ARTICLE III. - REVISED PENSION FUND (APPLICABLE TO APPOINTMENTS ON OR AFTER FEBRUARY 1, 1971)

Footnotes:

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

Sec. 52-71. - Established.#

There is hereby created a revised pension list and a revised pension fund for permanent members of the police department of the city who are appointed on or after February 1, 1971, to be known as "Revised Pension Fund for Police Officers of the City of Warwick."

Membership shall be divided between Tier I members, those permanent members of the police department hired on or after February 1, 1971, and on or before June 30, 2012. Tier II members are those members of the police department hired on or after July 1, 2012.

(Code 1971, § 15-41; Ord. No. O-11-7, § I(Exh. A), 5-17-11)

Sec. 52-72. - Effective date.#

This article shall take effect February 1, 1971, and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.

(Code 1971, § 15-42)

Sec. 52-73. - Source of assets.#

Said revised pension fund for police officers shall consist of: (1)

All donations, contributions, bequests or gifts to the revised pension fund.

(2)

All payroll deductions made from the salaries of each member and officer of the permanent police department who shall be appointed on or after February 1, 1971, which shall consist of a uniform percentage of the annual salary (including longevity payments) paid to each such member and officer commencing February 1, 1971, as provided in section 52-85.

(3)

Appropriations of city funds that shall be made from time to time to said fund to carry into effect the provisions of this article, as further provided in section 52-85.

(4)

All income and earnings derived from investment of fund holdings.

(Code 1971, § 15-43)

Sec. 52-74. - Custodian of fund; deductions from pay.#

The finance director, ex officio, shall be custodian of said revised pension fund for police officers, and he/she is hereby authorized and directed, commencing February 1, 1971, to deduct in weekly installments from the annual salary paid to each officer and member of the permanent police department appointed on or after February 1, 1971, the percentage of his/her salary specified in section 52-85(b) and to put the same in this revised pension fund. All of the monies coming from the various sources set forth in section 52-73 which the city finance director is hereby authorized to receive shall be known as the Revised Pension Fund for Police Officers of the City of Warwick. Said fund shall be kept separate and apart from all other monies in his/her care and he/she shall pay semimonthly from said fund to the beneficiaries thereof such sums as are hereinafter provided.

(Code 1971, § 15-44)

Sec. 52-75. - Investment of fund assets; accounting.#

Subject to the approval of the city council, the city finance director shall invest said funds and shall add the interest, dividends and other income from such investments to said fund. The city finance director shall keep accurate books of account of said fund and shall allow the mayor, the city council and the board of public safety to inspect his/her books of said fund at any time. He/she shall make an annual report in writing at the end of each fiscal year to the mayor, the city council and the board of public safety.

(Code 1971, § 15-45)

Sec. 52-76. - Placement on pension list of members unfit for active duty.#

(a)

Placement on pension list. Whenever an officer or member of the permanent police department shall become unfit to perform active duty by reason of mental or physical infirmity, or other causes, the board of public safety of the city may place said officer or member upon the pension list, and thereafter he/she shall be paid annually for the remainder of his/her life in equal semimonthly payments a sum as hereinafter provided; provided, however, that no one shall be placed on the pension list under the provisions of this section under the age of 55 years until three reputable physicians designated by the board of public safety shall certify in writing to said board that the officer or member is permanently incapacitated. These physicians shall make periodic examinations after retirement, to determine if there is any change in physical or mental status. If the three physicians determine that the mental or physical incapacity has been corrected they will recommend to the board of public safety of the city that such member or officer shall be placed on active duty. If he/she refuses to be placed on active duty he/she shall then be classified as having resigned and shall be covered by section 52-78.

(b)

Determination of benefits.

Determination of annual benefit for service related disability. Whenever a Tier II member becomes permanently disabled in accordance with this section and is placed by the board of public safety on the pension list, such Tier II member shall receive a sum of 66⅔ percent of their final average salary until such member reaches the point where he or she would have attained 25 years of service, then the disability pension shall be converted to a normal pension as prescribed in section 52-77 without regard for the Tier II member's age or disability at such time.

Determination of annual benefit for nonservice related disability. When a Tier II member becomes permanently disabled in accordance with this section, such member shall receive 50 percent of the member's final average salary.

Whenever a Tier II member who has already attained 25 years of service becomes unfit to perform active duty by reason of mental or physical infirmity, the board may require such Tier II member to retire. Thereafter he or she shall be paid, in accordance with section 52-77. This shall apply for both service and nonservice related disabilities.

Limitation for persons receiving earned income. As a condition for a Tier II member receiving benefits of greater than 50 percent of the member's final three years average salary under 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 semi-monthly 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 three years average salary.

(Code 1971, § 15-46; Ord. No. O-11-7, § I(Exh. A), 5-17-11)

Sec. 52-77. - Eligibility for retirement; retirement allowance.#

(a)

Any Tier I member or officer of the permanent police department, after serving 20 continuous years, may apply to the board of public safety to be placed on the pension list. Thereafter said officer or Tier I member shall be entitled to an annual pension equal to one-half of his/her average annual salary received during the five consecutive highest paid years of service preceding his/her retirement. In the event said Tier I member or officer of the permanent police department does not apply to be placed on the pension list within 30 days of eligibility, the board of public safety may, at its discretion, place said Tier I member or officer on the pension list.

(b)

Effective January 1, 1987, the retirement allowance for a Tier I member retiring with more than 20 years of service will be one-half of his/her average salary as specified in subsection (a) above, plus two percent of his/her average salary for each additional year of service above 20 years, up to a maximum of 25 years.

(c)

Effective February 1, 1991, the retirement allowance for a Tier I member retiring under this section will be the percentage specified in subsections (a) and (b) of this section of his/her highest year's salary.

(d)

A Tier II member upon having attained the age of 50 shall be entitled to an annual pension according to the following schedule:

Completed Years of Creditable Service for a Tier II Member Percentage of Final Three Years Average Salary

25 50.0

26 52.0

27 54.0

28 56.0

29 58.0

30 60.0

31 62.0

32 64.0

33 66.0

34 68.0

35 or more 70.0

(Code 1971, § 15-47; Ord. No. O-11-7, § I(Exh. A), 5-17-11)

Sec. 52-78. - Resignation or discharge prior to retirement.#

(a)

Any member or officer of the permanent police department who shall resign (or who shall be discharged after a proper hearing) prior to the completion of ten years of service shall forfeit all claims to said fund, except that he/she shall be entitled to a refund of the total amount of the deductions made from his/her salary under this article without interest.

(b)

Any member who shall resign or be discharged prior to eligibility for retirement under section 52-77, but after completing at least ten years of service, shall be vested in a pension, payable for Tier I on the date the member would have completed 20 years of service and payable for Tier II on the date the member would have completed 25 years of service, in an amount in accordance with the following schedule:

For Tier I Complete Years of Service Percentage of Highest Year's Pay

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 Complete Years of Service Percentage of Highest Year's Pay

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

(c)

The benefit of a member who receives payments under this section shall not be increased in accordance with section 52-82, but shall remain level throughout retirement. A member who retires under this section with less than 20 years of service for Tier I and 25 years of service in Tier II shall not be eligible for paid medical/dental insurance coverage or any other retiree benefits except those provided under this section.

(Code 1971, § 15-48; Ord. No. O-11-7, § I(Exh. A), 5-17-11)

Sec. 52-79. - Death benefits prior to retirement.#

(a)

If a member or officer of the permanent police department is killed or dies from injuries received or sickness contracted while in the performance of his/her duty as such member, there shall be paid from this revised pension fund, to the following dependents of such deceased person, the following sums of money: to the widow/widower an annual sum equal to 50 percent of the deceased's annual salary at the time of his/her death, such sum to be paid in regular installments twice a month beginning at the date of death and continuing until such widow/widower dies or is remarried; and in addition an annual sum, payable in the same manner as provided aforesaid, equal to ten percent of the deceased's annual salary at the time of his/her death for each child of such deceased during the time as such child is under the age of 18 years of age, or is over such age and is physically or mentally incapacitated from earning; provided, however, that the total annual sum paid hereunder shall at no time exceed a sum equal to 75 percent of the Tier I deceased's annual salary at the time of his/her death, and 66⅔ percent of the Tier II deceased's annual salary at the time of his/her death; and provided further that, in the event there is a child or children and no widow/widower or the widow/widower dies later or remarries, such sum as would have been payable to the widow/widower for the benefit of such child or children had he/she survived the deceased and not remarried shall be paid to or for the benefit of such child or children in equal shares during the time provided aforesaid.

(b)

If a member or officer of the permanent police department dies, other than from injuries received or sickness contracted while in his/her performance as such member, there shall be paid from this police pension fund, to the following dependents of such deceased person, the following sums of money: to the widow/widower an annual sum equal to 30 percent of the deceased's annual salary at the time of his/her death, such sum to be paid in regular installments twice a month beginning at the date of death and continuing until such widow/widower dies or is remarried, and in addition an annual sum, payable in the same manner as provided aforesaid, equal to ten percent of the deceased's annual salary at the time of his/her death for each child of such deceased during the time as such child is under the age of 18 years of age, or is over such age and is physically or mentally incapacitated from earning; provided, however, that the total annual sum paid hereunder shall at no time exceed a sum equal to 50 percent of the deceased's annual salary at the time of his/her death; and provided further that, in the event there is a child or children and no widow/widower or the widow/widower dies or remarries, such sum as would have been payable to the widow/widower for the benefit of such child or children had he/she survived the deceased and not remarried shall be paid to or for the benefit of such child or children in equal shares during the time provided aforesaid.

(c)

If no benefits are payable in accordance with subsection (a) or (b) of this section, the estate of any member or officer of the permanent police department who should die before eligibility to have his/her name placed on the pension list shall be entitled to a refund of the total amounts of the deductions made from his/her salary under the article without interest.

(d)

As used in this section, the term "member or officer of the permanent police department" shall mean and include any chief or other member or officer of the police department of this city, regularly employed at a fixed salary or wage.

(e)

Beneficiaries under this section shall be considered pensioners for the purposes of section 52-82.

(f)

The death benefits provided by this section are in addition to the lump sum death benefits provided by section 52-12, and nothing contained herein shall be deemed as amending or repealing said lump sum death benefit provisions of section 52-12.

(Code 1971, § 15-49; Ord. No. O-11-7, § I(Exh. A), 5-17-11)

Sec. 52-80. - Death benefits after retirement.#

(a)

The pension benefits payable to a member or officer entitled thereto under section 52-77 are payable for life, with all payments ceasing at the death of said member or officer. Nevertheless, until the first pension payment becomes normally due, any member or officer may elect to convert the pension, otherwise payable on his/her account after retirement, into a reduced retirement allowance of equivalent actuarial value in one of the optional forms named below. However, an election of an optional benefit shall not be effective until 60 days after the date of the filing of the election thereof with the board of public safety or until the date upon which the first pension payment on account of his/her retirement becomes normally due, whichever is the later, and, should the member or officer die before such election becomes effective, the benefits payable on his/her account shall be the same as though his/her election had not been filed and he/she had not been retired. Such optional retirement allowances shall be payable throughout life with the provisions that:

(1)

Option 1. If he/she dies before he/she has received in payments the present value of his/her pension benefit as it was at the time of his/her retirement, the balance shall be paid to his/her designated beneficiary as he/she, his/her wife/husband, or his/her guardian so electing shall designate.

(2)

Option 2. Upon his/her death, his/her lesser pension benefit shall be continued throughout the life of and paid to his/her designated coparticipant.

(3)

Option 3. Upon his/her death, one-half of his/her lesser pension benefit shall be continued throughout the life of and paid to his/her designated coparticipant.

(4)

Option 4. Such other benefit or benefits shall be paid to either the beneficiary or to such person or persons as he/she shall designate, provided such other benefit or benefits, together with such lesser retirement allowance, shall be certified by the actuary of this revised pension fund to be of equivalent actuarial value to his/her benefit and shall be approved by the board of public safety.

All such elections of an optional form of payment shall be made by written direction to the board of public safety prior to the effective date of the member's or officer's retirement.

(b)

Members, officers, coparticipants and beneficiaries entitled to pension payments under this section shall be considered pensioners for the purposes of section 15-82.

(Code 1971, § 15-50)

Sec. 52-81. - Benefits not transferable or subject to attachment.#

The benefits payable hereunder to any member or officer placed upon the pension list shall not be transferable nor subject to attachment.

(Code 1971, § 15-51)

Sec. 52-82. - Pension increases.#

For Tier I

(a)

As of January 1, 1972, and as of January 1 of each year thereafter, the city finance director shall adjust the pension of each pensioner receiving payments under this revised pension fund and the spouse or children of deceased police members entitled to pension benefits hereunder, in accordance with increases or decreases in the Consumer Price Index (U.S. all items index) compiled by the U.S. Department of Labor, Bureau of Labor Statistics, determined and limited as follows. Such index for October of the immediately preceding calendar year shall be divided by the corresponding index for October of the next previous calendar year, and the percentage of increase or decrease shall be determined. All pension payments for the current calendar year shall be increased or decreased from the rate payable during the immediately preceding calendar year by the percentage thus determined, except that in no event shall the increase or decrease exceed three percent for any single year. Furthermore, no downward adjustment shall decrease any pension to a lesser amount than the original amount of the pension benefit at retirement. In the case of any pensioner who has been retired for less than one full year on any January 1, a fractional adjustment shall be made corresponding to the period elapsed since the effective date of his/her retirement. No adjustments shall be made to the pension of any pensioner for or on account of increases or decreases in said Consumer Price Index occurring prior to said pensioner's being placed on the pension list.

(b)

Effective July 1, 1986, beginning on January 1, 1987, and on each January 1 thereafter, the pension adjustment described above shall be an increase of three percent, regardless of increases or decreases in the Consumer Price Index.

For Tier II

(a)

For Tier II retirees, the pension payable under sections 52-76, 52-77 but not section 52-78, shall be increased each January 1 by 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 Tier II retirees or beneficiaries of Tier II members on whose account benefits have been paid for at least 12 months. In the case of Tier II 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.

(Code 1971, § 15-52; Ord. No. O-08-11, § I, 7-8-08; Ord. No. O-11-7, § 1(Exh. A), 5-17-11)

Sec. 52-83. - Review of minimum allowances.#

Beginning on February 1, 2014 and annually thereafter, the mayor and the city council shall review the minimum allowances under this pension plan, and, if warranted, may increase the same. 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.

(Code 1971, § 15-53; Ord. No. O-13-15, § I, 10-18-13)

Sec. 52-84. - Membership.#

The terms of this article shall apply to every member or officer of the permanent police department appointed on or after February 1, 1971. The terms of this article shall not apply to any member or officer of the permanent police department appointed prior to February 1, 1971.

(Code 1971, § 15-54)

Sec. 52-85. - Contribution rates.#

(a)

Determination. The city plans and intends to maintain this revised pension fund on a sound actuarial basis in accordance with generally accepted accounting and actuarial practice so that, insofar as practicable, two-thirds of the cost of this retirement system will be paid by the city and one-third of such cost will be paid by the contributions from officers and members to whom the terms of this article apply. Such contribution rates shall be determined on the basis of such mortality, interest and other actuarial assumptions as shall be adopted by the board of public safety, subject to the approval of the city council. For this purpose, the board of public safety may employ an actuary, an individual or a firm, at least one of whose employees is a member of the Society of Actuaries, and such other assistance as it shall deem expedient to assist in determining the cost of benefits provided hereunder and the corresponding contribution rates of members and officers.

(b)

Member contributions. Commencing February 1, 1971, eight percent of the annual salary (including longevity payments) paid to each member and officer participating in this revised pension fund shall be deducted and placed in the fund. For Tier II employees hired after June 30, 2012, the employee contribution shall initially be the same as the most recently adjusted contribution for Tier I employees.

(c)

City contributions. Commencing February 1, 1971, an amount equal to 16 percent of the annual salary (including longevity payments) paid to each member and officer participating in this revised pension fund shall be contributed by the city and placed in the fund. For Tier II employees hired after June 30, 2012, the city contribution shall initially be the same as for the most recently adjusted contribution for Tier I employees.

(d)

Periodic review. Beginning with the actuarial valuation as of June 30, 2013 and annually thereafter, the board of public safety shall be required to have made an actuarial study of this retirement system in order to review the experience under the plan and to determine what revision, if any, is required in the contribution rates established hereunder to maintain the fund on a sound actuarial basis with the city contributing two-thirds and the members one-third of cost of plan benefits. The actuarial study shall be received by the board by the February 1 following the valuation date. 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.

(Code 1971, § 15-55; Ord. No. O-11-7, § 1(Exh. A), 5-17-11; Ord. No. O-13-15, § I, 10-18-13)

Sec. 52-86. - 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:

a.

The member attains the age at which he/she becomes eligible to retire in accordance with section 52-77(a);

b.

Occurs the tenth anniversary of the year in which the member commenced participation in the revised pension fund; or

c.

The member terminates service with the city.

(2)

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

a.

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

b.

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 revised pension fund 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.

(5)

If a member dies prior to the commencement of benefits and benefits are payable to a beneficiary other than the member's spouse or minor child and there is no designated beneficiary, the entire distribution of benefits on account of the member's death shall be made within five years after the date of the member's death.

(Code 1971, § 15-56)

Sec. 52-87. - Maximum benefits.#

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

(Code 1971, § 15-57)

Sec. 52-88. - Buyback of military service.#

(a)

At the time of his/her retirement, any member who retires under section 52-77 and who 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 service by contributing to the fund an additional percentage of his/her highest year's pay, equal to the annual contribution rate prevailing under section 52-85 at the time of the member's retirement, for each year of service purchased. In no event will a Tier I member who has completed fewer than 20 years of service or a Tier II member with less than 25 years of credible service and at least age 50 be eligible to buy back service.

(b)

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

(Code 1971, § 15-58; Ord. No. O-11-7, § 1(Exh. A), 5-17-11)

Sec. 52-89. - Pickup of employee contributions by city.#

The city shall pick up the employee contributions required by section 52-85 for all compensation earned after January 1, 1990, and the contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code; however, the city shall continue to withhold federal and state income taxes based upon these contributions until the Internal Revenue Service or the federal courts rule that, pursuant to section 414(H) of the Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. 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. If employee contributions are picked up, they shall be treated for all purposes of this section in the same manner and to the same extent as employee contributions made prior to the date picked up.

(Code 1971, § 15-60)

Sec. 52-90. - Buyback of municipal service.#

(a)

At the time of his/her retirement, any Tier I member who retires under section 52-77 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 service by contributing to the fund an additional percentage of his/her highest year's pay, equal to the annual contribution rate prevailing under section 52-85 at the time of the member's retirement, for each year of service purchased. In no event will a Tier I member who has completed fewer than 20 years of service be eligible to buy back 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 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, § I, 5-20-03; Ord. No. O-11-7, § I(Exh. A), 5-17-11)