Alternative Retirement System Sample Clauses

Alternative Retirement System. The City provides an alternate plan to the current Defined Benefit retirement plan under the Employees Retirement System. This alternative retirement plan shall have the following provisions: A. Employees hired into the bargaining unit before July 1, 1992. 1. Were given the option to transfer to the alternative retirement system between December 1, 1992 and May 31, 1993, and retire based on a formula of age plus service equals sixty-five (65) points to be eligible for post retirement health care pursuant to the vesting requirements as if the employee remained in the ERS. 2. Were given an option between December 1, 1992 and May 31, 1993, to elect to have the funded present value of their accrued benefits (as determined by the actuary) transferred in cash into the new Defined Contribution Money Purchase Plan. This was a one-time, one-way option. Additionally, existing employees shall retain the same post retirement health care as if they had remained in the ERS. B. Employees hired into the bargaining unit on or after July 1, 1992, shall not belong to the ERS, but shall instead belong to the City of Lansing's Defined Contribution Money Purchase Plan. Said plan shall provide five percent (5%) of eligible pay as a City contribution for each covered employee's retirement account, one percent (1%) [Effective July 1, 1999, the amount shall be increased to a total of 1.5%; effective January 1, 2000, the amount shall be increased to a total of 2.0%] of covered pay for the employee's account to defray post retirement health care premiums or, at the employee's sole option, to be combined with the retirement account at point of termination. Effective the first pay date on or after May 1, 2001, the five percent (5%) referenced above shall be modified to provide said plan with a total of six percent (6%) of eligible gross annual wages as the total City contribution for each covered employee’s retirement account. Effective the first pay date on or after May 1, 2001, the City’s contribution of two percent (2%) of covered pay to defray post retirement health care premiums shall be reduced to zero (0). Employees who terminate employment with the City prior to May 1, 2001 shall not be eligible for modifications to the retirement language that take effect on or after May 1, 2001. Employees shall be vested in the defined contribution plan (Defined Contribution Money Purchase Plan) at the completion of three (3) years' credited service. The City shall provide a long-term disabil...