Article 165 CITY EMPLOYEES’ RETIREMENT AND PENSION FUND

Article 165
CITY EMPLOYEES’ RETIREMENT AND PENSION FUND

Sections:

165.01 Creation of fund and board.

165.02 Board composition – Duties and investments.

165.03 Pension entitlement – Retirement and service increment allowances.

165.04 Contributions to fund – Refunds and determination of continuous service.

165.05 Optional contribution of laborers on per diem wage.

165.06 Mandatory retirement age.

165.07 Department heads to certify records to board.

165.08 Annual appropriation by city.

165.09 Persons entitled to benefits – Definitions.

165.10 Computation of time of service.

165.11 Pension not subject to attachment or assignment.

165.12 Compensation or pension involving other political subdivisions.

165.13 Repealed.

165.14 Eligible persons to indicate total acceptance of coverage.

165.15 Benefit payments chargeable only to pension fund.

165.16 Severability – Validity of remaining provisions.

165.17 Deferred vested benefit.

165.01 Creation of fund and board.

Pursuant to the provisions of the Act of May 23, 1945 (P.L. 903), as amended, (53 P.S. Section 39371 et seq.), and the provisions of the Optional Third Class City Charter Law (53 P.S. Section 41101 et seq.), there is hereby created an employees pension fund and pension board. (Ord. 2745 § 1, 1970)

165.02 Board composition – Duties and investments.

The pension board shall consist of the city manager, city controller, finance director and two employees to be chosen by the employees contributing to the pension fund. It shall be the duty of the board to register all persons employed by the city and to administer the collection and distribution of the fund herein provided for, and to make such reasonable rules in the premises as the board may deem necessary to carry into effect the provisions of this article. It shall be the duty of the pension board to receive and retain and when deemed advisable, to invest the funds in accordance with the provisions of this article and by such methods as are authorized under and pursuant to the laws of the commonwealth of Pennsylvania for fiduciaries, and 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 and shall not exceed two-thirds of the fair value of such real estate. Such mortgage shall be payable not more than five years after the date thereof, or the date of any renewal or extension thereof, or it shall be amortized in installments totaling in each year not less than three percent per annum of the face amount of the bond or other obligations secured thereby, over a period not exceeding 20 years from the date thereof, or the date of any renewal or extension thereof. (Ord. 2745 § 2, 1970)

165.03 Pension entitlement – Retirement and service increment allowances.

(A) Every person now or hereafter elected or appointed to an office of or employed by the city who has attained the age of 60 years or over and who has served as an officer or employee for a period of 20 years or more shall, upon application to the board, be retired from service, and shall during the remainder of his life receive the compensation fixed by this article, subject to such qualifications as are hereinafter contained.

If any person has served 20 years and voluntarily retires, he shall be entitled to the compensation provided in this article at the age of 60 years. During the lifetime of any such person, he shall be entitled to receive as compensation annually from the fund set aside for the purpose, 50 percent which would constitute the highest average annual salary of wages which he earned during any five years of his service to the city, or which would be determined by the rate of the monthly pay of such person at the date of retirement, whichever is the higher. Such compensation shall be paid in monthly payments.

(B) Where an officer or employee has served for 12 years or more and has attained the age of 60 years, and his tenure of office or employment shall be terminated without his voluntary action before the expiration of 20 years of service, he shall, in such event, during the remainder of his life, be entitled to receive such portion of the full compensation as the period of his service, up to date of his termination, bears to the full 20-year period of service. Where an officer or employee has served for 12 years or more and has not attained the age of 60 years, and his tenure of office or employment shall be terminated without his voluntary action before the expiration of 20 years of service, he shall, in such event, during the remainder of his life, after attaining the age of 60 years, be entitled to receive such portion of the full compensation as the period of his service up to the date of his termination, bears to the full 20-year period of service. Where an officer or employee has served for 20 years or more and his tenure of office or employment shall be terminated without his voluntary action, he shall be entitled to full compensation for the remainder of his life, after attaining the age of 55 years, conditioned upon his continuing his contributions into the fund at the same rate as when he was dismissed until he attains the age of 55 years.

(C) In addition to the retirement allowance which is authorized to be paid from the pension fund by this article and notwithstanding the limitations therein placed upon such retirement allowances and upon contributions, every officer or employee who becomes entitled to the retirement allowance as provided under this article shall also be entitled to the payment of a service increment under the following conditions:

(1) Service increment shall be the sum obtained by computing the number of whole years after having served 20 years, required by this article, during which a contributor has been employed by the city and multiplying such 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 computing this service increment, no employment after the contributor reached the age of 65 years shall be included.

(2) Each contributor who so chooses to become entitled to the service increments provided by this article shall pay into the retirement fund a monthly sum, in addition to his retirement contribution, which shall be equal to one-half percent of his salary. However, 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 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 retirement contributions may be withdrawn, or by persons who retire before becoming entitled to any service increment.

(4) Every contributor who chooses to become entitled to the service increment and is presently employed by the city shall be required to make a contribution to the fund in accordance with the rates and terms hereinbefore specified. However, such payment shall be made by the contributor retroactively from October 19, 1967, or from the date of employment if employed after October 19, 1967.

(D) Spousal Benefits – Entitlement to Allowance for Spouse or Children – Eligibility and Termination. From and after the effective date of this amendment, the surviving spouse of a city employee who retires on pension after attaining age 60 and 20 years of completed service and who dies (or who is eligible for such retirement) shall, during such spouse’s lifetime or for so long as he or she does not remarry, be entitled to receive the pension the employee was receiving or would have been receiving had the employee been retired at the time of his or her death. Upon remarriage, a spouse drawing such pension shall immediately notify the city of such remarriage. If no spouse survives or survives and subsequently dies or remarries, then the children of such employee under the age of 18 years shall, until reaching the age of 18 years, be entitled to receive such pension.

(E) Disability and Early Death Benefits – Benefits for Death or Total Disability Not in the Line of Duty. Any city employee who is a member of the pension fund and who is totally disabled due to injuries or mental incapabilities sustained or arising other than in the line of duty and who is unable to perform the duties of his or her city office or position as the result thereof shall be entitled to a pension in accord with the following schedule:

(1) One-eighth of his or her annual compensation if such employee has less than five years of completed service at the time of his or her death or disability; or

(2) One-fourth of his or her annual compensation if such employee has less than 10 but more than five years of completed service at the time of his or her death or disability;

(3) One-half of his or her annual compensation if such employee has more than 10 years of completed service at the time of his or her death or disability.

The disability pension hereby shall continue for the duration of the total disability of the disabled employee and, should such disability continue for the balance of the life of such employee, shall continue during such employee’s life. Payment of such pension shall commence immediately as of the date such total disability is established. Proof of such total disability shall consist of a sworn statement of three practicing physicians, designated by the board, that the employee is in the condition of health which would totally disable him from performing the duties of his position or office. Such person shall thereafter be subject to physical examination at any reasonable time upon order of the board, and upon his refusal to submit to any such examination, his compensation shall cease.

Any pension which would be payable under the terms of this section to a city employee in the event of a total disability shall be payable to the surviving spouse of any city employee who dies; provided, that such spouse is not entitled to benefits under subsection (D) of this section. If any such spouse shall die or remarry, the pension payable under the terms of this section shall be payable to the child or children of the deceased employee until such child or children attain the age of 18 years. In all events, the spousal pension provided herein shall end upon the death or remarriage of the surviving spouse or upon the date on which the youngest of the deceased employee’s children shall attain 18 years of age.

(F) Return of Contributions. If a person entitled to pension benefits under this article shall be dismissed from city employment or for any other reason ceases to be an employee of the city before he or she becomes entitled to a pension hereunder, the total amount of the contribution paid into the fund by such person shall, upon his or her request, be refunded in full, without interest.

In the event of the death of such person before he or she becomes entitled to the pension herein provided for, the total of the contributions paid into the fund by such person shall be paid, without interest, to his or her spouse, if living; otherwise in equal shares to his or her children, if any, otherwise to his or her estate.

(G) Employee Contribution. In consideration of the grant of the spousal and disability benefits required by this article, each employee shall pay to the pension fund a special assessment equal to one percent of the gross compensation of such employee from city employment. Such contribution shall be made by payroll deduction. (Ord. 3515 § 1, 1998; Ord. 3440 § 1, 1996; Ord. 3341 § 2, 1993; Ord. 3213 §§ 1 – 4, 1989; Ord. 2745 §§ 3 – 6, 1970)

(H) In-Service Disability Benefit. A member who has completed at least 15 years of service and who is totally disabled due to injuries or mental incapacities sustained in the line of duty and who is unable to perform the duties of his or her city office or position as the result thereof, shall be entitled to a pension in the amount of one-half of his or her annual compensation.

165.04 Contributions to fund – Refunds and determination of continuous service.

(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, each officer and employee of the city shall contribute to the fund monthly during his employment by the city until retirement a sum equal to five percent of such officer’s or employee’s monthly wage, salary or such other compensation due to any such employee. 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 officer and employee required to make payment hereunder and to pay the same over to the treasurer of the city employees’ retirement and pension fund, to be applied to the purposes of this article.

(B) Said sums shall be inclusive of all required payments of the fund pursuant to any and all provisions of this section.

(C) If for any cause a person contributing to the fund has served less than 12 years and ceases to be in the service of the city, he shall become entitled to the total amount of the contributions paid into the fund by him, with simple interest at five percent per annum if he is not a member of a bargaining unit or without interest if he is a member of a bargaining unit.

(D) If for any cause any person contributing to the fund ceases to be in the service of the city before he has become entitled to any compensation (including for this purpose failure of a member to timely file a notice to vest), the total amount of the contributions paid by him into the fund shall be refunded, in full, with five percent simple interest per annum if he is not a member of a bargaining unit or without interest if he is a member of a bargaining unit. However, if any person has the amount contributed returned to him as aforesaid, and shall afterward re-enter the service of the city, he shall not be entitled to the compensation designated, unless he returns to the fund the amount withdrawn, in which event the required period of service under this article shall be computed from the time he first entered the service of the city omitting only the time absent from city employment, otherwise, the date of his period of service shall commence upon his re-entering city service. In the event the reason for leaving the city employment is due to service in the armed forces of the United States by enlistment or otherwise, and if upon honorable discharge from the service, an employee returns to city employment, upon payment into the fund of the same contributions he would have been required to make for the period of his time spent in the armed forces, and provided such service is not in excess of six years, the period of service shall be included in his period of service of the city for pension purposes. The required contributions for time spent in the armed forces shall be calculated at the same rate paid by other employees during the same period and calculated on the rate of pay drawn by such employee at the time of leaving city employment, time spent in the service of the United States armed forces and return to city employment shall be continuous, except that a period of 30 days after discharge from the armed forces and return to city employment may be considered as continuous time.

(E) In the event of the death of any person after he becomes entitled to the compensation and has not elected to retire, the total amount of contributions paid into the fund by him shall be paid over to his widow first, if she survives him; if his widow does not survive him then to his children equally; and if there be no widow or children, then to his estate with interest at five percent simple interest per annum if he was not a member of a bargaining unit or without interest if he was a member of a bargaining unit.

(F) In the event of the death of any person after he becomes entitled to the compensation herein and after he has commenced receiving retirement payments hereunder, the total amount of his contributions paid into the fund less the retirement benefits paid to him shall be paid over to his widow first, if she survives him; if she does not survive him, then to his children equally; and if there be no widow or children, then to his estate with five percent simple interest per annum if he was not a member of a bargaining unit or without interest if he was a member of a bargaining unit. It is the intent of this section that an employee, whether dying before or after he has commenced to receive retirement benefits, be entitled to a return of all the contributions made by him to the fund. This section shall also be applicable insofar as a return of the employee’s service increment contribution is concerned. (Ord. 3633 §§ 1 – 4, 2006; Ord. 3440 § 2, 1996; Ord. 3341 § 3, 1993; Ord. 3173 § 1, 1988; Ord. 2745 § 7, 1970)

165.05 Optional contribution of laborers on per diem wage.

No person holding a position in the city as a laborer, at a per diem wage, shall be compelled to pay or contribute toward the fund herein provided for, but he shall have the option or choice of so doing, and shall only, upon electing to contribute to the fund, become entitled to the compensation provided by this article. However, he shall be required to contribute three percent of his wages and the same percentage upon any amount of compensation he receives after his retirement. (Ord. 2361 § 5, 1954)

165.06 Mandatory retirement age.

All officers and employees, except elected officers, eligible for full pensions hereunder, shall retire at the age of 70 years. (Ord. 2361 § 6, 1954)

165.07 Department heads to certify records to board.

The head of every department and office, employing persons entitled under the provisions of this article to receive compensation, shall certify from department or office records to the board all persons so employed, the amount of salary or wages which is paid to such employee, together with dismissals, resignations or terminations of service, and such other relative information as the board may require. (Ord. 2361 § 7, 1954)

165.08 Annual appropriation by city.

Council shall annually set aside, apportion and appropriate out of the taxes and income of the city and give over to the board a sum sufficient to maintain the compensation due under this article. (Ord. 2745 § 8, 1970)

165.09 Persons entitled to benefits – Definitions.

The benefits conferred by this article shall apply to all persons employed in any capacity, by or holding positions in the city, in accordance with the provisions of this article and in following and keeping with the definitions set forth as follows:

(A) "Person" means an officer or employee of the city.

(B) "Employee" means a person in the service of the city, who is either or not now adequately protected under all circumstances by pension authorized by the laws of this commonwealth and in force at the time of the passage of this article (May 25, 1954).

(D) "Board" means the officers’ and employees’ retirement board.

(E) "Fund" means the officers’ and employees’ retirement fund.

(F) "Joint coverage member" means an officer or employee of the city who is a member of the retirement system or fund and who has filed with the board a written statement that he elects Social Security coverage under an agreement with the Federal Secretary of Health, Education and Welfare entered into by the commonwealth of Pennsylvania.

(G) "Involuntary retirement" means a retirement without the voluntary action of the employee, including but not limited to a dismissal by the city or a loss of an election, but does not include a retirement because of disability nor a retirement caused by the willful misconduct of an employee. (Ord. 2745 § 9, 1970)

165.10 Computation of time of service.

The time of service herein specified shall be computed from the time of the first or original service to the city, and need not be continuous. (Ord. 2361 § 10, 1954)

165.11 Pension not subject to attachment or assignment.

The pension herein provided shall not be subject to attachment or execution, and shall be payable only to the beneficiary designated by this article, and shall not be subject to assignment or transfer. (Ord. 2361 § 11, 1954)

165.12 Compensation or pension involving other political subdivisions.

Any person holding a position in the city, whether elective or appointed, who receives salaries or wages from other political subdivisions shall be entitled to the same provisions of this article as though they received all of their salaries or wages from the City of Meadville; provided, that they contribute or pay into the fund monthly an amount equal to three percent of their combined salaries or wages, or, if they so choose, only on that portion of their salary or wages paid by the city, in which case they shall be entitled to receive the benefits provided by this article, based on that portion only. If they receive a pension from another political subdivision they shall be entitled to receive the benefits provided herein only on that portion of their salary or wages paid by the City of Meadville. (Ord. 2361 § 12, 1954)

165.13 Beneficiaries prohibited from city employment.

Repealed by Ord. 3599. (Ord. 2361 § 13, 1954)

165.14 Eligible persons to indicate total acceptance of coverage.

By the passage of this article the city elects to establish a retirement system and agrees to accept the provisions of law covering such retirement system as is provided for herein. It is hereby ordained that all persons defined as being eligible to be covered by this retirement system shall so elect in writing to become covered by this retirement system and shall indicate in writing that they thereby elect to accept and agree to the terms of this article in its entirety. (Ord. 2361 § 14, 1954)

165.15 Benefit payments chargeable only to pension fund.

Payments 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. 2361 § 15, 1954)

165.16 Severability – Validity of remaining provisions.

The provisions of this article 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 subsection. 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. 2361 § 16, 1954)

165.17 Deferred vested benefit.

Members who satisfy the following conditions shall be eligible for the deferred vested benefits described herein:

(A) Where a member shall have served for 12 years, or more, and shall have not attained the age of 60 years, and his tenure of office or employment shall be terminated without his voluntary action before the expiration of 20 years of service, after attaining the age of 60 years (pension entitlement date), the member shall be entitled to vest his retirement benefits subject to the conditions described in subsection (D) of this section.

(B) Where a member who has served for 20 years or more and his tenure of office or employment shall be terminated, then the member:

(1) After attaining the age of 55 years when his employment termination was not voluntary (pension entitlement date); or

(2) After attaining the age of 60 years, when his employment termination was voluntary (pension entitlement date); and

(3) Conditioned upon his continuing his contributions into the fund at the same rate as when he was last employed until he attains the age of 55 years;

shall be entitled to vest his retirement benefits subject to the conditions described in subsection (D) of this section.

(C) A member who voluntarily terminated his employment after 12 years of service without entitlement to a deferred vested benefit pursuant to subsections (A) or (B) of this section and before reaching the date which would have been the member’s normal retirement date (as defined in subsection (F) of this section), the member shall be entitled to vest his retirement benefits subject to the conditions described in subsection (D) of this section.

(D) The deferred vested pension benefits described in subsections (A), (B) and (C) of this section are specifically conditioned upon the following:

(1) The member must file with the city employees’ retirement and 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 an employee;

(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 city on the date of notice to vest; and

(5) The city employees’ retirement and pension board shall indicate on the notice to vest the member’s compensation (as defined in subsection (G) of this section).

(E) Upon reaching the member’s pension entitlement date in the case of member’s qualifying under subsections (A) or (B) of this section or upon reaching the date which would have been the member’s normal retirement date had the member continued his employment with the city, the member shall notify the city employees’ retirement and 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 compensation indicated on the notice to vest; and

(2) In the case of a member qualifying under subsection (A) of this section, 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 bears to 20 years of service;

(3) In the case of a member qualifying under subsection (B) of this section, the member shall be entitled to the base retirement benefit;

(4) In the case of members qualifying under subsection (C) of this section, 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.

(F) Normal Retirement Date. For the purposes of this section, “normal retirement date” shall be the later of 20 years of service or reaching 60 years of age.

(G) Compensation. For the purposes of this section, “compensation” shall mean 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 said date, whichever is higher. (Ord. 3633 § 5, 2006; Ord. 3489 §§ 1, 2, 1998; Ord. 3454 §§ 1, 2, 3, 1997)