§ 62-71. Definitions.

The following words, terms and phrases when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Accumulated contributions means the sum of all amounts deducted from the compensations of a member and credited to his individual account in the annuity savings fund, together with regular interest thereon.

Annuity means a monthly amount, derived from the accumulated contributions of a member, payable throughout the future life of a person.

Annuity reserve means the present value of all payments to be made in account of any annuity. The annuity reserve shall be computed upon the basis of such mortality table, and regular interest, as the board shall from time to time adopt.

Beneficiary means any person, except a retirant, who is in receipt of or who is designated to receive a pension, retirement allowance or other benefit, payable by the retirement system.

Board means the board of trustees provided for in this article.

Compensation for all members, except those general members represented by Local No. 139, United Steel Workers of America (DPW Employees) and except general members represented by Local No. 211, United Steel Workers of America (clerical employees) means the salary or wages paid a member for personal services rendered to the city, including:

(1)

Longevity pay;

(2)

Overtime pay;

(3)

Vacation pay and holiday pay while absent from work;

(4)

Sick-leave pay while absent from work;

(5)

Items of deferred compensation as provided by board rule and regulation; and

(6)

Items of a similar nature as provided by board rule.

(7)

Effective July 1, 1986, a retirement incentive will be paid to police command members who:

a.

Are presently eligible to retire if they retire before January 9, 1987;

b.

Are a sergeant and will become eligible to retire on or before June 30, 1989, if they retire not later than June 30, 1989;

c.

Will not become eligible to retire before June 30, 1989, if civilianization of dispatch is completed before July 1, 1989; or

d.

Were a sergeant on May 29, 1986, but before June 30, 1989, assumed duties of a higher rank if dispatch is civilianized before June 30, 1989.

(8)

Effective July 1, 1988, for general members represented by Local No. 203, United Steelworkers of America, compensation for retirement purposes shall include only regular, non-overtime wages, for hours actually worked, plus holiday and vacation pay.

(9)

Effective July 1, 2003, for General Members represented by Local No. 211 United Steel Workers of America (clerical employees), compensation for retirement purposes shall include only regular, non-overtime wages for hours actually worked plus holiday and vacation pay.

The term "compensation" shall not include:

(1)

Allowances for clothing, equipment, travel and similar items;

(2)

Reimbursement of expenses incurred;

(3)

Bonuses;

(4)

Termination or severance pay;

(5)

Payment in consideration of unused sick leave, vacation, compensatory time and other one-time lump-sum pay-outs made at the time of retirement or other separation from service (except as such pay-outs are explicitly included in "compensation" by another provision of this article);

(6)

The value of any fringe benefit not specifically included;

(7)

Salary, wages and other items which are the basis of benefits under another retirement program, except the federal old age, survivors, disability and health insurance program; and

(8)

Items of a similar nature as provided by board rule.

If a member's compensation is not all paid in money, the city council shall fix the monetary value of the portion of his compensation not paid in money.

Credited service means the total service credited a member to the extent provided in the retirement ordinance.

Final average compensation for a general member whose city employment from all positions covered by the retirement system last terminates on or after July 1, 1972, and for a police officer member or a firefighter member whose city employment from all positions covered by the retirement system last terminates on or after July 1, 1975, means 1/36 of the total amount of compensation paid the member during the period of 36 consecutive months of his credited service producing the highest total amount of compensation and contained within the 60 months of credited service immediately preceding the date his city employment last terminates from all positions covered by the retirement system. In the case of a firefighter member or police officer member the 36 months of credited service need not be consecutive, but must be in units of 12 consecutive months each. If a member has less than 36 months of credited service, final average compensation means the monthly average of the total compensation paid the member. Final average compensation, for a general member not included in a labor agreement whose city employment from all positions covered by the retirement system last terminates on or after July 1, 1995, means 1/24 of the total amount of compensation paid the member during the period of 24 months of his/her credited service producing the highest total amount of compensation and contained within the 60 months of credited service immediately preceding the date his/her city employment last terminates from all positions covered by the retirement system; the 24 months of credited service need not be consecutive, but must be in units of 12 consecutive months each.

Final average compensation, for a police chief, deputy police chief, fire chief or deputy fire chief not included in a labor agreement whose city employment from all positions covered by the retirement system last terminates on or after July 1, 1995, means 1/24 of the total amount of compensation paid the member during the period of 24 months of his/her credited service producing the highest total amount of compensation and contained within the 60 months of credited service immediately preceding the date his/her city employment last terminates from all positions covered by the retirement system; the 24 months of credited service need not be consecutive, but must be in units of 12 consecutive months each.

Final compensation means a member's monthly rate of compensation at the time his employment with the city last terminates.

Firefighter member means any member who holds the rank of firefighter, including probationary firefighter, or higher rank and who is an officer or employee in the fire department of the city. The term "firefighter member" shall not include:

(1)

Any person who is privately employed as a firefighter;

(2)

Any person who is temporarily employed as a firefighter for an emergency; and

(3)

Any civilian employee in the fire department.

General member means any member, except a police officer member or a firefighter member or a hospital member.

Hospital member means any member who is an officer or employee of the Alpena General Hospital.

Member means any person who is included in the membership of the retirement system.

Pension means monthly amount payable, from money provided by the city, throughout the future life of a person or for a temporary period as provided in this article.

Pension reserve means the present value of all payments to be made on account of any pension. The pension reserve shall be computed upon the basis of such mortality and other tables of experience, and regular interest, as the board shall from time to time adopt.

Police officer member means any member who holds the rank of patrolman, including probationary patrolman, or higher rank and who is an officer or employee in the police department of the city. The term "police officer member" shall not include:

(1)

Any person who is privately employed as a police officer;

(2)

Any person who is temporarily employed as a police officer for an emergency; and

(3)

Any civilian employee in the police department.

Regular interest means such rate or rates of interest per annum, compounded annually, as the board shall from time to time adopt.

Retirant means any member who retires with a pension or retirement allowance payable by the retirement system.

Retirement means a member's withdrawal from the employ of the city with a retirement allowance or pension payable by the retirement system.

Retirement allowance means the sum of the annuity and pension payable to a retirant or beneficiary.

Service means personal service to the city by an officer or employee of the city.

Voluntary retirement age means age 60 years for a general member and age 55 years for a police officer member or firefighter member; and effective July 1, 1986, a police patrol or police command member shall be eligible to retire upon completion of 30 years of service, regardless of age; and effective January 5, 1987, the police chief and deputy chief shall be eligible to retire upon completion of 30 years of service, regardless of age. Effective for the period June 1, 1988, through 5:00 p.m., July 13, 1988, general members represented by Local No. 203, United Steelworkers of America, shall be eligible to retire and receive full retirement benefits if the member has ten or more years of service with the city and if the sum of a member's age and years of service (excluding unpaid time off) exceed 85. Effective after 5:00 p.m., July 13, 1988, the term "voluntary retirement age" for general members represented by Local No. 203, United Steelworkers of America, shall mean age 60; and effective July 1, 1999, the term "voluntary retirement age" shall mean age 55 with 15 years of service or age 60 with ten years of service. Effective July 1, 1997, the term "voluntary retirement age" for a general member not included in a labor agreement shall mean age 60 with at least five years of service or age 55 with 15 years of service. Effective July 1, 2002, a police patrol member or police command member shall be eligible to retire upon twenty five (25) years of service regardless of age.

(Code 1971, § 24-39; Ord. No. 98-283, 3-16-98; Ord. No. 03-333, § 1, 2-3-03; Ord. No. 03-337, §§ 1, 2, 9-2-03; Ord. No. 09-391, § 1, 9-8-09; Ord. No. 11-417, § 1.A, 1-3-2012)

Cross reference

Definitions generally, § 1-2.