Common use of Pension Changes Clause in Contracts

Pension Changes. A. The City agrees to adopt the provisions of the State of Michigan Act 88 State Reciprocal Plan. Employees presently employed and accruing pension benefits under City of ▇▇▇▇▇▇ Ordinance 19 will be granted the provisions of Act 88 as amended. Employees must have five (5) or more years of credited service in force acquired in the employ of the City of ▇▇▇▇▇▇ to be eligible. Members of this bargaining unit participating in the Defined Benefit Pension Plan shall have vested rights upon the attainment of eight (8) years credited service. B. Employees with thirty (30) years of service may retire with no decrease in benefits, regardless of age. C. A member with twenty-five (25) years of credited service may retire at age 50 with no decrease in benefits because of age. D. The City will provide members of the City of ▇▇▇▇▇▇ Employees Retirement System with the alternative of an early retirement provision. Employees will be permitted to retire at age 55 years after completion of eight (8) years of service with an actuarially reduced benefit. The employee's benefits will be actuarially reduced so that the value of the reduced benefit beginning earlier than age 60 will be equal to the value of the unreduced benefit beginning at age 60. E. Upon completing eight (8) years of credited service, the City will provide non-duty death benefits to the member's family as follows: Widows or widowers to receive seventy-five percent (75%) of the member's accrued pension if not more than five (5) years younger than the deceased member. If more than five (5) years younger than the deceased, the seventy-five percent (75%) to be reduced by one percent (1%) for each year over five (5), minimum of fifty percent (50%). If spouse's benefit terminates or if no spouse, minor children to receive equal share of fifty percent (50%) of member's accrued pension to age 21 (or prior death or marriage). If child is temporarily or permanently disabled, no age 21 restriction. Disability to be determined by the Retirement Board. In no case shall dollar amount of total benefit be less than fifteen percent (15%) of member's final average compensation. F. Should a layoff occur after August 23, 1994, employees shall accrue retirement service credit for the initial six (6) months of the layoff. G. Any member of the Bargaining Unit may reside outside the City of ▇▇▇▇▇▇. No employee shall drive a City vehicle for purposes of commuting to and from work if he resides outside the City of ▇▇▇▇▇▇. H. The City agrees to provide a 2.50% annuity factor for pension calculations effective October 11, 1991. I. Final average compensation shall mean the average of the three (3) highest years of annual compensation received by a member. Each year utilized in the computation shall begin and end with the same month. If a member has less than three (3) years of credited service, the member's final average compensation shall be the annual average compensation received by the member during the total years of service. Effective October 11, 1991, members shall have a two (2) year final average compensation for the calculation of their pension benefits. J. All new employees joining the service of the City after March 7, 1984 shall not have unused vacation factored into their final average compensation. Any member of the bargaining unit retiring on or after October 11, 1991 shall not have payments for compensatory time and unused or accrued vacation included in final average compensation. K. The pension ordinance shall be changed to reflect the agreement of the parties in Article 31, Section ▇. ▇. Each member of the City of ▇▇▇▇▇▇ Employees Retirement System shall be allowed to make voluntary contributions, not in excess of five percent (5%) of his earnings nor less than one hundred eighty dollars ($180.00) annually, to the system in order to provide himself with additional funds upon retirement. Under rules and regulations which the Board of Trustees shall adopt, such contributions may be made by lump sum payments in the month of July in any year and/or by regular payroll deductions. Such authorization forms shall be provided by the Controller's Office and made available to all members of the Employees Retirement System. When made, each member's voluntary contributions shall be separately accounted for in his additional account and accumulated together with annual investment increments or decrements thereon based upon the investment experience of the fund as determined by the Board of Trustees. When a member becomes a "retirant" as defined by the City of ▇▇▇▇▇▇ Ordinance 19, a member's voluntary employee contributions shall be applied to provide him with additional benefits in the same form of payment under which he received his pension. Members, if they so choose, upon application for retirement may elect to receive their voluntary employee contributions in a lump sum. In addition to the times and circumstances otherwise provided herein for the payment of his voluntary employee contributions, a member shall be paid all of his voluntary employee contributions upon his request at any time in writing on a form furnished him by the Controller's Office; provided that such payment shall prohibit such member from making any further voluntary contributions for a period of one (1) year from and after such payment. M. Any member of the bargaining unit shall be entitled to buy back City of ▇▇▇▇▇▇ layoff time and/or prior service time from any State of Michigan Pension System or State of Michigan Municipal Pension System, which the preceding governmental unit recognized as equivalent to and qualifying for full-time retirement system credit, for purposes of accumulating years of service toward retirement. This option must be exercised by July 1, 1995. Payment of the employee's contribution shall be made in accordance with Ordinance 19, Section 25-212. Contributions made by the employee will not be refundable and will remain in the retirement system. It is understood that if retirement system credit is purchased under this provision of the collective bargaining agreement, a total combination of the number of years to be purchased of military service credit, City of ▇▇▇▇▇▇ layoff time, and/or any credited service for CETA participation and preceding governmental service shall not exceed six (6) years.

Pension Changes. A. The City agrees to adopt the provisions of the State of Michigan Act 88 State Reciprocal Plan. Employees presently employed and accruing pension benefits under City of ▇▇▇▇▇▇ Ordinance 19 will be granted the provisions of Act 88 as amended. Employees must have five (5) or more years of credited service in force acquired in the employ of the City of ▇▇▇▇▇▇ to be eligible. Members of this bargaining unit participating in the Defined Benefit Pension Plan shall have vested rights upon the attainment of eight (8) years credited service. B. Employees with thirty (30) years of service may retire with no decrease in benefits, regardless of age. C. A member with twenty-five (25) years of credited service may retire at age 50 with no decrease in benefits because of age. D. The City will provide members of the City of ▇▇▇▇▇▇ Employees Retirement System with the alternative of an early retirement provision. Employees will be permitted to retire at age 55 years after completion of eight (8) years of service with an actuarially reduced benefit. The employee's benefits will be actuarially reduced so that the value of the reduced benefit beginning earlier than age 60 will be equal to the value of the unreduced benefit beginning at age 60. E. Upon completing eight (8) years of credited service, the City will provide non-duty death benefits to the member's family as follows: Widows or widowers to receive seventy-five percent (75%) of the member's accrued pension if not more than five (5) years younger than the deceased member. If more than five (5) years younger than the deceased, the seventy-five percent (75%) to be reduced by one percent (1%) for each year over five (5), minimum of fifty percent (50%). If spouse's benefit terminates or if no spouse, minor children to receive equal share of fifty percent (50%) of member's accrued pension to age 21 (or prior death or marriage). If child is temporarily or permanently disabled, no age 21 restriction. Disability to be determined by the Retirement Board. In no case shall dollar amount of total benefit be less than fifteen percent (15%) of member's final average compensation. F. Should a layoff occur after August 23, 1994, employees shall accrue retirement service credit for the initial six (6) months of the layoff. G. Any member of the Bargaining Unit may reside outside the City of ▇▇▇▇▇▇. No employee shall drive a City vehicle for purposes of commuting to and from work if he resides outside the City of ▇▇▇▇▇▇. H. The City agrees to provide a 2.50% annuity factor for pension calculations effective October 11, 1991. I. Final average compensation shall mean the average of the three (3) highest years of annual compensation received by a member. Each year utilized in the computation shall begin and end with the same month. If a member has less than three (3) years of credited service, the member's final average compensation shall be the annual average compensation received by the member during the total years of service. Effective October 11, 1991, members shall have a two (2) year final average compensation for the calculation of their pension benefits. J. All new employees joining the service of the City after March 7, 1984 shall not have unused vacation factored into their final average compensation. Any member of the bargaining unit retiring on or after October 11, 1991 shall not have payments for compensatory time and unused or accrued vacation included in final average compensation. K. The pension ordinance shall be changed to reflect the agreement of the parties in Article 31, Section ▇. ▇. Each member of the City of ▇▇▇▇▇▇ Employees Retirement System shall be allowed to make voluntary contributions, not in excess of five percent (5%) of his earnings nor less than one hundred eighty dollars ($180.00) annually, to the system in order to provide himself with additional funds upon retirement. Under rules and regulations which the Board of Trustees shall adopt, such contributions may be made by lump sum payments in the month of July in any year and/or by regular payroll deductions. Such authorization forms shall be provided by the Controller's Office and made available to all members of the Employees Retirement System. When made, each member's voluntary contributions shall be separately accounted for in his additional account and accumulated together with annual investment increments or decrements thereon based upon the investment experience of the fund as determined by the Board of Trustees. When a member becomes a "retirant" as defined by the City of ▇▇▇▇▇▇ Ordinance ▇▇▇▇▇▇▇▇▇ 19, a member's voluntary employee contributions shall be applied to provide him with additional benefits in the same form of payment under which he received his pension. Members, if they so choose, upon application for retirement may elect to receive their voluntary employee contributions in a lump sum. In addition to the times and circumstances otherwise provided herein for the payment of his voluntary employee contributions, a member shall be paid all of his voluntary employee contributions upon his request at any time in writing on a form furnished him by the Controller's Office; provided that such payment shall prohibit such member from making any further voluntary contributions for a period of one (1) year from and after such payment. M. Any member of the bargaining unit shall be entitled to buy back City of ▇▇▇▇▇▇ layoff ▇▇▇▇▇▇ time and/or prior service time from any State of Michigan Pension System or State of Michigan Municipal Pension System, which the preceding governmental unit recognized as equivalent to and qualifying for full-time retirement system credit, for purposes of accumulating years of service toward retirement. This option must be exercised by July 1, 1995. Payment of the employee's contribution shall be made in accordance with Ordinance 19, Section 25-212. Contributions made by the employee will not be refundable and will remain in the retirement system. It is understood that if retirement system credit is purchased under this provision of the collective bargaining agreement, a total combination of the number of years to be purchased of military service credit, City of ▇▇▇▇▇▇ layoff ▇▇▇▇▇▇ time, and/or any credited service for CETA participation and preceding governmental service shall not exceed six (6) years.