Common use of 1997 Benefit Changes Clause in Contracts

1997 Benefit Changes. a. The Disability Income Offset provision is eliminated. There will be no reduction of retirement benefits if the retiree has other income. b. A five-year purchase of service credit provision is established effective January 1, 1997. Under this provision, the eligible members may purchase up to five years of service credit by paying both employee and employer contributions in an amount and manner determined by the SDCERS Board to make the Retirement System whole for such time. In addition, eligible members retiring on or after January 1, 1997, may purchase probationary periods, Military and Veterans Code leaves, waiting periods for the 1981 Pension Plan, actual time worked hourly or part-time, SLOWP occurring prior to January 1, 1997, the difference in time between part time and full-time prior to January 1, 1997, LTD, Vocational Rehabilitation Maintenance and Temporary Total Disability, FMLA periods, special leaves of absence with job to be saved periods, and any period preceding reinstatement by the Civil Service Commission following a termination appeal. c. DROP is established effective April 1, 1997. DROP provides an alternative form of benefit accrual while allowing an eligible Member to continue working for City. During the DROP period, a DROP participant retains all rights, privileges and benefits of being an active City employee, except as specifically modified in Chapter 2, Article 4, Division 14 of the Municipal Code, and is subject to the same terms and conditions of employment including disciplinary actions up to and including termination. The Member continues to be eligible for the active employee Flex Benefits Plan for the classification and is not eligible for “Retiree” Health Benefits until such time as the Member completes or terminates the DROP period. Under DROP, a monthly service retirement allowance along with any COLA increases, Supplemental Benefit checks and any adjustments to such payments applicable to retirements effective on the date the Member entered DROP, are credited to the Member’s DROP Account in the SDCERS Trust Fund. These SDCERS benefits are calculated as if the Member were retiring on the date the Member enters the DROP. The Member’s contributions to the Retirement System cease. The Member and City each contribute 3.05% of the Member’s Base Compensation, as defined in Municipal Code section 24.0103, each pay period that the Member participates in the DROP. The Member’s contribution is made on a pre- tax basis pursuant to IRC section 414(h)(2). These employee and employer contributions are credited to the Member’s DROP Account and are distributed to the DROP participant upon termination of employment. No withdrawals may be made from the DROP account until the Member terminates City employment. Interest is credited to the Member’s DROP Account at a rate determined by the SDCERS Board. The Member is 100% vested in their DROP Account at all times. 1. A DROP participant who becomes disabled may apply for conversion of their deferred retirement allowance to a disability retirement allowance calculated at the date of entry into DROP, and the employee shall retain all of the DROP and matching contributions. A Member who participates in DROP irrevocably designates a specific consecutive period of months for participation, not to exceed sixty months. The Member must terminate City service at the end of the designated period. 2. After the Member terminates City employment, the DROP account will be distributed as a lump sum, or in any other manner permitted by the IRS. d. For retirements effective on or after January 1, 1997, the 50% continuance is available to the spouse to whom the Member was married on the date of retirement. The requirement that the Member be married to their spouse at least one year prior to retirement for the spouse to receive the 50% continuance is eliminated. e. The surviving spouse of a Member who is killed while in the performance of duty is entitled to continued health coverage as provided in California Labor Code section 4856. f. The modified special death benefit provided to the surviving spouse of a Member killed in the line of duty is amended to eliminate the requirement that the benefit be discontinued if the spouse remarries. Any benefit terminated to such spouse as a result of remarriage shall be reinstated effective January 1, 1997. g. A retirement allowance cap of 90% of Final Compensation, as defined in Municipal Code section 24.0103, is established for eligible Fire Safety Members. h. This paragraph has been left in the MOU for historical purposes only and has no force and effect during the term of this MOU. City and Local 145 agree to jointly support a request to the SDCERS Board to pay 0.49% of the employee’s contribution from SDCERS’ undistributed earnings effective July 1, 1998. This 0.49% represents a portion of the increase in employee’s contribution scheduled to go into effect July1, 1998, as a result of benefit improvements, which were implemented January 1, 1997.

1997 Benefit Changes. a. The Disability Income Offset provision is eliminated. There will be no reduction of retirement benefits if the retiree has other income. b. A five-year purchase of service credit provision is established effective January 1, 1997. Under this provision, the eligible members may purchase up to five years of service credit by paying both employee and employer contributions in an amount and manner determined by the SDCERS Board to make the Retirement System whole for such time. In addition, eligible members retiring on or after January 1, 1997, may purchase probationary periods, Military and Veterans Code leaves, waiting periods for the 1981 Pension Plan, actual time worked hourly or part-time, SLOWP occurring prior to January 1, 1997, the difference in time between part time and full-full- time prior to January 1, 1997, LTD, Vocational Rehabilitation Maintenance and Temporary Total Disability, FMLA periods, special leaves of absence with job to be saved periods, and any period preceding reinstatement by the Civil Service Commission following a termination appeal. c. DROP is established effective April 1, 1997. DROP provides an alternative form of benefit accrual while allowing an eligible Member to continue working for City. During the DROP period, a DROP participant retains all rights, privileges and benefits of being an active City employee, except as specifically modified in Chapter 2, Article 4, Division 14 of the Municipal Code, and is subject to the same terms and conditions of employment including disciplinary actions up to and including termination. The Member continues to be eligible for the active employee Flex Benefits Plan for the classification and is not eligible for “Retiree” Health Benefits until such time as the Member completes or terminates the DROP period. Under DROP, a monthly service retirement allowance along with any COLA increases, Supplemental Benefit checks and any adjustments to such payments applicable to retirements effective on the date the Member entered DROP, are credited to the Member’s DROP Account in the SDCERS Trust Fund. These SDCERS benefits are calculated as if the Member were retiring on the date the Member enters the DROP. The Member’s contributions to the Retirement System cease. The Member and City each contribute 3.05% of the Member’s Base Compensation, as defined in Municipal Code section 24.0103, salary each pay period that the Member participates in the DROP. The Member’s contribution is made on a pre- pre-tax basis pursuant to IRC section 414(h)(2). These employee and employer contributions are credited to the Member’s DROP Account and are distributed to the DROP participant upon termination of employment. No withdrawals may be made from the DROP account until the Member terminates City employment. Interest is credited to the Member’s DROP Account at a rate determined by the SDCERS Board. The Member is 100% vested in their his or her DROP Account at all times. 1. A DROP participant who becomes disabled may apply for conversion of their his or her deferred retirement allowance to a disability retirement allowance calculated at the date of entry into DROP, and the employee shall retain all of the DROP and matching contributions. A Member who participates in DROP irrevocably designates a specific consecutive period of months for participation, not to exceed sixty months. The Member must terminate City service at the end of the designated period. 2. After the Member terminates City employment, the DROP account will be distributed as a lump sum, or in any other manner permitted by the IRS. d. For retirements effective on or after January 1, 1997, the 50% continuance is available to the spouse to whom the Member was married on the date of retirement. The requirement that the Member be married to their his or her spouse at least one year prior to retirement for the spouse to receive the 50% continuance is eliminated. e. The surviving spouse of a Member who is killed while in the performance of duty is entitled to continued health coverage as provided in California Labor Code section 4856. f. The modified special death benefit provided to the surviving spouse of a Member killed in the line of duty is amended to eliminate the requirement that the benefit be discontinued if the spouse remarries. Any benefit terminated to such spouse as a result of remarriage shall be reinstated effective January 1, 1997. g. A retirement allowance cap of 90% of Final Compensation, as defined in Municipal Code section 24.0103, (high one-year salary) is established for eligible Fire Safety Members. h. This paragraph has been left in the MOU for historical purposes only and has no force and effect during the term of this MOU. City and Local 145 agree to jointly support a request to the SDCERS Board to pay 0.49% of the employee’s contribution from SDCERS’ undistributed earnings effective July 1, 1998. This 0.49% represents a portion of the increase in employee’s contribution scheduled to go into effect July1, 1998, as a result of benefit improvements, which were implemented January 1, 1997.

1997 Benefit Changes. a. The Disability Income Offset provision is eliminated. There will be no reduction of retirement benefits if the retiree has other income. b. A five-year purchase of service credit provision is established effective January 1, 1997. Under this provision, the eligible members may purchase up to five years of service credit by paying both employee and employer contributions in an amount and manner determined by the SDCERS Board to make the Retirement System whole for such time. In addition, eligible members retiring on or after January 1, 1997, may purchase probationary periods, Military and Veterans Code leaves, waiting periods for the 1981 Pension Plan, actual time worked hourly or part-time, SLOWP occurring prior to January 1, 1997, the difference in time between part time and full-time prior to January 1, 1997, LTD, Vocational Rehabilitation Maintenance and Temporary Total Disability, FMLA periods, special leaves of absence with job to be saved periods, and any period preceding reinstatement by the Civil Service Commission following a termination appeal. c. DROP is established effective April 1, 1997. DROP provides an alternative form of benefit accrual while allowing an eligible Member to continue working for City. During the DROP period, a DROP participant retains all rights, privileges and benefits of being an active City employee, except as specifically modified in Chapter 2, Article 4, Division 14 of the Municipal Code, and is subject to the same terms and conditions of employment including disciplinary actions up to and including termination. The Member continues to be eligible for the active employee Flex Benefits Plan for the classification and is not eligible for “Retiree” Health Benefits until such time as the Member completes or terminates the DROP period. Under DROP, a monthly service retirement allowance along with any COLA increases, Supplemental Benefit checks and any adjustments to such payments applicable to retirements effective on the date the Member entered DROP, are credited to the Member’s DROP Account in the SDCERS Trust Fund. These SDCERS benefits are calculated as if the Member were retiring on the date the Member enters the DROP. The Member’s contributions to the Retirement System cease. The Member and City each contribute 3.05% of the Member’s Base Compensation, as defined in Municipal Code section 24.0103, each pay period that the Member participates in the DROP. The Member’s contribution is made on a pre- tax basis pursuant to IRC section 414(h)(2). These employee and employer contributions are credited to the Member’s DROP Account and are distributed to the DROP participant upon termination of employment. No withdrawals may be made from the DROP account until the Member terminates City employment. Interest is credited to the Member’s DROP Account at a rate determined by the SDCERS Board. The Member is 100% vested in their DROP Account at all times. 1. A DROP participant who becomes disabled may apply for conversion of their deferred retirement allowance to a disability retirement allowance calculated at the date of entry into DROP, and the employee shall retain all of the DROP and matching contributions. A Member who participates in DROP irrevocably designates a specific consecutive period of months for participation, not to exceed sixty months. The Member must terminate City service at the end of the designated period. 2. After the Member terminates City employment, the DROP account will be distributed as a lump sum, or in any other manner permitted by the IRS. d. For retirements effective on or after January 1, 1997, the 50% continuance is available to the spouse to whom the Member was married on the date of retirement. The requirement that the Member be married to their spouse at least one year prior to retirement for the spouse to receive the 50% continuance is eliminated. e. The surviving spouse of a Member who is killed while in the performance of duty is entitled to continued health coverage as provided in California Labor Code section 4856. f. The modified special death benefit provided to the surviving spouse of a Member killed in the line of duty is amended to eliminate the requirement that the benefit be discontinued if the spouse remarries. Any benefit terminated to such spouse as a result of remarriage shall be reinstated effective January 1, 1997. g. A retirement allowance cap of 90% of Final Compensation, as defined in Municipal Code section 24.0103, is established for eligible Fire Safety Members. h. This paragraph has been left in the MOU for historical purposes only and has no force and effect during the term of this MOU. City and Local 145 agree to jointly support a request to the SDCERS Board to pay 0.49% of the employee’s contribution from SDCERS’ undistributed earnings effective July 1, 1998. This 0.49% represents a portion of the increase in employee’s contribution scheduled to go into effect July1, 1998, as a result of benefit improvements, which were implemented January 1, 1997.

1997 Benefit Changes. a. The Disability Income Offset provision is eliminated. There will be no reduction of retirement benefits if the retiree has other income. b. A five-year purchase of service credit provision is established effective January 1, 1997. Under this provision, the eligible members may purchase up to five years of service credit by paying both employee and employer contributions in an amount and manner determined by the SDCERS Board to make the Retirement System whole for such time. In addition, eligible members retiring on or after January 1, 1997, may purchase probationary periods, Military and Veterans Code leaves, waiting periods for the 1981 Pension Plan, actual time worked hourly or part-time, SLOWP occurring prior to January 1, 1997, the difference in time between part time and full-time prior to January 1, 1997, LTD, Vocational Rehabilitation Maintenance and Temporary Total Disability, FMLA periods, special leaves of absence with job to be saved periods, and any period preceding reinstatement by the Civil Service Commission following a termination appeal. c. DROP is established effective April 1, 1997. DROP provides an alternative form of benefit accrual while allowing an eligible Member to continue working for City. During the DROP period, a DROP participant retains all rights, privileges and benefits of being an active City employee, except as specifically modified in Chapter 2, Article 4, Division 14 of the Municipal Code, and is subject to the same terms and conditions of employment including disciplinary actions up to and including termination. The Member continues to be eligible for the active employee Flex Benefits Plan for the classification and is not eligible for “Retiree” Health Benefits until such time as the Member completes or terminates the DROP period. Under DROP, a monthly service retirement allowance along with any COLA increases, Supplemental Benefit checks and any adjustments to such payments applicable to retirements effective on the date the Member entered DROP, are credited to the Member’s DROP Account in the SDCERS Trust Fund. These SDCERS benefits are calculated as if the Member were retiring on the date the Member enters the DROP. The Member’s contributions to the Retirement System cease. The Member and City each contribute 3.05% of the Member’s Base Compensation, as defined in Municipal Code section 24.0103, each pay period that the Member participates in the DROP. The Member’s contribution is made on a pre- pre-tax basis pursuant to IRC section 414(h)(2). These employee and employer contributions are credited to the Member’s DROP Account and are distributed to the DROP participant upon termination of employment. No withdrawals may be made from the DROP account until the Member terminates City employment. Interest is credited to the Member’s DROP Account at a rate determined by the SDCERS Board. The Member is 100% vested in their DROP Account at all times. 1. A DROP participant who becomes disabled may apply for conversion of their deferred retirement allowance to a disability retirement allowance calculated at the date of entry into DROP, and the employee shall retain all of the DROP and matching contributions. A Member who participates in DROP irrevocably designates a specific consecutive period of months for participation, not to exceed sixty months. The Member must terminate City service at the end of the designated period. 2. After the Member terminates City employment, the DROP account will be distributed as a lump sum, or in any other manner permitted by the IRS. d. For retirements effective on or after January 1, 1997, the 50% continuance is available to the spouse to whom the Member was married on the date of retirement. The requirement that the Member be married to their spouse at least one year prior to retirement for the spouse to receive the 50% continuance is eliminated. e. The surviving spouse of a Member who is killed while in the performance of duty is entitled to continued health coverage as provided in California Labor Code section 4856. f. The modified special death benefit provided to the surviving spouse of a Member killed in the line of duty is amended to eliminate the requirement that the benefit be discontinued if the spouse remarries. Any benefit terminated to such spouse as a result of remarriage shall be reinstated effective January 1, 1997. g. A retirement allowance cap of 90% of Final Compensation, as defined in Municipal Code section 24.0103, is established for eligible Fire Safety Members. h. This paragraph has been left in the MOU for historical purposes only and has no force and effect during the term of this MOU. City and Local 145 agree to jointly support a request to the SDCERS Board to pay 0.49% of the employee’s contribution from SDCERS’ undistributed earnings effective July 1, 1998. This 0.49% represents a portion of the increase in employee’s contribution scheduled to go into effect July1, 1998, as a result of benefit improvements, which were implemented January 1, 1997.