ARTICLE IV. - REVISED PENSION FUND (APPLICABLE TO APPOINTMENTS ON OR AFTER MAY 29, 1992)

Part of the Code of Ordinances of Warwick, RI.

Local law · Updated July 8, 2025 · 2,073 sections

The text

Footnotes:

--- (4) --- Cross reference— Retirement system, ch. 60.

DIVISION 1. - GENERALLY#

Sec. 20-141. - Definitions.#

This fund is divided into two tiers, Tier I and Tier II. Tier I means the pension fund covering any employee hired after May 29, 1992 and before July 1, 2012. Tier II means the pension fund covering any employee hired after June 30, 2012. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Actuarially equivalent value means an amount having equal value when computed on the basis of a 2.84 percent interest rate compounded annually and the UP-1984 mortality table, for purposes of section 20-183.

Actuary means an individual who has attained Fellowship in the Society of Actuaries or a firm employing such an individual.

Administrator means the city treasurer, whose duties are described in section 20-261.

Base pay means the base wages paid to the employee in accordance with the collective bargaining agreement between the city and the union.

Beneficiary means the member's spouse, dependent child under 18 years of age or child 18 years of age or older who is receiving social security disability benefits. Such beneficiary is or may become entitled to receive pension benefits from the fund as a result of the death of the member.

Board means the city's board of public safety.

Creditable service means the service which is credited in accordance with division 3 of this article.

Earned income means compensation for employment which is taxable as wages under United States income tax law, or compensation for services rendered by the member on behalf of a corporation or partnership.

Effective date means May 29, 1992 for Tier I and means July 1, 2012 for Tier II.

Employee means any employee of the city's fire department who is or has been represented by the union for collective bargaining purposes or is a sworn member.

Final average salary: (a)

For Tier I means (a) if the member's retirement, death or disability occurs prior to January 1, 2005, the annual rate of pay equal to the average of the salaries received by the member for the period of three years of creditable service ending at the member's retirement, termination, or death, or the average salary received over the member's entire career if the member had less than three years of creditable service at the time of death or disability; or (b) if the member's retirement, death or disability occurs on or after January 1, 2005, the annual rate of pay equal to the salary received by the member for the period of the last year of creditable service ending at the member's retirement, termination, or death, or the average salary received over the member's entire career if the member had less than one year of creditable service at the time of death or disability.

(b)

For Tier II means the annual rate of pay equal to the average of the salaries received by the member for the period of three years of creditable service ending at the member's retirement, termination, or death, or the average salary received over the member's entire career if the member had less than three years of creditable service at the time of death or disability.

Fund means the trust fund established to hold and invest assets to pay benefits under chapter 20, article III; chapter 20, article IV; and chapter 52, article II, as further described in section 20-243.

Holiday pay means compensation in excess of base wages paid to the employee on account of holidays in accordance with the collective bargaining agreement between the city and the union.

Internal Revenue Code means the Internal Revenue Code of 1986, as amended from time to time. Reference to a specific provision of the Internal Revenue Code shall include such provision, any valid regulation or ruling promulgated thereunder, and any provision of future law that amends, supplements, or supersedes such provision.

Longevity pay means compensation paid to the employee on account of longevity in accordance with the collective bargaining agreement between the city and the union.

Member means any employee or retired employee who participates in the plan with benefits defined under this article in accordance with the provisions of division 2 of this article.

Normal retirement age: (a)

For Tier I means the member's age upon completion of 20 years of creditable service or having attained the minimum age required to qualify for normal social security eligibility.

(b)

For Tier II means 25 years of creditable service and having attained the age of 50 or having attained the minimum age required to qualify for normal social security eligibility.

Plan means chapter 20, articles III and IV.

Salary means the member's annual rate of base pay, holiday pay, and longevity pay, excluding compensation paid for any other reason.

Spouse means the person, if any, to whom the member is lawfully married at the time of his or her death.

Trustee means the trustee or trustees appointed by the administrator to administer the assets of the fund in accordance with section 20-261(2).

Union means Local 2748 of the International Association of Fire Fighters, AFL-CIO.

(Ord. No. O-95-25, § I(1.1—1.23), 7-10-95; Ord. No. O-05-24, § 1, 9-20-05; Ord. No. O-11-6, § I(Exh. A), 5-10-11; Ord. No. O-25-7, § I, 5-6-25)

Cross reference— Definitions generally, § 1-2.

Sec. 20-142. - Benefits not transferable or subject to attachment.#

No member or beneficiary shall have any power to assign, transfer, pledge, encumber or anticipate any payment to be made under the plan, nor shall the right to receive any such payment be in any manner subject to levy, attachment or other legal process to enforce payment of any claim against any member or any beneficiary.

(Ord. No. O-95-25, § I(8.1), 7-10-95)

Sec. 20-143. - Maximum benefit.#

The maximum benefit payable to a member under the plan shall not exceed the amount permitted under section 415 of the Internal Revenue Code, as now in effect or hereafter amended.

(Ord. No. O-95-25, § I(8.2), 7-10-95)

Sec. 20-144. - Maximum salary for purposes of benefit determination.#

The salary considered for purposes of benefit determination under the plan shall not exceed the amount permitted under section 401(a)(17) of the Internal Revenue Code, as now in effect or hereafter amended.

(Ord. No. O-95-25, § I(8.3), 7-10-95)

Sec. 20-145. - Pensions under this article not part of any other pension.#

Pension benefits provided by this article shall not be part of or computed with any other pension or social security program.

(Ord. No. O-95-25, § I(8.4), 7-10-95)

Secs. 20-146—20-160. - Reserved.#

DIVISION 2. - ELIGIBILITY#

Sec. 20-161. - Membership generally.#

Any employee hired after May 28, 1992, shall join the plan under this article as of his or her date of hire and remain a member until death or distribution of benefits under section 20-206.

(Ord. No. O-95-25, § I(2.1), 7-10-95)

Sec. 20-162. - Rejoining plan upon reemployment.#

If an employee who was a member terminates employment and subsequently becomes an employee again, he or she shall become a member again on his or her date of rehire, with creditable service determined in accordance with section 20-182.

(Ord. No. O-95-25, § I(2.2), 7-10-95)

Secs. 20-163—20-180. - Reserved.#

DIVISION 3. - CREDITABLE SERVICE#

Sec. 20-181. - Service credited on account of employment.#

(a)

Creditable service includes the period of continuous employment with the city commencing on the member's date of hire and ending on the date the member terminates employment. For purposes of calculating benefits, creditable service is measured in completed full years of service. For example, a member hired on July 1, 1985, who terminates on April 1, 1996, has ten years of creditable service.

(b)

A member shall receive no creditable service for any unpaid leave of absence. For example a member hired on July 1, 1985, who has unpaid leave of absence from April 1, 1996, until July 1, 1996, and who terminates employment on April 1, 1998, would receive creditable service as follows:

July 1, 1985—April 1, 1996 10 years, 9 months

July 1, 1996—April 1, 1998 1 year, 9 months

Total 12 years, 6 months

Creditable service 12 years

(Ord. No. O-95-25, § I(3.1), 7-10-95)

Sec. 20-182. - Loss of service at termination of employment.#

A member who terminates employment and receives a refund of contributions under section 20-206 and who is subsequently reemployed shall receive no creditable service for his or her initial period of employment unless he or she repays to the fund upon reemployment an amount equal to the distribution the member received under section 20-206.

(Ord. No. O-95-25, § I(3.2), 7-10-95)

Sec. 20-183. - Buyback of military service.#

(a)

At the time of his or her retirement, any member who has reached his or her normal retirement age and had previously been honorably discharged from service with the armed forces of the United States will be eligible to buy back up to four years of additional creditable service by contributing to the fund the actuarially equivalent value of the pension benefits associated with the additional creditable service purchased. In no event will a member of either Tier, who has not reached the normal retirement age (without including creditable service purchased under this section) be eligible to buy back creditable service.

(b)

A member eligible to purchase benefits under subsection (a) of this section has the option to buy up to four years of creditable service in six-month increments, but no more than the number of his or her full years of military service.

(Ord. No. O-95-25, § I(3.3), 7-10-95; Ord. No. O-11-6, § I(Exh. A), 5-10-11)

Sec. 20-184. - Buyback of municipal service.#

(a)

At the time of his or her retirement, any member who has reached his or her normal retirement age and who had previously been employed by the city for at least six consecutive months in a full time civilian position of 35 or more hours per week will be eligible to buy back up to four years of additional creditable service by contributing to the fund the actuarial equivalent value of the pension benefits associated with the additional creditable service purchased. In no event will a member who has completed fewer than 20 years of creditable service (without including creditable service purchased under this section) be eligible to buy back creditable service.

(b)

A Tier I member eligible to purchase benefits under subsection (a) of this section has the option to buy up to four years of creditable service in six-month increments, but no more than the number of his/her full years of civilian service.

(c)

Tier II members shall not be eligible to use the provisions of this section.

(Ord. No. O-03-8, 5-20-03; Ord. No. O-11-6, 5-10-11)

Secs. 20-185—20-200. - Reserved.#

DIVISION 4. - BENEFITS#

Sec. 20-201. - Retirement benefits.#

A member who has reached his or her normal retirement age may apply to the board for retirement and payment of pension benefits. Such member shall receive, payable in accordance with section 20-221, an annual benefit equal to a percentage of his or her final average salary as follows:

For Tier I: Completed Years of

Creditable Service Percentage of

Final Average Salary

20 50

21 52

22 54

23 56

24 58

25 60

26 63

27 66

28 69

29 72

30 or more 75

For Tier II Completed Years of Creditable Service Percentage of Final Average Salary

25 50

26 52

27 54

28 56

29 58

30 60

31 62

32 64

33 66

34 68

35 or more 70

(Ord. No. O-95-25, § I(4.1), 7-10-95; Ord. No. O-05-24, § 2, 9-20-05; Ord. No. O-11-6, § I(Exh. A), 5-10-11)

Sec. 20-202. - Disability benefits.#

(a)

Eligibility.

(1)

Whenever a member becomes unfit to perform active duty by reason of mental or physical infirmity, the board may require such member to retire. Thereafter he or she shall be paid, in accordance with section 20-221, an annual benefit as described below. However, no member shall retire under this section unless three qualified physicians as designated by the board shall have certified in writing to the board that such member is permanently incapacitated. Such member shall submit to such periodic examinations as the board may specify for the purpose of determining any change in his or her mental or physical status.

(2)

Upon the determination by three physicians that the mental or physical incapacity has been corrected and upon their recommendation to the board that such member is able to return to active duty, the board shall place such member on active duty status and pension benefits payable under this section shall cease. A member so classified shall return to active duty forthwith. If such member shall refuse to return to active duty forthwith, he or she shall then be classified as resigned from employment with pension benefits payable in accordance with the terms of section 20-204 or 20-206, whichever is applicable.

(b)

Determination of annual benefit. When a member becomes permanently disabled in accordance with subsection (a) of this section, such member shall receive for his or her lifetime (unless payments cease earlier pursuant to subsection (a) of this section) an annual benefit in the following amounts:

Tier I (1)

Service-related disability.

For any heart, lung or cancer related disability, the annual benefit will be 66⅔ percent of the member's final average salary.

For any other disability which causes the member to be eligible for social security disability payments, the annual benefit will be 66⅔ percent of the member's final average salary.

For any other disability not previously described, the annual benefit will be equal to the benefit payable for retirement under section 20-201, but not less than 50 percent of the member's final average salary.

In no event will the member be eligible for a benefit equal to 66⅔ percent of the member's final average salary on account of social security disability benefits awarded as a result of an application filed with the Social Security Administration after disability benefits from this fund have commenced.

(2)

Nonservice-related disability. The annual benefit will be equal to the benefit payable for retirement under section 20-201, but not less than 50 percent of the member's final average salary.

Tier II (1)

Service-related disability. A member shall receive annual benefit will be 66⅔ percent of the member's final average salary until such time that the member would have attained 25 years of service, then the disability pension will be converted to a normal pension as prescribed in section 20-201 without regard for the member's age at such time.

(2)

Nonservice related disability. The annual benefit will be equal to the benefit payable for retirement under section 20-201, but not less than 50 percent of the member's final average salary as defined for Tier II.

(c)

Limitation for persons receiving earned income. As a condition for Tier I and Tier II members receiving benefits under the provisions of this section, the member shall file every year with the city's treasurer a sworn written report of his or her earned income for the one-year period immediately preceding the filing of the report, together with such supporting data as may reasonably be required. The member's pension amount for the following 24 semimonthly payments after the filing of the report of earned income shall be reduced. The total amount of the reduction shall be one dollar for each dollar by which the actual earned income exceeded the salary paid for the same one-year period to an employee whose rank and seniority are the same as the retired member's highest rank and seniority while on active duty. One twenty-fourth of the total reduction shall be applied to each payment, or any other method of reduction may be applied which is acceptable to the city treasurer. However, in no event shall any such member receive an annual pension which is less than 50 percent of his or her final average salary indexed in accordance with section 20-205.

(Ord. No. O-95-25, § I(4.2), 7-10-95; Ord. No. O-11-6, § I(Exh. A), 5-10-11)

Sec. 20-203. - Death while actively employed.#

(a)

Service-related death. The beneficiary or beneficiaries of a member who is killed or dies from injuries received or sickness contracted while in the performance of his or her duty as an employee will be entitled to a pension benefit payable in accordance with section 20-222 as follows:

(1)

To the spouse there shall be paid an annual benefit equal to 50 percent of the deceased member's final average salary. Such benefit shall begin as of the date of death and continue until the earlier of the date such spouse dies or is remarried.

(2)

To the legal guardian of each dependent child of the deceased member, for the benefit of each such child, there shall be paid an annual benefit equal to ten percent of the deceased member's final average salary. Such benefit shall begin as of the member's date of death and continue until such child attains age 18, or, if the child is found by the board to be in receipt of social security disability benefits at the time of the member's death, while such child remains in receipt of social security disability benefits as determined by the board.

(3)

The sum of the annual benefits payable under this subsection (a) shall at no time exceed 75 percent of the deceased member's final average salary, indexed in accordance with section 20-205.

(4)

In the event there is a dependent child or children and no spouse, or the spouse dies or remarries after the member's death, such benefit as would have been payable to the spouse, had he or she survived the deceased member or not remarried, shall be paid to the legal guardian(s) of such child or children, for the benefit of each such child, in equal shares, during the time provided in subsection (a)(2) of this section.

(b)

Nonservice-related death. If a member dies while an employee other than from injuries received or sickness contracted while in his or her performance as an employee, the beneficiary or beneficiaries of such member will be entitled to a pension benefit payable in accordance with section 20-222 as follows:

(1)

To the spouse there shall be paid an annual benefit equal to 30 percent of the deceased member's final average salary. Such benefit shall begin as of the date of death and continue until the earlier of the date such spouse dies or is remarried.

(2)

(3)

The sum of the annual benefits payable under this subsection (b) of this section shall at no time exceed 50 percent of the deceased member's final average salary, indexed in accordance with section 20-205.

(4)

In the event there is a dependent child or children and no spouse, or the spouse dies or remarries after the member's death, such benefit as would have been payable to the spouse, had he or she survived the deceased member or not remarried, shall be paid to the legal guardian(s) of such child or children for the benefit of each such child, in equal shares, during the time provided in subsection (b)(2) of this section.

(c)

Death without beneficiary. If a member dies while an employee and has no surviving spouse or dependent children, a lump sum payment equal to the member's contributions under section 20-241, without interest, shall be paid to the member's estate.

(Ord. No. O-95-25, § I(4.3), 7-10-95)

Sec. 20-204. - Vested termination of employment.#

(a)

Any member who terminates employment with ten years or more of creditable service, but less than 20 years of creditable service, shall receive, payable in accordance with section 20-221, an annual benefit commencing on the date he or she would have attained normal retirement age if he or she had not terminated employment, equal to a percentage of his or her final average salary as follows:

For Tier I Completed Years of

Creditable Service Percentage of

Final Average Salary

10 25.0

11 27.5

12 30.0

13 32.5

14 35.0

15 37.5

16 40.0

17 42.5

18 45.0

19 47.5

For Tier II Completed Years of Creditable Service Percentage of Final Average Salary

10 20.0

11 22.0

12 24.0

13 26.0

14 28.0

15 30.0

16 32.0

17 34.0

18 36.0

19 38.0

20 40.0

21 42.0

22 44.0

23 46.0

24 48.0

(b)

Members retired under this section shall not receive health insurance coverage from the city after termination of employment (other than such continuation coverage as is required to be made available to employees, at their expense, pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (COBRA)).

(Ord. No. O-95-25, § I(4.4), 7-10-95; Ord. No. O-11-6, § I(Exh. A), 5-10-11)

Sec. 20-205. - Indexation of benefits.#

(a)

For Tier I, the pension payable under sections 20-201, 20-202 and 20-203, but not section 20-204, shall be increased each January 1 by three percent for all members or beneficiaries of members on whose account benefits have been paid for at least 12 months. In the case of members or beneficiaries who have been in receipt of benefits for fewer than 12 months, a fractional increase shall be made equal to three percent multiplied by the number of complete months of payments made divided by 12.

(b)

For Tier II, the pension payable under sections 20-201, 20-202 and 20-203, but not section 20.1-204, shall be increased each January 1 by the lesser of 75 percent of the prior calendar year's Consumer Price Index for All Urban Consumers (CPI-U), but not less than zero nor more than three percent, for all members or beneficiaries of members on whose account benefits have been paid for at least 12 months. In the case of members or beneficiaries who have been in receipt of benefits for fewer than 12 months, a fractional increase shall be made equal to the above calculation multiplied by the number of complete months of payments made divided by 12. For the purposes of this section the prior calendar year shall mean the calendar year ending 12 months and one day prior to the date the indexation is payable.

(Ord. No. O-95-25, § I(4.5), 7-10-95; Ord. No. O-96-31, § II, 12-16-96; Ord. No. O-11-6, § I(Exh. A), 5-10-11)

Sec. 20-206. - Nonvested termination of employment.#

Any member who terminates employment prior to his or her completion of ten years of creditable service shall forfeit all claims to the fund, except that he or she shall be entitled to a lump sum payment equal to the member's contributions paid under section 20-241, without interest.

(Ord. No. O-95-25, § I(4.6), 7-10-95)

Sec. 20-207. - Mandatory retirement.#

Any member who attains the age of 60 while an employee (age 65, if the member holds the rank of battalion chief or higher, shall retire under section 20-201 as of the end of the calendar year after his or her 60th birthday (65th birthday, if applicable).

(Ord. No. O-95-25, § I(4.7), 7-10-95; Ord. No. O-25-7, § I, 5-6-25)

Secs. 20-208—20-220. - Reserved.#

DIVISION 5. - PAYMENT OF BENEFITS#

Sec. 20-221. - Payment of benefits on account of retirement.#

(a)

Payments to members. Payment of periodic benefits to members under sections 20-201, 20-202 and 20-204 shall be made on a semimonthly basis for the lifetime of the member. The amount of each payment is 1/24 of the amount determined in section 20-201, 20-202 or 20-204, as applicable. The portion of the benefit payable to the member on account of his or her longevity pay shall not be paid to or on account of a member who received his or her annual longevity pay as an active employee during a fiscal year until the first payroll period beginning after the July 1 following termination.

(b)

Payments to surviving spouses. After the death of a member whose pension benefits have commenced under subsection (a) of this section, the member's surviving spouse shall receive, on a semimonthly basis until the earlier of his or her death or remarriage, a benefit equal to 67.5 percent of the benefit which had been payable to the member under subsection (a) of this section.

(c)

Payments to surviving minor children. If there is no surviving spouse or the deceased member's spouse has remarried after the death of the member, then the benefit payable under subsection (b) of this section shall be paid to the legal guardian(s) of the member's surviving child or children who have not attained age 18, for the benefit of each such child, divided equally among all such children, and payable until all have attained the age of 18.

(Ord. No. O-95-25, § I(5.1), 7-10-95)

Sec. 20-222. - Payment of benefits on account of preretirement death.#

(a)

Payments to surviving spouses. A member's surviving spouse shall receive, on a semimonthly basis until the earlier of his or her death or remarriage, a benefit equal to 1/24 of the amount determined in section 20-203(a) or 20-203(b).

(b)

Payments to dependent children. The legal guardian(s) of a deceased member's dependent children shall receive, for the benefit of each such child, on a semimonthly basis until the attainment of age 18 by each such child entitled to benefits under section 20-203(a) or 20-203(b) (or until no longer in receipt of social security disability benefits, in the case of a dependent child who is found by the board to be in receipt of social security disability benefits at the time of the member's death), a benefit equal to 1/24 of the amount determined in section 20-203(a) or 20-203(b).

(c)

Longevity pay. The portion of the benefit payable to a beneficiary on account of a member's longevity pay shall not be paid on account of a member who received his or her annual longevity pay as an active employee during a fiscal year until the first payroll beginning after the July 1 following the member's death.

(Ord. No. O-95-25, § I(5.2), 7-10-95)

Sec. 20-223. - Refund of contributions.#

A refund of contributions under section 20-203(c) shall be paid to the member's estate as soon as practicable after the member's death. A refund of contributions under section 20-206 shall be paid to the member as soon as practicable after his or her termination of employment.

(Ord. No. O-95-25, § I(5.3), 7-10-95)

Sec. 20-224. - Commencement of benefits.#

Payment of pension benefits under this division shall commence with the first semimonthly pay period beginning after the member's death or retirement.

(Ord. No. O-95-25, § I(5.4), 7-10-95)

Sec. 20-225. - Latest commencement date for benefit payments.#

Benefit payments shall commence in accordance with the following: (1)

Unless the member elects otherwise, in writing, distribution of benefits will begin no later than the 60th day after the latest of the date on which:

The member attains the age at which he or she becomes eligible to retire in accordance with division 4 of this article;

Occurs the tenth anniversary of the year in which the member commenced participation in the plan; or

The member terminates employment with the city.

(2)

The commencement of benefits to any member under the plan will not begin later than April 1 of the calendar year following the later of:

The calendar year in which the member attains age 70½; or

The calendar year in which the member retires.

(3)

The provisions of subsection (2) of this section shall not apply to any distribution of benefits under the plan pursuant to a valid written election of a method of distribution made prior to January 1, 1984, which would have been permitted under section 401(a)(9) of the Internal Revenue Code for any fiscal year of the city beginning prior to December 31, 1983.

(4)

If a member dies prior to the commencement of benefits and benefits are payable to a designated beneficiary other than the member's spouse, the payment of such benefits shall begin no later than one year after the date of the member's death and shall be paid over a period which does not extend beyond the life expectancy of such beneficiary.

(Ord. No. O-95-25, § I(5.5), 7-10-95)

Secs. 20-226—20-240. - Reserved.#

DIVISION 6. - FUNDING#

Sec. 20-241. - Member contributions.#

(a)

Generally. In Tier I, each member who is an employee will contribute 11 percent of his or her salary to the fund at the time of each payroll period. Such contributions shall begin at hire and shall cease when the member is no longer an employee. Beginning no later than July 1, 1998, the amount of the members' contributions shall be adjusted to one-third of the annual contribution rate for Tier I determined by the actuary in accordance with section 20-242(c). In Tier II, each member who is an employee will initially contribute the same percent of his or her salary as being contributed by Tier I members, however beginning no later than July 1, 2014, the amount of the members' contributions shall be adjusted to one-third of the annual contribution rate for Tier II determined by the actuary in accordance with section 20-242(c). The actuary shall evaluate Tier I and Tier II as a single fund for the purpose of determining the pension contributions for the city (the two-thirds share of the total), but shall determine separate employee contribution rates for members of Tier I and Tier II, reflecting one-third of the difference in the value of the benefit being provided under this plan for the two tiers.

(b)

Pickup of contributions by city. The city shall pick up the employee contributions required by this section, and the contributions so picked up shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code. These contributions, although designated as employee contributions, will be paid by the city in lieu of contributions by the employee. Employees shall have no option to choose to receive the contributed amounts directly instead of having them paid by the city to the fund. The city shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The city may pick up these contributions by a reduction in the cash salary of the employee or by an offset against a future salary increase or by a combination of a reduction in salary and offset against a future salary increase. The employee contributions which are picked up shall be treated for all purposes of this plan in the same manner and to the same extent as employee contributions made prior to the date picked up.

(Ord. No. O-95-25, § I(6.1), 7-10-95; Ord. No. O-11-6, § 1(Exh. A), 5-10-11)

Sec. 20-242. - Employer contributions.#

(a)

Effective May 29, 1992, the city's annual contribution to the fund on account of members shall be 22 percent of each member's salary.

(b)

Beginning July 1, 1993, the actuary will perform an actuarial valuation for the purpose of determining an annual contribution rate, expressed as a percentage of total salary for all members, equal to the sum of the following two components:

(1)

Normal cost, net of employee contributions; and

(2)

An amount determined by the actuary which with annual increases equal to the actuary's assumed rate of increase in base pay will amortize over 20 years the increase or decrease in the actuarial accrued liability after May 29, 1992, attributable to plan amendments, changes in actuarial assumptions, and actuarial experience gains and losses affecting members.

The normal cost and actuarial accrued liability shall be determined using the entry age normal actuarial cost method and such actuarial assumptions as recommended by the actuary. Actuarial valuations will be performed by the actuary, in accordance with generally accepted actuarial principles, no less frequently than on an annual basis, with valuations performed as of July 1, 1993, July 1, 1995, etc. The results of the July 1, 1993, valuation will be used to determine the annual contribution rate for the 1994-95 and 1995-96 fiscal years while the July 1, 1995, valuation will determine the contribution rate for 1996-97 and 1997-98, etc.

(c)

Beginning on February 1, 2014 and annually thereafter, the city will adjust its contribution rate to two-thirds of the contribution rate determined by the actuary in the most recent actuarial valuation. Upon the request of the city council, the actuary shall appear and present the results of the annual actuarial valuation at a regular meeting of the city council.

(d)

City contributions will be paid throughout the following fiscal year in 24 equal installments, with each payroll period.

(Ord. No. O-95-25, § I(6.2), 7-10-95; Ord. No. O-13-14, § I, 10-18-13)

Sec. 20-243. - Pension fund.#

All contributions under sections 20-241 and 20-242 shall be deposited to the trust fund maintained by the city for the payment of benefits under chapter 20, article III; chapter 20, article IV; and chapter 52, article II. The city's treasurer shall be custodian of the fund with duties as outlined in section 20-261.

(Ord. No. O-95-25, § I(6.3), 7-10-95)

Secs. 20-244—20-260. - Reserved.#

DIVISION 7. - PLAN ADMINISTRATION#

Sec. 20-261. - Responsibilities of treasurer.#

The city treasurer shall be custodian of the fund, and he or she is hereby authorized and directed to do the following. (1)

Deposit contributions in the fund in accordance with division 6 of this article;

(2)

Act as or appoint a trustee for the fund;

(3)

Authorize the trustee to make payments to members and beneficiaries entitled to benefits from the fund in accordance with divisions 4 and 5 of this article;

(4)

Authorize the trustee to make payment from the fund for all fees for services performed on account of the plan or fund which are not paid directly by the city;

(5)

Subject to the approval of the city's finance director, direct the investment of the monies in the fund, and deposit in the fund interest, dividends and other increments or income from such investment;

(6)

Keep accurate books of account of the fund accounting separately for assets attributable to members under this article. The finance director and the members of the board shall have access at all reasonable times to all books and papers in the office of the treasurer which pertain to the fund. The treasurer shall make a written annual report during the first week of January of each year to the finance director, the board and the president of the city regular firefighter's association;

(7)

Appoint any professional advisors to the plan, such as the actuary, accountant, or legal counsel; and

(8)

Administer the earned income offset provision of section 20-202(c).

(Ord. No. O-95-25, § I(7.1), 7-10-95)

Sec. 20-262. - Responsibilities of board.#

The board has the responsibility for approving all applications for retirement, death, termination, and disability benefits as described in divisions 4 and 5 of this article, and certifying total incapacity under section 20-222(b).

(Ord. No. O-95-25, § I(7.2), 7-10-95)

Sec. 20-263. - Amendment of plan.#

The city council shall have the right to amend the plan. The plan may not be altered or amended without consultation between the city as represented by the chairman of the board and the chairman of the city council finance committee, and the city regular firefighter's association as represented by the president thereof.

No amendment to the plan which will increase the benefits to retirees or beneficiaries shall take effect unless the unfunded actuarial accrued liability of each fund established pursuant to chapter 20, article III, chapter 52, article II, chapter 52, article III, chapter 60, article III, and this article is ten percent or less of the actuarial value of the fund. Contributions under sections 20-141 and 20-142 shall be increased so that any such increase in benefits shall be funded at 100 percent.

(Ord. No. O-95-25, § I(7-3), 7-10-95; Ord. No. O-08-12, § II, 4-8-08)

Sec. 20-264. - Attendance of employee representatives at meetings of finance committee.#

A member of the city regular firefighter's association, chosen by the members of that organization to represent them, shall attend all meetings of the finance committee of the city council called to discuss matters of the plan.

(Ord. No. O-95-25, § I(7.4), 7-10-95)