Page 1 of 55 Chapter 141 - RETIREMENT [1] Footnotes: ------ Cross reference Any ordinance prescribing the number, classification or compensation of any county officers or employees saved from repeal, 1-20(12); compensation, ch. 29. Sec. 141-1. - Establishment of retirement system. The county employees' retirement system established effective December 1, 1944, is hereby continued and restated under authority of the Home Rule Charter for the county and Section 12a of Act No. 156 of the Public Acts of Michigan of 1851 (MCL 46.12a, MSA 5.333), as amended. (Ord. No. 94-747, 1.01, eff. 12-2-94) Sec. 141-2. - Effect of collective bargaining agreements. A conflict between the provisions of the retirement chapter and the provisions of a collective bargaining agreement shall be resolved, to the extent of the conflict, in accordance with the collective bargaining agreement. (Ord. No. 94-747, 1.03, eff. 12-2-94) Sec. 141-3. - Definitions. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Accumulated member contributionsmeans the balance in the individual's account in the reserve for accumulated member contributions. Average final compensationmeans the average compensation paid a member determined in accordance with the benefit plan applicable to the member's coverage group. Compensationmeans the salary and wages paid a member for personal services rendered the county while a member of the retirement system. Salary and wages shall include only those items of remuneration which are specifically stated to be included in the benefit plan specified for the member's coverage group. Countymeans the County of Wayne, State of Michigan, including its offices, boards and departments.
Page 2 of 55 Coverage groupmeans a group of individuals for the purpose of determining the benefits provided the individuals under this chapter. Employer accountmeans the balance in the individual's account in the reserve for defined contribution employer contributions. Membermeans an individual entitled to membership in the Wayne County employees' Retirement System as a result of the individual's employment with the county, its offices, departments, agencies, instrumentalities, authorities, and/or affiliates. Member accountmeans the balance in the individual's account in the reserve for member accounts. Pensionmeans a series of monthly payments by the retirement system. Payment may be for a temporary period or throughout the future life of a retired member or survivor pension beneficiary. Participantmeans an individual entitled to participate in the Wayne County Employees' Retirement System as a result of the individual's employment by the Wayne County Airport Authority and/or Detroit Wayne Mental Health Authority. Participant accountmeans the balance in the individual's account in reserve for a participant. Refund beneficiarymeans the individuals named by a member, former member, vested former member or retired member for the purpose of being paid accumulated member contributions, member account and employer account in the event of the death of the member, former member, vested former member or retired member as provided in this chapter. Retired membermeans defined benefit member who is being paid a pension on account of the individual's membership in the retirement system, or a member who retired from the county with a defined contribution plan. Survivor pension beneficiarymeans an individual who is being paid or who is designated to be paid a pension in the event of the death of a member, vested former member or retired member as provided in this chapter. Vested former membermeans a former member who meets the requirements of a vested termination eligibility program.
Page 3 of 55 Worker's compensation benefitmeans wage loss benefits under the Michigan Worker's Compensation Act on account of an injury or disease resulting from county employment. Redemptions and voluntary pay agreements of a claim for worker's compensation liability are not admissions of worker's compensation liability and may only be considered worker's compensation upon review of all facts and circumstances. Amounts paid for loss of a specific body part or for bona fide medical expenses shall not be considered a worker's compensation benefit. (Ord. No. 94-747, 2.01 2.13, eff. 12-2-94; Ord. No. 2014-679, 1, 11-20-14) Cross reference Definitions generally, 1-2. Sec. 141-4. - Membership of retirement system. (a) Inclusion; membership form. An individual who is employed by the county shall be a member of the retirement system unless employed in an excluded position described in subsection (b) of this section. Bailiffs who are eligible for membership pursuant to Act No. 171 of the Public Acts of Michigan of 1962 (MCL 600.7651), as amended, or Act No. 198 of the Public Acts of Michigan of 1963 (MCL 600.2576), as amended. A member shall file a completed membership form with the retirement system within ten days of last becoming a member of the retirement system. (b) Positions excluded from membership.excluded positions are: (4) Positions which are compensated on a basis not subject to withholding of federal income tax or FICA tax. A position held by an individual employed by the county under an employment contract, unless the individual is specifically included in membership in the retirement system pursuant to their employment contract. A position held by a retired member. A position which is temporary or seasonal as defined in the county personnel and salary plan. (5)
Page 4 of 55 The position of appointed aide to a member of the county board of commissioners, except where the appointed aide is already a member of the retirement system, or where the individual is specifically included in membership in the retirement system pursuant to their employment contract, and that contract has been approved by the chairperson of the county commission. (6) A position with an authority whose employees are deemed to be participants. (c) Termination of membership.an individual shall cease to be a member upon separation of service with the county prior to vesting, or upon becoming employed in an excluded position. (Ord. No. 94-747, 3.01 3.03, eff. 12-2-94; Ord. No. 2000-536, 1, eff. 9-7-00; Ord. No. 2002-1147, 1, eff. 1-1-03; Ord. No. 2014-679, 1, 11-20-14) Sec. 141-5. - Credited service. (a) (b) Conditions for crediting service.personal service rendered the county while a member shall be credited to the member's individual credited service account in accordance with the rules of the retirement commission. Service shall be credited to the nearest 1/12 year. In no case shall more than one year of service be credited on account of all service rendered by a member in a calendar year. A member who renders ten or more days of service in a calendar month shall be credited with service for that month. The retirement commission may credit a full year of service to a member who renders at least 10/12 of a year of credited service during a calendar year. Forfeiture of credited service. Credited service shall be forfeited upon termination of membership unless the former member is a vested former member. Credited service of a vested former member for service rendered during a period of required defined benefit member contributions shall be forfeited upon withdrawal from the retirement system of the vested former member's accumulated member contributions. If as a result of the withdrawal the vested former member has insufficient credited service remaining for vested former member status, the vested former member shall become a former member and all credited service shall be forfeited. Credited service of a vested former member for service rendered during a period of required defined contribution member contributions shall be forfeited upon withdrawal of the vested former member's member account. If as a result of the withdrawal the
Page 5 of 55 vested former member has insufficient credited service remaining for vested former member status, the vested former member shall become a former member and all credited service shall be forfeited. (c) Forfeited contributory credited service; reinstatement program 1.A member may reinstate forfeited credited service for service rendered during a period of required defined benefit or defined contribution member contributions by satisfying each of the following conditions: The member pays the retirement system the total amount previously withdrawn, plus compound interest from the dates of withdrawal to the dates of repayment at rates established by the retirement commission. Repayment is initiated and completed within the time periods established by the retirement commission. The time period for completion of repayment shall not be less than one year following the date of resumption of membership. (d) Forfeited noncontributory credited service; reinstatement program 1.A member of a defined benefit plan shall have forfeited credited service for service rendered during a period in which the member was not required to contribute to the retirement system reinstated upon acquiring three years of credited service after resumption of membership. (Ord. No. 94-747, 4.01, 4.02, 5.01, 6.01, eff. 12-2-94) Sec. 141-6. - Military service; credited service. (a) Credit for intervening military service.a member who leaves the employ of the county to serve in any armed service of the United States, during time of declared war or period of national emergency or compulsory military service recognized by the retirement commission, shall be granted up to six years of credited service for periods of active duty lasting 30 or more days, if each of the following conditions are satisfied: The period of military service has not and cannot be used under another retirement system for the purpose of obtaining or increasing a benefit from that retirement system. No more than six years of credited service shall be granted on account of all military service of the member. The member returns to county employment in a position entailing membership in the retirement system within one year from the date military service terminates, or within 90 days of discharge from a hospital if found by the retirement commission to have been hospitalized on the date military service terminates on account of an injury or disease resulting from the military service.
Page 6 of 55 (b) Credit for nonintervening military service; purchase program 1.A member who has served in any armed service of the United States, during time of declared war or period of national emergency or compulsory military service recognized by the retirement commission, shall be granted up to six years of credited service for periods of active duty lasting 30 or more days, if each of the following conditions are satisfied: (4) (5) The period of military service has not and cannot be credited under the intervening military service provisions of subsection (a) of this section. The period of military service has not and cannot be used under another retirement system for the purpose of obtaining or increasing a benefit from that retirement system. The member pays the retirement system 50 percent of the increase in the actuarial present value of retirement system benefits, as determined by the retirement system, resulting from the purchase of credited service. Credited service shall be purchased in one-month increments. Twelve months of purchased service are required for one year of credited service. Military service purchase program 1 is specified for the member's coverage group. (c) Credit for nonintervening military service; purchase program 2.A member who has served in any armed service of the United States, during time of declared war or period of national emergency or compulsory military service recognized by the retirement commission, shall be granted up to six years of credited service for periods of active duty lasting 30 or more days, if each of the following conditions are satisfied: (4) (5) The period of military service has not and cannot be credited under the intervening military service provisions of subsection (a) of this section. The period of military service has not and cannot be used under another retirement system for the purpose of obtaining or increasing a benefit from that retirement system. The member pays the retirement system 100 percent of the increase in the actuarial present value of retirement system benefits, as determined by the retirement system, resulting from the purchase of credited service. Credited service shall be purchased in one-month increments. Twelve months of purchased service are required for one year of credited service. Military service purchase program 2 is specified for the member's coverage group. (Ord. No. 94-747, 7.01 7.03, eff. 12-2-94) Sec. 141-7. - Coverage groups.
Page 7 of 55 (a) Included groups.the coverage groups are: (4) (5) (6) (7) Members of a bargaining unit certified by the state employees relations commission (one group for each bargaining unit). Executive group employees, as certified by the county executive. Exempt employees who are not executive group employees, as certified by the county executive. Bailiffs who are members of the retirement system pursuant to Act No. 171 of the Public Acts of Michigan of 1962 (MCL 600.7651, MSA 27A.7651). Bailiffs who are members of the retirement system pursuant to Act No. 198 of the Public Acts of Michigan of 1963 (MCL 600.2576, MSA 27A.2576). Members employed by the legislative branch of the county, as certified by the board of commissioners. Members who are not included in one of the preceding classifications. (b) Choice of retirement plan. All new employees hired and former employees re-employed, reinstated or rehired shall become members of the county's designated retirement plan unless otherwise specified in the applicable collective bargaining agreement or employee benefits plan. (Ord. No. 94-747, 8.01, 8.02, eff. 12-2-94; Ord. No. 2003-124, 1, eff. 3-20-03; Ord. No. 2014-679, 1, 11-20-14) Sec. 141-8. - Changes in specified benefits for a coverage group. The terms and conditions governing a change in the benefits specified for a coverage group shall be as contained in the collective bargaining agreement or other document authorizing the change. A certified copy of the agreement or document shall be filed with the retirement system within ten days of its effective date by the county executive. (Ord. No. 94-747, 9.01, eff. 12-2-94) Sec. 141-9. - Normal retirement. The basic conditions for normal retirement shall be as follows: A member or vested former member may retire normally upon completion of the following requirements: a.
Page 8 of 55 A written application for normal retirement, in the form prescribed by the retirement system, has been filed with the retirement system not less than 30 days nor more than 90 days prior to the date the pension is to commence. b. c. Membership is terminated prior to the selected date of retirement. The member or vested former member meets the requirements for normal retirement, prior to the selected date of retirement, a service and/or age requirement for normal retirement eligibility specified in the benefit plan applicable to the member's or vested former member's coverage group or the special temporary early retirement provisions of an applicable collective bargaining agreement. The amount of a normal retirement pension is determined in accordance with the member's or vested former member's coverage group and benefit plan. (Ord. No. 94-747, 10.01, eff. 12-2-94) Sec. 141-10. - Defined benefit plan 1. (a) (b) Compensation.Compensation shall include, to the extent not excluded by a collective bargaining agreement or resolution of the county board of commissioners, base salary and wages, overtime, premium pay, cost-of-living payments, holiday pay, annual leave, payment for annual leave and sick leave banks. Compensation shall also include salary or wages deferred because of participation in a plan operated pursuant to section 457 of the Internal Revenue Code and reductions in salary or wages due to participation in a plan operated pursuant tosection 125of the Internal Revenue Code. Average final compensation.average final compensation is one-sixtieth of the aggregate amount of compensation paid a member during the five years of credited service in which the aggregate amount of compensation is greatest. If the member has less than five years of credited service, average final compensation is the aggregate amount of compensation paid the member divided by the member's credited service. For a coverage group which has collectively bargained this final average compensation or is granted the benefit in an approved benefit package, average final compensation is one-quarter of the aggregate amount of compensation paid a member during the four years of credited service in which the aggregate amount of compensation is greatest. If the member has less than four years of credited service, average final compensation is the aggregate amount of compensation paid the member divided by the member's credited service.
Page 9 of 55 (c) Normal retirement service and/or age requirement. For a coverage group which has collectively bargained this service and age requirement or has had it made applicable by a resolution of the county commission, either: a. b. Twenty-five or more years of credited service; or Five or more years of credited service and age 60 years or older. For a coverage group which has collectively bargained this service and age requirement or has it made applicable by a resolution of the county commission: a. b. c. Twenty-five or more years of credited service and age 50 years or older; or Five or more years of credited service and age 60 years or older; or Thirty years of credited service regardless of age. For all other coverage groups, the service and age requirement for normal retirement is either: a. b. Twenty-five or more years of credited service and age 50 years or older; or Five or more years of credited service and age 60 years or older. (d) Disability retirement service requirement. The service requirement for non-duty disability retirement is ten or more years of credited service. For a coverage group that has collectively bargained this disability eligibility or is granted the benefit in an approved benefit package, the service requirement for a non-duty disability retirement is eight or more years of service. The service requirement is waived if the retirement commission finds the disability to be a duty-disability where the disability is the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation benefits are paid on account of the same disability. (e) Disability retirement pension amount. The amount of a disability retirement pension, subject to the further offset prescribed in subsection (b) of this section and the provisions of subsection (c) of this section, is the member's accrued normal retirement pension determined in accordance withsection 141-11. Effective April 1, 2002, the amount of county financed pension prior to the retired member's satisfaction of a service and age requirement for a normal retirement shall not exceed the difference between 100 percent of index annualized average final compensation and the sum of (i) one-half of annual earnings from gainful occupation, business or employment following disability retirement, and (ii) disability paid to the
Page 10 of 55 retired member under the federal social security program. Indexed average final compensation for any calendar year means average final compensation times the consumer price index (U.S. average for all urban consumers) for the month of September in the preceding calendar year divided by the consumer price index for the month of September in the year preceding retirement. Cost of living increases in the amount of disability benefits paid the retired member under the social security program shall be disregarded. The retirement system shall calculate the initial amount of disability pension of the premise that the retired member is being paid federal social security disability benefits for a single person with average monthly earnings equal to the retired member's average final compensation. The retired member may submit evidence, satisfactory to the retirement system, of receipt of a lessor amount of social security disability pension or denial of social security disability pension and the amount of pension shall be recalculated taking the lessor amount or denial into account. The retirement system shall periodically request substantiated income information from disability retired members who are subject to the provisions of this section. Failure to provide the requested information within 90 days shall cause suspension of payment of the pension for the period of non-compliance. (4) If the retirement commission finds the disability to be the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation is paid on account of the same disability, the disability pension shall be calculated using an imputed credited service equal to the sum of: (i) the member's actual credited service, and (ii) the period, if any, between the date of disability retirement and the date the member would attain age 60 years and shall not be less than $400.00 per month. For a coverage group which has collectively bargained for this benefit, the amount of a duty disability retirement pension is equivalent to 75 percent of the employee's final average compensation, subject to the above offsets. The disability retirement effective date shall be the first of the month following the approval by the retirement commis sion. Subject to a majority vote by the retirement commission, the disability retirement effective date may be the date the application for disability retirement was filed with the retirement commission. (Ord. No. 94-747, 11.01 11.03, eff. 12-2-94; Ord. No. 2000-536, 1, eff. 9-7-00; Ord. No. 2003-124, 1, eff. 3-20-03; Ord. No. 2014-679, 1, 11-20-14) Sec. 141-11. - Normal retirement pension amount.
Page 11 of 55 (a) The amount of a normal retirement pension under form of payment option SL (straight life), subject to the limitation prescribed in subsection (b) and the offsets prescribed in subsections (c) and (d), is: (4) (5) (6) For a coverage group which has collectively bargained this formula or which has this formula made applicable by a resolution of the Wayne County Commission, 2.5 percent of average final compensation multiplied by credited service. For a coverage group which has collectively bargained this formula or which has this formula made applicable by a resolution of the Wayne County Commission, the sum of: (i) 2.0 percent of average final compensation multiplied by credited service but by not more than 20 years, and (ii) 2.5 percent of average final compensation multiplied by credited service in excess of 20 years, if any. For a coverage group which has collectively bargained this formula or which has this formula made applicable by a resolution of the Wayne County Commission, 2.65 percent of average final compensation multiplied by credited service. For members of the common pleas court bailiffs coverage group, the greater of: (i) 2.5 percent of average final compensation multiplied by credited service, or (ii) 100 percent of the annual compensation paid during the fiscal year preceding retirement. For all other coverage groups including, but not limited to, members of the circuit court bailiff's coverage group, 2.0 percent of average final compensation multiplied by credited service. All retired bailiffs from common pleas court or their survivor beneficiaries, as of the date of the adoption of these amendments shall have their retirement benefit recalculated with a factor of 2.5 percent, which increase shall not exceed $400.00 per month, to be effective on the first of the month following the adoption of these amendments. (Ord. No. 94-747, 11.04, eff. 12-2-94; Ord. No. 97-728, 2, eff. 12-18-97; Ord. No. 2000-536, 1, eff. 9-7-00; Ord. No. 2016-112, 1, 3-17-16) Sec. 141-12. - Vested termination service requirement. The service requirement for vested termination of membership is eight or more years of credited service. (Ord. No. 94-747, 11.05, eff. 12-2-94) Sec. 141-13. - Disability retirement service requirement.
Page 12 of 55 (a) (b) The service requirement for non-duty disability retirement is ten or more years of credited service. For a coverage group that has collectively bargained this disability eligibility or is granted the benefit in an approved benefit package, the service requirement for a non-duty disability retirement is eight or more years of service. The service requirement is waived if the retirement commission finds the disability to be a duty-disability where the disability is the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation benefits are paid on account of the same disability. (Ord. No. 94-747, 11.06, eff. 12-2-94; Ord. No. 2000-536, 1, eff. 9-7-00; Ord. No. 2014-679, 1, 11-20-14) Sec. 141-14. - Reserved. Editor's note Ord. No. 2014-679, 1, adopted November 20, 2014, repealed 141-14, which pertained to disability retirement pension amount and derived from Ord. No. 94-747, effective December 2, 1994; Ord. No. 2000-536, effective September 7, 2000 and Ord. No. 2003-124, effective March 20, 2003. Sec. 141-15. - Pre-retirement death; service and/or age requirement for automatic pension to spouse or children. The service and age requirement for an automatic pension to a surviving spouse or children under the provisions of section 141-27 in the event of the death of a member or vested former member is: Ten or more years of credited service; Five or more years of credited service and age 60 years or older; or Any amount of credited service if the member died from a personal injury or disease which the retirement commission finds to have been the natural and proximate result of the member's actual performance of duty as a county employee and worker's compensation is paid on account of the same injury or disease. (Ord. No. 94-747, 11.08, eff. 12-2-94) Sec. 141-16. - Pre-retirement death; amount of automatic pension to spouse or children.
Page 13 of 55 The amount of pension of a spouse is the deceased member's accrued normal retirement pension under form of payment option 2 (life payments with 100 percent continuation to survivor pension beneficiary). If the member died from a personal injury or disease which the retirement commission finds to have been the natural and proximate result of the member's actual performance of duty as a county employee and worker's compensation is paid on account of the same injury or disease, the amount of pension shall not be less than $400.00 per month. The amount of pension of an eligible child is an equal share with each other eligible child of 50 percent of the deceased member's accrued normal retirement pension. (Ord. No. 94-747, 11.09, eff. 12-2-94) Sec. 141-17. - Pre-retirement death; service and/or age requirement for pension to elective survivor pension beneficiary. The service and requirement for a pension to an elective survivor pension beneficiary under the provisions of section 141-28 is that the deceased member meets a service and age requirement for normal retirement. (Ord. No. 94-747, 11.10, eff. 12-2-94) Sec. 141-18. - Pre-retirement death; amount of pension to elective survivor pension beneficiary. The amount of pension is the deceased member's accrued normal retirement pension under form of payment option 2 (life payments with 100 percent continuation to survivor pension beneficiary). (Ord. No. 94-747, 11.11, eff. 12-2-94) Sec. 141-19. - Member contribution rates. Member contributions to the retirement system shall be made in accordance with the contribution rate schedule, from among the following schedules, made applicable to the member's coverage group by collective bargaining agreement or resolution of the county board of commissioners: 4.25 percent of the first $13,500.00 of annual compensation plus 6.25 percent of annual compensation in excess of $13,500.00;
Page 14 of 55 (4) 3.67 percent of the first $13,500.00 of annual compensation plus 5.67 percent of annual compensation in excess of $13,500.00; 3.0 percent of the first $13,500.00 of annual compensation plus 5.0 percent of annual compensation in excess of $13,500.00; The following rates based on credited service: Less than nine years Six percent of annual compensation; Nine years but less than 13 years Four percent of annual compensation; Thirteen years but less than 17 years Three percent of annual compensation; Seventeen or more years Two percent of annual compensation. (5) (6) Three percent of the first $4,200.00 of annual compensation plus 5.0 percent of annual compensation in excess of $4,200.00. 5.0 percent of annual compensation. (Ord. No. 94-747, 11.12, eff. 12-2-94; Ord. No. 2000-536, 1, eff. 9-7-00) Sec. 141-20. - Defined benefit plan 2. (a) (b) Compensation. Compensation shall include, to the extent not excluded by a collective bargaining agreement or resolution of the county board of commissioners, base salary and wages, overtime, premium pay, cost-of-living payments and holiday pay. Compensation shall also include salary or wages deferred because of participation in a plan operated pursuant to section 457 of the Internal Revenue Code and reductions in salary or wages due to participation in a plan operated pursuant to section 125 of the Internal Revenue Code. Average final compensation. Average final compensation is one-sixtieth of the aggregate amount of compensation paid a member during the five years of credited service in which the aggregate amount of compensation is greatest. If the member has less than five years of credited service, average final compensation is the aggregate amount of compensation paid the member divided by the member's credited service. For a coverage group which has collectively bargained this final average compensation or is granted the benefit in an approved benefit package, average final compensation is one-quarter of the aggregate amount of compensation paid a member during the four years of credited service in which
Page 15 of 55 the aggregate amount of compensation is greatest. If the member has less than four years of credited service, average final compensation is the aggregate amount of compensation paid the member divided by the member's credited service. (c) Normal retirement service and/or age requirement. The service and age requirement for normal retirement is either: Twenty-five or more years of credited service and age 55 years or older; Twenty or more years of credited service and age 60 years or older; or Eight or more years of credited service and age 65 years or older. (d) Normal retirement pension amount. (4) The amount of a normal retirement pension under form of payment option SL (straight life), subject to the limitation prescribed in subsection (d) of this section and the offsets prescribed in subsections (d) and (4) of this section, is the sum of (i) 1.0 percent of average final compensation multiplied by credited service but by not more than 20 years, and (ii) 1.25 percent of average final compensation multiplied by credited service in excess of 20 years. The amount of county-financed pension shall not exceed 75 percent of average final compensation. The amount of county-financed pension shall be reduced by the monthly equivalent, as determined by the retirement system, of any worker's compensation benefit paid on account of prior county employment. The amount of county-financed pension shall be reduced by the monthly equivalent, as determined by the retirement system, of any unemployment benefit paid on account of prior county employment. (e) (f) Vested termination service requirement. The service requirement for vested termination of membership is eight or more years of credited service. Disability retirement service requirement. The service requirement for non-duty disability retirement is ten or more years of credited service. For a coverage group that has collectively bargained this disability eligibility or is granted the benefit in an approved benefit package, the service requirement for a non-duty disability retirement is eight or more years of service.
Page 16 of 55 The service requirement is waived if the retirement commission finds the disability to be a duty-disability where the disability is the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation benefits are paid on account of the same disability. (g) Disability retirement pension amount. The amount of a disability retirement pension, subject to the further offset prescribed in subsection (g) of this section and the provisions of subsection (g) of this section, is the member's accrued normal retirement pension determined in accordance with subsection (d) of this section. The amount of county-financed pension prior to the retired member's satisfaction of a service and/or age requirement for normal retirement shall not exceed the difference between 100 percent of annualized average final compensation and the sum of (i) annual earnings from gainful occupation, business or employment following disability retirement, and (ii) disability benefits paid the retired member under the federal social security program. Cost-of-living increases in the amount of disability benefits paid the retired member under the federal social security program shall be disregarded. The retirement system shall calculate the initial amount of disability pension on the premise that the retired member is being paid federal social security disability benefits for a single person with average monthly earnings equal to the retired member's average final compensation. The retired member may submit evidence, satisfactory to the retirement system, of receipt of a lesser amount of social security disability pension or denial of a social security disability pension and the amount of pension shall be recalculated taking the lesser amount or denial into account. The retirement system shall periodically request substantiated income information from disability retired members who are subject to the provisions of this section. Failure to provide the requested information within 90 days shall cause suspension of payment of the pension for the period of noncompliance. If the retirement commission finds the disability to be the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation is paid on account of the same disability: a. The disability pension shall be calculated using imputed credited service equal to the sum of: (i) the member's actual credited service, and (ii) the period, if any, between the date of disability retirement and the date the member would attain age 60 years and shall not be less than $400.00 per month; or b.
Page 17 of 55 For a coverage group which has collectively bargained for this benefit, the amount of a duty disability retirement pension is equivalent to 75 percent of the employee's final average compensation. The disability retirement effective date shall be the first of the month following the approval by the retirement commission. Subject to a majority vote by the retirement commission, the disability retirement effective date may be the date the application for disability retirement was filed with the retirement commission. (h) Pre-retirement death; service and/or age requirement for automatic pension to spouse or children. The service and age requirement for an automatic pension to a surviving spouse or children under the provisions of section 141-27 in the event of the death of a member or vested former member is: Ten or more years of credited service; Eight or more years of credited service and age 65 years or older; or Any amount of credited service if the member died from a personal injury or disease which the retirement commission finds to have been the natural and proximate result of the member's actual performance of duty as a county employee and worker's compensation is paid on account of the same injury or disease. (i) (j) (k) (l) Pre-retirement death; amount of automatic pension to spouse or children. The amount of pension of a spouse is the deceased member's accrued normal retirement pension under form of payment option 2 (life payments with 100 percent continuation to survivor pension beneficiary). The amount of pension of an eligible child is an equal share with each other eligible child of 50 percent of the deceased member's accrued normal retirement pension. Pre-retirement death; service and/or age requirement for pension to elective survivor pension beneficiary. The service and age requirement for a pension to an elective survivor pension beneficiary under the provisions of section 141-28 is that the deceased member meets a service and/or age requirement for normal retirement. Pre-retirement death; amount of pension to elective survivor pension beneficiary. The amount of pension is the deceased member's accrued normal retirement pension under form of payment option 2 (life payments with 100 percent continuation to survivor pension beneficiary). Member contribution rates. Members are not required to contribute to the retirement system. (Ord. No. 94-747, 12.01 12.12, eff. 12-2-94; Ord. No. 2000-536, 1, eff. 9-7-00; Ord. No. 2014-
Page 18 of 55 679, 1, 11-20-14) Sec. 141-21. - Defined contribution plans. (a) (b) Compensation. Compensation shall include, to the extent not excluded by a collective bargaining agreement or resolution of the county board of commissioners, base salary and wages, overtime, premium pay, cost-of-living payments and holiday pay. Compensation shall also include salary or wages deferred because of participation in a plan operated pursuant to section 457 of the Internal Revenue Code and reductions in salary or wages due to participation in a plan operated pursuant to section 125 of the Internal Revenue Code. Normal retirement service and/or age requirement. The service and age requirement for normal retirement is either: (4) Twenty-five or more years of credited service; or Twenty-five or more years of credited service and age 55 or older; or Twenty or more years of credited service and age 60 years or older; or Eight or more years of credited service and age 65 years or older. (c) (d) (e) Normal retirement pension amount. A member or participant shall receive distribution of his/her account and vested interest in his/her employer account from the defined contribution trust beginning as soon as reasonably practicable following the settlement date or the date his/her application for distribution is filed with the administrator. Vested termination service requirement. The service requirement for vested termination of membership is two or more years of credited service for the executive coverage group. The service requirement for vested termination of membership is three years of credited service for all other coverage groups, unless otherwise specified in the applicable collective bargaining agreement or employee benefits plan. The service requirement is waived if the county executive provides a written certification that the termination is involuntary. Disability service requirement. The service requirement for non-duty disability retirement is ten or more years of credited service. For a coverage group that has collectively bargained this disability eligibility or is granted the benefit in an approved benefit package, the service requirement for a non-duty disability retirement is eight or more years of service.
Page 19 of 55 The service requirement is waived if the retirement commission finds the disability to be a duty-disability where the disability is the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation benefits are paid on account of the same disability. (f) The amount of a disability retirement pension is: The value of a member or participant's account and vested interest in his/her employer account from the defined contribution trust, after all outstanding loans against this account have been repaid. For a coverage group which has collectively bargained for this benefit, the amount of a duty disability retirement pension is equivalent to 75 percent of the employee's final average compensation. Additionally, the entire vested participant account shall be transferred to the retirement system reserve for pension payments as well as any nonvested funds. The disability retirement effective date shall be the first of the month following the approval by the retirement commission. Subject to majority vote by the retirement commission, the disability retirement effective date may be the date the application for disability retirement was filed with the retirement commission. Additionally, the entire member's account, including both employee and employer vested and non-vested contributions shall be transferred to the retirement system reserve for pension payments. (g) (h) Pre-retirement death; service requirement for pension to designated survivor pension beneficiary. The service requirement for payment of a pension to a designated survivor pension beneficiary under the provisions of section 141-28 in the event of the death of a member or vested former member is ten years of credited service. The service requirement is waived if the member died from a personal injury or disease which the retirement commission finds to have been the natural and proximate result of the member's actual performance of duty as a county employee and worker's compensation is paid on account of the same injury or disease. Pre-retirement death; amount of pension to designated survivor pension beneficiary. The value of a member or participant's account and vested interest in his/her employer account from the defined contribution trust, after all outstanding loans against this account have been repaid, will be paid to his/her designated beneficiary. (i)
Page 20 of 55 Member or participant contribution rates. Member or participant contributions to the retirement system shall be made in accordance with the contribution rate schedule, made applicable to the member's or participant's coverage group by collective bargaining agreement, benefit plan or ordinance. (j) County contribution rates. County contributions to the retirement system shall be made in accordance with the contribution rate schedule, from among the following schedules, made applicable to the member's or participant's coverage group by the applicable collective bargaining agreement, benefit plan or ordinance. In no case shall the aggregate amount of contribution on behalf of a member exceed the maximum contribution permitted under the provisions of the Internal Revenue Code applicable to the retirement system. (Ord. No. 94-747, 14.01 14.10, eff. 12-2-94; Ord. No. 2000-536, 1, eff. 9-7-00; Ord. No. 2003-124, 1(4), eff. 3-20-03; Ord. No. 2014-679, 1, 11-20-14) Sec. 141-22. - Defined benefit plan 3. (a) (b) Compensation. Compensation shall include, to the extent not excluded by a collective bargaining agreement or resolution of the county board of commissioners, base salary and wages, overtime, premium pay, cost-of-living payments, holiday pay, and payments for up to 320 hours of unused sick leave and 120 hours of unused vacation banks. Compensation shall also include salary or wages deferred because of participation in a plan operated pursuant to section 457 of the Internal Revenue Code and reductions in salary or wages due to participation in a plan operated pursuant to section 125 of the Internal Revenue Code. Average final compensation. Average final compensation is one-sixtieth of the aggregate amount of compensation paid a member during the five years of credited service in which the aggregate amount of compensation is greatest. If the member has less than five years of credited service, average final compensation is the aggregate amount of compensation paid the member divided by the member's credited service. For a coverage group which has collectively bargained this final average compensation or is granted the benefit in an approved benefit package, average final compensation is ¼ of the aggregate amount of compensation paid a member during the four years of credited service in which the aggregate amount of compensation is greatest. If the member has less than four years of credited service, average final compensation is the aggregate amount of compensation paid the member divided by the member's credited service
Page 21 of 55 (c) Normal retirement service and/or age requirement. The service and age requirement for normal retirement is either: Twenty-five or more years of credited service and age 55 years or older; Twenty or more years of credited service and age 60 years or older; or Five or more years of credited service and age 65 years or older. (d) Normal retirement pension amount. (4) The amount of a normal retirement pension under form of payment option SL (straight life), subject to the limitation prescribed in subsection (d) of this section and the offsets prescribed in subsections (d) and (4) of this section, is the sum of (i) 1.5 percent of average final compensation multiplied by credited service but by not more than 20 years, and (ii) 2.0 percent of average final compensation multiplied by up to five years of credited service in excess of 20 years; and (iii) 2.5 percent of average final compensation multiplied by credited service in excess of 25 years. The amount of county-financed pension shall not exceed 75 percent of average final compensation. The amount of county-financed pension shall be reduced by the monthly equivalent, as determined by the retirement system, of any worker's compensation benefit paid on account of prior county employment. The amount of county-financed pension shall be reduced by the monthly equivalent, as determined by the retirement system, of any unemployment benefit paid on account of prior county employment. (e) (f) Vested termination service requirement. The service requirement for vested termination of membership is eight or more years of credited service. Disability retirement service requirement. The service requirement for non-duty disability retirement is ten or more years of credited service. For a coverage group that has collectively bargained this disability eligibility or is granted the benefit in an approved benefit package, the service requirement for a non-duty disability retirement is eight or more years of service. The service requirement is waived if the retirement commission finds the disability to be a duty-disability where the disability is the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation benefits are paid on account of the same disability. (g)
Page 22 of 55 Disability retirement pension amount. The amount of a disability retirement pension, subject to the further offset prescribed in subsection (g) of this section and the provisions of subsection (g) of this section, is the member's accrued normal retirement pension determined in accordance with subsection (d) of this section. Effective April 1, 2002, the amount of county-financed pension prior to the retired member's satisfaction of service and/or age requirement for normal retirement shall not exceed the difference between 100 percent of index annualized average final compensation and the sum of (i) one-half of annual earnings from gainful occupation, business or employment following disability retirement, and (ii) disability paid to the retired member under the federal social security program. Indexed average final compensation for any calendar year means average final compensation times the consumer price index (U.S. average for all urban consumers) for the month of September in the preceding calendar year divided by the consumer price index for the month of September in the year preceding retirement. Cost of living increases in the amount of disability benefits paid the retired member under the social security program shall be disregarded. The retirement system shall calculate the initial amount of disability pension of the premise that the retired member is being paid federal social security disability benefits for a single person with average monthly earnings equal to the retired member's average final compensation. The retired member may submit evidence, satisfactory to the retirement system, of receipt of a lessor amount of social security disability pension or denial of social security disability pension and the amount of pension shall be recalculated taking the lessor amount or denial into account. The retirement system shall periodically request substantiated income information from disability retired members who are subject to the provisions of this section. Failure to provide the requested information within 90 days shall cause suspension of payment of the pension for the period of non-compliance. If the retirement commission finds the disability to be the natural and proximate result of actual performance of duty in the employ of the county and worker's compensation is paid on account of the same disability: a. The disability pension shall be calculated using an imputed credited service equal to the sum of: (i) the member's actual credited service, and (ii) the period, if any, between the date of disability retirement and the date the member would attain age 60 years and shall not be less than $400.00 per month; or b.