Sec. 102-181. Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Alternate payee means an alternate payee as defined under C.R.S. § 14-10-113(6)(b)(I).
Beneficiary means any person, other than the retirant, in receipt of a pension payable from funds provided by the retirement system of the fire department.
Board means the board of trustees of the retirement system of the fire department as provided for in section 102-183.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Compensation or salary means the base salary set forth in the City's compensation ordinance for the rank and grade held by a member and paid by the City to a member for services rendered by him or her to the City as a member of the fire department, plus longevity pay and longevity credit where eligible therefor, but exclusive of holiday pay, overtime pay, or educational incentive pay. A member's compensation shall include any amounts deferred as to such member under code section 457 or under code section 414(h). The amount of a member's compensation for purposes of the retirement system during any plan year shall not exceed $200,000.00, subject to cost-of-living adjustments in accordance with code section 415(d). Effective January 1, 1996, compensation for any plan year will be limited to the first $150,000.00 of compensation, or such other amount determined in accordance with code section 410(a)(17). For purposes of calculating compensation or salary received on or after January 1, 2002, the limitation under code section 401(a)(17) is increased to $200,000.00 as adjusted.
Credited service means service credited to a member to the extent provided under this article.
Current (rank escalation) highest salary is based on the highest salary for a rank from the City's pay plan as used by the human resources department (the "official highest salary"). This section shall always be interpreted such that the purpose of the section is to increase the monthly pension based on increases in the official highest salary for a rank, unless inflation for the previous year is higher in which case the increase shall match inflation, up to a maximum inflation protection equal to the actuarial assumption. The specific procedures for the current (rank escalation) highest salary calculations are identified below:
(1) Inflation change adjustment: In January of each year, the current (rank escalation) highest salary will be increased by the percentage change in inflation for the immediately preceding year. "Inflation" shall have the same meaning as found in Article X, Section 20(2)(F) of the Colorado Constitution, i.e., the Denver Metropolitan Area (aka Denver-Boulder-Greeley) CPI-U, all urban consumers, all items. However, in no case shall the inflation increase percentage exceed the actuarial percentage increase used to value the rank escalator in the actuarial study applicable to the year for which the monthly pension is being calculated ("actuarial assumption"). The inflation change adjustment shall be retroactively applied to January if the inflation rate is not available timely.
(2) Salary change adjustment: For each month, if needed, there shall also be a current (rank escalation) highest salary change adjustment so that the year-to-date cumulative percentage change of the current (rank escalation) highest salary (including inflation and salary adjustments) is not less than the year-to-date cumulative percentage change of the highest official highest salary for the rank. For any month where this would be the case, the current (rank escalation) highest salary shall be increased so that it is equal to the cumulative percentage change for the year in the official highest salary for the rank. The cumulative change includes compounding of the official highest salary changes. Changes in official highest salary and inflation that are negative are ignored.
(3) Increase for year must be consistent with the annual official highest salary increase or inflation: The calculation methodology for the current (rank escalation) highest salary shall be applied in a manner such that at the end of each year, the total percentage increase (for the year) in current (rank escalation) highest salary shall be equal to the higher of either 1) the inflation rate (or the actuarial assumption, whichever is less), or 2) the compounded increase, if any, in official highest salary for the year, except that in no case shall the change for the year ever be negative.
(4) Calculation if a rank is eliminated: If a rank is eliminated, the current (rank escalation) highest salary for the eliminated rank is to remain at the same relative level above the next lower rank. For example, if Rank 2 is ten percent higher than Rank 1 in the last year that Rank 2 exists in the pay plan, it shall remain ten percent higher than the official highest salary for Rank 1 in the future.
Disability pay means that compensation paid to a member on temporary disability status in equal monthly installments from funds of the retirement system of the fire department.
Disability status means a nonduty status by reason of temporary disability according to the determination of the board.
Domestic relations order means an agreement between a member and the member's former spouse as provided in C.R.S. § 14-10-113(6).
Employee means any person who is employed by the fire department who was hired prior to April 8, 1978, any person who received previous service credits pursuant to state law, thereby qualifying as an "old hire," and those members of the volunteer fire department certified as being eligible to receive retirement benefits. There are no "leased employees" within the meaning of code section 414(n)(2).
In the performance and as a proximate result of duty means only those functions, assignments, services, conduct, acts, obligatory tasks or activities within the scope of employment undertaken or participated in by a member firefighter while on duty during regularly assigned duty shifts or when ordered on duty by a superior officer of the fire department or in conformity with the fire department rules and regulations.
Longevity credit means, for each year it is being calculated, an amount equal to the number of months of credited service of the member, multiplied by $5.00, or $1,500.00, whichever is less, minus longevity pay received by the member for the year which the calculation is made.
Member means any person included in the membership of the fire department who was hired prior to April 8, 1978, any person who received previous service credits pursuant to state law, thereby qualifying as an "old hire," and those members of the volunteer fire department certified as being eligible to receive retirement benefits. Excluded as members are leased employees within the meaning of code section 414(n)(2).
Normal retirement means that type of retirement which occurs when a member has completed the applicable years of active service and age requirement dependent upon the initial employment date within the City, subject to the effect of any applicable previous service credits.
Pension means an amount payable, in equal monthly installments, from funds of the retirement system of the fire department to a retirant.
Rank escalation means the method of calculating the benefit by utilizing the salary increases over the years for the rank of active employees and determining the corresponding increase for the retirant.
Retirant means a member who retires with a pension payable under this article.
Retirement means withdrawal from the service with a pension payable from funds of the retirement system of the fire department.
Retirement association means the Fire and Police Pension Association (FPPA).
Retirement system means the retirement system of the fire department created and established under this article and state law.
Spouse means:
(1) For purposes of federal tax laws applicable to this plan, "spouse" is defined according to federal tax laws, including IRS Rev. Rul. 2013-17 and subsequent regulations and rulings, and includes a spouse lawfully married under the laws of one of the 50 states, the District of Columbia, a U.S. territory or a foreign jurisdiction, regardless of whether the spouses remain residents of the state, territory, or jurisdiction in which they were married;
(2) For all other purposes, "spouse" is defined according to federal tax laws and, in addition, "spouse" is defined to include parties to a State of Colorado civil union.
Volunteer retirement system means that system for heretofore retirement established for members of the volunteer fire department, and from and after the date of February 1, 1966, shall provide a system of retirement benefits from the retirement system of the fire department for only those members certified on February 1, 1966, by the last board of trustees of the volunteer retirement system as members of the volunteer fire department of the city who have previously qualified for retirement or who, by reason of service, shall be eligible for retirement in the future and none other. The retirement system for volunteer firefighters is a separate and distinct retirement system from the compensated member retirement system described in this article. The city shall arrange for the volunteer benefit payments provided in subsection 102-200(a) in a manner so as to not commingle such benefit payments with the firefighter's retirement funds. (Code 1979, § 15-116; Ord. No. 2015-08, § 1, 2-23-2015; Ord. No. 2008-81, § 1, 1-22-2009; Ord. No. 2003-15, § 1, 4-28-2003; Ord. No. 2000-75, § 1, 7-17-2000; Ord. No. 97-50, § 1, 10-6-1997; Ord. No. 95-101, § 3, 12-11-1995)
Cross reference: Definitions generally, § 1-2.