As used in this subpart, the following terms shall have the
meanings indicated:
The amount of a police member's retirement benefit payable at his or her normal retirement date, or later date of actual retirement, determined under § 70-32 using such police member's years of contributory service and final average wages of such date.
The Armed Forces of the United States, including the Army
National Guard and the Air National Guard, the commissioned corps
of the Public Health Service, and any other category of persons designated
by the President in time of war or emergency. This definition shall
not apply for purposes of determining any police member's armed forces
benefit from the plan.
The special benefit provided to police members who left service with the Town to perform service in the armed forces as described in § 70-32D.
The individual, who shall be related to the police member, designated by the police member as his or her designated dependent for purposes of receiving benefits from the plan upon the police member's death as described in § 70-37.
The Board of Directors of the Town.
All of a police member's years of employment prior to retirement, death or termination of employment, during which the police member was making contributions to the plan, including periods of approved leaves of absence from such employment. A partial year of contributory service shall include all completed months of service. Contributory service shall include the period for which workers' compensation payments are payable so long as contributions are made for such period pursuant to § 70-29.
The first day of the month coinciding with or next following the date on which the police member elects to retire following the date on which the police member attains his or her normal retirement date as described in § 70-30E.
The defined contribution retirement plan set forth in Article IV of this chapter.
A police member's unmarried child (or children):
A permanent and total disability which prevents the police member
from engaging in or performing the regular duties of a sworn officer
in the Police Department, which was not caused by willful misconduct
on the part of the disabled individual, excluding police members who
are:
In no event shall "disabled" mean a disability for which the
police member has made a claim for compensation under Connecticut
Heart and Hypertension Statutes.
The Town.
The average of a police member's wages over his highest paid
three calendar years of contributory service with the Town. If a police
member retires prior to the end of a calendar year, his or her wages
for any full months of employment during such final partial calendar
year of employment shall be included in the determination of the police
member's final average wages in addition to the police member's wages
during his or her three highest paid calendar years of contributory
service. If any such additional months of employment are considered
in calculating final average wages, final average wages shall be determined
by:
Dividing:
The police member's wages over the highest paid three calendar
years of contributory service with the Town, plus the wages earned
during any full months of employment during the police member's final
year of employment; by
Thirty-six, plus the number of full months of employment in
the police member's final year of employment; and
Multiplying the result by 12.
The Internal Revenue Code of 1986, as such has been and as
such may be amended from time to time, and any regulations promulgated
thereunder and interpretations thereof as such may affect this Subpart
C.
The contributions required to be made to the plan as a condition
of a police member's employment with the employer.
The earlier of:
The board described in § 70-51 responsible for the management, administration and control of the plan.
The Pension Ordinances of the Town, as they may be amended
and restated from time to time.
The twelve-month period beginning each July 1 and ending
each June 30.
The Town's Police Department.
A member who is employed as sworn police personnel by the
Police Department.
The later of:
A police member's commencement of normal or deferred retirement benefits following his or her termination of employment in accordance with § 70-30.
A separate fund consisting of contributions made by police
members of the plan, appropriations made to the plan by the Board
of Directors, and earnings and losses thereon.
The person, if any, to whom the police member is lawfully
married.
The Town of Manchester, Connecticut.
Any employee of the Town who is not a member of a collective
bargaining unit recognized by the Town for purposes of this plan.
A police member's salary or wages, including overtime pay,
any salary reduction amounts under Sections 125, 414(h) and 457 of
the Internal Revenue Code, and qualified transportation fringes as
set forth in Section 132(f)(4) of the Internal Revenue Code, but exclusive
of workers' compensation, any maintenance payments and other special
payments or remuneration, including private duty pay. Wages shall
not include wages of any police member in excess of $275,000, increased
as permitted under Section 401(a)(17) of the Internal Revenue Code,
to reflect cost-of-living adjustments. For police members hired on
or after March 17, 2017, workers' compensation payments shall be included
in wages and overtime pay shall be excluded.
Active military service during periods of war or armed conflict
measured in completed calendar months.
A.
Participation.
(1)
Police members hired prior to March 7, 2017, shall automatically
participate in this Subpart C of the plan commencing on the first
day of the month coinciding with or next following the date of hire.
(2)
Police members hired on or after March 7, 2017, shall make an irrevocable
election to participate in this Subpart C of the plan or the Defined
Contribution Plan. Such election shall be made within 30 days of the
date the employee's employment commences, with such election becoming
effective on the first day of the month coinciding with or next following
the date of such election.
B.
Exclusions. A police member who elects to participate in the Defined
Contribution Plan shall be permanently ineligible to participate in
this plan.
A.
Police members shall be required to make mandatory contributions
to the plan from their wages in accordance with the provisions of
this Subpart C.
B.
Mandatory contributions shall be deposited into the Retirement Allowance
Fund. A police member shall deposit no money, other than authorized
payroll deductions, into the Retirement Allowance Fund.
C.
A police member shall be required to authorize the Town to deduct
as mandatory contributions an amount equal to 8.5% of his or her wages
from his or her pay each pay period, provided that for this purpose
for police members hired on or after March 7, 2017, wages shall only
include base wages and shall not include overtime, salary reductions,
and qualified transportation fringes. Workers' compensation payments
shall require the payment of 8.5% of such payments through salary
withholding (for claims prior to January 6, 2017, such withholding
must be agreed to prior to January 1, 2018).
D.
Police members with 33 1/3 or more years of contributory service
with the Town shall not be required to make any further mandatory
contributions to the plan.
E.
Picked-up contributions.
(1)
Pursuant to the provisions of Section 414(h)(2) of the Internal Revenue Code, the Town shall pick up and pay the mandatory contributions described in Subsection C above, which would otherwise be payable by police members on an after-tax basis. Such picked-up mandatory contributions shall be treated as contributions made by the employer for purposes of determining the amounts of federal income tax to withhold from each police member's salary.
(2)
Mandatory contributions picked up by the Town shall be paid from
the same source of funds used for the payment of salaries to police
members. A deduction shall be made from each police member's pay equal
to the amount of the police member's mandatory contributions to be
picked up by the Town, provided that such deduction shall not reduce
the police member's pay for purposes of computing benefits under this
plan.
(3)
Mandatory contributions picked up by the Town shall be credited to
a separate account within each police member's individual contribution
account, so that amounts contributed by the police member on an after-tax
basis before July 1, 1991, may be distinguished from the mandatory
contributions picked up by the Town on behalf of the police member.
A.
A police member shall be eligible to retire and begin receiving benefits
from the plan on his or her normal retirement date.
B.
A police member may be eligible to retire on a date other than his
or her normal retirement date to the extent provided under this Subpart
C.
C.
A police member who wishes to retire and begin receiving benefits
from the plan shall be required to make written application to the
Pension Board at least 30 days prior to his or her desired normal
or deferred retirement date. Benefits shall not commence until 30
days after a completed application is received and approved by the
Pension Board. A police member must include with such retirement application
evidence of his or her date of birth, and, if applicable, evidence
of the date of birth of his or her spouse or beneficiary.
D.
Normal retirement. A police member shall be eligible to retire and
begin receiving benefits from the plan on his or her normal retirement
date.
E.
Deferred retirement for police members.
(1)
Each police member must retire and begin to receive pension benefits
no later than the first day of the month following his or her 60th
birthday. In exceptional cases, the General Manager of the Town, upon
written request of a police member received at least three months
prior to such police member's 60th birthday, may extend that police
member's employment for an additional six months beyond his or her
60th birthday. The General Manager's failure to approve such a request
by a police member shall be final and binding and shall not be subject
to judicial or administrative appeal.
(2)
Notwithstanding the foregoing, the Chief of Police shall be retired
on the day following his or her 65th birthday, except that the Chief
of Police may, at his or her request and with the annual approval
of the General Manager, be retained as Chief of Police beyond such
date.
(3)
The General Manager shall give written notice to the Pension Board
of all employment extensions that are approved. If a police member
continues to work beyond his or her normal retirement date with approval
of the General Manager, pension benefits shall be deferred until the
first day of the month following his or her termination of employment.
A.
Service purchase if attained normal retirement age prior to December
31, 2010.
(1)
A police member who attained normal retirement age prior to December 31, 2010, shall be permitted to purchase additional years of contributory service to be considered in calculating the police member's benefit as described in this Subsection A.
(2)
A police member who is eligible for a payout of accrued sick, vacation or annual leave upon retirement may elect to purchase additional years of contributory service with such leave. A police member may purchase one year of contributory service for purposes of eligibility and benefit accrual in exchange for 50 days of accrued sick, vacation or annual leave for which he or she would be paid at retirement. The maximum number of years of contributory service that may be purchased under this Subsection A(2) is three years.
(3)
A police member may also elect to purchase additional years of contributory
service with amounts transferred to the plan from a Section 403(b)
plan or Section 457(b) plan of a governmental employer. A police member
may purchase one year of contributory service for purposes of eligibility
and benefit accrual in exchange for transferring to the plan an amount
equal to 30% of the police member's current wages for the year in
which the additional contributory service is purchased.
B.
Service purchase for wartime service.
(1)
A police member shall be eligible to purchase up to four years of
contributory service for each year of his or her wartime service,
at a rate and in a manner determined by the Town's actuary and the
Pension Board. Such contributory service must be purchased within
60 days of the police member's date of hire.
(2)
A police member may purchase years of contributory service for wartime service with amounts transferred to the plan from a Section 403(b) plan or Section 457(b) plan of a governmental employer. A police member may purchase one year of contributory service for each year of wartime service for purposes of benefit accrual in exchange for transferring to the plan an amount equal to 30% of the police member's current wages for the year in which the additional contributory service is purchased. The maximum amount of wartime service that may be purchased under this Subsection B(2) shall be one year of contributory service. Police members hired on or after March 7, 2017, who had prior wartime service are not allowed to purchase prior contributory service except as provided in Subsection C.
(3)
Police members who were members of the plan prior to becoming employed
by the Police Department shall be allowed to purchase not more than
four years of prior contributory service at a rate and in a manner
determined by the plan's actuary and the Pension Board. A police member
who has prior contributory service time as a member shall be allowed,
within 60 days after his or her date of hire, to purchase such prior
contributory service.
C.
Service credit for periods of qualified military service. A police
member who performs qualified military service [as that term is defined
in Section 414(u) of the Internal Revenue Code] shall be entitled
to receive contributory service credit for time spent in qualified
military service as required under Section 414(u) of the Internal
Revenue Code. The crediting of such contributory service shall be
contingent upon the police member's payment of any police member contributions
due for such period, as permitted under Section 414(u) of the Internal
Revenue Code.
A.
The amount of a police member's retirement benefit shall be determined
under this Subpart C.
B.
Notwithstanding the provisions of this subpart, in no event will a police member's benefit from the plan exceed the limitation on annual benefits set forth in § 70-36.
C.
Normal retirement benefit. A police member who retires on his or her normal retirement date under § 70-34A shall be entitled to an annual benefit equal to 2.5% of his or her final average wages (2.25% of his or her final average wages for police members hired on or after March 7, 2017), multiplied by his or her number of full and partial years of contributory service (to a maximum of 33 1/3 years).
D.
Armed forces benefit.
(1)
A police member shall be eligible to receive a benefit for periods of military service performed prior to October 13, 1996. This benefit shall be in addition to the benefit determined under Subsection C above.
(2)
Such benefit shall be payable for any period:
(a)
Occurring prior to October 13, 1996;
(b)
During which the police member left employment with the Town
to perform compulsory military service in the armed forces, including
the Merchant Marine Service of the United States; and
(c)
During which a state of hostilities existed between the United
States and any other country.
(3)
Such additional benefit shall be equal to 1% of the police member's annual rate of pay on the date he or she left employment with the Town for such compulsory military service, multiplied by his or her full and partial years of compulsory military service meeting the requirements of Subsection D(2) above.
E.
Deferred retirement benefit. A police member who continues to work beyond his or her normal retirement date in accordance with § 70-30 shall be entitled to a benefit calculated under Subsection C based on the police member's full and partial years of contributory service performed as of his or her deferred retirement date.
G.
H.
Cost of living adjustment.
(1)
Notwithstanding any other provision of this § 70-32, the monthly pension benefit paid to a retired police member, or his or her beneficiary, who was receiving benefits on July 1, 1998, shall be increased by 2% of the benefit being paid on June 1, 2005, provided that the police member completed at least 15 years of contributory service.
(2)
Notwithstanding any other provision of this § 70-32, effective July 1, 2007, the monthly pension benefit paid to a retired police member, or his or her beneficiary, who was receiving benefits on July 1, 2000, shall be increased by 2% of the benefit being paid on June 1, 2007, provided that the police member completed at least 15 years of contributory service.
(3)
Notwithstanding any other provision of this § 70-32, effective July 1, 2009, the monthly pension benefit paid to a retired police member, or his or her beneficiary, who was receiving benefits on July 1, 2002, shall be increased by 2% of the benefit being paid on July 1, 2009, provided that the police member completed at least 15 years of contributory service.
(4)
Notwithstanding any other provision of this § 70-32, effective July 1, 2011, the monthly pension benefit paid to a retired police member, or his or her beneficiary, and who was receiving benefits on July 1, 2004, shall be increased by 1% of the benefit being paid on July 1, 2011, provided that the police member completed at least 15 years of contributory service prior to termination of employment with the Town.
(5)
Notwithstanding any other provision of this § 70-32, effective July 1, 2013, the monthly pension benefit paid to a retired police member, or his or her beneficiary, and who was receiving benefits on July 1, 2006, shall be increased by 1% of the benefit being paid on July 1, 2013, provided that the police member completed at least 15 years of contributory service prior to termination of employment with the Town.
(6)
Notwithstanding any other provision of this § 70-32, effective July 1, 2015, the monthly pension benefit paid to a retired police member, or his or her beneficiary, and who was receiving benefits on July 1, 2008, shall be increased by 1% of the benefit being paid on July 1, 2015, provided that the police member completed at least 15 years of contributory service prior to termination of employment with the Town.
(7)
Notwithstanding any other provision of this § 70-32, effective July 1, 2017, the monthly pension benefit paid to a retired police member, or his or her beneficiary, and who was receiving benefits on July 1, 2010, shall be increased by 1% of the benefit being paid on July 1, 2017, provided that the police member completed at least 15 years of contributory service prior to termination of employment with the Town.
A.
A police member's eligibility for a retirement benefit due to his
or her disability, and the amount of any such benefit, shall be determined
under this Subpart C.
B.
Disability retirement benefits and workers' compensation.
(1)
In the event that a police member becomes disabled and is entitled
to a lump sum workers' compensation settlement payment from the Town
due to his or her disability in lieu of any other benefits under the
plan, the Pension Board may direct the lump sum payment of such settlement
amount, or any portion thereof identified by the actuary for the plan
as attributable to benefits under the plan, to such police member.
(2)
Any such lump sum under Subsection B(1) shall be paid from the plan:
(a)
To the police member, in a single lump sum payment; or
(b)
To the Town, in a single lump sum payment, in which case the Town shall make the workers' compensation settlement payment from its general assets and the payment from the plan under this Subsection B(2)(b) shall represent reimbursement to the Town of the police member's workers' compensation settlement payment.
(3)
Police members who are eligible to receive payment in accordance
with the Connecticut Workers' Compensation Act,[1] and who have said payments suspended or terminated for
failure to adhere to the provisions of the Workers' Compensation Act,
shall not be eligible to receive disability payments from the plan.
[1]
Editor's Note: See Connecticut General Statutes § 31-275
et seq.
C.
Application for disability payments; term of payments.
(1)
A police member who wishes to apply for disability benefits from
the plan must make an application to the Pension Board within one
year of the date on which his or her active service with the Town
terminates due to his or her becoming disabled. Upon receipt of such
application, the Pension Board shall determine:
(2)
A police member who is found to be entitled to receive a disability benefit under Subsection C(1) above shall begin receiving such benefit on the first day of the month coincident with or next following the date on which the police member's application is approved by the Pension Board.
(3)
A police member's last disability benefit payment shall be due and
payable on the earlier of:
D.
Eligibility for disability payments. A police member who becomes
disabled shall have the option, to be exercised by filing a written
application with the Pension Board, to receive monthly disability
payments while he or she is disabled, provided that he or she:
(1)
Becomes disabled during the performance of essential duties pertaining
to employment by the Town and while acting in the scope of such employment,
regardless of his or her years of contributory service; or
(2)
Becomes disabled under circumstances unrelated to employment while
employed by the Town, and has completed at least five years of contributory
service as of the date he or she becomes disabled.
E.
Amount of disability benefit.
(1)
A police member shall be entitled to monthly payments while he or she is disabled equal to the amount of his or her benefit calculated under § 70-32C, provided that the monthly payment made to such police member shall not exceed 1/12th of 50% of the police member's final average wages as of the date he or she became disabled, as determined by the Pension Board in its discretion.
F.
Restrictions on amount of disability benefit.
(1)
In no event shall the total of the police member's benefit under this § 70-33 and earnings received from an employer other than the Town (including self-employment) exceed the salary currently payable to an individual in the position occupied by the police member in the Police Department at the time he or she became disabled.
(2)
The Pension Board shall periodically review the salary and pension amount of disabled police members to determine if such police member's benefit and earnings exceed the salary restriction described in this Subsection C, and shall cease monthly pension payments to the extent that such cessation is required to eliminate payments in excess of the salary restriction. The Pension Board shall have the right to require, at any time, information necessary to verify the salary earned by the police member. If such police member shall fail to present information satisfactory to the Pension Board, a hearing will be scheduled, at which time the police member may present additional information to the Pension Board. A majority of the members of the Pension Board shall be present at the hearing, and said members of the Pension Board may vote to terminate disability payments. The decision of the Pension Board will be final and conclusive as to any parties in interest.
G.
Initial and continuing evidence of disability.
(1)
The Pension Board shall have the right to require, on each anniversary
of the date of commencement of disability payments to a police member,
evidence of the continuance of such police member's disabled status.
(2)
As part of this process, the Pension Board may require the police
member to submit to a medical exam by a physician of the Pension Board's
choosing to determine if the police member continues to be disabled.
(3)
If the police member fails to present evidence satisfactory to the
Pension Board that the police member continues to be disabled on each
such anniversary, or fails to submit to a medical examination as required
by the Pension Board, the police member's disability benefits shall
be terminated with respect to the police member retroactive to the
date of such anniversary.
(4)
If the Pension Board determines that a police member is no longer
disabled, the police member shall have the right to request a hearing
before the Pension Board, at which he or she may present further evidence
of his or her disabled status. Any such hearing will be held by the
Pension Board within a reasonable period of time following the receipt
of a written request for a hearing from the police member.
A.
Commencement of benefits. Payment of a police member's accrued benefit
shall begin no later than the 60th day of the Plan Year following
the Plan Year in which the police member's normal retirement date,
or, if later, the police member's actual retirement date, occurs.
In all cases, distributions shall commence no later than the police
member's required beginning date.
B.
Distribution of benefits.
(2)
All distributions required under this section shall be determined
and made in accordance with the regulations under Section 401(a)(9)
of the Internal Revenue Code, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-6 of the regulations of
the Internal Revenue Code.
(3)
Any additional benefits accruing to the police member after his or
her required beginning date shall be distributed as a separate and
identifiable component of the annuity beginning with the first payment
interval ending in the calendar year immediately following the calendar
year in which such amount accrues.
(4)
Any amount paid to a child of the police member will be treated as
if it had been paid to the surviving spouse of the police member if
the amount becomes payable from the plan on the date the child reaches
the age of majority (or other designated event permitted under the
Internal Revenue Code).
A.
Normal form of benefit. The normal form of benefit shall be a single
life annuity. Such single life annuity shall provide an unreduced
monthly payment during the lifetime of the police member, with the
last payment made for the month in which the police member dies.
B.
Optional forms.
(1)
A police member may request that benefits payable from the plan be paid in one of the following optional forms rather than the normal form described in Subsection A:
(a)
A 100% joint and survivor annuity, with reduced monthly benefit
payments payable to the police member during his or her life and payments
made following the police member's death in the same amount to the
police member's beneficiary for the remainder of such beneficiary's
life.
(b)
A 50% joint and survivor annuity, with reduced monthly benefit
payments payable to the police member during his or her life and with
payments made following the police member's death in an amount equal
to 50% of the monthly benefit payable to the police member to the
police member's beneficiary for the remainder of such beneficiary's
life.
(2)
A police member who elects to receive his or her benefit in an optional
form must make such election and designate his or her beneficiary
on the form required by the Pension Board. Such form must be filed
with the Pension Board at least 30 days prior to the police member's
desired retirement date.
(3)
If a police member's beneficiary dies before a police member's actual retirement date, the police member's election of an optional form of benefit shall be canceled and the police member shall receive his or her benefit in the normal form described in Subsection A. Once benefit payments commence, a police member may not change his or her chosen form of benefit or beneficiary.
(4)
The Pension Board shall require that a police member furnish satisfactory
evidence of good health if a police member's written election of an
optional form of benefit is made within the one-year period prior
to the police member's actual retirement date.
C.
Calculation of benefit for optional forms.
(1)
The amount of a police member's benefit in the 100% joint and survivor annuity form is calculated by multiplying the amount of the police member's benefit in the normal form, described in § 70-35A, times the sum of:
D.
Rollover of benefit.
(1)
The Pension Board shall furnish each police member, no less than
30 days and no more than 90 days prior to the date such police member
will receive a distribution which is not paid in the form of an annuity
or in installments over a period of more than 10 years, with a written
explanation of his right to elect a direct rollover and the withholding
consequences of not making such election. A police member may waive
the thirty-day time period set forth above.
(2)
Unless a police member elects a direct rollover, as defined in Subsection D(3) below, 20% of the amount of the taxable portion of any applicable distribution shall be subject to Internal Revenue Service income tax withholding. If the taxable portion of a police member's distribution does not exceed $200 (or such other amount as prescribed by the Internal Revenue Service), the foregoing withholding requirement shall not apply.
(3)
A "direct rollover" is an eligible rollover distribution as defined
in Treasury Regulations issued pursuant to Section 401(a)(31) or 402(c)
of the Internal Revenue Code that is paid directly to:
(a)
An individual retirement account described in Section 408(a)
of the Internal Revenue Code;
(b)
An individual retirement annuity described in Section 408(b)
of the Internal Revenue Code;
(c)
An annuity plan described in Section 403(b) of the Internal
Revenue Code;
(d)
An eligible plan under Section 457(b) of the Internal Revenue
Code maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a
state; or
(e)
A qualified plan described in Section 401(a) or 403(a) of the
Internal Revenue Code that accepts the eligible rollover distribution.
(4)
A police member may not elect a direct rollover of a distribution
that does not exceed $200 ($500 if the police member is electing a
direct rollover of only a portion of his benefit). A police member
electing a direct rollover shall be required to furnish the Pension
Board with adequate information with respect to the recipient plan,
including, but not limited to, the name of the recipient plan and
a representation that the recipient plan is an eligible individual
retirement plan or qualified defined contribution plan and that it
will accept the police member's direct rollover. If a police member
fails to elect a direct rollover or provide the Pension Board with
adequate information in order to make a direct rollover prior to the
date distribution is to be made to such police member, such police
member shall be deemed not to have elected a direct rollover.
A.
Generally. The statutory maximum amount of annual pension payments made during any limitation year shall be determined in accordance with Subsection B. The term "limitation year" shall mean the calendar year, and the term "compensation" shall be defined as set forth in Section 415 of the Internal Revenue Code.
C.
Secondary limitations. The basic limitation in Subsection B shall be reduced or increased, as applicable, for the following situations:
(1)
Commencement of payments prior to age 62. In the case of a benefit
beginning prior to the police member's attainment of age 62, the limitation
of $215,000 shall be actuarially reduced so that it is the actuarial
equivalent (on the basis of an interest rate assumption not less than
the greater of 5% or the rate specified in the plan) to an annual
benefit of $210,000 beginning at age 62.
(2)
Commencement of pension payments after age 65. In the case of a benefit
beginning after the police member attains age 65, the limitation of
$215,000 shall be actuarially increased so that it is the actuarial
equivalent (on the basis of an interest rate assumption not greater
than the lesser of 5% or the rate specified in the plan) to a benefit
beginning at the police member's attainment of age 65.
D.
Limitation if less than 10 years' participation. The limitation in Subsection B shall be reduced in the case of any police member who has had less than 10 years of participation in the plan by multiplying the limitation by a fraction, the numerator of which is the number of years (or part thereof) of participation in the plan and the denominator of which is 10.
E.
Exceptions to basic limitation.
(2)
(3)
The limitation described in Subsection C(1) shall not apply to a police member if the period of contributory service taken into account in determining the amount of the benefit payable from this plan includes at least 15 years of contributory service of the police member as a full-time employee of the Town's Police Department.
F.
Cost-of-living limitation adjustment. If the Secretary of the Treasury shall, by regulations, have raised the limitation of $215,000 of Subsection B above to reflect increases in the cost of living, the limitation in effect at the time of a police member's commencement of benefits shall be applied.
G.
"Annual benefit" defined. For the purpose of Subsection B above, "annual benefit" means the benefit payable to a police member from the plan in the form of a straight life annuity with no ancillary benefits. If the annual benefit is payable in any form other than a straight life annuity with no ancillary benefits, then for purposes of applying the general limitations of Subsection B above, the annual benefit shall be adjusted, using an interest rate assumption not less than the greater of 5% or the interest rate specified in the plan, to take into account the payment of a pension in such other form; provided, however, that no adjustment shall be required by reason of benefits not directly related to retirement or by reason of payment of that portion of any joint and survivor annuity which constitutes a qualified joint and survivor annuity within the meaning of Section 417 of the Internal Revenue Code.
H.
Participation in more than one defined benefit plan. If the police
member participated in more than one defined benefit plan maintained
by the Town, regardless of whether any such plans are terminated,
the statutory maximum pension payments shall be determined as if there
was just one defined benefit plan, but the pension payments so determined
will apply on a pro rata basis between, or among, such plans.
I.
Applicability of limits to police members hired before 1990. Protection of prior accrued pension payments. The dollar limitations described in this § 70-36 shall not apply to the benefit of a police member who began participating in the plan prior to January 1, 1990 (determined without regard to any amendment of the plan made after October 14, 1987).
A.
A police member's eligibility for, and the amount of, any death benefit
payable due to the police member's death prior to retirement shall
be determined under this Subpart C.
B.
Death after retirement. Upon the death of a police member who is receiving or has received retirement benefits, including disability payments, in the normal form described in § 70-35A, a lump sum death benefit shall be paid to the police member's beneficiary. The amount of the lump sum death benefit, if any, will equal:
(1)
The police member's total contributions, comprised of:
(a)
The total contributions made by the police member prior to July
1, 1983, with compound interest at the rate of i) 3% per year for
the period from the January 1 following the date the contribution
was made through the date retirement benefits or disability payments
commenced or, if earlier, January 1, 1984, and ii) 5% per year for
the period from January 1, 1984, through the date such payments commenced;
plus
(b)
The total contributions made by the police member on and after
July 1, 1983, with compound interest at the rate of 5% per year for
the period from the January 1 following the date the contribution
was made through the date retirement benefits or disability payments
commenced.
(2)
Reduced by the total amount of retirement benefits, including disability
payments, paid to the police member by the plan prior to the police
member's death.
C.
Designation of beneficiary. The records of the Pension Board shall
be conclusive as to whether a police member has elected a beneficiary
with respect to the death benefit described in this section, and as
to the identity of such beneficiary. If a police member has named
more than one beneficiary, then, unless otherwise specifically provided,
the death benefit, if any, shall be paid equally to each of the named
beneficiaries surviving the police member. If no named beneficiary
shall survive a police member, the death benefit, if any, shall be
paid to the executors or administrators of the estate of such police
member, except that, if the amount shall be less than $500, the death
benefit may, at the option of the Director of Finance, be made in
accordance with § 45a-273 of the Connecticut General Statutes.
D.
Spouse as beneficiary. Any pension payments to a surviving spouse
shall terminate as of the earlier of such spouse's death or remarriage,
unless otherwise specified herein. No such benefits will be payable
to the surviving spouse if a final decree of divorce of the spouse
and police member has been entered at the time of the police member's
death, except as provided pursuant to any applicable qualified domestic
relations order.
E.
The eligibility of a police member who dies while performing military service for a death benefit shall be determined under this § 70-37E. If a police member leaves employment with the employer to perform qualified military service and dies while performing such qualified military service, the police member's surviving beneficiary shall be entitled to the death benefit that would have been available under this Subpart C had the police member returned to employment following his qualified military service on the date of his death and dies on the next following day. For purposes of this § 70-37E, the term "qualified military service" shall be defined as set forth in Section 414(u) of the Internal Revenue Code.
F.
If the beneficiary of a police member is neither the police member's spouse nor the police member's dependent child, such beneficiary shall receive a lump sum death benefit upon the death of the police member. No death benefit is payable from the plan under this Subsection F if the deceased police member commenced receiving benefits from the plan prior to his or her death.
(1)
The amount of the lump sum death benefit, if any, will be equal to:
(a)
The total contributions made by the police member prior to July
1, 1983, with compound interest at the rate of: i) 3% per year for
the period from the January 1 following the date the contribution
was made through the first of the month in which death occurs or,
if earlier, January 1, 1984; and ii) 5% per year for the period from
January 1, 1984, through the first of the month in which death occurs;
plus
(b)
The total contributions made by the police member on and after
July 1, 1983, with compound interest at the rate of 5% per year for
the period from the January 1 following the date the contribution
was made through the first of the month in which death occurs.
G.
Death benefit for police member's spouse or child beneficiary.
(1)
If the beneficiary of a police member is the police member's spouse or, if the police member has no spouse, such police member's dependent child, such beneficiary may elect to receive the death benefit in a lump sum in accordance with Subsection F.
(2)
If the beneficiary of a police member is the police member's spouse
or, if the police member has no spouse, such police member's dependent
child, and such police member had completed at least five years of
contributory service at the time of his or her death, such beneficiary
may elect to receive a monthly death benefit to be paid to the police
member's spouse or, if there is no spouse, the dependent child, to
commence as soon as administratively possible following the later
of:
(3)
Such monthly death benefit shall be equal to 50% of the amount the police member would have been eligible to receive had he or she retired on the day of his or her death and elected to receive his or her benefit in the optional form described in § 70-35B(1)(b).
(4)
The death benefit determined under Subsection G(3) above shall be reduced by 5% per year (0.4167% per month) for each year by which the police member's age at his or her death preceded age 50. However, this reduction shall not be applied, regardless of the police member's age, if the police member had completed 25 years or more of contributory service at the time of his or her death. The maximum reduction of a death benefit pursuant to this Subsection G(4) shall be 50%.
(5)
Payments to a spouse of a deceased police member shall cease upon
such spouse's remarriage. Payments to a dependent child of a deceased
police member shall cease on the earlier of the date such dependent
child attains age 18 or is married, unless such dependent child:
(6)
Any amounts payable to a dependent child pursuant to this section
shall be made to his or her legal guardian or, if the dependent child
has no legal guardian, to such other person designated by the Pension
Board.
A.
Lump sum payment.
(1)
A police member who ceases to be employed by the Town before he or
she is eligible for early retirement benefits from this plan may,
upon written request to the Pension Board, withdraw:
(a)
The total contributions made by him or her prior to July 1,
1983, with compound interest at the rate of: i) 3% per year for the
period from the January 1 following the date the contribution was
made through the first of the month in which the withdrawal request
is received by the Pension Board or, if earlier, January 1, 1984;
and ii) 5% per year for the period from January 1, 1984, through the
first of the month in which such request is received; plus
(b)
The total contributions made by the police member on and after
July 1, 1983, with compound interest at the rate of 5% per year for
the period from the January 1 following the date the contribution
was made through the first of the month in which the withdrawal request
is received by the Pension Board.
(2)
Payment in accordance with this Subsection A shall be in final settlement of all obligations of the plan to a police member and his beneficiary. If a police member ceases to be employed by the Town and is not reemployed by the Town within five years of the date he or she terminates employment, he or she shall be conclusively presumed to have made a withdrawal request pursuant to this Subsection A. A police member who elects to receive pension payments under Subsection B will not be entitled to any amounts pursuant to this Subsection A. If a police member cannot be located, he shall be deemed to have forfeited his benefits under the plan until such time as he makes a claim for such benefits.
B.
Pension payments. Pension payments to police members who cease employment
with the Town shall be made in accordance with this Subpart C.
C.
A police member who had not completed five years of contributory service as of July 1, 2005, but who ceases employment with the Town after completing 10 years of contributory service, shall be eligible for pension payments from this plan, provided that he or she has not withdrawn contributions in accordance with this § 70-38.
D.
Notwithstanding the foregoing, if the Chief of Police ceases employment with the Town after completing five years of contributory service, he shall be eligible for pension payments from this plan, provided that he or she has not withdrawn contributions in accordance with § 70-38A.
E.
Amount of payment. Monthly pension payments shall be computed based on the police member's years of contributory service prior to termination of Town employment in accordance with § 70-32, depending upon the date payments commence.
F.
Notwithstanding any other provision of this Pensions and Retirement
chapter, in accordance with an agreement between the Town of Manchester
and the Manchester Police Officers Association dated September 11,
2020, recognizing the extremely unique circumstances of the situation,
Police Sergeant Stephen Bresciano is allowed to commence a normal
retirement effective October 1, 2020. The agreement sets no precedent
and will not be used as a basis for future claims on behalf of its
members.
[Added 11-10-2020]
