§ 16-73. Retirement pension formula.

(a)

Normal retirement . For all members employed on January 1, 2006, the benefit accrual rate (multiplier) shall increase to three and one-half (3.5) percent of average final compensation for all years of service, including prior fire service and military service purchased by the member. For all members retiring or entering the DROP on or after April 1, 2006, the benefit accrual rate (multiplier) shall increase to three and three-quarters (3.75) percent of average final compensation for all years of service, including prior fire service and military service purchased by the member. Upon normal retirement a member shall receive an annual normal retirement pension equal to two and sixty-five one hundredths (2.65) percent of his or her average final compensation for each year of credited service, for all years and months of credited service up through and including September 30, 1997. For all years and months of credited service earned on or after October 1, 1997, a member shall receive an annual normal retirement pension equal to three (3) percent of his or her average final compensation. Effective October 1, 2002, the pension multiplier shall be increased to three (3) percent per year for all years of service prior to October 1, 1997, provided that the member was employed as a firefighter by the city on October 1, 2002 and was not a participant in the DROP plan on October 1, 2002.

The higher multiplier shall be funded as follows:

(1)

Member contributions shall increase from six and one-half (6.5) percent of pension payroll to eleven and one-fourth (11.25) percent of pension payroll.

(2)

An amount equal to three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) of chapter 175 premium tax money will be paid annually into the division I plan to fund the multiplier increase using the annual chapter 175 premium tax distribution, including the regular and supplemental distributions if any; for 2006, the first three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) of the chapter 175 premium tax receipts will be used to fund the multiplier increase. Premium tax receipts above three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) each year will be allocated to the division II share accounts according to the methodology in effect prior to April 1, 2006.

(3)

If the division I plan does not receive state premium tax receipts of at least three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) in any given year, then the available division II forfeitures from terminations by non-vested members will be paid to the division I plan to fund the benefit increase. Any forfeitures not paid to the division I plan will be reallocated to the division II share accounts according to the methodology in effect prior to April 1, 2006. If the division I plan does not receive premium tax receipts of at least three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) along with sufficient forfeitures, then earnings on the division II plan assets of up to three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) will be paid to the division I plan prior to allocation to the individual division II share accounts. If the division I plan does not receive premium tax monies of at least three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) with sufficient forfeitures or earnings, then members will pay a portion of the division II share accounts to the division I plan pro-rata based on the account balances at the beginning of the fiscal year. If the division II plan receives no money and has no remaining assets, then members must pay for the multiplier increase through payroll contributions. The cost for the higher multiplier is fifteen and thirty-nine one hundredths (15.39) percent of covered pension payroll, which means that the maximum member contribution is limited to twenty-one and eighty-nine one hundredths (21.89) percent of pension payroll.

(4)

In order to guarantee cost neutrality to the city, the actuary for the division I plan shall evaluate the impact of the higher multiplier set forth in section 16-73(a) on an annual basis. If in any year the actuary determines that the sum of three hundred forty-three thousand eight hundred eighty-two dollars ($343,882.00) is inadequate to fund the higher multiplier, the cost shall be paid from the following funding sources in the order set forth below:

a.

Forfeitures from division II,

b.

Investment earnings from division II,

c.

Payment by members of division II share accounts balances to the division I plan pro-rata based on the account balances at the beginning of the fiscal year, and

d.

Increased member contributions.

(b)

Early retirement. Upon early retirement a member shall receive the amount computed for normal retirement as described in subsection (a), taking into account his or her credited service to his or her date of actual retirement and his or her average final compensation as of such date, such amount of retirement income to be actuarially reduced to take into account the firefighters' younger age and the earlier commencement of retirement income benefits. In no event shall the early retirement reduction exceed three (3) percent for each year by which the member's age at retirement preceded the member's normal retirement age.

(c)

Retirees. Commencing October 1, 1994, those members whose benefits are in a pay status shall receive a supplement to their monthly retirement allowance equal to two dollars and fifty cents ($2.50) for each full year from the date of retirement to October 1, 1994; provided, however, in no event will the number of such years exceed the number of years of credited service at the member's date of retirement. On each subsequent October 1, the supplement shall be increased by two dollars and fifty cents ($2.50); provided, however, in no event will the supplement exceed two dollars and fifty cents ($2.50) for each year of credited service at retirement.

(d)

Notwithstanding the provisions of subsection (a) above, those members who, as of October 15, 1993, are eligible for normal retirement under section 16-74 hereof, and those members who purchase additional credited service pursuant to section 16-64(f)(6) shall, upon retirement, receive an annual normal retirement pension equal to three (3) percent of average final compensation for each year of credited service, rather than the two and one-half (2½) percent provided by subsection (a), under the following terms and conditions:

(1)

The application must be received by the city clerk no later than 5:00 p.m. on October 15, 1993;

(2)

As a condition of receiving a service pension at the three (3) percent rate, the member shall make an irrevocable application to the retirement system for regular retirement on a date designated by the city manager which must be between October 15, 1993 and March 31, 1994 and shall retire on the date so designated unless the retirement date is extended by the mutual agreement of the member and the city manager; and

(3)

If more than five (5) members timely apply for early retirement incentives, then only the applications of the five (5) applying members with the highest ranks within the fire department shall be granted; should members of the same rank or job classification apply, then eligibility shall be determined first by the highest base pay, and second by the greatest amount of creditable service (before the purchase of additional creditable service).

(e)

Early retirement program. Notwithstanding the provisions of this section a participant who as of January 1, 2003, is within forty-eight (48) months of normal retirement and has ten (10) vesting credits shall be permitted to retire on or after January 1, 2003, but no later than March 31, 2003, on a date approved by the city manager, and upon retirement shall receive a service pension equal to the following percentage of the participant's final average monthly compensation as defined herein for each year of vesting credit as defined in section 16-64 as of the retirement date approved by the city manager.

Ten (10) years of credited service but the total of credit service and age is less than nine hundred (900) months\*%

Ten (10) but less than twenty (20) years of credited service \*%

A participant electing to participate in the early retirement program shall pay the full actuarial cost of the employee's contributions for such increased benefit rate no later than January 2, 2003. The purchase price will be calculated based on the employee's retirement date designated by the city manager. Such payment shall be by lump sum.

* Actual percentage to be determined by the actuary for each employee

(Ord. No. 88-25, § 1, 10-17-88; Ord. No. 88-45, § 1, 1-17-89; Ord. No. 90-2, § 2, 2-19-90; Ord. No. 93-23, § 1, 10-5-93; Ord. No. 94-24, § 2, 11-15-94; Ord. No 98-8, § 1, 3-17-98; Ord. No. 2002-45, § 7, 12-17-02; Ord. No. 2003-29, § 1, 8-19-03; Ord. No. 2006-23, § 3, 8-15-06)