Article XX — OAKLAND MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM

Retirement Of Aged And Disabled City Employees

Section 2000. The City Council, by ordinance, for a four-fifths vote, and under the conditions set forth herein, shall establish a retirement system and provide death benefits for persons employed by the City of Oakland who are not eligible for membership in any other City pension system; provided, that the system herein provided for shall not apply to elective officers or to members of boards or commissions appointed by the Mayor, by a Commissioner, or by the City Council.

The Council, subject to the provisions of Section 2013 of this Charter, may also by similar vote amend the system so adopted.

The words "employees" or "persons employed," wherever used in this section, shall include persons generally classed as "officers" or "officials." (Am—ended by: Stats. 1927.)

Board Of Administration Of Retirement Fund Definitions

Section 2001. The following words and phrases as used in this Article, unless a different meaning is plainly required by the context, shall have the following meaning:

"Retirement allowance," or "allowance," shall mean equal monthly payments, beginning to accrue upon the date of retirement, and continuing for life unless a different term of payment is definitely provided by the context.

"Compensation," as distinguished from benefits under the Labor Code of the State of California, shall mean all remuneration, whether in cash or by other allowances made by the City for service qualifying for credit under the Retirement System; provided that when the compensation of a member is a factor in any computation to be made under this System, there shall be excluded from such computation any compensation based on overtime put in by a member. For the purpose of this system, overtime is the aggregate service performed by an employee as a member in all positions, in excess of the hours of work considered normal for employees on a full-time basis and for which monetary compensation is paid.

"Compensation earnable" shall mean the monthly compensation as determined by the Board of Administration which would have been earned by the member had they worked, throughout the period under consideration, the average time ordinarily worked by persons in the same grade or class of positions as the positions held by them during such period and at the rate of pay attached to such positions. The computation for any absence of a member shall be based on the compensation earnable by them at the beginning of the absence, and that for time prior to entering the employ of the City, shall be based on the compensation earnable by them in the position first held by them in such employ.

"Benefit" shall include "allowance," "retirement allowance," and "death benefit."

"Accumulated normal contributions" shall mean the sum of all contributions plus interest.

"Accumulated additional contributions" shall mean the sum of all additional contributions plus interest.

"Accumulated contributions" shall mean accumulated normal contributions plus accumulated additional contributions.

"Final compensation" means the highest average compensation earnable by a member during any period of three consecutive years of service; compensation earnable to be computed as described in the definition of "compensation earnable." For the purpose of this paragraph, periods of service separated by breaks in service may be aggregated to constitute a period of three consecutive years, if the periods of service are consecutive except for such breaks. If a break in service did not exceed six months in duration, time included in the break and compensation earnable during such time shall be included in the computation of final compensation. If a break in service exceeded six months in duration, the first six months thereof and the compensation earnable during those six months shall be included in the computation of final compensation, but time included in the break which is in excess of six months and the compensation earnable during such excess time shall be excluded in the computation of final compensation.

"Member" means any officer or employee who is included in the membership of this Retirement System.

"Retirement System" or "System" shall mean Oakland Municipal Employees' Retirement System as heretofore created under authority granted in this Section, said Retirement System being hereby continued in effect.

"Board" or "Retirement Board" shall mean board of administration as created in this Section.

Words used in the masculine gender shall include the feminine and neuter genders, and singular numbers shall include the plural and the plural the singular.

"Interest" shall mean interest at the rate adopted by the Retirement Board.

"Service" shall mean any service rendered prior to July 1, 1939, as an employee of the City of Oakland which for the purpose of this System is designated as "prior service"; and any service rendered after June 30, 1939, in a status requisite for membership in the Retirement System, but only prior service and service rendered as a member of the Retirement System shall be credited under the System.

This Section shall become effective on the first day of the month next following approval by the Legislature and filing with the Secretary of State.

(Amended by: Stats. 1971.)

(Res. No. 89280, 6-21-2022)

Board Of Administration Of Retirement Fund

Section 2002. A Board of Administration of said retirement system is hereby created consisting of the City Treasurer, the Auditor, three (3) members elected from the active, retired and deferred membership of the retirement system, a resident representative of a life insurance company and the officer of a local bank. Notwithstanding the foregoing, in the event that less than three Board members are elected from the active, retired and deferred membership of the retirement system, such membership may elect surviving spouses

and beneficiaries of retirement system members to the vacant seats designated for active, retired and deferred members of the retirement system.

The Council, shall, upon the recommendation by the Mayor, appoint the resident representative of a life insurance company and the officer of a local bank hereinbefore referred to. Persons holding membership on said Board upon the adoption of this amendment shall continue to serve the terms to which they were elected or appointed.

The City Treasurer and Auditor shall be members of the Board ex-officio.

All members shall serve without compensation.

(Amended by: Stats. 1927, 1931, 1974, March 1996.)

(Res. No. 89280, 6-21-2022)

Who May Be Retired—Retirement Benefits

Section 2003. Any member who completes at least twenty years of service in the aggregate with which they are entitled to be credited under the System, and attains the age of fifty-two years, or completes at least 10 years of such service and attains the age of sixty years, may retire for service at their option. Members shall be retired for service on the first day of the month next following the attainment by them of the age of seventy years, regardless of length of service. Upon retirement for service after the effective date hereof, a member shall receive a service retirement allowance equal to the fraction of one-sixtieth of their final compensation, set forth opposite their age at retirement, taken and applied by interpolation of said fractions to the preceding completed quarter year of age, in the following table in the column applicable to their sex, multiplied by the number of years of service with which they are entitled to be credited:

Age at Retirement Fraction Men Fraction Women

52 .6120636 .6352571

53 .6477249 .6692856

54 .6862515 .7059143

55 .7279876 .7454909

56 .7732616 .7882855

57 .8225384 .8346370

58 .8764127 .8850589

59 .9354005 .9399551

60 1.0000000 1.0000000

61 1.0564648 1.0569430

62 1.1156446 1.1169496

63 1.1782066 1.1807488

64 1.2444586 1.2487750

65 & over 1.3147929 1.3216755

The fractions herein set forth at ages other than age 60 are based on the interest rate and mortality tables used under the Retirement System on the effective date hereof and shall be adjusted by the Board in accordance with such interest and mortality tables as the Board may adopt thereafter. The Board shall declare from time to time the rate of interest at which interest shall be credited on contributions of members and the City, and the rate of interest which shall be used in determining actuarial equivalents, which rate shall not exceed a rate one-fourth of a percentage point below. the net rate currently earned on the assets of the Retirement Fund.

The Retirement System also shall provide for death benefits for members of the System. The City Council also shall provide that a member retiring may elect, before the first payment of the retirement allowance is made, to receive the actuarial equivalent of their allowance in a lesser allowance to be received by them throughout their life and in other benefits payable after their death to another person, including an allowance throughout the life of such person.

For the purpose of this Section, the qualifying ten-year periods of service shall be accumulated during any continuous periods of not more than twelve years, provided any absence from or return to actual service during such twelve-year periods is approved by the Civil Service Board in the case of persons in the classified civil service or by the City Council in the case of other persons within the Retirement System.

This section shall become effective on the first day of the month next following approval by the Legislature and filing with the Secretary of State.

(Amended by: Stats. 1971.)

(Res. No. 89280, 6-21-2022)

Section 2004. Notwithstanding the provisions of Section 2003 to the contrary, the provisions of this Section shall apply to the Retirement System. The City Council also shall provide that a member retiring may elect before the first payment of their retirement allowance is made, and that a member may elect at any time before retirement, but only after qualification for service retirement, as provided in Section 2010 to receive the actuarial equivalent of the portion or all of their allowance, as the case may be, which would not be continued automatically regardless of dependents then living, in a lesser allowance to be received by them throughout their life and in other benefits payable after their death to another person, including an allowance throughout the life of such person. The amounts payable under options two (2) or three (3) as stated in Ordinance No. 713 C.M.S., which were elected prior to the effective date of Section 2007 by a person who is living on that date, shall be adjusted to amounts calculated as if the provisions of that Section had been in effect at the date of their retirement, but no adjustment shall be made because of payments made prior to such effective date.

This Section shall become effective on the first day of the month next following approval by the Legislature and filing with the Secretary of State.

(Amended by: Stats. 1971.)

(Res. No. 89280, 6-21-2022)

Section 2004.5. The Retirement System also shall provide for retirement for disability after five years of service credited under the System, and before age 60, subject to the following conditions:

It is the intention of this section that allowances granted to or on account of members of the System for injury, illness or death incurred in the performance of duty shall not be cumulative with benefits under the Labor Code of California awarded as the result of the same injury, illness or death. If any member of the System or dependent receives compensation under the Labor Code for disability or death arising out of and in the course of the performance of duty, any payment on account thereof shall be applied as a credit and set-off against any payment on account of salary granted to such member under Section 8.04 of the Laws and Rules of the Civil Service Board; or retirement allowances or other benefit granted to or on account of such member under the provisions of this article as follows:

(a)

If the amount is paid in one sum or in installments equal to or greater than such salary, retirement allowance, or other benefit, such member or dependent shall not receive any salary, retirement allowance or other benefit until the total amount of the salary, retirement allowance, or other benefit which would otherwise be payable equals the total amount received under the Labor Code.

(b)

If the amount is paid in installments less than such salary, retirement allowance or other benefit, the salary, retirement allowance or other benefit shall be reduced so that the total of salary, retirement allowance or other benefit plus the amounts received under the Labor Code will equal the salary, retirement allowance, or other benefit which would otherwise be due.

(c)

In either case, any award specifically granted for medical, surgical or hospital expenses shall not reduce the salary, retirement allowance or other benefit.

No disability retirement benefits shall be paid under this section on the basis of an award by the Workers' Compensation Appeals Board of the State of California.

This section shall become effective on the first day of the month next following approval by the Legislature and filing with the Secretary of State.

(Added by: Stats. 1971.)

(Res. No. 89280, 6-21-2022)

Member's And City's Contributions

Section 2005. Contributions to the Retirement System, required of members and the City, shall be as follows:

(a)

The normal rate of contribution of each member as determined by the actuary and approved by the Board and to be effective on the effective date hereof shall be based on their nearest age at the effective date of their membership in the Retirement System, and if effective from the effective date of their membership, shall be such as, on the average for such member, will provide, assuming service without interruption from said effective date until retirement, one-half of the portion of the service retirement allowance which is based on such service, and to which they would be entitled if retired at age 60, but not including automatic continuance to dependents. The actual amount of annuity including such continuance, however, provided for a member upon retirement, shall be the actuarial equivalent of their accumulated contributions. The normal rate established for age 59 shall be the rate for any member who has attained a greater age before entrance into the System, and that established for age twenty shall be the rate for any member who enters the System at a lesser age. Members' normal rates of contributions shall be changed by the Board on the basis of periodical actuarial valuation and investigation provided by the Charter. No adjustment shall be included in members' normal rates because of time during which they have contributed at different rates.

This amendment shall become effective on July 1, 1959, or the first day of the month next following approval by the Legislature, whichever is later.

(Amended by: Stats. 1959.)

(Res. No. 89280, 6-21-2022)

(b)

There shall be deducted from each payment of compensation made to a member, a sum determined by applying the members normal rate of contribution to such compensation. The sum so deducted shall be paid forthwith to the Retirement System, and shall be credited to the individual account of the member from whose compensation it was deducted, and the total of said contributions, together with interest credited thereon, shall be applied to provide part of the retirement allowance granted to said members; or said total of said contributions, together with interest credited thereon shall be paid to said member upon termination of their employment by the City prior to retirement, or to their estate or beneficiary upon their death, in the manner provided by the City Council. The City Council, however, shall provide for election by members who are entitled to be credited with at least 5 years of service and whose employment is terminated by cause other than death or retirement, to allow their accumulated contributions to remain in the Retirement fund, to continue as members of the System and to be subject to the same age and disability requirements as apply to other members for service or disability retirement, but they shall not be subject to a minimum service requirement, and the minimum retirement allowances shall not apply to them, unless they meet such minimum service requirement. Subject to rules prescribed by the Board, any member may elect to make contributions in excess of their contributions herein required, for the purpose of providing additional benefits, and benefits provided hereunder for such member shall be exclusive of such additional benefits. The exercise of this privilege by a member shall not require the City to make any contributions. Additional contributions shall be administered in the same manner as normal contributions.

This section shall become effective on the first day of the month next following approval by the Legislature and filing with the Secretary of State.

(Amended by: Stats. 1971.)

(Res. No. 89280, 6-21-2022)

This section shall become effective on the first day of the month next following approval by the Legislature and filing with the Secretary of State.

(Amended by: Stats. 1971.)

(c)

Contributions deducted prior to the effective date hereof, from compensation of members of the System, and standing with interest thereon, to the credit of such members on the records of the Retirement System on said date, shall continue to be credited to the individual accounts of said members and shall be combined with and administered in all respects in the same manner as the contributions deducted after said date.

(d)

The total contributions, with interest thereon, made by or charged against the City and standing to its credit, on the effective date hereof, in the accounts of the Retirement System, shall be applied to provide part of the benefits under this System.

(e)

The City shall contribute to the Retirement System such amounts as may be necessary, when added to the contributions referred to in the preceding paragraphs of this Article, to provide the benefits payable under the System. Such contributions of the City to provide the portion of the benefits hereunder which shall be based on service rendered prior to July 1, 1939, shall not be less during any fiscal year than the amount of such benefits paid during said year. Such contributions of the City to provide the portion of the benefits hereunder which shall be based on service rendered by respective members on and after July 1, 1939, shall be made in annual installments, and the installment to be paid in any year shall be determined by the application of a percentage to the total compensation paid to members during said year. Said percentage shall be the ratio of the value at the date of the periodical actuarial valuation and investigation into the experience under the System as provided by the Charter, of the benefits thereafter to be paid from contributions of the City, less the amount of such contributions, and plus accumulated interest thereon, then held by said System to provide said benefits on account of Service rendered by respective members on and after July 1, 1939, to the value at said date of compensation thereafter payable to said members. Said values shall be determined by the actuary, who shall take into account the interest which shall be earned on said contributions, the compensation experience of members, and the probabilities of separation by all causes, of members from service before retirement and of death after retirement. Said percentage shall be changed by the Board on the basis of said values determined in said periodical actuarial valuation and investigation into the experience under the System. The initial percentage to be used under this Section shall be six and eighty-four hundredths per cent (6.84%) until redetermined by the Board of Administration on the basis of the periodical investigation and actuarial valuation under the System.

This section shall become effective on July 1, 1953, or the 1st day of the month next following approval by the Legislature, whichever is later.

(Amended by: Stats. 1927, 1953.)

Absence By Reason of War or Other National Emergency

Section 2006. Absence of a member of the Retirement System by reason of service with the armed forces of the United States, either during a war involving the United States as a belligerent or in any other National emergency and for six months thereafter and who is not dishonorably discharged or released therefrom, shall be credited to such member as service for the City for retirement purposes.

While so absent without compensation from the City, the City shall contribute, for and on behalf of each member absent by reason of such service, amounts equal to the contributions which would have been made by such member and the City to the Retirement System if they had not been so absent. Any such member who contributed to the Retirement System under the provisions of Section 33 (4-½)* of this Charter entitled "Contributions by Members in Military Service" before its repeal, shall have such contributions refunded or, at their election credited to their account as additional contributions, but such additional contributions when credited to their account shall not place on the City any additional financial obligation.

The contributions made by the City pursuant to the provisions of this Section shall be made available only for the purpose of retirement, and if employment by the City of any such member be discontinued before retirement, they shall be entitled to withdraw only that portion of their accumulated contributions actually made by him, or should they die before retirement, any death benefit payable by reason of their death shall include only that portion of their accumulated contributions actually made by them.

This Section shall be retroactively applied to extend its benefits to such members of the Retirement System whose absence commenced prior to its effective date.

(Added by: Stats. 1947.)

(Res. No. 89280, 6-21-2022)

* This reference is to the Section or Article so designated in the former Charter.

Continuation of Retirement Allowances After Death

Section 2007. Upon the death of a person after their retirement, including persons receiving allowances on the effective date of this Section, one-half of their retirement allowance as it was at death, before modification under an option shall be continued throughout life or until the remarriage of the surviving spouse if the remarriage occurs prior to January 1, 1985. If there be no surviving spouse entitled to an allowance hereunder, or if the surviving spouse so entitled dies before every child of such deceased member attains the age of eighteen years, then the allowance which the surviving spouse would have received, or which the surviving spouse would have received had they lived shall be paid to a child or children under said age, collectively, to continue until every such child dies or attains said age, provided that no child shall receive any allowance after marrying or attaining the age of eighteen years. Should said member leave no surviving spouse and no children under the age of eighteen years, but leave a parent or parents dependent upon them for support, the parents so dependent shall collectively receive a monthly allowance equal to that which a surviving spouse otherwise would have received, during such dependency. No allowance, however, shall be paid under this section to a surviving spouse, unless they were married to

the member at least one year prior to retirement. Contributions necessary for the payment of the continuance of one-half of allowances of persons who are receiving allowances on the effective date of this Section, shall be provided from the reserves held by the Retirement System on account of active members, the necessary amount being transferred upon said effective date from said reserves to the reserves held by the Retirement System to meet obligations on account of benefits that have been granted.

This Section shall become effective on the first day of the month next following approval by the Legislature.

(Added by: Stats. 1959. Amended by: Stats. June 3, 1986.)

(Res. No. 89280, 6-21-2022)

Allowance Upon Death After Qualification For But Before Service Retirement

Section 2008. Upon the death before retirement of a member who is qualified for service retirement under Section 2003 by attainment of the age of at least fifty-two (52) years with credit for twenty (20) or more years of service, or at least sixty (60) years with credit for ten (10) or more years of service, and on account of whose death the benefit provided for in accordance with such Section, is otherwise payable, a monthly allowance equal to one-half of the monthly retirement allowance prior to modification under options provided for in accordance with such Section which the member would have been entitled to receive if they had retired from service on the date of their death, shall be payable:

(a)

To the member's surviving spouse who was receiving at least one-half of their support from the member at the time of the member's death, who was married to such member prior to the occurrence of the injury or onset of the illness which resulted in death; or

(b)

If there is no qualifying spouse, or if such spouse dies or remarries, to unmarried children, including stepchildren, of the member, who are under 18 years of age.

The allowance payable under this Section shall be in lieu of the death benefit provided for in accordance with Section 2003 except for the accumulated additional contributions included herein, but a person qualifying for the allowance or such person's guardian may elect, before the first payment on account of it, to receive such death benefit in lieu of the allowance. The member's accumulated additional contributions shall be paid to the person qualifying for the allowance, and the remainder of the accumulated contributions of the member shall be applied toward providing the allowance, and the balance not so provided shall be payable from contributions of the City.

The allowance shall begin to accrue on the day next following the date of death of the member, and payments to the surviving spouse shall continue only until death or remarriage if remarriage occurs prior to January 1, 1985, and to or on account of children with respect to each child, until the attainment of age 18, death or prior marriage. If payment of the allowance provided by this Section is stopped because of remarriage of the surviving spouse prior to January 1, 1985, or the attainment of the age of 18 years by, or the death or marriage of, a child, before the sum of the monthly payments made equals the death benefit provided for in accordance with Section 2003, exclusive of accumulated additional contributions, a lump

sum equal to the difference shall be paid to the remarried spouse who remarried prior to January 1, 1985, or if there is no such spouse, to the surviving children of the member, share and share alike.

This Section shall become effective on the first day of the month next following approval of the Legislature.

(Added by: Stats. 1959. Amended by: Stats. June 3, 1986.)

(Res. No. 89280, 6-21-2022)

Withdrawals

Section 2009. Should any member discontinue to be an employee of the City, except by death or retirement, they shall be paid, under such rules as may be established by ordinance of the Council, all of their accumulated contributions, together with interest thereon at rates to be set by the Council upon the recommendation of the Board of Administration.

The Council may also, by ordinance, define the rights of former employees or of former members of the retirement system upon their re-entry into the City service.

(Amended by: Stats. 1927.)

Irrevocable Option Election After Qualification For But Before Service Retirement

Section 2010. Any member who has qualified for service retirement under Section 2003 by attainment of the age of at least fifty-two (52) years, with credit for twenty (20) or more years of City service, or at least sixty (60) years, with credit for ten (10) or more years of City service, may elect as provided in Section 2004 and without right or revocation or change after approval of the election by the Retirement Board, to receive the actuarial equivalent as of the date of their retirement of the retirement allowance payable to them when and if they retire for service or disability, in a reduced retirement allowance according to the provisions of either Option 2 or Option 3, as stated in Ordinance No. 713 C.M.S. If such a member at the time of making the election has a living spouse who would qualify for an allowance under Section 2008, the election under this Section shall be invalid and of no effect unless and until the consent of such spouse to it is filed at the office of the Retirement System.

Upon such member's death at least thirty (30) days after the date upon which the election is received in the office of the Retirement System, and prior to the effective date of their retirement, the person who was nominated by them under the option they elected and who survives them, shall receive an allowance calculated under such option, upon the assumption that such member retired for service on the date of their death and died immediately thereafter. The payment of such allowance to such person shall be in lieu of both the death benefit provided for in accordance with Section 2004, and the allowance provided by Section 2008, and no such death benefit or such allowance shall be paid on account of such death to any person or beneficiary, regardless of whether the person nominated under the option elected survives the member.

If such member subsequently retires for service or disability, they shall receive, regardless of whether the person nominated by them under the option elected is then living, a reduced allowance according to the provisions of Section 2003 and the option elected. The amount of the allowance prior to optional modification shall be calculated on the basis of the member's age at death before retirement, or at

retirement as the case may be, but the reduction of such allowance under the option elected shall be based on the ages of such member and the person nominated by them under such option at the effective date of such election.

This Section shall become effective on July 1, 1959, or the first day of the month next following approval by the Legislature, whichever is later.

(Added by: Stats. 1959.)

(Res. No. 89280, 6-21-2022)

Allowances—Oakland Municipal Employee's Retirement System

Section 2011. Every retirement allowance payable by the Oakland Municipal Employees' Retirement System, for time commencing on the effective date of this section, hereby designated as the first day of July, 1953, or the first day of the month next following its approval by the Legislature, whichever is later, to or on account of any person who was retired prior to February 1, 1950, as a member of said system, is hereby increased by the amount of $25.00 per month, provided such member was entitled to be credited under the Retirement System with at least twenty years of service upon which the retirement allowance was determined at retirement. If the member was entitled to be credited with less than twenty years of such service, said monthly increase shall be an amount which shall bear the same ratio to $25.00 that the service with which the member was entitled to be credited at the effective date of retirement bears to twenty years. This section does not give any member retired prior to the effective date hereof, or their successors in interest, any claim against the City for any increase in any retirement allowance paid or payable for time prior to said effective date. If a member elected at retirement to have their retirement allowance modified under Options 2 or 3, provided by Ordinance 713 C.M.S. and if their beneficiary is living on said effective date, the increase in their allowance shall be modified under the option elected at retirement, and on the basis of current ages, mortality tables and interest rate. If the beneficiary of such a person who elected at retirement to have their allowance modified under one of said options is not living on said effective date and the beneficiary is receiving the modified retirement allowance, then the allowance shall be increased as provided herein for persons who did not elect an option.

The increase in the retirement allowance shall be apportioned between service rendered prior to the entry of the member into the Retirement System and service rendered as a member, in the same proportion that such prior and current service, respectively, bears to the total service credited at retirement. Contributions to the Retirement System necessary for the payment of the portion of the increases in the retirement allowances provided in this Section, which are based on service as members, shall be provided from reserves held by the Retirement System to meet the obligations on account of benefits that have been granted and on account of prior service of members. If, however, the City's contributions on account of service rendered as members has been changed from an amount equal to members' contributions to an amount derived by applying a percentage to earned compensation of members, contributions to the Retirement System necessary for the payment of the increases in the retirement allowances provided in this section, shall be provided, with respect to the portion of the increase based on service rendered as members, from the reserves held by the Retirement System on account of miscellaneous members, the necessary amount being transferred upon said effective date, from said reserves to the reserves held by the Retirement System to meet the obligations on account of benefits that have been granted and on account of prior service of members. The contribution then being required of the City, as a percentage of salaries of

persons who are members of the system, shall be increased by such increase in the percentage as is determined by the actuary as necessary to replace the reserves to be transferred. Contributions to the Retirement System necessary for the payment of the portion of said increases based on service rendered prior to membership in the Retirement System, shall be paid to the System by the City in annual appropriations, provided that such appropriation for any year shall not be less than the amount disbursed during that year on account of said portion of the increases.

(Added by: Stats. 1953.)

(Res. No. 89280, 6-21-2022)

Plan To Be Compulsory

Section 2012. The system shall be applied to employees, officers, or officials, not excluded by the provisions of this Amendment, of all such departments, sections, or classes as the Council shall determine, and all persons in the employ of the City in such departments, sections, or classes after the system is adopted shall be members of the system; provided, that persons employed in the Office of the City Engineer prior to July 1, 1911, shall be classified as city employees during the period of such employment, for the purposes of membership in the Retirement System.

The Council may, however, provide that employees, officers, or officials of the aforementioned departments, sections, or classes who shall enter the service of the City after the system is adopted shall serve a period of six (6) months before becoming members of the system.

(Amended by: Stats. 1927.)

Contributions To Be Based On Actuarial Tables

Section 2013. It shall be the duty of the first Board of Administration created under this Section to recommend a retirement system to the Council and to secure from a competent actuary a report of the cost of establishing the same.

The mortality, service, experience, or other tables calculated by the said actuary and the valuations determined by the actuary and approved by the Board shall be conclusive and final. Any system adopted by the Council shall be based thereon, and no changes shall be made in the system by the Council until the cost of such changes has been estimated by a competent actuary and the changes themselves have been approved by the Board of Administration.

The Board of Administration shall cause the tables on which the system is based to be reviewed at least every three (3) years by a competent Actuary and shall recommend to the Council any changes in the system that the Board may deem necessary as the result of such actuarial review.

(Amended by: Stats. 1927 and September 1974.)

(Res. No. 89280, 6-21-2022)

Liability For Prior Service

Section 2014. The system adopted hereunder shall include provision for an annual contribution by the City at least sufficient to meet the liability falling due in the current year for benefits to which members of the system are entitled by virtue of service rendered prior to the time the system becomes effective.

Said annual contribution for prior service shall be in addition to the contributions for current service required by Section 2005.

(Amended by: Stats. 1927.)

Administration Of The Plan

Section 2015. The Board of Administration shall elect one of their number President and shall appoint a Secretary. They may also employ such additional actuarial, clerical, or other assistance as the Council may provide. All regular and permanent employees of the Board, with the exception of the actuaries, shall be appointed under the provisions of Article XIII of this Charter.

The Board shall make all necessary rules and regulations, not inconsistent with this Charter and the ordinances establishing the Retirement System, and it shall be the sole judge, under such general ordinances as may be adopted by the Council, as to the conditions under which persons may be admitted to benefits of any sort under the system.

The Board shall also have exclusive control of the administration and investment of such funds as may be established under the system; provided, that the Auditor shall refuse to allow any warrant drawn for the payment of a benefit if in the Auditor's opinion such benefit has been granted in contravention of this Section or of any ordinance passed under the authority granted herein; and provided further, that the City Treasurer shall be custodian of the funds under the direction of the Board of Administration as aforesaid.

(Amended by: Stats. 1927.)

(Res. No. 89280, 6-21-2022)

Additional Ordinances Authorized

Section 2016. The Council shall enact any and all ordinances necessary, in addition to the ordinance authorized in Section 2000, for the proper operations of the aforementioned Retirement System. The Board of Administration shall make an annual estimate of the cost of administering the Retirement System and shall transmit the same to the City Administrator at such time as the City Administrator may direct. The amount necessary for the administration of the aforementioned Retirement System shall be paid out of the Oakland Municipal Employees' Retirement Fund.

(Added by: Stats. 1927. Amended by: Stats. November 1992 and March 2004.)

(Res. No. 89280, 6-21-2022)

Termination and Winding Up of Retirement System

Section 2017. Notwithstanding any contrary provision herein, the Council may by an ordinance adopted by four-fifths of the Council terminate the Retirement System and in connection therewith direct the Retirement Board to wind-up said Retirement System by performing the following actions:

(a)

Purchase life annuities for retired members, former members or other persons currently receiving Benefits under the Retirement System through a reputable and stable annuity provider provided that such annuities provide payments that are equal to the Benefits due under the Retirement System;

(b)

Provide for payment of any other outstanding liabilities; and

(c)

Any other actions which are necessary and prudent to terminate the Retirement System.

(Added by: Stats. November 2014.)

Notification of Termination and Winding Up

Section 2018. The City must give notice, or cause notice to be given, of its intention to terminate and wind up the Retirement System, in writing, to the following:

(a)

Each retired member and former member; or

(b)

If a retired member or former member has died, the surviving spouse, designated beneficiary or personal representative of the estate of the retired member or former member as ascertainable by the City.

The notice required under subsection (1) must give the effective date of termination and start of the winding up process, explain the manner in which Benefits will continue to be provided, and be given at least 60 days before the effective date of the ordinance terminating the Retirement System.

(Added by: Stats. November 2014.)

Reversion of Assets

Section 2019. Notwithstanding any contrary provision herein, in the event the Retirement System is terminated pursuant to Section 2017 herein, none of the assets of the Retirement System shall revert to the benefit of the City until provision has been made for the funding or purchase of Benefits accrued but unpaid under the Retirement System. Any remaining surplus shall revert to the City provided that such surplus shall be held in a reserve account with the necessary restrictions to ensure that the assets thereof shall not be used by the City, other than to satisfy any liabilities of the Retirement System which are not fulfilled by the selected annuity provider, until such time as the last retired member, former member or beneficiary thereof dies. For this purpose, the term "surplus" shall mean the assets of the Retirement System remaining after satisfaction of all liabilities.

(Added by: Stats. November 2014.)

Effect of Termination and Winding Up

Section 2020. If the Council adopts an ordinance to terminate and wind up the Retirement System, the Retirement System shall continue to be subject to the requirements of this Article XX and Ordinance 713, as amended, until all the assets of the Retirement System have been disbursed. Once the assets have been disbursed, the Retirement System shall terminate and the Retirement Board shall be dissolved.

(Added by: Stats. November 2014.)