Chapter 4.32 — PENSION SYSTEMS--COST OF LIVING ADJUSTMENT

Sections: 4.32.010 Annual adjustment authorized--Computation. 4.32.020 Fund--Created--Use restrictions. 4.32.030 Contributions--Determination of amount. 4.32.040 Contributions--Returned to member and City when. 4.32.050 Fund--Disposition and investment of monies. 4.32.060 Transfer of funds authorized when. 4.32.070 Special cost of living adjustment.

• For Fire Department, see Ch. 2.65 of this code; for Police Department, see Ch. 2.64 of this code.

Pensions paid members of the fire and police pension systems created by Ordinance 2188-NS, as amended, Ordinance 2250-NS, as amended, and Ordinance 3558-NS, codified in Chapters 4.20, 4.24 and 4.28 respectively, as amended, and which pensions are fixed and do not fluctuate with increases or decreases in salaries attached to ranks, shall be annually adjusted for changes in the cost of living in the following manner:

A. The amount of the monthly pension payment originally awarded shall be the monthly base pension, and the calendar year in which the pension payment originally commenced shall be the base year. The cost of living adjustment shall be the monthly base pension multiplied by an adjustment factor which is equal to the ratio obtained by dividing the California Consumer Price Index for the immediately preceding calendar year by the California Consumer Price Index for the base year. Such cost of living adjustment shall be subject to all of the conditions and limitations set forth in subsections B through I, inclusive, of this section.

B. No adjustment shall be made during the first calendar year following the base year.

C. Subject to the limitation set forth in B above, the adjustment shall be made on April 1st of each year, and the monthly base pension, as adjusted, shall be the monthly pension payment during the succeeding twelve-month period (April 1st through March 31st).

D. No adjustment shall be made for any year for which the adjustment is less than one percent of the monthly base pension, and the adjustment for any year shall not exceed three percent compounded annually of the monthly base pension.

E. No monthly pension payment in any year shall be less than the monthly base pension.

F. For pensioners previously granted cost of living adjustments under Section 4.20.200, the monthly base pension shall be the monthly payment originally awarded before any such cost of living adjustment, and the base year shall be the calendar year in which such pension payment originally commenced; the pension payment for such pensioners shall be adjusted commencing April 1, 1971 in accordance with the provisions of this section, except that for the initial adjustment in 1971 the limitation set forth in subsection D of this section shall not apply.

G. The pension payment for pensioner Elmer A. Wilen, pensioned on November 8, 1967 under Ordinance 2250-NS, shall be adjusted commencing April 1, 1971 in accordance with the provisions of this section, except that for the initial adjustment in 1971 the limitation set forth in subsection D of this section shall not apply.

H. Upon the death of any person receiving a pension under Sections 4.20.070 through 4.20.090 or 4.20.140; or 4.24.070 through 4.24.090 or 4.24.130, which pension is subject to the automatic cost of living adjustment provided for in this section, or upon the death of any person receiving a pension under Sections 4.28.080, 4.28.090, 4.28.160 or 4.28.170, the person or persons entitled to receive a pension as a result of such death as provided in Section 4.28.100, or Section 4.28.150, shall be entitled to an initial monthly pension payment based upon the monthly base pension of the deceased pensioner as adjusted at the time of their death. Cost of living adjustments for such person or persons shall be made commencing with the April 1st subsequent to such death and shall be determined in accordance with the provisions of this section, using the monthly pension payment originally awarded to the deceased pensioner modified to reflect the applicable percentage of salary payable to such person or persons as provided in Section 4.20.100, 4.24.100 or 4.28.150, as the case may be, as the monthly base pension and the calendar year in which the pension payment to the deceased pensioner originally commenced as the base year.

I. For the purposes of this section. "California Consumer Price Index" means the index stated for the San Francisco-Oakland Area published by the Bureau of Labor Statistics of the United States Department of Labor. Should the reference base of said Consumer Price Index (presently 1957-59 = 100) be changed, said index used to determine the California Consumer Price Index for the purposes of this section will be the index converted to the new base by standard statistical methods. (Ord. 4624-NS § 1, 1973; Ord. 4536-NS § 1, 1971; Ord. 4490-NS § 1, 1970)

There is created and established a fund to be known as the "fire and police pension cost of living fund," which fund shall be established, maintained and administered as herein provided. The fund shall be kept inviolate, and no portion thereof shall be used for any purpose other than those specified in this chapter. (Ord. 4490-NS § 2, 1970)

A. The amount of contribution to the fund shall be determined by actuarial evaluation, one-half of such amount to be paid by the members of the fire and police pension systems of the City to whom the cost of living benefit is applicable and one-half of such amount by the City. The contribution to be paid by each individual member shall be made by deductions from each payroll, commencing with the payroll for the period January 1, 1971--January 15, 1971; the contributions of the City will be made annually, the first of such annual contributions by the City to be made for the 1970-71 fiscal year.

B. Actuarial valuations of the cost of the benefits hereunder shall periodically be made; the first such valuation shall be made on or before January 1, 1971, and such valuations shall be thereafter made whenever ordered by the Fire and Police Pension Boards of the City, but in any event at least once every five years. After each actuarial valuation said boards shall redetermine and reestablish the rates of contribution for the members and the City, based upon such actuarial valuation which has been approved and adopted by the boards.

C. The requirements for payment of contributions by members on leave and for repayment of withdrawn contributions by persons reentering the service shall be as set forth in Sections 4.28.300 and 4.28.320, respectively, of Chapter 4.28.

D. In the event of withdrawal from and reentry to the pension system, the requirement for payment of contributions during such period of withdrawal shall be as set forth in Section 4.28.310 of this code. (Ord. 4490-NS § 3, 1970)

In the event that any member of the fire and police pension systems of the City to whom the cost of living benefit is applicable shall become separated from the service voluntarily or involuntarily for any reason whatsoever, and such member or their spouse, surviving spouse, children, dependent parents or beneficiaries, shall not be entitled to any pension benefits, then all moneys paid into the police and fire pension cost of living fund by such member shall be returned to them or their beneficiaries without interest.

Whenever a return of contributions is made pursuant to this section, the City shall receive a return of contributions in a like amount which shall be taken by the City as a credit against its next annual payment. In the event that a member who has withdrawn their contributions pursuant to this section reenters the system and pays back to the fund such withdrawn contributions, the City shall pay a like sum to the fund. (Ord. 4490-NS § 4, 1970)

Deposit and investment of moneys in the fire and police pension cost of living fund shall be in accordance with and subject to the limitations and requirements of the provisions of Section 4.28.330 of this code. (Ord. 4490-NS § 5, 1970)

In the event that any member of the fire and police pension systems of the City to whom the cost of living benefit is applicable shall, at an election held for that purpose, elect to transfer to the California Public Employees Retirement System, then all moneys paid into the fire and police pension cost of living fund by such member shall be transferred to the Board Administration, California Public Employees Retirement System. (Ord. 4624-NS § 2, 1973; Ord. 4490-NS § 7, 1970)

All monthly pension payments made pursuant to Berkeley Municipal Code, Chapters 4.20, 4.24, and 4.28, which payments do not fluctuate with increases or decreases in salaries attached to ranks, shall, retroactive to the seventh monthly pension period in the year 1985, and thereafter until amendment or recession of this chapter, be increased:

A. For each retired member by an amount equalling fifteen percent of the pension payment received by said member for the month of June 1985;

B. For each retired member’s survivor by an amount equalling fifteen percent of the pension payment received by said survivor for the month of June 1985, or if said survivor was not then entitled to receive a pension payment under said chapters, fifteen percent of the pension payment said survivor would have received in June 1985 if the survivor’s retired member had died prior to that time;

C. For each retired member by an amount equalling ten percent of the pension payment received by said member for the month of June 1986;

D. For each retired member’s survivor by an amount equalling ten percent of the pension payment received by said survivor for the month of June 1986;

E. For each retired member by an amount equalling five percent of the pension payment received by said member for the month of June 1987;

F. For each retired member by an amount equaling five percent of the pension payment received by said survivor for the month of June 1987;

G. For each retired member by an amount equaling four percent of the pension payment received by said member for the month of June 1989;

H. For each retired member’s survivor by an amount equaling four percent of the pension payment received by said survivor for the month of June 1989. (Ord. 5965-NS § 1, 1990; Ord. 5696-NS § 1, 1985; Ord. 5520-NS § 1, 1983)