§ 54-148. Participant's contribution accounts.

(a)

Mandatory participant contributions.

Each participant will contribute toward the cost of the plan an amount equal to seven and five-tenths percent of the participant's basic compensation commencing with the pay period beginning October 5, 2009. These contributions will be deposited in a participant contribution account.

Each participant shall continue to contribute to the plan until the applicable following date:

(1)

The date the participant retires under the early, normal or late retirement provisions of the plan;

(2)

The date of death of the participant;

(3)

The date of disability of the participant; or

(4)

The date of termination of service.

The participant's contributions made on or after October 1, 2003 shall be credited with interest at the rate of five percent, compounded annually on a plan year basis, from the October 1st next following the date on which such contributions were made to the first of the month in which the date of his termination of service occurs.

If a terminated participant who is vested elects to withdraw his contributions prior to the participant's normal retirement date, the participant will be entitled only to a return of his participant contribution account, in lieu of all other benefits payable under the plan. Contributions cannot be withdrawn while a participant remains in the service of the city or after the payment of benefits under the plan has commenced.

Effective October 1, 2003 the mandatory contributions made by all participants shall be designated as city contributions pursuant to section 414(h) of the Internal Revenue Code of 1986 and amendments thereto. The "pick up" by the city of a participant's contribution which meets the requirements of section 414(h) shall be considered employee contributions for the purposes of the plan. Also, such "pick up" contributions shall not be used to reduce the city's obligation to maintain the plan on a sound actuarial basis, as specified in the actuary's valuation reports for the applicable periods of time.

(b)

Voluntary participant contributions.

Each employee shall have the right to elect to make voluntary employee contributions up to ten percent of his basic compensation. The employee shall elect these contributions in one percent increments on a form designated by the retirement committee.

The voluntary employee contributions shall be deposited to a voluntary employee contribution account. If the employee was making voluntary employee contributions under the provisions of the superseded plan the amount in this account will be transferred to the plan and any voluntary employee contributions made subsequent to October 1, 2003 shall be deposited into this account.

As of September 30 of each plan year the amount in the voluntary employee contribution account shall be adjusted first for any requested refunds and the remaining balance shall be credited with the calculated trust fund earnings. Any voluntary contributions made during the plan year shall then be added to the voluntary employee contribution account.

An employee may request a refund from his account in an amount not exceeding the total of his voluntary contributions with investment gains or losses at the time of such request. This request must be made to the retirement committee on a form supplied by the retirement committee.

If an employee has received a withdrawal from his voluntary employee contribution account in a plan year, such employee may request a second withdrawal from his voluntary employee contribution account in the same plan year, provided that the total amount withdrawn does not exceed the total of his voluntary employee contribution account, and provided further that the request for a second withdrawal is for purpose of a financial hardship, as defined as follows:

(1)

Medical expenses incurred by the employee or his spouse, children or dependents; or

(2)

Purchase, excluding mortgage payments, of a principal residence for the employee; or

(3)

Financial expenses for the employee's spouse, children or dependents; or

(4)

Payment of tuition for the next semester or quarter of post secondary education for the employee or his spouse, children or dependents; or

(5)

Need to prevent eviction of the employee from his principal residence or foreclosure on the mortgage of the employee's principal residence.

The request for withdrawal based on financial hardship shall be presented in detail in writing for the retirement committee's approval.

An employee who makes a second withdrawal of all or any part of his voluntary employee contribution account will be considered to have discontinued further voluntary contributions effective on the date of his withdrawal request. Such employee cannot make voluntary contributions until the October 1 following one year from the date of the employee's second request.

As of October 1, January 1, April 1 and July 1, an employee may select a new voluntary contribution rate subject to the procedures established by the retirement committee, provided such new election is in writing on a form established by the retirement committee. An employee cannot make separate contributions to the plan. If at any time an employee should wish to cease making voluntary contributions, a written request must be presented to the retirement committee for approval.

(Ord. No. 2003-27, § 1, 7-15-03; Ord. No. 2007-6, § 2, 2-27-07; Ord. No. 2009-18, § 1, 9-22-09)