Title 03 Administration and Personne l
Chapter 03.05 Spokane Employees' Retirement System
Section 03.05.160 Allowance on Service Retirement, Tier 1
The provisions of this section govern the retirement bene fits of members with eligibility under SMC 3.05.025(A) and who elect to retire under Tier 1.
Normal Retirement Bene fit.
Subject to the minimum and maximum retirement bene fits described in this section, a member’s annual normal retirement bene fit is determine d by multiplying two and fifteen one -hundredths percent (2.15%) of the member’s final compensation by the member’s years of creditable service exclusive of qualified military service, and a bene fit purchased by the contributions of the City equal to one and two-thirds percent (1-2/3%) of the final compensation multiplied by the number of years of qualified military service, not to exceed five (5) years as this type of service is otherwise define d and provided for in this chapter. In no case can the normal retirement bene fit exceed sixty-four and five-tenths percent (64.5%) of final compensation.
A member shall be eligible to receive annual normal retirement bene fits on or after the member’s normal retirement date pursuant to 3.05.130(B) , provided the member has made application with the retirement system pursuant to 3.05.130(A) and has terminated active employment with the City.
Accrued Retirement Bene fit.
A member’s annual accrued retirement bene fit is determine d for any date by multiplying two and fifteen one -hundredths percent (2.15%) of the member’s final compensation by the member’s years of credited service. In no case can the annual accrued retirement bene fit exceed sixty-four and five-tenths percent (64.5%) of final compensation.
Vested Bene fit.
Any member who terminates active employment with the City will be eligible to receive a service retirement allowance at the age of fifty (50), provided at time of member’s termination, the member both:
has at least five (5) years of City service; and
elects to leave member’s accumulated contributions in the retirement system.
Every member desiring to take advantage of this vesting provision must file a request with the retirement system when terminating active employment.
Early Retirement.
A member may retire before the member’s normal retirement date under 3.05.130(B) if the member has, as of the desired retirement date, satisfied all of the following requirements:
the member has attaine d the age of fifty (50);
the member has completed five (5) years of City service;
the member has applied for early retirement; and
the member has terminated active employment with the City
Early Retirement Bene fit Calculation.
Early retirement bene fits are calculated in the same manne r as normal retirement bene fits.
Payment of Bene fits.
After retirement, normal or early retirement bene fits will be payable throughout the remainder of the member’s lifetime. However, if a member dies before the total of the retirement bene fits paid to the member equals the member’s accumulated contributions at the time of retirement, and if the member has not elected an optional form of retirement bene fit in accordance with SMC 3.05.210 , an amount equal to the difference between the retirement bene fits paid and the member’s accumulated contributions at the time of retirement will be paid to the member’s bene ficiary.
Ad Hoc Performance Adjustment.
The board is authorized to grant discretionary annual ad hoc performance adjustments effective July 1st of each fiscal year. The rate of the performance adjustment is determine d by the board based upon financial, actuarial, and other data and is limited to a maximum of a three percent (3%) adjustment in any given fiscal year. The adjustment is noncompounding and based upon a retiree’s original pension amount. The board has adopted a board rule which contains further information on the ne cessary criteria for ad hoc performance adjustments.
Date Passed: Monday, January 8, 2018
Effective Date: Wedne sday, February 21, 2018
ORD C35574 Section 10