§ A8.585-11

SOURCES OF FUNDS

All payments provided for members under Section A8.585 shall be made from funds derived from the following sources, plus interest earned on said funds:

a.

The normal rate of contribution for each member under Section A8.585 shall be made from funds based on his or her age taken to the next lower complete quarter year, (1) at the date he or she became a member under Section A8.568, in the case of persons who are members under that section, or (2) on his or her age at the date he or she becomes a member under Section A8.585 in the case of persons who become members on or after July 1, 1975, without credit for service counted under Section A8.585-10. The age of entrance into the fire department shall be determined by deducting the member’s service credited under Section A8.585-10 as rendered prior to the date upon which his or her age is based for determination of his or her rate of contribution according to the sentence next preceding, from said age. The normal rate of contribution of each such member, to be effective from the effective date of membership under Section A8.585, shall be such as, on the average for such member, will provide, assuming service without interruption, under Section A8.585-2, one-third of that portion of the service retirement allowance to which he or she would be entitled, without continuance to dependents, upon first qualifying as to age and service for retirement under that section, which is based on service rendered after the date upon which his or her age is based for determination of his or her rate of contribution according to the first sentence in this paragraph, and assuming the contribution to be made from that date. The normal rate of contribution, however, shall not exceed seven percent.

b.

The dependent contributions for each member under this section which shall be required of each member throughout his or her membership in addition to the normal contributions, and in the same manner as normal contributions, shall be such as, on the average for such member, will provide, assuming service without interruption under Section A8.585-2, and upon his first qualifying as to age and service for retirement under that section, one-third of the portion of his or her allowance, which is to be continued under Section A8.585-5 after his or her death and throughout the life of a surviving spouse whose age at said death is three years less than the age of said member. If, at the date of retirement for service or retirement for disability resulting from injury received in performance of duty, said member has no spouse who would qualify for the continuance of the allowance to them after the death of said member, or upon retirement for disability resulting from other causes, regardless of his or her marital conditions, the dependent contributions with accumulated interest thereon, shall be paid to him or her forthwith. The dependent rate of contribution, however, shall not exceed the difference between seven percent and the member’s normal rate of contribution, and said dependent rate may be taken as a flat percentage of the member’s normal rate, regardless of the age of qualification for service retirement.

c.

There shall be deducted from each payment of compensation made to a member under this Section, a sum determined by applying the member’s rates of contribution to such compensation payment. The sum so deducted shall be paid forthwith to the Retirement System. Said contribution shall be credited to the individual account of the member from whose salary it was deducted, and the total of said contributions, together with interest credited thereon in the same manner as is prescribed by the Board of Supervisors for crediting interest to contributions of other members of the Retirement System, shall be applied to provide part of the retirement allowance granted to, or allowance granted on account of said member, or shall be paid to said member or his or her estate or beneficiary as provided in Sections A8.585-5, A8.585-6 and A8.585-8. The individual accounts of members who purchased service credit for Unpaid Parental Leave shall also include the amount paid by the member for said purchase, plus interest.

d.

Contributions based on time included in Subsections (a), (b) and (c) of Section A8.585-10, and deducted prior to July 1, 1975, from compensation of persons who become members under Section A8.585, and standing with interest thereon, to the credit of such members on the records of the Retirement System on said date, together with contributions made by such members pursuant to the provisions of Section A8.526 and standing with interest thereon to the credit of such members on the records of the Retirement System on said date, shall continue to be credited to the individual accounts of said members and shall be combined with and administered in the same manner as the contributions deducted after said date.

e.

The total contributions, with interest thereon, made by or charged against the City and County and standing to its credit, in the accounts of the Retirement System, on account of persons who become members under Section A8.585, shall be applied to provide the benefits under said Section A8.585.

f.

The City and County shall contribute to the Retirement System such amounts as may be necessary, when added to the contributions referred to in the preceding paragraphs of this Section A8.585-11, to provide the benefits payable to members under Section A8.585. Such contributions of the City and County to provide the portion of the benefits hereunder which shall be based on service rendered by each member prior to the date upon which his or her age is based for determination of his or her rate of contribution in Subsection (a) of this Section A8.585-11, shall not be less during any fiscal year than the amount of such benefits paid during said year. Such contributions of the City and County to provide the portion of the benefits hereunder which shall be based on service rendered by respective members on and after the date stated in the preceding sentence, shall be made in annual installments, and the installment to be paid in any year shall be determined by the application of a percentage to the total compensation paid during said year, to persons who are members under Section A8.585, said percentage to be the ratio of the value on July 1, 1975, or at the later date of a periodical actuarial valuation and investigation into the experience under the system, of the benefits thereafter to be paid under this Section, from contributions of the City and County, less the amount of such contributions, and plus accumulated interest thereon, then held by said systems to provide said benefits on account of service rendered by respective members after the date stated in the sentence next preceding, to the value of said respective dates of salaries thereafter payable to said members. Said values shall be determined by the actuary, who shall take into account the interest which shall be earned on said contributions, the compensation experience of members and the probabilities of separation by all causes, of members from service before retirement and of death after retirement. Said percentage shall be changed only on the basis of said periodical actuarial valuation and investigation into the experience under the system. Said actuarial valuation shall be made every even-numbered year and said investigation into the experience under the system shall be every odd-numbered year.

g.

Notwithstanding any other provision of this Section A8.585-11 or this Charter, beginning on July 1, 2012, the employee contribution rate set forth in Subsection (a) for each member, shall be increased or decreased each fiscal year based on the employer contribution rate for that fiscal year calculated by the Retirement System’s actuary as prescribed in Subsection (f). Said increase or decrease in the employee contribution rate shall be calculated as a percentage of compensation, as set forth below:



Employer Contribution Rate Change In Member Contribution
0% -6.0%
.01%-1.0% -5.0%
1.01%-2.5% -4.75%
2.51%-4.0% -4.5%
4.01%-5.5% -3.5%
5.51%-7.0% -3.0%
7.01%-8.5% -2.0%
8.51%-10.0% -1.5%
10.01%-11.0% -0.5%
11.01%-12.0% 0%
12.01%-13.0% 0.5%
13.01%-15.0% 1.5%
15.01%-17.5% 2.0%
17.51%-20.0% 3.0%
20.01%-22.5% 3.5%
22.51%-25.0% 4.5%
25.01%-27.5% 4.5%
27.51%-30.0% 4.75%
30.01%-32.5% 4.75%
32.51%-35.0% 5.0%
Over 35.0% 6.0%

The percentage increase in member contributions shall reduce, by a corresponding percentage, the City and County contributions to the Retirement System otherwise required for that fiscal year.

The employee contribution decreases shall be paid by the City and County at the time each member is paid compensation, such that the Retirement System receives from the member and the City and County combined, a sum equal to seven percent of the member’s compensation as provided in Subsection (a). The sums so received shall be credited to the individual accounts of the member on whose behalf the contributions are made.

The percentage increase in contributions by the City and County shall be in addition to the contributions required by the City and County under Subsection (f) for that fiscal year.

h.

To promote the stability of the Retirement System through a joint participation in the result of variations in the experience under mortality, investment and other contingencies the contributions of both members of the City and County held by the system to provide the benefits under this Section, shall be a part of the fund in which all other assets of said system are included. Nothing in this Section shall affect the obligations of the City and County to pay to the Retirement System any amounts which may or shall become due under the provisions of the Charter prior to July 1, 1975, and which are represented on said effective date, in the accounts of said system by debits against the City and County.

i.

The Retirement Board’s authority under Charter Sections 12.100 and A8.500 and in Section A8.510 concerning the annual setting of the rates of contribution is not subject to the meet and confer process, including the procedures under Section A8.590 et seq.

History

(Amended by Proposition G, 11/4/2008; Proposition C, Approved 11/8/2011)

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