Sec. 39-1. - Reserved.

Editor's note—

Ord. No. 93-079, § 1, adopted Nov. 4, 1993, repealed former § 39-1, which pertained to the prohibition of investments in companies doing business in South Africa.

Sec. 39-2. - Supplemental pension benefits for nonuniformed officers and employees—Covered employees.

(a)

Any covered employee, as the same is defined in section 39-32 who, by reason of the formula for the computation of pension benefits set forth in section 39-40, would otherwise be entitled to a monthly pension benefit in excess of $250.00, shall be entitled to receive, by way of supplemental benefit and payable out of the city treasury, that amount per month in excess of $250.00 per month to which he would otherwise be entitled; provided, that the total benefit payable per month to any employee shall not exceed $375.00.

(b)

Any current retiree receiving a benefit pursuant to article II or IV on July 1, 1990, shall be entitled to receive, by way of supplemental benefit and payable out of the city treasury, beginning with the supplemental benefit payable for July, 1990, that amount per month that is equal to one percent of his monthly pension benefit multiplied by his number of years of retirement under the plan, determined as of July 1, 1990, up to a maximum of 20 years, and the corresponding maximum total of 20 percent of this monthly pension benefit, provided that the total benefit payable per month to any such covered employee shall not exceed $375.00.

(c)

Cost-of-living increase, effective July 1, 1993 for park police pension plan members.

(1)

Effective on July 1, 1993, any member who has retired and commenced receipt of benefits prior to July 1, 1993, or any such member's surviving spouse, shall be entitled to an ad hoc cost-of-living benefit increase (COLA). The amount of the COLA payable to a member shall be equal to the product of multiplying "(1)" by "(2)" multiplied by "(3)" where:

"(1)" is equal to one percent times the number of complete or partial years from the date of retirement to June 30, 1993, up to a maximum of 20 percent; and

"(2)" is equal to the 1988 base salary level by rank at retirement of city policemen; and

"(3)" is equal to 0.79.

A surviving spouse shall be entitled to a COLA that is one-half of the COLA that would otherwise have been received by the member whom the surviving spouse survived. The amount of COLA stipulated above is conditional upon the continued funding of the cost of such COLA by the city with matching state contributions.

(2)

In the event that the state should cease its contributions prior to the completion of the amortization of the actuarial liability attributable to the COLA, determined as of July 1, 1993, the COLA shall be reduced respectively to reflect the insufficient contributions. Such reduced COLA shall be determined by multiplying the full COLA amount by the ratio of "(4)" to "(5)", where "(4)" is equal to the accumulated value with interest of all state and city contributions to the COLA less the accumulated value with interest of all COLA payments paid and "(5)" is the actuarial present value of future COLA payments determined, all determined as of the date the state contributions ceased. All calculations shall be made on the basis of the 1983 Group Annuity Mortality Table and interest at the rate of 8½ percent.

(d)

Cost-of-living increase, effective July 1, 2006, for park police pension members.

(1)

Effective as of July 1, 2006, any member who has retired and commenced receipt of benefits prior to January 1, 2005, or any such member's surviving spouse, shall be entitled to an ad hoc cost-of-living benefit increase (COLA). The amount of the COLA payable to a member shall be equal to the product of multiplying "(1)" by "(2)" by "(3)" multiplied by "(4)" where:

a.

"(1)" is equal to one percent times the number of complete or partial years from the date of retirement to January 1, 2005, up to a maximum of 20 percent;

b.

"(2)" is equal to the 1988 base salary level by rank at retirement of city policemen;

c.

"(3)" is equal to .864; and

d.

"(4)" is equal to .49.

A surviving spouse shall be entitled to 50 percent of the increase calculated above.

(2)

In the event that the state should cease its contributions prior to the completion of the amortization of the actuarial liability attributable to the COLA, then the above-referenced pension increases shall be deleted and revert to the benefit schedule in place before such increases were implemented. In addition, any and all city contributions to this COLA program shall cease.

(e)

Cost of living increase, effective July 1, 2001, for park police pension members. Effective on July 1, 2001, any member who has retired and commenced receipt of benefits prior to January 1, 1999, or any such members' surviving spouse, shall be entitled to an ad hoc cost-of-living benefit increase (COLA). The amount of the (COLA) payable to a member shall be equal to the product of multiplying "(1)" by "(2)" by "(3)" multiplied by "(4)," then divided by the number two (2):

(1)

Where:

a.

"(1)" is equal to 1 percent times the number of complete or partial years from the date of retirement to December 31, 1998, up to a maximum of 20 percent;

b.

"(2)" is equal to the 1988 base salary level by rank at retirement of city policemen;

c.

"(3)" is equal to .864; and

d.

"(4)" is equal to .98.

e.

Divide the product of the aforesaid multiplication by the number two. The result of the division shall constitute the amount of the COLA increase.

A surviving spouse shall be entitled to 50 percent of the increase calculated above.

(2)

In the event that the state should cease its contributions prior to completion of the amortization of the actuarial liability attributable to the (COLA), then the above-referenced pension increases shall be deleted and revert to the benefits schedule in place before such increases were implemented. In addition, any and all city contributions to this (COLA) program shall cease.

(f)

Cost of living increase, effective July 1, 2003, for park police pension members.

(1)

Effective on July 1, 2003, any member who has retired and commenced receipt of benefits prior to January 1, 2001, or any such members' surviving spouse, shall be entitled to an ad hoc cost-of-living benefit increase (COLA). The amount of the (COLA) payable to a member shall be equal to the product of multiplying "(1)" by "(2)" by "(3)" multiplied by "(4)", then divided by the number two, where:

a.

"(1)" is equal to one percent times the number of complete or partial years from the date of retirement to December 31, 2000, up to a maximum of 20 percent; and

b.

"(2)" is equal to the 1988 base salary level by rank at retirement of city policemen; and

c.

"(3)" is equal to .864; and

d.

"(4)" is equal to .98.

e.

Divide the product of the aforesaid multiplication by the number two. The result of the division shall constitute the amount of the COLA increase.

A surviving spouse shall be entitled to 50 percent of the increase calculated above.

(2)

In the event that the state should cease its contributions prior to completion of the amortization of the actuarial liability attributable to the (COLA), then the above-referenced pension increases shall be deleted and revert to the benefits schedule in place before such increases were implemented. In addition, any and all city contributions to this (COLA) program shall cease.

(Code 1968, § 20-68(a); Ord. No. 93-044, § 1, 7-8-93; Ord. No. 98-045(sub 1), § 1, 4-23-98; Ord. No. 01-095, § 1, 9-20-01; Ord. No. 03-053, § 1, 10-16-03; Ord. No. 06-057(sub 1), § 1, 8-31-06)

Sec. 39-3. - Same—Council members.

(a)

Each member of city council holding such office in January, 1989 and thereafter who has completed five years of service as a member of the city council and who is a covered employee as the same is defined in section 39-32 by virtue of being a participant in the "prior plan" set forth in article II of this chapter shall be eligible for retirement benefits as provided in this section in lieu of the provisions of article II of this chapter. For purposes of such participation, each member of city council who is a covered employee shall have a normal retirement date which shall be the first day of the month coincident with or next following the later of a participant's 55^th birthday and the completion of five years credited service, and there shall be no "early retirement date" after October 1, 1998. Notwithstanding any other provision of this chapter, each member of city council who is a covered employee shall be eligible for retirement benefits for all of his or her years and parts of years of service as a member of city council.

(b)

For members of city council eligible pursuant to the provisions of this section, the final annualized base salary for the final year during which the member served shall be used in the determination of benefits.

(c)

Any member of city council who is eligible pursuant to the provisions of this section, shall receive a pension at the annual rate three percent of his final annualized salary as a city council member multiplied by his years of such credited service as a city council member, but such benefit shall be reduced by the factor of 0.4 percent times the number of full calendar months by which his retirement date precedes his normal retirement date.

(Code 1968, § 20-68(b); Ord. No. 91-035, § 2, 6-20-91; Ord. No. 92-053(sub 1), § 3(k), 7-2-92; Ord. No. 98-103(sub 1), § 1, 9-30-98; Ord. No. 09-068, § 1, 11-19-09)

Sec. 39-4. - City employment of pension benefit recipients.

Participants in any of the city's pension plans set forth in the following articles of this chapter and their surviving spouses, if applicable, may be employed by the city, whether full-time or part-time, permanent or temporary, without suspension or other detrimental effect on their pension benefits, which they are receiving and to which they are otherwise entitled.

(Ord. No. 97-093, § 1, 12-4-97)

Sec. 39-5. - Retired city employees' medical program.

(a)

Title. This section shall be known as the city retiree medical program (the "program"). The program and any and all benefits provided hereunder shall not be subject to vesting, and may be diminished and/or completely discontinued at any time by ordinance of the city council.

(b)

Program eligibility. Subject to the restriction of subsections (1) and (2) below, the program is applicable to all full-time union, non-union, uniformed, and nonuniformed employees, including all elected or appointed officials, and specifically including the president and members of the city council. For purposes of this section 39-5, "appointed officials" shall mean those individuals serving in those offices and positions set forth in subsections (a) through (c) of section 7-101 of the Charter of the City of Wilmington.

(1)

Program eligibility for city employees employed on January 1, 2000 or hired after January 1, 2000 and before July 1, 2011. To be eligible for program benefits, a city employee employed by the city on January 1, 2000 or hired after January 1, 2000 and before July 1, 2011 must first be eligible for a city pension, or be a retired uniformed service employee receiving a pension benefit pursuant to the Delaware County and Municipal Pension Plan for Police/Firefighters as set forth in Chapter 88 of Title 11 of the Delaware Code. Any city employee meeting the employment criteria of this paragraph (1) who is eligible for city employee pension benefits pursuant to any of the city employee pension benefit programs of this chapter or the Delaware County and Municipal Pension Plan for Police/Firefighters as set forth in Chapter 88 of Title 11 of the Delaware Code shall then meet the following requirements in order to receive retiree medical program benefits pursuant to this section:

a.

Nonuniformed city employees who are not less than 55 years of age with not less than 20 years of service as city employees.

b.

Uniformed city employees who are not less than 55 years of age with not less than 20 years of city employee service.

c.

Any nonuniformed city employees who are not less than 65 years of age with not less than ten years of city employee service. This subsection shall apply only to those city employees who are on the city's payroll as of January 1, 2000. This subsection shall not apply to any city employee first employed by the city after January 1, 2000.

d.

Elected and appointed officials who are not less than 55 years of age with not less than five years of city employee service.

e.

Any of the aforesaid age requirements may be waived, provided that the employee is otherwise eligible for a "Rule of 85" pension benefit under section 39-276(b)(2) or (3).

f.

Any person who has been both an elected official of the city and, whether prior to being elected or after elected service, has been an appointed official and is not less than 55 years of age with not less than five years of city service.

(2)

Program eligibility for all city employees hired on or after July 1, 2011, and all officials who are elected or appointed on or after July 1, 2011. To be eligible for program benefits all full-time nonuniformed and uniformed city employees hired on or after July 1, 2011, and all officials who are elected or appointed on or after July 1, 2011, must first be eligible for a pension benefit pursuant to the Delaware County and Municipal Pension Plan for Police/Firefighters as set forth in Chapter 88 of Title 11 of the Delaware Code, the Delaware County and Municipal Pension Plan as set forth in Chapter 55A of Title 29 of the Delaware Code or one of the pension plans of the city. Any city employee or elected or appointed official meeting the employment criteria of this paragraph (2) who is eligible for a pension benefit pursuant to the Delaware County and Municipal Pension Plan for Police/Firefighters as set forth in Chapter 88 of Title 11 of the Delaware Code, the Delaware County and Municipal Pension Plan as set forth in Chapter 55A of Title 29 of the Delaware Code, or under one of the pension plans of the city shall then meet the following requirements in order to receive retiree medical program benefits pursuant to this section:

a.

Have attained 65 years of age;

b.

Have completed 20 years of service as a city employee, or five years of city service as an elected or appointed official;

c.

Commenced a pension benefit under the Delaware County and Municipal Pension Plan for Police/Firefighters, the Delaware County and Municipal Pension Plan, or one of the pension plans of the city within 90 days of their termination of employment with the city and enrolled in retiree medical benefits within 90 days of their termination of employment with the city, with the exception that the 90-day commencement and enrollment requirements for individuals whose most recent employment with the city was as elected or appointed officials shall be measured from the date of the commencement of their pensions. If a city employee eligible for retiree medical benefits under this paragraph (2) does not enroll in the retiree medical benefits in accordance with this paragraph (2)(c), or timely enrolls in retiree medical benefits under this paragraph (2)(c) and then drops the coverage, such employee shall not be permitted to later enroll or re-enroll in the retiree medical benefits; and

d.

Enrolled in Medicare Parts A and B as soon as they become eligible for Medicare.

(c)

Healthcare coverages.

(1)

For city employees employed on January 1, 2000 or hired after January 1, 2000 and before July 1, 2011, the program shall pay not less than 80 percent of the blended rate up to an annual maximum of $8,000.00 for eligible retirees who are less than 65 years of age. For city employees employed on January 1, 2000 or hired after January 1, 2000 and before July 1, 2011, the program shall pay not less than 80 percent of the blended rate up to an annual maximum of $4,000.00 for eligible retirees who are 65 years of age or older. "Blended rate" shall mean the average cost to the city for all active participants in the program.

(2)

For city employees hired on or after July 1, 2011, and officials appointed or elected on or after July 1, 2011, the program shall pay not less than 80 percent of the city's actual cost of insuring the employee up to an annual maximum of $4,000.00 for eligible retirees.

(d)

Spousal coverage.

(1)

Spouses and other eligible dependents of covered city employees who are eligible for the program under section 39-5(b) herein, shall be permitted to participate in the retiree medical program group plan at the group rate for the lifetime of the covered employee. Premiums shall be the responsibility of the retired city employee or covered spouse. Spouses shall continue to be eligible under the program after the death of the covered employee for so long as the spouses are receiving a pension benefit from the city or the Delaware County and Municipal Pension Plan or the Delaware County and Municipal Pension Plan for Police/Firefighters.

(2)

The premiums for coverage for the spouse and/or other eligible dependents of the retired employee shall be published annually and shall reflect the city's actual cost for that coverage.

(e)

Dental benefits. Dental benefits shall be optional at the discretion of the retiree. In order to receive dental benefits under the program, a retiree must be eligible to participate in the program under subsection (b)(1) or (b)(2) above, and must have enrolled in dental benefits within 90 days of their termination of employment with the city or, for elected or appointed officials, within 90 days of the commencement of their pensions. If a city employee eligible for retiree dental benefits under this paragraph (2)(e) does not enroll in the retiree dental benefits in accordance with this paragraph (2)(e), or timely enrolls in retiree dental benefits under this paragraph (2)(e) and then drops the coverage, such employee shall not be permitted to later enroll or re-enroll in the retiree dental benefits. Persons opting for the dental benefit shall be entirely responsible for payment of the requisite premium for such benefits.

(f)

Disability.

(1)

Any city employee employed by the city on January 1, 2000 or hired after January 1, 2000 and before July 1, 2011 with at least 15 years of city employee service who otherwise qualifies for a disability pension benefit under the Delaware County and Municipal Pension Plan for Police/Firefighters as set forth in Chapter 88 of Title 11 of the Delaware Code, the Delaware County and Municipal Pension Plan as set forth in Chapter 55A of Title 29 of the Delaware Code, or any other city pension plan, shall be eligible for the retiree medical program benefits of this section. The 15-year requirement shall be waived for any uniformed employee who is eligible for a service related total (75 percent) disability pension.

(2)

Any city employee hired on or after July 1, 2011 with at least 15 years of city employee service, who otherwise qualifies for a disability pension benefit under the Delaware County and Municipal Pension Plan for Police/Firefighters as set forth in Chapter 88 of Title 11 of the Delaware Code, the Delaware County and Municipal Pension Plan as set forth in Chapter 55A of Title 29 of the Delaware Code, or any other city pension plan, shall be eligible for the retiree medical program benefits of this section. The 15-year requirement shall be waived for any uniformed employee who is eligible for a service related total (75 percent) disability pension.

(g)

Program administration and funding.

(1)

The members of the city's board of pensions and retirement, under City Charter Section 3-800, shall serve as trustees of this program, and shall authorize the engagement of such actuaries as are necessary to estimate the annual expenses and funding requirements of this program on an actuarially sound basis. The city's Risk Management Division and Department of Human Resources shall provide any underlying related data as needed for the actuaries and any other reporting agencies.

(2)

The city treasurer's office is hereby authorized to establish any accounts or funds needed to carry out this program.

(3)

The program's plan year shall be the same as all other city healthcare programs.

(Ord. No. 99-064(sub 1), § 1, 11-4-99; Ord. No. 00-018, § 1, 3-16-00; Ord. No. 06-079(sub 1), § 1, 12-13-06; Ord. No. 11-018, § 1, 6-2-11)

Sec. 39-6. - Pension commission.

(a)

Establishment. There is hereby established a city pension commission for the primary purpose of conducting annual reviews of the overall financial condition of the city and determining whether cost of living increases should be recommended for all city retirees.

(b)

Membership. The pension commission shall be comprised of 13 members. The pension commission shall consist of the persons in the following specific city positions or authorized appointments or designees as follows:

(1)

The city treasurer who shall act as chairman of the pension commission.

(2)

The mayor or the mayor's authorized designee.

(3)

The mayor's appointment of a specific person.

(4)

The mayor's appointment of a specific person.

(5)

The city council president or the president's designee.

(6)

The city council president's appointment of a specific person.

(7)

The city council president's appointment of a specific person.

(8)

The president of the FOP lodge #1 or the said president's designee.

(9)

The president of the firefighters' local #1590 or the said president's designee.

(10)

The president of local #1102 or the said president's designee.

(11)

The president of local #320 or the said president's designee.

(12)

and (13) In even-numbered calendar years, the presidents of the FOP lodge #1 and the firefighters' local #1590 shall each have one additional appointment. In odd-numbered calendar years, the presidents of local #1102 and local #320 shall each have one additional appointment. Said appointees shall serve during the full calendar year for which they are eligible and appointed.

(c)

Pension commission duties and responsibilities. The pension commission, beginning in January of each year, shall review the city's overall financial condition and formulate recommendations regarding cost of living increases, if any, for all city retirees during the calendar year. The pension commission's recommendation, by not less than a majority of its members, shall be forwarded to city council and to the mayor not later than April 15 of the calendar year in which the recommendation is made. In any instance in which the recommendation is more than the amount of zero dollars city council shall prepare, or cause to be prepared, an ordinance to implement the pension commission's recommendation. Such ordinance shall be presented to the full city council and shall be voted upon not later than June 30 of that same calendar year.

Beginning in calendar year 2009 for fiscal year 2010, the pension commission ("commission") shall determine in each calendar year whether an employer contribution shall be made in the next fiscal year to qualified participants in the city's "employee deferred compensation program" pursuant to section 39-8 of this Article I of this chapter. The commission shall also determine the amount of said contribution to be recommended to the mayor and city council to be included in the annual operating budget ordinance for the next ensuing fiscal year.

(d)

Review of fiscal condition. In reviewing the overall fiscal condition of the city, the commission shall review and consider the most recent reports issued by the Wilmington financial and economic advisory committee (WEFAC) and the city's expenditure review board.

(e)

Rules and regulations. The pension commission may adopt such rules and regulations it deems necessary, subject to the approval of the administrative board.

(f)

For fiscal year 2000 only, the pension commission's review shall begin on or before March 15, 2000 and the recommendation, if any, shall be forwarded to city council and the mayor not later than April 30, 2000.

(Ord. No. 00-009, § 1, 2-3-00; Ord. No. 00-016, § 1, 3-2-00; Ord. No. 08-026(sub 1), § 1, 4-17-08)

Sec. 39-7. - Direct deposit required.

Commencing August 1, 2006, all cash benefits payable to all new city retirees (first retiring from city employment on or after August 1, 2006) shall be paid by direct deposit to a financial institution and not by check payable to any retiree.

(Ord. No. 06-040(sub 2), § 1, 7-6-06)

Sec. 39-8. - Employer contribution to City of Wilmington employee deferred compensation plan.

(a)

Fiscal year 2009. Beginning with fiscal year 2009, and for fiscal year 2009 only, the City of Wilmington, as employer, shall contribute the amount of $250.00 to each qualified "employee deferred compensation account". A "qualified employee" shall be one who has fully participated in the deferred compensation program during the immediately preceding fiscal year.

(b)

City contributions in subsequent fiscal years, after fiscal year 2009, shall be discretionary and in such amounts as are recommended annually by the city pension commission as set forth in subsection 39-6(c) and as provided in the operating budget ordinance for the next fiscal year.

(Ord. No. 08-026(sub 1), § 2, 4-17-08)

Sec. 39-9. - City of Wilmington OPEB Trust Fund.

(a)

There is hereby established a City of Wilmington OPEB ("other post-employment benefits") trust fund pursuant to Government Accounting Standards Board Statements No. 43 ("GASB 43") and No. 45 ("GASB 45").

(b)

The said OPEB trust shall constitute an irrevocable trust to receive contributions to provide certain post-employment benefits to city retirees and to make distributions from the trust for certain post-employment benefits for retirees.

(c)

The OPEB trust shall be under the complete control of its trustees who shall have such powers as are set forth in Article V of the OPEB trust fund agreement.

(d)

The trustees of the OPEB trust shall be the members of the city's board of pensions and retirement serving from time to time in accordance with and pursuant to Part I, Article III, Chapter 8, § 3-800 of the City Charter.

(Ord. No. 08-041(sub 1), § 1, 6-19-08)

Secs. 39-10—39-30. - Reserved.