(1)If
a police officer quits or is discharged before his or her normal or early
retirement date, the officer may request and receive as a lump-sum payment
an amount equal to the retirement value of his or her employee account as
determined at the valuation date preceding his or her termination of employment.
Such police officer, if vested, shall also receive a deferred pension benefit
in an amount purchased or provided by the retirement value at the date of
retirement. The retirement value at such retirement date shall consist of
the accumulated value of the police officer's employee account, as reduced
by any lump-sum distributions received prior to retirement, together with
a vested percentage of the accumulated value of the police officer's employer
account at the date of retirement.
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(1) If
a police officer quits or is discharged before his or her normal or early
retirement date, the officer may request and receive as a lump-sum payment
an amount equal to the retirement value of his or her employee account as
determined at the valuation date preceding his or her termination of employment.
Such police officer, if vested, shall also receive a deferred pension benefit
in an amount purchased or provided by the retirement value at the date of
retirement. The retirement value at such retirement date shall consist of
the accumulated value of the police officer's employee account, as reduced
by any lump-sum distributions received prior to retirement, together with
a vested percentage of the accumulated value of the police officer's employer
account at the date of retirement.
(2) Until July 1, 2012, the vesting
schedule shall be as follows:
(a) If the terminated police
officer has been a member of the retirement system
for less than four years, such vesting shall be nil;
(b) If the terminating officer
has been a member of the paid department of the city of the first class for
at least four years, such vesting percentage shall be forty percent. Such
vesting percentage shall be fifty percent after five years, sixty percent
after six years, seventy percent after seven years, eighty percent after eight
years, ninety percent after nine years, and one hundred percent after ten
years; and
(c) All police officers shall
be one hundred percent vested upon attainment of age sixty while employed
by the city as a police officer.
(3) Beginning
July 1, 2012, the vesting schedule shall be as follows:
(a) If the
terminated police officer has been a member of the retirement system for less
than two years, such vesting shall be nil;
(b) If the terminating officer has been
a member of the paid department of the city of the first class for at least
two years, such vesting percentage shall be forty percent. Such vesting percentage
shall be sixty percent after four years, eighty percent after five years,
and one hundred percent after seven years; and
(c) All police officers
shall be one hundred percent vested upon attainment of age sixty while employed
by the city as a police officer.
(4) The deferred pension benefit
shall be payable on the first of the month immediately following the police
officer's sixtieth birthday. At the option of the terminating police officer,
such pension benefit may be paid as of the first of the month after such police
officer attains the age of fifty-five. Such election may be made by the police
officer any time prior to the payment of the pension benefits. The deferred
pension benefit shall be paid in the form of the benefit options specified
in subsection (1) of section 16-1007 as elected by the police officer. If
the police officer's vested retirement value at the date of his or her termination
of employment is less than three thousand five hundred dollars, the city may
elect to pay such police officer his or her vested retirement value in the
form of a single lump-sum payment.
(5)
A police officer may elect upon his or her termination of employment
to receive his or her vested retirement value in the form of a single lump-sum
payment.
(6) Upon
any lump-sum payment of a terminating police officer's retirement value under
this section, such police officer will not be entitled to any deferred pension
benefit and the city and the retirement system shall have no further obligation
to pay such police officer or his or her beneficiaries any benefits under the Police Officers Retirement Act.
(7) If
the terminating police officer is not credited with one hundred percent of
his or her employer account, the nonvested portion of the account shall be
forfeited and first used to meet the expense charges incurred by the city
in connection with administering the retirement system and the remainder shall then be used
to reduce the city contribution which would otherwise be required to fund
pension benefits.