§ 11-66. Provisions for police officers hired or rehired on or after September 30, 2015.

(a)

Benefits. Members of the police officers' retirement plan hired or rehired on or after September 30, 2015 shall be entitled to the applicable benefits provided in sections 11-2 through 11-61, except as follows:

(1)

The normal retirement age for police officers hired or rehired on or after September 30, 2015 shall be age fifty-five (55) or older with ten (10) years of creditable service or age fifty-two (52) with twenty-five (25) years of creditable service.

(2)

Upon reaching the normal retirement age, a police officer hired or rehired on or after September 30, 2015 shall be entitled to a retirement benefit of three (3) percent of average final compensation for each of the first twenty (20) years of creditable service, plus two (2) percent each year thereafter, for a maximum benefit of seventy (70) percent. For example, an employee at retirement age with twenty-five (25) years of creditable service will receive a benefit of seventy (70) percent of average final compensation. Provided, in no event shall any such member receive a benefit that is less than two and three-fourths (2.75) percent for each year of credited service.

(3)

A police officer hired or rehired on or after September 30, 2015 may elect an early retirement benefit upon reaching age fifty (50) with ten (10) or more years of creditable service. The early retirement benefit will be reduced by three (3) percent for each year by which the member's age at retirement precedes age fifty-five (55).

(4)

Average final compensation for a police officer hired or rehired on or after September 30, 2015 shall be based upon the best five (5) years of the employee's last ten (10) years of creditable service.

(5)

"Salary" for a police officer hired or rehired on or after September 30, 2015 shall exclude all overtime pay.

(6)

Upon reaching normal retirement eligibility, a police officer hired or rehired on or after September 30, 2015 may participate in the DROP for a maximum of four (4) years. Upon reaching normal retirement eligibility, such police officer shall have a maximum of six months to elect DROP participation and enter into the DROP. Until the police officers' retirement plan is fully funded (i.e., when the plan fiduciary net position as a percentage of the total pension liability is one hundred (100) percent or greater), the DROP interest rate for such police officers shall be zero (0) percent. Should the police officers' retirement plan become fully funded, DROP interest shall be earned at a rate based on the actual return of the plan with a minimum of zero (0) percent and a maximum of four (4) percent. A police officer may defer entry into the DROP for up to six (6) months beyond their earliest normal retirement date. Failure to begin DROP participation on or before the first available day after (6) months following a member's earliest normal retirement date shall result in the member forfeiting all rights to DROP participation.

(7)

A 13th Check Benefit will be paid to retired police officers hired or rehired on or after September 30, 2015 for years of excess investment earnings, if the funded status of the plan is one hundred (100) percent or greater (i.e., when the plan fiduciary net position as a percentage of the total pension liability is one hundred (100) percent or greater). The amount of the 13th check benefit shall be based on the retired member's monthly retirement benefit and shall not exceed one hundred (100) percent of the monthly retirement benefit payable to the eligible retiree. The amount of the 13th check benefit shall be prorated if the excess investment earnings are insufficient to fund the full benefit. "Excess investment earnings" means market rate investment earnings on police officers' retirement plan assets (net of expenses) that exceed the assumed rate of return for a given plan year.

(8)

Service-connected disability benefits for a police officer hired or rehired on or after September 30, 2015 shall be a maximum of seventy (70) percent of salary at the time of disability, less offsets for workers' compensation disability benefits, salary and net earnings from self-employment as provided in section 11-33, with a minimum benefit of forty-two (42) percent of average final compensation.

(10)

A police officer hired or rehired on or after September 30, 2015 shall be eligible for non-service connected disability benefits upon reaching ten (10) years of creditable service. Upon the pension board's determination that such police officer is eligible for a non-service connected disability, the benefit shall be equal to the member's accrued benefit as of the date of disability, which amount shall not be less than twenty-five (25) percent nor more than fifty (50) percent of average final compensation.

(11)

The service-connected pre-retirement death benefit for a police officer hired or rehired on or after September 30, 2015 shall be equal to the member's accrued benefit, up to seventy-five (75) percent of average final compensation, actuarially adjusted for the beneficiary's age and payable immediately and for the lifetime of the member's beneficiary. If there is no beneficiary, then the benefit shall be payable to the member's estate for ten (10) years.

(12)

A police officer hired or rehired on or after September 30, 2015 shall be eligible for non-service connected pre-retirement death benefits upon reaching ten (10) years of creditable service. Non-service connected pre-retirement death benefits shall be equal to a member's accrued benefit, actuarially adjusted for the beneficiary's age, with the benefit commencing on the date the member would have attained early or normal retirement age.

(b)

Contributions. Members of the police officers' plan hired or rehired on or after September 30, 2015 shall make regular contributions to the plan of eight (8) percent of salary.

(Ord. No. 124-X-15-B, § 12, 9-15-15; Ord. No. 124-X-17-A, § 2, 8-22-17)