[Added 3-7-2022 by Ord. No. 22-001]
With respect to an employee who currently is covered and subject to the alternative retirement benefit provisions of §
127-48 of the retirement system (a "hybrid member") and is in benefit group general nonunion or in a union benefit group and its collective bargaining agreement expressly provides for this option, he or she may voluntarily opt out of the retirement system and join the Employer's Defined Contribution Retirement Plan (DC Plan) (such members shall be referred to as the "electing hybrid members"). This option is a one-time, irrevocable election during a specified window period established by the City during which the electing hybrid member may voluntarily exercise such option by completing an election and waiver form and returning it to the Human Resources Department by the deadline established by the City. Subject to Subsections A and B below, an electing hybrid member who voluntarily exercises this one-time irrevocable option to join the DC Plan shall irrevocably cease to be a member of the retirement system and shall not accrue any additional benefits under the retirement system beginning on and after January 1, 2022 (the "election effective date"). An electing hybrid member shall become a participant under the Employer's DC Plan as of the election effective date and become subject to the terms of such plan. The following rules shall apply to electing hybrid members:
A. Vested member. With respect to an electing hybrid member who has three or more years of credited service under the retirement system as of the election effective date, he or she shall either, as elected by such electing hybrid member in the election and waiver form, have a frozen benefit under the retirement system as described in Subsection
A(1), or a converted benefit under the DC Plan as described in Subsection
A(2) as follows:
(1) A frozen accrued benefit under the retirement system that will be
computed based on the electing hybrid member's years of credited
service, final average compensation, the benefit multiplier percentage
or other relevant factors in effect as of the election effective date.
The payment of such frozen accrued benefit to the electing hybrid
member shall be subject to all provisions under the retirement system.
(2) An amount equal to 150% of the electing hybrid member's balance
of accumulated contributions (including accumulated interest credits)
under the retirement system automatically shall be transferred from
the retirement system to the DC Plan through a direct plan-to-plan
transfer. Such electing hybrid member shall voluntarily forfeit all
past, present and future rights to any benefit or accruals from the
retirement system and shall not thereafter resume membership under
the retirement system under any circumstances.
B. Unvested member. With respect to an electing hybrid member who has
less than three years of credited service under the retirement system
as of the election effective date, such electing hybrid member shall
voluntarily forfeit all past, present and future rights to (including
any right to become vested in) any benefit or accruals from the retirement
system and shall not thereafter resume membership under the retirement
system under any circumstances. Such an electing hybrid member shall
have 150% of his or her accumulated contributions (including accumulated
interest credits) under the retirement system automatically transferred
from the retirement system to the DC Plan through a direct plan-to-plan
transfer. If a hybrid member does not timely exercise this one-time,
irrevocable option, he or she i) shall remain a hybrid member of the
retirement system, ii) continue to accrue additional benefits under
and in accordance with the terms of the retirement system, and iii)
generally shall not be eligible to participate in the DC Plan, except
as otherwise permitted under the terms of such DC Plan.