Number
001069
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. GORDON
Title
A substitute charter ordinance relating to repurchase of prior service credits.
Sections
Analysis
This charter ordinance permits any member of the employes' retirement system who withdrew his or her accumulated contributions prior to June 3, 1972, to repurchase retirement service credit by repaying the amount of the withdrawal, together with interest. Interest is to be measured by the acturarial rate for the year. This charter ordinance makes special rules for members who are subject to Internal Revenue Code ยง 415 limits.
Whereas, Several significant changes in benefits of the Employes' Retirement System occurred between 1969 and 1972; and
Whereas, Charter ordinance 382, File Number 71-2300, effective June 3, 1972, included an amendment to guarantee the return of accumulated contributions to members who separated from service and elected a deferred retirement allowance; and
Whereas, This change made the deferred retirement allowance more desirable by guaranteeing members who selected such option the return of member contributions;and
Whereas, Members who separated from prior to June 3, 1972, made a decision to withdraw their accumulated contributions without full knowledge of the loss of pension value accompanying their decision; and
Whereas, Current members of the Employes' Retirement System who were members prior to these and other similar events were unaware of the System's changes at that time and might have made different decisions if they had been aware of these changes; and
Whereas, Current members of the Employes' Retirement System who withdrew their accumulated contributions prior to June 3, 1972, should have an opportunity to re-establish their accounts in the Employes' Retirement System by making the appropriate payments to the Employes' Retirement System fund; now, therefore
Body
The Mayor and Common Council of the City of Milwa...
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