NUMB:
970627
VERS:
ORIGINAL
REF:
960253
XXBY:
THE CHAIR
TITLE:
A charter ordinance relating to repurchase of prior retirement service credits.
ANLS:
- Analysis -
Charter ordinance file no. 960253 permitted members of the employes' retirement system who separated from service and withdrew their accumulated contributions on or before January 27, 1969 to apply to have their membership and credits for service at the time of separation restored after they return to city employment. The ordinance provided that the repurchase of service credits in any one year shall be limited by the amount of a lump sum payment permitted by the annual contribution limits established under sec. 415(c) of the internal revenue code. Part 2 of charter ordinance file no. 960253 permitted the estate of a policeman who died on or after March 11, 1996 while in active service to exercise the right to apply for restoration of membership and restoration of service credit under Part 1 which the policeman would have had, had the policeman lived. As a practical matter, Part 2 has proved to be unworkable because of applicable sec. 415 limits. This charter ordinance addresses the issue in a way that does not raise sec. 415 issues. The survivor will be provided with a protective survivorship option benefit reduced by the actuarial equivalent of the accumulated contributions and interest that the policeman would have to have paid. According to Buck Consultants, the ERS actuary, such an approach puts the system and the members' estate in the same financial position they would have been in had the accumulated contributions plus interest been paid.
BODY:
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Part 2 of charter ordinance file no. 960253 is amended to read as follows:
Part 2. [[The estate of a]] >>A<< policeman who died [[on or after]] >>between<< March [[11]] >>10<<, 1996 >>and the effective date of Part 1<< while in active service [[with p...
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