Title 03 Administration and Personnel
Chapter 03.05 Spokane Employees' Retirement System
Section 03.05.166 Allowance on Service Retirement, Tier 3
The provisions of this section govern the retirement benefits of members with eligibility described in SMC 3.05.025(C) and who elect to retire under Tier 3.
-
Normal Retirement Benefit.
-
A member’s annual normal retirement benefit is determined by multiplying two percent (2%) of the member’s final compensation by the member’s years of creditable service exclusive of qualified military service, and a benefit 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 defined and provided for in this chapter. In no case can the normal retirement benefit exceed seventy percent (70%) of final compensation.
-
A member shall be eligible to receive annual normal retirement benefits on or after the member’s normal retirement date under SMC 3.05.130(C), 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 Benefit.
A member’s annual accrued retirement benefit is determined for any date by multiplying two percent (2%) of the member’s final compensation by the member’s years of credited service. In no case can the annual accrued retirement benefit exceed seventy percent (70%) of the member’s final compensation.
-
Vested Benefit.
Any member who terminates active employment with the City will be eligible to receive a service retirement allowance at the member’s normal retirement date under SMC 3.05.130(C), provided that at time of termination, the member both:
-
has at least seven (7) 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 Benefit.
A member may retire before the member’s normal retirement date under SMC 3.05.130(C) if the member has, as of the desired retirement date, satisfied all of the following requirements (“Rule of 80”):
-
The member has attained a minimum age of fifty (50);
-
the member has at least seven (7) years of City service;
-
the sum of the member’s age and years of City service total at least eighty (80);
-
the member has applied for retirement; and
-
the member has terminated active employment with the City .
-
Solely for purposes of the “Rule of 80” in the preceding sentence, City service for part-time employees will be determined pursuant to regulations established by the board. An active member may also retire on or after having attained the member’s normal retirement date under SMC 3.05.130(C). In either case the member must apply for retirement benefits under SMC 3.05.130(A) and terminate active employment with the City.
-
Payment of Benefits.
After retirement, benefits will be payable throughout the remainder of the member’s lifetime. However, if a member dies before the total of the retirement benefits 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 benefit in accordance with SMC 3.05.210, an amount equal to the difference between the retirement benefits paid and the member’s accumulated contributions at the time of retirement will be paid to the member’s beneficiary.
Date Passed: Monday, January 8, 2018
Effective Date: Wednesday, February 21, 2018
ORD C35574 Section 12