ARTICLE 22 RETIREMENT SYSTEMS - Baltimore City …

ARTICLE 22 RETIREMENT SYSTEMS

(As Last Amended by Ord. 16-503)

Published by BALTIMORE CITY DEPARTMENT OF LEGISLATIVE REFERENCE

Avery Aisenstark, Director 2016

09/12/16

Copyright ? 2016 The Mayor and City Council of Baltimore

Department of Legislative Reference

All rights reserved

For information ? call, write, or fax: Department of Legislative Reference

626 City Hall Baltimore, Maryland 21202 Tel: (410) 396-4730 F Fax: (410) 396-8483

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TABLE OF SUBTITLES

Employees' Retirement System Elected Officials' Retirement System Fire and Police Employees' Retirement System Contractual Provisions Investment Advisors Police Department, Special Fund General Provisions

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TABLE OF SECTIONS

EMPLOYEES' RETIREMENT SYSTEM

? 1. Definitions. ? 2. Name and date operative. ? 3. Membership. ? 4. Service creditable. ? 5. Administration; Board of Trustees. ? 6. Benefits. ? 7. Management of funds. ? 8. Method of financing. ? 9. Class C membership. ? 9.1. Election between plans. ? 9.2. Class D membership. ? 10. Guaranty. ? 11. Exemption from assignment and execution. ? 12. Recovery of overpayments. ? 13. Limitation of other statutes. ? 14. Social Security Act. ? 15. Administrative appeal; Judicial review. ? 16. Additional opportunity for Class A and Class B

members to obtain credit. ? 17. Post-retirement benefit increases to certain retirees

and beneficiaries. ? 17.1. Post-retirement benefit increases ... before

July 1, 2007. ? 17.2. Post-retirement benefit increases ... on or after

July 1, 2007. ? 17.3. Post-retirement benefit increases for Class D

members.

ELECTED OFFICIALS' RETIREMENT SYSTEM

? 17A. Definitions. ? 18. Name and date operative. ? 19. Membership. ? 20. Military service creditable. ? 21. Board of Trustees. ? 22. Benefits. ? 23. Management of Funds. ? 24. Method of financing. ? 25. Exemption from assignment and execution. ? 26. Appeal and judicial review. ?? 27 - 28. {Vacant}

FIRE AND POLICE EMPLOYEES' RETIREMENT SYSTEM

? 29. Name and date operative. ? 30. Definitions. ? 31. Membership. ? 32. Service creditable. ? 33. Administration. ? 34. Benefits. ? 34.1. Benefit payments. ? 35. Management of Funds. ? 36. Method of financing. ? 36A. Post-retirement benefit increases to certain retirees

and beneficiaries. ? 36B. Deferred Retirement Option Plan. ? 36C. Deferred Retirement Option Plan 2. ? 37. Guaranty. ? 38. Exemption from assignment and execution. ? 39. Protection against fraud; validating overpayments. ? 40. Limitation of other statutes. ? 41. Hearings. ? 41A. Subpoena powers.

CONTRACTUAL PROVISIONS

? 42. Contractual relationship.

INVESTMENT ADVISORS

? 43. Employment; duties.

POLICE DEPARTMENT, SPECIAL FUND

? 44. Widows' benefits. ? 45. Military service credit.

GENERAL PROVISIONS

? 46. Scope of subtitle. ? 47. Definitions. ? 48. Contemporaneous benefits from 2 or more City

systems.

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RETIREMENT SYSTEMS

ART. 22, ? 1

EMPLOYEES' RETIREMENT SYSTEM

? 1. Definitions.

(1) Retirement System.

"Retirement System" shall mean the Employees' Retirement System of the City of Baltimore as defined in ? 2 of this subtitle.

(2) Employee.

(i) In general.

"Employee" means, except as provided in subparagraph (ii) of this paragraph, any of the following:

(A) any permanent officer or employee of the Mayor and City Council of Baltimore, including any officer or employee of an agency, department, unit, subdivision, or instrumentality of the Mayor and City Council;

(B) any permanent officer or employee, by whatever authority appointed, whose salary or compensation is paid by the Mayor and City Council of Baltimore, except when the City acts only as an agent for the convenience of disbursing payroll funds;

(C) any employee of the Baltimore City Public School System who is not eligible to participate in the Maryland State Retirement and Pension System;

(D) any employee of the Maryland Department of Public Safety and Correctional Services who:

1. was a City employee working at the Baltimore City Jail when the State assumed administration of the Jail in July 1991; and

2. on becoming a State employee, elected to remain a member of this System;

(E) any employee of the Baltimore Museum of Art or of the Walters Art Museum who was employed by either museum on or before June 30, 2014, except that, after termination of that employment, if the employee is rehired on or after July 1, 2014, the employee no longer is an "employee" for purposes of this subtitle; and

(F) the State's Attorney for Baltimore City.

(ii) Exclusions.

"Employee" does not include:

(A) any "elected official", as defined in ? 17A(2) of this article for purposes of membership in the Elected Officials' Retirement System of the City of Baltimore; or

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ART. 22, ? 1

BALTIMORE CITY CODE

(B) any "employee", as defined in ? 30(2) of this article for purposes of membership in the Fire and Police Employees' Retirement System of the City of Baltimore.

(iii) In cases of doubt.

(A) In all cases of doubt, the Board of Trustees determines who is an "employee" under this subtitle.

(B) A determination by the Board under this subparagraph is final and binding on all persons, subject to the rights of appeal and review under ? 15 of this subtitle.

(3) Member.

"Member" shall mean any person included in the membership of the system as provided in ?? 3 and 9 of this subtitle.

(4) Board of Trustees.

"Board of Trustees" shall mean the Board, provided in ? 5 of this subtitle, to administer the Retirement System.

(5) {Vacant}

(6) Service.

"Service" shall mean service as an employee as described in paragraph (2) of this section, and paid for by the City of Baltimore, while a member of the Employees' Retirement System; and any service purchased, repurchased or transferred, by appropriate deposit or redeposit of funds, plus interest, to cover such periods, or any service credited under any other section of this subtitle and under Maryland State law.

(7) Prior service.

"Prior service" shall mean service rendered prior to January 1, 1926 for which credit is allowable under the provision of ? 4(a) of this subtitle, subject to the qualifications set forth in ? 4(d) of this subtitle.

(8) Beneficiary.

"Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance, or other benefit as provided by this subtitle.

(9) Regular interest.

(i) "Regular interest" means:

(A) for the accumulation of Class A or Class B member contributions, interest at 5.25% per year, compounded annually; and

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RETIREMENT SYSTEMS

ART. 22, ? 1

(B) for the accumulation of Class C or Class D member contributions, interest at 3% per year, compounded annually.

(ii) "Regular interest" for valuation purposes means:

(A) for fiscal years beginning on or before July 1, 2015:

1. 7.75% before benefit payments commence; and

2. 6.55% after benefit payments commence;

(B) for fiscal years beginning on July 1, 2016, and on July 1, 2017:

1. 7.5% before benefit payments commence; and

2. 6.5% after benefit payments commence; and

(C) for fiscal years beginning on or after July 1, 2018:

1. 7.0% before benefit payments commence; and

2. 6.5% after benefit payments commence.

(iii) "Regular interest" for the purpose of determining actuarial equivalents means interest at 4.5% per year, compounded annually.

(10) Accumulated contributions.

"Accumulated contributions" means the sum of all the amounts deducted from the earnable compensation of a member, and any other additional amounts contributed by the member as provided in this subtitle, together with regular interest as provided in paragraph (9) of this section and pursuant to the provisions of ?? 7, 8 and 9 of this subtitle.

(11) Average final compensation.

Average final compensation:

(i) For any member who terminates employment with the City prior to January 1, 1994, except as noted in subparagraphs (a) and (b) below, "average final compensation" shall mean the average annual earnable compensation for any period of 3 successive years of service during which his earnable compensation was highest; or if he had less than 3 years of service, then the average annual earnable compensation during his total years of service. "Earnable compensation" shall mean the annual salary authorized for the member. It shall not include overtime pay, differential pay, environmental pay, hazardous duty pay, pay for conversion of leave or other fringe benefits, or any like additional payments.

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Beginning with the 1st day of the 1st full pay period after July 1, 1975, the provisions of this paragraph shall apply to members who retired on or after April 19, 1974, up to and including June 30, 1975. However, no retroactive payments shall be made to members who retired before July 1, 1975.

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ART. 22, ? 1

BALTIMORE CITY CODE

Beginning July 1, 1975, the provisions of this paragraph shall apply to all members who retire on or after July 1, 1975.

(a) For members who retired during the period beginning with July 1, 1973, up to and including April 18, 1974, the term "average final compensation" shall be the same as is provided in paragraph (11)(i); however, no retroactive payments shall be made with respect to any period prior to the 1st day of the 1st full pay period after July 1, 1975. It is further provided with respect to members who retired during the period July 1, 1973, through April 18, 1974, inclusive, or their beneficiaries, that they shall receive the adjustment required under this paragraph to the extent that it exceeds the benefit provided under ? 6(n) and ? 6(o) of this article as amended from time to time.

(b) Beginning July 1, 1984, any member who retired between January 1, 1926 and April 18, 1974, or the member's beneficiary, shall have the retirement allowance portion of the total retirement benefit recalculated on the member's average final compensation as defined in ? 1(11)(i). The total difference between the average final compensation calculated at the time of retirement and the calculation based on average final compensation based on 3 years shall be added to the present annual allowance being received. However, no retroactive payments for any increases shall be made to eligible beneficiaries of deceased members and members retired before April 19, 1974.

(ii) For any member who is an employee on or after January 1, 1994, "average final compensation" means the average of the member's annual earnable compensation on January 1 for 3 successive years of service when the member's earnable compensation is the highest. If the member is in service on January 1 for less than 3 successive years, then average final compensation means the average annual earnable compensation during this total years of service. "Earnable compensation" means the annual salary authorized for the member. It does not include overtime pay, differential pay, environmental pay, hazardous duty pay, pay for conversion of leave or other fringe benefits, or any like additional payments.

(12) Annuity.

"Annuity" shall mean payments for life derived from the "accumulated contributions" of a member.

(13) Pensions.

"Pensions" shall mean payments for life derived from money provided by the City of Baltimore. It shall not include additional benefits provided under ?? 6(n) and 6(o) of this subtitle.

(13a) Payments; Retirement dates.

(i) All retirement allowances or other benefits that are calculated on an annual basis shall be payable for each month in a year. Payments shall be made in periodic installments, as determined from time to time by the Board of Trustees, and the monthly allowance shall be computed by dividing the annual allowance by 12.

(ii) All retirement dates for all Class A, B, C, and D members shall fall on the 1st of a month.

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