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  Civilian Employees' Retirement System - Summary Plan Description

MEMBERSHIP
All regularly appointed full-time civilian employees of the Kansas City, Missouri Police Department, who are not eligible to receive a pension from any other City funded retirement system, shall become members of the Civilian Employees’ Retirement System of the Police Department of Kansas City, Missouri as a condition of their employment.

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 civilian employee 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 three 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 Civilian Employees’ 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 Civilian Employees’ 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.  The member’s contribution rate is 5% 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 $5.0 million based on a projected payroll of $28.9 million using a contribution rate of 17.5% of members’ base pay. Future contribution rates will be based on actuarial requirements.

RETIREMENT BENEFITS
A Tier I member’s normal retirement date shall be the first day of the month following the later of the date the member attains the age of 65 years or of the member’s tenth anniversary of employment.

A Tier II member’s normal retirement date shall be the first day of the month following the later of the date the member attains the age of 67 years or of the member’s twentieth anniversary of employment.

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

Age and Service Retirement
A member, who retires on or after the member’s normal retirement date, shall receive a pension in a sum equal to 2% of the member’s Final Compensation multiplied by the number of years of creditable service. 

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.

There is no reduction for social security benefits.

A 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.  An optional annuity provides a monthly pension to the member for life and an equal amount to the surviving spouse upon the death of the member.  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.

Early Retirement
Beginning at age 55, a Tier I member who has completed at least 10 years of creditable service may elect early retirement and receive a pension benefit which shall be reduced by one-half of one percent for each month the effective date is prior to the first day of the month after the member turns 60.  For members electing early retirement at age 55 the reduction is 30%.

Beginning at age 60, a Tier I member who has completed at least 5 years but not more than 10 years of creditable service may elect early retirement and receive a pension benefit which shall be reduced by one-half of one percent for each month the effective date is prior to the first day of the month after the member turns 65.

Beginning at age 60, a Tier I member who has completed at least 10 years of creditable service, or at any time after a member’s total of age and years of creditable service equals or exceeds 80, the member may elect early retirement without any reduction in benefits.

Beginning at age 62, a Tier II member who has completed at least 5 years of creditable service may elect early retirement and receive a pension benefit which shall be reduced by one-half of one percent for each month the effective date is prior to the first day of the month after the member turns 67.  For members electing early retirement at age 62 the reduction is 30%.

Beginning at age 62, a Tier II member who has completed at least 20 years of creditable service, or at any time after a member’s total of age and years of creditable service equals or exceeds 85, the member may elect early retirement without any reduction in benefits.

Disability Benefits
A member eligible for disability benefits must be in active service and have a total and permanent disability that prevents the member from engaging in any occupation or performing any work for remuneration or profit for the remainder of the member’s life.  The disability must not be caused by the member’s own negligence or willful self infliction.  A duty disability is directly due to and caused by actual performance of employment with the Police Department.  A non-duty disability arises from any other cause than a duty disability.

There is no age or service requirement for a duty disability pension.  A member eligible for a duty disability pension, as determined by the Medical Board of the Retirement System and the Retirement Board, will receive a pension equal to 50% of the member’s Final Compensation.

To be eligible for a non-duty disability pension, a member must have 10 or more years of creditable service.  A member eligible for a non-duty disability pension, as determined by the Medical Board of the Retirement System and the Retirement Board, will receive a pension equal to 30% of the member’s Final Compensation but in no event shall the disability pension be less than the amount the member would be entitled to as a pension if they retired on the same date with equivalent age and creditable service.

A disability pension shall be paid to eligible members for so long as the total and permanent disability shall continue.  The pension may be subject to offset or reduction by amounts paid or payable under Workers’ Compensation law.  A disability retiree 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 the member dies in service and has less than 5 years of creditable service, the member’s surviving spouse shall be paid, in a lump sum, the amount of the member’s contributions plus interest.

If the member dies in service and has at least 5 but less than 20 years of creditable service, the member’s surviving spouse may elect, in lieu of the lump sum return of contributions plus interest, a pension equal to 50% of the member’s accrued pension as computed for normal retirement.  The effective date of the election shall be the latter of the first day of the month after the member’s death or the first day of the month following what would have been the member’s early retirement date.

If the member dies in service and has at least 20 years of creditable service, the member’s surviving spouse may elect, in lieu of the lump sum return of contributions plus interest, the larger of the 50% pension as computed above or a pension determined on a joint and survivor’s basis from the actuarial value of the member’s accrued pension at the date of death.

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

If the member retired and elected an optional spousal annuity, the surviving spouse shall receive the same amount as the annuity being paid to the member and will be paid such amount for the lifetime of such surviving spouse.

A funeral benefit of $1000.00.

When a surviving spouse receives 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.

Upon the death of a member, if there is no surviving spouse or if the total amount paid to the member and/or the member’s surviving spouse is less than the member’s accumulated contributions, an amount equal to the difference shall be paid to the member’s designated beneficiary or, if none, to the member’s estate.  A payment to a designated beneficiary shall constitute full and final payment of any and all claims for benefits from the Retirement System.

A surviving spouse shall not be entitled to benefits unless the spouse was married to the member at the time of retirement.

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.  To be eligible for the cost of living increase, which is normally granted on the June 1 benefit check, the member’s pension must have commenced by December 31 of the prior year.

Supplemental Retirement Benefits
Retired members with 15 years of creditable service and eligible surviving spouses receive a supplemental retirement benefit, currently in the amount of $160.00 monthly, in addition to pension benefits.

Resignation or Termination
Upon resignation or termination of a member with less than 5 years of creditable service, the member will be paid the amount of the member’s accumulated contributions plus interest, if any, and the return of contributions shall be in lieu of any and all benefits to which the member might be entitled.

With 5 or more years of creditable service, a member may choose to leave their accumulated contributions in the Retirement System fund and receive a pension upon the member’s normal retirement date or upon the member’s early retirement date subject to any applicable adjustments.

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.

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 86.1310 to 86.1640 of the Revised Statutes of Missouri, which govern the Civilian Employees’ Retirement System of the Police Department 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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