§ 120.203. Contributions; refunds of contributions.

(a)

The City shall pick-up, rather than deduct from each member's pay, beginning with the date of membership, eight percent of the member's earnable compensation, prior to October 1, 2017. On and after October 1, 2017 the City shall pick-up, rather than deduct from each member's pay, beginning with the date of membership, ten percent of the member's earnable compensation. The monies so picked-up shall be deposited in the Plan immediately after each pay period. An account record shall be maintained continuously for each member. Pick-up contributions shall continue until death, disability or termination of service, whichever shall occur first. Contributions shall remain in the Plan unless withdrawn as provided in the Plan. No member shall have the option to choose to receive the contributed amounts directly instead of having them paid by the City directly to the System. All such pick-up contributions by the City shall be deemed and be considered as part of the member's accumulated contributions and subject to all provisions of the Plan pertaining to accumulated contributions of members. The intent of this provision is to comply with Section 414(h)(2) of the Internal Revenue Code. For the purpose of accruing and calculating pension benefits, and for all other purposes of calculating wage-related benefits and calculations, the amounts picked-up under this section shall be considered part of the earnable compensation of a member.

(b)

All benefits payable under this Plan are in lieu of a refund of accumulated contributions.

(c)

In order to assure the City's statutory and constitutional guarantee of the actuarial soundness of the Plan, the City shall make such contribution which together with contributions picked-up on behalf of members and the Plan's earnings, will maintain the Plan on a sound actuarial basis, as determined by the Board in conjunction with its actuary. The City's contributions may be made in a lump sum at the commencement of the fiscal year or in equal bi-weekly installments or in equal quarterly installments.

(1)

In any year, beginning with Fiscal Year 2017-18, that the Plan's liquidity ratio, meaning the market value of assets divided by the annual benefit payments, falls below five, the City shall, subject to annual appropriation, make a contribution or payment in an amount sufficient to restore the Plan's liquidity ratio to at least five, as determined by the plan actuary.

(2)

Beginning with Fiscal Year 2017-18, regardless of the amount of revenue received from the Pension Liability Surtax and the applicable Actuarially Determined Employer Contribution, the City shall hereinafter, subject to annual appropriation, make an annual contribution from a source other than the Pension Liability Surtax proceeds (provided for in Chapter 776) in a minimum amount of 60 million dollars, less any amount paid under subsection (1) above.

(3)

The provisions of subsections (1) and (2) shall remain in effect until the Plan is 100 percent funded.

(d)

Expenses, charges and fees attributable to the management of the Plan shall be paid from the Plan.

(e)

The City shall have no right, title or interest in the Plan or in any part thereof, and no contribution made thereto shall revert to the City, except such part of the Plan, if any, which remains therein after the satisfaction of all liabilities to persons entitled to benefits under the Plan.

(f)

In the event that a member is separated from employment prior to vesting, all employee contributions, less applicable federal income taxes, shall be returned, without interest, either by lump sum payment or rollover, and the employee shall cease to be a member of the Plan.

(g)

In lieu of the right to any future benefit from the Plan, a separated vested member may rescind the vesting election and receive a refund of contributions, without interest, either by lump sum payment or by rollover, as provided in this section, provided the application to rescind vested rights is received by the Plan not less than six months prior to the date the separated vested benefit would be payable.

(h)

In the event of the death of a separated member prior to vesting or in the case of a separated vested member prior to the date of eligibility for benefits, the employee contributions shall be refunded to the surviving spouse, or if none, to the member's named beneficiary, or if none, to the member's estate.

(i)

Members in receipt of workers' compensation may only make contributions to the Plan to continue to accrue credited service for a period not to exceed six months from the date of first receiving workers' compensation benefits.

(Ord. 2005-432-E, § 2; Ord. 2007-1136-E, § 1; Ord. 2017-258-E , § 1)