102-290 Benefits | Aurora City Code

(a) Normal retirement benefit for elected officials.

(1) Eligibility. Every elected official who attains his normal retirement age while in covered employment shall be fully vested in his normal retirement benefit and shall be entitled to retire without the consent of the City.

(2) Commencement and duration. Subject to the participant's written claim for benefits in accordance with subsection (j), payment of the normal retirement benefit shall commence as of the participant's normal retirement date (provided the participant is not then in covered employment) unless the participant elects to postpone the commencement of the benefit (by failing to make a claim for benefits) until a date not later than the required beginning date. The normal retirement benefit shall continue for the life of the participant, except as provided in subsection (i). Payment shall commence not later than the participant's required beginning date.

(3) Amount. The standard normal retirement benefit payable shall be a pension for the life of the participant payable in monthly installments. Subject to subsection (k), the monthly amount shall be the amount calculated pursuant to subsection (a)(4), as adjusted in accordance with the provisions of subsection (a)(5).

(4) Computation of monthly benefit. For an elected official with no hours of service in covered employment as an elected official after December 31, 1999, the standard monthly normal retirement benefit shall be equal to the base benefit. For an elected official in covered employment as an elected official on or after January 1, 2000, the standard monthly normal retirement benefit shall be equal to sum of the base benefit and the supplemental benefit. For an elected official in a new term commencing after November 5, 2013, the total years of service shall be capped at the greater of service prior to that date or 12 years total service except the official is eligible for up to eight years of additional service for time in covered service as mayor.

a. Effective calendar year 2002, the base benefit under subsection (a)(4)a. shall be increased annually by an amount equal to the base benefit payable during the previous calendar year multiplied by the same cost of living adjustment as determined by the board of trustees of the general employees' retirement plan as applicable to the pension benefit provided under the general employees' retirement plan; provided that in no event shall the cost of living increase for any one year exceed five percent.

b. Effective calendar year 2002, the supplemental benefit under subsection (a)(4)b. shall be increased annually by an amount equal to the supplemental benefit payable during the previous calendar year multiplied by the same cost of living adjustment as determined by the board of trustees of the general employees' retirement plan as applicable to the supplemental benefit provided under the general employees' retirement plan; provided that in no event shall the cost of living increase for any one year exceed five percent.

(1) Eligibility. An elected official who retires after his or her normal retirement date shall be eligible for a late retirement benefit.

(2) Commencement and duration. Subject to the participant's written claim for benefits in accordance with subsection (j), the late retirement benefit shall be a pension commencing on the first day of the month after the participant terminates employment, or on the first day of any month thereafter, and shall be payable for the life of the participant, except as provided in subsection (i). Payment shall commence not later than the participant's required beginning date.

(3) Amount. Subject to subsection (k), the amount of the benefit payable shall be calculated in accordance with subsection (a)(4), as adjusted in accordance with the provisions of subsection (a)(5).

(1) Eligibility for deferred vested retirement benefit. An elected official who is not eligible for a normal or late retirement benefit and who terminates employment having completed at least six years of service shall be eligible to receive a deferred vested retirement benefit.

(2) Commencement and duration. Subject to the participant's written claim for benefits in accordance with subsection (j), deferred vested retirement benefit payments shall begin on the participant's normal retirement date or, if he so elects, as of the first day of any month thereafter. The deferred vested retirement benefit shall be payable for the life of the participant, except as provided in subsection (i). Notwithstanding the foregoing, payment shall commence not later than the participant's required beginning date.

(3) Amount. Subject to subsection (k), the amount of the deferred vested retirement benefit shall be equal to the participant's accrued benefit determined as of the date of the participant's termination of covered employment.

(1) Eligibility. Every executive employee who attains his normal retirement age while in covered employment shall be fully vested in his normal retirement benefit and shall be entitled to retire without the consent of the City.

(2) Commencement and duration. Subject to the participant's written claim for benefits in accordance with subsection (j), payment of the normal retirement benefit shall commence as of the participant's normal retirement date (provided the participant is not then in covered employment) unless the participant elects to postpone the commencement of the benefit (by failing to make a claim for benefits) until a date not later than the required beginning date. The normal retirement benefit shall continue for the life of the participant, except as provided in subsection (i). Payment shall commence not later than the participant's required beginning date.

(3) Amount. The standard normal retirement benefit payable shall be a pension for the life of the participant payable in monthly installments. Subject to subsection (k), the monthly amount shall be the amount calculated pursuant to subsection (d)(4), as adjusted in accordance with the provisions of subsection (d)(5).

(4) Computation of monthly benefit. If the participant has accrued six or more years of service, the standard monthly normal retirement benefit shall be equal to $126.00 per month (the "full monthly benefit"). If the participant has six or more years of covered employment as an executive employee on or after January 1, 2001, the standard normal monthly retirement benefit shall be equal to $175.00 per month (the "full monthly benefit.") if the participant has accrued fewer than six years of service, the participant's standard monthly normal retirement benefit shall be equal to the following percentages of the full monthly benefit:

Years of Service	Percentage of Full Monthly Benefit
Less than 3	0%
3	50%
4	67%
5	83%
6	100%

(5) Cost of living adjustment. Effective calendar year 2002, the full monthly benefit under subsection (d)(4) shall be increased annually by an amount equal to the full monthly benefit payable during the previous calendar year multiplied by the same cost of living adjustment as determined by the board of trustees of the general employees' retirement plan as applicable to the supplemental benefit provided under the general employees' retirement plan; provided that in no event shall the cost of living increase for any one year exceed five percent.

(1) Eligibility. An executive employee who retires after his or her normal retirement date shall be eligible for a late retirement benefit.

(2) Commencement and duration. Subject to the participant's written claim for benefits in accordance with subsection (j), the late retirement benefit shall be a pension commencing on the first day of the month after the participant terminates employment, or on the first day of any month thereafter, and shall be payable for the life of the participant, except as provided in subsection (i). Payment shall commence not later than the participant's required beginning date.

(3) Amount. Subject to subsection (k), the amount of the benefit payable shall be calculated in accordance with subsection (d)(4), as adjusted in accordance with the provisions of subsection (d)(5).

(1) Eligibility for deferred vested retirement benefit. An executive employee who is not eligible for a normal or late retirement benefit and who terminates employment having completed at least three years of service under the plan shall be eligible to receive a deferred vested retirement benefit.

(2) Commencement and duration. Subject to the participant's written claim for benefits in accordance with subsection (j), deferred vested retirement benefit payments shall begin on the participant's normal retirement date or, if he so elects, as of the first day of any month thereafter. The deferred vested retirement benefit shall be payable for the life of the participant, except as provided in subsection (i). Notwithstanding the foregoing, payment shall commence not later than the participant's required beginning date.

(3) Amount. Subject to subsection (k), the amount of the deferred vested retirement benefit shall be equal to the participant's accrued benefit determined as of the date of the participant's termination of covered employment.

(1) In no event shall the annual benefit provided under this plan for any participant plus his benefit under any other defined benefit plan maintained by the City, determined under this subsection (g) and code section 415 and the regulations promulgated thereunder, exceed for any limitation year commencing on or after January 1, 2003, a straight life annuity with no ancillary benefits (under a plan to which employees do not contribute and to which no rollover contributions are made) equal to $160,000.00, as adjusted by the Secretary of the Treasury.

If the participant has been a participant in the plan for fewer than ten plan years, the amount determined above shall be multiplied by a fraction, the numerator of which is the participant's number of full and partial years of plan participation and the denominator of which is ten. However, the amount so determined shall not be less than one-tenth of the above amount. The pro rata reduction of the $160,000.00 limit (as adjusted by the Secretary of the Treasury) on account of participation for fewer than ten plan years shall not apply to amounts received by beneficiaries.

(2) Notwithstanding subsection (1) above, the annual benefit shall not exceed the limitations of this subsection (g) if the annual benefit derived from city contributions to this plan and all other defined benefit plans maintained by the city does not exceed $10,000.00. If the participant has completed fewer than ten years of service, the $10,000.00 amount shall be multiplied by a fraction, the numerator of which is the number of the participant's years of service and the denominator of which is ten. However, the amount so determined shall not be less than $1,000.00. The pro rata reduction of the $10,000.00 amount on account of years of service of fewer than ten years shall not apply to amounts received by beneficiaries. The provisions of this subsection (2) shall not apply to any participant who at any time participated in a defined contribution plan maintained by the City.

(3) If the benefit under this plan is payable in any form other than a straight life annuity (with no ancillary benefits) or a qualified joint and survivor annuity, the determination of whether the limits of this subsection (g) have been exceeded shall be made in accordance with the provisions of code section 415(b)(2)(B) and the applicable treasury regulations by adjusting the benefit so that it is the actuarial equivalent of a straight life annuity. For this purpose, actuarial equivalence shall be determined by using the interest rate and mortality table specified by code section 415(b)(2)(E).

a. Before age 62. If the benefit of a participant commences before the participant has attained age 62, the dollar limitation of subsection (g)(1) applicable to the participant at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the dollar limitation of subsection (g)(1) applicable to the participant at age 62 (as adjusted under the second paragraph of subsection (g)(1), if required). The dollar limitation of subsection (g)(1) applicable at an age prior to age 62 is determined as the lesser of (a) the actuarial equivalent (at such age) of the dollar limitation of subsection (g)(1) computed using the interest rate and mortality table specified in the definition of actuarial equivalent and (b) the actuarial equivalent (at such age) of the dollar limitation of subsection (g)(1) computed using a five percent interest rate and the applicable mortality table as defined in the definition of actuarial equivalent. Any decrease in the dollar limitation of subsection (g)(1) determined in accordance with this paragraph shall not reflect a mortality decrement if benefits are not forfeited upon the death of the participant. If any benefits are forfeited upon death, the full mortality decrement is taken into account. Notwithstanding anything in this paragraph to the contrary, the reduction of the dollar limitation of subsection (g)(1) set forth in this subsection (g)(4)a. shall not apply to amounts received by beneficiaries.

b. After age 65. If the benefit of a participant commences after the participant attains age 65, the dollar limitation of subsection (g)(1) applicable to the participant at the later age is the annual benefit payable in the form of a straight life annuity beginning at the later age that is the actuarial equivalent to the dollar limitation of subsection (g)(1) applicable to the participant at age 65 (as adjusted under the second paragraph of subsection (g)(1), if required). The actuarial equivalent of the dollar limitation of subsection (g)(1) applicable at an age after age 65 is determined as the lesser of (a) the actuarial equivalent (at such age) of the dollar limitation of subsection (g)(1) computed using the interest rate and mortality table specified in the definition of actuarial equivalent and (b) the actuarial equivalent (at such age) of the dollar limitation of subsection (g)(1) computed using a five percent interest rate assumption and the applicable mortality table as specified in the definition of actuarial equivalent. For these purposes, mortality between age 65 and the age at which benefits commence shall be ignored.

(5) If a participant is, or has ever been, covered under more than one defined benefit plan maintained by the City, the sum of the participant's annual benefits from all defined benefit plans may not exceed the limitations of this subsection (g).

(1) The restrictions provided in this section apply to any person who is among the 25 highest paid employees of the City on the effective date and whose anticipated annual benefit under the plan upon attainment of his normal retirement date exceeds $1,500.00.

(2) The limitations provided in this subsection (h) will become effective (i) if the plan is terminated within ten years after the effective date, (ii) if the benefits of an employee referred to in paragraph (1) above become payable within ten years after the effective date, or (iii) if the benefits of an employee referred to in (1) above become payable more than ten years after the effective date and the full current costs of the plan through the end of such ten-year period have not been funded.

(3) Notwithstanding the other provisions of this section, the limitations prescribed herein shall not become effective if the Commissioner of Internal Revenue has determined that the limitations are not necessary to prevent prohibited discrimination under the Code in the circumstances in which they would otherwise become effective.

(4) If the limitations prescribed in this section become effective, the city contributions which may be used for the benefit of any current or former employee described in (1) above shall not exceed the greater of the following amounts:

a. $20,000.00; or

b. 20 percent of the first $50,000.00 of the annual compensation of the employee, multiplied by the number of years between the effective date and the earliest of (i) the date of the termination of the plan, (ii) the date on which the limitations of this section become effective under clause (ii) or (iii) of subsection (h)(2), whichever is applicable, or (iii) the date of a failure to meet the full current costs of the plan.

If the benefits to an employee become payable within ten years after the effective date, as described in clause (ii) of subsection (h)(2), the number of years taken into account may be recomputed for each year if the full current costs of the plan are met for such year.

Notwithstanding the foregoing, if the Commissioner of Internal Revenue or his designate determines, by regulations, ruling or otherwise, that an amount in excess of the amounts determined above may be used for the benefit of any employee to whom these limitations apply, such greater amount may be applied to provide such benefit.

(5) For purposes of this section:

a. The term "annual compensation" of an employee means either the employee's average regular annual compensation, or such average compensation over the last five years, or the employee's last annual compensation if such compensation is reasonably similar to his average regular annual compensation for the five preceding years;

b. The term "benefits" includes any periodic income, any withdrawal values payable to a living employee, and the cost of any death benefits which may be payable after retirement on behalf of an employee, but does not include the cost of any death benefits with respect to an employee before retirement nor the amount of any death benefits actually payable after the death of an employee, whether such death occurs before or after retirement;

c. The term "full current costs" means the normal cost, as defined in Treas. Reg. section 1.404(a)-6 (as in effect on September 1, 1974), for all years since the effective date, plus interest on any unfunded liability during such period.

(6) In the case of an employee to whom the restrictions of (4) apply (other than in the case of a plan termination), such restrictions will remain in effect until ten years have elapsed from the effective date or, if the full current costs have not been met at the end of such ten-year period, until the full current costs have been met for the first time.

(7) The foregoing limitations do not restrict the current payment of the full benefits called for by the plan for any retired employee while the plan is in full effect and the full current costs of the plan have been met, nor the payment of any amounts which become payable under the plan in the event of an employee's death.

(i) Suspension of benefits. A participant's benefits shall, for purposes of this subsection (i), be deemed to have been suspended for any month in which the participant remains employed after reaching normal retirement age and before reaching his required beginning date. Benefits of a participant in pay status shall be suspended if the recipient is re-employed by the City in covered employment. The amount suspended shall be an amount equal to the monthly benefit payment that would have otherwise been payable. Upon the subsequent retirement of the participant, the plan shall resume paying the participant's previous benefit that was suspended and an additional amount based on the additional period of service following the suspension of benefits.

(j) Application for benefits. It shall be the sole duty and responsibility of every participant entitled to a pension benefit to make a claim for such benefit with the plan administrator, and there shall be no duty upon the plan administrator to disburse any benefits without written notice of such claim. A participant shall be required to notify the plan administrator of his intended retirement at least 60 days prior to the date on which the pension is to commence. Each application shall be in writing on forms supplied by the plan administrator and shall be filed in such manner and with such person as the plan administrator may specify. The plan administrator may require that there be furnished to it in connection with any such application all relevant information. (Ord. No. 2015-23, § 1, 6-29-2015; Ord. No. 2012-15, § 2, 5-7-2012; Ord. No. 2003-15, § 5, 4-28-2003; Ord. No. 2001-70, § 6, 11-19-2001)