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  Police Retirement System - Summary Plan Description

MEMBERSHIP
All police officers who serve as law enforcement officers for compensation shall become members of the Police Retirement System of Kansas City, Missouri as a condition of their employment.  Members do not include police commissioners, reserve officers, or civilian employees.

Tier I members include employees hired before August 28, 2013.
Tier II members include employees hired on or after August 28, 2013.

Any Tier I member who terminates their membership and later returns to membership on or after August 28, 2013 will become a Tier II member.

CREDITABLE SERVICE
Membership service includes all service rendered as a police officer for compensation.  Creditable service includes current membership service and may also include purchases of prior service, military service, and other qualifying public service.

Service Interruptions
With certain exceptions, any time a member is on leave without compensation, the member will not receive creditable service in the Retirement System for such period of time.  However, upon returning from unpaid leave to active service, the member may purchase creditable service for such time by paying the actuarial cost calculated at the time of the purchase.  Under certain conditions, members who have been on a period of unpaid leave for military purposes may receive creditable service without being required to pay the actuarial cost.  Creditable service does not include any time a member is suspended from service without pay.

Prior Service
A member who terminates membership with five years or more of creditable service and later returns to membership may purchase credit toward retirement for that prior service.  The cost shall be determined using the member’s portion of actuarial rates.

Prior Military Service
Members may elect to purchase creditable service in the Retirement System based upon any active duty time they served in the U.S. military prior to employment with the Kansas City, Missouri Police Department.  A member may purchase up to two years of qualifying military service.  The cost shall be determined at the time of purchase using current actuarial rates, and must be paid in full prior to retirement.

Other Public Employment
Under Section 105.691 RSMo. a member who has been employed in nonfederal public employment in the State of Missouri prior to becoming a member of the Police Retirement System may purchase service up to the actual number of years of public service in an eligible position.  A member becomes eligible under this section after they have been a member of the Police Retirement System for five years.  The cost shall be determined using actuarial rates.

CONTRIBUTIONS
All members contribute a percentage of their base pay until they retire or have completed 32 years of creditable service.  The member contribution rate is 11.55% of base pay.  Member contributions are made through payroll deduction on a pre-tax basis and paid into the Retirement System by the Board of Police Commissioners each pay period. 

As of May 1, 2016, the City of Kansas City, Missouri will contribute the actuarial required amount of $27.9 million based on a projected payroll of $100.7 million using a contribution rate of 27.7% of members’ base pay. Future contribution rates will be based on actuarial requirements. The City of Kansas City, Missouri also contributes $200 per month for each person receiving the Supplemental Retirement Benefit.

RETIREMENT BENEFITS
A Tier I member is eligible to retire after completing 25 or more years of creditable service. 
A Tier II member is eligible to retire after completing 27 or more years of creditable service.

Members can continue to accrue creditable service until they reach 32 years.  Members with 32 years of creditable service in the Retirement System may remain in active service with the Police Department until they reach a total of 35 years of service.  Members must retire at age 65

Pension benefits begin in the month following the member’s effective retirement date.

Age and Service Retirement
Upon retirement, a Tier I member with at least 25 years of creditable service or who is age 60 with at least 10 years of creditable service, or a Tier II member with at least 27 years of creditable service or who is age 60 with at least 15 years of creditable service shall receive an annual pension calculated as follows:

For a member retiring on or after August 28, 2013, the annual benefit is calculated by multiplying 2.5% of the member’s Final Compensation by the number of years of total creditable service.  The pension benefit may not exceed 80% of the member’s Final Compensation. 

For a member retiring on or after August 28, 2000 and before August 28, 2013, the annual benefit is calculated by multiplying 2.5% of the member’s Final Compensation by the number of years of total creditable service.  The pension benefit may not exceed 75% of the member’s Final Compensation.

For a member retiring before August 28, 2000, the annual benefit was calculated by multiplying 2.0% of the member’s Final Compensation by the number of years of total creditable service.  The pension benefit may not exceed 60% of the member’s Final Compensation.

Final Compensation of a Tier I member is generally the member’s average annual compensation over the 24 months of service for which the member received the highest base salary.

Final Compensation of a Tier II member is generally the member’s average annual compensation over the 36 months of service for which the member received the highest base salary.

A Tier II member who is married at the time of retirement may, with their spouse’s consent, select an optional annuity in lieu of a normal pension.  The optional annuity provides a monthly pension to the member for life and, upon the death of the member, provides an amount to the surviving spouse that is either equal to the amount the member was receiving or 75% of the amount the member was receiving at the time of death.  The value of the optional annuity will be the actuarial equivalent of the member’s normal pension amount at the date of retirement, including the value of survivorship rights for the surviving spouse.  The optional annuity will be paid to the member’s surviving spouse for life without regard to remarriage.

Minimum Pension Benefit
Any member who retired entitled to a pension benefit and who either has at least 25 years of creditable service or is retired as a result of an injury or illness, shall receive a minimum monthly benefit of not less than $600 in combined pension benefit and cost-of-living adjustments.  A surviving spouse qualifies for the minimum monthly benefit if the officer had at least 25 years of creditable service, died in service, or was retired as a result of an injury or illness.  The minimum monthly pension benefit is in addition to the Supplemental Retirement Benefit.

Disability Benefits
A member eligible for disability benefits must be in active service and have a permanent disability that prevents the member from performing the full and unrestricted duties of a police officer.  A duty disability is the exclusive result of an accident occurring within the actual performance of duty or through an occupational disease arising out of and in the course of employment.  A non-duty disability is the result of an injury or illness not exclusively caused by the actual performance of official duties or the member’s own negligence.

A member eligible for a duty disability pension, as certified by the Medical Board of the Retirement System to the Board of Police Commissioners shall have no age or service requirement. Duty disability pensions are calculated as follows and shall be paid for as long as the permanent disability shall continue:

A member retiring on or after August 28, 2013 will receive a pension equal to 80% of the member’s Final Compensation.

A member retiring on or after August 28, 2001 and before August 28, 2013 will receive a pension equal to 75% of the member’s Final Compensation.

A member retiring before August 28, 2001 will receive a pension equal to 60% of the member’s Final Compensation.

The pension may be subject to offset or reduction by amounts paid or payable under any Workers’ Compensation law.

A member eligible for a non-duty disability pension, as certified by the Medical Board of the Retirement System to the Board of Police Commissioners, must have 10 or more years of creditable service and will receive a pension equal to 2.5% of the member’s Final Compensation multiplied by the number of years of the member’s creditable service for so long as the permanent disability shall continue.

Any disability retiree who is not age 60 may be required by the Retirement Board to undergo periodic medical examinations.

Partial Lump-sum Option Payment (PLOP)
A Partial Lump-sum Option Payment (PLOP) is available to members who have one or more years of creditable service beyond their eligible retirement date.  A member with one or more years of creditable service beyond their eligible retirement date may elect a lump-sum equal to 12 times the initial monthly base pension they would have received without making the PLOP election.

A member with two or more years of creditable service beyond their eligible retirement date may elect a lump-sum equal to 24 times the initial monthly base pension they would have received without making the PLOP election.

A member with three or more years of creditable service beyond their eligible retirement date may elect a lump-sum equal to 36 times the initial monthly base pension they would have received without making the PLOP election.

When a member makes an election to receive a PLOP, the member’s base pension calculated at the time of retirement will be actuarially reduced to reflect the PLOP payment.  The reduction in a member’s retirement benefit with a PLOP is dependent upon the member’s age, marital status and the amount of the PLOP.

Survivor Benefits
Upon the death of a member in service or of a member after retirement, there shall be paid the following:

If a member dies while in service, the surviving spouse shall be paid a base annual pension equal to 40% of the Final Compensation of the member.

If a Tier I member dies after commencement of pension benefits, and after August 28, 1999, the member’s surviving spouse shall be paid a pension and/or special consultant supplement in an amount equal to 80% of the pension being received by the member, including cost of living adjustments, at the time of the member’s death. 

If a Tier II member retired and did not elect an optional spousal annuity in lieu of a normal pension, the surviving spouse shall receive a pension payable for life equaling 50% of the member’s benefit as of the member’s retirement date, plus cost of living adjustments.

If a Tier II member retired and elected an optional spousal annuity, the surviving spouse shall receive (depending on the member’s election) either the same amount as the member was receiving at the time of death or 75% of the amount the member was receiving at the time of death and will be paid such amount for the lifetime of such surviving spouse.

The benefit amounts calculated above are in addition to the Supplemental Retirement Benefit.

A member’s child or children under the age of 18, at the time of the member’s death, shall be paid $50.00 per month each.  Each child who is a full-time student may continue to receive payments until they reach the age of 21.  Any child who is physically or mentally incapacitated from earning wages shall be entitled to the same benefits as a child under the age of 18.

A funeral benefit of $1,000.00.

If there is no qualified surviving spouse, or if the surviving spouse dies, the pension to which the surviving spouse would be entitled shall be payable to the qualified child or children of the deceased member in equal shares.

If there is no surviving spouse or children qualified to receive a pension, the remainder of the accumulated contributions of the deceased member, and any prorated benefit for the month of the member’s death shall be paid to a named beneficiary.

For entitlement to benefits, the surviving spouse of a member who retired on or after August 28, 1997 must have been married to the member at the time of the member’s retirement.  The surviving spouse of a member who retired prior to August 28, 1997 must have been married to the member for at least two years prior to the member’s retirement.

A surviving spouse applying for a pension must furnish a copy of their marriage certificate and the death certificate of the deceased member.  Children applying for a pension must furnish a copy of the death certificate and a copy of their birth certificate.

Any prorated benefit for the month of a surviving spouse’s death shall be paid to a named beneficiary.

When the surviving spouse or children receive Workers’ Compensation benefits on account of the death of a member in service, the amounts of any payments under this section may be subject to offset or reduction by amounts paid or payable under any Workers’ Compensation law.

Cost of Living Adjustments
Members, including surviving spouses, may receive an annual cost of living adjustment in an amount not to exceed 3% of their respective base pension.  Statutes require that the Retirement System remain actuarially sound and that the Retirement Board must act upon the advice of a qualified actuary when granting cost of living adjustments.  A Tier I member is eligible for the cost of living increase if they were retired by December 31 of the prior year. With certain exceptions, a Tier II member becomes eligible for the cost of living increase in the year following the year in which they would have attained 32 years of creditable service. The annual cost of living increase is normally granted on the May 31 retirement check.

Supplemental Retirement Benefit
All retired Tier I members and eligible surviving spouses receive a supplemental retirement benefit, currently in the amount of $420.00 monthly, in addition to pension benefits. All retired Tier II members and eligible surviving spouses are eligible to receive a supplemental retirement benefit, currently in the amount of $200.00 monthly, in addition to pension benefits.  No supplemental benefit will be paid in any month when only a partial monthly pension payment is made due to the death of a member or survivor.

Resignation or Termination
Upon resignation or termination of a member, with less than 15 years of creditable service, the member will be paid the amount of the member’s contributions and this return of contributions shall be in lieu of any and all benefits to which the member might be entitled.  The member will receive their accumulated contributions in one lump sum payment without interest.

With 15 or more years of creditable service, a member may elect to leave their contributions in the Retirement System and will become entitled to future lifetime benefits upon meeting the eligibility requirements. A Tier I member becomes entitled to a pension beginning at age 55.  A Tier II member becomes entitled to a pension beginning at age 60.

Any member who receives a refund of their member contributions, thereby terminating their membership in the Retirement System, and who later returns to membership on or after August 28, 2013 due to re-employment will become a Tier II member.

SERVICE CONNECTED DEATH BENEFIT
Upon receipt of the proper proofs that the death of a member in service was the natural result of an event occurring within the performance of duty or of an occupational disease arising out of and in the course of the member’s employment, there shall be paid to the member’s eligible surviving spouse, or eligible child or children, the sum of $50,000.  Eligible children are children under the age of 21 or over the age of 21 if mentally or physically incapacitated from wage earning.  Amounts payable under this section shall not be subject to offset or reduction by amounts paid or payable under Workers’ Compensation.

RETIREMENT BOARD
The Retirement Board is composed of nine members, two are appointed by the Board of Police Commissioners, two are appointed by the City Council and five are elected by the membership of the Retirement Systems.  The elected members must include one member of the Civilian Employees’ Retirement System, one member retired from active service in the Police Retirement System, and one active member of the Police Retirement System who has not attained the rank of Sergeant or higher.  Elections are held annually and board members are elected to serve for three-year terms.

The above summary is not intended to serve as a legal document or substitute for the law. In all circumstances the language of the actual text of the law and the policies adopted by the Retirement System Board will take precedence.  Copies of sections 86.900 to 86.1280 of the Revised Statutes of Missouri, which govern the Police Retirement System of Kansas City, Missouri, are available on our web site at www.kcpers.org or upon request at the KCPERS Office.

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