Chapter 2.250 — RETIREMENT SYSTEM

This chapter shall be known as the "Retirement System Ordinance." This retirement system ordinance shall supplement the provisions of city Charter Article XV which creates and governs the retirement system of the city.

(Ord. 6229 § 2 (part), 1987)

The following words and phrases as used in this chapter, shall have the following meanings:

"Accumulated contributions" means the sum of all the contributions, deducted from the compensation of a member and standing to the credit of the member's individual account, together with regular interest thereon.

"Beneficiary" means any person in receipt of a retirement allowance, a death benefit or any other benefit from the retirement system.

"Board" means "retirement board" as created in Section 1502 of Article XV of the Charter.

"City" means city of Pasadena.

"Charter" means the Charter of the city.

"Costs of administration" means services performed by noncity personnel, such as actuary, investment counsel, bank custodian, special legal counsel, medical examiner and such items as court costs, office supplies, postage and telephone costs.

"Limitation year" means, for purposes of Section 415 of the Internal Revenue Code of 1986, as amended ("Code"), each twelve-month period ending on every June 30.

"Pension" means equal monthly payments for life derived from contributions made by the city as provided in this chapter.

"Prior service" means service rendered before July 1, 1935.

"Regular interest" means interest at the rate adopted by the board, compounded at each June 30th, plus such additional interest as the board may declare from year to year in accordance with the provisions of this chapter.

"Retirement" means withdrawal from service with a retirement allowance granted under the provisions of the Charter and this chapter.

"Retirement allowance," "allowance" and "death allowance" mean the pension plus the annuity.

"Treasurer" means the treasurer of the city.

(Ord. 6229 § 2 (part), 1987)

(Ord. No. 7228, § 1, 12-3-2012)

The fire chief and police chief shall give immediate notice in writing to the board of the change in status of any member in his/her respective department resulting from transfer, promotion, leave of absence, resignation, reinstatement, discharge, death or other cause. All department heads shall furnish such other information concerning any member as the board may require.

(Ord. 6229 § 2 (part), 1987)

Each member and beneficiary shall be subject to all the provisions of this chapter and to all the rules and regulations adopted by the board, and shall furnish to the board such information affecting status as a member or beneficiary of the retirement system as the board may require.

(Ord. 6229 § 2 (part), 1987)

A.

The board shall certify to the proper department head and to the director of finance the rates of contribution for each member. For the purposes of administration, the contribution rates may be combined into 1 rate. The proper department head or the director of finance shall apply such rate of contribution to the compensation, before deduction, except for absence from duty, of the member to determine the amount to be contributed by each member, as a deduction from such compensation on each payroll, and shall furnish immediately to the board a copy of each and every such payroll. These amounts shall be deducted by the director of finance and shall be deposited in the retirement fund and shall be credited by the board to the individual account of the member for whom the contribution was made. The board, however, may certify cash payments by any member, of amounts necessary to correct or adjust the contribution account of such member. The amount so certified shall be deposited and credited in the same manner as if deducted on a payroll and the director of finance shall be notified of such payment. Every member shall be deemed to consent and agree to the contributions made and provided for herein. Further, payment by city of each member's compensation, less the contribution, shall be a full discharge of all claims for the services rendered by such member during the period covered by such payment, except the member's claim to the benefits to which the member may be entitled under the retirement system.

B.

After the close of each accounting period the board shall determine the aggregate amount of compensation earned by members during the month, before deduction for any reason other than absence from duty. The board shall certify such aggregate amount to the director of finance who, until a different percentage is certified to him/her by the board, shall transfer 13.82 percent of such aggregate amount to the retirement system from the budget appropriation for the then current fiscal year, to meet the city's liabilities on account of that portion of service retirement allowances, which is based on current service. When the board redetermines the percentage provided for in Section 1509.92 of the Charter, the board shall certify forthwith to the director of finance the new percentage and its effective date, and thereafter the director of finance shall use such percentage in lieu of the 13.82 percent, or the last preceding redetermined percentage, as the case may be.

C.

There shall be paid into the retirement fund, by contributions of the city, the amounts necessary to pay allowances and other benefits disbursed on account of death and disability, not provided by members' contributions. During each fiscal year, the board shall certify to the director of finance, the amounts of such allowances and other benefits paid to or on account of members, and which are not provided by members' contributions, or from reserves derived from the city's contributions and previously set aside for such purpose. The director of finance shall transfer equal amounts to the retirement system from the budget appropriation for the then current fiscal year.

(Ord. 6229 § 2 (part), 1987)

In accordance with Section 1509.91 of the Charter, administration costs shall be charged to the retirement system and not to the city.

(Ord. 6229 § 2 (part), 1987)

A.

The time during which a member is or has been on military leave of absence from duty shall be credited as service for the purposes of the retirement system, provided the member contributes the full amounts which the member would have contributed had the member not been absent. If the member contributes less than such full amount, the time credited as service shall bear the same ratio to the time of the absence that the contributions made bear to such full amount.

B.

Such contributions may be made by any member on military leave of absence during the time of such leave and at such times and in such amounts as such member may desire.

C.

Within 1 year after the member's return to duty from such military leave of absence, any such member may elect to make such contributions remaining unpaid, in 1 of the following ways:

Payment in full at the time of such election;

Payment in part at the time of such election and the balance as acceptable to the board upon application by the member.

D.

For any member who died on or after January 1, 2007 while performing qualified military service, the member's period of qualified military service shall be credited as service for purposes of the retirement system.

E.

For any member who died on or after January 1, 2007 resulting from military service, if the deceased member left employment for qualified military service and died while serving in qualified military service, then for purposes of the death benefit provided by the retirement system the deceased member shall be treated as having returned to employment and then terminated employment on account of death.

(Ord. 6229 § 2 (part), 1987)

(Ord. No. 7228, § 2, 12-3-2012)

The management and control of the retirement system shall be vested in the board as provided in Section 1502 of the Charter. The board shall exercise the powers and perform the duties conferred by the Charter and other sections of this chapter, and in addition thereto:

A.

Shall credit contributions of members, of beneficiaries and of the city with interest at the rate adopted by the board, compounded on June 30th of each year, subject to the provisions of subsection B of this section. The board, at the end of each fiscal year, may credit to all contributions held in the retirement fund at the end of the fiscal year such additional interest as the board may deem proper in light of the earnings on the retirement fund during such fiscal year. Such additional interest credited to contributions during any fiscal year shall not exceed the actual earnings rate of the retirement fund.

B.

Shall maintain in convenient form such data as shall be necessary for the actuarial investigation/valuation of the retirement system. When recommended by the board's consulting actuary or on the board's own determination of necessity, the board shall either:

Conduct an actuarial investigation into the mortality, service and compensation experience of the members and beneficiaries as defined by this chapter;

Conduct an actuarial valuation of the assets and liabilities of the retirement system.

C.

Upon completion and acceptance of the consulting actuary's report, the board shall:

Adopt for the retirement system such interest rate and such mortality, service and other tables as shall be deemed necessary;

Make such revision in the rates of contribution under the retirement system as shall be deemed necessary.

D.

In addition to other records and accounts, shall maintain such records and accounts as shall be necessary to show at any time:

The total accumulated contributions of members;

The total accumulated contributions of retired members less the annuity payments made to such members;

The accumulated contributions of the city held for the benefit of members on account of service rendered as members of the retirement system;

All other accumulated contributions of the city, which shall include the amounts available to meet the obligation of the city on account of benefits that have been granted and on account of prior service of members.

E.

Shall determine the service rendered by members and shall fix and may modify allowances for service and disability and fix other benefits, all in accordance with the provisions of the Charter, this chapter and as follows:

One year and proportionate parts thereof shall be credited on the basis of 10 months or more of city service rendered by members, but not more than 1 year shall be credited for all service in any fiscal year;

Time during which a member was or shall be absent from service without pay shall not be allowed in computing service, except as credit is granted for time during which a member is retired for disability, or for time during which the member is absent on military leave;

Time during which a member is excused from the performance of duties whether or not the member is required to perform any portion of such duty during such time, and for which the member receives compensation, shall be credited as service in the proportion that the compensation paid to the member bears to the full compensation which would have been earnable by the member while performing the member's duties on a full-time basis.

(Ord. 6229 § 2 (part), 1987)

A.

All meetings of the board shall be open to the public. The board shall have the power to subpoena witnesses, administer oaths and compel the production of books, papers, testimony and other evidence necessary in hearings or other matters coming under the board's jurisdiction. The secretary of the board shall have power to issue subpoenas without action by the board.

B.

The director of finance or his/her designee, is authorized and instructed, if appointed by the board, to perform the duties of secretary of the board, without extra compensation, and shall perform such duties at the pleasure of the board. In the event of such appointment as secretary of the board, all documents and papers filed with the board shall be filed with the director of finance.

C.

The board shall prepare such forms as are necessary for the administration of the retirement system pursuant to the Charter and such forms shall be approved by the director of finance and the city attorney.

D.

Procedure for the collection of the benefits provided by the Charter must be commenced within 6 months from the date of the injury or illness or the date the right accrued, except as to the right of optional retirement for service, pursuant to the provisions of the Charter and this chapter.

E.

Procedure for the collection of that portion of the death benefit provided by the Charter must be commenced within 1 year from date of death.

F.

Nothing in this section shall be construed to bar the right of any injured or ill member to institute proceedings for the collection of benefits provided by the Charter within 245 weeks after the date of injury or illness upon the ground that the original injury or illness has caused new and further disability and the jurisdiction of the board in such case shall be a continuous jurisdiction at all times within such period.

G.

Proceedings for the collection of benefits provided for in the Charter shall be initiated by the filing of an application with the secretary of the board. The secretary of the board shall immediately furnish copies of such application to the city attorney.

H.

No application for a service connected disability allowance shall be acted upon by the board until the member has been examined by a physician or surgeon and the physician or surgeon has reported his/her findings to the board in oral testimony at a hearing held on such application, or by written report, a copy of which shall be delivered to the member.

I.

The procedure for hearings before the board shall be governed by the retirement board's guidelines for processing disability applications. Testimony shall be taken under oath and formal decision issued. No application for disability benefits shall be granted unless satisfactory proof is offered to the board in support of such application.

J.

Any member applying for benefits provided by the Charter shall be entitled to appear before the board in person or by an attorney or authorized representative and present to the board any and all facts material or relevant to the issues raised by the application. Such member shall have the right to cross-examine any and all persons testifying with respect to such issues.

K.

The determination of the board on any application shall be stated in the minutes of the board and the member shall be notified in writing of the determination of the board as soon thereafter as practicable.

L.

At any time within 30 days after receipt of the retirement board decision, any party aggrieved thereby, or the board, may request reconsideration and applicants may contest the decision upon any of the grounds set forth in the retirement board's guidelines. The decision of the retirement board shall be final after this 30-day period has expired or a decision has been rendered pursuant to reconsideration or contested decision. The member shall be notified that the provisions of Code of Civil Procedure Section 1094.6 regarding judicial review apply to the final decision of the board.

M.

The city attorney shall be the legal advisor to the board. The city attorney shall represent the board and all members thereof, as well as ex-members of the board, in any litigation in which they may be involved by reason of their official duties.

N.

The board shall have power to make all rules and regulations necessary for the administration of the retirement system not inconsistent with the provisions of the Charter and this chapter.

O.

In order to carry out its function and purpose, the board shall have the power to enter into, make, perform and carry out contracts of every kind for any lawful purpose with any person or entity.

(Ord. 6634 § 1, 1995; Ord. 6326 §§ 1, 2, 1989; Ord. 6229 § 2 (part), 1987)

Present, future and former members of the retirement board, city council, city officers and employees and retirement system investment managers shall be indemnified and defended from the general fund by the city of Pasadena from all claims, demands, suits, actions, damages, judgments, costs, charges and expenses, including court costs and attorney's fees, and against all liability, losses and damages of any nature whatsoever that these present, future or former members of the retirement board, city council, city officers and employees and retirement system investment managers shall or may at any time sustain by reason of any decision to restrict, reduce or eliminate investments by the retirement system in business firms with business operations in South Africa or business arrangements with the government of South Africa or investments in financial institutions extending credit to the government of South Africa or South African corporations.

(Ord. 6820 § 45 (part), 2000; Ord. 6296 § 1, 1988)

A.

A fund is created to be known as the Pasadena fire and police retirement fund and shall consist of all moneys paid into such fund in accordance with the provisions of the Charter and this chapter, whether such moneys shall take the form of cash, securities or other assets. The board shall have exclusive control of the administration and investment of the fund, and all investments shall be subject to the same terms, limitations and restrictions imposed by the Constitution and laws of the state upon the investments of the Public Employees' Retirement System Fund, as now enacted or hereafter amended.

B.

The treasurer shall deposit moneys belonging to the retirement fund in such banks as may be designated for that purpose by the board.

C.

The treasurer shall be the custodian of the retirement fund under the provisions of the Charter subject to the exclusive control of the board as to the administration and investment of the fund. Payment from the fund shall be made upon demands initiated by the board, duly audited in the manner prescribed in the Charter for disbursement of public funds.

D.

Interest on any moneys and on any investments constituting a part of the fund shall be paid into the fund as received.

E.

Except as herein provided, no member or employee of the board shall have any interest, directly or indirectly, in the making of any investment, or in the gains or profits accruing therefrom. No member of the retirement system and no member or employee of the board, directly or indirectly, for himself/herself or as an agent or partner of others, shall borrow any of the retirement system funds or in any manner use the same except to make such current and necessary payments as are authorized by the board; nor shall any member or employee of the board become an endorser or surety or become in any manner an obligor for moneys invested by the board.

F.

In addition to such other investments as are authorized by this section, the board is authorized to invest no more than 60 percent of the cost value of the assets of the retirement fund in common stock, shares and stock equivalent convertibles of corporations created or existing under the laws of the United States, or any state, district, or territory thereof.

G.

It shall be impossible at any time prior to the satisfaction of the retirement system's liabilities, for any part of the retirement system's funds to be diverted for any purpose other than for the exclusive purpose of providing benefits to members and their beneficiaries, including payment of the reasonable administrative expenses of the retirement system.

(Ord. 6229 § 2 (part), 1987)

(Ord. No. 7228, § 3, 12-3-2012)

Should the service of a member be discontinued except by death or retirement, the member shall be paid, subject to the election provisions of the Charter, not less than 6 months after the date of discontinuance, such part of the member's accumulated contributions as the member shall demand; provided that, if in the opinion of the board, the member is permanently separated from service by reason of such discontinuance, the member shall be paid forthwith all of the member's accumulated contributions with interest.

(Ord. 6229 § 2 (part), 1987)

Upon death prior to retirement of a member whose membership continues under Section 1509.4 of the Charter, the retirement system shall be liable for a death benefit consisting of the member's accumulated contributions, to be paid to the estate or such other persons having an insurable interest in the member's life as the member shall nominate by written designation duly executed and filed with the board.

(Ord. 6229 § 2 (part), 1987)

Upon the application of the department head in which the member is employed, or upon the application of the member or of a person acting on the member's behalf, stating that the member is physically or mentally incapacitated for the performance of duty and ought to be retired, the board shall consider such application as soon thereafter as practicable in accordance with this chapter and the Charter. An application for disability retirement shall be accompanied by the applicant's statement setting forth the alleged disability.

(Ord. 6229 § 2 (part), 1987)

A.

The board may require any member who has been retired for disability to undergo medical examination, such examination to be made by a physician or surgeon, appointed by the board, at the place of residence of the member or other place designated by the board. If from the examination the board has reason to believe that such member no longer is incapacitated, physically or mentally, for service in the department of the city in which the member was employed and in the classification held by the member when retired for disability, the board shall cause notice to be given in writing to such member requiring such member to show cause why the retirement allowance should not cease. Notice may be given by mail addressed to the member at the last known address or in any other manner directed by the board. The notice shall show the time and place of a hearing before the board upon the order to show cause. If from the results of such examination or other evidence produced at the hearing the board determines that the member is not so incapacitated, the retirement allowance thereupon shall cease and the board shall recommend to the city manager that the member be reinstated to the same classification as that held by the member at the time of the member's retirement.

B.

Should any member retired for disability refuse to submit to a medical examination, the member's pension may be discontinued until his/her withdrawal of such refusal, and should such refusal continue for 1 year the retirement allowance may be canceled by the board.

(Ord. 6229 § 2 (part), 1987)

Until the first payment of any retirement allowance is made, a member or retired member, in lieu of the retirement allowance for the member's life alone, may elect to have the actuarial equivalent of his/her retirement allowance as of the date of retirement applied to a lesser retirement allowance payable throughout life in accordance with 1 of the optional settlements specified below:

A.

Option Settlement 1. Optional settlement 1 consists of the member's right to have a retirement allowance paid the member until his/her death and, if the member dies before receiving in annuity payments the amount of the member's accumulated contributions at retirement, to have the balance at death paid to the member's estate or to such person, having an insurable interest in the member's life, as the member nominates by written designation duly executed and filed with the board at the time of the member's retirement.

B.

Optional Settlement 2. Optional settlement 2 consists of the member's right to have a retirement allowance paid the member until the member's death, and thereafter to such person, having an insurable interest in the member's life, as the member nominates by written designation duly executed and filed with the board at the time of the member's retirement.

C.

Optional Settlement 3. Optional settlement 3 consists of the member's right to have a retirement allowance paid the member until the member's death, and thereafter to have 1/2 of the member's retirement allowance paid to such person, having an insurable interest in the member's life, as the member nominates by written designation duly executed and filed with the board at the time of the member's retirement.

The amount and level of any optional settlement for a member with an effective retirement date on or after January 1, 1991, shall be actuarially equivalent to the normal retirement benefit payable under the plan, calculated using a 7.00% interest rate and the 1971 Group Annuity and 1973 Disability mortality tables.

(Ord. 6229 § 2 (part), 1987)

(Ord. No. 7228, § 4, 12-3-2012)

A.

A pension, an annuity, retirement allowance or death allowance granted under the provisions of this chapter shall be payable in equal monthly installments, or in smaller pro rata amounts when the pension, annuity, retirement allowance or death allowance begins after the first day of the month or ends before the last day of the month.

B.

Deductions for payments, required or permitted by law, may be made in the manner authorized by the salary resolution for city employees.

(Ord. 6229 § 2 (part), 1987)

A.

"Physically or mentally handicapped" as used in Section 1504(o) of the Charter of the city ("Charter") shall refer to any unmarried dependent child of a member who is unable to perform substantial gainful activity by reason of any medically determinable physical or mental impairment, who was so handicapped prior to reaching the age of 21 years, and whose handicap is expected to persist for more than 12 months.

B.

"Substantial gainful activity" as used herein means work that: (1) involves doing significant and productive physical or mental duties; (2) is done or intended for pay or profit; or (3) would result in compensation to that individual exceeding $500 per month measured in 1990 dollars.

C.

Any member requesting benefits under Section 1509.73 of the Charter on behalf of a handicapped dependent child as defined in Section 1504(o) of the Charter and in this section shall present evidence of such handicap to the retirement board. Such evidence shall consist of the opinions of not less than two physicians or psychiatrists, licensed in this state or in the state of the child's residence, concerning whether the dependent child meets the qualifications and definitions established herein. The retirement board shall consider the evidence presented by the member, and may order or request such additional medical, psychological or other tests or examinations as may be appropriate in the sole discretion of the retirement board.

D.

If the retirement board shall decline to designate the child in question as "physically or mentally handicapped," or if a hearing is requested by an interested person, the retirement board may set the matter for a hearing. If requested by the board, and consistent with the health and safety of the child, the board may request that the child be present.

E.

The retirement board shall require that all recipients of benefits as handicapped dependent children submit during the month of January of each year in which such benefits will be claimed a certification by the recipient's physician or psychiatrist on a form to be provided by the board that the impairment which is the basis for the recipient's eligibility is continuing as of the date of the certification and is expected to continue for the ensuing calendar year. Failure to provide the form to the board after written notice of delinquency shall result in suspension of benefits until certification is received.

F.

A member may request the retirement board to designate a child as "physically or mentally handicapped" at any time after the birth of such child or the onset of the disabling condition. However, if more than 2 years have elapsed between the date of the designation and the date of commencement of benefits, the retirement board may request the recipient to undergo such medical or psychological tests as will, in the opinion of the retirement board, determine whether the child continues to meet the criteria for "physically or mentally handicapped."

G.

Should any persons designated as "physically or mentally handicapped" hereunder cease to meet the criteria established for that status, or otherwise fail to qualify for benefits, the retirement board may terminate the benefits allowed to such individual after written notice and an opportunity to be heard have been provided to the member or annuitant and to the child in question or to his/her legal guardian or conservator, if any.

(Ord. 6412 § 1, 1990)

The city council adopts the following uniform reciprocal provisions set forth below concerning the city's fire and police retirement system:

A.

The purpose of these reciprocal provisions is to extend to the members of other public agency retirement systems (hereinafter "reciprocal system") which adopt similar reciprocal provisions into their retirement ordinances or plans pursuant to Sections 20351, 20353, 31840.2 and 45310.5 of the Government Code, and who by contract agree to extend the benefits thereof to this system, the following rights in this system, provided such member enters into employment under this system or the reciprocal system within six months of terminating his or her employment under such other or this system.

B.

Notwithstanding any provisions of this plan or a reciprocal system plan in the matter of vesting, a member whose movement between systems occurs as herein specified shall have the right to elect to leave his accumulated contributions on deposit irrespective of the amount of such contributions or the length of service credited to him or her.

C.

The age of entry for a person entering this system for purposes of fixing member contribution rates from a reciprocal system shall be his or her age at entry into such reciprocal system.

D.

The average monthly salary during any period of service as a member of a reciprocal system shall be considered compensation earnable by a member of this system for purposes of computing final compensation for such member, provided he or she retires concurrently under both systems and is credited with such period of service under the reciprocal system at the time of retirement.

E.

Service, solely for purposes of meeting minimum service qualifications for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a reciprocal system if the salary for such service constitutes compensation earnable by a member of this system.

F.

A member shall be retired for disability and receive a retirement allowance based on the service credited to him or her at the time of retirement during any period in which he or she receives a disability retirement allowance under a reciprocal system; provided, that such allowance shall not exceed an amount which when added to the allowance paid under the reciprocal system equals the allowance which would be paid for a nonindustrial disability if all the member's service had been credited under the reciprocal system; and provided further, that such allowance shall in no event be less than an annuity which is the actuarial equivalent of the member's contributions, whether or not the disability is for industrial reasons.

G.

The death benefit for a member who dies from nonindustrial causes as a member of a reciprocal system shall not exceed an amount which when added to the death benefit paid for such member under the reciprocal system equals the maximum death benefit payable under that system; provided, however, that such death benefit shall be at least the amount of the accumulated contributions; and, provided further, that if death is caused by industrial injury or disease in the reciprocal system the death benefit shall be the amount of the member's accumulated contributions.

H.

The governing body of this system shall, on the request of a reciprocal system, supply information and data necessary for administration of such system as it is affected by membership in and service credited under this system.

I.

Interpretation of these provisions shall be made with reference to interpretations that have been made relative to the California Public Employees' Retirement System - 1937 Act County Employees' Retirement reciprocal provisions upon which they are based.

J.

These provisions shall apply only to a member whose termination and entry into employment resulting in a change in membership from this system to such other system or from such other system to this system occurred after such acceptance by the board or after the effective date specified in the agreement; provided, however, that provisions relating to computation of final compensation shall apply to any other member if such provision would have applied had the termination and entry into employment occurred after such acceptance or determination by a system's governing board.

K.

Rights under this system shall be modified as necessary to conform to amendments to the Public Employees' Retirement Law or the County Employees' Retirement Law of 1937 as provided in Section 20353 of the Government Code.

(Ord. 6858 § 1, 2001)

Police and fire members of the fire and police retirement system may convert unused, accumulated sick leave to additional service credit at the time retirement at the rate of .004 year of service credit for each day of unused sick leave to the maximum accumulation allowed.

(Ord. 6970 § 1, 2004)

Notwithstanding any other provisions of this chapter, the city's fire and police retirement system is authorized to make in- service distribution of the amount contributed to said system by an employee for the cost of living adjustment (but not including any interest credited thereon) upon a specific request by the city. Said distribution may be made to an employee prior to his or her retirement from the city, while the employee remains employed by the city, and only if said employee has elected to terminate his or her participation in FPRS and transfer to the California Public Employee Retirement System

(CalPERS). Upon payment of all such contributions, the employee shall not be entitled to any further payments from the FPRS system.

(Ord. 6983 § 1, 2004)

The amount of compensation taken into account for purposes of determining a member's retirement allowance shall not exceed the limit referenced in Code Section 401(a)(17), as amended annually for cost-of-living increases. Annual compensation for this purpose means compensation during the retirement system's plan year or such other consecutive 12- month period over which compensation is otherwise determined under the retirement system (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.

(Ord. No. 7228, § 5, 12-3-2012)

Notwithstanding any other provision of this plan to the contrary, on the date of termination of the plan, an affected member's right to his or her accrued benefit, to the extent funded as of such date, shall be 100% nonforfeitable.

(Ord. No. 7228, § 6, 12-3-2012)

All benefits payable under the retirement system shall comply with the limits of Code Section 401(a)(9) and the regulations prescribed thereunder.

(Ord. No. 7228, § 7, 12-3-2012)

A distributee may elect, at the time and in the manner prescribed by the administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

A.

Eligible Rollover Distribution. An eligible rollover distribution as defined in Code Section 402(c)(4) is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); any hardship distribution described in Code Section 401(k)(2)(B)(i)(IV) received after December 31, 1998 and the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities).

B.

Eligible Retirement Plan. An eligible retirement plan is a qualified trust described in Code Section 401(a), an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), a tax-sheltered annuity arrangement described in Code Section 403(b) and an eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision which agrees to separately account for amounts transferred into such plan from this plan. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, surviving non-spouse beneficiary, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p). Effective June 1, 2008, an eligible retirement plan is also a Roth IRA.

C.

Distributee. A distributee includes a member or former member. In addition, the member's or former member's surviving spouse or non-spouse beneficiary and the member's or former member's spouse or former spouse who is the alternate payee under a qualified domestic relations order, are distributees with regard to the interest of the spouse or former spouse.

D.

Direct Rollover. A direct rollover is a payment by the retirement system to the eligible retirement plan specified by the distributee.

(Ord. No. 7228, § 8, 12-3-2012)