§ 3-2-54. Additional retirement allowance.  


Latest version.
  • (a)

    Definitions.

    (1)

    Active member shall mean a member of the System who is an employee on July 1, 1995, or who becomes an employee thereafter, and whose membership in the System has not ceased at any time from either July 1, 1995, or from when he or she became an employee (whichever is later) until the effective date of his or her subsequent retirement.

    (2)

    Retired member shall mean a member of the System who is receiving a retirement allowance on July 1, 1995, or whose effective date of retirement is on or before July 1, 1995. A member of the System who is receiving a retirement allowance shall include any member whose effective date of retirement is on or before July 1, 1995.

    (3)

    Retirement allowance shall mean a normal service retirement allowance, an early service retirement allowance, an ordinary disability retirement allowance, a deferred vested benefit, or a spouse retirement allowance.

    (4)

    Base annual retirement allowance shall mean the initial calculation of a member's or spouse's annual retirement allowance without regard for any deductions for withholding or other benefit elections or adjustments under Section 3-2-7. For a member taking normal service retirement under Section 3-2-31(a), this is the allowance calculated under Section 3-2-32(a)(1) for a member in Plan A or Plan C, or under Section 3-2-32(a)(2) for a member in Plan B, Plan D, or Plan E; for a member taking early service retirement under Section 3-2-32(b), this is the allowance calculated under Section 3-2-32(b); for a member retired on account of ordinary disability under Section 3-2-33, this is the allowance calculated under Section 3-2-34; and for a spouse receiving a spouse retirement allowance, this is the allowance calculated under Section 3-2-42.

    (5)

    Adjusted base annual retirement allowance shall mean the base annual retirement allowance of a retired member or of the spouse of a member receiving the base spouse annual retirement allowance under Section 3-2-42, as increased by any cost-of-living adjustments applied to the member's or spouse's retirement allowance from the effective date of his or her retirement or election of the spouse retirement allowance through July 1, 1995.

    (6)

    Member in service shall mean a member of the System.

    (b)

    The adjusted base annual retirement allowance of each retired member or spouse receiving a retirement allowance on July 1, 1995, shall be increased by three percent, effective July 1, 1995 (modified adjusted base annual retirement allowance). Adjustments to the retired member's or spouse's retirement allowance made under this Article after July 1, 1995, shall be computed on the basis of the modified adjusted base annual retirement allowance.

    (c)

    When an active member retires, or the eligible spouse of an active member elects to receive the spouse retirement allowance after July 1, 1995, after his or her base annual retirement allowance has been computed under the applicable Section of this Article, the resulting base annual retirement allowance shall be increased by three percent (initial base annual retirement allowance). Adjustments to the member's or spouse's retirement allowance under this Article after July 1, 1995, shall be computed on the basis of the initial base annual retirement allowance.

    (d)

    If a member is entitled to the three percent increase provided for by either Subsection (b) or (c) of this Section, and if at the time he or she is entitled to such increase, he or she is also eligible to receive the pre-62 compensating benefit under Section 3-2-32(a)(3) or the pre-social security benefit under Section 3-2-32(a)(4), his or her pre-62 compensating benefit or pre-social security benefit shall also be increased by three percent.

    (e)

    Separation from service.

    (1)

    A member who:

    (A)

    Separated from service other than by death or retirement with five or more years of creditable service in the System prior to July 1, 1995, and

    (B)

    Has not withdrawn his or her accumulated contributions as of July 1, 1995, and

    (C)

    Subsequently applies for and is determined to be eligible for a deferred vested benefit after July 1, 1995, shall have his or her or her deferred vested benefit computed mutatis mutandi in the same manner as an active member under Subsection (c) of this Section.

    (2)

    A member in service on or after July 1, 1995, who:

    (A)

    Subsequently separates from service other than by death or retirement with five or more years of creditable service in the System, and

    (B)

    Does not withdraw his or her or her accumulated contributions, and

    (C)

    Subsequently applies for and is determined to be eligible for a deferred vested benefit, shall have his or her deferred vested benefit computed mutatis mutandi in the same manner as an active member under Subsection (c) of this Section.

    (3)

    A member in service on or after July 1, 1995, who,

    (A)

    Subsequently separates from service other than by death or retirement with five or more years of creditable service in the System, and

    (B)

    Does not withdraw his or her accumulated contributions, and

    (C)

    Thereafter, returns to service and again becomes a member of the System, and

    (D)

    Subsequently applies for and is determined to be eligible for a normal service, early service or ordinary disability retirement allowance, or a deferred vested benefit, shall have his or her allowance or deferred vested benefit computed mutatis mutandi in the same manner as an active member under Subsection (c) of this Section.

    (4)

    A member in service on or after July 1, 1995, who

    (A)

    Thereafter separates from service, and

    (B)

    Withdraws his or her accumulated members' contributions, and

    (C)

    Subsequently returns to service and again becomes a member of the System, and

    (D)

    At that time makes arrangements to purchase credit for all of his or her previous service in the System under this Article, and

    (E)

    Thereafter applies for and is determined to be eligible for a normal service, early service or ordinary disability retirement, or for a deferred vested benefit, shall have his or her allowance or deferred vested benefit computed mutatis mutandi in the same manner as an active member under Subsection (c) of this Section.

    (f)

    A member's spouse who is receiving an allowance under the joint and last survivor option provided by Section 3-2-32(c), on July 1, 1995, shall have such allowance increased by three percent, effective July 1, 1995. Adjustments to such allowance under this Article after July 1, 1995, shall be computed on the basis of this increased allowance.

    (g)

    Notwithstanding the 60 percent of average final compensation limit contained in Section 3-2-34, the initial base annual retirement allowance of an active member who becomes eligible to receive an ordinary disability retirement allowance and who is entitled to the increase provided by Subsection (c) of this Section, may exceed 60 percent, but shall not exceed 61.8 percent of his or her average final compensation.

    (h)

    Notwithstanding any provision of this Section to the contrary, no adjustment under this Section shall be made which would violate the limitations provided by Section 3-2-51 concerning the limitations imposed by Section 415 of the Internal Revenue Code and any U.S. Treasury regulations issued thereunder; provided, that any adjustment under this Section may be made up to those limitations.

    (i)

    This Section shall not be applicable to members of Plan E. (12-95-3; 11-00-3; 2-16-3; 09-19-3.)