[HISTORY: Adopted by the Council of the City
of Meriden 1-7-1991.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Administration of government — See Ch. 3.
Personnel classification and compensation system — See Ch. 38.
STATUTORY REFERENCES
Establishment of system — See
C.G.S. § 7-450 et seq.
Actuarial evaluation — See C.G.S.
§ 7-450a.
[1]
Editor's Note: This ordinance repealed former
Ch. 35, adopted 8-7-1972 and amended 3-4-1974 and 7-16-1984.
The following terms as used in this chapter,
unless a different meaning is plainly required by the context, shall
have the meanings indicated:
The salary or wages of an employee for his services with
the City, including all grants and allowances for maintenance at such
figures as may be determined by the Pension Board,[1] but regardless of any general temporary increase or reduction
thereof.
A payment made to an employee according to the provisions
of this chapter, other than a return of contributions.
The Board created for the administration of the retirement
system.[2]
Interest at the rate determined from time to time by the
Pension Board.
The fund derived from contributions made as herein provided
for the payment of pensions to City employees retired under this chapter.
The plan for retirement of City employees as established
by this chapter.
B.Â
Said Pension Board shall be trustee of the retirement
fund and shall have full control and management of all its securities
and assets, with power to invest and reinvest the same in accordance
with the provisions of the General Statutes governing the investment
of trust funds; or the Pension Board may provide, by trust agency,
custodian or other agreement with a corporate fiduciary or any insurance
company, for the custody, safekeeping, handling, investment and reinvestment
of the fund's assets. The Pension Board shall submit annually, to
the City Council of the City of Meriden, a schedule of estimated appropriations
of money necessary for the administration of this chapter, and it
shall receive, control, manage and expend all of said funds according
to the provisions of this chapter, including any moneys contributed
by employees, with the same powers of investment and reinvestment
as herein provided. Said Pension Board shall determine the eligibility
of an employee and his rights, and the rights of the City under this
chapter; shall make bylaws and regulations not inconsistent with the
law for administration of this chapter; and shall do all things necessary
and proper toward carrying out the purposes for which the retirement
system is created. It shall hire and dismiss any employees of the
Pension Board necessary for the proper administration of this chapter
and fix their compensation and shall engage expert actuarial auditing
and medical service when, in the judgment of the Pension Board, it
is advisable.
The terms of this chapter shall apply to all
regular full-time employees, including elected or appointed officials,
of the City of Meriden and all employees of the school, provided that
said terms shall not apply to members of the State Teachers' Retirement
Association nor to teachers who were at any time eligible for membership
therein, nor shall the terms of this chapter apply to regular firemen
or policemen. Regular full-time employees shall be deemed to be those
whose principal employment is by the City of Meriden and whose employment
required continuous service to the City of Meriden for at least 30
hours per week for at least nine months of a year or for at least
20 hours per week for 12 months of a year during the City's usual
business hours. Completed months' service shall be considered as fractional
parts of a year.
A.Â
Each eligible employee in the service of the City
on July 1, 1972, shall be required to participate in the retirement
system, unless within the three months next following he shall notify
the Pension Board in writing of his intention not to participate in
the system. If such employee gives notice of his intention not to
participate, he shall not thereafter be admitted to the retirement
system unless he makes a new application to participate within two
years after July 1, 1972, and he shall then be admitted only with
the unanimous consent of the Pension Board after having passed a prescribed
physical examination and upon payment of an amount equal to the contributions
he would have been required to make, with regular interest compounded
annually.
B.Â
Each eligible employee not over 55 years of age who
shall enter the service of the City at any time after July 1, 1972,
shall, at the beginning of his employment, be required to participate
in the retirement system, and such participation shall be a condition
of his continued employment, provided that an elected or appointed
official shall not be required to participate in the retirement system
if, within three months following the effective date of his election
or appointment, he notifies the Pension Board in writing of his intention
not to participate.
C.Â
Participation in the retirement system shall not be
a condition of the continued employment of an employee over 55 years
of age entering the service of the City at any time after July 1,
1972, but such employee may elect, upon the beginning of his employment,
to participate in the retirement system, and, failing to elect at
that time, he shall not thereafter be admitted to the retirement system
unless he makes a new application to participate within the two years
next following, and then only with the unanimous consent of the Pension
Board after having passed a prescribed physical examination and upon
payment of the amount he would have been required to contribute to
the retirement system during the interim, with regular interest thereon
compounded annually.
D.Â
All pensions payable to former employees who have
been retired shall be assumed by the retirement system and paid thereafter
from its funds.
E.Â
Eligible employees not now participating in the retirement
system in accordance with the aforementioned or previous conditions
shall be given the opportunity as of July 1, 1989, to become members
of the plan and buy back up to 50% of their past service or 10 years,
whichever is greater. The Board shall have the authority to establish
a reasonable period of time during which such buyback payments may
be made. It shall establish a schedule of payments based on the amounts
involved and the pay schedule of the employee, as it may deem appropriate.
The City of Meriden shall be liable to the Pension
Board for such an amount on account of future pensions representing
service of employees covered by this chapter rendered prior to the
inception of the retirement system as shall be determined by the Board
on sound actuarial principles. In lieu of full payment initially of
such an amount, the City shall pay periodically such amounts as the
Pension Board determines are necessary to discharge such liability
over a definite period not exceeding 40 years. The City shall also
pay annually to the Pension Board such amounts as are determined by
the Pension Board on sound actuarial principles to be necessary, in
addition to contributions of the employees, to provide future pensions
on account of service rendered by employees subsequent to the date
upon which each shall begin participation in the retirement system.
[Amended 3-4-2002]
A.Â
Contributions to be made by all employees participating
in the retirement system shall be at the uniform rate of 6%. Two percent
of each employee contribution shall be contributed to the Retiree
Health Insurance Fund administered by the City. Such contributions
shall be collectible from employees as deductions from pay and transmitted
immediately to the Pension Board and the Retiree Health Insurance
Fund. In the event of the discontinuance of a member's employment
by the City or in the event of his death prior to the date of his
eligibility for retirement, the Pension Board shall pay to him or
to his legal representatives or to a beneficiary to be named by him
or to his legal representatives or to a beneficiary to be named by
him an amount equal to his contributions under this section, plus
regular interest thereon compounded annually. In the event of the
death of any employee after retirement, the payment shall be the amount
of any excess of his accumulated contributions at his date of retirement
over pension benefits made to him.
B.Â
Where an employee is eligible for normal or early retirement benefit but has chosen to remain in active employment and dies during this period, his spouse may elect either to receive an amount equal to the employee's contributions under this section, plus regular interest thereon compounded annually, in a lump sum, or a benefit equal to 50% of the benefit the employee would have received had he retired the day before his death and elected the fifty-five-percent optional form of payment under § 35-7A(5)(b).
Any member of the retirement system who has completed 10 years of service as an employee of the City of Meriden and who has attained the age of 65 years or who has any combination of years of service and age equaling 80 (Rule of 80) with a minimum of 10 years of service shall be eligible for normal retirement under the provisions of this chapter. Any such member may retire from service by filing with the Pension Board a written statement, duly attested, setting forth at what time subsequent to the date of filing thereof, but not less than 60 days subsequent to such date, he desires to be retired, or the Pension Board may, at its option, upon a showing of just cause, retire any such eligible member, other than an elected official or employee in the employ of the City of Meriden on September 1, 1957, by furnishing him written notice thereof at least 60 days in advance of the specified date of retirement. Any member not retiring when he is first eligible shall continue to be a participant, shall continue to make contributions and shall accrue additional benefits subject to the maximum pension determined in accordance with § 35-7 hereof.
A.Â
Any member of the retirement system who, after 10
years of continuous service as an employee of the City of Meriden,
shall be totally and permanently disabled, except as a result of his
own willful misconduct, from earning compensation at any substantially
gainful employment, as such employment shall be determined by the
Board in its discretion, may be retired for disability in accordance
with the provisions of this chapter, whether or not such disability
resulted from injuries arising out of and in the course of his employment
with said City, provided that proof of total disability is submitted
to the Pension Board, which shall cause examinations to be made by
at least two impartial medical examiners, and provided that such total
disability, if shown to the satisfaction of the Pension Board to have
been sustained during the performance of essential duties pertaining
to his employment by the City of Meriden, shall entitle such member
to retirement for disability irrespective of the duration of his employment,
and, in computing his pension, credit for 10 years' service shall
be used if employed less than that number of years.
B.Â
"Continuous service," for the purpose of this section,
shall mean uninterrupted employment, but absence from employment for
any reason followed by reinstatement within one year thereafter shall
not be considered as breaking the continuity of the employee's service.
In the case of absence from employment for more than one year, the
Pension Board shall determine the period within which the employee
may return without breaking the continuity of his service. Reinstatement
of an employee in the retirement system shall be conditioned upon
such medical examination as the Pension Board may prescribe and upon
payment to the retirement fund of contributions previously withdrawn,
together with such an amount as will establish the proper actuarial
reserve for that portion of the annuity reinstated which was represented
by the contributions previously withdrawn.
C.Â
In computing years of service to determine eligibility
for retirement, no year shall be included in which the employee has
not been in actual service. Time spent as a member of any of the various
boards or in any capacity rendering incidental service to the City
of Meriden shall not be included. Time spent under leave of absence
in the military or naval forces of the United States in time of war
or for compulsory service in the military or naval forces of the United
States in time of peace shall be included, provided that the employee
has received an honorable discharge or certificate of satisfactory
completion of service and has been reemployed by the City of Meriden
within 90 days after such discharge or completion of service.
D.Â
No employee who has been eligible for benefits under,
but has made no contributions to, any other retirement system of the
City of Meriden shall receive credit hereunder for the period of service
represented by employment during the time such other system was in
effect, unless he pays to the Pension Board an amount equal to the
contributions required by such other retirement system, subject to
such rules and regulations as the Board shall prescribe.
A.Â
The Pension Board shall pay, on a monthly basis, to
each member who has been retired under this chapter, a pension for
life according to the following schedule:
(1)Â
Effective January 1, 1984, and only for those employees
retiring after January 1, 1984, the annual amount of the normal-age
retirement benefit shall equal 1 1/2% of the average annual pay of
the highest three consecutive years in the last 10 years prior to
retirement multiplied by years of continuous service in the plan.
This rate of 1 1/2% shall be effective until January 1, 1985, at which
time it shall increase to 1.60% of said computation. This rate of
1.60% shall be effective until July 1, 1986, at which time it shall
increase and shall thereafter remain at 1.75% of said computation.
All those employees retiring after January 1, 1984, but before July
1, 1989, shall be entitled to each of the above rate percentage increases
as they become effective. Effective July 1, 1991, and only for those
employees retiring after July 1, 1989, the annual amount of the normal-age
retirement benefit shall be equal to 2% of the average annual pay
of the highest three consecutive years in the last 10 years prior
to retirement multiplied by years of continuous service in the plan.
(2)Â
Early retirement. Employees may retire when they have attained age 55 with a minimum of 10 years of service and receive a retirement benefit as determined in Subsection A(1) above based on their continuous service to date of retirement, actuarially reduced to reflect such earlier retirement.
(3)Â
At termination of employment before the completion
of 10 years of service, an employee shall receive a refund of his/her
own contributions plus regular interest.
(4)Â
At termination of employment after the completion of 10 years of service, if an employee does not withdraw his/her own contributions plus regular interest, he/she shall be entitled to a retirement benefit as determined in Subsection A(1) and (2) above commencing at normal retirement date based on his/her continuous service.
(5)Â
Form of retirement benefit. Normal form is a life benefit payable for the lifetime of the participant only. (See § 35-5 for death benefit, if any.) Optional forms can be elected by the participant in lieu of the normal form:
(a)Â
Ten years certain and continuous option provides
a member with an actuarially reduced pension during his lifetime dependent
upon his age; but upon his death, provided that it occurs before the
expiration of the period certain, the same payment shall be made for
the remainder of the selected period to a recognized beneficiary.
(b)Â
One hundred percent joint and survivor option
provides a member with an actuarially reduced pension during his lifetime
dependent upon his age and the age of his designated joint and survivor;
but upon his death, provided that it occurs before his designated
joint and survivor, the same payment shall be made to the designated
joint and survivor for such survivor's remaining lifetime. The member
may name as his designated joint and survivor his spouse, dependent
parent, brother, sister or friend.
(6)Â
Cost of living adjustment (COLA). Effective July 1,
1993, and only for those employees retiring after July 1, 1989, such
retiring members shall receive a cost of living adjustment (COLA)
at retirement. The cost of living adjustment (COLA) shall be equal
to 2% compounded every year beginning the later of age 62 or two years
from the date of retirement with a lifetime cap. In no event shall
a COLA over a lifetime amount to more than 50% of the original pension
amount.
[Amended 3-4-2002]
B.Â
Notwithstanding any provision of this plan to the
contrary, any option will not be effective unless the beneficiary
or joint annuitant is the spouse of the participant or unless the
actuarial value of the income expected to be paid to the participant
during his lifetime is at least 50% of the full value of the benefits.
C.Â
The Pension Board shall pay to each member who has
been retired for disability according to the provisions of this chapter
a pension during the continuance of such disability as follows: prior
to the completion of 10 years of service, for a disability arising
out of and in the course of his employment, an amount determined in
the same manner as for a member completing 10 or more years of service,
provided that no pension payable to an employee on account of total
and permanent disability sustained during the performance of essential
duties pertaining to employment by the City of Meriden, as provided
herein, shall be less than 1/2 (50%) the annual rate of regular pay
received by the employee at the time of disability. After 10 years
of service, for a disability arising from whatever cause, a monthly
amount shall be determined at 1 1/2% of the average annual pay of
the highest three consecutive years in the last 10 years prior to
retirement multiplied by years of continuous service in the plan.
(1)Â
The above rate established for disability pension
for injuries incurred after 10 years of service shall be effective
until January 1, 1985, at which time it shall increase to 1.60% of
said computation. This rate of 1.60% shall be effective until January
1, 1986, at which time it shall increase to and thereafter remain
at 1.75% of said computation. All those employees retired for disability
after January 1, 1984, shall be entitled to each of the above rate
percentage increases, as they become effective. Effective July 1,
1991, and only for those employees retiring after July 1, 1989, the
annual amount of the disability pension shall be equal to 2% of the
average annual pay of the highest three consecutive years in the last
10 years prior to retirement multiplied by years of continuous service
in the plan.
(2)Â
The Pension Board may, from time to time, call for
medical evidence that the employee continues to be totally disabled.
If the Pension Board, upon medical evidence, concludes that the disability
for which the employee is receiving a pension no longer exists or
if the Board, in its discretion, determines that such employee is
engaged in gainful employment, the Pension Board shall thereupon order
a discontinuance of the pension payable to such employee.
D.Â
All pension payments shall represent completed months
of retirement and shall become due and payable to the persons entitled
thereto on the last day of each calendar month, provided that the
initial pension payment to a retired member shall be computed as the
pro rata amount of his regular monthly pension corresponding to the
fraction of the month elapsed since the effective date of his retirement.
E.Â
No pension payable under this section shall exceed
60% of the average annual pay of the highest three consecutive years
in the last 10 years prior to retirement.
All moneys received by any member as an award under the Workers' Compensation Act, except as provided in Section 8 of Number 532 of the Special Acts of 1957, as amended in § 35-3, shall be deducted from any concurrent payments provided under this chapter.
No action for amounts due under the provisions
of this chapter shall be brought except within three years after the
right of action accrues. Persons legally incapable of bringing an
action when the right accrues may sue at any time within the three
years next after becoming legally capable of instituting suit. All
amounts not claimed within said period shall remain absolutely a part
of the retirement fund.
The right of any person to a pension or to the
return of contributions, any benefit or right accruing to any person
under the provisions of this chapter, and the cash and securities
held under this chapter shall be exempt from any state or municipal
tax and exempt from levy and sale, garnishment, attachment or any
other process and shall be unassignable.
The Pension Board shall, on or before April
1 of each year, file with the City Council an annual report showing
the financial condition of the retirement system as of the end of
the last completed fiscal year, including an actuarial valuation of
assets and liabilities and setting forth such other facts, recommendations
and data as may be of value to the members of the Pension Board and
the City of Meriden.
This chapter shall take effect July 1, 1972.
Benefits paid under this plan shall be effective as to all employees
who have retired from the City of Meriden during and after the calendar
year of 1972 and who were members of the pension plan in effect at
the time of their retirement.
Any person employed by the City of Meriden on
the effective date of this chapter and covered by the retirement system
established under Number 532 of the Special Acts of 1957, as revised
by the State Legislature June 1961, may, within six months of said
effective date, elect to accept the benefits of said Act as it existed
prior to said date or as amended by the provisions of this chapter.
A.Â
Amendment right. The provisions of this plan may be
amended at any time and from time to time by the City Council; provided,
however, that no amendment shall cause or permit, prior to the satisfaction
of all liabilities of the plan, any part of the fund to revert to
or become the property of the City or to be diverted to purposes other
than for exclusive benefit of members, retired members, terminated
members with a vested interest, coparticipants or beneficiaries of
deceased retired members hereunder, nor shall any amendment effect
adversely in any way any vested rights theretofore acquired by such
members, coparticipants or beneficiaries, except as may otherwise
be necessary to meet the requirements of the Internal Revenue Service
or other governmental authority.
B.Â
Termination right. Although the City hopes to continue
the retirement system and the contributions to the Board indefinitely,
the City may, by action of the City Council, terminate the retirement
system and all further contributions thereunder for any reason and
at any time. If the City temporarily discontinues its contributions
or suspends them in whole or in part, and if such temporary discontinuance
becomes a permanent discontinuance, such permanent discontinuance
shall be deemed to constitute termination of the retirement system
as of the date the contributions were first discontinued.
C.Â
Allocation of assets upon termination. In the event
of termination of the retirement system, the Board shall first allocate
an amount of the retirement fund to each member, retired member, terminated
member with a vested interest, coparticipant, beneficiary of a deceased
member or beneficiary of a deceased retired member equal to the amount
of the contributions, accumulated at regular interest, standing to
the credit of each member as of the retirement system's termination
date, each terminated member with a vested interest as of his termination
date, each retired member as of his retirement date, the beneficiary
of a deceased member as of the date of such member's decease and the
beneficiary or coparticipant of a deceased retired member as of such
member's retirement date, less all amounts received from the retirement
fund by such member, terminated member, retired member, deceased retired
member, beneficiary and/or coparticipant. Such amounts so allocated
shall be paid to the respective members, retired members, terminated
members with a vested interest, coparticipants or beneficiaries unless
a written election is made by such person to have the amount to which
he is so entitled held in the retirement fund and added to the amount,
if any, which shall be set aside for his benefit under their terms
of the following sentence. The remaining net assets in the retirement
fund after deduction of all termination expenses shall then be allocated
by the Board in an equitable manner among the members, retired members,
terminated members with vested interest, coparticipants and beneficiaries
in the following order of precedence to provide for accrued benefits,
which shall be 100% vested as of the date of discontinuance, and such
allocation shall be final:
Order of Precedence
|
Classification at Date of Termination
| |
---|---|---|
Class I
|
Retired members; coparticipants; beneficiaries of deceased members or retired members; members eligible for normal retirement under § 35-6
| |
Class II
|
Members eligible for early retirement under § 35-7; terminated members with a vested interest
| |
Class III
|
All other members
|
D.Â
Disposition of assets after allocation. Such allocation
shall be accomplished through either continuance of the retirement
fund or a new retirement fund or purchase of insurance or annuity
contracts (either group or individual) as the Board shall determine.
E.Â
Exclusive benefits. This plan has been adopted for
the exclusive benefit of certain employees of the City and their beneficiaries.
The City shall have no beneficial interest in the retirement fund
or any part thereof, and no part of the retirement fund shall ever
revert or be repaid to the City, either directly or indirectly, except
for such part of the retirement fund, if any, which remains in the
fund after satisfaction of all liabilities to persons entitled to
benefits under the plan.
A.Â
For the purpose of this section the term "plan date"
means the effective date of the retirement system and each later date
as of which the retirement system is amended so as to increase the
benefits to be provided for highly compensated employees by the City's
contributions.
B.Â
With respect to each plan date of the City, the term
"restricted employee" means any of the 25 highest paid employees of
the City on such date whose anticipated yearly amount of pension provided
by City contributions exceeds $1,500.
C.Â
If at any time during the ten-year period beginning
on a plan date the retirement system is terminated, the City contributions
which may be used for the benefit of a restricted employee shall not
exceed the greatest of the following amounts:
(1)Â
Twenty thousand dollars.
(2)Â
An amount computed by multiplying 20% of the first
$50,000 of the employee's average regular annual compensation during
his last five years of service by the number of years for which the
full current costs of the retirement system have been met since the
plan date, plus, if the plan date is after the effective date, the
City contributions, or funds attributable thereto, which would have
been applied to provide benefits for the employee if the retirement
system had terminated on the day before the plan date.
(3)Â
If the plan date is after the effective date, the
contributions, or funds attributable thereto, which would have been
applied to provide benefits for the employee if the retirement system
as in effect on the day before the plan date and have been continued
without charge.
D.Â
If at any time during the ten-year period beginning
on a plan date the full current costs of the retirement system have
not been met, then, until the full current costs are funded for the
first time thereafter, the benefits payable on the coverage of a restricted
employee shall not exceed the benefits that would have been payable
on his coverage had the retirement system been terminated when such
costs were not met.
E.Â
When the limitation on contributions is being terminated
for more than one plan date, the applicable limitation will be the
smallest of the amounts determined for each plan date.
F.Â
The foregoing conditions shall not restrict the current
payment of the full benefits called for by the retirement system for
an employee while the retirement system remains in effect and the
full current costs have been met.
G.Â
The foregoing conditions shall not restrict the full
payment of any benefits called for by the retirement system for the
coparticipant of an employee who dies while the plan remains in effect
and the full current costs have been met.
H.Â
The terms of this section shall prevail over any other
terms of the retirement system that may be inconsistent herewith.
I.Â
Notwithstanding anything in the retirement system
to the contrary, in the event that the Internal Revenue Service shall
issue an adverse determination letter as to the initial qualifications
of the retirement system under Section 401(a) of the Internal Revenue
Code, then the City shall direct the Board to return to the City all
contributions made to the fund prior to the date of receipt of such
determination letter, whereupon such contributions shall be so returned.