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3.01 DEPARTMENT
OF PUBLIC SAFETY 3.02
DUTIES AND RESPONSIBILITIES 3.03
DIRECTOR OF PUBLIC SAFETY 3.04
APPOINTMENTS 3.05
INTEGRATION 3.06
RULES AND REGULATIONS 3.07
IMPOUNDED OR LOST PERSONAL PROPERTY 3.08
RETIREMENT SYSTEM ESTABLISHED 3.01
DEPARTMENT OF PUBLIC SAFETY
There is hereby created and established the Department of Public Safety for the
Village. 3.02
DUTIES AND RESPONSIBILITIES
The Department of Public Safety shall perform all of the duties and responsibilities
of the police and fire services of the Village and shall have all of the powers,
duties and responsibilities conferred upon the police and fire services by virtue
of the Charter and ordinances of the Village and by law, and shall have such other
and additional powers, duties and responsibilities as may be lawfully imposed
upon it by any administrative directive, resolution, rule, ordinance, Charter
provision or law. 3.03
DIRECTOR OF PUBLIC SAFETY
There is hereby created the administrative office of Director of Public Safety
who shall be the administrator and head of the Department of Public Safety. The
Director of Public Safety shall combine the administrative offices of the Chief
of Police and Chief of the Fire Department as provided in the Charter of the Village.
The Director shall have all of the duties, responsibilities and functions conferred
upon a Chief of Police and Chief of the Fire Department. He shall in addition
thereto have such powers, duties and responsibilities as shall from time to time
be lawfully conferred upon him by the Village Manager and by law generally. Wherever
any statute, ordinance, municipal regulation or law shall require a duty or responsibility
of the Chief of Police or Chief of the Fire Department, such duties and responsibilities
shall be assumed and performed in the Village by the Director of Public Safety.
3.04
APPOINTMENTS The
Director of Public Safety shall be appointed by the Village Manager subject to
the approval of the council and his term of office shall be limited as provided
by the Charter of the Village. The Director of Public Safety may appoint such
deputies and officers as he shall deem necessary for the proper and efficient
operation of the Department of Public Safety. 3.05 INTEGRATION
The duties and responsibilities of policemen and firemen are hereby combined in
the persons of Public Safety Officers, and the Public Safety Officers shall perform
such duties and responsibilities as shall be conferred upon them from time to
time by the Director of Public Safety. In addition thereto, the Public Safety
Officers shall have and perform such duties as are imposed upon policemen or firemen
by the Charter of the Village, ordinances of the Village and by law. 3.06
RULES AND REGULATIONS The
Council, subject to the pertinent provisions of the Charter of the Village, shall
from time to time adopt such rules and regulations as it may deem expedient for
the proper administration of the Department of Public Safety and the duties, responsibilities
and privileges of Public Safety Officers. Such regulations shall become effective
twenty-four (24) hours after they are posted on a bulletin board in the office
of the Director of Public Safety. 3.07
IMPOUNDED OR LOST PERSONAL PROPERTY. (a) Disposition. Any personal
property which shall be impounded by, or which may otherwise come into the possession
of the Village of Beverly Hills or any of its officers, employees, or agents shall
be held and disposed of as provided in this section. (b)
Custody. All such property shall be immediately turned over to the Director of
Public Safety, who shall be the custodian thereof, and it shall be his duty to
provide storage for such property until the same shall have been reclaimed by
the owner or sold as provided herein. All money and negotiable securities shall
be turned over by the Director of Public Safety to the Village Treasurer for safekeeping,
and if not reclaimed within the forty-five (45) day period provided for below,
such securities shall be converted to cash and shall be deposited in the general
fund along with other moneys so turned over to the Treasurer. (c)
Locating Owner. Upon receipt of any such property, the Director of Public Safety
shall make diligent effort to locate the rightful owner thereof and to return
such property to such owner. No property shall be surrendered by the Director
of Public Safety until any and all charges for taking possession, keeping and
storing such property shall be paid. Before surrendering any such property, the
Director of Public Safety shall require such evidence of ownership as may be appropriate
in each case. In the event the name and post office address of the owner of any
such property is known, notice of the retention of such property, of the requirements
of this section pertaining to the sale thereof on the event it shall remain unclaimed
within forty-five (45) days, and of the limitation on the right of the owner to
reclaim such property, as set forth in subsection (e) hereof, shall be given by
the Director of Public Safety to such owner by certified mail, return receipt
requested. (d)
Unclaimed; Sale. Any such property other than money and negotiable securities,
which shall remain unclaimed for a period of forty-five (45) days, or which shall
not be returned to the owner thereof within such period because of the owner's
failure, refusal or neglect to pay the charges for taking possession, keeping
and storing such property, as hereinbefore set forth, shall be considered as abandoned
property and shall be sold at public auction. Where the name and a post office
address of the owner of such abandoned property is known, the Director of Public
Safety shall give to such owner not less than ten (10) days written notice of
the time and place of such sale, by certified mail, return receipt demanded, directed
to such owner at his last known post office address. Notice of such sale shall
also be published in two consecutive issues of a newspaper of general circulation
in the Village of Beverly Hills. The Director of Public Safety, or his deputy,
shall conduct the sale and shall sell such property at the best price possible.
All proceeds of such
sales shall be promptly turned over to the Village Treasurer for deposit in the
general fund of the Village. The Director of Public Safety or his deputy, shall
deliver bills of sale and such other papers as may be necessary to transfer property
title of any property sold at such sale. The owner of any such property may not
purchase the same at an auction sale unless the price bid and paid therefore shall
be sufficient to cover all costs of taking possession of, keeping, storing and
selling such property. (e)
Effect of Sale. Upon the sale of any such property all rights of the owner therein
shall be extinguished, and such owner shall thereafter have no claim upon such
property nor for the value thereof, against the Village of Beverly Hills or any
of its officers, agents or employees or against any person who shall purchase
such property at auction sale. (f)
Vehicles. In the case of the sale of any abandoned motor vehicle, the Director
of Public Safety shall notify the Secretary of State of such abandonment, and
the proceedings for such sale shall be in accordance with the provision of Section
252 (b) of Act No. 300 of the Public Acts of 1949 as amended, known as the Michigan
Vehicle Code. Any surplus received at such sale, after costs of the sale, all
charges for taking possession, keeping and storing have been deducted, shall be
returned to the owner of such vehicle. (g)
Gambling Devices; Weapons; Perishable Goods. The Director of Public Safety may
destroy gambling paraphernalia, any dangerous weapons or other articles which
may be dangerous to store, and any perishable goods for which storage may be impracticable,
or shall otherwise dispose of them according to law. (h)
Records. The Director of Public Safety shall maintain accurate records of all
personal property impounded by or coming into the possession of the Village or
any of its officers, agents or employees, which records, among other things, shall
show a brief description of each item; the name and last known post office address
of the owner thereof if known; a copy of all notices mailed and published, to
which the return receipts from any certified mail shall be attached; the cost
of taking possession, keeping and storing such property; if reclaimed, the person
to whom the property was delivered and the amount receipted therefore; if sold,
the name and address of the purchaser and the amount paid therefore; and such
other information as may be appropriate. 3.08
RETIREMENT SYSTEM ESTABLISHED
Effective Date. The Beverly Hills Retirement System is hereby created and established
by authority given in Section 4.13 of the Village Charter. The effective date
of the retirement system shall be July 1, 1961. (a)
Definitions: The following words and phrases as used in this section, unless a
different meaning is plainly required by context, shall have the following meanings: Accounts
Receivable: Those receivables of a system which presumably will be converted into
cash during the next twelve (12) months, including but not limited to, employee
contributions, employer contributions due from other funds, and employer contributions
due from other units of government. Accumulated
Contributions: The sum of all amounts deducted from the compensation of a member
and credited to his individual account in the members deposit fund, together with
regular interest thereon. Effective the 1st day of July, 1976, no amounts will
be deducted from the compensation of members and a member's accumulated contributions
will consist of the amount credited to his individual account in the members deposit
fund that date together with such regular interest as thereafter accrues to his
account. Assets:
For the purpose of meeting asset limitations contained in this act, means the
total of the cash, accounts receivable, and investments of a system valued at
cost. Beneficiary:
Any person, except a retirant, who is in receipt of a pension or other benefit
payable from funds of the retirement system. Board
of Trustee's or Board: The Board of Trustees provided for in this Ordinance. Compensation:
The salary and wages paid a member for personal services rendered to the Village
of Beverly Hills, including longevity pay, vacation pay, holiday pay, cost of
living (cola), sick leave pay while absent from work and items of deferred compensation
as provided by Board Rule. Compensation does not include overtime pay, allowances
for clothing, cleaning, equipment, travel and similar items, reimbursement of
expenses incurred, bonuses, termination or severance pay, payment in consideration
of unused sick leave, the value of any fringe benefit, salary, wages and any other
items which are the basis of benefits under another retirement program, or items
of a similar nature, as provided by Board Rule. Council:
The Council of the Village of Beverly Hills. Credited
Service: The service credited a member to the extent provided for in this Ordinance. Final
Average Salary: The average of the highest annual compensation paid a member of
the Village during any period of two (2) consecutive years of his credited service
contained within his five (5) years of credited service immediately preceding
termination of his last employment by the Village as a Public Safety Officer.
If he has less than two (2) years of credited service his final average salary
shall be the average of his annual compensations received during his total years
of credited service. Gender:
The masculine gender shall include the feminine gender, and words of the singular
number with respect to persons shall include the plural number, and vice-versa.
Invest or Investment:
The utilization of money in the expectation of future returns in the form of income
or capital gain. Investments initially purchased in accordance with this act which
subsequently do not qualify for purchase for any reason, shall be considered to
continue to meet the requirements of this act. Investment
Fiduciary: A person who does any of the following: (1) Exercises any discretionary
authority or control in the investment of a system's assets. (2) Renders, for
a fee, investment advice for a system. Member:
Any person who is included in the membership of the retirement system. Net
Earnings Available for Fixed Charges: The net income after deducting operating
and maintenance expenses, taxes other than federal and state income taxes, depreciation,
and depletion, but excluding extraordinary expenses appearing in the regular financial
statement of the system. Obligations:
The bonds, notes, collateral trust certificates, convertible bonds, debentures,
equipment trust certificates, conditional sales agreements, guaranteed mortgage
certificates, pass-through certificates, participation certificates, mortgages,
trust deeds, general obligations bonds, revenue bonds, or other similar interest
bearing instruments of debt. Obligations may be secured or unsecured and may be
publicly offered or privately placed. Pension:
An annual amount, payable from funds of the retirement system, throughout the
life of a person or for a temporary period, as provided in this Ordinance. All
pensions shall be paid in equal monthly installments. Pension
Reserve: The present value of all payments to be made on account of any pension
and shall be computed based upon such mortality and other tables of experience,
and regular interest, as the Council shall from time to time adopt. Public
Safety Officer: Any officer or employee in the Department of Public Safety of
the Village who holds the rank of patrolman, including probationary patrolman,
or higher rank. The term "Public Safety Officer" shall not include (1)
any civilian employee in the said Department of Public Safety, nor (2) any person
who is temporarily employed as a Public Safety Officer, nor (3) any person who
is privately employed as a Public Safety Officer or as a Policeman or Fireman. Regular
Interest: Such rate or rates of interest per annum, compounded annually, as the
Council shall from time to time determine. Retirant:
Any member who retires from the employ of the Village with a pension payable from
funds of the retirement system. Retirement:
A member's withdrawal from Village employment with a pension payable from funds
of the retirement system. Retirement
System or Systems: The Beverly Hills Retirement System created and established
by this Ordinance. Service:
The service rendered to the Village by a Public Safety Officer in the employ of
the Village. Village:
The Village of Beverly Hills, Michigan. Village
Council: The legislative body of the Village of Beverly Hills, Michigan. Voluntary
Retirement Age: For a Public Safety Officer means age fifty-five (55) years. (b)
Board of Trustees: There is hereby created a Board of Trustees in whom is vested
the power and authority to administer, manage, and operate the retirement system,
and to construe and make effective the provisions of this Ordinance. The Board
shall consist of five (5) trustees, as follows: 1.
The President of the Village, to serve by virtue of his office. 2.
A Councilman to be selected by the council to serve at the pleasure of the Council. 3.
A citizen, who is an elector of the Village, and who is not eligible to participate
in the retirement system as a member or retirant, to be appointed by the Village
President by and with the consent of the Council. 4.
Two Public Safety Officers to be elected by the Public Safety Officers. The said
elections shall be held under such rules and regulations as the Board of Trustees
shall from time to time adopt. Provided, that the first such election shall be
held under such rules and regulations as the Council shall adopt. (c)
Trustees' Terms of Office: For the first Board of Trustees, the term of office
of the citizen trustee provided for in Section 3.08(b) (3) hereof shall expire
June 30, 1964; the term of office of the Public Safety Officer trustee receiving
the highest number of votes shall expire June 30, 1963, and the term of office
for the office for the Public Safety Officer receiving the next highest number
of votes shall expire June 30, 1962. Thereafter the terms of office for the trustees
provided for in Section 3.08(b) (3) and (4) hereof shall be three (3) years. Each
trustee shall continue to serve as trustee until his successor has qualified.
(d) Vacancy on Board;
How Filled: In the event a trustee provided for in Section 3.08(b) (1), (2) or
(3) hereof ceases to be an officer or employee of the Village, or in the event
any trustee provided for in Section 3.08(b) (3) or (4) hereof shall fail to attend
scheduled meetings of the Board of Trustees for three (3) consecutive meetings,
unless in each case excused for cause by the remaining trustees attending such
meetings, he shall be considered to have resigned from the Board and the Board
shall by resolution declare his office of trustee vacated as of the date of adoption
of such resolution. If a vacancy occurs in the office of trustee, the vacancy
shall be filled for the unexpired portion of the term, in the same manner as the
office was previously filled. (e)
Meetings of Board; Quorum; Vote; Proceedings: The Board of Trustees shall hold
meetings regularly, at least one (1) each quarter year, and shall designate the
time and place thereof. Three (3) trustees shall constitute a quorum at any meeting
of the Board. Each trustee shall be entitled to one (1) vote on each question
before the Board and at least three (3) concurring votes shall be required for
a decision by the Board at any of its meetings. The Board shall adopt its own
rules of procedure and shall keep a record of its proceedings. All meetings of
the Board shall be public. (f)
Retirement System Officers. The Board of Trustees shall designate a Chairman and
a Vice-Chairman from its own number. 1.
The Village Treasurer shall be secretary of the retirement system and shall serve
as its administrative officer. 2.
The Village Treasurer shall be treasurer of the retirement system and the custodian
of its funds. 3.
The Board of Trustees shall designate an actuary or actuarial firm who shall be
the technical advisor to the Board on matters regarding the operation of the retirement
system, and who shall perform such other duties as are required of him under the
provisions of this Ordinance. 4.
The Village Attorney shall be legal advisor of the Board of Trustees. 5.
The Board of Trustees shall have the authority to employ such medical and other
professional services required to carry out the provisions of this Ordinance.
Compensation for such services shall be fixed by the Board subject to the approval
of the Council. (g)
Annual Reports. The secretary shall keep, or cause to be kept, such data as shall
be necessary for an actuarial valuation of the retirement system. The Board of
Trustees shall annually, or before February 1, render a written report to the
Council showing the fiscal transactions of the retirement system for the preceding
fiscal year. the Board shall furnish the Council such additional information regarding
the operation of the retirement system as the Council shall from time to time
request. (h)
Adoption of Experience Tables and Regular Interest. The Council shall from time
to time adopt such mortality and other tables of experience, and a rate or rates
of regular interest as are necessary in the operation of the retirement system
on an actuarial basis. (i)
Membership. 1.
The membership of the retirement system shall include all Public Safety Officers
who are in the employ of the Village June 30, 1961, and all persons who become
Public Safety Officers after June 30, 1961. 2.
In any case of doubt as to the membership status of any individual the Board of
Trustees shall decide the question and its decision shall be final. (j)
Termination of Membership. Except as otherwise provided in this Ordinance, should
any member leave the employ of the Village as a Public Safety Officer, for any
reason except his retirement or death, he shall thereupon cease to be a member
and his credited service at that time shall be forfeited by him. Should he be
reemployed by the Village as a Public Safety Officer he shall again become a member
of the retirement system. If his said reemployment occurs within a period of one
(1) year from and after the date he last separated from Village employment as
a Public Safety Officer his credited service last forfeited by him shall be restored
to his credit. Provided, that he returns to the members deposit fund the amount
he withdrew therefrom together with regular interest from the date of withdrawal
to the date of repayment. Upon his retirement or death he shall thereupon cease
to be a member. (k)
Credited Services. The Board of Trustees shall fix and determine by appropriate
rules and regulations, consistent with the provisions of this Ordinance, the amount
of service to be credited any member; Provided, that in no case shall less than
ten (10) days of service rendered in any calendar month be credited as a month
of service; nor shall less than ten (10) months of service rendered in any calendar
year be credited as a year of service; nor shall more than one (1) year of service
be credited any member for all service rendered by him in any calendar year. (l)
War Service Credit. In the event a member, who while employed by the Village,
enters the armed forces of the United States during any period of compulsory military
service and re-enters the employ of the Village as a Public Safety Officer, such
armed service rendered by him, not to exceed an aggregate of five (5) years, shall
be credited him as Village service. Provided, that (1) his re-employment by the
Village occurs within six (6) months from and after termination of such armed
service actually required of him, and (2) he pays into the members deposit fund
the amount he may have withdrawn therefrom, together with regular interest from
the date of withdrawal to the date of repayment. In any case of doubt as to the
period to be so credited any member, the Board of Trustees shall have final power
to determine such period. During the period of such armed service and until his
return to Village employment, his contributions to the retirement system shall
be suspended and any balance standing to his credit in the members deposit fund
shall be accumulated at regular interest. No credit hereunder shall be given to
a member who enlists or volunteers for the armed forces while the United States
is not in a state of declared war by Congress or national emergency declared by
the President of the United States. Notwithstanding any other provision of this
ordinance, contributions, benefits, and service credit with respect to qualified
military service will be provided under the retirement system in accordance with
Section 414(u) of the Internal Revenue Code. This subsection applies to all qualified
military service on or after December 12, 1994. {Ord. 315; 8-16-03} (m)
Normal Retirement. 1.
Any member who has attained or attains the age of sixty-five (65) years shall
be separated from the employ of the Village on the first day of the calendar month
next following the month in which he attains age sixty-five (65) years; Provided,
that this paragraph shall be subject to paragraph (2) of this section. 2.
Any member who has attained or attains age sixty-five (65) years may be continued
in Village employment for periods not to extend beyond this attainment of age
seventy (70) years. Provided, that his continuance in Village employment is (1)
requested by him in writing, (2) approved by the Director of Public Safety, and
(3) approved by the Council. 3.
He shall receive no more retirement system credit after attaining the age of sixty-five
(65). 4.
If, at the time of a member's separation from Village employment, as provided
in this section, he has ten (10) or more years of credited service he shall be
entitled to a pension provided for in Section 3.08(o) hereof. (n)
Voluntary Retirement. Any member, who has ten (10) or more years of credited service
and has attained or attains his voluntary retirement age (55), may retire upon
his written application filed with the Board of Trustees setting forth at what
time, not less than thirty (30) days nor more than ninety (90) days subsequent
to the execution and filing thereof, he desires to be retired. Effective December
31, 1987, any member of the Public Safety Department who has attained age fifty
(50) years with twenty-five (25) years of credited service may retire upon
his written application filed with the Board of Trustees setting forth at what
time, not less than thirty (30) days nor more than ninety (90) days subsequent
to the execution and filing thereof, he desires to be retired. Upon his retirement
he shall receive a pension provided for in Section 3.08(o) hereof. {Ord. 315;
8-16-03} (o)
Straight Life Pension. Upon the retirement of a member, as provided in this Ordinance,
the member shall receive a straight life pension equal to 2.0 percent of his/her
final average salary multiplied by the number of years, and fraction of a year,
of his/her credited service. The member shall have the right to elect an option
provided for in Section 3.08(r).
1. Effective January 1, 1986, the Public Safety employees of sergeant and above
will be provided the additional retirement benefit of an increased multiplier
from two percent to two and one-quarter percent from the time the employee retires
to the day before the retiree turns age sixty-two. Effective upon the retiree's
sixty-second birthday, the multiplier shall revert to 2.00 percent.
2. Effective March
1, 1991, the retirement benefit shall be revised to provide a multiplier of two
and one-quarter percent until the retiree reaches age sixty-two or the retiree's
adjusted earliest date of eligibility for Social Security payments, whichever
is earlier. At age sixty-two or the retiree's adjusted earliest date of eligibility
for Social Security payments, whichever is earlier, the multiplier shall be two
percent. 3.
Effective January 1, 1994, the retirement benefit for member shall be revised
to provide a multiplier of two and one-quarter percent until the retiree reaches
age sixty-two or the retiree's adjusted earliest date of eligibility for Social
Security payments, whichever is later. At age sixty-two or the retiree's adjusted
earliest date of eligibility for Social Security payments, whichever is later,
the multiplier shall be two percent. {Ord. 277, 6-16-96} 4.
Effective January 1, 2000, the retirement benefit shall be revised to provide
a multiplier of two and one-half percent at all ages; there will be no multiplier
reduction at date of eligibility for social security payments. 5.
Any member who retires from the Village under this retirement system after January
1, 2003 shall receive a 2% annual escalator (compounded) for a period of ten (10)
years, beginning in the sixth year of retirement and concluding after the fifteenth
year of retirement. This escalator provision shall continue for the surviving
spouse of a retiree who has elected the survivor option; provided that said spouse
was the spouse of the member on the date of his/her retirement. {Ord. 315; 8-16-03} (p)
Straight Life Refund Provision. If a retirant dies before he has received in straight
life pension payments an aggregate amount equal to his accumulated contributions
standing to his credit in the members deposit fund at the time of his retirement,
the difference between his said accumulated contributions and the said accumulated
contributions and the said aggregate amount of straight life pension payments
received by him shall be paid from the pension reserve fund to such person or
persons as he shall have nominated by written designation duly executed and filed
with the Board of Trustees. If there be no such designated person or persons surviving
the said retirant such difference, if any, shall be paid to his legal representative.
No benefits shall be paid under this section on account of death of a retirant
if he elected option A or B provided for in Section 3.08(r) hereof.
(q) Deferred Retirement. Should any member who has ten (10) or more years of credited
service leave the employ of the Village prior to his attainment of his voluntary
retirement age, for reasons except his disability retirement or death, he shall
be entitled to a pension provided for in Section 3.08(o) hereof, provided he does
not withdraw his accumulated contributions standing to his credit in the member
deposit fund. His said pension shall begin the first day of the calendar month
next following the month in which his application for same is filed with the Board
of Trustees on or after his attainment of age fifty-five (55) years. {Ord. 315;
8-16-03} (r)
Pension Options. Prior to the effective date of a member's retirement, but not
thereafter, he/she may elect to receive his/her pension as a straight life pension
payable throughout his/her life, or he/she may elect to receive the actuarial
equivalent, at that time, of his/her straight life pension in a reduced pension
payable throughout his/her life, and nominate a beneficiary, in accordance with
the provisions of option A or B set forth below: Option
A. Upon the death of a retirant, who elected Option A., his/her reduced pension
shall be continued throughout the life of and paid to such person, having an insurable
interest in his/her life, as he/she shall have nominated by written designation
duly executed and filed with the Board of Trustees prior to the effective date
of his/her retirement. Effective January 1, 1994, in the event the designated
beneficiary under Options A or B predeceases the retirant, the retirant's benefit
shall revert to the amount of a normal straight life pension, or
Option B. Upon the
death of a retirant, who elected Option B, one-half his/her reduced pension shall
be continued throughout the life of and paid to such person, having an insurable
interest in his/her life, as he/she shall have nominated by written designation
duly executed and filed with the Board of Trustees prior to the effective date
of his/her retirement. Effective January 1, 1994, in the event the designated
beneficiary under Options A or B predeceases the retirant, the retirant's benefit
shall revert to the amount of a normal straight life pension. {Ord. 277, 6-16-96} (s)
Disability Retirement. Upon the application of a member, or his department head,
a member who (1) is in the employ of the Village, (2) has ten (10) or more years
of credited service, and (3) becomes totally and permanently disabled for duty
as a public safety officer, by reason of a personal injury or disease, may be
retired by the Board of Trustees. Provided, that after a medical examination of
the said member, by or under the direction of a medical committee consisting of
three (3) physicians, one of whom shall be named by the Board, one by the said
member, and the third physician by the first two physicians so named, the said
medical committee certifies to the .Board, in writing, that (1) the said member
is physically or mentally totally disabled for duty as a Public Safety Officer,
(2) his disability will probably be permanent and (3) the said member should be
retired. The ten (10) years of service requirement contained in this section shall
be waived in the case of any member whom the Board finds (1) to be totally and
permanently disabled as the natural and proximate result of a personal injury
or disease arising out of and in the course of this actual performance of duty
as a Public Safety Officer in the employ of the Village, and (2) to be in receipt
of, or entitled to receive workmen's compensation on account of his said physical
or mental disability. (t)
Disability Pension. 1.
Upon a member's retirement on account of disability, as provided in Section 3.08(s)
hereof, he shall receive a disability straight life pension computed according
to the provisions of Section 3.08(o) hereof, notwithstanding that he might not
have attained his voluntary retirement age. Provided, that his said disability
straight life pension shall not be less than twenty percent (20%) of his final
average salary. Upon his retirement he shall have the right to elect an option
provided for in Section 3.08(r) hereof. 2.
Upon termination of his workmen's compensation payments, if any, arising on account
of his Village employment, a disability retirant shall be given service credit
for the period he was in receipt of workmen's compensation and his disability
pension payable thereafter shall include such additional service credit. In the
event he is paid a single sum in lieu of weekly workmen's compensation the period
covered by such single sum shall be considered to be the number of weeks determined
by dividing the applicable weekly workmen's compensation into the said single
sum payment. 3.
Any pensions payable under this section shall be subject to Section 3.08(u) hereof.
(u) Re-examination of Disability Retirement. 1.
At least once each year during the first five (5) years following the retirement
of a member with a disability pension, and at least once in each three (3) year
period thereafter, the Board of Trustees may, and upon the retirant's application
shall, require a disability retirant, who has not attained his voluntary retirement
age to undergo a medical examination to be made by or under the direction of a
physician designated by the Board. Should the said retirant refuse to submit to
such medical examination in any such period, the Board may suspend payment of
his disability pension until his withdrawal of such refusal. If such refusal continues
for one (1) year all his rights in and to a disability pension may be revoked
by the Board. If upon such medical examination of the retirant the said physician
reports to the Board that the said retirant is physically able and capable of
resuming employment with the Village as a Public Safety Officer he shall be returned
to active service in the employ of the Village and his disability pension shall
terminate. In returning the said retirant to Village employment as provided herein,
reasonable latitude shall be allowed the Village in placing him in a position
commensurate to the rank or position held by him at time of his retirement. 2.
In the event a disability retirant, who has not attained his voluntary retirement
age, becomes engaged in a gainful occupation, business or employment during the
three (3) year period immediately following his disability retirement, paying
more than the difference between his annual rate of compensation at the time of
his retirement and his disability pension, his disability pension shall be reduced
to an amount which together with the amount so earned by him shall equal but not
exceed his annual rate of compensation. For each of these three (3) years following
disability retirement, the retirant shall provide a statement of earnings for
the prior year in a form deemed appropriate by the Board of Trustees. Should the
retirant's earnings change the reduction in his disability pension, it shall be
correspondingly adjusted. Following
the three (3) year period end and continuing until the retirant reaches voluntary
retirement age, the retirant may petition in writing the Board of Trustees to
adjust the income ceiling imposed by the preceding paragraph. A retirant may petition
the Board of Trustees one time in each two (2) year period. Upon receipt of such
a petition, the board of Trustees shall review same and render its decision within
ninety (90) days of receipt of the petition. Any decision by the Board of Trustees
shall consider the following standards: a.
Income level at retirement; b. Income level at time of petition; c. Physical
and mental ability of retirant; d. Amount of increase sought with reasons
for requested increase; e. Years remaining until retirant reaches voluntary
retirement age; f. Whether any adjustment should be based on any of the following:
(1) A flat percentage
increase; (2) The performance of the Consumer Price Index; (3) Any Federal
indicators relevant to Social Security adjustments; (4) Any other factors
deemed relevant by the Board of Trustees. The
decision of the Board of Trustees shall be in writing. 3.
A disability retirant who has been or shall be returned to active service in the
employ of the Village, as provided in this section, shall again become a member
of the retirement system. His credited service at the time of his retirement shall
be restored to full force and effect. He shall be given service credit for the
period he was receiving a disability pension provided for in this Ordinance if
within such period he was in receipt of workmen's compensation on account of his
Village employment; otherwise, he shall not be given service credit for such period.
(v)
Non-Duty Death Benefits. Any member who continues in the employ of the Village
on or after the date he acquires ten (10) years of credited service and (1) dies
while in the employ of the Village, and (2) leaves a widow, or in the case of
an unmarried member leaves a father or mother whom the Board of Trustees finds
to be dependent upon the said member for at least fifty percent (50%) of his or
her support, the said widow or dependent father or dependent mother, as the case
may be, shall receive a pension computed according to Section 3.08(o) and 3.08(r)
hereof, in the same manner in all respects as if the said member had (1) retired
the day preceding the date of his death notwithstanding that he might not have
attained his voluntary retirement age, (2) elected Option A, and (3) nominated
his said widow or dependent father or dependent mother, as the case may be, as
beneficiary. In the event of the remarriage of the said beneficiary to whom a
pension is being paid, his or her pension shall terminate. (w)
Duty Death Benefits. In the event a member with less than ten (10) years of credited
service dies while in the employ of the Village and the Board of Trustees finds
(1) his death to be the result of an injury or disease arising out of and in the
course of his employment with the Village, and (2) that his eligible dependents
are in receipt of workmen's compensation on account of his death, he shall, as
of the date of his death, be granted a sufficient number of years of service to
give him a total of ten (10) years of credited service, any provisions of this
Ordinance to the contrary notwithstanding. (x)
Subrogation. If a person becomes entitled to a pension payable from funds of the
retirement system as the result of an accident or injury caused by the act of
a third party, the Village shall be subrogated to the rights of the said person
against said third party to the extent of benefits which the Village pays or becomes
liable to pay. (y)
Refund of Member's Accumulated Contributions. 1.
Should any member cease to be employed by the Village and not be entitled to a
pension payable from funds of the retirement system he shall be paid his accumulated
contributions standing to his credit in the members deposit fund upon his application
therefor filed with the Board of Trustees. 2.
Except as otherwise provided in this Ordinance, upon the death of a member his
accumulated contributions standing to his credit in the members deposit fund at
the time of his death shall be paid to such person or persons as he shall have
nominated by written designation duly executed and filed with the Board of Trustees.
If there be no such designated person or persons surviving the said member his
said accumulated contributions shall be paid to his estate. 3.
Refunds of accumulated contributions as provided in this section may be made in
a single sum or in installments as the Board of Trustees may from time to time
determine by appropriate rules and regulations. (z)
Members Deposit Fund. The members deposit fund is hereby created. It shall be
the fund in which shall be accumulated, at regular interest, the contributions
deducted from the compensations of members and from which shall be paid refunds
of accumulated contributions, as provided in this Ordinance. 1.
Subject to any eligibility rules established by Section 3.08(i), a member's contributions
to the retirement system shall be the sum of 3 percent (3%) of the first $4,800
of his annual compensation plus 6 percent (6%) of the portion, if any, of his
annual compensation in excess of $4,800. Effective the 1st day of July, 1976,
a member shall not be required to make additional contributions to the retirement
system. Contributions already made and standing to a member's account in this
fund shall remain in this fund and continue to be credited with regular interest
until transferred to the pension reserve fund or distributed in accordance with
this Ordinance. 2.
The officer or officers responsible for making up the payroll shall cause the
contributions provided for in this section to be deducted from the compensations
of each member on each and every payroll, for each and every payroll period, from
the date of his entrance in the retirement system to the date of his retirement
or prior separation from Village employment, until the 30th day of June, 1976.
The members' contributions provided for shall be made notwithstanding that the
minimum compensation provided by law for any member shall be thereby changed.
Every member shall be deemed to consent and agree to the deductions made and provided
for herein and payment of his compensation less said deductions shall be a full
and complete discharge and acquittance of all claims and demands whatsoever for
the services rendered by said person during the period covered by such payment,
except as to benefits provided by this Ordinance. Each of said amounts shall be
deducted by the Village Treasurer and when deducted shall be paid to the retirement
system and shall be credited to the members deposit account of the member from
whose compensation said deduction was made. 3.
In addition to a member's contributions, as hereinbefore provided, a member shall
deposit in the members deposit fund, by a single contribution or by an increased
rate of contribution, as approved by the Board of Trustees, the amounts he may
have previously withdrawn therefrom and not repaid thereto, together with regular
interest from the date of withdrawal to the date of repayment. In no case shall
any member be given credit for service rendered prior to the date he withdrew
his accumulated contributions until he repays to the members deposit fund all
amounts due the said fund by him. 4.
Upon the retirement of a member his accumulated contributions shall be transferred
to the pension reserve fund. At the expiration of a period of three (3) years
from the date a member ceases to be a member any balance standing to his credit
in the members deposit fund, unclaimed by the said member or his estate, shall
be transferred to the pension reserve fund. Provided, that no other disposition
of the said balance is specifically provided for in this Ordinance. (aa)
Pension Reserve Fund. The pension reserve fund is hereby created. It shall be
the fund in which shall be accumulated contributions made by the Village to the
retirement system, and from which shall be paid pensions as provided in this Ordinance.
Upon the basis of such mortality and other tables of experience, and regular interest,
as the Council shall from time to time adopt, the actuary shall annually compute
the pension reserve (1) for pensions being paid retirants and beneficiaries, and
(2) for service rendered and to be rendered by members. The portions of the said
pension reserves which are not financed by members' contributions shall be financed
by annual appropriations to be made by the Village. The said Village appropriations
shall be determined according to paragraphs (1), (2) and (3) of this section. 1.
The appropriation for members' current service shall be a percent of their annual
compensations which will produce an amount which if paid annually by the Village
during their future service will be sufficient to provide the pension reserves,
at the time of their retirements or deaths, for the portions of the pensions,
not financed by the members' contributions, to be paid them based upon their future
service; and 2.
The appropriation for members' accrued service shall be a percent of their annual
contributions which will produce an amount which if paid annually by the Village
over a period of years, to be determined by the Council, will amortize, at regular
interest, the unfunded pension reserves for the accrued service portions of the
pensions to which they may be entitled; and 3.
The appropriation for pensions being paid retirants and beneficiaries shall be
a percent of the annual compensations of members which will produce an amount
which if paid annually by the Village over a period of years, to be determined
by the Council, will amortized, at regular interest, the unfunded pension reserve
liabilities for pensions being paid retirants and beneficiaries. 4.
In the event the amounts appropriated in the budget in any year are insufficient
to pay in full the amounts due in said year to all retirants and beneficiaries,
the amount of such insufficiency shall thereupon be provided by the appropriating
authorities of the Village. 5.
Should a disability retirant return to employment with the Village the pension
reserve, at that time, for the portion of his pension which was financed by his
accumulated contributions, at the time of his retirement, shall be transferred
to the members deposit fund and shall be credited to his individual account therein.
(bb)
Expense Fund. The Board of Trustees shall transfer from the Pension Reserve Fund
into the Expense Fund sufficient funds to pay the expenses for the administration
of the retirement system. {Ord. 315; 8-16-03} (cc)
Investment of Moneys. 1.
The Board of Trustees shall be the trustees of the assets of the retirement system
and shall have full power to invest and reinvest such assets, subject to the terms,
conditions, limitations, and restrictions imposed by the State of Michigan as
provided by Public Act 55 of 1982. The Board shall have the power to purchase
notes, bonds, or other obligations of the Village at any legally conducted public
or private sale, with or without advertising bids. The Board shall have the power
to hold, purchase, sell, assign, transfer, and otherwise dispose of any securities
and investments in which any of the moneys of the system have been invested, as
well as the proceeds of the said investments and any moneys belonging to the system.
2. All assets of the system shall be held for the sole purpose of meeting
disbursements for pensions and other payments authorized by this Ordinance and
shall be used for no other purpose whatsoever. 3.
The description of the various funds of the retirement system, namely, the members
deposit fund, the pension reserve fund, and the expense fund shall be interpreted
to refer to the accounting records of the system and not to the actual segregation
of moneys in the said funds of the system. (dd)
Trust Agreement. The Board of Trustees is authorized, with the prior approval
of the Council, to establish a retirement trust in order to finance the benefits
to be provided under the retirement system created and established by this Ordinance,
and in so doing, to execute a legal document, with the consent of the Council,
establishing such retirement trust. Such trust indenture shall include reasonable
rules and regulations consistent with this Ordinance in order to provide for any
administrative procedures not covered by this Ordinance, including procedures
to be utilized if all or a portion of the funds are to be invested with an insurance
company. Such trust indenture may include other provisions deemed necessary for
the satisfactory administration of the retirement system created and established
by this Ordinance. (ee)
Allowance of Regular Interest. All interest and other earnings on moneys and investments
of the retirement system shall be credited to an investment income account. The
Board of Trustees shall, at the end of each fiscal year, allow and credit regular
interest computed on members' individual balances in the members deposit fund
at the beginning of such fiscal year; and on the mean balance in the pension reserve
fund. Any excess interest earnings may be used to provide contingency reserves
or may be credited to the pension reserve fund, as the Board shall determine. (ff)
Method of Making Payments. All payments from moneys of the retirement system shall
be made by the Village Treasurer in accordance with Charter provisions governing
payments from the Village's general fund. Provided, that such payments shall be
made only upon authorization signed by two (2) persons designated by the Board
of Trustees. No such authorization for payment shall be executed unless the payment
was previously approved by a specific or continuing resolution adopted by the
Board. (gg)
Assignments Prohibited. The right of a person to a pension, to the return of accumulated
contributions, the pension itself, any optional benefit, any other right accrued
or accruing to any member, retirant, or beneficiary under the provisions of this
Ordinance and the moneys belonging to the retirement system shall not be subject
to execution, garnishment, attachment, the operation of bankruptcy or insolvency
laws, or any other process of law whatsoever, and shall be unassignable, except
as is specifically provided in this Ordinance, subject to Chapter 38 of the Michigan
Compiled Laws and the Internal Revenue Code of 1986. Provided, that should a member
be covered by a group insurance or prepayment plan participated in by the Village,
and should he be permitted to, and elect to, continue such coverage as a retirant,
he may authorize the Board of Trustees to have deducted from his pension the payments
required of him to continue such group insurance or prepayment plan; provided,
further, that the Village shall have the right of set off for any claim arising
from embezzlement by or fraud of a member, retirant or beneficiary. {Ord 315;
8-16-03}. (hh)
Errors. Should any change or error in the records of the Village or the retirement
system result in any person receiving from the system more or less than he would
have been entitled to receive had the records been correct, the Board of Trustees
shall correct such error and as far as practicable shall adjust the payment in
such manner that the actuarial equivalent of the benefit to which such person
was correctly entitled shall be paid.
(ii) Penalties. Whoever with intent to deceive shall make any statement or report
required under this Ordinance which is untrue, or shall falsify or permit to be
falsified any record of the retirement system, or shall otherwise violate the
provisions of this Ordinance, with intent to deceive, shall be deemed guilty of
a misdemeanor and fined not to exceed One Hundred Dollars ($100) or shall be imprisoned
for ninety (90) days, or both, in the discretion of the court, together with payment
of costs of prosecution. (jj)
Validity. If any provision in this Ordinance is for any reason held to be invalid
by any court of competent jurisdiction, such decision shall not affect the remaining
provisions of this Ordinance, or the Ordinance in its entirety. (kk)
Provisions to Assure Qualification under the Internal Revenue Code. The Village
intends the retirement system to be a qualified pension plan under Section 401
of the Internal Revenue Code, as amended, and that the trust be an exempt organization
under Section 501 of the Internal Revenue Code. The Board of Trustees shall administer
the retirement system so as to fulfill this intent. 1.
At any time prior to the satisfaction of all liabilities with respect to employees
and their beneficiaries under the trust which is a part of this ordinance, no
part of the corpus or income may be (within the taxable year or thereafter) used
for, or diverted to, purposes other than for the exclusive benefit of the employees
of the Village or their beneficiaries. 2.
The Member's benefits accrued under the ordinance shall be 100% vested (to the
extent funded) upon termination of or discontinuance of employer contributions
to the retirement system. 3.
Notwithstanding any other provision of this ordinance, the compensation of a Member
of the retirement system shall be taken into account for any year under the retirement
system only to the extent that it does not exceed the compensation limit established
in section 401(a)(17) of the Internal Revenue Code, as adjusted by the commissioner
of internal revenue. 4.
Notwithstanding any provision of the retirement ordinance to the contrary that
would limit a distributee's election under this subsection, a distributee may
elect, at the time and in the manner prescribed by the Board of Trustees, to have
any portion of an eligible rollover distribution paid directly, as a direct rollover,
to an eligible retirement plan specified by the distributee. The following definitions
shall apply with regard to this subsection: (a)
ELIGIBLE ROLLOVER DISTRIBUTION. Any distribution of all or a portion of the balance
of the credit of the distributee, except an eligible rollover distribution does
not include: any distribution that is one of a series of substantially equal periodic
payments (not less frequently that is annually made for the life (or life expectancy)
of the distributee or the joint lives (or joint life expectancies) of the distributee
and the distributee's designated beneficiary, or for a specified period of ten
years or more; any distribution to the extent the distribution is required under
Internal Revenue Code Section 401(a)(9); and the portion of any distribution that
is not includable in gross income. (b)
ELIGIBLE RETIREMENT PLAN. In the case of an eligible rollover distribution to
a participant, an individual retirement account described in Section 408(A) of
the Internal Revenue Code, an individual retirement annuity described in Section
408(B) of the Internal Revenue Code, an annuity plan described in Section 403(B)
of the Internal Revenue Code, or a qualified trust described in Section 408 of
the Internal Revenue Code, that accepts the distributee's eligible rollover distribution.
In the case of an eligible rollover distribution to a surviving spouse, an individual
retirement account or individual retirement annuity. (c)
DISTRIBUTEES. A Member or former Member, the surviving spouse of a Member or former
Member and the spouse or former spouse of a Member or former Member, with regard
to their interest, who is an alternative payee under a domestic relations order
defined in Section 414(P) of the Internal Revenue Code. (d)
DIRECT ROLLOVER. A payment by the retirement system to the eligible retirement
plan specified by the distributee. (e)
Beginning January 1, 2002, except as otherwise provided in this subsection, 'ELIGIBLE
RETIREMENT PLAN" means an individual retirement account described in section
408(A) of the Internal Revenue Code, an individual retirement annuity described
in section 408(B) of the Internal Revenue Code, an annuity plan described in section
403(A) of the Internal Revenue Code, or a qualified trust described in section
401(A) of the Internal Revenue Code, an annuity contract described in section
403(B) of the Internal Revenue Code, or an eligible plan under section 457(b)
of the Internal Revenue Code which is maintained by a state, political subdivision
of a state, or an agency or instrumentality of a state or political subdivision
of a state and which agrees to separately account for amounts transferred into
such eligible plan under section 457(b) of the Internal Revenue Code from this
retirement system, that accepts the distributee's eligible rollover distribution.
However, in the case of an eligible rollover distribution to a surviving spouse,
an eligible retirement plan means an individual retirement account or an individual
retirement annuity described above. (f)
Beginning January 1, 2002, "ELIGIBLE ROLLOVER DISTRIBUTION" means a
distribution of all or any portion of the balance to the credit of the distributee. Eligible
rollover distribution does not include any of the following: (1)
A distribution made for the life or life expectancy of the distributee or the
joint lives or joint life expectancies of the distributee and the distributee's
designated beneficiary. (2)
A distribution for a specified period of 10 years or more. (3)
A distribution to the extent that the distribution is required under section 401(a)(9)
of the Internal Revenue Code. (4)
The portion of any distribution that is not includable in federal gross income,
determined without regard to the exclusion for net unrealized appreciation with
respect to employer securities, except to the extent that the portion of a distribution
that is not includable in federal gross income is paid to either of the following: (i)
An individual retirement account or annuity described in section 408(a) or (b)
of the Internal Revenue Code. (ii)
A qualified defined contribution plan as described in section 401(A) or 403(A)
of the Internal Revenue Code that agrees to separately account for amounts transferred,
including separately accounting for the portion of the distribution that is includable
in gross income and the portion of the distribution which is not includable in
gross income. (5)
The provisions of this retirement system chapter notwithstanding, the Board of
Trustees shall at all times administer the retirement system in compliance with
the provisions of Section 415 of the Internal Revenue Code which are applicable
to public employee retirement plans and are hereby incorporated by reference.
In determining the 415 limit, compensation shall include all remuneration from
the Village within the meaning I.R.C. Section 415(c)(3). In the event the limitation
of I.R.C. Section 415(e) is exceeded, the employer-financed benefits will be reduced
so that the sum of the defined contribution plan fraction and the employer financed
benefit fraction will not exceed 1.0. The foregoing sentence shall no longer apply
after December 31, 1999. Required
distributions: (6)
The entire interest of each Member will be distributed, in accordance with Treasury
regulations 1.401(a)(9)-1 through 1.401(a)(9)-9, to such Member not later than
the required beginning date, or will be distributed, beginning not later than
the required beginning date, in accordance with regulations, over the life of
such Member or over the lives of such Member and a designated beneficiary (or
over a period not extending beyond the life expectancy of such Member or the life
expectancy of such Member and a designated beneficiary). The provisions of this
subsection shall supercede any provisions in this ordinance to the contrary. If
the distribution of the Member's interest has begun and the Member dies before
his entire interest has been distributed to him, the remaining portion of such
interest will be distributed at least as rapidly as under the method of distributions
being used as of the date of his death. If a Member dies before the distribution
of the Member's interest has begun, the entire interest of the Member will be
distributed within five years after the death of such Member. If any portion of
the Member's interest is payable to (or for the benefit of) a designated beneficiary,
such portion will be distributed (in accordance with regulations) over the life
of such designated beneficiary (or over a period not extending beyond the life
expectancy of such beneficiary), and such distributions begin not later than one
year after the date of the Member's death or such later date as the Secretary
may by regulations prescribe. If the designated beneficiary is the surviving spouse
of the Member, the date on which the distributions are required to begin shall
not be earlier than the date on which the Member would have attained age 70 ½,
and, if the surviving spouse dies before the distributions to such spouse begin,
this subparagraph shall be applied as if the surviving spouse were the Member.
The term "required beginning date" means April 1 of the calendar year
following the later of the calendar year in which the Member attains age 70 ½,
or the calendar year in which the Member retires. The life expectancy of a Member
and the Member's spouse (other than in the case of a life annuity) may be redetermined
but not more frequently than annually. Any distribution required under the incidental
death benefit requirements of subsection 401(A)(9) of the Code shall be treated
as a distribution required under this subsection of the ordinance. {Ord. 315;
8-16-03}
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