(a) The following shall be members of the supplemental pension system hereby created: Members of the fire department or police department of the city who belong to the general retirement and relief system, created by Act 929 on whose account the city makes no contribution or pays no tax, to the United States of America under the federal Social Security Act.
(b) As used in this subpart these terms have the meanings here given them:
(1) ACT 556 CREDITABLE SERVICE. A member’s service with the city during the period while the salary deductions of Section 45-37A-51.05 applied to him or her and also his or her service with the city during any period while salary deductions did not apply to him or her, provided he or she exercises the option subsection (d) or (e) accords him or her to have his or her service during the last mentioned period counted as Act 556 creditable services.
(2) BENEFIT. A benefit payable under this subpart to a member or to any person because of such person’s relation to a member.
(3) DEPENDENT. A person receiving a benefit on account of such person’s relation to a member.
(4) MEMBER. A member of the pension system established by this subpart.
(5) NONCREDITABLE SERVICES. A member’s service with the city during any period while the salary deductions of Section 45-37A-51.05 did not apply to him or her, provided however, that his or her service during such period shall not be considered noncreditable service after he or she has exercised the option subsection (d) or (e) accords.
(c)(1) It is the intention of the Legislature that this subsection shall not result in the reduction of any benefit payable to a member retiring prior to the date on which this subsection becomes applicable to the city or in the reduction of any benefit payable to the dependent of any such member, and shall be applicable only to those members who became members of the system after January 1, 1973. To achieve such intention it is hereby provided that this subsection shall not apply to any benefit the payment of which begins prior to the date whereon this subsection becomes applicable. All benefits the payment of which begins after the date whereon this subsection becomes applicable shall be subject to this subsection.
(2) In determining the amount of any benefit subject to this subsection, with the aforementioned exceptions, the board of managers shall consider only Act 556 creditable service as defined in subsection (b).
(d)(1) As used in this subsection these terms have the meanings herein given them:
a. FUTURE MEMBER. One who becomes a member subsequent to the effective date of this subsection.
b. LIABILITY FOR DEFICIENCY OF SALARY "DEDUCTIONS." Liability to the fund resulting from his or her converting his or her noncreditable service to Act 556 creditable service under this option.
c. PRESENT MEMBER. A person who is a member on the effective date of this subsection.
d. THE EFFECTIVE DATE OF THIS SUBSECTION. The date whereon this subsection becomes applicable to the city.
d. THIS OPTION. The option for which this subsection provides.
(2) A member's liability for deficiency of salary deductions shall be the sum of the following:
a. The amount which such member would have paid to the fund during all the period of his or her noncreditable service if during all of that period his or her salary had been that of a firefighter, in the case of a fireman or that of a patrolman, in the case of a policeman, at the time such noncreditable service accrued, and if such salary had been subject to the salary deduction provided for herein; and
b. Interest at the rate of six percent per annum on each separate salary deduction such member would have paid to the system had he or she been a member during all his or her noncreditable service, which interest shall be calculated for the period beginning on the dates on which the respective salary deductions would have been paid, had he or she been subject to the salary deduction provisions during all his or her noncreditable service, and ending on the date whereon the member discharges his or her liability for salary deductions by payment or executes the promissory note, provided for below, evidencing such liability.
(3) A present member shall exercise this option by doing one of the following not later than the ninetieth day subsequent to the effective day of this subsection: (i) by paying the fund in full the amount of his or her liability for deficiency of salary deductions which amount shall be determined in the manner below prescribed in this subsection, or (ii) by delivering to the board of managers a promissory note executed by him or her payable to the order of the fund evidencing his or her obligation to pay to the fund the amount required to discharge his or her liability for deficiency of salary deductions, which note shall provide for the interest and maturity date below prescribed. A future member shall exercise this option not later than the ninetieth day subsequent to the day on which he or she becomes a member of the system by discharging his or her liability for the deficiency amounts or executing the promissory note evidencing his or her liability within that period.
(4) The governing body of the city shall prescribe the rate of interest which the promissory note will require the member to pay on the unpaid balance of his or her liability for deficiency or salary deductions and shall prescribe the installments in which the note shall be payable, the last of which installment shall be payable not more than five years subsequent to the date whereon the note is executed.
(5) The city shall pay to the fund an amount equal to any amount contributed by a member under this subsection.
(e) New participants. Credit for service with the county or other municipality and with the city as a temporary employee. In the event a member employee becoming a participant, herein on or after July 1, 2007, shall have, prior to becoming a member, been employed (i) by the county under a merit system applicable to the county, (ii) by any other municipality in the county under the merit system applicable to such municipality, or (iii) by the city under the merit system applicable to the city as a temporary employee, he or she may receive credit for the prior service by paying to the city director of finance within 90 days after becoming a member an amount to be determined as follows:
(1) There shall first be determined the higher of the salary paid the member each month of the prior service by the city or by the county or such other municipality; or the amount which such member would have paid to the fund during all the period of his or her prior service if during all of that period his or her salary had been that of a firefighter, in the case of a fireman or that of a patrolman, in the case of a policeman, at the time such noncreditable service accrued, and if such salary had been subject to the salary deduction provided for herein.
(2) There shall then be computed the contribution which would have been deducted if the member had received such salary from the city as a member hereunder, the contribution and deduction being determined in accordance with this subpart on the date he or she became a member in the system.
(3) There shall then be determined the total of deductions at the rate of 10 and one-quarter percent to 15 percent based upon the rate of total of all contributions to be paid determined by the current actuarial evaluation for the year for a newly hired employee from the date they would have been made if the member had received such salary as a participant to the date he or she actually became a member in the system calculating each separate salary deduction such member would have paid to the system had he or she been a member during all his or her prior service, which interest shall be calculated for the period beginning on the dates on which the respective salary deductions would have been paid, had he or she been subject to the salary deduction provisions during all his or her prior service, and ending on the date whereon the member discharges his or her liability for salary deductions by payment.
(4) The total of all of the contributions which would have been made plus interest at the rate of six percent per annum as both are determined in this section, shall be the amount payable.
(5) The member desiring credit for service with the county or other municipality and with the city as a temporary employee shall pay the total actuarial percentage of contributions plus interest for the cost of the credited service benefit.
(6) The new participant is limited to purchasing a maximum of five years service.
(7) Any time purchased may not be used for the purposes of acquiring rights under the DROP plan.
(8) As used in this subsection these terms have the meanings herein given them:
a. FUTURE MEMBER. One who becomes a member subsequent to the effective date of this subsection.
b. LIABILITY FOR DEFICIENCY OF SALARY DEDUCTION. Liability to the fund resulting from his or her converting his or her prior service to this subpart creditable service under this option. The present member desiring such credit shall exercise the option set forth in this subsection no later than the ninetieth day after September 1, 2007 or if a future member subsequent to September 1, 2007, then by the ninetieth day upon which he or she becomes a member of this system.
c. PRESENT MEMBER. A person who is a member on the effective date of this subsection.
d. THE EFFECTIVE DATE OF THIS SUBSECTION. The date whereon this subsection becomes applicable to the city.
e. THIS OPTION. The option for which this subsection provides.
Last modified: May 3, 2021