Part 6 — MEMBER CONTRIBUTIONS

Except as may be otherwise provided elsewhere in this Chapter 3.28, all members of this System must make monthly (or biweekly, if compensation is paid biweekly by the City) normal contributions to this System. The normal contribution required of a member for each month (or for each two (2) weeks, if compensation is paid biweekly by the City) shall be a percentage of compensation earned (or of "compensation earnable" when so required by other provisions of this Chapter 3.28) by him or her in such

period. Said percentage is hereinafter referred to as members' "normal rate of contribution." Non-Tier 2 members and Tier 2 members may have a different rate of contribution. Except as otherwise provided in Section 3.28.710 or another provision of this Chapter 3.28, all non-Tier 2 members will have the same normal rate of contribution. The normal rate of contribution may be different among Tier 2 members, but shall be the same percentage for all Tier 2 members of the same bargaining unit unless otherwise provided under Section 3.28.710 or another provision of this Chapter 3.28. Notwithstanding any other provisions of this Section 3.28.700, the normal contributions of a member subject to Section 3.28.725 shall be paid by the City, as described in that Section 3.28.725.

(Prior code § 2904.1250; Ords. 29120, 29904, 30785.)

A.

For non-Tier 2 members: Except as provided under Section 3.28.200.A.1 and 3.28.200.A.2., the normal rate of contribution required of members shall be such that, based on interest and mortality tables and other relevant actuarial data, the total amount of normal contributions which will be required of members under the provisions of this Chapter will be sufficient to pay, when due, three-elevenths ( 3/11 ) of the amount of all pensions, allowances and other benefits which are and will become payable under this System on account or because of current service rendered on or after July 1, 1975; provided and excepting, however, that if and when, from time to time, the members' normal rate of contribution is hereafter amended or changed, the new rate shall not include any amount designed to thereafter recover from members or return to members the difference between the amount of normal contributions theretofore actually required to be paid by members and any greater or lesser amount which, because of amendments hereafter made to this System or as a result of experience under this System, said members should have theretofore been required to pay in order to make their normal contributions equal three-elevenths ( 3/11 ) of the abovementioned pensions, allowances and other benefits which are or will become payable on account or because of current service rendered on or after July 1, 1975, and before the effective date of the new rate. Notwithstanding the foregoing, members subject to this subsection A shall be responsible for any additional contributions described in Section 3.28.200, to the extent applicable to such member.

B.

For Tier 2 members: Except as provided under 3.28.200.B, the normal rate of contribution required of Tier 2 members shall be such that, based on interest and mortality tables and other relevant actuarial data, the total amount of normal contributions which will be required of members under the provisions of this Chapter will be sufficient to pay, when due, half of the amount of all pensions, allowances and other benefits which are and will become payable under this System on account or because of service rendered by Tier 2 members, including any amount designed to recover from members the difference between the amount of normal contributions theretofore actually required to be paid by members and any greater amount which, because of amendments hereafter made to this System or as a result of experience under this System, said members should have theretofore been required to pay in order to make their normal contributions half of the cost of the abovementioned pensions, allowances and other benefits which are or will become payable to such Tier 2 members on or after September 30, 2012.

C.

There shall be no offset to normal cost contribution rates in the event Plan funding exceeds one hundred percent (100%). Both the City and employees shall always make the full annual required Plan contributions as calculated by the Retirement Board actuaries which will be in compliance with applicable laws and will ensure the qualified status under the Internal Revenue Code.

(Prior code § 2904.1251; Ords. 29120, 29904, 30017.)

A.

Until amended, revised or changed by the retirement board in accordance with other provisions of this Chapter 3.28, the members' normal rate of contribution on or after July 1, 1975, shall be four and seventy- nine hundredths percent of earned compensation, or of "compensation earnable" when so required by other provisions of this chapter.

B.

Notwithstanding any other provisions of this Chapter 3.28, the members' normal rate of contribution for tier 2 members on or after September 30, 2012, shall be that percentage of "compensation earnable" as defined for tier 2 member in Section 3.28.030.06, determined to be required in order to make their normal contributions half of the cost to provide pensions, allowances and other benefits which are or will become payable to tier 2 members on or after September 30, 2012, including any amount designed to recover from members the difference between the amount of normal contributions theretofore actually required to be paid by members and any greater amount which, because of amendments hereafter made to this system or as a result of experience under this system, said members should have theretofore been required to pay in order to make their normal contributions half of the abovementioned pensions, allowances and other benefits which are or will become payable to such tier 2 members on or after September 30, 2012.

C.

The normal rate of contribution set forth in this section is based on interest and mortality tables and other actuarial data in possession of the city on the date of enactment of this section, and is subject to change from time to time by the retirement board pursuant to other provisions of this chapter.

(Prior code § 2904.1252; Ord. 29120.)

A.

Notwithstanding any other provisions of this Chapter 3.28, upon attainment of at least thirty (30) years of service credit by an eligible member that is not a Tier 2 member in this System, normal contributions described in Section 3.28.700 shall not be deducted from the member's monthly or bi-weekly compensation. Eligible members are those employees who are in positions assigned to an unrepresented employee unit or a represented bargaining unit that has agreed to the provisions in this Section 3.28.725 and has been approved by the City Council.

B.

Members shall continue to make all other member contributions that would otherwise be required under this Chapter 3.28 without regard to this provision.

C.

The City shall continue make all contributions that would otherwise be required under this Chapter 3.28 without regard to this provision. The City shall also make the normal contributions described in Section 3.28.700 that would have been deducted from an eligible member's monthly or bi-weekly compensation but for subsection A. of this Section 3.28.725, at the same time and in the same manner as the City makes other normal contributions described in Section 3.28.850 or Section 3.28.940 in the event the City has elected a lump sum payment of the City's contributions to the retirement fund.

(Ords. 30633, 30785.)

Notwithstanding any other provisions of this Chapter 3.28, all members of this system must make monthly (or biweekly, if compensation is paid biweekly by the city) prior service contributions to this system. The prior service contribution required of a member for each month (or for each two weeks, if compensation is paid biweekly by the city) shall be a percentage of compensation earned, or of "compensation earnable" when so required by other provisions of this chapter, by the member in such period. Such percentage is hereinafter referred to as members' "prior service rate of contribution." Said rate shall be the same for all members; provided, however, to the extent that prior service contributions are applicable to tier 2 members, the amount of prior service contributions required of a tier 2 member for each month (or for each two weeks, if compensation is paid biweekly by the city) shall be a percentage of "compensation earnable" as defined for tier 2 member in Section 3.28.030.06, required in order to make their prior service contributions sufficient to provide for half of the cost to provide pensions, allowances and other benefits which are or will become payable to tier 2 members on or after September 30, 2012, based on such prior service, including any amount designed to recover from members the difference between the amount of prior service contributions theretofore actually required to be paid by tier 2 members and any greater amount which, as a result of experience under this system, said members should have theretofore been required to pay in order to make their prior service contributions provide for half of the cost of the abovementioned pensions, allowances and other benefits which are or will become payable to such tier 2 members on or after September 30, 2012 with respect to any prior service.

(Prior code § 2904.1253; Ord. 29120.)

The members' prior service rate of contribution shall be such that, based on interest and mortality tables and other relevant actuarial data, the total amount of prior service contributions which will be required of members will be sufficient to pay, when due, forty-two percent (42%) of the difference between:

A.

The amount of all pensions, allowances and other benefits which are and will become payable under this System on account of or because of prior service of members; and

B.

The amount of all pensions, allowances and benefits which would be and become payable to members on account of prior service (that is, on account of service rendered prior to July 1, 1975) under the provisions of the Chapter 3.24 Retirement System as it existed on June 30, 1975, if all members of this System were members of said Chapter 3.24 Retirement System instead of being members of this System; provided, however, that if and when, from time to time, the members' prior service rate of contribution is hereafter amended or changed, the new rate shall not include any amount designed to thereafter recover from members or return to members the difference between the amount of members' prior service contributions theretofore actually required to be paid by members and any greater or lesser amount which, because of amendments hereafter made to this System or as a result of experience under this System, said members should have theretofore been required to pay in order to make their prior service contributions equal forty- two percent (42%) of the difference specified above.

C.

Notwithstanding the foregoing, to the extent that prior service contributions are applicable to a Tier 2 member, the amount of prior service contributions required of a Tier 2 member for each month (or for each two (2) weeks, if compensation is paid biweekly by the City) shall be a percentage of "compensation earnable," as defined for Tier 2 members in Section 3.28.030.06, required in order to make their prior service contributions sufficient to provide for half of the cost to provide pensions, allowances and other benefits which are or will become payable to Tier 2 members on or after September 30, 2012, based on such prior service, including any amount designed to recover from members the difference between the amount of prior service contributions theretofore actually required to be paid by Tier 2 members and any greater amount which, as a result of experience under this System, said members should have theretofore been required to pay in order to make their prior service contributions provide for half of the cost of the abovementioned pensions, allowances and other benefits which are or will become payable to such Tier 2 members on or after September 30, 2012 with respect to any prior service. Notwithstanding the foregoing, the following shall apply to the manner of sharing contributions between the City and members who became Tier 2 members prior to June 16, 2017 but on and after June 16, 2017 are no longer considered Tier 2 members under Section 3.28.030.28 but remain members of the Plan and those members who are Tier 2 members effective on and after June 16, 2017:

The costs, including any unfunded actuarial accrued liability, associated with implementing changes to benefits for Tier 2 employees effective as of June 16, 2017 for members who were Tier 2 members prior to June 16, 2017, including the cost associated with returning prior members of this Plan who had become Tier 2 members back to the benefit provisions applicable to non-Tier 2 members, will be amortized as a separate liability over twenty (20) years or other period determined by the Board and will be reflected as soon as practicable in contribution rates to be shared equally among the City and the former Tier 2 members who will return to non-Tier 2 status and equally among those Tier 2 members whose Tier 2 benefits will be increased as of June 16, 2017, and such increased rates shall not be subject to the incremental increases in amounts associated with unfunded actuarial accrued liability described in Section 3.28.740.C.2.

Other than as provided in Section 3.28.200.A., in determining member contribution rates, to the extent an unfunded actuarial accrued liability is determined to exist with respect to the Plan, Tier 2 members will contribute toward the amount of such amortized unfunded actuarial accrued liability by increasing the Tier 2 member contribution rate by one-third of one percent (0.33%) of compensation each year until such time as the cost of the unfunded actuarial accrued liability is being shared equally by the Tier 2 members and the City. Until such time as the Tier 2 members and the City are sharing such cost equally, the City will include in its contribution rate the amount of the amortized unfunded actuarial accrued liability that would otherwise have been paid by the Tier 2 member in such year.

D.

Notwithstanding any other provisions of this Plan to the contrary, in determining the amount of contributions to be made to the Plan as provided in this Section 3.28.740, except as provided in subsection 3.28.740.C, any excess of assets over the actuarial accrued liability shall not be used to reduce the contributions to the Plan.

(Prior code § 2904.1254; Ords. 29120, 29904.)

Until amended, revised or changed pursuant to the provisions of this Chapter 3.28, the members' prior service rate of contribution, on or after July 1, 1975, shall be one and fifty-four hundredths percent of earned compensation, or of "compensation earnable" when so required by other provisions of this Chapter 3.28; or as applicable to tier 2 members, the percentage of "compensation earnable" as defined for tier 2 member in Section 3.28.030.06, required to provide half of the cost of any prior service.

(Prior code § 2904.1255; Ord. 29120.)

A.

Notwithstanding any other provisions of this Part 6, or of Chapter 3.44, members of this System shall make such additional retirement contributions as may be required by resolution adopted by the City Council or by executed agreement with a recognized bargaining unit, or as may be required by Section 3.28.710.

B.

The City and Tier 2 members shall share in all costs of Tier 2 to the Retirement System, including but not limited to administrative expenses, normal cost and unfunded actuarial liability in the manner described in Section 3.28.200. The additional employee contribution for members of Tier 2 of this Retirement System for each month (or for each two (2) weeks, if compensation is paid biweekly by the City) shall represent the member's portion of the shared costs for such period.

(Ords. 28752, 29120, 29904.)

The retirement board shall furnish the director of finance the rates of contribution for members and the amounts of any other contributions payable by any member or members. The director of finance shall apply such rates of contribution to the earned compensation (or "compensation earnable" where applicable) of each member, and deduct from such compensation the contributions so determined and payable by each member. All other contributions authorized to be made or required of members shall be paid by such members to the director of finance. The director of finance shall furnish to the retirement board, upon its request therefor, a statement of such contributions so deducted or credited with respect to each member, together with such other information as the board may require. All contributions shall be placed in the retirement fund.

(Prior code § 2904.1256.)

A.

For the purposes of this section, contributions "picked up" by the city means contributions to this system which are designated as employee contributions but are treated as employer contributions for income tax purposes as authorized by Section 414(h)(2) of the Internal Revenue Code (26 U.S.C.A. 414(h)(2)).

B.

Notwithstanding any other provision of law, the city may pick up, for the sole and limited purpose of deferring taxes as authorized by Section 414(h)(2) of the Internal Revenue Code (26 U.S.C.A. 414(h)(2)) and Section 17501 of the California Revenue and Taxation Code, all or a portion of the contributions required to be paid by a member of this system.

C.

Nothing herein shall be construed to mean that any contributions so picked up by the city are to be treated as city contributions for any purpose other than the sole and limited purpose specified herein. Any contributions so picked up by the city shall be paid into the retirement fund and shall be treated in the retirement fund in the same manner as such contributions would be treated if they had not been picked up by the city. The member shall have no right to receive such picked-up contributions directly but instead they must be paid to the retirement fund.

D.

Subject to applicable laws relating to meet and confer requirements, the city shall retain the authority periodically to increase, reduce or eliminate the pick up by the city of all or a portion of the contributions required to be paid by a member of this system.

(Ords. 22458, 25732, 26006, 28885.)

A.

Each member's normal contributions, including those made under the Chapter 3.24 system and those made under this system, shall be credited by the director of finance to an individual account kept for such member. Such account shall also show any and all withdrawals or redeposits of normal contributions, if any, made by the member pursuant to the provisions of the Chapter 3.24 retirement system or this system. The total normal contribution so credited to a member, plus interest, if any, on such contributions which has been credited to such account, less all such contributions which have been withdrawn and not redeposited, shall be deemed, unless and except as may be otherwise provided by other provisions of this system, to be the accumulated normal contributions of such member in this system.

B.

Each member's prior service contributions, made on or after July 1, 1975 under the provisions of this system, also shall be credited by the director of finance to an individual account kept for such member. Such account shall also show all withdrawals of prior service contributions, if any, made by such member pursuant to the provisions of this system. The total prior service contributions thus credited to a member, plus interest if any on such contributions which has been credited to such account, less withdrawals, shall be deemed, unless and except as may be otherwise provided by other provisions of this system, to be the accumulated prior service contributions of such member in this system.

C.

Each member's additional contributions made on or after July 1, 2010 under the provisions of this system, also shall be credited by the director of finance to an individual account kept for such member. Such account shall also show all withdrawals of additional contributions, if any, made by such member pursuant to the provisions of this system. The total additional contributions thus credited to a member, plus interest if any on such contributions which has been credited to such account, less withdrawals, shall be deemed, unless and except as may be otherwise provided by other provisions of this system, to be the accumulated additional contributions of such member in this system.

D.

Payment of salaries and wages, less contributions required of a member, is in full discharge of all claims and demands whatsoever for the services rendered by the members during the periods covered by such payment, except the benefits afforded by the provisions of this chapter.

(Prior code § 2904.1257; Ord. 28752.)

A.

Except as otherwise provided in Sections 3.28.580, 3.28.590, 3.28.785, and 3.28.2420 of this chapter, if the membership herein of a member of this system is terminated for any reason other than death or retirement, the member shall be paid, within six months after the date of such termination, all of his or her accumulated normal contributions, all of his or her accumulated prior service contributions and all of his or her accumulated additional contributions. In any case, under the terms of this plan where a person is entitled to a return of employee contributions, such return of contributions shall include an amount equal to the amount of the employee contributions to the medical benefits account plus interest accrued thereon at the

rate of two percent per annum; provided, however, that no such return of contributions shall be paid from the medical benefits account.

B.

Anything elsewhere in this Chapter 3.28 to the contrary notwithstanding, if during a member's employment with the city, the member is required to or elects to become a member of any other retirement system supported in whole or in part by public funds, or is required to or elects to discontinue such federated city service as qualifies him or her for membership in this system and thereafter renders city service other than federated city service, such member shall be considered as having resigned from federated city service and, except as otherwise provided in Sections 3.28.580, 3.28.590, 3.28.785, and 3.28.2420, to have terminated membership in this system, as of the date he or she becomes a member of said other system or ceases to render said federated city service as aforesaid.

C.

Except as provided in Section 3.28.785, upon termination of a member's membership in this system for any reason other than death or retirement, the member, and any and all other persons or estates who might otherwise be entitled to any rights or benefits under this system because of such member's membership, shall thereupon cease to have or be entitled to any rights or benefits under this system.

D.

If on or after March 28, 2005, the member is to receive a distribution of an eligible rollover distribution, with a present value greater than one thousand dollars, and if a member does not elect to have such distribution paid directly to an eligible retirement plan specified by member in a direct rollover or to receive the distribution directly, then the system shall pay the distribution in a direct rollover to an individual retirement plan designated by the board in accordance with Section 401(a)(31)(B) of the Internal Revenue Code and IRS Notice 2005-5.

(Prior code § 2904.1258; Ords. 24682, 27838, 28752, 28885.)

A.

In the event a person's membership in this system is terminated because the person transfers, without a break in service, to a position that qualifies the person for membership in the police and fire department retirement plan and the person thereby becomes a member of such plan, the person may elect to leave his or her accumulated contributions on deposit in the retirement fund or may elect to have all of his or her accumulated contributions, with accrued interest thereon, transferred to the police and fire department retirement fund in accordance with the provisions of the police and fire department retirement plan.

B.

If a person described in Subsection A. elects to leave his or her accumulated contributions on deposit in this retirement fund, the person shall have no right to a refund of contributions until such person separates from city service. If the person elects to leave accumulated contributions on deposit in this retirement fund,

subsequently separates from city service, and does not meet the requirements of Section 3.28.580, Section 3.28.590, or Section 3.28.2420, then within six (6) months of such person's separation from city service, all of his or her accumulated contributions and the interest accrued thereon shall be paid to the person.

C.

If the accumulated contributions and accrued interest of a person described in Subsection A. are transferred to the police and fire department retirement fund, such person's membership in this system shall terminate and thereafter the member, and any and all other persons or estates who might otherwise be entitled to any rights or benefits under this system because of such member's membership, shall thereupon cease to have or be entitled to any rights or benefits under this system.

(Ord. 27838.)

A.

Except as provided in this Section 3.28.790 and in Section 3.28.2430, no person shall be entitled or permitted to repay or redeposit into the retirement fund or this System any accumulated contributions withdrawn by or returned to such person pursuant to the provisions of this Chapter or of Chapter 3.24, nor to reacquire credit for any Federated City Service lost by such person because of the withdrawal or return of such person's accumulated contributions.

B.

Upon any person becoming a member of this System pursuant to Section 3.28.430 or Section 3.28.450 or because of reemployment in a Federated City Service position, the Retirement Board shall cause written notice to be personally delivered or mailed to such member, informing such member of his or her rights under this Section. If mailed, such notice shall be mailed to said member at the latest address as shown in the records of the Human Resources Department of the City.

C.

If the member wishes to have the prior service which was lost by reason of the withdrawal of accumulated contributions recredited to him or her, the person shall file a written notice of election to redeposit with the Secretary to the Board within thirty (30) days from and after the date that written notice of his or her rights under this Section is mailed or delivered to the member. If the person does not file the notice of election to redeposit within such time, the member shall be deemed to have elected not to have such prior service credited to him or her.

D.

The member shall not be entitled to prior service credit under this Section unless the member redeposits and pays into the retirement fund:

All accumulated contributions previously withdrawn by or returned to said member; plus

All additional interest which would have been earned by said member's contributions at the actual rate earned by the retirement fund under the provisions of this Chapter or Chapter 3.24, whichever is applicable, as of the date he or she becomes a member of this System, if said accumulated contributions had not been withdrawn by or returned to said member; plus

Interest on the unpaid balance of all such moneys from the date said member becomes a member of this System to the date all such moneys are fully redeposited and paid into the retirement fund, at the regular rate of interest established by the Board which is in effect at the time said member elects to redeposit the withdrawn or returned accumulated contributions.

E.

Subject to any limits on annual contributions imposed by Section 415 of the Internal Revenue Code of 1986, as amended, any member who elects to redeposit and pay into the retirement fund the moneys specified in subsection D. may redeposit and pay said moneys:

In one (1) lump sum within sixty (60) days from and after the date said member files with the Secretary of the Retirement Board his or her written notice of election to redeposit; or

For elections made on or before January 31, 2011, in installments, paid pre-tax over a period of time not to exceed the number of monthly installments or biweekly installments approved by the Board, all payable within the time and in the manner determined by the Board; or

For elections made on or after February 1, 2011, in installments, paid post-tax over a period of time not to exceed the number of monthly installments or biweekly installments approved by the Board, all payable within the time and in the manner determined by the Board; or

A combination of a lump sum and installments.

F.

If the member elects to redeposit and pay the contributions in pre-tax installments or if the member elects to make the lump sum payment by pre-tax payroll deduction, the member shall execute a binding irrevocable payroll authorization form authorizing the payment of the redeposit by payroll deductions. The payroll authorization form shall be filed with the Director of Finance within thirty (30) days from and after the date that written notice of his or her rights hereunder is delivered or mailed to said member. If the member does not file the payroll authorization form within such time, the member shall be deemed to have elected

not to redeposit and pay the contributions by payroll deduction. The election to redeposit accumulated contributions in the retirement fund by pre-tax payroll deduction and the authorization to redeposit by pre- tax payroll deductions shall be irrevocable. During the time the pre-tax irrevocable election is in effect, no direct payments from the member to the retirement fund shall be made by the member or accepted by the System.

G.

The election to purchase credit for prior Police and Fire service through post-tax payroll deductions and the authorization to make payments by post-tax payroll deductions shall be revocable. During the time the revocable election is in effect, the member may make additional direct payments to the retirement fund.

H.

All contributions under subsections E.2. and F. shall be treated as pre-tax salary reductions pursuant to Internal Revenue Code Section 414(h)(2).

I.

If a member elects to redeposit and pay the moneys specified in subsection D. and subsequently does redeposit and pay said moneys as provided in this Section, the member shall be credited under this System for all the service for which he or she lost credit upon the withdrawal or return of his or her accumulated contributions.

J.

If a member elects to redeposit and pay said moneys but fails to complete the redeposit, then:

If the failure to complete the redeposit is because of death while in Federated City Service and before retirement, the member shall be credited with the amount of service which is determined by the Board to be attributable to the amount of accumulated contributions redeposited as of the date of the member's death.

If the failure to redeposit is for any reason other than the death of the person prior to retirement, any amounts redeposited and paid pursuant to such election shall be credited to the member's accumulated normal contributions account but the member shall receive no credit for any service lost by him or her because of the previous withdrawal or return of accumulated contributions.

K.

This Section 3.28.790 and all other redeposit provisions are available to Tier 2 members, except that a Tier 2 member making a redeposit under this Section 3.28.790 shall be responsible for paying the entire cost of the service credit purchase.

(Prior code § 2904.1258b; Ords. 22262, 26006, 28885, 29120, 29904.)

service or disability retirement under the Chapter 3.24 system.

If a person who has been retired for service or disability under the Chapter 3.24 retirement system is reinstated to and returns to federated city service and becomes a member of this system pursuant to the provisions of Section 3.28.410 or 3.28.420, his accumulated contributions in this system, as of the date he becomes a member of this system, shall be deemed to be an amount which is the actuarial equivalent of his annuity, under the Chapter 3.24 retirement system, at that time, as based on a disabled life in the case of a person retiring from disability retirement, but not exceeding the amount of his accumulated contributions at the time of his retirement under the Chapter 3.24 system, and he shall be credited with such amount of accumulated contributions as of said time. However, for the purpose only of qualifying for benefits under this system, his accumulated contributions in this system shall never be deemed to be less than five hundred dollars.

(Prior code § 2904.1259.)

service or disability retirement under Chapter 3.28 system.

If a person who has been retired for service or disability under the provisions of this Chapter 3.28 system is reinstated to and returns to federated city service and again becomes a member of this system pursuant to other provisions of this chapter, his accumulated contributions in this system, as of the date he again becomes a member of this system, shall be deemed to be the amount, if any, by which his accumulated contributions in this system, as of the date he formerly retired under this system, exceeds the total amount of retirement allowances theretofore received by him under this system. However, for the purpose only of qualifying for benefits under this system, his accumulated contributions in this system shall never be deemed to be less than five hundred dollars.

(Prior code § 2904.1260.)

A.

A Reclassified Tier 1 Member (described under Section 3.28.200.A.1) who separates from City service prior to paying the full amount of his or her Reclassified Tier 1 Member Obligation, as described in Section 3.28.200.A.1, is liable for and shall be required to pay any remaining balance within sixty (60) calendar days following the later of his or her date of separation from City service or receipt of the final remaining balance calculation of such member's Reclassified Tier 1 Member Obligation from the Board. Notwithstanding the preceding sentence, any Reclassified Tier 1 Member who does not satisfy his or her Reclassified Tier 1 Member Obligation shall only be entitled to the reduced plan benefit described in Subsection 3.28.820.E.

B.

The outstanding balance owing and payable by the Reclassified Tier 1 Member shall be determined by the Board's actuary. In the event there is any dispute regarding the obligation of such Reclassified Tier 1 Member or any other issue related to the liability associated with the reclassification of his or her Tier 2

service to Tier 1 service, the Board shall determine the issue based on the relevant information presented to the Board. Any decision made by the Board shall be final and binding.

C.

Subject to any limits on annual contributions imposed by Section 415 of the Internal Revenue Code of 1986, as amended, the Reclassified Tier 1 Member must satisfy the outstanding balance of his or her Reclassified Tier 1 Member Obligation under Section 3.28.200.A.1, as determined by the Board's actuary, through either a transfer or rollover from the employee's Internal Revenue Code Section 457(b) deferred compensation plan account or through a lump-sum after-tax payment.

D.

In order for a Reclassified Tier 1 Member to satisfy his or her outstanding Reclassified Tier 1 Member Obligation, the member must make the payment in the time and manner established by the Board; provided however, the entire outstanding liability must be paid on or before the later of sixty (60) calendar days following the date of separation from City service or receipt of the final remaining balance calculation of such member's Reclassified Tier 1 Member Obligation from the Board. Notwithstanding the preceding sentence, any Reclassified Tier 1 Member who does not satisfy his or her Reclassified Tier 1 Member Obligation shall only be entitled to the reduced plan benefit in Subsection 3.28.820.E.

E.

If a Reclassified Tier 1 Member fails to satisfy or her Reclassified Tier 1 Member Obligation within sixty (60) calendar days from the later of his or her date of separation from City service or receipt of the final remaining balance calculation of such member's Reclassified Tier 1 Member Obligation from the Board, the Reclassified Tier 1 Member shall only receive a portion of the Tier 1 benefit provided under this Plan that is the actuarial equivalent (as determined in the sole discretion of the Boards in consultation with their actuaries) of the amount such Reclassified Tier 1 Member paid for under the applicable provisions of this Plan.

(Ords. 30145, 30183.)