Number
001312
Version
SUBSTITUTE 2
Reference
Sponsor
Title
Substitute resolution provides supplementary pension benefits for 2001 for certain retired employes of the City of Milwaukee.
Analysis
Employes who retired prior to 1984 and their surviving spouse beneficiaries who meet certain conditions are eligible. The benefits are non-contractual and non-precedential.
Body
Whereas, The City of Milwaukee has provided supplementary pension benefits to certain retired City employes since 1975; and
Whereas, The 2001 City Budget includes $417,000 in a special purpose account "Retirees' Benefit Adjustment Fund" for the purpose of providing supplementary pension benefits; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the formula for pension supplementary payment to members of the Employes' Retirement System of the City of Milwaukee, who were employed by the City of Milwaukee with the Milwaukee Police Department, Milwaukee Fire Department or General City, and the Firemen's Annuity and Benefit Fund of Milwaukee, for 2001 shall be related to the members' retirement allowance as follows:
Retirement Date Amount Supplement
Pre- 1949 400%
1950 through 1952 300%
1953 through 1954 200%
1955 through 1958 165%
1959 through 1961 120%
1962 90%
1963 85%
1964 80%
1965 75%
1966 through 1967 60%
1968 through 1969 45%
1970 through 1973 25%
1974 through 1975 14%
1976 through 1979 7%
1980 through 1982 6%
1983 3%
; and, be it
Further Resolved, That this supplement is being granted under the following terms and conditions, without limitation by enumeration:
1. This supplement is granted to qualified retirees under the Employes' Retirement System, Firemen's Annuity and Benefit Fund, and to former Town of Lake retirees.
2. No retired member or his or her surviving spouse beneficiary, who is eligible to receive a supplemental benefit during 2001, shall have his or her retirement allowance together with supplemental benefit exceed $1,180 monthly under this resolution. The supplemental benefit shall be reduced in the amount so that the supplemental benefits together with the retirement allowance does not exceed $1,180 monthly.
3. a. Except for members of the Policemen's Annuity and Benefit Fund and the Firemen's Annuity and Benefit Fund, there shall be a minimum "pension plus supplement" benefit of $250 per month or $3,000 per year for full career service pensions. This minimum combination of pension and supplement benefit shall be prorated for those with at least 10 years but less than 25 years of service with the City. The yearly proration shall be based on 40% of the minimum "pension plus supplement" benefit for retirees with 10 years of service and 100% of such minimum for those retirees with 25 or more years of service.
b. Any member of the Policemen's Annuity and Benefit Fund or the Firemen's Annuity and Benefit Fund who is receiving an annuity, including widows of members, shall be eligible to receive a minimum annuity plus supplement of $300 per month or $3,600 per year.
4. a. No supplement exceeding $415 per month shall be paid. Applicable supplement percentages may be adjusted to enable compliance with this provision.
b. Retirement allowances and ordinary disability retirement allowances under the Firemen's Annuity and Benefit Fund are covered. Duty disability retirement allowances are excluded from coverage under the supplement.
c. The retirement allowances from the former Town of Lake are covered.
d. Ordinary disability retirement allowances under the Employes' Retirement System are covered.
e-1. Retirement allowances under the Employes' Retirement System which are not eligible for a catch-up adjustment under s. 36-05-1-i-1-a or b of the City Charter, as enacted by Charter Ordinance File Number 942016, are covered.
e-2. Retirement allowances under the Employes' Retirement System which are eligible for a catch-up and cost-of-living adjustment under s. 36-05-1-i-1-a or b of the City Charter, enacted by Charter Ordinance File Number 942016, are eligible for a partial supplement which shall represent the difference between their total monthly benefits provided under s. 36-05, including any benefits enacted by Charter Ordinance File Number 942016, and their total 1995 monthly benefits provided under s. 36-05 and Common Council Resolution File Number 941620.
e-3. Duty disability allowances paid under s. 36-05-03 or survivorship allowances paid under s. 36-05-8 are excluded from coverage under the supplement.
5. Retired employes with 10 or more years of creditable service and the recipients of survivor pensions who were married to eligible retired employes or who were married to employes at the time a protective survivorship option was elected are eligible for the 2000 supplementary pension benefits, provided they meet other eligibility provisions. The surviving spouse supplement shall be related to the survivor benefits and the applicable surviving spouse supplement percentage shall be related to the member's retirement date.
6. a. Retirees who were eligible to receive the supplement in 1987, but who had less than 10 years of creditable service at the time of their retirement, shall not receive the supplement provided for in this resolution. Such retirees shall receive a 2000 supplement computed on the basis of the formula provided by Common Council Resolution File Number 85-933.
b. Notwithstanding this provision, surviving spouse beneficiaries of individuals killed in the line of duty prior to 1/1/84 shall be eligible for the 2000 supplementary pension benefits provided for in this resolution. For the purpose of calculating these benefits, the year in which the death in the line of duty occurred shall be the "retirement date" and shall be considered a full career service pension.
7. The supplement percentages described above shall be non-compounding, that is, they shall be applied to the retiree's pension amount as of his or her effective retirement date.
8. The 2001 pension supplementary payments provided for in this resolution shall not be made part of the pension laws governing the respective City pension systems (Employes' Retirement System and Firemen's Annuity and Benefit Fund.)
9. The 2001 pension supplementary payments provided for in this resolution shall be deemed non-precedential and shall not be construed as pension supplements after 2000;
and, be it
Further Resolved, That the Water Department is authorized and directed to pay directly for the cost of supplemental benefits attributable to its former employes; and, be it
Further Resolved, That the 2001 supplemental benefit program shall make the same offer of pension supplements to all retirees and their beneficiaries who are eligible for 2001 supplemental pension benefits; and, be it
Further Resolved, That individual retirees or their beneficiaries who are eligible for 2001 supplemental pension benefits shall have the choice of accepting supplemental pension benefits as provided under this resolution, or to reject in whole or in part this offer of supplemental pension benefits for 2001; and, be it
Further Resolved, That the proper City officials are authorized and directed to implement the appropriate procedure to enable such acceptance or rejection in whole or in part of this offer of supplemental pension benefits for 2001; and, be it
Further Resolved, That adoption of this resolution shall supersede all provisions of Resolution File Number 991446.
Requestor
Drafter
Budget and Management Division
Ref:00037; CK:nme
January 4, 2001
Finance/Resolut/001312.doc