§ 32-40. Election of retirement plan by employees not covered by any collective bargaining agreement.

(a)

The provisions of this article notwithstanding, the following shall apply to an employee hired on or after July 1, 2017 into a position that is not included in any collective bargaining agreement.

(1)

Any such person who meets the definition of employee as set forth in section 32-22 shall have the option to enroll in one of the following retirement plans:

a.

the pension plan referenced in Section 32-22, set forth in sections 32-21 through and including 32-39, as such pension plan may be amended from time to time;

b.

the retirement plan referenced in section 32-22, as such retirement plan may be amended from time to time.

(2)

Said option must be exercised, in writing, on a form provided by the employer, within sixty (60) days of the employee's first day of employment;

(3)

An employee who fails to make an election shall automatically be enrolled in the pension plan effective and retroactive to the first day of the month following the employee's first day of full-time employment;

(4)

An election to enroll in the retirement plan shall constitute an irrevocable waiver of the employee's right to participate in or receive any benefit from the pension plan;

(5)

At all times during the employee's participation in the retirement plan, the employee shall be required to make mandatory contributions into the retirement plan as required by the employer, determined as a percentage set by the employer of the employee's compensation in such year, as further specified in the plan document governing such retirement plan.

(b)

The provisions of this article notwithstanding, the following shall apply to an employee hired prior to July 1, 2017, who holds a position that is not included in any collective bargaining agreement, provided that the employee has reached age sixty-two (62).

(1)

Any such employee may elect to opt out of further participation in the pension plan, and as a result of such election receive during such employment a distribution payable from the pension plan in the form of a single lump sum amount; which lump sum amount shall be equal to the actuarial equivalent of the employee's accrued benefit in the pension plan (earned as of the time of such election to opt out). Such actuarial equivalent and lump sum amount shall be determined using the same actuarial assumptions that are used by the actuaries for the pension plan in the preparation by such actuaries of the most recently published valuation report for such pension plan that is in effect at the time of the member's lump sum election, except for the mortality basis which shall be determined on a unisex basis blended fifty (50) percent male, fifty (50) percent female An employee receiving a lump sum distribution pursuant to this subsection (b)(1) of this section may choose to roll over such lump sum to the extent permitted under the Internal Revenue Code into an eligible retirement plan as defined in section 402(c)(8)(b) of the Internal Revenue Code, including but not limited to the retirement plan.

(2)

Upon the effective date of such election to opt-out, the employee thereafter shall participate in the retirement plan, and at all times during such participation, the employee shall be required to make mandatory contributions for each year, determined as a percentage of the employee's compensation in such year, into the retirement plan that is at least equal to the percentage used to determine such employee's mandatory contributions, if any, to the pension plan, as further referenced in section 32-30.

(3)

Such election to opt-out must be made in writing, on a form provided by the employer, at least sixty (60) days prior to the proposed effective date of the election.

(4)

An election to opt-out under this subsection (b) of this section and receive a lump-sum distribution and enroll in the retirement plan shall constitute an irrevocable waiver of the employee's right to further participate in or receive any further benefit from the pension plan.

(5)

For purposes of determining a retired member's eligibility for other benefits, if any, payable to retirees of the employer, a retired member hired prior to January 1, 2012, who receives a lump-sum payment from the retirement plan shall be treated as a retiree to the same extent as if such retired member had elected or received an annuity form of payment, or payment in the form of periodic installments, from such retirement plan.

(6)

For purposes of determining a member's vested status under the retirement plan's vesting schedule specified in the plan document governing such retirement plan, such member's years of service under the pension plan at the time of such member's opt-out from the pension plan shall be counted as vesting service of the member under the retirement plan.

(c)

The provisions of this article notwithstanding, the following shall apply to an employee hired prior to July 1, 2017, who holds a position that is not included in any collective bargaining agreement, and who has not reached age sixty-two (62).

(1)

Any such employee may elect to opt out of further participation in the pension plan, and as a result of such election the actuarial equivalent of the employee's accrued benefit in the pension plan (earned as of the time of such election to opt out) shall automatically be transferred in the form of a lump-sum amount directly from the pension plan to the retirement plan. Such actuarial equivalent and lump sum amount shall be determined using the same actuarial assumptions that are used by the actuaries for the pension plan in the preparation by such actuaries of the most recently published valuation report for such pension plan that is in effect at the time of the member's lump sum election, except for the mortality basis which shall be determined on a unisex basis blended fifty (50) percent male, fifty (50) percent female.

(2)

Upon the effective date of such election to opt-out, the employee thereafter shall participate in the retirement plan, and at all times during such participation, the employee shall be required to make mandatory contributions for each year, determined as a percentage of the employee's compensation in such year, into the retirement plan that is at least equal to the percentage used to determine such employee's mandatory contributions, if any, to the pension plan, as further referenced in section 32-30.

(3)

Such election to opt-out must be made in writing, on a form provided by the employer, at least sixty (60) days prior to the proposed effective date of the election.

(4)

An election to opt-out under this subsection (c) of this section, and the resulting automatic transfer in the form of a lump-sum amount of the actuarial equivalent, which are calculated using exactly the same method and actuarial assumptions that are used in subsection (c)(1) of this section, of the employee's accrued benefit in the pension plan (earned as of the time of such election to opt out) from the pension plan to the retirement plan and the employee's enrollment in the retirement plan shall constitute an irrevocable waiver of the employee's right to further participate in or receive any further benefit from the pension plan set forth in sections 32-21 through and including 32-39.

(5)

For purposes of determining a retired member's eligibility for other benefits, if any, payable to retirees of the employer, a retired member hired prior to January 1, 2012, who receives a lump-sum payment from the retirement plan shall be treated as a retiree to the same extent as if such retired member had elected or received an annuity form of payment, or payment in the form of periodic installments, from such retirement plan.

(6)

For purposes of determining a member's vested status under the retirement plan's vesting schedule specified in the plan document governing such retirement plan, such member's years of service under the pension plan at the time of such member's opt-out from the pension plan shall be counted as vesting service of the member under the retirement plan.

(d)

The provisions of this article notwithstanding, the following shall apply to an employee hired on or after July 1, 2017, into a position that is not included in any collective bargaining agreement, who is enrolled in the pension plan in accordance with subsection (a) of this section.

(1)

Provided that the employee has reached age sixty-two (62), any such employee may elect to opt out of further participation in the pension plan, in accordance with the terms and conditions set forth in subsection (b) of this section.

(2)

Provided that the employee has not reached age sixty-two (62), any such employee may elect to opt out of further participation in the pension plan, in accordance with the terms and conditions set forth in subsection (c) of this setion.

(e)

Any additional terms and conditions applicable to the retirement plan shall be set forth in the applicable plan document governing such retirement plan, which may include a customized or prototype or other standard plan document furnished to the City by the vendor or other service provider hired by the Board or the City to provide services with respect to such retirement plan, as such plan document may be amended or modified from time to time.

(Ord. No. 31, § 14-18, 12-6-2016)