records of the FRF with these being audited annually by an independent auditor as a part of the city's annual audit; provided, however, that r Records of hearings before the FRB board and its minutes shall be kept by its secretary. These records of the proceedings of the FRB board shall be open to the public during all regular business hours; provided, however, the records of medical examinations made of any retiree or applicant for retirement shall not be subject to inspection by the public closed records.

    (c)     The board shall have exclusive original jurisdiction to receive, hear and rule upon all appeals from decisions of the administrator for benefits from the fund under the contested case provisions of chapter 536 RSMo. and to hear and determine all such appeals. The decision of the board shall be in writing and the board may take and preserve the evidence on any disputed claim and such evidence, records, finding and decision of the board shall be subject to judicial review on certiorari or other proper legal procedure with the full right of appeal from the decision of the reviewing court on appeal, as in other civil cases.

    (d)     The FRB shall have the power, and they are required, to board may prescribe rules and regulations, not inconsistent with state laws or this article, to govern and control the hearing, consideration and disposition of all appeals, and other administrative matters and proceedings before such the board.

    (e)     The FRB board shall advise the city council in order that a high degree of care is exercised to keep the FRF firefighter’s retirement fund safely invested in such securities as will afford the greatest return consistent with safety of principal, but such investments shall be limited to such securities as are, or may be eligible by the laws of the State of Missouri.

     (f)     The FRB shall hold one regular meeting each month at a time to be fixed by it, and may hold such additional meetings as may be required for the transaction of the business of the board.

Sec. 18-64. Creation of firefighters' retirement plan and fund.

    There is hereby created , pursuant to the constitution and laws of Missouri, the firefighters' retirement plan for the retirement of such salaried members of the Columbia Fire Department as are hereafter designated as "covered firefighter employees." Such The plan of retirement shall includes benefits paid on account of age, service, or disability, upon retirement of a covered employee or upon their and death. In order to maintain such benefits, a firefighters' retirement fund is hereby created and shall be maintained as the council deems appropriate from public funds appropriated by the council, from the contributions of covered employees and from such other funds and sources as have been previously set forth.

    This fund shall be a trust, within the meaning of section 401(a) of the Internal Revenue Code, created for the exclusive benefit of covered firefighter employees, retirees, their spouses and minor children. At no time prior to the satisfaction of all liabilities with respect to covered firefighter employees and their beneficiaries under the trusts, shall any part of the corpus or income be used for, or diverted to, purposes other than for the exclusive benefit of covered firefighter employees retirees or their beneficiaries.

     Except as otherwise provided in this plan, the trust fund shall be retained for the exclusive benefit of employees and their beneficiaries, shall be used to pay benefits to such persons, to pay administrative expenses to the extent not paid by the city, and shall not revert to or inure to the benefit of the city.

Sec. 18-65. Contributions from covered employees to the firefighters’ retirement fund.

    (a)     The contribution of each covered firefighter employee shall be sixteen and twenty four hundredths (16.24) per cent of that the employee's compensation.  “Compensation,” as used in this subsection, includes salary, wages, overtime pay, amounts contributed to a cafeteria plan under code section 125, amounts contributed to a deferred compensation plan under code section 457, and any amounts contributed to this plan on behalf of a covered employee and picked up by the city under code section 414(h), sick leave buy back payments, automobile allowance payments, and cash in lieu of vacation payments under section 19-129(b). Compensation does not include payment for unused vacation days or unused floating holidays, workers compensation payments, safety awards, or any other payment or benefit not listed in this subsection.

    (b)    In addition to the contribution set forth in subparagraph (a) above, each covered firefighter employee shall pay into the FRF an amount equal to that which he would be required to pay if subject to Social Security tax. In addition to other employee contributions set forth in this section, each covered firefighter employee shall pay into the firefighters’ retirement fund one and eight hundredths (1.08) percent of the employee's compensation. This amount is to pay for the 1997 improvements in disability retirement benefits and is subject to periodic adjustment.

    (c)    The contributions of covered firefighter employees shall be deducted from their biweekly compensation paid to each by the administrator and placed in the FRF firefighters’ retirement fund. Deduction of contributions shall be a term and condition of employment; acceptance and continuance in employment shall be deemed to be the assent of an employee to deductions.

    (d)     The city shall pick up employee contributions required of covered firefighter employees for all compensation earned after the effective date of this provision. The contributions so picked-up shall be treated as employer contributions in determining tax treatment under the code. The city shall pick up these contributions from funds established and available, which funds would otherwise have been designated as employee contributions and paid to the retirement fund. Employee contributions picked-up by the city pursuant to this provision shall be treated for all other purposes, in the same manner and to the same extent, as employee contributions made prior to the effective date of this provision.

The effective date of this provision shall be the first day of the first pay period following at least thirty (30) days after the city has received notification from the Internal Revenue Service that p Pursuant to section 414(h) of the code, these employee contributions so picked up shall not be included in gross income for tax purposes until such time as they are distributed by refund or benefit payment.

    (e)      Exclusive benefit; mistake of fact. Except as otherwise provided in this plan, the trust fund shall be retained for the exclusive benefit of employees and their beneficiaries, shall be used to pay benefits to such persons, to pay administrative expenses to the extent not paid by the city, and shall not revert to or inure to the benefit of the city. The trustee, shall return to the city the amount of the city's contribution made by mistake of fact.  The city shall pay into the firefighters’ retirement fund all amounts that are needed, in addition to the contributions of covered firefighter employees, to make the fund actuarially and financially sound.

    (f)      In addition to other employee contributions set forth in this section, each covered firefighter employee shall be assessed and be required to pay into the fund one and eight hundredths (1.08) percent of the employee's compensation. This amount is to pay for the 1997 improvements in disability retirement benefits and is subject to periodic adjustment.  The administrator, shall return to the appropriate city fund any city contribution made by mistake.

Sec. 18-66.  Definitions.
     For the purposes of this division, the following words and terms shall have the meanings respectively ascribed:

     Accrued benefit. The monthly amount which would be payable to a covered employee at normal retirement date based upon highest average salary and years of service as of the date of determination.

     Active service. The regular service of a covered firefighter employee and sick leave and vacation accrued and actually taken as a result of that employment, as well as military leave which qualifies under the Veterans Reemployment Rights Act (38 U.S.C. 2021, et seq.) as now enacted, or hereafter amended. It shall exclude periods spent by an otherwise active employee any inactive pay status such as lost time, leave of absence or other leave for military service. Such voluntary or involuntary absences of a covered firefighter employee shall not be counted as time spent in active service and covered employment.

     Child or children. The natural or legally adopted child or children of a covered employee.

     Code. The Internal Revenue Code of 1986, as amended.

     Compensation. The total amount of salary, wages, and overtime pay currently paid or payable by the city to a covered employee for his service. Compensation shall include any amounts contributed to a cafeteria plan under code section 125, any amounts contributed to a deferred compensation plan under code section 457, and any amounts contributed to this plan on behalf of a covered employee and picked up by the city under code section 414(h).

     Covered employment. The active service of a covered firefighter employee and service covered by another plan established by this article.

     Covered firefighter employee. A person employed by the Columbia Fire Department as a full-time, regular firefighter. This term shall exclude clerical employees, watchmen, school traffic guards, turnkeys, volunteers and any other employee or associate, regardless of whether they are commissioned as a firefighter, when they are not a salaried full-time, regular firefighter of the city.

     Eligible spouse. The spouse of a covered employee to whom the employee was married at the date of the covered employee's death.

     Highest average salary. The average of the thirty-six (36) months of covered employment, whether or not consecutive, in which such covered employee's salary was the highest, or, if he has less than thirty-six (36) months of service, then the average salary over his entire period of service. For the purposes of calculating the thirty-six (36) months of highest average salary, no period shorter than one of twelve (12) months shall be used in that calculation.

     Plan year. The twelve-month period commencing on each October 1 and ending on the following September 30.

     Trustee. The City of Columbia.

     Trust fund. The assets held by the trustee at the time of the adoption of this division and such assets as thereafter increased or decreased by contribution, investment, reinvestment, expenses (including any taxes), and distributions.

     Widowed spouse. A spouse who is legally married to a covered firefighter employee at the date of his death.

     Year(s) of service. A plan year in which a covered employee scheduled for eight-hour shifts has at least two thousand (2,000) hours of service. A covered employee who has fewer than two thousand (2,000) hours of service in a plan year which includes the date his employment or reemployment commenced shall in each case receive a partial year of service equal to the number of his hours of service in such plan year divided by two thousand (2,000). For a covered employee scheduled for twenty-four-hour shifts, year(s) of service, means a plan year in which the covered employee has twelve (12) calendar months with at least nine (9) shifts of service per month. A covered employee who has fewer than twelve (12) months of service in a plan year which includes the date his employment or reemployment commenced shall in each case receive a partial year of service equal to the number of his months of service in such plan year divided by twelve (12).

Sec. 18-67. Eligibility for rRetirement by reason of age or service.

     Covered firefighter employees shall be eligible for retirement benefits by reason of age and service in the following instances:

     (1)    A covered firefighter employee shall be eligible for the normal retirement benefit upon reaching the age of sixty-five (65) without regard to the fact that the employee may have ceased active employment prior to reaching age sixty-five (65).

     (2)    A covered firefighter employee shall be eligible for a normal retirement benefit upon having completed twenty (20) years of active service without regard to age.

     (a)    A covered firefighter employee shall be eligible to receive retirement benefits upon reaching the age of sixty-five (65) or upon having completed twenty (20) years of active service, without regard to age.

     (b)    A former covered firefighter 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, the following retirement benefits:

     (1)    To a retiree with less than twenty (20) years of active service, a retirement benefit equal to two (2) per cent of the retiree’s highest average salary multiplied by the number of years of active service.

     (2)    To a retiree who has completed at least twenty (20) years of service, a retirement benefit equal to seventy (70) per cent of the employee’s highest average salary plus two (2) per cent per year for each year of active service in excess of twenty (20) years, up to a maximum benefit of eighty (80) per cent of the highest average salary of the retiree.

     (3)    The retirement benefit shall be increased each year on the anniversary date of the retiree’s retirement by two (2) per cent.

     (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.
    
     (3)    No covered firefighter employee shall be required to continue in covered employment after becoming eligible for a retirement benefit established under this section. Covered employment shall cease at the date that a covered firefighter employee becomes seventy (70); provided, however, that a covered firefighter employee may be continued by the city manager in covered employment past his seventieth birthday, upon his request and with the consent of the fire chief, until “September thirtieth of the year in which he turns seventy (70) years of age, or six (6) months after the attainment of seventy (70) years of age, whichever is less.

     (4)    If the present value of a covered employee’s accrued benefit is three thousand five hundred dollars ($3,500.00) or less at the time of the termination of the covered employee’s employment, the director of finance shall at any time direct that the covered employee’s accrued benefit be paid in the form of a lump-sum cash payment.

     (e)    If, when a covered firefighter’s employment is terminated, 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 firefighter employee would otherwise be eligible to receive under the firefighters’ 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 firefighters’ retirement plan.  The single lump sum payment shall be a complete discharge of all liabilities of the firefighters’ retirement fund to the employee.  This subsection shall not apply to covered firefighter employees who retire on disability.

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

Sec. 18-68. Eligibility for Disability benefits on account of disability or death.

     (a)    A covered firefighter employee who shall contracts a disease or sustains accidental injuries resulting in disability or death while in the actual discharge and performance of the duties of his the employee’s covered employment at some definite time and place, or a covered firefighter employee having completed one continuous year or more of covered employment who shall contracts a disease or sustains accidental injuries resulting in disability or death at any time, shall be entitled to the disability benefit, or his spouse and minor children shall be entitled to the death benefit, or both, in the following cases: set out in this section.  The covered firefighter employee shall be entitled to the disability benefit only while the disease or injury renders the employee unfit for the regular duties of the employee’s covered employment.

     (1)    If such a disease or injury shall disable a covered firefighter employee, physically or mentally, so as to render him unfit for the performance of the regular duties of his covered employment, then for so long as such disability continues he shall be eligible for the disability benefits as hereinafter set forth. Upon the termination of the disability, payment of the benefit shall cease; provided, however, that no disability shall be deemed to have terminated so long as the covered firefighter employee is unable to return to his the employee’s former regular duties as a firefighter solely because of the disability or a residual effect thereof. Upon termination of a disability, no right of automatic reemployment exists. Reemployment shall be governed by the provisions of the city's personnel code. In the event that If a formerly disabled employee ceases to be disabled and is again available for employment with the city, the board or the administrator shall immediately notify the city personnel human resources department of that availability. With the permission of the employee, medical records of the board shall be forwarded which document that availability.

     (2)    If a disease or injury shall cause the death of a covered firefighter employee, then his spouse and minor children, if any, shall be eligible for the death benefit as hereinafter set forth.

     (3)    The disability benefit and the death benefit shall not be payable with respect to any disability or death resulting from suicide or attempted suicide.

     (b)    A covered firefighter employee, disabled as provided for in subsection (a), is eligible to receive a disability benefit equal to fifty (50) per cent of the employee's highest average salary plus ten (10) per cent of that salary for each unmarried child under the age of eighteen (18), who was a dependent of the employee both at the time the employee became entitled to receive disability benefits and during the period for which the benefit is payable, to an amount not to exceed ninety (90) per cent of the employee's highest average salary. Such benefit shall be payable monthly.

      (c)    When a person receiving the disability benefit is eligible for the retirement benefit due to age or service, the person shall receive the greater of (a) the disability benefit being received, or (b) the age or service benefit. Eligibility for retirement due to service shall be based on years of active service plus years of service accrued while on disability retirement up to a maximum of twenty (20) years or actual years of service, whichever is greater. The age or service benefit shall be based on salary at the time of termination of employment and years of active service plus years of service accrued while on disability retirement up to a maximum of twenty (20) years or actual years of service, whichever is greater.

Sec. 18-69. Physical examinations.

     (a)     On and after the effective date of this article, no person shall be employed in the fire department as a salaried firefighter unless he shall first submit to a physical examination by the physical or medical board designated by the administrator, and be certified by such physician or medical board as being physically fit for the performance of the duties in such department. The FRB may advise the city council on rules governing the age, height, weight, and other physical requirements for covered firefighter employees. All such rules initiated by the city council shall be referred to the FRB for comment.

    ( bd)     After the approval of any disability benefit, the administrator shall, from time to time as he deems fit, review the disability of a covered firefighter employee retiree to determine whether or not such the disability continues to exist. Reexamination shall take place at least once each year unless the board shall determine otherwise. The administrator may require any claimant retiree receiving a disability benefit to undergo a medical examination to review the status of the disability. The administrator may request the claimant retiree to undergo an examination with a doctor of the claimant's retiree’s choosing and at his the retiree’s expense or may require a medical examination with a doctor of the administrator's choosing at the FRF's expense of the firefighters’ retirement fund.

    (1)    Any claimant retiree refusing to submit to a medical examination after ten (10) days' written notice from the administrator shall waive and forfeit all rights to benefits from the date of the notice until such time as the claimant retiree submits to the required examination. In the event that If such refusal continues for one calendar year from the date of notice, all rights to any benefits shall immediately cease and the employee's contributions retiree’s benefits shall escheat to the FRF firefighters’ retirement fund.

    (2)     In the event that If the reexamination shows that the disability no longer exists, the right to benefits for disability shall immediately cease. A hearing on the continuance of the disability may be had before the administrator upon the covered firefighter employee's retiree’s written request made within ten (10) days of the administrator's notification.

     (e)     Appeals from decisions of the administrator provided for by these provisions shall be made and heard by the FRB under the rules established by section 18-74(c).

Sec. 18-70. Retirement benefits due to age or service.

     There shall be paid by the administrator to covered firefighter employees eligible for retirement due to age or service, the following benefits:

     (1)    To a covered employee retired after January 4, 1993, on account of age or service, with less than twenty (20) years of active service, a normal retirement benefit equal to two (2) per cent of his highest average salary multiplied by the number of years of active service.

     (2)    To a covered employee retired after October 2, 2000, on account of length of service and who has completed at least twenty (20) years of service, a normal retirement benefit equal to seventy (70) per cent of his highest average salary plus two (2) per cent per year for each year of active service in excess of twenty (20) years, up to a maximum benefit of eighty (80) per cent of the highest average salary of the covered employee.

     (3)    For covered employees retiring after January 4, 1993, the normal retirement benefit shall be increased on the anniversary date of the covered employee's retirement by two (2) per cent of the current retirement benefit.

     (4)    Applications for benefits shall be upon a form designated by the administrator. Upon approval of any application for benefits by the administrator, the applicant shall become entitled to receive payment thereof on the last day of the month immediately following the month in which employment ends.

     (5)    Any claimant denied retirement benefits or any covered firefighter employee aggrieved by a decision of the board granting benefits may appeal the decision to the FRB under the rules established by section 18-74(c).

Sec. 18-71. Disability retirement benefits.

     There shall be paid from the FRF the following benefits:

     (1)    A covered firefighter employee, disabled as provided for in section 18-68, is eligible to receive a disability benefit equal to fifty (50) per cent of the employee's highest average salary plus ten (10) per cent of that salary for each unmarried child under the age of teen (18), who was a dependent of the employee both at the time the employee became entitled to receive disability benefits and during the period for which the benefit is payable, to an amount not to exceed ninety (90) per cent of the employee's highest average salary. Such benefit shall be payable monthly.

     (2)    When a person receiving the disability benefit is eligible for the retirement benefit due to age or service, the person shall receive the greater of (a) the disability benefit being received, or (b) the age or service benefit. Eligibility for retirement due to service shall be based on years of active service plus years of service accrued while on disability retirement up to a maximum of twenty (20) years or actual years of service, whichever is greater. The age or service benefit shall be based on salary at the time of termination of employment and years of active service plus years of service accrued while on disability retirement up to a maximum of twenty (20) years or actual years of service, whichever is greater.

Sec. 18-72. Death benefits.

     (a) Subject to the provisions of subsection (b), Uupon the death of a covered firefighter employee after January 4, 1993, there shall be paid by the administrator to the widowed surviving spouse and unmarried minor children a benefit from the FRF firefighters’ retirement fund, as below described:

     (1)    In the event of the death of a covered firefighter employee under the provisions of section 18-68(2), there shall be paid a death benefit:
    a.(1)    To the widowed surviving spouse in monthly installments equal to fifty (50) per cent of such deceased employee's highest average salary.

     b.(2)    To the lawful guardian of such deceased employee's surviving, unmarried children under the age eighteen (18), a monthly benefit equal to the Social Security benefit to which they would have been entitled, fixed as of the date of application, if the deceased firefighter had been covered by Social Security. If there is no widowed surviving spouse eligible to receive benefits under the provisions of subsection (1) a. herein, then the surviving unmarried children under the age of eighteen (18) shall divide equally one-half of the benefit to which a widowed surviving spouse would have been entitled. The death benefit shall be payable upon the last day of the month immediately following the month in which the death occurred.

     (b)    The surviving spouse and minor children of a covered firefighter employee who dies before completing one continuous year of covered employment shall be entitled to death benefits only if the employee died as a result of contracting a disease or a sustaining accidental injuries while in the actual discharge and performance of the duties of the employee’s covered employment at some definite time and place.

    ( 2c)    In the event of Upon the death of a retiree covered firefighter employee retired after August 21, 1995, under the provisions of this plan, there shall be paid to the widowed surviving spouse a monthly benefit plan equal to one hundred (100) per cent of the deceased employee's retiree’s retirement benefit at the time of his the retiree’s death. Benefits to be paid to widowed spouses of covered firefighter employees retired before August 21, 1995 shall remain at two-thirds of the deceased employee's retirement benefit at the time of his death.

    ( 3d)    Upon the death of a covered firefighter employee or retiree of a retired covered firefighter employee not otherwise entitled to a benefit under the provisions of this section, or of a retiree covered firefighter employee who has retired from active service subsequent to September 30, 1984, there shall be paid a funeral benefit of one thousand dollars ($1,000.00) to be distributed to the next of kin as follows: first, to the widowed surviving spouse; if there is no widowed surviving spouse, then to the children under eighteen (18) of the deceased who were residing with the deceased at the time of his death; if there is no widowed surviving spouse or minor children in the home, then to the other children of the deceased; if there is no widowed surviving spouse, minor children in the home, or other children, then to the mother and father of the deceased. If there is no next of kin as enumerated above, the funeral benefit shall be paid to the executor or administrator personal representative of the estate of the deceased employee, or if no administrator or executor personal representative has been appointed within forty-five (45) days of his death, then to the person who actually paid the funeral and burial expense with respect to such deceased person, upon proof of such payments, or, if proof of such payment is not made within sixty (60) days after such death, then to the mortuary that actually incurred the expense of the funeral and burial of such deceased person.

    ( 4e)    Upon remarriage of the widowed surviving spouse of a covered firefighter employee or retiree, benefits allowed under this section herein shall cease if the widowed surviving spouse was not married to and living with the covered firefighter employee or retiree for a period of at least two (2) years prior to the death of the covered firefighter employee or retiree.

    a.    If the widowed surviving spouse is over forty (40) years of age at the time of remarriage, benefits provided hereunder this section shall continue for the life of the widowed surviving spouse.

    b.    If the widowed surviving spouse is under forty (40) years of age upon remarriage, then benefits to which the spouse is entitled shall continue for a period of ten (10) years after the remarriage.

Sec. 18-73. Workers' Compensation entitlement.

     It is declared to be the policy of the FRF that b Benefits provided under the firefighters’ retirement plan shall not be reduced by the amount of any Workers' Compensation entitlement in the manner set forth by these sections.

Sec. 18-74. Applications for benefits.

    (a)     Applications for benefits to be paid from the retirement fund must be made upon the forms provided by the administrator and contain full information from which the board may determine the eligibility of the applicant. If such application be founded upon disability, full information concerning the nature and extent of the injury must be furnished with the application, and the applicant must likewise submit to examination by a physician designated by the administrator. The administrator may bold hold hearings and take and preserve evidence touching the nature and extent of injuries upon which claims for benefits on account of disability are claimed, and may thereafter approve or deny such application.

    (b)     No more than one monthly payment shall be made at any one time; no payment shall be made more than ten (10) days in advance of the period to which it applies. This provision shall not prevent the lump sum settlement of past liability for a benefits in the event that a decision in the FRB in an appeal therefrom on an application for a benefits is delayed in payment beyond the date upon which such benefits were to begin or were to be paid.

    (c)     Any claimant denied benefits by a decision of the administrator or any claimant or covered firefighter employee otherwise aggrieved by any decision of the administrator may appeal such decision to the FRB firefighters’ retirement board. Such appeal must be in writing and filed within ten (10) days of the date of the administrator's decision. The FRB board shall hold a hearing, take evidence and render a written decision including findings of fact and conclusions of law. Such decision shall be appealable by any person aggrieved by any decision of the FRB firefighters’ retirement board or by the administrator under the provisions of the Missouri Administrative Procedure Act.

Sec. 18-75. Refunds.

    (a)      In the event of the termination, voluntary or involuntary, of When the covered employment of a covered firefighter employee ends, such covered the employee shall, at his request, have the right to withdraw in a lump sum from the fund contributions which he shall have the employee made,. tThe lump sum withdrawl shall include interest on the contribution thereon at the annual investment rate of return of the fund as determined by the annual actuarial report for each year in which contributions were made by the covered employee, compounded annually from the last day of the calendar year in which such covered employee contributions are made to the date of withdrawal. Withdrawal of contributions by a covered firefighter employee under this division shall terminate all rights to benefits unless reinstated as herein provided. In the event that such contributions are not withdrawn, retirement benefits due to age or service under section 18-70 shall continue in accordance with the terms thereof, but all rights to other benefits under this article shall terminate. All interest calculations made for the purpose of this subsection on total contributions of an employee shall be computed from July 16, 1979, the original effective date of this provision.

    (b)     A covered firefighter employee who has withdrawn his the contributions made by the employee with interest under the provisions of subsection (a) hereof or received a lump-sum distribution under section 18-67 (4f) may, in the event of reemployment as a covered employee, reinstate benefits thereby forfeited within twelve (12) months from the date of his reemployment by repaying to the fund the contributions and interest withdrawn from the fund or the lump-sum distribution, plus interest on said the sum in the amount of the annual investment rate of return of the fund as determined by the annual actuarial report for each year that the contribution remained removed withdrawn from the fund City, compounded annually from the date said the sum was withdrawn or lump-sum distribution was made to the date of repayment. The time which a covered firefighter is absent from his covered employment shall not be deemed to be reinstated by the repayment of prior contributions.

    (c)      In the event that If the covered employment of a covered firefighter employee is terminated by reason of the firefighter's employee’s death and the firefighter employee is not entitled to plan benefits other than the death funeral benefit authorized by section 18-72(3d), the contributions of and any amounts contributed the employee to this plan and any amounts contributed to this plan and picked up by the city under code section 414(h) for the deceased firefighter employee shall be refunded or distributed, upon request, to the estate of the deceased firefighter employee. Interest on the contributions or distributions so refunded shall be calculated as above.

Sec. 18-76. Benefits not assignable or subject to execution.

    The benefits payable from the FRF, as herein provided, whether before or after they are ordered paid by the administrator, or after appeal by the FRB, firefighters’ retirement fund shall not be assignable or subject to counter-claim, recoupment or set off,. nor shall they Except for qualified domestic relations orders, benefits payable from the firefighters’ retirement fund shall not be subject to assessment, garnishment, execution, injunction, or any other decree, order, process or proceeding in any court for the payment of any debt of any beneficiary, and the sum shall be held and distributed solely for the purpose of this division and for no other purpose whatsoever. This provision shall neither prohibit nor not prevent the FRB fire retirement board from pursuing a covered firefighter employee retiree or other beneficiary of the FRP firefighters’ retirement plan for recovery of benefits erroneously paid or to recover benefits paid due to fraud, duress or the concealment of any material fact necessary to properly process a claim for benefits.

Sec. 18-77. Miscalculation of benefits, payment of interest on under or overpayment.

     After September 7, 1993, w Whenever a miscalculation of benefits due a retiree or beneficiary which results in an underpayment is discovered, interest on the underpayment shall be paid to the retiree or beneficiary at a rate equal to the annual investment rate of return on the firefighters' retirement fund as determined by the annual actuarial statement for each year of the underpayment. Whenever an overpayment is discovered, the retiree or beneficiary shall repay the amount erroneously paid in excess of the benefit due him plus interest for the time of overpayment equal to the annual investment rate of return on the fund as determined by the annual actuarial statement for each year of overpayment. If the amount of overpayment and interest thereon is greater than one (1) monthly benefit payment, repayment shall be made to the fund by deduction from the monthly retirement benefit a single life monthly annuity which has been determined from the value of the amount of overpayment and interest thereon using the mortality tables and accepted actuarial standards.

Sec. 18-78.  Forfeitures.

     Forfeitures shall not be applied to increase the benefits any employee would otherwise receive under the firefighters’ retirement plan.

Sec. 18-79.  Compensation limits.  

     The annual compensation of each covered firefighter employee taken into account under the firefighters’ retirement plan shall not exceed the compensation limits of section 401(a)(17) of the code, as adjusted for inflation.

Sec. 18-80.  Direct transfer of eligible rollover distributions; rollover notice.

     (a)    To the extent required by section 401(a)(31) of the code, if the distributee of any eligible rollover distribution elects to have the distribution paid directly to an eligible retirement plan and specifies the eligible retirement plan to which the distribution is to be paid, the distribution shall be made in the form of a direct trustee to trustee transfer to the specified eligible retirement plan.

     (b)    The plan administrator shall give covered firefighter employees an understandable written explanation of rollover rules within a reasonable period before making an eligible rollover distribution.

    SECTION 2.  This ordinance shall be in full force and effect from and after its passage.

    PASSED this 6th day of July, 2004.