§ 12-126. Definitions.

As used in this article, unless otherwise defined or required by the context, the following words and phrases shall have the meanings indicated:

"Actuarial equivalent" shall mean that any benefit payable under the terms of this retirement system in a form other than the normal form of benefit, shall have the same actuarial present value on the date payment commences as the normal form of benefit and shall reflect applicable cost of living increases and annual increases. For purpose of establishing the actuarial present value of any form of payment, all future payments shall reflect applicable cost of living increases and annual increases, and shall be discounted for interest and mortality by using the interest rate and the annuity mortality table provided in Internal Revenue Service rules. For purposes of a lump sum distribution, the actuarial present value shall be determined on the basis of the same annuity mortality table as described above and the 30-year treasury security interest rate for the month prior to the member's date of termination.

"Agreement" shall mean this written instrument setting forth the provisions of the retirement system.

"Average monthly earnings" shall mean 1/12 of the arithmetic average of annual earnings for the highest 2 years preceding the actual retirement or termination date of a member or the date the member begins participation in the deferred retirement option plan, whichever is earlier. Notwithstanding the preceding sentence, effective April 14, 2015, average monthly earnings for police officers who did not attain the normal retirement date prior to April 14, 2015, shall mean 1/12 of the arithmetic average of annual earnings for the 3 consecutive years immediately preceding the actual retirement or termination date of the member, or the date the member begins participation in the deferred retirement option plan, whichever is earlier; provided, the average monthly earnings of any such police officer who retires prior to October 1, 2017, shall be the greater of 1/12 of the arithmetic average of annual earnings for the highest 2 years preceding the actual retirement or termination date of a member, or the date the member begins participation in the deferred retirement option plan, whichever is earlier, or 1/12 of the arithmetic average of annual earnings for the 3 consecutive years immediately preceding the actual retirement or termination date of the member, or the date the member begins participation in the deferred retirement option plan, whichever is earlier. The limitation on compensation for an employee who was a member of the retirement system prior to October 1, 1996, shall not be less than the amount which was allowed to be taken into account under this section as in effect on July 1, 1993.

"Beneficiary" shall mean the person entitled to receive any benefits hereunder at the death of a member who has been designated in writing by the member and filed with the board. If no such designation is in effect at the time of death of the member, or if no person so designated is living at that time, the board shall have the authority to designate the beneficiary as provided herein.

"Board" shall mean the board of pension trustees, which shall administer and manage the system provided in this article and serve as trustee of the fund.

"Continuous service" shall mean the aggregate number of years of service by a member (expressed as years and completed months), where service for each period of employment shall start from the date the member entered employment as an employee and end on the date the member begins participation in the deferred retirement option plan or the date the member's employment shall be terminated by death, retirement, resignation or discharge; however, there shall be no service credit for periods of employment for which the member accepted a refund of his contributions and such contributions are not repaid, with interest as determined by the board, within 6 months following the date he was last rehired. The continuous service of any member shall not be deemed to be interrupted by:

(a)

Any authorized leave of absence or vacation, provided that all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules. However, the member shall not receive more than 6 months of continuous service credit for benefit computation purposes for the period of such leave of absence or vacation.

(b)

Any service, voluntary or involuntary in the armed forces of the United States, provided the member is legally entitled to re-employment under the provision of the Uniformed Services Employment and Re-employment Rights Act (USERRA) and any amendment thereto, or any law applicable to such re-employment, and provided, further, that the member shall apply for re-employment within 3 months following termination of such service. Notwithstanding any provision of this retirement system to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with section 414(u) of the Internal Revenue Code.

"Earnings," for firefighters, shall mean the fixed monthly remuneration including basic wages, EMT and paramedic certification pay, hazardous materials certification pay, fire inspector certification pay, fire company officer certification pay, fire instructor certification pay, technical rescue technician certification pay, assignment pay, acting in a higher capacity pay, stand by duty pay, and continuous service benefit (annual longevity) paid to a member, but excluding overtime, holiday pay, state incentive pay, bonuses, accumulated sick and annual leave and any other payments. Earnings shall be calculated prior to salary reductions for contributions picked up by the city pursuant to section 12-133(5) or deferred compensation pursuant to section 457 of the Internal Revenue Code. Earnings shall include any elective deferral (as defined in code section 402(e)(3) of the Internal Revenue Code), and any amount which is contributed or deferred by the employer at the election of the member and which is not includible in the gross income of the member by reason of section 125 or 457 of the Internal Revenue Code. For limitation years beginning on and after January 1, 2001, for the purposes of applying the limitations described in subsection (1) of section 12-152 hereof, earnings for any limitation year shall include elective amounts that are not includible in the gross income of the member by reason of section 132(f)(4) of the Internal Revenue Code.

Effective October 1, 2004, "earnings," for police officers, shall mean the total cash remuneration paid by the primary employer for services rendered, assignment pay, crash-free bonus and continuous service benefit (annual longevity) paid to a member, including up to 300 hours of overtime compensation earned by a member in each 12-month period during the 24 consecutive months (36 consecutive months if 3 consecutive year definition of average monthly earnings applies) immediately preceding the member's date of retirement or termination of employment, whichever occurs first. If a member does not earn 300 hours of overtime compensation in each 12-month period during the 24 consecutive months (36 consecutive months if 3 consecutive year definition of average monthly earnings applies) immediately preceding the member's date of retirement or termination of employment, then up to 100 hours of overtime compensation earned by the member prior to the 24 consecutive months (36 consecutive months if 3 consecutive year definition of average monthly earnings applies) immediately preceding the member's date of retirement or termination of employment shall be added to the overtime compensation earned by a member in each of the final 2 consecutive 12-month periods (final 3 consecutive 12-month periods if 3 consecutive year definition of average monthly earnings applies) to make up to 300 hours. Provided, in no event shall the total amount of overtime compensation included in a member's earnings exceed 300 hours in any 12-month period; and overtime compensation, added to a member's earnings as provided above, shall be at the member's average overtime rate for the 24 consecutive month period (36 consecutive month period if 3 consecutive year definition of average monthly earnings applies) immediately preceding the member's date of retirement or termination of employment, whichever occurs first. Payments for extra duty or special detail work performed on behalf of an outside employer, overtime in excess of 300 hours, other bonuses or accumulated sick and annual leave and other payments will not be included. Notwithstanding the foregoing, effective April 14, 2015, earnings for police officers who did not attain the normal retirement date prior to April 14, 2015, shall not include the continuous service benefit (annual longevity); and for police officers who become members of the plan on or after April 14, 2015, earnings shall not include any overtime compensation. Total cash remuneration shall be calculated prior to salary reductions for contributions picked up by the city pursuant to section 12-133(5) or deferred compensation pursuant to section 457 of the Internal Revenue Code. Earnings shall include any elective deferral (as defined in code section 402(e)(3) of the Internal Revenue Code), and any amount which is contributed or deferred by the employer at the election of the member and which is not includible in the gross income of the member by reason of section 125 or 457 of the Internal Revenue Code. For limitation years beginning on and after January 1, 2001, for the purposes of applying the limitations described in subsection (1) of section 12-152 hereof, earnings shall include for any limitation year, elective amounts that are not includible in the gross income of the member by reason of section 132(f)(4) of the Internal Revenue Code.

"Effective date" shall mean the date on which Ordinance Number 1806 became effective.

"Employees" shall mean all regular and all probationary full-time employees of the city classified as sworn police officers or firefighters, but shall exclude all civilian members thereof.

"Fiscal agent" shall mean any person or entity designated to serve as investment agent or custodian of the fund of the retirement system.

"Fund" shall mean the trust fund established in this article as part of the plan.

"Member" shall mean an employee who fulfills the prescribed participation requirements.

"System" shall mean the city police and firefighters' retirement system as contained in this article and all amendments thereto.

(Code 1966, § 17-31; Ord. No. 4011, § 1, 7-14-92; Ord. No. 4281, § 2, 8-27-96; Ord. No. 4334, § 1, 6-24-97; Ord. No. 4471, § 1, 10-26-99; Ord. No. 4504, § 1, 4-11-00; Ord. No. 4523, § 1, 7-11-00; Ord. No. 4838, § 1, 12-14-04; Ord. No. 5154, § 1, 11-9-10; Ord. No. 5166, § 1, 5-10-11; Ord. No. 5299, § 1, 4-14-15)