Columbia Retirement by reason of age or service ordinance (§ 18-42)

(a) A covered police employee shall be eligible to receive retirement benefits upon reaching the age of sixtyfive (65) or upon having completed twenty (20) years of active service without regard to age. For purposes of this section and eligibility to retire after having completed twenty (20) years of active service without regard to age, active service shall include military leave which qualifies under the Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. 4301, et seq.) as now enacted, or hereafter amended (USERRA), only to the extent any contributions required under section 18-40 of this Code are made to the police retirement fund either during the period of qualified military service under USERRA or within five (5) years from the date of reemployment.

(b) A former covered police employee shall be eligible to receive retirement benefits upon reaching the age of sixty-five (65).

(c) The administrator shall pay to a retiree, retired on account of age or service, retirement benefits determined by subsections (1) or (2) below. The plan benefits of subsection (1) below apply to employees hired after October 1, 1991 and employees employed on October 1, 1991 who elected the benefits of subsection (1). The plan benefits of subsection (2) below apply to employees employed on October 1, 1991 who elected the benefits of subsection (2).

(1) A retiree retired due to age or service shall receive three (3) percent of highest average salary per year of covered employment up to twenty (20) years. For each year of service in covered employment over twenty (20), the retiree shall receive an additional two (2) percent of highest average salary per

year, up to a maximum of seventy (70) percent for twenty-five (25) years of service. This benefit shall continue for life. In the first month of each plan year, the retirement benefit shall be increased by six tenths (0.6) percent (i.e. annual compound COLA).

(2) A retiree covered under this option of the plan shall receive, up to age sixty-two (62), three (3) percent of highest average salary per year of covered employment up to twenty (20) years. For each year of service in covered employment over twenty (20), the retiree shall receive an additional two (2) percent of highest average salary per year, up to a maximum of seventy (70) percent for twenty-five

(25) years of service. In addition, a covered police employee retiring prior to age sixty-two (62) according to the eligibility requirements of this plan shall receive an increase in the first month of each plan year after retirement of two (2) percent of the retirement benefits per year up to age sixtytwo (62). After age sixty-two (62), all employees retired under this option shall receive two and twenty hundredths (2.20) percent of the highest average salary times the number of years of continuous service up to twenty (20) years. For each year over twenty (20), one and seventy hundredths (1.70) percent of highest average salary is added. The maximum benefit is fifty-two and five tenths (52.5) percent of highest average salary with twenty-five (25) years of continuous service. The benefit calculated at age sixty-two (62) is then increased by two (2) percent for each year from retirement to age sixty-one (61). The benefits calculated at age sixty-two (62) shall be increased each future year of retirement by two (2) percent. The benefit calculated at age sixty-two (62) is then payable from age sixty-two (62) and increased in each future year by two (2) percent of the preceding year's benefit amount.

(d) Upon approval of any application for benefits by the administrator, the applicant shall be entitled to receive monthly benefit payments beginning on the last day of the month immediately following the month in which employment ends.

(e) If, when a covered police employee's employment is terminated, the reserve value of the employee's retirement benefits is less than five thousand dollars ($5,000.00), the administrator shall pay the employee the amount of the reserve value in a single lump sum payment. "Reserve value" is the actuarial equivalent of the pension benefits the covered police employee would otherwise be eligible to receive under the police retirement plan. The single lump sum payment shall be made as soon as possible after employment is terminated and shall be in lieu of all other retirement benefits otherwise due the employee under the police retirement plan. The single lump sum payment shall be a complete discharge of all liabilities of the police retirement fund to the employee. This subsection shall not apply to covered police employees who retire on disability.

(f) In accordance with the requirements of subsection 401(a)(9) of the Code, distribution of retirement benefits under this section shall begin no later than April 1 of the year in which the retiree either attains age seventy and one-half (70½) or retires, whichever is later. Any distribution options in the police retirement plan inconsistent with the provisions of section 401(a)(9) of the Code are overridden by the provisions of the Code.