Article 161
FIREMEN’S PENSION FUND

Sections:

161.01    Creation of fund.

161.02    Monthly contribution by firemen – Exception for leave of absence.

161.03    Gifts, bequests or donations for fund.

161.04    Annual appropriation by council for fund.

161.05    Fund for benefit of association members only.

161.06    Fund control by firemen’s pension board – Composition, term and vacancy.

161.07    Board records, meetings and procedure.

161.08    Surety bond for board treasurer – Premium payment.

161.09    Board reports to council and association.

161.10    Investments authorized – Mortgage limitations.

161.11    Creation of association – Eligibility for membership.

161.12    Duties of association members.

161.13    Expulsion from association membership.

161.14    Qualifications to retire on pension.

161.15    Mandatory retirement at age 65.

161.16    Retiree subject to reserve service until unfit.

161.17    Pension for service-incurred disability.

161.18    Pensions, widows’ pensions and service increments.

161.19    Refund of contributions to widow, children or estate.

161.20    Payment of disability pension subject to state law.

161.21    Benefit payments chargeable only to pension fund.

161.22    First paid workday as effective date for commencing accrued time.

161.23    Severability – Validity of remaining provisions.

161.24    Vesting.

161.25    Transferred participants.

161.26    Distributions for health insurance.

161.27    Pensions of members hired after January 30, 2013.

161.28    Defined contributions provisions.

161.01 Creation of fund.

Pursuant to the provisions of the Act of June 23, 1931, P.L. 932, as amended, the city created a paid firemen’s pension and retirement system, which is known and designated as the paid firemen’s pension fund, and is hereafter referred to in this article as the “fund”. On February 10, 1968, pursuant to proceedings lawfully taken under and pursuant to the Act of July 15, 1957, P.L. 901, No. 399, as amended, the Optional Third Class City Charter Law, the City of Meadville became an optional charter city operating as a council-manager form of government. Since February 10, 1968, the fund has been maintained, administered and continuously operated as a pension fund of the city as an optional charter city under and pursuant to the terms of the Act of July 15, 1957, P.L. 901, No. 399, as amended. (Ord. 3562 § 1, 2000; Ord. 2362 § 1, 1954)

161.02 Monthly contribution by firemen – Exception for leave of absence.

(A) Except as has been heretofore (and may hereafter from time to time be) otherwise provided in an applicable labor relations agreement approved by the city council of the City of Meadville, no participant contributions shall be required to be made to the firemen’s pension fund (“fund”) during the last six months of 1997 other than any contribution required pursuant to 53 P.S. Section 39322(b)(2) (which shall not exceed $1.00 per month per member). In each year thereafter, contributions by the fund members employed in the fire department will be set at zero (other than any contribution required pursuant to 53 P.S. Section 39322(b)(2) (which shall not exceed $1.00 per month per member), unless according to an annual study performed by the actuary selected by the city, participant contributions are necessary to ensure that no contributions from the city’s general fund are required to keep the fund actuarially sound or otherwise required pursuant to state laws, including for this purpose the Third Class City Code. If contributions are required pursuant to the previous sentence, participant contributions will be set at that percent of compensation necessary to ensure no contributions from the city’s general fund are necessary to the fund. No participant contributions shall be required that shall be in excess of the Third Class City Code, 53 P.S. Section 39320 et seq. In the above determination of the city contribution to the fund there shall be allocated to the fund the general municipal pension system state aid received by the city as a result of financial requirements of the fund pursuant to Act 205, 53 P.S. Section 895.101 et seq. The above allocation formula shall not be binding on the city in its actual split of general municipal pension system state aid between pension plans. (This means that in determining the firefighters’ annual contribution, if any, the maximum contribution shall not exceed that amount necessary to make up the difference between the moneys attributable to the number of firefighters pursuant to Section 402(e)(2)(ii) subject to the limitation contained in Section 402(f)(2) (calculated separately for the firefighters) of Act 205 of 1984, 53 P.S. Sections 895.402(e)(2)(ii) and 402(f)(2), and the financial requirements of the fund pursuant to Act 205. The firefighters’ annual contribution, if any, shall not exceed the maximum contribution in the Third Class City Code.) Said sum shall be inclusive of all required payments to the fund pursuant to any and all provisions of this section. The city treasurer, or such person as he or she may designate, is hereby authorized to deduct such sum from the pay, salary or compensation of each paid fireman, which sum shall be applied to the purpose of this article. The city treasurer, or such person as he or she may designate, is hereby authorized and directed to make such deductions and to pay the same to the treasurer of the firemen’s pension fund board.

Notwithstanding anything to the contrary in this subsection (A), members’ contributions shall be as follows: three percent of annual salary retroactive to January 1, 2012, for the period January 1, 2012, through December 31, 2012; four percent of annual salary for the period January 1, 2013, through December 31, 2013; and five percent of annual salary for the period January 1, 2014, through December 31, 2014.

(B) The payment of the monthly sum or contribution hereinbefore provided shall cease and determine at the time the member commences to receive the pension hereinafter provided. Such payment shall continue even though such member would qualify for pension benefits, if the member has not elected to retire or has not been involuntarily retired by the city.

(C) Any member of the association who has been granted a leave of absence from the fire department by council shall be excused from any contribution to the fund during such absence. The leave of absence shall not interrupt the continuity of service of such member and the first six months of any leave of absence shall not be deducted from the years of service of the member; however, any months in excess of six months spent on leave of absence shall not count towards credit for years of service. Any leave of absence shall not be granted for a period exceeding one year, except in the case of a member being granted such leave of absence to engage in military service during war or time of emergency. (Ord. 3713 § 1, 2013; Ord. 3657 § 1, 2008; Ord. 3488 § 1, 1998; Ord. 3439 § 1, 1996; Ord. 3174 § 1, 1988; Ord. 2732 §§ 1, 2, 1970)

161.03 Gifts, bequests or donations for fund.

All gifts, testimonials, bequests, legacies or donations made to the fund or to anyone in trust for the benefit of the fund shall become and be a part of the fund. (Ord. 2362 § 3, 1954)

161.04 Annual appropriation by council for fund.

There shall be paid to the firemen’s pension fund by council an appropriation made of such sum of money not less than one-half percent nor more than three percent of all city taxes levied by the city, other than taxes levied to pay interest on or to extinguish the debt of the city or any part thereof. However, council shall annually pay to the fund not less than one-half percent of all city taxes levied by the city, other than taxes levied to pay interest on or to extinguish the debt of the city or any part thereof. (Ord. 2732 § 3, 1970)

161.05 Fund for benefit of association members only.

The fund shall be maintained, directed, applied and distributed only pursuant to provisions herein contained and the regulations adopted pursuant thereto for the benefit only of the members of the association herein created. (Ord. 2362 § 5, 1954)

161.06 Fund control by firemen’s pension board – Composition, term and vacancy.

The firemen’s pension fund shall be under the care, direction, control and administration of the firemen’s pension board, (hereinafter referred to as the board) which shall consist of the following city officers: the mayor, finance director, city manager, city controller, chief of the fire department and two members of the association. The mayor shall be the president of the board. The membership on the board of the above-named city officers and the fire chief shall be concurrent with their tenure in office. Of the two members of the board chosen by the members of the association, one shall be chosen for a term of two years and one for a term of four years. Biannually thereafter, one member shall be chosen for a term of four years in the place of the member whose term expires. In case of vacancy on the board, exceeding one month by reason of one or more of the above-named city offices not being filled, council shall fill such vacancy by the appointment of another city officer to fill the unexpired term of the office so vacant, except in the case of a vacancy on the board with respect to the offices held by one or both of the two members of the fire department, the fire chief shall hold an election of the members of the association to fill the unexpired term of the office so vacated. The members of the board shall serve without compensation, but shall be reimbursed from the fund for any necessary expenditures. (Ord. 2732 § 4, 1970)

161.07 Board records, meetings and procedure.

The board shall keep full and accurate accounts of all of its transactions. It shall have full power to make rules for the transaction of its business, application of its funds, its time and place of meeting, etc., subject to the special provisions and regulations contained in this article, and in conformity with the provisions of the acts of assembly hereby applicable. The board shall meet at least every three months at a stated time, or at such times as it by resolution may designate, or upon call of the president, for the transaction of such business as may properly come before it. Special meetings shall also be called by the president at any time upon written request of the majority of the board or of 51 percent of the members of the association. At least 10 days’ written notice shall be given to each member of the board of the time and place of the annual or any special meeting. The notice of a special meeting shall state briefly the special business to come before the meeting and only the business so stated shall be considered at such meeting. A quorum shall consist of four members of the board for the transaction of business. Robert’s Rules of Order shall govern the procedure of business before the board. (Ord. 2362 § 7, 1954)

161.08 Surety bond for board treasurer – Premium payment.

The treasurer of the board shall give a surety bond to the city for the faithful performance of his duties, in a sum to be set by the board, the premium of such bond to be paid from the fund. (Ord. 2362 § 8, 1954)

161.09 Board reports to council and association.

The board shall make an annual report to council and to the association on the second Tuesday of February and on November 1st each year of all receipts, disbursement of the fund and such other matters as should properly be embodied in such report. (Ord. 2362 § 9, 1954)

161.10 Investments authorized – Mortgage limitations.

The board is authorized to invest any money accumulated in the fund in such investments as are authorized under and pursuant to the laws of the commonwealth of Pennsylvania for fiduciaries; including mortgages of one or more individuals or corporations, securing bonds or other obligations; such mortgages shall be a first lien upon improved real estate within this commonwealth, including improved farm lands. The mortgages or the unpaid principal amounts of the obligations shall not exceed two-thirds of a fair value of the real estate as fixed by two persons familiar with real estate values in the vicinity who have actually inspected it and shall so verify by written appraisement preserved among the records of the fiduciary. The principal debt evidenced by the obligations shall be payable in not more than five years after the date of acquisition by the association, or be amortized within a period of not exceeding 20 years from the date of the acquisition, in installments totaling each year not less than three percent thereof. (Ord. 2362 § 10, 1954)

161.11 Creation of association – Eligibility for membership.

(A) An association is hereby created which shall be known and designated as the paid firemen’s pension fund association, hereinafter referred to as “the association”.

(B) The membership of the association shall consist of all persons now regularly appointed or now employed by the city, as paid firemen, and such persons hereinafter employed as paid firemen, who shall, within 30 days of the enactment of this section (May 25, 1954) or within 30 days following their appointment elect in writing to accept the provisions hereof. However, no person who is over the age of 40 years shall be employed as a paid fireman, and no clerk or other person shall be eligible for membership in the association unless he is a member of the city fire department, has been appointed as a fireman, has first passed the physical tests required for appointment as fireman, or such physical tests as may from time to time be prescribed by the board, and has been duly qualified and approved by the city civil service commission.

(C) Each paid fireman who files a written acceptance of the terms and provisions of this article within the period of 30 days as provided for in subsection (B) of this section shall be automatically admitted to full benefits of this system, subject to the qualifications and limitations herein and any present or future acts or laws of the commonwealth of Pennsylvania. Each paid fireman who fails to file such written acceptance within such period of 30 days shall be admitted to membership only by a majority vote of the members of the association. (Ord. 2362 § 11, 1954)

161.12 Duties of association members.

The members of the association, subject to the limitations of this article and of law, shall:

(A) Establish rules and regulations for the administration and transaction of business;

(B) Elect officers in accordance with established rules and regulations to represent the association;

(C) Certify to the board annually a list of the members in good standing, the amount of wages and salaries paid to each member in the city fire department, together with the list of the membership of the association who, during the year, were dismissed, resigned or terminated their service and the date thereof; and

(D) Furnish to the board, upon request, such information relative to the subject of this article as the board shall require. (Ord. 2362 § 12, 1954)

161.13 Expulsion from association membership.

A member of the association may be expelled from membership and be deprived of the right of participation in the fund by the two-thirds vote of the association membership for failure to comply with any of the provisions of this article or any general regulation adopted pursuant thereto relating to the management of the fund, or the transaction of the business of the association. No member shall be expelled pursuant to this section without due notice and a hearing at which he shall be afforded the opportunity to present witnesses and be represented by counsel if he so desires. (Ord. 2362 § 13, 1954)

161.14 Qualifications to retire on pension.

(A) Any member of the association in good standing who has served in the city fire department for 20 years prior to the adoption of this section (February 24, 1970), or who has rendered and completed 20 years’ continuous service as a paid fireman and has attained the age of 50 years shall be entitled to be honorably discharged and retired at his request on a pension from active duty. The pension shall date from the time the member shall have filed his application with the board. However, the city in its sole discretion may require an employee to be retired and to go on pension provided he has at least 20 years of service and has attained the age of 55 years.

(B) Fifty percent of unused accumulated sick leave for which the member does not receive compensation may be credited as continuous service for the purposes of calculating years of service under the fund to a maximum of 1,296 hours. (Ord. 3657 § 2, 2008; Ord. 2732 § 5, 1970)

161.15 Mandatory retirement at age 65.

Every member of the association who is regularly employed by the city fire department and reaches the age of 65 years shall be honorably discharged and retired by the board on a pension, to date from the time such member attained the age of 65 years. (Ord. 2362 § 15, 1954)

161.16 Retiree subject to reserve service until unfit.

Members of the paid fire department who are retired as provided above shall be subject to service from time to time as a firemen’s reserve in cases of emergency until unfit for such service, when they may be finally discharged by reason of age or disability. (Ord. 2362 § 16, 1954)

161.17 Pension for service-incurred disability.

(A) Any active member of the city fire department and a member of the association who has become permanently and totally disabled by reason of injuries or sickness incurred in the line of duty may, upon his application, be placed on the retired list and be entitled to the full benefits of this article. Such benefits shall become effective and payable as of the date such total and permanent disability is certified, subject nevertheless to the provisions of existing and future laws of Pennsylvania.

(B) Before any benefits become due or payable under this section, the application and fact of total and permanent disability shall be certified to the board by two reputable physicians, one to be chosen by the board and the other by the applicant. These physicians shall make a physical examination and file their opinion in writing with the board. In case of dispute a third physician shall be chosen by the board.

(C) The board shall have the authority to order subsequent examinations, from time to time, by physicians in the same manner as set forth above to ascertain if the disability of the pensioner has been removed, and if it has, the board shall terminate the pension and the pensioner shall be reinstated as an active member of the city fire department with the same rank and rating that he had upon retirement. The fees of the first two physicians shall be paid by the board and the third, if necessary, shall be paid by the applicant.

(D) Any member of the association who becomes permanently and totally disabled by reason of injuries or sickness incurred not in the line of duty shall, after examination and certification as above, be entitled to a pro rata share of the full benefits hereunder as his number of years of service indicates as follows:

Service Years (Inclusive)

Pension Benefits

0 to 11

None

12 to 15

3/5

16 to 19

4/5

20 or over

Full

(Ord. 2732 § 6, 1970)

161.18 Pensions, widows’ pensions and service increments.

(A) Payments of pensions shall not be a charge on any fund in the treasury of the city or under its control save the firemen’s pensions fund herein provided for. The basis of the pension of a member shall be determined by the monthly salary of the member at the date of retirement, or the highest average annual salary which he received during any five years of service preceding retirement, whichever is the higher, whether for disability, or by reason of age or service, and except as to service increments provided for in subsection (C) of this section, shall be 55 percent of the annual salary of such member at the time of retirement computed at such monthly or average annual rate, whichever is the higher. In the case of the payment of pensions to members for permanent injury incurred in service, and to families of members killed or who die in service, the amount and commencement of the payment of pensions shall be fixed by regulations of the board or by other provisions of this article. Such regulations shall not take into consideration the amount and duration of workmen’s compensation allowed by law.

(B) From and after January 1, 1972, each active member of the city fire department and a member of the association shall contribute one percent of his monthly wage or salary for the purpose of providing a pension for widows or orphans of such members as set forth hereunder. This contribution shall be in addition to contributions for basic pensioning and servicing as hereinafter provided in this article. This additional contribution shall be paid at the same time and in the same manner as retirement contributions, and may be withdrawn in full, without interest, by persons who leave the employment of the city, subject to the same conditions by which basic retirement contributions may be withdrawn under this article.

Effective for retirements or deaths after August 30, 1992, the widow of an active member of the city fire department or a member who retires on pension or who is killed in service or who dies in the service, or if no widow survives, or if she survives and subsequently dies, then the child or children under the age of 18 years of a member shall, during her lifetime in the case of a widow, or until reaching the age of 18 years in the case of a child or children, be entitled to receive a pension in the amount payable to the member or which would have been payable had he been retired at the time of his death.

(C) In addition to the pension which is authorized to be paid from the firemen’s pension fund by this Act and notwithstanding the limitations therein placed upon such pensions and upon contributions, every contributor who shall become entitled to the pension shall also be entitled to the payment of a “service increment” in accordance with and subject to the conditions hereinafter set forth:

(1) Service increment shall be the sum obtained by computing the number of whole years after having served the minimum 20-year service during which a contributor has been employed by the city and paid out to the city treasury, and multiplying the said number of years so computed by an amount equal to one-fortieth of the retirement allowance which has become payable to such contributor in accordance with the provisions of this article. In arriving at the minimum 20-year service, all members of the firemen’s pension fund who are contributors and who served in the armed forces of the United States subsequent to September 1, 1940, and who were not members of the firemen’s pension fund prior to such military service, shall be entitled to have full credit for each year or fraction thereof, not to exceed five years of such service, upon their payment to the firemen’s pension fund of an amount equal to that which they would have paid had they been members during that period of time equal in length to the period for which they desire credit, and ending with the date of their employment by the city, and their payment to such fund of an additional amount as the equivalent of the contributions of the city, plus any interest the city would have been required to pay on the contributions on account of such military service. In computing the service increments, no employment after the contributor has reached the age of 65 years shall be included, and no service increment shall be paid in excess of $100.00 per month.

(2) Each contributor, from and after the effective date of this amendment, shall pay into the pension fund a monthly sum in addition to his pension contribution, which shall not exceed the sum of $1.00 per month; and provided, that such service increment contribution shall not be paid after a contributor has reached the age of 65 years.

(3) Service increment contributions shall be paid at the same time and in the same manner as pensions, and may be withdrawn in full, without interest, by persons who leave the employment of such city, subject to the same conditions by which retirement contributions may be withdrawn, or by persons who retire before becoming entitled to any service increment.

(4) All members of the fire department who are now contributors to the pension fund and all those employed by the city after the effective date of this amendment, if required to become contributors to the pension fund, shall be subject to the provisions of this Act. However, such payments shall be made by the contribution retroactively from July 20, 1968, or from the date of employment if employed after July 20, 1968.

(D)(1) Entitlement to Special Ad Hoc Adjustment. For so long as such adjustments are mandated by state law, retirees who meet the following qualifications shall be entitled to payment of special ad hoc post-retirement pension adjustments from the firemen’s pension fund effective January 1, 1989, in accord with the provision of this section:

(a) The retiree has terminated active employment with the city as a fireman;

(b) The retiree is receiving a retirement or disability pension benefit from the city on the basis of active employment with the city as a fireman; and

(c) The retiree began receiving the retirement or disability pension benefits before January 1, 1985.

(2) Amount of Special Ad Hoc Adjustment. The special ad hoc post-retirement adjustment under subsection (D)(1) of this section shall be paid to retired firemen as follows:

(a) The sum of $25.00 per month, if on January 1, 1989, the retiree has been retired at least five years but less than 10 years.

(b) The sum of $50.00 per month, if on January 1, 1989, the retiree is totally disable and has been retired less than 10 years.

(c) The sum of $75.00 per month, if on January 1, 1989, the retiree has been retired at least 10 years but less than 20 years.

(d) The sum of $150.00 per month, if on January 1, 1989, the retiree has been retired at least 20 years.

(3) Payment of Special Ad Hoc Adjustment. The special ad hoc adjustment shall apply to a retiree’s retirement of disability pension benefits payable after December 31, 1988. (Ord. 3643 § 1, 2007; Ord. 3562 § 2, 2000; Ord. 3475 § 1, 1997; Ord. 3212 § 1, 1989; Ord. 2796 § 2, 1972)

161.19 Refund of contributions to widow, children or estate.

(A)  If a member of the association contributing to the fund shall be dismissed from the city fire department or for any other reason ceases to be a member of the department before he becomes entitled to a pension hereunder, the total amount of the contribution paid into the fund by such member shall, upon his request, be refunded in full, without interest.

(B) In the event of the death of a member of the association before he becomes entitled to the pension herein provided for, the total of the contributions paid into the fund by such member shall be paid, without interest, to the widow of the member, if living, otherwise to his children equally if any, otherwise to his estate.

(C) In the event of the death of a member of the association while receiving a pension hereunder, but before the amount of pension received shall equal the total of the amount of contributions paid into the fund by the member on his behalf, the difference between the amount of pension paid and the amount contributed to the fund by the deceased member shall be paid to his estate if the widow pension provisions of this article are not applicable. (Ord. 2796 § 3, 1972)

161.20 Payment of disability pension subject to state law.

In the case of the payment of pensions to members for permanent injury or disability incurred, the amount and commencement of the payment of pension shall be as established in this article or regulations of the board approved by council, but subject to applicable state laws which are binding on optional third class cities. (Ord. 2732 § 7, 1970)

161.21 Benefit payments chargeable only to pension fund.

Payment for pension and allowances hereunder shall not be a charge on any other fund of the city treasury or of any fund under its control, except the fund as provided for herein. (Ord. 2362 § 21, 1954)

161.22 First paid workday as effective date for commencing accrued time.

For the purpose of determining the effective date that city firemen shall commence to accrue time towards pension eligibility hereunder, it is hereby ordained that the first day such firefighter actually worked and was paid by the city shall be the effective date of commencing employment hereunder and that the probationary period, after final acceptance by the city, shall be considered as accrued time for pension purposes hereunder. (Ord. 2732 § 8, 1970)

161.23 Severability – Validity of remaining provisions.

The provisions of this article as amended shall be severable and if any section or subsection is held to be unconstitutional or invalid, the decision shall not be construed to affect the validity of any of the remaining sections or subsections. It is hereby declared as the intent of council that this article would have been adopted as if such unconstitutional or invalid provisions had not been included herein. (Ord. 2732 § 11, 1970; Ord. 2362 § 22, 1954)

161.24 Vesting.

Each member who completes 12 years of eligible employment as defined in MMC 161.11, and any otherwise qualified dependent of any such member, shall be eligible to receive benefits from the pension fund at such time as the member attains age 50, or would have attained age 50, as follows:

(A) A member who is a member of the firemen’s pension fund, who for any reason ceases to be employed as a full-time member for the City of Meadville before completing the minimum age and minimum period of continuous service requirements of said pension fund, if any, but after having completed 12 years of full-time service, shall be eligible to vest his retirement benefit subject to the following conditions:

(1) The member must file with the firemen’s pension board a written notice of his intent to vest;

(2) The member must include in the notice the date he intends to terminate his service as a full-time member;

(3) The termination date shall be at least 30 days later than the date of notice to vest;

(4) The member must be in good standing with the fire department on the date of notice to vest; and

(5) The firemen’s pension board shall indicate on the notice to vest the rate of the monthly pay of the member as of the date of the notice to vest or the highest average annual salary which the member received during any five years of service preceding the date, whichever is the higher.

(B) Upon reaching the date which would have been the member’s retirement date had the member continued his full-time employment with the fire department, the member shall notify the firemen’s pension board in writing that the member desires to collect his pension. The amount of retirement benefits the member is entitled to receive shall be computed as follows:

(1) The initial determination of the member’s base retirement benefits shall be computed on the pay or salary indicated on the notice to vest; and

(2) The portion of the base retirement benefits due the member shall be determined by applying to the base amount the percentage that his years of service actually rendered bears to 20. Notwithstanding anything contained herein to the contrary, in no event shall the percentage exceed 100 percent. (Ord. 3598 § 1, 2003; Ord. 3439 § 2, 1996)

161.25 Transferred participants.

(A) For employee transfers from the City of Meadville fire department to the City of Meadville police department on or after July 1, 2005, an active participant in the City of Meadville firemen’s pension fund (firemen’s pension fund) immediately prior to transfer, who is transferred to the City of Meadville police department and who, as of the date of transfer, is otherwise eligible to participate in the City of Meadville police pension plan (police pension plan), may, within one year of commencing participation in the police plan, elect to have his years of credited service in the firemen’s pension fund transferred to the police pension plan. Said election shall be made by executing an election form provided by the city and shall be irrevocable. If no election is made within the one-year period specified in this subsection, the participant shall be deemed to have elected not to have his credited service in the firemen’s pension fund transferred to the police pension plan and shall have no further rights to make an election under this section. A participant making such election shall be termed for the purposes of this section as a “transferring participant.”

(B) The consequences of making the election to transfer credited service from the firemen’s pension fund to the police pension plan described in subsection (A) of this section shall be the following:

(1) A transferring participant shall receive service credit in the police pension plan for his or her accumulated years of credited service as a participant in the firemen’s pension fund and, upon transfer of service credit to the police pension fund, the transferring participant’s years of credited service in the firemen’s pension plan shall be zero.

(2) A transferring employee shall not be entitled to any service credit in the firemen’s pension fund for any service rendered as a participant in the police pension plan.

(3) Notwithstanding anything to the contrary in either the police pension plan or the firemen’s pension fund, a transferring participant (as well as his survivor or beneficiary) shall be entitled to no benefits of any kind from the firemen’s pension fund including, but not limited to, a return of accumulated employee contributions.

(4) Upon election of a transferring employee to transfer his credited service from the firemen’s pension fund to the police pension plan, the transferring employee’s participant contributions made to the firemen’s pension fund shall be transferred to the police pension plan.

(5) Upon election of a transferring employee to transfer his credited service from the firemen’s pension fund to the police pension plan, the city shall transfer the amount of funds it allocated to the firemen’s pension fund attributable to the participation of the transferring employee in the firemen’s pension fund to the police pension plan.

(6) An election made under this section shall be binding on the transferring participant, his survivors, beneficiaries, heirs and estate. (Ord. 3636 § 1, 2006)

161.26 Distributions for health insurance.

Effective upon adoption of this amendment, a retired member may elect, in accordance with IRC Section 402(l), that a portion of his retirement benefit, that would otherwise be paid to him may instead be used to purchase health insurance, subject to the following conditions:

(a) Only a member who: (i) has terminated employment with the city after the attainment of normal retirement age or on account of a disability, (ii) is entitled to benefit payments under this article, and (iii) is covered by a health insurance plan sponsored by the city or (iv) is covered by a health plan that the city has determined would be administratively feasible for the city to make payments to, may make this election.

Any member who terminated employment prior to normal retirement age for any reason other than a disability is not eligible to make the election. No persons receiving benefits under this article other than members are eligible to make the election.

(b) A member may not elect to have more than $3,000 of his benefit used to pay insurance premiums per calendar year. The dollar amount is periodically adjusted, without formal amendment, in accordance with IRC Section 402(l).

(c) Payments shall be made only for “qualified health insurance premiums” as that term is used in IRC Section 402(l). Furthermore, payments shall be used only to pay premiums under a health insurance plan described in subsections (a)(iii) and (a)(iv) of this section. The city may nullify a member’s election if the city determines, in its sole discretion, that complying with the election would be administratively infeasible.

(d) For the purposes of this section, “disability” shall mean qualification of the member for an in-service disability pursuant to MMC 163.16. (Ord. 3657 § 3, 2008)

161.27 Pensions of members hired after January 30, 2013.

Effective January 30, 2013, the pension of any member hired on or after January 30, 2013, shall be calculated pursuant to the method set forth in MMC 161.18(A) at a rate of 50 percent of the annual salary of such member at the time of retirement, computed at such monthly or annual rate, whichever is higher. (Ord. 3713 § 2, 2013)

161.28 Defined contributions provisions.

(A) Defined Contribution Plan.

(1) Eligibility for Participation in Defined Contribution (DC) Features. In general, this section applies only to fire employees (including those collectively bargained) hired after November 27, 2017, on the first day of employment; provided, that all prerequisites to participation under the plan have been fulfilled, including, but not limited to, completion of any probationary status and grant of regular full-time (at least 35 hours per week) employee status and after any completion of any forms required by the plan administrator. Such persons shall be referred to as participants. Any employee who participates (or is eligible to participate) in the defined contribution provisions of this section shall not be eligible to participate in the defined benefit features of this article for the same period of service.

(B) The defined contribution provisions contained in MMC 165.19(B) through (Q) are incorporated herein and made a part hereof such that firefighter full-time new hires after November 27, 2017, participate in the defined contribution provisions and not in the defined benefit features of Article 161 MMC. All mandatory employee contributions made after November 27, 2017, by such employees continue to be “picked up” by the employer in lieu of contributions by the employees as set forth in MMC 165.19(C)(2).

(C) Normal Retirement. Normal retirement for this section shall be after meeting the requirements set forth in MMC 161.14(A). (Ord. 3772 § 1 (Exh. A), 2018)