2013-29 ORDINANCE NO. 2013-29
AN ORDINANCE AMENDING CHAPTER 66, ARTICLES
II AND III, SECTIONS 66-41, 66-84, 66-147, 66-281, 66-323
AND 66-387, PERTAINING TO THE RETIREMENT
PLANS FOR GENERAL EMPLOYEES AND PUBLIC
SAFETY EMPLOYEES
BE IT ORDAINED, by the City Council of the City of Fairfax, that the following
specified Sections of Article II and Article III, Chapter 66, of the Code of the City of Fairfax,
Virginia, are hereby amended to read in their entirety as follows (additions are shown as
double-underlined text):
ARTICLE II. - RETIREMENT PLAN FOR GENERAL EMPLOYEES
Sec. 66-41. —Definitions.
For the purposes of this article, the following words and phrases shall have the
meanings respectively ascribed to them by this section, unless otherwise required by
the context:
Accumulated contributions means, for any participant as of any date, the total
obtained by accumulating each individual contribution of the participant, with interest
from the July 1 next following the date such contribution was made to the first day of
the month of the date as of which the computation is made. The interest to be credited
to each participant's contributions for each 12-month period commencing on July 1
and ending on the following June 30 shall be determined by the committee each year
on the basis of the actual net yield of the fund for such period, provided, however, that
in no event shall the rate of interest credited for any such 12-month period be less than
four percent per annum.
Actuarial equivalent means a benefit with a reserve equal to the reserve of
another benefit.
Average final compensation means for any participant, as of any date, the
average annual compensation of the participant during the three consecutive years of
his credited service during which his compensation was highest or during the entire
period of his credited service if less than three years. In the case of a part-time
participant, the annualized, full-time equivalent compensation shall be used in this
calculation in place of the actual annual compensation.
Beneficiary means any person who is receiving or designated to receive a plan
benefit by reason of the plan participation of another person.
City means the City of Fairfax, Virginia, or any municipal corporation
successor thereto, or the authority of the city having the power to appoint an employee
to office or employment.
Committee means the administrative committee provided for in division 9 of
this article.
Compensation means, for any eligible employee, the full base compensation
paid to him by the city excluding overtime or other compensation not a part of the set
scale for an established normal working period and excluding contributions by the city
to any employee benefit plan other than this plan. Compensation shall include, without
duplication, contributions picked up under subsection 66-192(c) on behalf of the
eligible employee, and shall include any salary deferrals made to plans maintained by
the city pursuant to section 125 or 132(f) of the IRS Code, but shall not include
contributions by the city pursuant to section 66-193. In cases where compensation
includes maintenance or other perquisites, the committee shall fix the value of that
part of the compensation not paid in money. Notwithstanding the foregoing,
"compensation" shall not include (1) any item not specified in section 1.415-2(d)(2) of
the treasury regulations or (2) any item which is listed in section 1.415-2(d)(3) of the
Treasury regulations. Furthermore, "compensation" shall include "differential pay"
within the meaning of section 414(u)(12) of the IRS Code paid to a participant
performing "qualified military service" within the meaning of section 414(u)(5) of the
IRS Code.
In addition to other applicable limitations set forth in the plan, and
notwithstanding any other provision of the plan to the contrary, for plan years
beginning on or after January 1, 1994, the annual compensation for each employee
taken into account under the plan shall not exceed the OBRA '93 annual compensation
limit. The OBRA '93 annual compensation limit is $150,000.00, as adjusted by the
Secretary of the Treasury for increases in the cost of living in accordance with section
401(a)(17)(b) of the IRS Code. The cost-of-living adjustment in effect for a calendar
year applies to any period, not exceeding 12 months, over which compensation is
determined (the determination period) beginning in such calendar year. If a
determination period consists of fewer than 12 months, the OBRA '93 annual
compensation limit will be multiplied by a fraction, the numerator of which is the
number of months in the determination period, and the denominator of which is 12.
For plan years beginning on or after January 1, 1994, any reference in this plan
to the limitation under section 401(a)(17) of the IRS Code shall mean the OBRA '93
annual compensation limit set forth in this provision.
If compensation for any prior determination period is taken into account in
determining a participant's benefits accruing in the current plan year,the compensation
for that prior determination period is subject to the OBRA '93 annual compensation
limit in effect for that prior determination period. For this purpose, for determination
periods beginning before the first day of the first plan year beginning on or after
January 1, 1994, the OBRA '93 annual compensation limit is $150,000.00.
The annual compensation of each participant taken into account in deterrllining
benefit accruals for any plan year beginning after December 31, 2001, shall not exceed
$200,000.00, as adjusted for cost-of-living increases in accordance with section
401(a)(17)(b) of the IRS Code. Annual compensation means compensation during the
plan year or the determination period. The cost-of-living adjustment in effect for a
calendar year applies to annual compensation for the determination period that begins
with or within such calendar year.
Contingent annuitant means the person designated by a participant to receive
retirement benefits, after the death of the participant, under the joint and last survivor
option of division 5 of this article.
Contributions means the payments to the fund by the city and/or the
participants as provided for in this article.
Credited service means, for any participant as of any date, the period or
periods prior thereto during which he shall have been in the full time employ of the
city as an eligible employee, exclusive of:
(a) Any period of employment prior to his date of becoming a participant if
he did not become a participant within 90 days after his earliest opportunity to
do so; and
(b) Subject to subsection (f) below, any period of employment prior to the
date of any withdrawal of the participant's accumulated contributions in
accordance with the provisions of division 7 of this article.
In addition to his period or periods of full-time employment, the credited
service of a participant shall include any period of his:
(c) Vacation, or any other absence from employment for which the
participant shall receive full compensation;
(d) Leave of absence without pay specifically authorized by the city under
general rules uniformly applicable to all employees similarly situated; and
(e) Service in the armed forces of the United States, provided the
participant entered such service directly from the employ of the city, was
honorably discharged from such service, and was reemployed by the city
during a period when his right to reemployment with the city was protected by
law, to the extent credit for service is required to be given pursuant to section
414(u) of the IRS Code and the Uniformed Services Employment and
Reemployment Rights Act.
(f) Service that was previously cancelled in accordance with section 66-
167, or not credited during a period of time classified by the city as "leave
without pay," and reinstated effective as of the earlier of the date of the
participant's cessation of the receipt of compensation following termination of
employment or completion of repayment of withdrawn contributions, under the
following conditions:
1. The participant has at least one month of "qualified 2004
service" within the meaning of this section 66-41 or section 66-281.
2. The participant has repaid all or a portion of the contributions
withdrawn plus interest on such contributions as determined in
subparagraph 3.
3. Interest has been charged on the participant's previously
withdrawn contributions at an annual rate of 5.0 percent or such other
rate as the committee may subsequently establish for these purposes
compounded biweekly. The interest has been charged from the date of
withdrawal to the earlier of the participant's termination of employment
or date of completion of the repayment.
4. Redeposit of the withdrawn contributions, plus interest, has
been made on or before the later of the following two dates:
(A) Five years after the participant has been reemployed by
the city, and
(B) December 31, 2009.
5. The service to be reinstated is not eligible for and has not been
credited under another retirement system (with the exception of the
Virginia Retirement System).
6. The participant has completed and executed in a timely manner
any and all forms the committee deems necessary for the reasonable
operation and administration of these service reinstatement provisions.
7. The participant has elected to repay the withdrawn contributions
in one of the following forms:
(A) A direct rollover from another employer's qualified
retirement plan or tax deferred annuity plan of the total amount
of the withdrawn contributions, plus interest;
(B) A direct rollover or direct transfer from an eligible
deferred compensation plan established pursuant to section
457(b) of the IRS Code of the total amount of the withdrawn
contributions, plus interest; or
(C) Pretax payments pursuant to one or more binding,
irrevocable payroll deduction authorizations between the city
and the participant. If the participant enters into such an
authorization, the participant contributions will be picked up by
the city, as described in section 414(h)(2) of the IRS Cede and
deducted from the pay of the contributing participant as a salary
reduction contribution and paid by the city to the trustee with
reasonable promptness.
8. If the participant elects to repay the withdrawn contributions by
pretax payments pursuant to subsection (f)7.(C), the minimum payment
per pay period shall be $20.00. Furthermore, if the participant ceases to
receive compensation from the city following termination of
employment and prior to completing the payment of the withdrawn
contributions, the service credit awarded shall be prorated based on the
payments made as of the date the participant ceases to receive
compensation from the city following termination of employment.
(g) Part-time employment, as provided for in the definition of "eligible
employee" in this section 66-41.
(h) Service credit that would have been credited prior to March 1, 2004,
had the plan permitted part-time employees to participate in the plan since
inception of the plan provided that:
1. The participant is employed as an eligible employee of the city
on March 1, 2004, and has at least one month of "qualified 2004
service."
2. The participant pays over to the trustee an amount equal to all
or a portion of the cost of the service determined at the full actuarial
rate for the cost of the service. The full, actuarial cost of the service
shall be determined in accordance with procedures adopted by the
committee intended to calculate the cost of the service in a uniform and
nondiscriminatory manner.
3. The individual makes an affirmative, irrevocable election to
purchase all or a portion of the service, in writing, in a form acceptable
to the committee, on or prior to February 28, 2005.
4. The individual completes the payment for the service within
five years of the date of the election by the participant to purchase the
service.
5. The service to be credited is not eligible for and has not been
credited under another retirement system (with the exception of the
Virginia Retirement System).
6. The participant has completed and executed in a timely manner
any and all forms the committee deems necessary for the reasonable
operation and administration of these service credit provisions.
7. The participant has elected to pay over the cost of the service in
one or more of the following forms:
(A) A direct rollover from another employer's qualified
retirement plan or tax deferred annuity plan;
(B) A direct rollover or direct transfer from an eligible
deferred compensation plan established pursuant to section
457(b) of the IRS Code; or
(C) Pretax payments pursuant to one or more binding,
irrevocable payroll deduction authorizations between the city
and the participant. If the participant enters into such an
authorization, the participant contributions will be picked up by
the city, as described in section 414(h)(2) of the IRS Code and
deducted from the pay of the contributing participant as a salary
reduction contribution and paid by the city to the trustee with
reasonable promptness.
8. If the participant elects to pay for the cost of the service by
pretax payments pursuant to subsection (h)6.(C), the minimum
payment per pay period shall be $20.00.
9. If a participant ceases to receive compensation from the city
after termination of employment prior to completing the purchase of
service, the service credit awarded shall be pro-rated based on the
payments made as of the date the participant ceases to receive
compensation from the city following termination of employment. In
the event of the participant's subsequent re-employment by the city
after cessation of receipt of compensation following termination of
employment and prior to completing the purchase of service, no
additional credit may be purchased pursuant to subsection (h).
Notwithstanding the foregoing, the participant may pay over to the
trustee, in one lump sum, an amount necessary to purchase the balance
of the credit for the service unpaid as of the date of the participant's
termination of employment.
10. All purchases of service credit and elections by participants
pursuant to subsection (h) shall be adjusted as necessary to ensure
compliance with section 415 of the IRS Code.
Solely for purposes of calculating a benefit (other than a disability retirement
allowance) becoming effective April 1, 1983, or later, the credited service of a
participant shall also include his completed months of unused sick leave at time of
termination of employment, based on 173 hours of unused sick leave constituting one
completed month; provided, in no event shall the inclusion of unused sick leave as
credited service affect the calculation of the participant's compensation or average
final compensation.
Eligible employee means any person regularly employed by the city, other than
a person who qualifies as an eligible employee under the retirement plan for police
and fire employees of the city, and other than a temporary employee, within the
meaning of section 66-2 of the City Code. In the discretion of the city council, eligible
employee may also mean the commissioner of the revenue, the city treasurer, the
general registrar of voters, and full-time employees reporting to the office of the
commissioner of the revenue, the treasurer's office, and the registrar's office. Prior to
March 1, 2004, an eligible employee must be employed by the city on a full-time
basis. From and after March 1, 2004, an eligible employee includes permanent part-
time employees. For the purposes of determining eligibility conditions and benefit
formulas, such individuals shall be treated as though their date of hire were the later of
March 1, 2004, and their actual date of hire into an eligible position. In the case of an
individual whose status is not clear, the committee shall determine their status.
Full-time equivalent percentage means 100 percent for a full-time employee,
and such lesser percentage as is applicable for a part-time employee.
Fund means the trust fund created under the terms of the trust agreement,
consisting of the cash, securities and other assets held by the trustee pursuant to the
terms of the plan.
Inflation index means the Consumer Price Index for All Urban Consumers, All
Items, U.S. City average, as published by the Bureau of Labor Statistics of the United
States Department of Labor.
IRS Code means the Internal Revenue Code of 1986, as amended from time to
time.
Participant means an eligible employee or a former eligible employee who has
become eligible to participate in the plan as provided in division 2 of this article, and
is prospectively entitled to future benefits under the terms of the plan.
Plan means the retirement plan for employees of the city, as now contained in
this article or as duly amended.
Plan year means the 12-month period ending on the last day of June.
Qualified 2004 service (for the purposes of the 2004 amendments) means
credited service earned on or after December 1, 2003, in direct connection with
employment as an eligible employee of the city.
Reserve means the present value of all payments to be made on account of any
plan benefit, based upon such reasonable tables of experience and interest as the
committee shall adopt, from time to time, after consulting with its actuary.
Social Security full retirement age means the age at which there is no reduction
in Social Security benefits based upon the following table:
Year Born Age for Full Benefits
1937 or earlier 65 years
1938 65 years, 2 months
1939 65 years, 4 months
1940 65 years, 6 months
1941 65 years, 8 months
1942 65 years, 10 months
1943-1954 66 years
1955 66 years, 2 months
1956 66 years, 4 months
1957 66 years, 6 months
1958 66 years, 8 months
1959 66 years, 10 months
1960 or later or later 67 years
Totally and permanently disabled means as set forth in subsection 66-84(b).
Trust agreement means the agreement entered into between the city and the
trustee pertaining to the administration of the fund.
Trustee means the financial institution appointed by council to hold in trust and
invest the fund, as provided for in division 8, which may, from time to time, be acting
in that capacity under the terms of the trust agreement.
Year of credited service means a plan year during which an eligible employee
is employed on a substantially full-time basis and makes the contributions required to
be made pursuant to section 66-192 for the entire year or otherwise receives credit for
credited service pursuant to this section 66-41. Notwithstanding the foregoing, for
purposes of determining the amount of a participant's retirement benefit pursuant to
sections 66-101, 66-102 and 66-104, a participant shall receive credit for onetwelfth
of a year of credited service for each month during which the participant Was an
eligible employee for the entire month, was employed on a substantially Ain-time
basis, made the contributions required to be made pursuant to subsection 66-192(c) for
the entire month or otherwise receives credit for credited service pursuant to this
section. In the case of eligible employees who are part-time employees, service credit
shall be initially calculated as though they were full-time employees for the entire
year. The resulting credited service shall then be adjusted for the individual's full-time
equivalent percentage. For example, an individual who is employed on a half time
basis would normally receive one half of a year of service credit for each year worked.
In no event shall the amounts of service credit in any year exceed the individual's full-
time equivalent percentage multiplied by 12 months.
(Code 1978, § 17-26; Ord. No. 2002-12, 6-11-2002; Ord. No. 2003-25, 12-9-2003;
Ord. No. 2004-2, 3-9-2004; Ord. No. 2004-20, 10-12-2004; Ord. No. 2009-25, 10-
13-2009)
Cross reference—Definitions generally, ,¢ 1-2.
Sec. 66-84. - Disability retirement
(a) A participant who becomes totally and permanently disabled after the
completion of five or more years of credited service, may retire from the employment
of the city on the first day of any month thereafter prior to his normal retirement date.
(b) The committee shall determine whether a participant is totally and permanently
disabled, which, for purposes of this section, shall mean that the participant is unable
to work in the position occupied by him, by reason of personal disease or injury.
(c) Upon receiving a participant's written application for disability benefits, the
committee shall require the participant to submit, from a physician of the participant's
choice, a written report of findings and recommendations. The committee shall then
select a physician of its choice and require the participant to submit to a medical
examination. In the event that there is no clear preponderance of medical evidence
from the above two physicians, a third physician will be selected by the original two
physicians, who will also examine the participant and submit a written report of
findings and recommendations. The committee may waive any examination required
by this section for justifiable causes, but in no event shall any participant be granted
disability benefits without submitting to at least one medical examination. Failure of
any participant to submit to medical examination as required by this section will result
in the denial of the participant's disability benefit.
(d) In making a determination under this section, the committee may consider
whether a participant qualifies for disability retirement benefits under the provisions of
the Virginia Retirement System, but such qualification shall not, by itself, be proof of
a participant's eligibility under this section.
(e) Benefits shall not be payable under this section for any disability resulting
from a pre-existing condition which was discovered during a participant's employment
physical examination, and for which the participant executed a waiver of eligibility for
benefits.
(f) For purposes of this section 66-84, a participant who becomes disabled while
performing"qualified military service,"within the meaning of section 414(u)(5) of the
IRS Code, will be deemed to have incurred the disability before retirement from city
employment and such a disability will be deemed to be not duty-related for purposes
of section 66-104.
(Code 1978, § 17-49)
Sec. 66-147. —Death before retirement.
(a) If a participant with five or more years of credited service, including credited
service for the year immediately preceding his death, dies before retirement and while
in city employment, the applicable benefits provided in subsections (b), (c), (d) and (f)
in this section shall be paid, subject to section 66-106. For purposes of this section 66-
147, a participant who dies while performing "qualified military service," within the
meaning of section 414(u)(5) of the IRS Code, will be deemed to have died while in
city employment.
(b) A participant's surviving spouse, if married to the participant at least the one
year immediately preceding his death, shall receive a monthly allowance computed in
the same manner in all respects as if such participant had (i) retired on the date of his
death with entitlement to an allowance provided for in section 66-81 or section 66-83,
whichever is applicable, (ii) elected Option 1 with 100 percent continuation to the
contingent annuitant provided for in section 66-126 and (iii) nominated such spouse as
contingent annuitant. Such spouse allowance shall not be less than 15 percent of the
deceased participant's average final compensation at time of death. If such spouse had
not attained age 40 at the time of the participant's death, such spouse allowance shall
be payable for the remaining life of such spouse, but in no event for more than 120
months.
(c) While a spouse allowance is payable as a result of a participant's death while in
city employment, his dependent child or dependent children shall each receive a
monthly allowance of ten percent of such participant's average final compensation at
time of death; provided, while there are three or more such dependent children, each
dependent child shall receive an allowance of an equal share of 25 percent of such
average final compensation. Upon a child ceasing to be a dependent child, his
allowance shall terminate, and there shall be a redetermination of the amounts payable
to any remaining dependent children.
(d) While a spouse allowance is not payable as a result of a participant's death
while in city employment, his dependent child or dependent children shall each
receive a monthly allowance of 20 percent of such participant's average final
compensation at time of death; provided, while there are three or more such dependent
children, each dependent child shall receive an allowance of an equal share of 50
percent of such average final compensation. Upon a child ceasing to be a dependent
child, his allowance shall terminate, and there shall be a redetermination of the
amounts payable to any remaining dependent children.
(e) The term "dependent child" means a child until his death or his marriage or his
attainment of age 23 years, whichever occurs first; provided however, that the age 23
maximum shall be extended for any child who has been deemed physically or
mentally incompetent by a state court of competent jurisdiction (or by the plan), for as
long as such incompetency exists.
(f) If, at the time of such participant's death while in city employment, there is
neither a spouse to whom the participant has been married for at least one year
preceding his death nor a dependent child, each dependent parent shall receive a
monthly allowance of 20 percent of such average final compensation; provided, the
plan finds that such parent was dependent upon such participant for at least 30 percent
of his financial support at time of death.
(g) In the event no allowance is payable under subsections (a) through (f) of this
section on account of the death of a participant or that all the allowances provided for
in subsections (a) through (f) of this section, payable on account of the death of a
participant, terminate before there has been paid an aggregate amount equal to his
accumulated contributions standing to his credit in the plan at the time of his death, the
excess of such accumulated contributions over such aggregate amount of allowance
payments, if any, shall be paid to such beneficiary as he shall have nominated by
written designation duly executed and filed with the plan. If there be no such
designated beneficiary surviving at termination, such excess shall be paid to the
participant's estate.
ARTICLE III. - RETIREMENT PLAN FOR PUBLIC SAFETY EMPLOYEES
Sec. 66-281. - Definitions
For the purposes of this article, the following words and phrases shall have the
meanings respectively ascribed to them by this section, unless otherwise required by
the context:
Accumulated contributions means, for any participant as of any date, the total
obtained by accumulating each individual contribution of the participant, with interest
from the July 1 next following the date such contribution was made to the first day of
the month of the date as of which the computation is made. The interest to be credited
to each participant's contributions for each 12-month period commencing on July 1
and ending on the following June 30 shall be determined by the committee each year
on the basis of the actual net yield of the fund for such period, provided, however, that
in no event shall the rate of interest credited for any such 12-month period be less than
four percent per annum.
Actuarial equivalent means a benefit with a reserve equal to the reserve of
another benefit.
Average final compensation means for any participant, as of any date, the
average annual compensation of the participant during the three consecutive years of
his credited service during which his compensation was highest or during the entire
period of his credited service if less than three years.
Beneficiary means any person who is receiving or designated to receive a plan
benefit by reason of the plan participation of another person.
City means the City of Fairfax, Virginia, or any municipal corporation
successor thereto, or the authority of the city having the power to appoint an employee
to office or employment.
Committee means the administrative committee provided for in division 9 of
this article.
Compensation means, for any eligible employee, the full base compensation
paid to him by the city excluding overtime or other compensation not a part of the set
scale for an established normal working period and excluding contributions by the city
to any employee benefit plan other than this plan. Compensation shall include, without
duplication, contributions picked up under subsection 66-432(c) on behalf of the
eligible employee and shall include any salary deferrals made to plans maintained by
the city pursuant to sections 125 or 132(f) of the IRS Code, but shall not include
contributions by the city pursuant to section 66-433. In cases where compensation
includes maintenance or other perquisites, the committee shall fix the value of that
part of the compensation not paid in money. Notwithstanding the foregoing,
"compensation" shall not include (1) any item not specified in section 1.415-2(d)(2) of
the treasury regulations or (2) any item which is listed in section 1.415-2(d)(3) of the
Treasury regulations. Furthermore, "compensation" shall include "differential pay"
within the meaning of section 414(u)(12) of the IRS Code paid to a participant
performing "qualified military service" within the meaning of section 414(u)(5) of the
IRS Code.
In addition to other applicable limitations set forth in the plan and
notwithstanding any other provision of the plan to the contrary, for plan years
beginning on or after January 1, 1994, the annual compensation for each employee
taken into account under the plan shall not exceed the OBRA '93 annual compensation
limit. The OBRA '93 annual compensation limit is $150,000.00, as adjusted by the
secretary of the treasury for increases in the cost of living in accordance with section
401(a)(17)(b) of the IRS Code. The cost-of-living adjustment in effect for a calendar
year applies to any period, not exceeding 12 months, over which compensation is
determined (the determination period) beginning in such calendar year If a
determination period consists of fewer than 12 months, the OBRA '93 annual
compensation limit will be multiplied by a fraction, the numerator of which is the
number of months in the determination period, and the denominator of which is 12.
For plan years beginning on or after January 1, 1994, any reference in this plan
to the limitation under section 401(a)(17) of the IRS Code shall mean the OBRA '93
annual compensation limit set forth in this provision.
If compensation for any prior determination period is taken into account in
determining a participant's benefits accruing in the current plan year, the compensation
for that prior determination period is subject to the OBRA '93 annual compensation
limit in effect for that prior determination period. For this purpose, for determination
periods beginning before the first day of the first plan year beginning on or after
January 1, 1994, the OBRA '93 annual compensation limit is $150,000.00.
The annual compensation of each participant taken into account in determining
benefit accruals for any plan year beginning after December 31, 2001, shall not exceed
$200,000.00, as adjusted for cost-of-living increases in accordance with section
401(a)(17)(b) of the IRS Code. Annual compensation means compensation during the
plan year or the determination period. The cost-of-living adjustment in effect for a
calendar year applies to annual compensation for the determination period that begins
with or within such calendar year.
Contingent annuitant means the person designated by a participant to receive
retirement benefits, after the death of the participant, under the joint and last survivor
option of division 5 of this article.
Contributions means the payments to the fund by the city and/or the
participants as provided for in this article.
Credited service means, for any participant as of any date, the period or
periods prior thereto during which he shall have been in the full-time employ of the
city as an eligible employee, exclusive of:
(a) Any period of employment prior to his date of becoming a participant if
he did not become a participant within 90 days after his earliest opportunity to
do so; and
(b) Subject to subsection (f) below, any period of employment prior to the
date of any withdrawal of the participant's accumulated contributions in
accordance with the provisions of division 7 of this article.
In addition to his period or periods of full-time employment, the credited
service of a participant shall include any period of his:
(c) Vacation, or any other absence from employment for which the
participant shall receive full compensation;
(d) Leave of absence without pay specifically authorized by the city under
general rules uniformly applicable to all employees similarly situated; and
(e) Service in the armed forces of the United States, provided the
participant entered such service directly from the employ of the city, was
honorably discharged from such service, and was reemployed by the city
during a period when his right to reemployment with the city was protected by
law, to the extent credit for service is required to be given pursuant to section
414(u) of the IRS Code and the Uniformed Services Employment and
Reemployment Rights Act.
(f) Service that was previously cancelled in accordance with section 66-
407, or not credited during a period of time classified by the city as "leave
without pay," and reinstated effective as of the earlier of the date of the
participant's cessation of the receipt of compensation following termination of
employment or completion of repayment of withdrawn contributions, under the
following conditions:
1. The participant has at least one month of "qualified 2004
service" within the meaning of this section or section 66-41.
2. The participant has repaid all or a portion of the contributions
withdrawn plus interest on such contributions as determined in
subparagraph 3.
3. Interest has been charged on the participant's previously
withdrawn contributions at an annual rate of 5.0 percent or such other
rate as the committee may subsequently establish for these purposes,
compounded biweekly. The interest has been charged from the date of
withdrawal to the earlier of the participant's termination of employment
or completion of the repayment.
4. Redeposit of the withdrawn contributions, plus interest, has
been made on or before the later of the following two dates:
(A) Five years after the participant has been reemployed by
the city, and
(B) December 31, 2009.
5. The service to be reinstated is not eligible for and has not been
credited under another retirement system (with the exception of the
Virginia Retirement System).
6. The participant has completed and executed in a timely manner
any and all forms the committee deems necessary for the reasonable
operation and administration of these service reinstatement provisions.
7. The participant has elected to repay the withdrawn contributions
in one of the following forms:
(A) A direct rollover from another employer's qualified
retirement plan or tax deferred annuity plan of the total amount
of the withdrawn contributions, plus interest;
(B) A direct rollover or direct transfer from an eligible
deferred compensation plan established pursuant to section
457(b) of the IRS Code of the total amount of the withdrawn
contributions, plus interest; or
(C) Pretax payments pursuant to one or more binding,
irrevocable payroll deduction authorizations between the city
and the participant. If the participant enters into such an
authorization, the participant contributions will be picked up by
the city, as described in section 414(h)(2) of the IRS Code and
deducted from the pay of the contributing participant as a salary
reduction contribution and paid by the city to the trustee with
reasonable promptness.
8. If the participant elects to repay the withdrawn contributions by
pre-tax payments pursuant to subsection (f)7.(C), the minimum
payment per pay period shall be $20.00. Furthermore, if the participant
ceases to receive compensation from the city following termination of
employment prior to completing the payment of the withdrawn
contributions, the service credit awarded shall be prorated based on the
payments made as of the date the participant ceases to receive
compensation following termination of employment.
Solely for purposes of calculating a benefit (other than a disability retirement
allowance) becoming effective April 1, 1983,or later, the credited service of a
participant shall also include his completed months of unused sick leave at time of
termination of employment, based on 173 hours of unused sick leave constituting one
completed month; provided, in no event shall the inclusion of unused sick leave as
credited service affect the calculation of the participant's compensation or average
final compensation.
Eligible employee means any person regularly employed by the city on a full-
time basis as a member of the police department with police powers (except an animal
control officer with police powers) or as a salaried member of the fire department (fire
service uniform personnel), other than a temporary employee, within the meaning of
section 66-2 of the City Code. Eligible employee also means any former eligible
employee who, as a result of a disability incurred while an eligible employee, is no
longer able to continue in employment described in the preceding sentence and is now
regularly employed by the city on a full-time basis, other than as a temporary
employee in other employment.
Fund means the trust fund created under the terms of the trust agreement,
consisting of the cash, securities and other assets held by the trustee pursuant to the
terms of the plan.
Inflation index means the Consumer Price Index for All Urban Consumers, All
Items, U.S. City Average, as published by the Bureau of Labor Statistics of the United
States Department of Labor.
IRS Code means the Internal Revenue Code of 1986, as amended from time to
time.
Participant means an eligible employee or a former eligible employee who has
become eligible to participate in the plan as provided in division 2 of this article, and
is prospectively entitled to future benefits under the terms of the plan.
Plan means the retirement plan for police and fire employees of the city as
now contained in this article or as duly amended.
Plan year means the 12-month period ending on the last day of June.
Qualified 2004 service (for the purposes of the January 1, 2004, amendments)
means credited service earned on or after December 1, 2003, in direct connection with
employment as an eligible employee of the city.
Reserve means the present value of all payments to be made on account of any
plan benefit, based upon such reasonable tables of experience and interest as the
committee shall adopt, from time to time, after consulting with its actuary.
Social Security full retirement age means the age at which there is no reduction
in Social Security benefits based upon the following table:
Year Born Age for Full Benefits
1937 or earlier 65 yrs.
1938 65 yrs., 2 mos.
1939 65 yrs., 4 mos.
1940 65 yrs., 6 mos.
1941 65 yrs., 8 mos.
1942 65 yrs., 10 mos.
1943-1954 66 yrs.
1955 66 yrs., 2 mos.
1956 66 yrs., 4 mos.
1957 66 yrs., 6 mos.
1958 66 yrs., 8 mos.
1959 66 yrs., 10 mos.
1960 or later 67 yrs.
Totally and permanently disabled means as set forth in subsection section 66-
323(b).
Trust agreement means the agreement entered into between the city and the
trustee pertaining to the administration of the fund.
Trustee means the financial institution appointed by council to hold in trust and
invest the fund, as provided for in division 8, which may, from time to time, be acting
in that capacity under the terms of the trust agreement.
Year of credited service means a plan year during which an eligible employee
is employed on a substantially full-time basis and makes the contributions required to
be made pursuant to section 66-432 for the entire year or otherwise receives credit for
credited service pursuant to this section 66-281. Notwithstanding the foregoing, for
purposes of determining the amount of a participant's retirement benefit pursuant to
sections 66-321 and 66-323, a participant shall receive credit for one-twelfth of a year
of credited service for each month during which the participant was an eligible
employee for the entire month, was employed on a substantially full time basis and
made the contributions required to be made pursuant to section 66-432 for the entire
month or otherwise receives credit for credited service pursuant to this section 66-281.
(Code 1978, § 17-151; Ord. No. 2002-11, 6-11-2002; Ord. No. 2003-26, 12-9-2003;
Ord. No. 2004-21, 10-12-2004; Ord. No. 2009-26, 10-13-2009; Ord. No. 2012-17,
10-9-2012)
Cross reference— Definitions generally, § 1-2.
Section 66-323. –Disability retirement.
(a) A participant who becomes totally and permanently disabled after the
completion of five or more years of credited service, may retire from the employment
of the city on the first day of any month thereafter prior to:
(1) In the case of a participant who became an eligible employee on or
before March 31, 1983, the earlier of the date on which he attains the age of
60, or completes 30 years of credited service; or
(2) In the case of a participant who became an eligible employee on or
after April 1, 1983, his retirement date.
(b) The committee shall determine whether a participant is totally and permanently
disabled, which, for purposes of this section, shall mean that the participant is unable
to work in the position occupied by him, by reason of personal disease or injury,
(c) Upon receiving a participant's written application for disability benefits,the
committee shall require the participant to submit, from a physician of the participant's
choice, a written report of findings and recommendations. The committee shall then
select a physician of its choice and require the participant to submit to a medical
examination. In the event that there is no clear preponderance of medical evidence
from the above two physicians, a third physician will be selected by the original two
physicians, who will also examine the participant and submit a written report of
findings and recommendations. The committee may waive any examination required
by this section for justifiable causes, but in no event shall any participant be granted
disability benefits without submitting to at least one medical examination. Failure of
any participant to submit to medical examination as required by this section will result
in the denial of the participant's disability benefit.
(d) In making a determination under this section, the committee may consider
whether a participant qualifies for disability retirement benefits under the provisions of
the Virginia Retirement System, but such qualification shall not, by itself, be proof of
a participant's eligibility under this section.
(e) Benefits shall not be payable under this section for any disability resulting
from a pre-existing condition which was discovered during a participant's employment
physical examination, and for which the participant executed a waiver of eligibility for
benefits.
(f) For purposes of this section 66-323, a participant who becomes disabled while
performing"qualified military service," within the meaning of section 414(u)(5) of the
IRS Code, will be deemed to have incurred the disability before retirement from city
employment and such a disability will be deemed to be not duty-related for purposes
of section 66-343.
(Code 1978, § 17-173)
Sec. 66-387. –Death before retirement.
(a) If a participant with five or more years of credited service, including credited
service for the year immediately preceding his death, dies before retirement and while
in city employment, the applicable benefits provided in subsections (b), (c), (d) and (f)
in this section shall be paid, subject to section 66-345. For purposes of this section 66-
387, a participant who dies while performing "qualified military service," within the
meaning of section 414(u)(5) of the IRS Code, will be deemed to have died while in
city employment.
(b) A participant's surviving spouse, if married to the participant at least the one
year immediately preceding his death, shall receive a monthly allowance computed in
the same manner in all respects as if such participant had (i) retired on the date of his
death with entitlement to an allowance provided for in section 66-321 or section 66-
322, whichever is applicable, (ii) elected option 1 with 100 percent continuation to the
contingent annuitant provided for in section 66-366 and (iii) nominated such spouse as
contingent annuitant. Such spouse allowance shall not be less than 15 percent of the
deceased participant's average final compensation at time of death. If such spouse had
not attained age 40 at the time of the participant's death, such spouse allowance shall
be payable for the remaining life of such spouse, but in no event for more than 120
months.
(c) While a spouse allowance is payable as a result of a participant's death while in
city employment, his dependent child or dependent children shall each receive a
monthly allowance of ten percent of such participant's average final compensation at
time of death; provided, while there are three or more such dependent children, each
dependent child shall receive an allowance of an equal share of 25 percent of such
average final compensation. Upon a child ceasing to be a dependent child, his
allowance shall terminate, and there shall be a redetermination of the amounts payable
to any remaining dependent children.
(d) While a spouse allowance is not payable as a result of a participant's death
while in city employment, his dependent child or dependent children shall each
receive a monthly allowance of 20 percent of such participant's average final
compensation at time of death; provided, while there are three or more such dependent
children, each dependent child shall receive an allowance of an equal share of 50
percent of such average final compensation. Upon a child ceasing to be a dependent
child, his allowance shall terminate, and there shall be a redetermination of the
amounts payable to any remaining dependent children.
(e) The term "dependent child" means a child until his death or his marriage or his
attainment of age 23 years, whichever occurs first; provided however, that the age 23
maximum shall be extended for any child who has been deemed physically or
mentally incompetent by a state court of competent jurisdiction (or by the plan), for as
long as such incompetency exists.
(f) If, at the time of such participant's death while in city employment, there is
neither a spouse to whom the participant has been married for at least one year
preceding his death nor a dependent child, each dependent parent shall receive a
monthly allowance of 20 percent of such average final compensation; provided, the
plan finds that such parent was dependent upon such participant for at least 30 percent
of his financial support at time of death.
(g) In the event no allowance is payable under subsections (a)through(f) of this
section on account of the death of a participant or that all the allowances provided for
in subsections (a) through (f) of this section, payable on account of the death of a
participant, terminate before there has been paid an aggregate amount equal to his
accumulated contributions standing to his credit in the plan at the time of his death, the
excess of such accumulated contributions over such aggregate amount of allowance
payments, if any, shall be paid to such beneficiary as he shall have nominated by
written designation duly executed and filed with the plan. If there be no such
designated beneficiary surviving at termination, such excess shall be paid to the
participant's estate.
This ordinance shall become effective as provided by law.
INTRODUCED: December 3, 2013
PUBLIC HEARING: December 10, 2013
ENACTED: December 10, 2013
4
Mayor
/Z/i4t//3
Date
ATTEST:
416ia0 ILl
City Clerk
Votes
Councilman DeMarco Aye
Councilman Drummond Aye
Councilman Greenfield Aye
Councilman Meyer Aye
Councilmember Schmidt Aye
Councilman Stombres Aye