DIVISION 5. - ELIGIBILITY FOR, RECEIPT AND AMOUNTS OF, RETIREMENT BENEFITS

Except as otherwise provided in this article, any vested member who terminates service as an employee before attaining the minimum retirement age shall have a right to receive a retirement allowance upon reaching the minimum retirement age, computed in accordance with the benefit provisions of the fund in effect at the date of the member's termination of service. Any member who terminates service before having vested shall have no rights to any future benefit payments from the fund unless otherwise specifically provided in this article.

(b)

Except as otherwise provided in this article, any other associated benefits as defined in this chapter shall be computed in accordance with the benefit provisions of the fund in effect on the date of the member's termination of service.

(Ord. No. 2709-80; Ord. No. 2971-82; Ord. No. 3324-85; Ord. No. 6434-07, § 1)

Sec. 31-51. - Application for retirement benefits.

(a)

Employees who terminate service with a participating employer and are eligible to receive retirement benefits from the fund, must make written application for receipt of benefits on forms prescribed by the city's department of finance. Such application shall not be effective until received and accepted by the city's department of finance.

(b)

Retirement benefit payments shall begin accruing on the effective date of retirement and shall be payable monthly on the last working day of each month so long as the retiree is eligible to receive such payments.

(Ord. No. 6434-07, § 1)

Sec. 31-52. - Regular retirement.

(a)

For the period beginning March 1, 2010, only actual service shall be used in calculating credited service for the purpose of determining retirement eligibility. However, all credited service obtained or earned prior to March 1, 2010, shall be included in such calculation.

(b)

Employees are eligible for regular retirement from service with a participating employer if they are vested in accordance with the provisions of section 31-36 and meet the following minimum retirement eligibility criteria based on age or credited service:

(1)

Public safety employees:

Based on credited service—At least twenty-five (25) years of credited service as a public safety employee at any age; or

Based on age—At least fifty (50) years old with at least five (5) years of credited service as a public safety employee.

(2)

Other employees:

Based on credited service—At least thirty (30) years of credited service at any age; or

Based on age—At least sixty (60) years old with at least five (5) years of credited service.

(Ord. No. 2709-80; Ord. No. 3324-85; Ord. No. 4612-94, § 1; Ord. No. 4732-95; Ord. No. 5905-03; Ord. No. 6434-07, § 1; Ord. No. 6658-10, § 1)

Editor's note—

Ord. No. 6658-10, § 1, adopted Jan. 26, 2010, shall be in effect on and after March 1, 2010.

Sec. 31-53. - Early retirement.

(a)

For the period beginning March 1, 2010, only actual service shall be used in calculating credited service for the purpose of determining early retirement eligibility. However, all credited service obtained or earned prior to March 1, 2010, shall be included in such calculation.

(b)

Each member who is not a public safety employee and has completed twenty-five (25) years of credited service, even if before the attainment of the minimum retirement age, may retire at the member's option then or thereafter with a reduced retirement benefit computed in accordance with section 31-54(b).

(c)

Each member who has completed twenty-five (25) years of credited service which includes at least five (5) years of credited service as a public safety employee, may retire before the attainment of the minimum retirement age with a reduced retirement benefit computed in accordance with section 31-54(b) but only on that portion of credited service that was not earned as a public safety employee.

(Ord. No. 2709-80; Ord. No. 3324-85; Ord. No. 4612-94, § 1; Ord. No. 4732-95; Ord. No. 5117-98; Ord. No. 5905-03; Ord. No. 6434-07, § 1; Ord. No. 6658-10, § 1)

Editor's note—

Ord. No. 6658-10, § 1, adopted Jan. 26, 2010, shall be in effect on and after March 1, 2010.

Sec. 31-54. - Retirement allowances.

(a)

A vested member retiring under the provisions of section 31-52 or section 31-53 shall receive an annual retirement allowance payable for the lifetime of the member determined in accordance with this section. In no event, shall a member's annual retirement allowance payable from the fund be greater than seventy-five (75) percent of the member's average final compensation or less than three hundred thirty dollars ($330.00).

(1)

Subject to section 31-50, members who are not VRS participants accrue a benefit equal to two (2) percent of the member's average final compensation multiplied by their credited service obtained or earned as a non-VRS participant prior to March 1, 2010, and equal to 1.85 percent of the member's average final compensation multiplied by their credited service obtained or earned on and after March 1, 2010.

(2)

Subject to section 31-50, members who are VRS participants accrue a benefit equal to 0.30 percent of the member's average final compensation, multiplied by their credited service obtained or earned as a VRS participant prior to March 1, 2010, and equal to 0.15 percent of the member's average final compensation multiplied by their credited service obtained or earned on and after March 1, 2010.

(3)

The annual retirement allowance payable to a member who has earned credited service with a participating employer as both a VRS participant and a non-VRS participant shall be a benefit equal to the total of the allowances determined under this article for each type of service. The annual retirement allowance shall be calculated based on one (1) average final compensation for all periods of service. Notwithstanding the above, if any new period of service began on or after October 1, 2007, the average final compensation for the member shall be separately determined for such period of service.

(b)

(1)

For each member retiring pursuant to the early retirement provisions of section 31-53, the annual retirement allowance shall be reduced by an amount equal to the lesser of the following:

One-half (½) of one (1) percent per month for each month that the early retirement precedes the current minimum retirement age; or

One-half (½) of one (1) percent per month for each month that early retirement precedes the normal thirty-year minimum service requirement.

(2)

For all such members who have at least five (5) years of credited service as a public safety employee, the reduction shall apply only to credited service time served in positions other than as a public safety employee.

(c)

The retirement allowance from the city provided for by this section shall be reduced by the amount of any payments made to the retired employee by the participating employer pursuant to the Virginia Workers' Compensation Act, §§ 65.2-500, 65.2-501, 65.2-502, 65.2-503, and 65.2-512 of the Code of Virginia. There shall be no reduction in the retirement allowance for payment of medical benefits pursuant to § 65.2-603, or payment of burial expenses pursuant to § 65.2-512B of the Code of Virginia. If the member's payments under the Virginia Workers' Compensation Act are adjusted or terminated for refusal to work or to comply with the requirements of § 65.2-603 of the Code of Virginia, the retirement allowance shall be computed as if the member were receiving the compensation to which the member would otherwise be entitled. In addition, the retirement allowance from the city shall also be reduced by the amount of any lump sum settlement of a workers' compensation claim, except such portion of the settlement as is designated for the payment of medical expenses.

(d)

Defined benefit limitations.

(1)

Notwithstanding any other provisions in this article, the maximum annual benefit to which a member is entitled from the fund shall not exceed the applicable limitations of IRC section 415(b). The limitations of IRC section 415(b) and the final Treasury Regulations promulgated thereunder, as published on April 5, 2007, are hereby incorporated by reference. The limitations shall be applied on a uniform basis with respect to all similarly situated members in a limitation year.

The maximum benefits provided under the fund shall not exceed the maximum amounts permitted by IRC section 415(b). The amount payable to a member in any limitation year shall not exceed the IRC section 415(b) limit applicable at the annuity commencement date, without regard to the cost-of-living adjustments described in paragraph (3) below. If there is any discrepancy between the provisions of this [sub]section 31-54(d) and the provisions of IRC section 415, such discrepancy shall be resolved in such a way as to give full effect to the provisions of IRC section 415.

(2)

If the maximum annual benefit under this article (but for this section) would exceed the limitations of IRC section 415(b), the maximum annual benefit under any other defined benefit plan required to be aggregated with the fund shall be reduced under the other defined benefit plan prior to the reduction of the maximum annual benefit from the fund, in accordance with final Treasury Regulation section 1.415(a)-1(d)(3)(iii).

(3)

In the event that the annual pension otherwise payable to a member who has retired or terminated employment has been limited by IRC section 415(b) as it existed at the member's retirement or termination date, the member's annual pension shall be adjusted for increases in the cost-of-living, as permitted by final Treasury Regulation section 1.415(d)-1, pursuant to Treasury Regulation section 1.415(a)-1(d)(3)(v), which is incorporated by reference.

(4)

For purposes of determining a member's maximum benefit, remuneration paid or made available to the member during the limitation year shall include amounts described in IRC section 415(c)(3) and final Treasury Regulation section 1.415(c)-2(a). In addition, post-severance remuneration shall mean post-severance remuneration as defined in final Treasury Regulation section 1.415(c)-2(e)(3)(ii), and any payment that is for accrued bona fide sick, vacation or other leave, but only if the member would have been able to use the leave if employment had continued; payment to an individual who does not currently perform services for the participating employer by reason of qualified military service, to the extent these payments do not exceed the amounts the individual would have received had the individual continued to perform services for the participating employer rather than entering qualified military service; and any payment that is made to a member who is totally and permanently disabled as determined by the Virginia Workers' Compensation Commission, provided salary continuation applies to all members who are permanently and totally disabled for a fixed or determinable period.

(e)

Required minimum distributions. Notwithstanding anything herein to the contrary, the benefit of each member shall commence no later than April 1 of the calendar year following the later of (i) the calendar year in which the member attains age seventy and one-half (70½), or (ii) the calendar year in which the member retires. This period shall be known as the member's required beginning date. The fund is intended and believed to be in compliance with a reasonable and good faith interpretation of IRC section 401(a)(9). IRC section 401(a)(9) is incorporated by reference herein. The requirements of this section shall apply to any distribution of a member's retirement allowance and override any distribution option in the fund that is otherwise inconsistent with IRC section 401(a)(9) and take precedence over any inconsistent provisions of the fund.

Retirement distributions may only be made over the life of the member or the joint lives of the member and the member's designated beneficiary.

(1)

If the distribution of a member's benefit has commenced and the member dies before the member's entire benefit has been distributed to the member, the remaining portion of such benefit shall be distributed at least as rapidly as under the form of distribution in effect at the member's date of death.

(2)

If a member dies before distributions begin, the member's benefit will be distributed, or begin to be distributed, no later than the following:

If the sole designated beneficiary is the spouse of the member, the member's spouse may elect to commence the benefit in accordance with the terms of this article within a reasonable period of time after the member's death, but in no event may such election be made later than December 31 of the calendar year immediately following the calendar year in which the member died or December 31 of the calendar year in which the member would have attained age seventy and one-half (70½). The benefit shall be paid over the life expectancy of the designated beneficiary.

If the benefit is paid to a designated beneficiary, other than the member's spouse, any distribution payable under the terms of this article shall commence no later than December 31 of the calendar year immediately following the calendar year in which the member died. The benefit shall be paid over the life of the designated beneficiary.

If there is no designated beneficiary as of September 30 of the year following the member's death, any distribution payable under the terms of this article shall be completed by December 31 of the calendar year containing the fifth anniversary of the member's death.

If the member's spouse is the member's sole designated beneficiary and the spouse dies after the member but before distributions to the spouse begin, then this section other than subsection (e)(1) above shall be applicable as if the spouse were the member.

The benefits payable under the provisions of this article may not be paid in any form which would violate the required distribution requirements of this subsection.

(Ord. No. 2709-80; Ord. No. 3821-89; Ord. No. 4007-90; Ord. No. 4115-90; Ord. No. 4718-95; Ord. No. 4790-95, § 1; Ord. No. 4894-96; Ord. No. 4943-96; Ord. No. 4976-96; Ord. No. 5080-97; Ord. No. 5117-98; Ord. No. 5368-99; Ord. No. 5566-01; Ord. No. 5905-03; Ord. No. 6434-07, § 1; Ord. No. 6562-09, § 1; Ord. No. 6630-09, § 1; Ord. No. 6658-10, § 1; Ord. No. 6766-11, § 1)

Editor's note—

Ord. No. 6766-11, § 2, provides that the 2009 amendments to section 31-54 and to all subsections other than this amendment to subsection 31-54(a)(3) shall be effective January 27, 2009, and September 22, 2009, as originally adopted on those dates by Ordinance No. 6562-09 and Ordinance No. 6630-09, respectively.
Additionally, § 3 of Ord. No. 6766-11 provides that the amendment to subsection 31-54(a)(3) shall be in effect on and after the date of its adoption, March 8, 2011.

Sec. 31-55. - Post-retirement increases in benefits.

(a)

Each retirement allowance or benefit being paid to a recipient pursuant to the provisions of this article shall be subject to adjustments.

(b)

Annually, on July 1 of each year beginning on July 1, 1995, retirement allowances and benefits paid to each recipient shall be increased by one (1) percent for each one (1) percent of the first one (1) percent increase in the United States Average Consumer Price Index (Urban) for all items as published by the Bureau of Labor Statistics of the United States Department of Labor for the most recent calendar year over the corresponding annual average for the immediately preceding calendar year and one-half (½) percent for each one (1) percent of increase over the first one (1) percent of increase up to a maximum increase of three and one-half (3½) percent.

(Ord. No. 2709-80; Ord. No. 2971-82; Ord. No. 2989-82; Ord. No. 4613-94, § 1; Ord. No. 4894-96; Ord. No. 5080-97; Ord. No. 5566-01; Ord. No. 6434-07, § 1)

Sec. 31-56. - Occupational disability retirement for a total and permanent disability.

(a)

VRS participants are ineligible for the benefits provided by this section. All other members shall be referred to as "eligible members" in this section.

(b)

Subject to subsection (a) of this section, on and after October 1, 2007, an eligible member in active service who has been determined to be totally and permanently disabled by the Virginia Workers' Compensation Commission from a cause arising out of and in the course of their employment with a participating employer may, upon written application to the board, be retired [eligible] for occupational disability retirement when, as a result of a medical examination or by means of other satisfactory evidence, the board finds that the member is permanently functionally incapacitated from performing any gainful activity and that such condition appears to be permanent. Benefits hereunder shall continue only so long as such incapacity continues based on evidence acceptable to the board.

(c)

In the event of the retirement of an eligible member for occupational disability on or after January 1, 1983, such eligible member shall receive a disability retirement allowance payable for the lifetime of the eligible member so long as the eligible member remains totally disabled. The amount of the annual allowance shall be two-thirds (2/3) of the eligible member's annual salary at the time the disability began less:

(1)

The amount of any payments made to the eligible member by the participating employer pursuant to the Virginia Workers' Compensation Act, §§ 65.2-500, 65.2-501, 65.2-502, 65.2-503, and 65.2-512 of the Code of Virginia. There shall be no reduction in the retirement allowance for payment of medical benefits pursuant to § 65.2-603 or payment of burial expenses pursuant to § 65.2-512B of the Code of Virginia. If the eligible member's payments under the Virginia Workers' Compensation Act are adjusted or terminated for refusal to work or to comply with the requirements of § 65.2-603 of the Code of Virginia, the retirement allowance shall be computed as if the eligible member were receiving the compensation to which the eligible member would otherwise be entitled. In addition, the retirement allowance from the city shall also be reduced by the amount of any lump sum settlement of a workers' compensation claim, except such portion of the settlement as is designated for the payment of medical expenses.

(2)

One-half (½) of the disability benefit received by the eligible member from the United States Social Security Administration or successor.

(3)

Compensation received by the eligible member from the city under any applicable rule or order, settlement, contract or other agreement.

(d)

Should an eligible member die while on occupational disability retirement, benefits shall be computed in accordance with section 31-62

(e)

An eligible member applying for disability retirement or retired on disability under this section shall be governed by the rules and regulations promulgated by the board in accordance with section 31-22 and section 31-59

(Ord. No. 2990-82; Ord. No. 5042-97; Ord. No. 5076-97; Ord. No. 6434-07, § 1; Ord. No. 6630-09, § 1)

Sec. 31-57. - Nonoccupational disability retirement for a total and permanent disability.

(a)

VRS participants are ineligible for the benefits provided by this section. All other members shall be referred to as "eligible members" in this section.

(b)

On or after October 1, 2007, an eligible member in active service who is vested and is not eligible for regular service retirement, and who is totally and permanently disabled from a cause not compensable under the Virginia Workers' Compensation Act may, upon written application to the board, be considered for nonoccupational disability retirement when, as a result of a medical examination or by means of other satisfactory evidence, the board finds that the eligible member is functionally incapacitated from performing any gainful activity and that such condition appears to be permanent. Benefits hereunder shall continue only so long as such incapacity continues based on evidence acceptable to the board.

(c)

In the event of the retirement of an eligible member for nonoccupational disability on or after January 1, 1983, such eligible member shall receive a disability retirement allowance payable monthly for the lifetime of the eligible member so long as the eligible member remains totally disabled. The amount of the annual allowance shall be computed as twenty (20) percent of the eligible member's average final compensation at date of disability retirement for the first five (5) years of the eligible member's credited service at such date plus one (1) percent of such average final compensation for each such year of credited service in excess of five (5).

(d)

Should an eligible member die while on nonoccupational disability retirement, benefits shall be computed in accordance with the provisions of section 31-61, based on the eligible member's credited service as of the eligible member's date of disability retirement under this section.

(e)

(Ord. No. 2990-82; Ord. No. 5042-97; Ord. No. 5076-97; Ord. No. 6434-07, § 1)

Sec. 31-58. - Occupational and nonoccupational partial disability benefits.

(a)

VRS participants are ineligible for the benefits provided by this section. All other members shall be referred to as "eligible members" in this section.

(b)

As a result of medical examination or otherwise, if the board determines that an eligible member who has applied for disability retirement under section 31-56 or section 31-57 is not totally and permanently disabled within the meaning of those sections, but determines that the such eligible member is partially disabled to the extent that the eligible member is functionally incapacitated from performing the essential functions of the eligible member's position with the participating employer, and as a result of such partial disability, terminates employment with the participating employer or transfers to a position with the participating employer at a lower salary, the eligible member may be awarded a partial disability benefit. Such benefit shall not be deemed to be a retirement allowance. Benefits hereunder shall continue only so long as such incapacity continues based on evidence acceptable to the board.

(c)

Based on available medical and other relevant evidence, the board shall determine on a uniform and non-discriminatory basis with respect to similarly situated eligible members the extent of the partial disability. The partial disability benefit shall be a percentage of the allowance that would have been payable had the eligible member qualified for disability retirement under section 31-56 or section 31-57, after deducting from the allowance workers' compensation benefits awarded to the eligible member in the same amount and in the same manner as required by subsection 31-56(c)(1), such percentage being the percentage by which the eligible member is deemed partially disabled. Except as otherwise provided in this section, once the initial disability percentage has been established, it shall not be increased.

(d)

Additional benefits shall be granted by the board by increasing the initial disability percentage at the rate of two (2) percent per full year of credited service. The total percentage awarded pursuant to this section shall not exceed the lesser of two (2) times the initial disability percentage recommendation or eighty (80) percent.

(e)

Except as provided in subsection (f) or (g) of this section, disability benefit payments shall begin accruing on the effective date of disability and shall be payable monthly on the last working day of each month so long as the eligible member's partial disability continues, as determined by the board on evidence acceptable to it.

(f)

In the case of a vested eligible member receiving a partial disability benefit who is not employed by the participating employer, the partial disability benefit will terminate when the eligible member attains the minimum age of retirement and the eligible member's benefit will convert to a service retirement.

(g)

In the case of an eligible member who is not vested and is receiving a partial occupational disability benefit, the partial occupational disability benefit will terminate when the eligible member attains the minimum age of retirement.

(h)

Notwithstanding receipt of benefits pursuant to this section, partially disabled eligible members who work for a participating employer during their period of disability shall accrue benefits under this chapter.

(i)

An eligible member applying for or receiving benefits under this section shall be governed by the rules and regulations promulgated by the board in accordance with section 31-22 and section 31-59

(Ord. No. 2990-82; Ord. No. 4706-95; Ord. No. 5076-97; Ord. No. 6434-07, § 1; Ord. No. 6630-09, § 1)

Sec. 31-59. - Annual review of disability recipients; continuation, cessation or adjustment of allowances or benefits.

(a)

The board may require any recipient of a disability retirement allowance pursuant to section 31-56 or section 31-57 of this Code, or of a partial disability benefit pursuant to section 31-58 of this Code, to undergo medical and functional capacity examinations by a physician or other qualified professional selected by the fund prior to the date on which the recipient attains age sixty (60). Should a recipient refuse to submit to any such examination, the recipient's disability retirement allowance or partial disability benefit shall be discontinued during the continuation of such refusal; and should such refusal continue for one (1) year, all the recipient's rights to any further disability retirement allowance or partial disability benefit payments shall cease.

(b)

Whenever, as a result of a medical or functional capacity examination of a recipient of a disability retirement allowance as provided for in subsection (a) of this section, or other relevant evidence, the board determines that such recipient is no longer totally and permanently disabled, and is engaged in gainful activity or is able to engage in gainful activity, the disability retirement allowance shall cease. Except as provided in section 31-58(h), the period during which the recipient received a disability retirement allowance shall not be counted as credited service.

(c)

Whenever a disability retirement allowance is terminated under subsection (b) of this section, but the board determines that the recipient remains partially disabled due to the same disability for which the retirement allowance was initially awarded, to the extent that the recipient is still incapable of performing the essential functions of the recipient's former position with the participating employer and the recipient's earning capacity has been reduced permanently by such partial disability, such recipient shall be awarded a partial disability benefit in place of the terminated disability retirement allowance. Such partial disability benefit shall be governed in every respect by the provisions of section 31-58, as though it had been awarded initially in lieu of a disability retirement allowance and shall commence immediately upon termination of the disability retirement allowance.

(d)

Whenever, as a result of a medical or functional capacity examination of a recipient of a partial disability benefit as provided in subsection (a) of this section, or other relevant evidence, the board determines that there has been an improvement in the recipient's medical condition related to the same disability for which the partial disability benefit was initially awarded to the extent that the recipient is capable of performing the essential functions of the recipient's former position with the participating employer, the board shall reevaluate such recipient's partial disability benefit.

(e)

Notwithstanding anything to the contrary in this Code, the board's decision to grant, deny or terminate a disability retirement allowance or a partial disability benefit need never be based solely on the results of a medical examination. The board may also consider reports of vocational rehabilitation counselors, financial evidence, the testimony of law and expert witnesses, whether the applicant or recipient is receiving disability benefits under social security or the Virginia Workers' Compensation Act and any other relevant evidence. The recipient shall annually submit a report on the recipient's personal efforts toward rehabilitation, along with a written statement attesting to the fact that there has been no change in the recipient's condition which would result in any adjustment to or cessation of disability benefits, or if changes have occurred, a statement describing any such change. In addition to such annual reporting, or as otherwise required by the board, it shall be the duty of any recipient of a disability retirement allowance or a partial disability benefit to notify the board within thirty (30) days of any material change in the recipient's medical condition, or of any gainful activity in which the recipient becomes engaged. Failure of the recipient to furnish the information required by the board under this subsection in a timely manner or failure of the recipient to cooperate with vocational rehabilitation counselors in order to derive maximum benefit from rehabilitation services offered at the participating employer's expense shall constitute grounds for the board to deny or terminate the disability retirement allowance or to deny or order a reduction or cessation of the partial disability benefit to such recipient.

(Ord. No. 2990-82; Ord. No. 4706-95; Ord. No. 6434-07, § 1)

Sec. 31-60. - Occupational employee death benefits.

(a)

Upon the death of an employee after July 1, 1972, arising out of and in the course of employment with a participating employer from a cause that is or would be compensable under the Virginia Workers' Compensation Act, the deceased employee's surviving spouse shall be entitled to an annual benefit equal to sixty (60) percent of the employee's final salary, at date of death, payable monthly until death or remarriage of the spouse, whichever first occurs. Should the deceased employee also be survived by a dependent child or children, an additional ten (10) percent of the employee's final salary for each such dependent child shall be paid monthly to each such child until earlier of the dependent child's death or until no longer a dependent child; provided, however, that the aggregate payments provided by this subsection shall be limited to eighty (80) percent of the deceased employee's final salary.

(b)

If there is no surviving spouse, or if the spouse dies, and there are surviving dependent children of the deceased employee, the benefit which would have been or was payable to the spouse shall be paid to each such dependent child, pro rata, until the earlier of the dependent child's death or until no longer a dependent child.

(c)

Should the spouse of an employee with a dependent child or children of the deceased employee remarry, then each such dependent child shall be entitled to twenty (20) percent of the final salary of the deceased employee; provided, however, that aggregate payments to such children shall be limited to eighty (80) percent of the deceased employee's final salary, payable until the earlier of the child's death or until no longer a dependent child.

(d)

The benefits provided for in subsections (a), (b), and (c) of this section shall be subject to reduction so that the benefits paid from the fund to the surviving dependents of an employee, together with income from workers' compensation benefits, social security benefits, VRS, and amounts otherwise payable by the participating employer under any applicable law, rule or order, shall not exceed one hundred (100) percent of the deceased employee's final salary.

(e)

In addition to the other benefits provided by this section, there shall be paid to the surviving spouse of the deceased employee or, if none, the beneficiary designated by the deceased member, or if none, the estate of the employee, a lump sum death benefit amount equal to five hundred fifty dollars ($550.00) multiplied by the number of full years of credited service of the employee at date of death, subject to a minimum payment of five hundred fifty dollars ($550.00) and a maximum of three thousand three hundred dollars ($3,300.00).

(f)

Except as provided in subsection (e) of this section, the benefits provided for in this section shall be payable to a recipient only as long as the recipient is eligible to receive such benefits based on the provisions of this section and evidence acceptable to the board.

(Ord. No. 51, § 18; Ord. No. 991, § 1; Ord. No. 1681, § 1; Code 1961, § 32-24; Ord. No. 2297; Ord. No. 2364; Ord. No. 2709-80; Ord. No. 5042-97; Ord. No. 6434-07, § 1)

Sec. 31-61. - Nonoccupational employee death benefits.

(a)

Upon the death of an employee from any cause not compensable under the Virginia Workers' Compensation Act, payments shall be made from the fund in accordance with the following provisions of this section.

(b)

There shall be paid to the surviving spouse of the deceased employee or, if none, the beneficiary designated by the deceased member, or if none, the estate of the employee, a lump sum death benefit amount equal to five hundred fifty dollars ($550.00) multiplied by the number of full years of credited service of the employee at date of death, subject to a minimum payment of five hundred fifty dollars ($550.00) and a maximum of three thousand three hundred dollars ($3,300.00).

(c)

If a deceased vested employee is survived by a spouse at the date of such employee's death, there shall be payable to said spouse, until the death or remarriage of that spouse, a benefit equal to fifty (50) percent of the annual retirement allowance to which the member would have been entitled had the deceased employee retired on the date of death. Attainment of the minimum retirement age shall not be a prerequisite for receipt of this retirement benefit and shall not affect the computation thereof.

(d)

If a deceased vested employee is not survived by a spouse at the date of such employee's death, or the surviving spouse subsequently dies and the deceased vested employee is survived by one (1) or more dependent children, the benefit which would have been or was payable to the surviving spouse under the provisions of subsection (c) above, shall be payable to, or for the benefit of, the surviving dependent child or children, payable until the earlier of the dependent child's death or until no longer a dependent child. If a member is survived by more than one (1) dependent child, and if one (1) or more of them subsequently becomes ineligible to receive a share of the benefit, then the benefit shall be shared equally by the remaining eligible dependent children. Attainment of the minimum retirement age shall not be a prerequisite for receipt of this retirement benefit and shall not affect the computation thereof.

(e)

Except as provided in subsection (b) of this section, the benefits provided for in this section shall be payable to a recipient only as long as the recipient is eligible to receive such benefits based on the provisions of this section and evidence acceptable to the board.

(Ord. No. 51, § 19; Ord. No. 991, § 1; Ord. No. 1681, § 1; Code 1961, § 32-25; Ord. No. 2297; Ord. No. 2709-80; Ord. No. 2971-82; Ord. No. 3680-88, § 1; Ord. No. 3821-89; Ord. No. 4261-91; Ord. No. 4336-92, § 1; Ord. No. 5157-98, § 1; 5830-02; Ord. No. 6434-07, § 1)

Sec. 31-62. - Benefits upon death after retirement.

(a)

Upon the death of a retiree while receiving a retirement allowance which commenced after November 13, 1972, but prior to May 1, 1987, payments shall be made from the fund in accordance with the following provisions of this subsection.

(1)

There shall be paid to the surviving spouse of the deceased retiree or, if none, the beneficiary designated by the retiree or, if none, the estate of the retiree a lump sum amount of three thousand three hundred dollars ($3,300.00).

(2)

If the deceased retiree had twenty (20) or more years of credited service at date of retirement and is survived by a spouse, there shall be payable to said spouse, until the death of the spouse, an allowance equal to fifty (50) percent of the annual retirement allowance which the retiree was eligible to receive immediately prior to death.

(b)

Upon the death of a retiree while receiving a retirement allowance which commenced on or after May 1, 1987, payments shall be made from the fund in accordance with the following provisions of this subsection.

(1)

(2)

If the deceased retiree is survived by a spouse, there shall be payable to said spouse, until the death or remarriage of the spouse, an allowance equal to fifty (50) percent of the annual retirement allowance which the retiree had been receiving immediately prior to death.

(3)

If the deceased retiree is not survived by a spouse, or the surviving spouse dies, and the deceased retiree is survived by one (1) or more dependent children, then the benefit which would have been or was payable to the surviving spouse under the provisions of subsection (2) above, shall be payable to, or for the benefit of, the surviving dependent children, pro rata. If a deceased retiree is survived by more than one (1) dependent child, and if one (1) or more of them subsequently becomes ineligible to receive a share of the benefit, then the benefit shall be shared equally by the remaining eligible dependent children.

(4)

Except for the benefits provided under subsections (a)(1) or (b)(1) of this section, the benefits provided for in this section shall be payable to a recipient only as long as the recipient is eligible to receive such benefits based on the provisions of this section and evidence acceptable to the board.

(Ord. No. 2709-80; Ord. No. 3680-88, § 1; Ord. No. 3821-89; Ord. No. 4336-92; Ord. No. 5830-02; Ord. No. 6434-07, § 1)

Sec. 31-63. - Benefits upon death of terminated vested member.

(a)

Following the death of any vested member whose death occurs prior to the member making application for retirement benefits, payments shall be made from the fund in accordance with the following provisions of this section commencing on the first day of the month after a proper application for such benefits is submitted by the eligible beneficiary to the city's department of finance. The benefits provided for in subsections (b) and (c) of this section shall be based upon the provisions in effect at the deceased member's most recent date of termination of service with a participating employer.

(b)

If the member is survived by a spouse, there shall be payable to said spouse, until the death or remarriage of the spouse, a benefit equal to fifty (50) percent of the annual retirement benefit to which the member would have been entitled had the member started receiving benefits on the date of attainment of the earliest retirement age. The benefit provided by this subsection shall not commence until such time as the deceased member would have been eligible to retire based on age.

(c)

If the member is not survived by a spouse, or the surviving spouse dies, and the member is survived by one (1) or more dependent children, then the benefit which would have been or was payable to the surviving spouse under the provisions of subsection (b) of this section, shall be payable to, or for the benefit of, the surviving child or children pro-rata. If a member is survived by more than one (1) dependent child, and if one (1) or more of them subsequently becomes ineligible to receive a share of the benefit, then the benefit shall be shared equally by the remaining eligible children.

(d)

The benefits provided for in this section shall be payable to a recipient only as long as the recipient is eligible to receive such benefits based on the provisions of this section and evidence acceptable to the board.

(Ord. No. 4008-90; Ord. No. 5830-02; Ord. No. 6434-07, § 1)

Sec. 31-64. - Eligible rollover distributions.

(a)

This section 31-64 applies to distributions after December 31, 1992. A distributee of a lump sum payment under sections 31-60(e), 31-61(b), 31-62(a)(1), and 31-62(b)(1) may elect to have any portion of an eligible rollover distribution that is equal to at least two hundred dollars ($200.00) paid directly to an eligible retirement plan specified by the distributee in a direct rollover. If an eligible rollover distribution is less than two hundred dollars ($200.00), a distributee may not make the election described in the preceding sentence to rollover a portion of the eligible rollover distribution.

(b)

An eligible rollover distribution is any distribution of all or any portion of the member's benefit payable to the distributee, except that an eligible rollover distribution does not include: (i) any distribution that is one (1) of a series of substantially equal periodic payments (not less frequently than 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 (10) years or more; (ii) any distribution to the extent such distribution is required under IRC section 401(a)(9); and (iii) the portion of any distribution that is not includible in gross income.

(c)

An eligible retirement plan is an individual retirement account described in IRC section 408(a), an individual retirement annuity described in IRC section 408(b), an annuity plan described in IRC section 403(a), or a qualified trust described in IRC section 401(a), that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.

Eligible retirement plan also means, effective for distributions on and after January 1, 2002, an individual retirement account described in IRC section 408(a), an individual retirement annuity described in IRC section 408(b), an annuity plan described in IRC section 403(a) or a qualified plan that accepts the individual's eligible rollover distribution. Eligible retirement plan shall also mean an annuity contract described in IRC section 403(b) and an eligible plan under IRC section 457 which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from the fund.

For distributions made after December 31, 2007, an eligible retirement plan also means a Roth individual retirement account defined in IRC section 408A provided that, for distributions made in plan years prior to 2010, the distributee's modified adjusted gross income does not exceed the limitations in IRC section 408A(d)(3)(A).

(d)

A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a domestic relations order, as defined in IRC section 414(p), are distributees with regard to the interest of the spouse or former spouse.

(e)

A direct rollover is a payment by the fund to the eligible retirement plan specified by the distributee.

(f)

Each distributee who is entitled to make an eligible rollover distribution shall be provided a notice that satisfies IRC section 402(f) and that describes the fund's default distribution procedure in the event the member fails to make a rollover election. The notice shall be provided at least thirty (30) days but not more than one hundred eighty (180) days (ninety (90) days for plan years commencing before July 1, 2007), before the annuity commencement date.

(g)

Effective for distributions made in plan years beginning on or after July 1, 2008, a non-spouse beneficiary who is entitled to receive a lump sum distribution of the deceased member's benefit may elect to make a trustee-to-trustee transfer of all or a portion of such distribution to an individual retirement plan described in IRC section 408(a) or (b) that is established and titled in a manner that identifies it as an inherited IRA with respect to the deceased member and identifies the deceased member and the non-spouse beneficiary, pursuant to the provisions of IRC section 402(c)(11). Notwithstanding the prior sentence, a distribution under this section 31-64(g) shall not be subject to the direct rollover requirements of IRC section 401(a)(31), the notice requirements of IRC section 402(f), or mandatory withholding requirements of IRC section 3405(c).

(Ord. No. 6434-07, § 1; Ord. No. 6562-09, § 1)