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(a) Minimum death benefit. Should a participant die before reaching normal retirement age and before completing five years of credited service, a death benefit equal to the contribution accumulation and vested city contributions on the date of death shall be paid to the surviving spouse or, if none, to the beneficiary.

(b) Preretirement survivor annuity for deferred vested participants. The surviving spouse of a deferred vested participant shall be eligible for either a lump sum payment equal to the participant's contribution accumulation and vested city contributions or a spouse's pension if the participant dies prior to the date the pension payments commence. The spouse's pension shall be a monthly benefit for the spouse's life equal to the greater of the following: (1) 60 percent of the actuarial equivalent of the monthly benefit the participant would have received if the participant's pension began on the date the spouse elects to begin receiving the pension calculated based upon the spouse's age; or (2) a monthly amount which is the actuarial equivalent of the participant's contribution accumulation and vested city contributions as of the date the spouse's pension commences.

Payment of such pension shall commence as of the first day of the month following the date the spouse notifies the plan of his or her election to take a benefit at any time after the date on which the participant would have attained the earliest retirement age. Any distribution must begin no later than April 1 of the year following the year in which the participant would have attained age 70-½.

(c) Qualified preretirement survivor annuity. The surviving spouse of a participant who has completed five years of credited service and is actively employed by the City or on a paid or nonpaid leave of absence shall be eligible for a death benefit in the form of either a lump sum equal to the participant's contribution accumulation and vested city contributions, or a spouse's pension if the participant dies prior to the date the pension commences and prior to the normal retirement date. Such lump sum or pension shall also be paid to the surviving spouse of a participant who terminated because of a disability and the disability was continuous until the death and death occurs before the participant receives a disability retirement pension. The spouse's pension shall be a monthly benefit for the spouse's life equal to the greater of (1) 60 percent of the actuarial equivalent of the monthly benefit the participant would have received if the participant's pension began on the date the spouse elects to begin receiving the pension calculated based upon the spouse's age; or (2) a monthly amount which is the actuarial equivalent of the participant's contribution accumulation and vested city contributions as of the date the spouse's pension commences.

Payment of such pension shall commence as of the first day of the month following the date the spouse notifies the plan of his or her election to take a benefit at any time after the date on which the participant would have attained the earliest retirement age. Any distribution must begin no later than April 1 of the year following the year in which the participant would have attained age 70-½.

(d) Inservice death benefit after normal retirement date. If a participant continues employment by the city after the normal retirement date and dies before retirement, the survivor annuity shall be a monthly benefit for the life of the participant's surviving spouse equal to the greater of: (1) a defined benefit pension equal to the monthly benefit the participant would have received if the participant had retired on the date of death and selected the 100 percent joint and survivor option, or (2) the actuarial equivalent of the participant's money purchase pension calculated based upon the survivor's age.

Payment of such pension shall commence as of the first day of the month following the participant's death. In lieu of this annuity, the survivor may elect a lump sum equal to the participant's contribution accumulation and vested city contributions.

(e) Alternative beneficiary. Should an unmarried participant die before the pension commences but after meeting all other eligibility requirements for a death benefit pursuant to subsection (b), (c), or (d) of this section, the unmarried participant may name one living person who would be entitled to receive the benefits to be computed in the same manner as (b), (c), or (d). Further, at the time of the death of the participant, a surviving spouse may elect to waive any benefit, and allow the pension or lump sum to be paid to the beneficiary selected by the participant.

(f) Retiree death benefit. Upon the death of each participant who is retired and eligible for pension benefits pursuant to section 102-141, a one-time lump sum payment of $6,250.00 shall be paid to the designated beneficiary. This benefit shall be separate from, an in addition to, any other benefit to which the participant's beneficiary may be entitled.

Should a participant and the beneficiary die after the participant's pension has commenced but before such participant and beneficiary have received total benefits equal to the participant's contribution accumulation and vested city contributions on the date the pension commenced, the excess amount shall be paid as a death benefit to the estate of the last to die of the participant and the beneficiary.

Each active or retired participant may designate a beneficiary to receive any benefit that may become payable pursuant to this subsection. Such designation shall be made upon the forms furnished by the board and shall not be effective until received by the board. If any participant shall fail to designate a beneficiary or if all of those designated by the participant predecease the participant, any benefit payable shall inure to the estate of the participant.

(g) Survivor benefits for deaths during military service. Effective January 1, 2007, if a participant dies while performing qualified military service (within the meaning of section 414(u)(1) of the code), the participant shall be treated as having terminated employment with the city due to his death for purposes of any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the plan.

(h) Partial lump sum payment. Any spouse or beneficiary who is eligible to receive a monthly benefit under subsection (b), (c), or (d) of this section may elect to receive up to 20 percent of the actuarial equivalent of his or her monthly benefit valued on a single life basis in the form of a lump sum payment. The remaining benefit shall be paid in monthly installments for the lifetime of the spouse or beneficiary. (Code 1979, § 15-50; Ord. No. 2015-63, § 1, 12-7-2015; Ord. No. 2011-29, § 7, 9-12-2011; Ord. No. 2001-81, § 4, 1-7-2002; Ord. No. 2001-69, § 3, 11-19-2001; Ord. No. 99-82, § 4, 11-29-1999; Ord. No. 97-77, § 8, 1-5-1998; Ord. No. 96-38, § 7, 10-7-1996)