§ 54-153. Benefit other than on retirement.

(a)

Benefit on termination of service and on death after termination of service:

(1)

In the event that a participant's service is terminated prior to his normal retirement date and on or after the time his vested percentage is more than zero percent for any reason other than death, early retirement as described in section 54-151 hereof or disability retirement as described in section 54-152 hereof, he will be entitled to a monthly retirement income to commence on his normal retirement date, provided, his employee contributions remain in the plan. If the participant meets the requirements for early retirement as set forth in section 54-146(a)(11) after the date of his termination of service, the participant, if he so requests in writing and filed with the retirement committee, will be entitled to a monthly retirement income to commence on the first day of any month which is prior to the participant's normal retirement date and on or after the date on which he satisfies these requirements. Such monthly retirement income payable to a participant under the provisions of this section 54-153(a) shall be equal to:

a.

The product of his vested percentage at the date of his termination of service and his accrued benefit which he has accrued to the date of his termination of service. If the monthly retirement income is to commence prior to the participant's normal retirement date, the benefit in this subsection shall be multiplied by the applicable early retirement reduction factor, provided, however,

b.

If the participant had met the requirements for early retirement as set forth in section 54-151 hereof as of the date of his termination of service, the benefit computed in a. above will not be less than the monthly retirement income which can be provided by the single-sum value of the monthly early retirement income which would have been payable to the participant in accordance with the provisions of section 54-151 hereof if he had retired on the date of his termination of service, accumulated with interest from the date of his termination of service to the date as of which his monthly retirement income payments are to commence in accordance the provisions above.

All computations under this subsection (a)(1), and also under subsection (a)(3) below, shall be on the basis of the interest and mortality assumptions in effect on the date of the participant's termination of service.

(2)

The retirement income payable under subsection (a)(1) above will be payable on the first day of each month. The first payment will be made, if the participant shall then be living, on the date as of which the participant's retirement income payments are to commence as described in subsection (a)(1) above, in the normal form of payment, subject to the provisions of section 54-154 and further provided, the total payments made under this section shall not be less than the total contributions with interest.

(3)

In the event that the terminated participant dies prior to the date as of which retirement income payments are to commence as described above (without having received, in accordance with section 54-155, the value of the benefit in (a)(1) above), his spouse or designated beneficiary, if there is no spouse or the spouse so approves said designated beneficiary in writing, will receive the monthly retirement income, payable for ten years certain and life thereafter and beginning on the first day of the month coincident with, or next following, the date of the terminated participant's death, which can be provided by the single-sum value of the benefit determined in accordance with subsection (a)(1) above as of the date of the participant's death, provided, however, in lieu of payment of such benefit in the form of the monthly income described above, the single-sum value of such benefit may be paid on an actuarial equivalent basis to the participant's spouse or designated beneficiary in such other manner and form as the participant may elect and the retirement committee may approve. If the payment is made to a designated beneficiary other than the spouse then payment shall be made according to section 54-153(d).

(4)

The provisions of sections 54-149, 54-154, and 54-155 hereof are applicable to the benefits provided under this subsection (a) hereof.

(5)

Except as provided in section 54-150 with respect to normal retirement, section 54-151 with respect to early retirement, section 54-152 with respect to disability retirement and section 54-153(b) with respect to death, the participant whose service is terminated prior to the date as of which he has completed five years of credited service shall be entitled only to the return of his contributions with interest at five percent compounded annually to the first day of the month in which the date of termination of service occurs.

(6)

If a participant's service with the city is terminated while he is entitled to a retirement income described in section 54-153(a)(1) above and he subsequently reenters the service of the city, he will be entitled, upon such reentry to the credited service he had on the date of his termination of service in lieu of the benefits to which he was entitled on such date under subsection (a)(1); provided, however, that the monthly retirement income payable to such participant commencing at his normal retirement date shall not be less than the amount to which he was entitled under subsection (a)(1) prior to his reentry into the service of the city. Except as provided on section 54-152 hereof with respect to disability retirement and the following paragraph, any other participant will, on reentry into the service of the city (unless he has been on leave of absence), be treated as if he then first entered the service of the city.

(b)

Benefit payable in the event of death while in service on or prior to normal retirement date: If the service of the participant is terminated by reason of his death on or prior to his normal retirement date, there shall be payable to his spouse or his designated beneficiary if there is no spouse or if the spouse so approves said designated beneficiary in writing, as provided in section 54-146(a)(8) hereof, a monthly income beginning on the first day of the month coincident with or next following, the date of his death, which can be provided by subsection (1) below or subsection (2) below, whichever is greater, where:

(1)

Is the single-sum value of the participant's accrued benefit which he has accrued to the date of his death; provided, however, if the participant had met the requirements for early retirement as set forth in section 54-151 hereof, the single-sum value as used in this section shall not be less than the single-sum value of the early retirement benefit as set forth in section 54-151, which would have been payable if the participant had retired early on the date of his death; and

(2)

Is [i] or [ii], whichever, is smaller, where [i] is two times the basic compensation paid in the plan year preceding the date of death, and [ii] is 100 times the participant's anticipated monthly retirement income at the normal retirement date.

All computations shall be on the basis of the interest and mortality assumptions in effect on the date of the participant's death.

(c)

Benefit payable in event of death while in service after normal retirement date: If the service of a participant is terminated by reason of his death after his normal retirement date, there shall be payable to his spouse or his designated beneficiary if there is no spouse or if the spouse so approves such designated beneficiary in writing, as provided in section 54-146(a)(8) hereof, a monthly income beginning on the first day of the month coincident with, or next following, the date of his death, which can be provided on an actuarial equivalent basis by the single-sum value of the late retirement income computed as of the participant's date of death in accordance with section 54-150(b)(2).

(d)

Manner of payment of death benefits: The normal form of payment of the death benefit provided in sections (b) and (c) above is a monthly income payable for ten years certain and life thereafter which provides monthly income payments payable for the life of the beneficiary and further provides that, in the event of such beneficiary's death within a period of ten years after the participant's death, the same monthly amount shall be continued for the remainder of such ten-year period.

In lieu of payment of such benefit in the form of monthly income described above, the single-sum value of such benefit may be paid on an actuarial equivalent basis to the participant's designated beneficiary in such other manner and form as the participant may elect and the retirement committee may approve; provided, however, the death benefit payable to a designated beneficiary other than the spouse shall be paid as set forth below.

A participant is eligible for the death benefit upon becoming eligible to participate in the plan. Under the terms of subsection (b) above there is no election to be made on the part of a participant to receive the death benefit. Also the death benefit payable under the terms of the plan is always greater than the pre-retirement survivor annuity benefit. The single-sum value of the death benefit computed under subsection (b) at the date of death is converted into a monthly income payable to the spouse or the designated beneficiary. For terminated participants the vested accrued benefit at the date of termination is converted into the single-sum value of such benefit at the date of death and this amount is converted into a monthly income payable to the spouse or the designated beneficiary.

The term "preretirement survivor annuity" shall mean an annuity payable to the participant's spouse or designated beneficiary as set forth in this section.

The payment of the death benefit under the plan on behalf of any participant will:

(1)

a.

Be distributed to him not later than the required distribution date (as defined in subsection (d)(3) below:

b.

Be distributed to him commencing not later than the required distribution date in accordance with regulations prescribed by the secretary of the treasury:

(i)

Over the life of the participant or over the lives of the participant and his designated beneficiary; or

(ii)

Over a period not extending beyond the life expectancy of the participant or the life expectancy of the participant and his designated beneficiary.

(2)

a.

If the participant dies after distribution to him has commenced but before his entire interest in the plan has been distributed to him, then the remaining portion of that interest will be distributed at least as rapidly as under the method of distribution being used under the plan at the date of his death.

b.

If the participant dies before distribution to him has commenced, then, except as provided in subsections (2)c and (2)d, his entire interest in the plan shall be distributed within five years after his death.

c.

Notwithstanding the provisions of subsection (2)b, if the participant dies before distribution to him has commenced and if any portion of his interest in the plan is payable:

(i)

To or for the benefit of a designated beneficiary;

(ii)

In accordance with regulations prescribed by the secretary of the treasury over the life of the designated beneficiary or over a period not extending beyond the life expectancy of the designated beneficiary; and

(iii)

Beginning not later than one year after the date of the participant's death or such later date as the secretary of the treasury may prescribe by regulations;

then the portion of his interest referred to in this subsection (2)c shall be treated as distributed on the date on which such distributions begin.

d.

Notwithstanding the provisions of subsections (2)b and (2)c, if the designated beneficiary referred to in subsection (2)c is the spouse of the participant, then:

1.

The date on which the distributions are required to begin under subsection (2)c.(iii) shall not be earlier than the date on which the participant would have attained age 70½; and

2.

If the spouse dies before the distributions to that spouse begin, then this paragraph (2)(d) shall be applied as if the spouse were the participant.

(3)

For purposes of this paragraph, the required distribution date means April 1 ^st of the calendar year following the later of (i) the calendar year in which the participant attains age 70½, or (ii) the calendar year in which he leaves the employ of the city, unless he is a five percent owner (as defined in section 416 (i)(1)(B) of the Code) of the city at any time during the five plan year period ending in the calendar year in which he attains age 70½, in which case clause (ii) shall not apply. In the case of a participant who becomes a five percent owner during any subsequent plan year, the required distribution date shall be April 1 of the calendar year following the calendar year in which the subsequent plan year ends.

(4)

For purposes of this paragraph, the term designated "beneficiary" shall have the same meaning as the term has with respect to section 401(a)(9) of the Internal Revenue Code of 1986 and amendments thereto, and regulations promulgated thereunder.

(5)

For purposes of this paragraph, the life expectancy of a participant and his spouse may be redetermined, but not more frequently than annually, provided, however, that this subparagraph (5) shall not apply in the case of a life annuity.

(6)

No participant shall receive a distribution under circumstances that would impose an additional tax on such distribution pursuant to section 72(t) of the Code unless and until that individual is notified, in writing, by the retirement committee of the tax and the individual, in writing delivered to the retirement committee, acknowledges receipt of the notification and nevertheless requests the distribution.

(Ord. No. 2003-27, § 1, 7-15-03)