§ 37-2. Definitions.

(a)

Generally. As used in this chapter, certain words and phrases shall have the meanings ascribed to them by this section, unless a different meaning is plainly required by the context.

(b)

Accumulated contributions means the sum of all the amounts credited to a member's individual account in the annuity savings account, together with regular interest thereon, as provided in subsections (a) and (b) of section 37-103.

(c)

Actuarial equivalent means a benefit of equal value when computed at regular interest on the basis of the tables last adopted by the board.

(d)

Annuity means annual retirement payments derived from the accumulated contributions of a member and payable to him for life, with the proviso that if he dies before he has received, in payments of annuity, the amount of his accumulated contributions at retirement, the balance of such amount shall be paid to such person, if any, as he shall have nominated by written designation duly acknowledged and filed with the board, otherwise to his estate.

(e)

Annuity reserve means the present value of all payments to be made on account of annuity or benefit in lieu of an annuity, computed at regular interest on the basis of the tables last adopted by the board.

(f)

Average final compensation means the average annual earnable compensation of a member for the three (3) years of creditable service during which his earnable compensation was highest or, if he has had less than three (3) years of creditable service, then his average annual earnable compensation during his total years of creditable service for persons who became members of the system on or before June 30, 2018.

Average final compensation means the average earnable compensation of a member for the sixty (60) consecutive months of creditable service during which his earnable compensation was highest or, if he has had less than sixty (60) months of creditable service, then his average earnable compensation during his total creditable service, for persons who became members of the system on or after July 1, 2018.

(g)

Beneficiary means any person in receipt of a pension, an annuity, a retirement allowance or other benefits as provided by the system.

(h)

Board means the board of trustees of the system provided for in this chapter to administer the system.

(i)

Creditable service means membership service, plus prior service.

(j)

Earnable compensation means all usual compensation, pay or salary, including compensation, pay or salary for temporary acting service performed within six (6) years preceding retirement in any certain position for at least thirty (30) consecutive work days, in whatsoever manner paid; without regard for any deduction required by virtue of any employee participating in any voluntary benefit plan authorized by the city for participation by employees. Notwithstanding the foregoing, effective for any fiscal year of the system beginning on or after July 1, 1996, the earnable compensation taken into account by the system shall not exceed the compensation limit under section 401(a)(17) of the Internal Revenue Code of the United States of America and as adjusted by the United States Commissioner of Internal Revenue for increases in the cost of living. If compensation for any prior period is used in determining benefits accrued in any fiscal year, the applicable annual limit (as adjusted) on earnable compensation for such prior period shall be applied. However, the aforementioned limit shall not apply to any employee who became a member of the system prior to July 1, 1996. In no event shall application of the aforementioned annual limit on earnable compensation reduce the accrued benefit of a member of the system below the amount of the member's accrued benefit as of June 30, 1996.

(k)

Effective date of the social security agreement means the effective date the agreement with the secretary of health, education and welfare is signed extending coverage under the Social Security Act to members of the system who are eligible for coverage thereunder.

(l)

Employee means any regular full-time and permanent and permanent part-time officer or employee of the city whose entire compensation is fully paid by the city and shall include policemen and firemen and appointed officials, but shall not include officials elected by the people or the General Assembly of Virginia, unless specifically provided for by the city council, any employee or officers on a periodic or casual part-time, seasonal or temporary employment status or any person providing services to the city pursuant to an agreement, a contract or a lease unless specifically provided for by the city council. For the purpose of this chapter, permanent part-time employees shall be those appointed to positions requiring twenty (20) or more regularly scheduled hours of work per week, with such length of service during at least thirty-six (36) calendar weeks in a calendar year in order to qualify as a permanent part-time employee for any particular calendar year.

(m)

Former police and fire pension fund means the pension fund for members of the division of police or fire of the former department of public safety of the city, established by an ordinance adopted by the city council on January 8, 1924, as amended, as such fund existed immediately prior to January 1, 1942.

(n)

Funded pension means that portion of a member's service retirement pension payable on account of his creditable membership service on June 30, 1958, plus that percentage of his pension payable on account of his creditable prior service as shall be determined by actuarial valuation as fully funded on such date. There shall be no funded pension in the case of an employee who last became a member after June 30, 1958, unless such member is a beneficiary reinstated in service with credit for service prior to June 30, 1958.

(o)

Medical board means the board of physicians provided for in this chapter.

(p)

Member means any person included in the membership of the system.

(q)

Membership service means service as a member for which credit is allowable as provided in section 37-42.

(r)

Pension means annual payments for life derived from money provided by the city.

(s)

Pension reserve means the present value of all payments to be made on account of a pension, or benefits in lieu of a pension, computed at regular interest on the basis of the tables last adopted by the board.

(t)

Prior service means service rendered prior to January 1, 1942, for which credit is allowable as provided in section 37-43.

(u)

Regular interest means interest at the rates established from time to time by the board as provided in subsection (b) of section 37-105.

(v)

Retirement allowance means the sum of the annuity and pension for policemen and firemen retired prior to January 12, 1971, and general employees retired prior to July 1, 1972; otherwise, the pension. All retirement allowances shall be payable in monthly installments continuing to the last payment after death [and], unless a balance is payable in accordance with subsection (d) of this section, no beneficiary or his estate shall be entitled to any payment unless such beneficiary is alive on the first day of the month, in which case the beneficiary or his estate will be entitled to the retirement allowance for the entire month. When directed by the board, the secretary shall mail all retirement allowance checks on the last working day of each month.

(w)

Service means service as an employee paid for by the city.

(x)

System means the employees' retirement system of the city, as defined in section 37-I.

(y)

Social security benefit means the primary insurance amount, payable as an old age insurance benefit or a disability insurance benefit under Title II of the Social Security Act as in effect at the date of retirement, to which the member shall or would become entitled, irrespective of his failing to make proper application therefor or thereafter engaging in covered employment.

(z)

Trustee means a member of the board of trustees of the system.

(Code 1958, § 40-1; Ord. No. 35-094, § 1, 6-14-88; Ord. No. 36,124, § 1, 7-17-90; Ord. No. 38,385, § 1, 5-21-96; Ord. No. 38,409, § 1, 6-4-96; Ord. No. 39,711, § 1, 8-24-99; Ord. No. 40,628, § 2, 3-5-02; Ord. No. 41,303, § 1, 2-3-04; Ord. No. 41,454, § 1, 6-22-04; Ord. No. 47,233, § 1, 5-22-18, eff. 7-1-18 )

(Code 1958, § 40-1; Ord. No. 35-094, § 1, 6-14-88; Ord. No. 36,124, § 1, 7-17-90; Ord. No. 38,385, § 1, 5-21-96; Ord. No. 38,409, § 1, 6-4-96; Ord. No. 39,711, § 1, 8-24-99; Ord. No. 40,628, § 2, 3-5-02; Ord. No. 41,303, § 1, 2-3-04; Ord. No. 41,454, § 1, 6-22-04; Ord. No. 47,233, § 1, 5-22-18, eff. 7-1-18 )