Legislation # 07-0008 Enactment Number none
Type Ordinance - Coded Effective Date none
Introduction Date 1/24/2007
Title AN ORDINANCE TO AMEND CHAPTER 28, OF THE CODE OF THE CITY OF HAMPTON, VIRGINIA, ENTITLED PENSIONS AND RETIREMENT.
 
Legislation History 07-0008
DateNotice Of ActionDescription
1/24/2007 Moved to approve consent agenda items 1 through 6 on first and final reading.
1/24/2007 Moved to waive the second reading of consent agenda items 1 through 6.
1/10/2007 Received By Clerk's Office
 
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Chapter 28 - Pensions and Retirement - REDLINE - January 8, 2007.doc Other 101K Chapter 28 - Redline Version
 
Legislation Text 07-0008

 

City of Hampton, Virginia

Ordinance - Coded

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 07-0008

 

Enactment Number: -

 

AN ORDINANCE TO AMEND CHAPTER 28, OF THE CODE OF THE CITY OF HAMPTON, VIRGINIA, ENTITLED PENSIONS AND RETIREMENT.

 

 

Chapter 28

 

PENSIONS AND RETIREMENT*

__________

* Cross References: City officers and employees generally, 2-106 et seq.; payroll deductions for contributions to Virginia Supplemental Retirement System, 2-110(4).

State Law References: Local retirement systems, Code of Virginia, 15.2-1510; pensions, benefits and retirement, Code of Virginia, title 51.1.

__________

 

Article I. In General

Secs. 28-1--28-15. Reserved.

 

Article II. Hampton Employee's Retirement System

 

Division 1. Generally

Sec. 28-16. Created; purpose; effective date.

Sec. 28-17. Definitions.

Sec. 28-18. Membership generally.

Sec. 28-19. Optional membership; membership as condition of employment.

Sec. 28-20. Designation of beneficiaries.

Sec. 28-21. Normal retirement generally.

Sec. 28-22. Normal retirement annuity.

Sec. 28-23. Deferred service retirement annuity.

Sec. 28-24. Survivor's annuity upon member's death in service.

Sec. 28-25. Optional benefits.

Sec. 28-26. Disability retirement annuity--Generally.

Sec. 28-27. Same--Periodic medical examination of recipient.

Sec. 28-28. Offset of benefits payable under state retirement system.

Sec. 28-29. Monthly payment of benefits.

Sec. 28-30. Benefits not subject to transfer, execution, garnishment, etc.

Sec. 28-31. Termination of system not to affect funded interests and benefits.

Sec. 28-32. Defrauding system.

Sec. 28-33. Maximum benefits; mandatory payment of allowance.

Sec. 28-34. Early retirement annuity.

Sec. 28-35. Cost-of-living adjustment.

Sec. 28-36. Post-retirement supplements generally.

Secs. 28-37--28-40. Reserved.

 

Division 2. Financing and Administration

Sec. 28-41. City's contributions.

Sec. 28-42. Refund of member's contributions.

Sec. 28-43. System constitutes separate trust; board of trustees, generally.

Sec. 28-44. Officers generally.

Sec. 28-45. General duties of administrator.

Sec. 28-46. Retirement account; actuarial valuations and investigations.

Sec. 28-47. Investments.

Sec. 28-48. Annual report.

ARTICLE I.

 

IN GENERAL

 

Secs. 28-1--28-15. Reserved.

 

ARTICLE II.

 

HAMPTON EMPLOYEE'S RETIREMENT SYSTEM*

__________

* State Law References: Pension and retirement systems for city officers and employees, Code of Virginia, 51-112 et seq.; participation of cities in Virginia Supplemental Retirement System, 51-111.31.

__________

 

DIVISION 1.

 

GENERALLY

 

Sec. 28-16. Created; purpose; effective date.

 

The Hampton Employee's Retirement System, hereinafter referred to as the "system," is hereby established for the purpose of providing retirement annuities, survivors' annuities, death benefits and other benefits for employees of the city and their dependents subject to offset and reduction by similar annuities and benefits provided under the state retirement system when the employees or their dependents become eligible therefor, but exclusive of the benefits provided under Title II of the Federal Social Security Act, pursuant to the provisions of this article. The effective date of the system shall be July 1, 1966, except that the effective date of the system for the employees of the school board of the city shall be June 1, 1967.

(Ord. No. 188; Ord. No. 207; Code 1964, 15A-1; Ord. No. 987, 12-12-90)

 

Sec. 28-17. Definitions.

 

For the purpose of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section:

 

Board: The board of trustees of the city employee's retirement system.

 

City: The government of the City of Hampton, Virginia, including the department of education.

 

Credited service: For any member, the sum of his prior service and his membership service, provided that service rendered prior to a withdrawal from service shall not be considered to be credited service unless:

 

(1) The member at his withdrawal from service was entitled to a deferred annuity pursuant to section 28-23; or

 

(2) The member's withdrawal from service occurred after January 1, 1975, and when the member had more than one but less than five (5) years of credited service, and the member returned to service within ten (10) years after the date of such withdrawal; or

(3) The member's withdrawal from service occurred after January 1, 1975, and when the member had less than one year of credited service, and the member returned to service within ninety (90) days after the date of such withdrawal.

 

In the computation of credited service, fifteen (15) days of service or more during any month shall constitute a month of service. In no case, except as to military service, shall credit be allowed for any period of absence without salary, nor shall less than fifteen (15) days of service during any month be considered for the computation of service, nor shall more than one year of service be credited for service rendered in any one calendar year.

 

Employee: Any full-time employee of the city receiving an annual salary as compensation from the city. Part-time or temporary employees do not come within this meaning. An employee paid on an hourly basis, after two (2) years of consecutive employment, shall be deemed an employee for the purposes of this article.

 

Final average salary: Effective from May 1, 1977, the average annual salary for the three (3) highest years of credited service as a member.

 

Member: Any employee included in the membership of the system.

 

Membership service: Service rendered by a member on or after the effective date of the system, as designated in section 28-16.

 

Prior service: The most recent period of continuous service rendered prior to the effective date of the system, as designated in section 28-16, by an employee who became a member on the effective date.

 

Retirement annuity: The retirement payments to which a member is entitled as provided in this chapter.

 

Service: Service rendered as an employee of the city, the former Town of Phoebus or the former County of Elizabeth City. The service rendered by a member shall be deemed to include any service by the member in any branch of the armed forces of the United States of America during a time of war or during any national emergency recognized by the board, provided the member entered into such military service as an employee of the city and reentered the employment of the city within ninety (90) days after the date of termination of his military service.

 

System: The employee's retirement system created by this article.

 

Withdrawal from service: Complete severance of employment of any member as an employee of the city by resignation, discharge or dismissal.

(Ord. No. 188; Ord. No. 207; Ord. No. 304; Ord. No. 387; Ord. No. 418; Ord. No. 512; Ord. No. 553, 12-14-77; Ord. No. 572, 4-26-78; Code 1964, 15A-2; Ord. No. 869, 9-9-87; Ord. No. 987, 12-12-90)

 

Sec. 28-18. Membership generally.

 

Membership of the system shall include any employee who:

 

(1) Is a member of the Virginia Retirement System; and

 

(2) Has rendered service prior to July 1, 1984, that is considered to be credited service, as defined in section 28-17.

(Ord. No. 188; Ord. No. 207; Ord. No. 279; Ord. No. 433; Code 1964, 15A-3; Ord. No. 769, 2-22-84; Ord. No. 869, 9-9-87; Ord. No. 987, 12-12-90)

 

Sec. 28-19. Optional membership; membership as condition of employment.

 

(a) Any person who is in the service of the city on the effective date of this chapter shall have the option of becoming a member of this system upon filing with the administrator prior to the effective date, a notice of election on a form provided by the system. Such notice of election, when filed, shall be irrevocable. Any such person electing to become a member of the system shall accept all the provisions of this article and shall conform therewith as though he were a new member and was subject to such provisions as a condition of employment.

 

(b) On and after the effective date of this section, any person first entering the service of the city shall become a member of the system as a condition of employment provided such person had entered service prior to July 1, 1984, and is otherwise qualified to be a member of the system pursuant to the provisions of section 28-18.

 

(c) Any person in service on the effective date specified in section 28-16, as the same may be applicable, who elects not to become a member shall be credited with only that service to the city from the date he elects to become a member, and shall receive no service credits prior to such date.

(Ord. No. 188; Ord. No. 207; Code 1964, 15A-22; Ord. No. 869, 9-9-87)

 

Sec. 28-20. Designation of beneficiaries.

 

The beneficiary or beneficiaries designated and named for the Virginia Retirement System shall be the same beneficiary or beneficiaries for this system.

(Ord. No. 188; Code 1964, 15A-8; Ord. No. 987, 12-12-90)

 

Sec. 28-21. Normal retirement generally.

 

(a) Any member who has at least five (5) years of credited service may retire at his option upon or after the attainment of age fifty-five (55).

 

(b) The provisions of subsection (a) above to the contrary notwithstanding, any member who is an employee of the police division having police powers, an employee of the fire division having firefighting responsibilities, or a jailer or a sworn employee of the city sheriff, who has attained his fiftieth birthday with five (5) or more years of creditable service, may retire upon written notification to the board stating forth the date the retirement is to become effective.

 

(c) The provisions of subsection (a) and (b) above to the contrary notwithstanding, any member in service who is an employee of the police division having police powers, an employee of the fire division having firefighting responsibilities or a jailer or a sworn employee of the city sheriff shall be retired upon attainment of age seventy (70), unless subsequent to the member's normal retirement date, the city may provide for compulsory service retirement upon a determination that age is a bona fide occupational qualification reasonably necessary to their normal operation or that the employee is incapable of performing his/her duties in a safe and efficient manner.

 

The city may provide for compulsory service retirement for any member, except the city treasurer, the commissioner of revenue, the commonwealth's attorney, the city sheriff and the clerk of courts, upon a determination that age is a bona fide occupational qualification reasonably necessary to their normal operation or that the employee is incapable of performing his/her duties in a safe and efficient manner.

(Ord. No. 188; Ord. No. 223; Ord. No. 304; Ord. No. 436; Ord. No. 536, 8-24-77; Ord. No. 632, 10-10-79; Code 1964, 15A-5; Ord. No. 869, 9-9-87; Ord. No. 987, 12-12-90)

 

Sec. 28-22. Normal retirement annuity.

 

(a) Except as otherwise provided in this section, upon retirement in accordance with the provisions of section 28-21, a member shall receive an annuity, payable monthly for life, in an amount computed as the sum of:

 

(1) Two (2) percent of his final average salary, multiplied by the number of years of his credited service up to a maximum of twenty (20) such years, plus

 

(2) Two and one-fourth (2 1/4) percent of his final average salary, multiplied by the number of years of his credited service in excess of twenty (20) such years. The foregoing provisions of this section to the contrary notwithstanding, if a member retires under the provisions of subsection (a) of section 28-21, with less than twenty-five (25) years of credited service and prior to the attainment of age sixty (60), his retirement annuity, as computed in accordance with the foregoing provisions of this section, shall be reduced by one-half of one percent (1/2 of 1%) for each complete month in the period between the member's retirement date and the earlier of his sixtieth birthday or the date on which he would have completed twenty-five (25) years of credited service had he remained an employee until such date.

 

(b) Except as provided in section 28-32, when a member becomes eligible for unreduced service retirement benefits, such benefits shall become nonforfeitable during his lifetime, unless he becomes disabled and is entitled to receive a disability annuity under the provisions of this article.

 

(c) Any individual who (1) retired under section 28-21 effective April 1, 1991, or (2) on April 1, 1991, is a member or would be a member except that such member is on leave without pay will be eligible for retirement as described below if such individual as of September 1, 1991, will have actually attained age fifty (50) and have actually earned at least five (5) years of credited service. Notwithstanding the above, anyone who is covered by section 28-26 is not also eligible under the provision.

 

(d) Any eligible individual must make the election to retire on or after April 1, 1991, and on or before June 30, 1991, and must actually retire on or before July 1, 1991, unless the individual is also eligible for similar benefits under the Virginia Supplemental Retirement System. In that event the individual must retire any time on or after July 1, 1991, and on or before September 1, 1991.

 

(e) Any individual who makes the election under the previous paragraph will have his retirement annuity computed under section 28-21 with the following exceptions:

 

(1) For an eligible individual who by July 1, 1991, has not attained age fifty (50), earned five (5) years of credited service or both then the actual age of such individual first will be treated as if on July 1, 1991, he was the later of age fifty (50) or his actual age and with the greater of five (5) years of credited service or his actual credit service.

 

(2) For purposes of determining the individual's age and service as of his retirement date, an additional five (5) years will be added to the individual's actual age as of his retirement date, not to exceed sixty (60) years, and the member will be deemed to have five (5) or more years of credited service than he actually has on such date.

 

(3) If an eligible individual commences receiving benefits before July 1, 1991, then such benefit will be recalculated as of July 1, 1991, in accordance with these provisions.

(f) Except as provided in section 28-22, when a member becomes eligible for unreduced service retirement benefits, such benefits shall become nonforfeitable during his lifetime, unless he becomes disabled and is entitled to receive a disability retirement annuity under the provisions of this article.

 

(g) Any individual who (1) is an active employee of the city; (2) retired under section 28-21 effective September 1, 1996; or (3) on June 1, 1996, is a member or would be a member except that such member is on leave without pay will be eligible for retirement as described below if such individual as of September 1, 1996, will have actually attained age fifty (50) and have actually earned at least twenty (20) years of credited service. Notwithstanding the above, anyone who is covered by section 28-26 is not eligible under this provision.

 

(h) Any eligible individual must make the election to retire on or after June 1, 1996, or on or before August 31, 1996, and must actually retire on September 1, 1996.

 

(i) Any individual who makes the election under the previous paragraph will have his retirement annuity computed under section 28-21 with the following exception: For purposes of determining the individual's age and service credit as of his retirement date, an additional five (5) years will be added to the individual's actual age as of his retirement date, not to exceed sixty (60) years, and the member will be deemed to have five (5) or more years of credited service than he actually has on such date.

(Ord. No. 188; Ord. No. 304; Ord. No. 436; Ord. No. 604, 1-24-79; Code 1964, 15A-6; Ord. No. 987, 12-12-90; Ord. No. 1004, 3-27-91; Ord. No. 1168, 6-12-96)

 

Sec. 28-23. Deferred service retirement annuity.

 

Any member who withdrew from service before July 1, 1970, prior to retirement with ten (10) years or more of credited service, and any member who withdrew from service on or after July 1, 1970, prior to retirement with five (5) years or more of credited service, shall be entitled to receive a deferred service retirement annuity beginning at age sixty (60) computed in accordance with section 28-22 and based on the final average salary and the number of years of credited service of the member as of the date of his withdrawal from service; provided, however, that any such member shall have the right to elect to have his annuity commence prior to age sixty (60) at any time after the later of age fifty (50), if he is subject to the provisions of subsection (b) of section 28-21, or at age fifty-five (55), if he is not subject to the provisions of said subsection, or the date of his withdrawal from service. The amount of his annuity as computed in accordance with this section shall be reduced by one-half percent for each complete month in the period, if any, after the annuity commencement date and prior to the earlier of his sixtieth (60th) birthday or the date on which he would have completed twenty-five (25) years of credited service had he remained an employee until such date after resuming his status as an employee on his annuity commencement date.

(Ord. No. 513; Ord. No. 536, 8-24-77; Ord. No. 576, 6-28-78; Code 1964, 15A-9; Ord. No. 869, 9-9-87; Ord. No. 987, 12-12-90)

Sec. 28-24. Survivor's annuity upon member's death in service.

 

In the event of the death of a member while in service, on or after July 1, 2000, the surviving spouse or, if none, a dependent parent of the member, shall be entitled to receive an annuity, commencing on the first of the month next following the date of death of the member and continuing for the lifetime of the survivor recipient. The amount of any such annuity shall be computed as the same amount that would have been payable to the member in accordance with section 28-22 had the member been eligible to retire and had retired on the date of his death, after having elected to have his annuity payable on the actuarially equivalent joint and last survivor option provided for in section 28-25, whereby the member's reduced annuity would be continued in the same amount after his death to the survivor recipient as the contingent annuitant.

(Ord. No. 188; Ord. No. 433; Ord. No. 536, 8-24-77; Code 1964, 15A-10; Ord. No. 1272, 4-26-00; Ord. No. 1293, 4-11-01)

 

Sec. 28-25. Optional benefits.

 

(a) Each member shall have the right at any time, not later than the date of commencement of annuity benefits, to elect, by written request to the board, to have his retirement annuity payable under the joint and last survivor option described in subsection (b) of this section, in lieu of the annuity for the lifetime of the member that otherwise would have been payable. The amount of any such optional benefit shall be the actuarial equivalent, computed on bases approved by the board, of the amount of annuity that otherwise would have been payable to the member. Effective July 1, 1984, for purposes of this paragraph, actuarial equivalent will be determined in the same manner as it is by the Virginia Retirement System.

 

(b) Under the joint and last survivor option a member will receive a decreased retirement annuity during his lifetime with such decreased annuity (or one-half (1/2) thereof if so designated by the member) being continued after the death of the member to a designated contingent annuitant during the subsequent lifetime of such person; provided, however, that if the member's retirement is for disability, for purposes of determining actuarial equivalence, the age at retirement of the disabled member shall be assumed to be sixty-five (65).

 

If the contingent annuitant is not the spouse of the member, no joint and last survivor option may be elected under which the actuarially computed present value of the annuity payments expected to be made to the member is less than one-half (1/2) of the actuarially computed combined present value of the total payments expected to be made to the member and the contingent annuitant.

 

(c) The election by a member of the joint and last survivor option shall be null and void, if either the member or the designated contingent annuitant dies before the member's date of retirement. At any time prior to the commencement of his annuity payments, a member, by written request to the board, may revoke any election previously made.

 

(d) If the designated contingent annuitant of any member, should die during the member's lifetime after the commencement of annuity benefits to the member under the joint and last survivor option, the monthly retirement annuity benefits payable thereafter to the member shall be increased to an amount equal to the monthly retirement annuity to which the member would have been entitled had the joint and last survivor option not been elected; however, the first month for which such an increased annuity benefit shall be payable shall be the month after the month in which written notification and proper documentation of the death of the contingent annuitant has been received by the board.

 

(e) A retired member who has elected a joint and last survivor option may, by written notification to the board, revoke such election and elect to receive the retirement allowance to which he would have been entitled had no option been elected initially, if (i) a final degree of divorce of the retired member from the original contingent annuitant has been entered, (ii) and the original contingent annuitant consents to the change. If such an election is made, the benefit payable to the retired member will begin the first of the month next following receipt of the contingent annuitant's written consent and a copy of the divorce decree which has incorporated the contingent annuitant's consent to forfeit the benefit.

(Ord. No. 188; Ord. No. 304; Ord. No. 522; Code 1964, 15A-11; Ord. No. 759, 15A-11, 9-28-83; Ord. No. 987, 12-12-90; Ord. No. 1091, 7-14-93; Ord. No. 1272, 4-26-00; Ord. No. 1293, 4-11-01)

 

Sec. 28-26. Disability retirement annuity--Generally.

 

A disability retirement annuity will be paid to any member having at least five (5) years of credited service. Any member in service or within ninety (90) days of withdrawal from service who has five (5) or more years of credited service may at any time before his sixty-fifth (65) birthday retire on account of disability by providing written notification to the board setting forth at what date the retirement is to become effective and that he has qualified for disability benefits under the Virginia Retirement System. Such effective date shall be after his last day of service, but shall not be more than ninety (90) days prior to the filing of such notification. Effective from January 1, 1972, the amount of annuity will be equal to two (2) percent of the final average salary for each completed year of service for the first twenty (20) years of credited service and two and one-fourth (2 1/4) percent of final average salary per year of credited service above twenty (20) years, except that, if such disability shall occur prior to age sixty (60), the length of credited service shall be the lessor of:

 

(1) Twice the actual period of credited service; or

 

(2) The period of credited service the member would have completed at age sixty (60) if he had remained in service to that age.

 

The minimum disability allowance before and after age sixty-five (65), including social security, will be one thousand dollars ($1,000.00) per year or twenty-five (25) percent of final average salary, whichever is the larger.

(Ord. No. 188; Ord. No. 304; Ord. No. 349; Ord. No. 407; Code 1964, 15A-12; Ord. No. 869, 9-9-87; Ord. No. 987, 12-12-90)

 

Sec. 28-27. Same--Periodic medical examination of recipient.

 

Once each year during the first five (5) years following the retirement of a member on a disability retirement annuity, and once every three (3) years thereafter until the member's attainment of age sixty (60), the board may require any such member to undergo a medical examination by a physician designated by the board. Should such member refuse such examination, his retirement annuity shall be discontinued until withdrawal of such refusal and should the refusal continue for one year, then his rights to any benefits shall cease.

(Ord. No. 188; Ord. No. 604, 1-24-79; Code 1964, 15A-13; Ord. No. 869, 9-9-87)

 

Sec. 28-28. Offset of benefits payable under state retirement system.

 

(a) The annuities and benefits provided by this article with respect to any member shall be offset and reduced by similar annuities or benefits assumed to be provided by the Virginia Retirement System to the member or his dependents on and after the date the benefits under such latter system are assumed to be payable, and thereafter the member or his dependents shall receive only the excess thereof.

 

(b) The benefits assumed to be payable under the Virginia Retirement System shall be those provided for in article 9 of chapter 1 of title 51.1 (section 51.1-152 et seq.) of the Code of Virginia, as modified by the applicable provisions of article 5 of such chapter, except that:

 

(1) The normal retirement allowance formula referred to in sections 51.1-403(B), 51.1-155(A) and 51.1-206(A) of the Code of Virginia shall be assumed to be defined as one and one-half (1 1/2) percent of the member's average final compensation, multiplied by the number of years of his creditable service, and the provisions of the other subsections of sections 51.1-403, 51.1-155 and 51.1-206 of such Code shall be disregarded.

 

(2) The disability retirement allowance formula referred to in section 51.1-157(A) of the Code of Virginia shall be assumed to be defined as one and one-half (1 1/2) percent of the member's average final compensation, multiplied by the smaller of twice the number of years of his creditable service; or the number of years of creditable service the member would have completed at age sixty (60) if he had remained in service to that age, or in the case of a member who has already attained age sixty (60), the number of years of his creditable service at date of retirement, and the provisions of the other subsections of section 51.1-157 of such Code shall disregarded.

 

(3) The provisions of sections 51.1-165, 51.1-166 and 51.1-207(C) of the Code of Virginia shall be disregarded.

 

(4) The "creditable service" to be used in the computation of the assumed benefits shall be taken as equal to the credited service of the member under this system, exclusive of any such service that is not creditable under the Virginia Retirement System because it was:

 

a. Rendered prior to the establishment of the Virginia Retirement System and the member either was not a member of the predecessor Virginia Supplemental Retirement System or withdrew his accumulated contributions under such predecessor system; or

 

b. Rendered while the member was in an employee classification which at the time was not such that he was eligible for membership in the Virginia Retirement System or the predecessor Virginia Supplemental Retirement System.

 

(c) The benefits assumed to be payable under the Virginia Retirement System with respect to any member shall be assumed to commence at the earliest date on which a member or his dependents may elect to receive them. Any adjustment to reflect an optional mode of payment shall be applied following the application of the offset.

 

(d) If the application of the offset provided for in the preceding provisions of this section would cause the monthly annuity payable under this section from July 1, 1970, to any member or his dependents to be in an amount of less than twenty-five dollars ($25.00) per month, prior to any adjustment to reflect the election of an optional mode of payment, then and in such event, the amount of such monthly annuity shall be computed to be twenty-five dollars ($25.00) per month, any provisions in this section to the contrary notwithstanding.

 

(e) The benefits assumed to be payable under the Virginia Retirement System shall also include those provided for in Chapter 719 of the 1991 Acts of Assembly (now codified in various sections of Code of Virginia, title 51.1) for those members who meet the terms of such provisions. Anyone eligible under these provisions must apply for benefits no earlier than April 1, 1991, and no later than June 30, 1991.

(Ord. No. 188; Ord. No. 212; Ord. No. 304; Ord. No. 436; Ord. No. 446; Code 1964, 15A-15; Ord. No. 869, 9-9-87; Ord. No. 987, 12-12-90; Ord. No. 1012, 6-12-91)

 

Sec. 28-29. Monthly payment of benefits.

 

Any service retirement annuity, disability annuity, death annuity or any other annuity provided for in this article shall be payable in equal monthly installments as a life annuity, except as otherwise provided. The first payment of any such annuity shall be made for the fraction of the month elapsing until the end of the first month; and the last payment shall be made as of the end of the month in which termination by death or other cause occurs.

(Ord. No. 188; Code 1964, 15A-24)

 

Sec. 28-30. Benefits not subject to transfer, execution, garnishment, etc.

 

The right to a service retirement annuity, disability annuity, death annuity or any other annuity or benefit under the provisions of this article, by whatever name called, is personal with the recipient thereof, and the assignment or transfer of any such annuity or benefit or any part thereof shall be void, except as may be provided herein. Any such annuity or benefit shall not answer for debts contracted by the person receiving the same, and it is the intention of this article that they shall not be subject to execution, attachment or garnishment or affected by any judicial proceedings, except, however, payment shall be made in accordance with the provisions of any judgment, decree, or order which:

 

(1) Creates for, or assigns to, a spouse, former spouse, child or dependent of a member the right to receive all or a portion of the member's benefits under the system for the purpose of providing child support, alimony payments or marital property rights to that spouse, child or dependent;

 

(2) Is made pursuant to a state domestic relations law;

 

(3) Does not require the system to provide any type of benefit, or any option, not otherwise provided under the system; and

 

(4) Otherwise meets the requirements of section 206(d) of the Employee Retirement Income Security Act of 1974, (ERISA) as amended, as a "qualified domestic relations order," as determined by the system administrator.

(Ord. No. 188; Ord. No. 433; Code 1964, 15A-23; Ord. No. 1078, 3-24-93)

 

Sec. 28-31. Termination of system not to affect funded interests and benefits.

 

In the event that the system is terminated or partially terminated as of any date, the interest of each member as of such date and of each beneficiary who is in receipt of payment as of such date shall be nonforfeitable to the extent then funded.

(Ord. No. 604, 1-24-79; Code 1964, 15A-26)

 

Sec. 28-32. Defrauding system.

 

Any person who knowingly makes any false statement or falsifies, or knowingly permits to be falsified, any record or records of the system, in an attempt to defraud the system, shall be guilty of a Class 1 misdemeanor. The system and the city shall have the right to recover, by setoff or otherwise, any payments made as a result of such false representation. If any such person is a member of the system or the beneficiary of a member, he shall forfeit all rights to further participation in any of the benefits hereunder.

(Ord. No. 188; Code 1964, 15A-25)

 

Sec. 28-33. Maximum benefits; mandatory payment of allowance.

 

(a) Notwithstanding any other provision of law, earned compensation for any fiscal year after 1993 in which employee or employer contributions are made and for which annual compensation is used for computing any benefit shall not exceed the higher of two hundred thousand dollars ($200,000.00) or the amount determined by the Commissioner of the Internal Revenue Service as the limitation for calendar years after 1989; provided the imposition of the limitation shall not reduce a member's benefit below the amount determined as of June 30, 1993.

 

(b) Notwithstanding any other provision of law, the annual benefit payable on behalf of a member shall, if necessary, be reduced to the extent required by section 415(b) and 415(e) of the Internal Revenue Code, as adjusted by the Secretary of the Treasury pursuant to section 415(d) of the Internal Revenue Code.

 

(c) On and after July 1, 1989, the retirement allowance of a member who has terminated employment shall begin no later than the later of (1) April 1 of the calendar year following the calendar year that the member attains seventy and one-half (70 1/2) years of age or (2) April 1 of the calendar year following the calendar year in which the member terminated employment. Effective July 1, 1989, all distributions from this plan shall conform to the regulations issued under section 401(a)(9) of the Internal Revenue Code of 1986, as amended, ("Code") including the incidental death benefit provisions of section 401(a)(9)(G) of the Code. Further, such regulations shall override any plan provision that is inconsistent with section 401(a)(9) of the Code.

(Ord. No. 987, 12-12-90)

 

Sec. 28-34. Early retirement annuity.

 

(a) Any member on or after July 1, 1999, who has at least ten (10) years of credited service may retire at his option upon or after the attainment of age fifty (50) upon written notification to the board setting forth the date the retirement is to become effective.

 

(b) A member's early retirement annuity shall be computed in accordance with section 28-22 based on final average salary and the number of years of credited service of the member as of the date of his early retirement.

(c) The member may elect to have his early retirement annuity commence on or after his early retirement date, subject to the provisions of subsection (d) of this section 28-34.

 

(d) Any other provision of this chapter to the contrary notwithstanding, a member's early retirement annuity shall be the benefit the member would have received had he terminated service and deferred retirement to age fifty-five (55).

(Ord. No. 1242, 3-24-99; Ord. No. 1249, 5-26-99)

 

Sec. 28-35. Cost-of-living adjustment.

 

(a) Except as provided in section 28-35(b), retired members and beneficiaries who are receiving retirement benefits effective July 1, 1999, and who retired prior to July 2, 1998, shall have their gross monthly retirement benefits increased by three (3) percent for each full year of retirement.

 

(b) Retired members with gross monthly retirement benefits after the adjustment provided in section 28-35(a) of less than fifty dollars ($50.00) shall have their gross monthly benefits increased to fifty dollars ($50.00).

(Ord. No. 1244, 3-24-99)

 

Sec. 28-36. Post-retirement supplements generally.

 

(a) Retired members and beneficiaries who are receiving retirement benefits effective July 1, 2001, and who retired prior to July 1, 1999, shall have their gross monthly retirement benefits increased by three and one-half (3.5) percent.

 

(b) In addition to the allowances payable under this chapter, future post-retirement supplements shall be payable to the recipients of such allowances in accordance with guidelines adopted by the board of trustees. Supplements shall be subject to the same conditions of payment as are allowances.

(Ord. No. 1304, 5-23-01)

 

Secs. 28-37--28-40. Reserved.

DIVISION 2.

 

FINANCING AND ADMINISTRATION

 

Sec. 28-41. City's contributions.

 

(a) On and after January 1, 1975, the entire cost of the benefits provided under the system shall be borne by the city and no contributions shall thereafter be made by members of the system.

 

(b) The city shall contribute annually an amount equal to the sum of the "normal contribution" and the "accrued liability contribution," if any.

(c) The normal contribution for the city for any period shall be determined as a percentage, equal to the normal contribution rate, of the total salaries of the members for such period. Similarly, the accrued liability contribution for the city for any year shall be determined as a percentage, equal to the accrued liability contribution rate, of such total salaries. In determining the amount of any city contribution, a reasonable approximation to the exactly computed amount may be used. All forfeitures of any kind shall be used to reduce future city contributions but not to increase system benefits.

 

(d) The normal contribution rate shall be determined as the percentage of the total annual salaries of the members that is represented by the sum of the annual entry age normal cost required to provide the retirement annuities of the system, plus the cost of benefits other than retirement annuities expected to be incurred in the ensuing year, all computed in accordance with recognized actuarial principles on the basis of methods and assumptions approved by the board. The normal contribution rate shall be determined from the results of the most recent actuarial valuation of the system, and shall continue in force until a new valuation is made.

 

(e) The accrued liability contribution rate shall be determined as the percentage of the total annual salaries of the members that is represented by the level annual contribution necessary to amortize any remaining unfunded accrued liability over a fixed period of forty (40) years that began in 1983. The unfunded accrued liability, as of any valuation date, shall be determined in accordance with recognized actuarial principles on the basis of methods and assumptions approved by the board, as the excess, if any, of:

 

(1) The then present value of future payments under retirement annuities then being paid and of retirement annuities to be paid in the future to or in respect of members not yet then retired, over

 

(2) The sum of the value of the assets then held in the retirement account, plus the then-present value of the normal contributions expected to be made in the future by the city.

 

The accrued liability contribution rate shall be determined from the results of the most recent actuarial valuation of the system and shall continue in force until a new valuation is made.

 

(f) The board shall certify the normal contribution rate and the accrued contribution rate, and every change made from time to time in either of such rates.

 

(g) The amount of each city contribution provided for in this section shall be established by applying the normal and accrued liability contribution rate percentages to the salaries being paid to the members during each payroll period, and the resulting amounts shall be remitted by the city to the system concurrently with the payment of salaries to the members.

(Ord. No. 188; Ord. No. 207; Ord. No. 433; Ord. No. 604, 1-24-79; Code 1964, 15A-16; Ord. No. 869, 9-9-87; Ord. No. 987, 12-12-90)

 

Sec. 28-42. Refund of member's contributions.

 

As of January 1, 1975, each member shall be paid in a lump sum the amount standing to the credit of his individual account in the member's contribution account as of December 31, 1974.

(Ord. No. 188; Ord. No. 410; Ord. No. 433; Code 1964, 15A-14)

 

Sec. 28-43. System constitutes separate trust; board of trustees, generally.

 

(a) The system created by this article shall be construed to be a trust, separate and distinct from all other entities. The responsibility for the direction and operation of the system, and for making effective the provisions of this article, is hereby vested in a board of trustees. The board shall consist of nine (9) members, as follows:

 

(1) The city manager, or his designee, ex officio.

 

(2) The director of risk management, or his designee, ex officio.

 

(3) The superintendent of schools, or his designee, ex officio.

 

(4) One member appointed by the city council, who need not be an employee of the city, and one member appointed by the school board, who need not be an employee of such board. Each of these members shall serve for terms of two (2) years or until successors are appointed.

 

(5) One employee representative member appointed by the city council, who is an employee of the city, and one employee representative member appointed by the school board, who is an employee of the board. Each of these members shall serve for a term of two (2) years or until successors are appointed. They shall be eligible to succeed themselves for only one additional term. Recommendations for each of these members shall be made by the board of trustees to the city council and school board according to a procedure adopted by the board and approved by the city council.

 

(6) One representative member appointed by the city council, who retired as an employee of the city, and one representative member appointed by the school board, who retired as an employee of the board. Both such representatives shall be in receipt of a monthly pension from the system. Each of these members shall serve for a term of two (2) years or until successors are appointed. They shall be eligible to succeed themselves for only one additional term. Recommendations for each of these members shall be made by the board of trustees to the city council and school board according to a procedure adopted by the board of trustees and approved by the city council.

 

(b) Each trustee shall take an oath that, so far as it devolves upon him, he will diligently and honestly administer the affairs of the board and that he will not knowingly or willfully permit to be violated any of the provisions of this article applicable to the system. Such oath shall be subscribed by the member taking it, certified by the officer before whom it is taken and immediately filed with the clerk of the council. A trustee shall be deemed to have qualified for membership on the board when such oath has been filed.

 

(c) Subject to the limitations prescribed herein, the board shall, from time to time, establish such rules and regulations for the administration of the system and to implement the provisions of this article as may be required. It shall hold regular meetings at least quarterly in each year and such special meetings as may be deemed necessary. The annual meeting shall be held in the month of January of each year. Except as otherwise provided by law, all meetings shall be open to the public. A record of proceedings of all meetings shall be kept by the board.

 

(d) Each trustee shall be entitled to one vote on the board and the concurrence of five (5) trustees shall be necessary for a decision at any regular or special meeting.

(Ord. No. 188; Ord. No. 207; Ord. No. 434; Ord. No. 616, 4-11-79; Ord. No. 706, 12-16-81; Code 1964, 15A-18; Ord. No. 753, 6-8-83; Ord. No. 802, 7-10-85; Ord. No. 1239, 2-24-99)

 

Sec. 28-44. Officers generally.

 

The board shall have the following officers whose duties shall be prescribed by bylaws to be adopted by the board:

 

(1) A chairperson and a vice-chairperson shall be elected from among its members.

 

(2) The administrator of the system shall be the director of finance.

 

(3) The director of finance shall be treasurer of the system and shall have custody of its monies and securities. All disbursements by the system shall be made by the treasurer upon authorization of the board.

 

(4) The city attorney shall be legal counsel to the board and shall represent the board in all litigation affecting the system.

(5) An actuary shall be appointed to serve as technical advisor in the administration of the system on matters pertaining to the technical and actuarial aspects thereof.

(Ord. No. 188; Code 1964, 15A-19)

 

Sec. 28-45. General duties of administrator.

 

Subject to the orders and resolutions of the board, the administrator of the system shall:

 

(1) Employ such clerical and professional services as may be required for the proper operation of the system whose compensation shall be fixed by the board.

 

(2) Establish and maintain records, files and accounts in such form and scope as will give full effect to the requirements of the system in accordance with the provisions of this article.

 

(3) Accumulate actuarial data concerning the operation experience of the system in such form as is necessary for the biennial actuarial valuations and periodic actuarial studies in accordance with recommendations of the actuary.

 

(4) Prepare such periodic reports as may be required for the effective administration of the system.

(Ord. No. 188; Code 1964, 15A-20; Ord. No. 569, 9-9-87)

 

Sec. 28-46. Retirement account; actuarial valuations and investigations.

 

(a) All of the funds and assets of the system shall be credited to a single retirement account held and maintained by the board for the express purposes set forth in the provisions of this article. All the funds and assets of the system are held for the exclusive benefit of the members and their beneficiaries and no part thereof may revert to the city unless and until all benefits and obligations due such members and beneficiaries in accordance with the provisions of this article have been fully satisfied. All contributions made by the city and all income received on the invested assets of the system shall be credited to the retirement account. From the retirement account shall be paid the retirement annuities and other benefits provided for in this article.

 

(b) A biennial actuarial valuation of the system shall be made as of the close of the appropriate fiscal year for the purpose of determining the applicable contribution rates to be made in the future by the city, pursuant to the provisions of section 28-41.

 

(c) At least once in every four-year period, the board shall cause an actuarial investigation to be made of all of the experience under the system. Pursuant to such investigations, the board shall, from time to time, revise the actuarial basis under which the rates of contributions prescribed under this article are determined.

(Ord. No. 118; Ord. No. 304; Ord. No. 410; Ord. No. 433; Ord. No. 604, 1-24-79; Ord. No. 632, 10-10-79; Ord. No. 673, 11-12-80; Code 1964, 15A-17)

 

Sec. 28-47. Investments.

 

(a) The board may keep as an available fund an amount not to exceed the requirements for current disbursements by the system for a period of ninety (90) days. Any amounts in excess of such current disbursement fund shall be invested in:

 

(1) Direct obligations of the United States government or of the city;

 

(2) Corporate bonds of Canadian corporations, not to exceed ten (10) percent of total investments, rated "A" or better by at least two (2) recognized rating concerns;

 

(3) Corporate bonds of domestic corporations rated "A" or better by at least two (2) recognized rating concerns;

 

(4) Federal insured mortgages;

 

(5) Listed common stocks subject to certain prescribed conditions and limitations up to fifty-five (55) percent of total investments on a cost value basis; and

 

(6) Guaranteed insurance contracts.

 

(b) The investment manager authorized to act for the board may purchase bonds, notes or other general obligations of the city before or after the same are offered to the public, whether or not bids have been solicited by the city for such securities.

 

(c) The investment manager authorized to act for the board shall have the power to hold, purchase, sell, assign, transfer and dispose of any of the securities in which the monies of the system are to be or have been invested, as well as the proceeds from such investments, and any other property belonging to the system.

 

(d) All investments shall be clearly marked to indicate ownership by the system and, to the extent possible, shall be registered in its name or in the name of nominees selected by the investment manager.

 

(e) Any limitations affecting the purchase of securities shall be applicable only at the time of purchase and shall not require the liquidation of any investment at any time.

 

(f) All investments shall be carried at net purchase cost. No adjustments shall be made in investment valuation for ordinary market fluctuations, but reserves may be provided for anticipated losses upon redemption or maturity as may be determined by the board.

 

(g) No member or employee of the board shall have any direct interest in the income or gains from any investment made by the board, nor shall any such person receive any pay or emolument from services in connection with any investment. No member or employee of the board shall become an endorser or surety, or in any manner an obligor, for money loaned or borrowed from the system. Proof that any such person has violated any of these restrictions shall make him guilty of a misdemeanor or larceny, as the case may be, and such person shall be punishable therefore as provided by law.

(Ord. No. 188; Ord. No. 527; Ord. No. 673, 11-12-80; Ord. No. 695, 6-24-81; Code 1964, 15A-21; Ord. No. 748, 4-13-83; Ord. No. 569, 9-9-87; Ord. No. 1048, 6-10-92)

State law references: Investments of retirement systems, Code of Virginia, 51.1-803.

 

Sec. 28-48. Annual report.

 

The administrator of the system shall prepare each year the annual report of the board, to be submitted to the board, embodying, among other things, a statement of assets, liabilities and reserves certified by the actuary, an accountant's balance sheet supported by a statement of income and expenditures, a listing of investments owned by the system, a detailed statement of investments acquired and disposed of during the year covered by the report and such other financial and statistical data as may be deemed necessary for a proper interpretation of the condition of the system and the results of its operations. The board shall cause to be distributed among the members of the system a synopsis of such annual report.

(Ord. No. 188; Code 1964, 15A-20)

 

 

 

 

Signed by ____________________________ Date _________________

Ross A. Kearney, II, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council